The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-13
BLAMES The BANK
New Features in Sensational
Albert Sarbach Case.
LinscOtt Institution Charged
With COuntenancing Fraud.
MASONS LOST $4,000.
Cashier of Institution Gives Dam.
aging Testimony in HOltOR.
Arrested for Contempt of Court
-Habeas Corpus Is Asked.

From information received in To-
peka last evening from Holton, the
Linscott State Bank of Holton is
charged with assisting in defrauding
the Grand Lodge. A. F. & A. M. of
Kansas, of $4,000. The assistance
is said to have been given Albert Sar-
bach, recently grand treasurer of the
lodge, who committed suicide Septem-
Der IL, 1909, the cause being financial
affairs in connection with his official
duties as an officer of the Grand
Lodge of the state.
This sensational information in con-
nection with the suit brought by the
Grand Lodge with the Fidelity & De-
posit company of Maryland against the
Linscott State Bank of Holton, gives
new light on the we'll known af-
fairs of the late Albert Sarbach and
the manner in which the Masons of
Kansas were defrauded of more than
$4,000.
According to the testimony in the
case it appears that Lins ,ott State
bank officials knew that Sarbach was
short in accounts and that by granting
over drafts and it is charged that by
giving certificates of deposit it assisted
Albert Sarbach, grand treasurer, in
blindfolding the eyes of the Masonic
treasury.
1t is claimed, also, that the Linscott
State bank, an institution with a cap
italization of $50, 900, gave over drafts
of more than $4,000 to Albert Sarbacn
this being a banking problem un-
known before in the history of proceed
ings against small banks in this coun-
try.
In the case in the Jackson county
court in Holton against the bank, tes-
timony bringing out these startling
facts was given by Sidney S. Linscott,
cashier of this bank. Mr.. Linscott sat
on the witness stand with the books
of the bank in his hand and the at
torneys for the bonding company and
the grand lodge succeeded in getting
this new information out of the bank
official
The startling facts broke down the
defense and made the turning point of
the entire case This case has been a
big issue in Masonic orders in Kansas
for some time and the news OF the
new feature came out for the first time
last evening.
LinScOtt Refused to Show Books.
After Mr.. Linscott had testified to
these facts as shown by the court rec
turned over as evidence. Mr.. Iinscott
| refused, claiming that through the ad-
vice of his counsel he would not make
| these books public. He claimed they
| contained private information.
When Mr.. Iinscott refused to make
public these records he was committed
| for contempt of court by Judge Rains
of the district court of Jackson county.
| Attorneys for Mr.. Idnscott are in To-
peka today in an attempt to obtain a
| writ of habeas corpus from the su-
preme court of the state.
From the evidence obtained in the
| court proceedings Wednesday after
noon in Holton, the following facts
| were learned:
That on February 5. 1904. Albert
| Sarbach had in the Linscott bank to
his credit $17,383.63. That he drew a
check amounting to $24,744.62, or an
overdraft of $7,39O.99. The bank is
sued certificate of deposit to the or
der of Albert Sarbach for more than
| $4,000.
February 13, 1905, it was testified,
that Albert Sarbach had as a credit
SIS, 703.49, that the bank accepted a
check for $33, ,654.30, or an overdraft
/ of $17,950.S1 and that a certificate of
deposit for 33,654.34 had been issued.
! February II, 1906, it was testified,
that the credit was $4,199.31, that the
check was $13,2S6.74, the overdraft
was $9,0S7.43 and that the certified
depository was S13,2S6.74. February
| 16, 1907, the check was $24,721.21,
the overdraft was $4,456.76 and the
certified deposit slip showed
| $29.1S5.97.
The certified deposit slips were ac-
cepted by the grand lodge, as they
We're believed to be all legal and right.
The testimony also showed that a note
Wheeler, a minor appointive officer of
the grand lodge. Mr. Wheeler was
grand Junior deacon.
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