The Progressive West Virginian. [volume] (Williamson, W. Va.) 1911-1913, 1912-09-26
THE MEN RESPONSIBLE.
Are Now Candidates on the Repub
Y lican State Ticket.

lican State Ticket.
That the State Board Of Public
Works of West Virginia was per
hitting the use Of State funds ia
increase the business of financial
institution in which at least one
member Of the Board was person
ally and financially interested was
|psade apparent by the failure of the
Fidelity Banking and Trust Com
pany of Bluefeld, on September -.
|1911 The statement of the receiv-
Ter showed that the State had on
deposit in this bank at the time Of
its failure about $85 900. This was
almost one4third of the total de-
|posits of the bank and If the fail
lure Of the bank had come a few
weeks earlier the state would have
had on deposit at that time nearly
one-half the total deposits of the
bank. At the time of the failure.
the deDosits of the bank were about
100000, of which $4,000 belong
ed to the State of West Virginia.
A few weeks prior to the closing Of
the bank the state deposits had
been from s125.000 to ,$135, 900.
or almost half of the banks depos-
its.
State Treasurer E. L. Long, was
la stakeholder in the bank, holding
$4,000 worth of stock Col S. M
Smith, of the Governors staff and
CLOSELY identified in a political way
with the members of the admins
tration, held about $4,000 worth
of stock and was the moving spirit
in the organization and manage
ment of the bank.
The bank was new and compare
lively small, it's capitalization being
5000. 900. When it was found that
the State had $4,000 deposited in
this one institution and that
the State treasurer and other friends
of the administration were finan-
cially. interested in it, considerable
comment was made on the extent
of the States deposit and it seems
Incredible that as much as $4,000
to 1885, 900 should have been de-
posted in this institution when
larger and more substantial banks
in the State carried much smaller
deposits of State money. In addi-
ton to this it is generaify under
stood that the bond given to the
State by the Fidelity Banking and
Trust Company of Bluefeld to Sc
cure the States deposits is worth
less. So far nothing has been paid
to the depositors although more
than year has passed since the
failure and the general impression
is that with the double liability OF
the stock holders SO far as 1t can
be collected the depositors in the
bank will be heavy losers.
State Treasurer &. L. Long and
other members of the Board OF
Public Works who permitted this
enormous deposit in bank which
proved to be unsafe and without adj
equate bond for security. are with
two exceptions the candidates for
reelection. There is no question
that the public money was used by
fhe treasurer with the approval OF
the Board Of Public Works to ex-
plot this new bank. The result is
known throughout the state and
the loss to the State will be heavy
and prossibly total Standing upon
their record as the guardians Of the
public funds these men are asking
reelection and the question is
whether the voters of the State,
taking the Fidelity Banking and
Trust case - an example, will en-
dorse these men as guardians Of the
public moneys and protectors Of