The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-30
e. L. HOtchkiss of Topeka VS.
tied Columbia Bank
On Day the Oklahoma Institu.
tiOn Failed.
WAS NO EXCITEMENT.
DepositOrs Seemed to Have No
Fear of Loss.
Guaranty Law Appears to Work
Like Magic Charm.

E. L. Hotchkiss, president of the
First Loan Mortgage company of
Watonga, Okla. returned this morn
ing from a trip to Oklahoma. He
was in Oklahoma City Wednesday
during the run on the Columbia Trust
and Banking company, the largest
banking institution in Oklahoma with
deposits which amount to nearly
three million dollars and the first
adoption of the bank guaranty law in
that state.
Mr. Hotchkiss says that there is a
greal deal of interest in the institu-
ton because it furnishes the first
practical test of the guaranty law of
Oklahoma He says that as a rule
the bankers are exceedingly hostile
because they feel that it is imposing
an unnecessary hardship upon them
for thing for which they are in no
way responsible. The bank commits
sioner made a levy of three quarters
of one per cent upon all the deposits
of the state banks in Oklahoma and
this with the 100000 reserve which
was in the fund at the time of the
failure is expected to furnish enough
cash to pay all the depositors of the
institution.
Mr.. Hotchkiss thinks that this fail
ure will prove the efficacy of the
law. at took a great deal of pains, ;"
the law in the case of the Columbia
company for it is the first real test
of the Oklahoma guaranty law. l
went to the bank offices and there
found the doors wipe open tnougn 1t
was the day Immediately following
the failure. Those who had their
books balanced walked up to the Win
dow and got their money either IN
currency or in checks on the state.
The others passed their books in to
be balanced and there was no con-
fusion of any kind nor was there any
excitement. The people who hao
their money in the bank appeared 10
be satisfied that it was protected and
cited talk 1t was the greatest ex-
ample in confidence ever saw
Though the largest banking instltu-
ton in the state had been unable TO
meet its obligations the deposi tor,
were apparently satlsf1ed lhat they
would lose nothing.
Another feature in connection
with the failure that impressed me
was the fact that the failure mad no
effect whatever upon the other BANK
when a large banking institution Is
in trouble that the depositors in
ether banking institutions become
panic stricken and often runs are IN
augurated on inst1tu1ons .Wnlch al
as sound as the rock of Gibraltar.
understand that this was done here IN
ToneI1a following the Devlin failure.
There was nothing of that kind In
Oklahoma City. There was nothing
TO indicate that there had been a
big failure in any of the banks. Bust
ness was normal and there was
noticeabIe absence of a furry of any
kind in financial circles.
At do not know whether this con-
dition was due to the bank guaranty
law or not but my impression is that
- hos GREAT deal to do with it. The
denositors have confidence that they
are nrotected and this very fact has
a tendency to prevent panics. 1 be-
iieve that this Columbia failure VIII
nrove that the Oklahoma guaranty
law is a great success but naturally
we will have to await the result of
the test before making up our YER
dict"