The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-10

the affairs of competitive building and
loan associations. which is untrue, as
the greater part of the whole story
was untrue. The building and loan
examiner and auditor of the depart
ment is Mr. Newman. He has charge
of all this work and Mr.. Watson has
nothing to do with it in any capacity.
The story also states that Dolley
made a frantic effort to procure
proxies, which is untrue. A great many
have sent their proxies to the banking
department asking me to represent
them, probably believing that the state
might better represent them. or at
least better than some of the disgrun-
tied and discharged employees of the
concern.
suggested the name of William Mac
ferran, president of the Topeka State
Savings bank and also Mr.. J. L. Raines,
president of the Perry State bank, as
members Of the board of directors
William Macferran is an old and
qualified building and loan man and a
very successful banker, and in my
Judgment. a first class business man.
Mr.. Raines is a successful banker from
Perry, Kansas, and the Aetna Building
& Loan board of directors needed just
such men as these
Mr.. Fitzpatrick, the present president,
and Mr.. Royce. the present secretary,
were retained on the board of directors
The examination and audit of the as
ISOLATION does not show at any time or
place where Mr. Fitzpatrick or MI
Royce have abused their positions in
connection with this association. They
have conducted their part of the work,
fulfilled their duties honestly and had
no connection with the parties VINO
were encouraging and abetting petty
crafts and grating. No charge OF dis
honesty has been made or proven
against either of these gentlemen
I am amused to notice that the mall
contents and would be wrecIxers class
themselves as insurgents in connection
with this contest. I wish to reverse
their titles, they were not the insurg-
ents, they were the regulars and con-
sidered themselves thoroughly en-
trenched, but for the best interests of
the association, it was necessary to re-
move these parasites from its manage
ment
The statement that Mr. Clarke re-
signed and was given a position by me
was also untrue. Mr.. Clarke was asked
to resign from the board of directors,
and also asked that a competent and
successful examiner succeed him.
I have no excuses or apologies to offer
as far as the banking department is
concerned in its supervision of the
Aetna Building & Loan association. I
found this institution loaded down with
a lot of incompetent and worthless Of
ficers and employees and demanded
their removal and that their places be
filed with competent and efficient men.
I discovered that Mr.. Carter and Mr..
DOwnes and one or two others were
practically dominating the affairs of
the association and not in the best in
terests of it's stockholders. The Lead
ing Spirit of this assault is charged
with fraud in connection with his Of
ficial work for this association and the
attorneys advise me that he is Grimm
ally liable, and prosecution will be in
stituted against him forthwith.
consider the efforts of the banking
department in connection with Aetna
Building K Loan association one of the
best, most effective and efficient pieces
of supervision work we have accom-
plished, and am pleased to state to
the stockholders of this association
that they should pay no attention
whatever to the assaults, false state
ments and unwarranted attacks upon
their property. It is a strong, sound,
solvent institution and if it is within
the power of the state banking depart
ment, and I think it is, to see to it
that these attacks of thse wouldbe
wreckers and prospective fee-grab-
bers are repulsed, I assure the stock
holders that every authority and pow
er at the command of the bank COM
missioner's office will be diligently APP
piled. The work of the banking de-
partment in connection with this in
stltution, is an open book. 1t was the
first and last duty of the state to pro-
tect the investors against the criminal
practices of grafters and thieves.
As far as securing proxies by either
or both factions is concerned, it is
legitimate. 1t will be impossible to
have an annual meeting of a majority
of the stockholders of an association
of this kim, unless an effort was made
to secure their proxies. 1t is the com
mon ordinary way of handling these
annual meetings and it has been the |
practice from the beginning and the /
only way that results can be obtained. |
The building and loan associations
OF this state are doing a great work !
for the Kansas people. They are doing |
Kansas people in a position where I
they may own their own homes and |
exert greater influence in their several /
communities and thereby raise to t
higher state of efficiency our Kansas
than any other agencies in /
our commercial or business life and +
any man or set of men who without /
cause or reason attacks an institution +
of this kind, with the only thought of /
destroying it, would steal the widows |
mite
The report of this association that
came to my desk under date line of Z
December 81, 1911, showed a remark /
able progress and advancement in the +
affairs and business method and sys-
tenn of the concern; it showed the I
prosperity and earnings of any
six months during the entire existence 1
showed to competent business man,
that reform had been instituted and I
its results were apparent. t
The policy of the banking depart 4
ment, in its methods of supervision
of building and loan associations and
for the commissioner. 1 am +
proud of them. Each and every one .
of them is of much financial value to
the stockholders and investors and de- I