The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-05-15
The BANKERS
COMBINE"
County Should Receive 500
More on Daily Balances
Than the Uniform Bid of All
the Topeka Banks.
Action Loses Much Money to
County. State Journal To
Be Humiliated.

feet and alleged reason for their ac-
ton, served notice on the board of
county commissioners of Shawnee
| county that on and after May 1st they,
each and severally and any and all of
them, would pay only two per cent
on daily balances.
| Several of these banks had already
established the rate by bidding for
and securing city school board money
or money from the state of Kansas
at the rate of three per cent or up
wards on daily balances.
This uniform action on the part of
each and all the banks herewith nam
| ed was for the purpose of depriving
the county of its just rate of interest
on daily balances and for the other
! further purpose of humiIating the To-
peka State journal before this COM
| munity and warning the paper that
| hereafter it should not undertake to
meddle in financial affairs.
By reason of the uniform action on
the part of each and every bank in the
| city of Topkea, the county was appar-
emily at the mercy of these banks and
would hereafter be obliged to fail to
receive fifty per cent more in interest
on daily balances, because the proper
| rate as fixed by the banks themselves
was three per cent. The rate named
| in the letters herewith was fixed by
| the banks at per cent. In other
words, if the county got its just dues
from the banks for interest on daily
deposits running through the year, the
county would receive three per cent
| or fifty per cent more than the two
per cent offered.
The State Journal had undertaken
in good faith to defend the interests
of the city of Topeka and the county
of Shawnee, and it still means to de-
| fend those interests. 1t means to keep
/ fknf- f%r4s s..,,
cures three per cent on its daily bal
ances and until the city secures the
| same.
The order went forth to all the
bankers to write the uniform letter
and thereby the county would fail te
| receive fifty per cent more than the
| new and uniform offer recently made
| by each and all of the banks; that i.
| to say, instead of the three per cen1
which the bankers had themselve.
/ fixed as fair rate, as above noted
| the county would have to take the two
/ per cent they offered, three per cen
| being fifty per cent more than the two
per cent. At the same time the State
| Journal would be taught a lesson once
| and for all not to interfere in financia
| affairs affecting the city and county's
| welfare.
The idea being to humiliate the
| State Journal before this community
where the paper has been published
| under the same management for ovel
| thirty years; to let this paper know
that if in laboring for the welfare ot
! Topeka and Shawnee county any pre-
| negatives of the bankers are touched
F, or reduced, the State Journal mus
| beware; the county clerk made the
statement few days ago in substance
as follows:
'Now that the State Journal has
interfered in this matter, the county
| instead of receiving three per cent or
/ county funds which the paper under.
| took to promote, the county must now
accept two per cent. or less than il
got before"
/ Here is the list of the banks and
! trust companies who have combined
j for the above two purposes as set
forth:
The "Combine"
The Central National bank, E. E.
! Ames, vice president
The Central Trust company, j. r.
Burrow, president.
The Farmers National bank, H G
West, cashier.
| The Bank of Topeka, S. e. Cobb
vice president
The Prudential Trust company
| Scott Hopkins, president.
The Merchants National bank, F.
NJ Bonebrake cashier.
| The State Savings bank, VIM. Mac
| ferran. president.
| The Topeka State bank. C. w Sny-
! der, president.
/ The German American State bank,
! Roy L. Bone, vice president.
The Shawnee State bank. f. p. Ell
more, cashier.
| Citizens State bank, E. S. Gresser,
cashier.
N B.-No bank is missing
/ The Eleven "AIikc'' Letters.
Here are copies of the eleven letters
| written last month to the board of
county commissioners
The reader may draw his own con-
| clusions-
The Central National Bank.
Topeka. Kan. April L. 1916
The Board of County commissioners. To-
peka. Kan:
Gentlemen: Owing to the condition of
the money market and the low rates of In
! terest prevailing, we will. on May 1st 1876
reduce the rate of interest paid on all pubIie
moneys on deposit with this bank to two
! per cent, except those which we have CON
tracted at Il higher rate.
We will therefore begin on that date to