The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-10
DOLLEY HAS SAY.
Bank Commissioner Defends His
Course in Aetna Matter.
Says He Acted for Best Interests
of Institution.
HE DEFENDS WATSON
Put Him In Because He Was a
Competent Accountant.
Considers Action of Banking De-
HE DEFENDS WATSON
Considers Action of Banking De-
partment Right.
70 the Editor of the State journal.


Regarding the story in the State
Journal last night, entitled storm
Breaks, Aetna Building & Loan Off
GERS EnjOined," I wish to state in reply
that 1 do not personally own anv stock
in the aetna Building & Loan associa-
ton and that I am interested in it only
as supervisor by virtue of my position
as bank commissioner of the state, and
after thorough audit and examination
Of the association by the Oklahoma and
Kansas banking departments, 1 decided
that the affairs of this concern were
not being properly handled.
Under the advice of the auditor and
the Arthur Young & Co. public ac-
counting firm of Kansas City Mo-,
and Chicago, I began the reorganization
of its business affairs, demanding the
resignation of several of its officers and
employees, for good and sufficient rea-
son to the department as shown by the
result of the audit and examination.
The discharged and disgruntled en-
ployees of the association, who were
discharged for incompetency and other
grave reasons, at once began an as
sault upon the institution. They de-
manded a special election which they
could do under the bylaws as consti-
tuted, and a special election was call
ed, causing an expense of about $500
and no results were secured that in
ured to the benefit of the institution.
I gave it's affairs my close personal
attention and applied every careful,
conservative and modern business ap-
pliance to its reorganization, at my
command, regardless of who it injured
or favored. requested the election,
temporarily, of ". T. Watson, my as
sistant, on the board of directors. 1
did this because Mr.. Watson was a
competent accountant and a thorough
business man ard 1 knew full well his
worth in the reorganization of this
business. Time has demonstrated that
it was wise movement. Mr.. Watson
gave the institution much of his time
evenings and at other times, outside
of his official duties as my assistant.
He was paid 500 per month for his
services. He earned the money and it
was worth the price to the stockholders
the The Aetna Building & Loan asso-
citation. I have no apologies to make
for this whatever.
The expense of auditing the Aetna
Building e. Loan association has been
a large one as far as the state was
concerned. Tt was necessary to go
millions of dollars of transactions in
order to truthfully and fully ascertain
it's present condition.
When I was appointed bank COM
missioner of this state there were some
so or more building and loan associa-
lions doing business in Kansas. Several
years ago a law was placed upon the
statutes making it mandatory for the
bank commissioner to examine building
and loan associations and prescribing
his duties in connection Herewith.
The law has never been complied
with and the building and loan asso-
Citations of Kansas were never exam
ined bv the banking departm ent.
Shortly after my appointment I be-
gan an investigation and inquiry into
the building and loan work. l gath
cred from all over the country all the
information I could obtain pertaining
to building and loan associations. 1
then took up the question with Ar
thur Young and Company, clearing
house examiners of Kansas City, Mo,
and had them outline the work and a
uniform system for the building and
loan associations of Kansas
We have worked very diligently in
and examining these concerns
since that time and have thoroughly
ty of them. We are bringing all of
them down to a modern system of
building and loan work, second to
none in the United States, and I am
very pleased to say, thai up to this
time, these examinations and audits
have saved the building and loan
of Kansas a very large
sum of money.
At the beginning of 1911 we started
the examination of The Aetna Building
audit and examination occupied the
time of a competent building and loan
auditor and two assistants for a term
of seven months and upon the com
pledOn OI tue dudll determined IHdt
several incompetent people were con
nected with the association as en-
ployees and members of the board of
directors and at once ordered a thor
ough reorganization of the institution.
There has been a very decided i'm
proven ent made in its affairs and it
stands today, a modern and first class
conducted association
In order to effectively bring about
these reforms, il was necessary for me
to make some very strong demands in
connection with the affairs of the as
sociation, and these demands were re-
people who were removed from its
payroll.
The State Journal article also stated
that Watson, by virtue of his position
under Dolley. examined and passed on