The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-27

ed so that the matter of interest bear
ing deposits will not rise up to trouble
US again and trust you will help out
in this matter by awaiting the action
Of this legislature on this point.
-. N. DOLLEY,
Bank Commissioner"
This letter did not please the King
man banker and he replied in spicy
tone. His letter to Dolley was as fol-
lows:
Kingman. Kan, Feb. 20. 1911.
Hon, ]. N. Dolley,
Dear Sir: Your letter Of the 18th
at hand and is very plain. VIII say
that other banks in this territory have
been considering the advisibility OF
commencing to pay per cent on time
deposits. I consider from your letter
that your are going to do nothing
with the bank that pays that rate and
shall show your letter to some OF
them.
You seem to hold out the idea to
some banks in this territory that we
are the only ones that kick. Every
guaranteed bank in this territory has
been up against this same proposition
and If wish it we will try to get more
of them interested in this proposition
more than they are at this time.
We are keeping your letter as well
as copies Of my letters to you and the
attorney general.
We ask again that you either re-
quire the Farmers State bank here
to retire these per cent certificates
or allow all the banks to pay on an
equal basis.
don't believe from what the papers
say that you can get the legislature
to do all you ask. If necessary we
will be there when this matter comes.
All we ask is that you tote fair. and If
you don't we are going to kick loud
4e lit
get in print on this matter as we'll as
you do on some others Yours truly,
CLYDE MURPHY.
Murphy went further. He then
pushed the matter up to the leg1sla-
ture and sent Senator Carey the fol-
lowing letter:
Kingman, Kan. Feb. "a. 1911.
Emerson Carey, Senator Thirty-sixth
District, Topeka, Kansas.
Dear Sir: Enclosed you will find
Mr.. Dolley regarding the Farmers
State bank here and their 4 per cent
certificates.
We have taken the position that If
their per cent certificates are legal
we can all pay it now for the interest
rate will justify it. The law has not
changed on that point, neither has
our relation to it changed. No state
bank in this territory was enjoined
from abiding by the provisions of the
Ger OF the state could have probably
compelled the member bank to abide
by the provisions (with the exception
of the three state officers, that were
enjoined).
We also think that this guarantee
arrangement is on the nature of a
partnership agreement. When a bank
accepts the provisions of the law and
passes the resolution it is an agreement
to conduct their business along lines
nIlflInn6 Tn hi
all agree to pay 8 per cent for time
deposits and agree to pay certain as
sessments. If we can prove that we
lost business by reason of the other
against them for damages if we care
to push it. We as well as other banks
that are under the guarantee arrange
ment have lost deposits to this bank
an account of the interest rate.
The bank at Abilene failed during
this period and as / understand the
proposition he (Dolley) has issued
certificates against the guarantee fund
to pay these losses, and we will have
to pay our share. If the per cent
the Abilene bank should not be paid
by the guarantee fund, and then the
reverse is OF course true.
We have had no personal grievance
other than this interest proposition
against Mr.. Dolley. 1 enclose all the
letters regarding our quarterly state
ments and regular examinations that
1 happen to find in a hurried search.
If there are any missing you can find
copies of them in the bank commits
sioner's office.
So far all we have asked of Mr.
Dolley as youu will Sc is that he take
a definite clear cut stand on what is
the law and not twist 1t as might suit
his convenience, and that would give
all an equal show in bidding for busi-
ness.
Personally, think the law ought to
be amended so as to permit a higher
rate of interest if the money markets
justffies.
L will say that I have made inquiry
among the banks in this territory and
as far as I am informed the one bank
here is the only one issuing these GER
tif1cates and all claim to have lost
BILE because their customers could not
see why one guaranteed bank should
pay that rate and others refuse to do
the same when everyone here knows
the demand would justify all in pay
ing it.
Hoping that the matter may be sat
isfactorily arranged, I am yours very
truly,
CLYDE MURPHY. Cashier.
(Please protect the name of Pena-
cosa State bank).
1t is probable that the committee
will investigate Murphy's case thor
oughly. They will try to learn if other
cases of discrimination exist among
the Kansas banks now operating un-
der the bank guaranty law. Several
of the Kingman county banks have
joined Murphy in his fight and a fund
has been raised to fight the case in
the courts if relief is not secured in
the present session of the legislature.
The senate this morning set aside
an appropriation of $4,000 to be used
by the bank commission in detection,
apprehension and prosecution of al
legged bank robbers. The bill, which
was prepared by the committee on
banks and banking, specifies that the
money may be used in rewards, assist
ance of officers and employment of
detectives in bank robbery cases. Not
more than 1000 is to be spent in
procuring evidence and prosecuting
any one case.