The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1911-07-14
FORMER BOARD IS
BLAMED BY CRUCE
Governor Issues Statement Declaring
That Bank Was Known to Be In
solvent over a Year Ago.

Oklahoma City, July 10.-That the
sum of S106,413.24 in cash had been
put into the Night and Day bank by
the state banking board to prevent the
collapse of that institution before it
was purchased by ]. L. Wilkin and
put on sound basis, and that the
board also held, and still holds $432,-
619.04 assets of the bank, which are
carried at s244,78S.36 against which
warrants have been issued, developed
Saturday when the statement of the
bank guaranty fund was made public
by F. G. Dennis, treasurer of the
board.
That the bank was insolvent more
than year ago and was known to
have been insolvent and should have
been taken in charge by the former
banking board, was the statement Sat
urday night of Governor Lee Cruce.
The $106, ,413.24 does not represent all
of the money put in the bank from
the state guaranty fund, as the former
board put in more than $1,000 at one
time. Just before the Inauguration,
when the present state officials took
charge, Webster and Hayes purchased
the bank, agreeing to put in $4,000
cash, and it was hoped that this would
Iplace the institution in good shape.
1t was alleged, however, that this sum
was not actually used, as it was found
that $4,000 would not place the bank
in the shape desired.
While the assets of the bank were
large, it was reported that large sums
had been loaned to single party, and
that considerable portion of the as
sets We're dead. In assuming charge
J. L. Wilkins took $4,000 only of the
assets at par, while $4S2,619.O4 were
taken by the state banking board at
what it thought the assets were worth,
or $244,7SS.96. Warrants were issued
for this amount, and if the board re-
alizes $244.7SS.36, the money will be
turned into the guaranty fund to take
lup the warrants. If the collections
exceed this amount they also will be
turned into replace part of the money
ACTUALLY expended Should the assets
prove absolutely worthless, the guar
anty fund would be out just $751;
201 go.
BY selecting only the gilt-edged as
| sets, of which there were, as stated,
but about $4,000, and putting in suffi.
cient cash, in addition to the amount
assumed by the state banking board
the new owner has put the institution
on sound basis.
| Since April 5, the banking board
raised $404, ,10449 by the l per cent
emergency assessments, which raised
such a furore when the bankers met
here in May. 1t received in collection
from the Planters & Mechanics bank
assets $84,30S.S4, had on hand $4,000
cash, while other collections, including
the more than $2440OO assets of the
Night and Day bank, netted a total
handled from the period since April
to $770,411.49. The board paid Plan
ters & Mechanics bank depositors
$20S, ,357S2, settlements of approx
mately S150,000 were made for five
smaller banks, and with the $351,
201 so put in the Night and Day bank
the fund has again been cirtually de
pleted until there is only s39 9,9S2.7s
cash on hand, and it is possible that
another special assessment will have
to be levied to provide for future con
tingencies.