Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1910-09-15

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and the currency on hand.
This morning Bank Commissioners
Dolley sent to every depositor Of the
bank letter. In 1t he says.
ITO the depositors Of the Abilene
| State Bank: Through the defalca-
tion Of John A. Flack, late cashier
Of the above bank, this institution
lis laboring under much embarrass-
ment. The directors Of this bank
are legally liable to the depositors
for any balances due them and have
cheerfully declared their intention
to fully protect every depositor, for
which they are entitled to much
credit, and have complied thus far
with all requirements made of them
by the banking department in this
direction. AS to whether or not they
will be able in the very near future
to pay all depositors depends largely
upon the depositors themselves. No
man or set Of men can keep bank
in this condition afloat If the deposit
tors are Qnwise enough to make q
general demand for their deposits;
such course would mean the closing
Of the doors of the bank, the APP
pointment Of receiver, and the nec-
essary litigation, delay and expense
of realizing on the assets Of the clos
ed bank. The officers and directors
can handle the matter much more
expeditiously, very much cheaper ana
more to the advantage Of all con-
cerned as compared with the closing
of the doors and long drawn out
receivership. The banking depart
ment will do everything possible for
the good Of the individual depositors.
1t is doing SO in this case and ! urg-
emily advise htat you get together
and make an agreement by which
the officers of this bank will be given
an opportunity to work its affairs
out in your interest. The officers
have given the banking department
a personal written guaranty, personal
| " becoming responsible to pay every
denositor Of the bank in full. ! will
be pleaIed to have any of the deposl-
tors who are interested call at the
bank and see the representative OF
the banking department when he is
there or correspond with me at To-
peka. Knowing full well that my
advice in this communication Is for
your very best interest and trusting
that you will comply with my re-
quest, / am, very truly yours, J. N.
Dolley. Bank Commissioner"
with Mr.. Dolley's letter goes a
copy of the contract signed by E. H.
Forney. ]. L. Kruger and ]. s. Hal
lam. directors, and given to Bank
Commissioner Dolley. 1t say7;
"In consideration of the premises,
said parties of the first part Jointly
and severally bind themselves and
their executors and administrators
TO said party of the second part as
trurtee for the depositors OF said bank
that they will personally, Jointly and
severally, and that their several ex-
ecutors and administrators shall pro-
vide for the payment in full of all
persons having deposits In said bank,
and that in the event that the assets
of said bank shall prove insufficient
they win make good the deficiency.
There communications have had
marked effect on the feeling Of the
depositors and today has been quiet
at the bank. Deputy Bank Commits
sioner Watson is in charge. 1T will
take 10 days to check up everything
said he.
Boiled down after the deputy bank
commissioner has been working on
the books for seven days, the losses
chow mp thus:
Flack's shortage to the bank 100000.
Fiacks shortage to estates. 5000
Fiack's shortage to individ-
uals and associations. -. 5000
Total .ss........,.-.. SIl'OVV|
Property turned over to the
directors ..... -. $50 Oqv
Bono 70 the bank. ....... s'"o9
Bonds to estates. ......--. 5'oOo
Total .................&4I W.
Net shortage. ........ -. tSV WV
The investigation shows thrt he
began the stsaiings about three years
aeo and that be kept II up until last
week Friday when be was called Be
!. -. "a ~-r,-H IN a.