The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-05-05
TO DROP The CASE
Grant HOrnaday Will Not Be
Prosecuted for Bank Failure.
to Indict Politician.
AFTER BONES SCALP.
Had Failed to Make Case and
Another Tried.
Effort Had Same Result and So
It's All Over.
AFTER BONES SCALP.

Grant Hornaday will probably never
| De prosecuted in the United states
courts Tor wrong doing in connection
with the failure Of the First Natirn,u
| bank, d Fort Scott, Of which inStttu-
tlon Hor 1addy :TaS president and pr!E-
| clpal stocknolder. This conclusion was
reached following a conference of gov
eminent ofhci1ls this W eek. TIE con-
ference was held after the SECOND uI-
successful attempt to secure an indict-
ment against the Fort Scott financier-
| politician by a federal grand jury.
When the First National bank failed
. two years ago and Hornaday's extern
sive interests We're punched to meet
outstanding obligations. an attempt
was made to show that the accounts
of the bank had been juggled and that
Hornaday himself had falsitied reports
filed with the comptroller of the cur
rency. Under the direction of the re-
ceiver and by the assignment of Horn
aday of all his assets. the bank paid
so cents on the dollar.
1t was more than year ago that
Harry J. Bone, United States district
attorney for Kansas, first took the case
before the federal grand jury. The
jury failed to return an indictment.
This happened while Bone was under
fire and while Joseph Bristow, United
States senator, was endeavoring to Sc
cure the appointment of successor
in the district attorneys office. Bris-
tow is still after Bones scalp So warm
Is the Sauna -nuDL that he lids
refused to compromise on any of the
federal patronage in Kansas that will
leave Bone in Office As Il result Bone
has contented himself with recess sip
polntments which seem never to sre-
ceiVe the confirmation OF the senate
Another Man Tried 1t.
Perhaps there was no politics back
of the fight this week in The federal
grand jury room Bone himself refuses
to discuss the matter from any atti-
tude In fact Bone saw only that the
witnesses appeared before the grand
jury The case was prosecuted by F.
F. Faville, United States attorney for
the northern district OF Iowa. Just
who caused Faville's "trip to Kansas to
push the Hornaday case, no one seems
| to know. But Faville came. Also the
receiver of the bank testified before the
grand Jury. Then there were few eN-
pert accountants who have wrestled with
! the books and accounts of tine First
| National for mcnths and seemed fairly
able to repeat them backward. An Of
| fetal from the comptroiier's Office WAS
| sent to Kansas 20 testify. He told the
grand jury about the reports that
reached washington concerning the
| conditions of the First National. On pa
per. the representative testified. every
I thing looked as bright IS a midsummer
! morning. = :iei' ei.'@-tiay lae bank went
| ou the rocks. E.eSn&pc, II is in"matGG.
| if there was really Juggling. the comp
! trollers Office knew about the matter
days harore the bunk failed
| 1t was a matter of record that Horna-
dav took over the institution when it
| was on its road to the last ditch. To
| De sure he didn't make the bank q
bowling success, but Hornaday strug
| gled along with his load until other
| trouble overlook him and he was forced
| to abandon the ship. Possibly, it has
| been urged, the co1nptroller's office was
willing to discount a few transactions
| in a vain hope that Hornaday might
yet put his bank in shape. But it was
a critical stage of the game. Had the
lgrand jury returned an Indictment
! against Hornaday, Bones chances in
| office would have been several points
! below par. Perhaps, it has been urged,
| it was not Hornaday after all which the
forces behind the investigation were
after An Indictment would have hit
Bone the hardest.
But the Jury urged a dismissal of the
| case 1t is now conceded that so far a S
| the government is concerned, future &C
| ton against EIornaday will not be urged.
Two requests for an indictment have been
| denied and it is not probable that third
! attempt will be made to prosecute the
Fort Scott man in connection with the
| ha11l fol