The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-06-30
TRY FREEzE0UT.
County Seat Banks Try TO Pun
fsh Presumptuous Rival.
Was Made the Depository by
Commissioners.
A FLOOD OF CHECKS
Over 5000 Turned in and
Cash Demanded.
\ FLOOD OF CHECKS
Commissioner DolIey Says Bank
May Have Time to Respond.

There is about as much human
nature in some people as there is in
others, and this is exemplified in the
action recently taken by a CLIQUE OF
bankers in lola, county seat town,
against bank of the county located
at Gas City, outside the sacred pre-
clncts of the county seat. These city
bankers, it seems, tried to put their
country cousin out of business by get
ting together and making a demand
in one day for $4,000 in legal tender.
Now bankers regard a run on a
solvent bank as the cardinal sin. They
denounce depoSitors who get scared
and call for their money as sheep and
crazy people, Yet these bankers set
a very bad example for any class of
depositors that ever went up in the
air over vague rumor.
The trouble between these bankers
in Allen which is big and rich
county south of here a hundred miles
more or less began in this wise. In
April of this year the county commits
sioners called for bids for county de-
positortes from the county seat banks.
The commissioners refused the first
set of bids and called for others.
Pending the receipt of the new bids,
the county commissioners, who sus-
pected combination on the part OF
the lola banks, went to a bank locat-
ed in Gas City, town outside the
county seat and asked the cashier if
checking account with the county I'M
| til such time as the contract for de-
| pository should be let. This arrange
| ment was agreed to between the COM
| missioners and this bank.
When the second set of bids were
opened the commissioners were sat
isfied that the city banks were trying
to force them to accept terms dictated
by the bankers themselves, so they
awarded the checking account con-
tract for one year to this little out
side bank.
The city banks took the ground
that the commissioners could not go
outside the county seat for a deposit
tory, but their bluff failed to bring
results. Then they decided to make
war on this upstart bank.
On June 26, after three weeks ac-
emulation, they presented checks on
the Gas City bank in the sum total OF
$4,000 and demanded immediate
cash payment and refused to accept
| exchange or anything but legal ten
der.
OF course this little bank could not
honor all these checks at once. Its
| total deposits at that time amounted
| to $68,000 and it's reserve, $36, 900
1t had $4,000 in cash in its vaults and
| the balance of it's reserve in Kansas
| City and New York banks. This fin
| ancial condition was we'll within the
| limit of the banking laws.
The cashier wrote down the details
| of the whole story and sent them ir
| to the state bank commissioner to
| get his opinion on the matter. The
| cashier wanted to know if he was not
entitled to reasonable time in which
| to raise the money to meet this I'M
| usual demand, and if his bank was
| solvent and within the law and he
asked a whole lot of other anxious
| questions
Bank Commissioners Dolley took the
| ground that the commissioners could
| go outside the county seat for theil
| depository and that the besieged banl
| was entitled to a reasonable time II
| which to honor the big bunch O.
| checks that had rolled in upon i
| in one day like the tides in the ba.
of Biscay and threatened it with de
struction.
The story of it's eventful ant
| stormy career during this year of ou
Lord as told by this bank is an unus
uaI one and shows that for ways tina
are dark and tricks that are vain tn,
| civilized banker, is peculiar. If thu
little bank told the true story of it
trouble it will weather the storm, al
right, for it has the state bank com
| missioner behind it in its fight will
tho larger banks.