Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1913-11-27
PAYMENT OF GUARANTY
CERTFICATEs NOW MADE
Closing Up Of Abilene state Banks
Affairs FADED.

| The payment Of the certificates o.
indebtedness that will complete the
4 amounts due depositors OF the de-
! funct Abilene State bank commence
ad Saturday. The state bank COM
missioner has drawn from the guar
anty fund held by the 4s7 state
banks, OF which the Abilene State
bank was one. $2S.64O.5O to cancel
all claims. OF this S6,1S4.52 Is
interest ON the certificates which
have been drawing interest since
November 1, 1910, at 8 per cent.
The loss entailed by the failure was
about $4,000 but the larger part
came on the stockholders. While
the deposits were In excess OF $14O,-
900, some of this was county money
protected by bond and not parti-
cipating in the guaranty fund.
When, the certificates were orig
inally issued they amounted to $46,-
500, but assets from the sale OF the
banks property, the real estate
turned over to the directors by the
defaulting cashier, ], A. Flack, and
the double liability of the stock
holders paid SO per cent of the
amount, credited from time to time
on the certificates, leaving $22,-
455.98 as the balance. The certi-
ficates were used by many of the
depositors as collateral for loans at
the local banks or sold to the banks
outright and probably rs per cent
of the amount is so held.
A long list of lawsuits grew out
of the failure, owing to the careless
bookkeeping that did not indicate
who were the real stockholders.
Men who had disposed of their
stock years before were sued be-
cause the transfer of the stock had
never been entered ON the books by
the cashier and manager. They
we're compelled to pay their share
Of the liability. The heaviest loser
was ]. L. Kruger, one of the direc-
tors, who had 500 in stock. He was
one of the signers Of eight notes for
$4,000 each given the day after
Flack's disappearance when it was
thought that this would rehabilitate
he bank, it being considered that
With the property turned over by
he cashier after his defalcation was
discovered would make up the diff
erence. Instead, 1t was found that
here was shortage Of nearly $780, ,
100 and the doors were closed. Three !
# the notes MrssKrugers paid. The !
'ther five remained among the
'ank's assets. In closing the af-
airs all the assets remaining were
old to Mr.. Kruger for $500. He +
eceived the five notes, all the small !,
ssets, including some stock in a :
exas land company, some building !,
nd loan association stock, the house
wned by Flack, known as the Tay- =
'r residence on Fifth street. His
'ss was $4,000 less the value of +
lese assets.
The receiver, Edward Makins,
as been paid $125 month for
rec years and two months, a to- w
i of $475O. Many long contested 81
wsuits over the tangled affairs sc
ave dragged out the proceedings tr
receivership. The county deposits to
ere protected by bonding compan- br
5 and Flack's property was all sold 90
good figures except the Taylor an
'use mentioned. The estate of the D,
esident, /. S. Hallam, who died re-
the shock of the failure and in tn
ack's house where he had gone vi,
inspect the property, was wiped Sc,
t by the disaster. DR.
While many theories have been ins
vanced to account for the actual fai
appearance of some $4,000 in ha
period of three or four years, none tw
8 been verified. There is no In pa
alton that Flack had any proper
more than he returned to the
ak, selling for about $25, 900. The
nainder is unaccounted for in any 49,
Unite way. 1t is doubtful If Flack 81
nself could give any accounting, 20
least he so declared when he was 20
Q awaiting trial after his two ;
RS of eluding the officers. 49,
'AH