The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-12-19

bankers valued this farm at $25, 900 In
figuring the assets. It turned out af.
terwards that when survey of the
farm was made 1t contained only 900
acres. Its value, also, will not exceed
$4,000. H4
In the indictment against the three
men the allegation is made that they
were not persons Of good financial
standing as they represented them.
selves to be to Mr.. Porterfield, that the
bank was not solvent and not able to
pay cash.
A separate indictment was returned
by the grand jury against Ulysses s.
Lybarger charging that he "wilfully
and fraudulently made false entries in
report of the condition of the Gam
bier Banking Company on Septem.
ber 4, 1908"
In this report made to the state
banking department 1t is alleged that
Cashier Lybarger failed to state that
there was an overdraft of Harry N.
Hills in the sum of s10,029O0, part Of
the overdrawn account in the old Gam
bier Savings Bank Co which had
shrunk considerably by this time.
This overdraft of Hills included
loans on collateral and other loans
and discounts.
At this very time il appears that
the Dime Savings Bank of Mt Ver-
non, another of Hills's and Lybargers
enterprises, had closed it's doors and
it was shown that the now defunct
Dime Savings Bank of Mt Vernon
owed the Gambler Banking Company
the sum of $4,000
1t is the allegation that Hills took
this $4,000 from the Gambler Sav.
ings Bank and placed II in the Dime
Savings Bank to assist in the purchase
of the Coxey bonds. About this time Mr.
Hills agreed to sell 100000 worth of
Coxey bonds in order that the steel
plant might be built in Mt. Vernon,
and his commissions was to be $4,000
If he succeeded in selling the 100000
worth of bonds. Mr.. Hills experienced
much difficulty in selling the bonds to
private citizens and fearing that he
would lose his commission of $4,000,
he decided that his own banks would
purchase the bonds for portion of
them and accordingly when these var
ious notes became due he would call
on the Gambler Banking company to
settle.
In July, 1909, the state banking de-
partment became suspicious that there
was something wrong with the Gam
bier Banking Company and according
ly Mr.. George Walters of Columbus,
now deputy state examiner, was sent
to Gambler to inquire into the affairs
of Cashier Lybarger and of the bank
ing institution. After Mr.. Walters had
been at the bank but one hour he
found the institution insolvent, in fact
it never had been solvent from the
time the Gambler Savings Bank Co.
had been started by Hills and Ly-
larger until the failure of the Gam
bier Banking Co., and Immediately
summoned the board of directors for
a private conference. These directors
got together secured property and
money, aRd through the help of Cleve-
land friends, the sum of $4,000 was
raised and the institution was allowed
to continue in business.
However, some months later some
bad paper turned up and the directors
were again informed that the sum OF
$4,000 would be necessary to keep the
bank on it's feet. Every effort was
made to raise the money, but to no
avail and in May, 1911, the institution
was closed by the state department.
In addition seven indictments We're
returned by the grand jury against
Ulysses S. Lybarger for receiving, as
cashier of the Gambler Banking Co.,
money as deposits, and checks, as de-
posits, in the Gambler Banking Co.,
when he knew the bank to be insolv-
ent."
These indictments name different
dates covering a period from 1908, un'
til early in the year 1909
The unearthing of financial condi
tion of the banking business in Gam
bier Is due largely to Mr.. F. e. Bax-
ter, state superintendent of banks,
who devoted much time to the investi-
cation of affairs in the village and It
was through his untiring efforts that
the true state of affairs were brought
to light and that criminal proceedings
were begun against the alleged guilty
men in the court of common pleas OF
Knox county
Prosecutor l.. T. Cromley also de-
voted much of his time and attention
in the investigation and says that he
will have most damaging evidence
when the cases are brought to trial.