The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-12-03
SAYS COLUMBIA FAILURE
GAVE SUCCESSFUL TEST
Attorney for State Bank Com
missioner Shows How Con-
iidenCe Was UnShaken

Cleburne. Texas. Dec 3-Lasi
week after the publication in some
Texas papers Of telegram from Ok
laaoma City saying that fifty Okla
homa state hanks had made applica
lion TO the cont oller at Washington
FOR National bank charters Judge
Cato sells IL Clcburne wrote 10 Hon
W A Iedbetter one Of the leadins
lawyers OF that state. and who rep.
resented State Bank Commissioners
Young in the recent Columbia Bank
ana Trust company controversy in
closing the Telegram referfed 20 and
asked M l.edbetter 20 write him
the facts concerning same, ~ an.
ever to which Judge Sells today re-
ceivad the following letter
Oklahoma CITY, okla. Nov 21.~-
Judge CaiO Sells, Clebmne. Texas .
My Dear Sir Your favor of the 24lh
instant, with Enclosures, was forward
cd "a ME from Ardmore, my former
home
The newspaper clipping wAich you
inclcse grossly misrepresents tht
facts, as wen as the sentiment pre-.
yailing in this state. as result q
the failure OF the Columbia Bank and
Trust company
Since that failure occurred Two
state banas have bcon naiionalized.
and at least one National bank has
liquidated and taken out a state char-
ter The statement that fifty Other
state banks had applied for National
charters IS manifestly untrue, but the
fact that changes Of this kind might
take place. neither proves nor dis
proves tde wisdom Of the state law
providing for the guaranty OF dc.
posits
The Columbia Bank and Trust com
pany went into The hands of the bank
commissioner on September %. and
since that time more than $225o,a0
nf deposits have been paid, there be-
inc less than $125d0e of the deposits
cf the bank unpaid Al this time. These
deposits are rapidly being reduced
aud In few days all Of them will hf
paid in full
The banks cash ard sight exchange
had been reduced TO the minimum
wsen the bank commissioner look
charge
This being one Of the very largest
state banks. It's failure, under the
circumstances. put the bank guaran
ty law 10 the severest possible test
but the banks dooss haze been KEEP
open. al all times, and the deposits
paid continuously ever since the com
missioner has been in charge
The National banks and every par
tiele Of influence they could com
mand have been arrayed against the
guaranty law. and most strenuan
effort has been made by adverse crit
icism. and In many cases wiltullN
false Misrepresentation 10 preln
dice che public mind against the be-
lief that the failure of the Columbia
hank had demonstrated The efficacy
OF tha principles Of guaranteed dc
posiis
A number Of amendments whic'
need not now enumeraie WITH doubt
less be made az the special session OF
our legislature. which VII meet ~
the early part OF the year
From the beginning nonresident
creditors Of the bar, threatened to
apply 10 the Federal cong for the
appointment Of a receiver. 70 the ena
that tne Affairs Of tie bank might be
administered hy a court Of equity ~
disregard 81 the provisions OF iif
guaranty law giving the deposllnis
tie FIRST preference and providing toi
The reimbursement OF the state qua
aniv lund as setond preference
both to b. paid prio, to the time That
general creditors are permitted 20 be
paid
/ have represented the bank com
mIssiorcr as his attorney. throughout
this ecAtrGversg, and finally coneelv.
ed the Idea OF haslng the bank com
miasI0ner make application directly
ta tae district court fof o ders ol
sale and praying that the court mako
an necessary orders for the proiec
ficn tf ere creditors of all classes
thus putting Che assets Of The hant
In The custody Of the court and under
tho principles Of r1miiy as between
stale uhH Ttuftdf ttUttNs tue A1utta
court held that Il was not authorized
r. interfere BY the appointment OF {
receiver, or BY making any ofdel
Whatever until the state court hat
( exhausted is jurisdiction IN thl
premises
Z This was regarded as : most in
+ portant victory fei tAe state guarani,
law. because # the Federal court ha,
Interferfed The state guaranty lav
wcald have been doomed 70 disaster
The one important fact which hai
been demonstrated beyond contrn
veisy hv the failure CT TIA columbii
hank Is thai the bank guaranty lap
Z insnires confidence AT no time al
the depcsiiofs doubt their ability Il
gcl their money. and The fact th1
+ they have gotten theis money as the,
wanted II aas done q very great doa
! = nNnHfeelss the law
Generally when 4 bank failure O.
ours The people who have money