The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-04-23
Parsons People Are Called Be-
fore Supreme Court.
Charged Order of That Tribu-
nal Has Been Ignored.
WHY W. 7. WATSON QUIT
Claimed Deputy Commissioner
Was Mixed Up in Row.
Ugly Charges Are Made
Against Receiver Madden.


The supreme court today made an
order remanding the Mechanics state
bank case of Parsons for another
hearing. The supreme court decided
this case once before reversing the
Labete county district court. 1t has
been alleged that the lower court has
dfsregarded the higher court in this
matter and that the lower court must
answer for this disregard.
The Mechanics bank case is as
mysterious and full Of complications
and thrills as a Futrelle detective
story. Prominent Kansas names are
mixed up in it in connection with Sc
rious charges. In some respects 1T is
a parallel of the long drawn out and
sensational fight for control of the
Aetna Building and Loan association
of Topeka, just decided by the federal
court.
1t is said that the Mechanics bank
case, and not the Aetna, row, was re-
sponsible for W. T. Watson leaving
the state bank commissioners office.
John Madden, the we'll known FAR
sons lawyer, who is receiver for the
defunct Mechanics bank faces serious
charges in the petition of the stock
holders filed in the supreme court.
Charges are also made against Judge
Elmer Clark of the Labette district
court, e
The supreme court today ordered a
temporary stay of proceedings in the
whole matter and set. May as the
day of hearing. At that time Abner
Davis, president of the bank, and the
receiver, John Madden, and the ois-
trict court and all the other parties
against whom charges are made IN
the petition of the stockholders viii
have a chance to explain their part IN
the affair to the supreme court.
Some six or eight stockholders, repre-
senting about 500 shares of stock in the
failed bank, are fighting the manage
ment of the banks affairs in connection
with the receivership. They allege that
John Madden, the receiver, received
his appointment from Judge Clark on
paper drawn up in Madden's offices at
Parsons. That Madden has failed to
perform his duties and has been I'M
faithful in his trust. That he has not
collected the assets of the bank or
made any effort to do so. That out or
$50, 600 assets he has collected only
$40, 900 and has deposited $4,000 of this
sum in a bank and it lies there with
out drawing interest. That he does not
even attempt to collect rentals due
from occupants of the banks property.
That his brother, Dennis Madden, is at
torney for the receivership concern and
is trying to collect an exorbitant at
torney fee of $1,000.
The petition charges further that
Judge Clark is prejudiced against the
best interests of the bank as shown by
his adverse decisions in the case that
was reversed by the supreme court and
then ignored by the lower court and the
receivership.
1t is further charged that Abner
Davis, president of the bank, conducted
its affairs so badly before the receiver
ship was declared that Bank Commits
sioner Dolley had him on the carpet"
and secured his promise to do better.
It is claimed, in the petition to the SUI
preme court that Davis is in with the
receivership crowd and that the bank
was thrown into the hands of a receiver
while in a solvent condition and that
the great expenses of the receivership
are borne by the banks customers and
stockholders.
The petition also deals with the
states Intervention petition in this
case filed by the attorney general at the
instance of the bank commissioner
This intervening petition in support of
the receivership crowd was afterwards
withdrawn, according to the stockhold-
ers, petition, and it is limited that mis-
representation was the cause for the
state taking a hand against the inno-
cent stockholders who were paying the
freight and holding the sack Of the re-
Ownership. There are q lot of compli-
cations and technicaIities and mystery
about the whole affair. but the charges
are plain and hint at questionable bust
ness practices.
The supreme court will air the matter
at the hearing on May g.