The Glenwood post., 1916-01-29
DRACH GIVEN
AMPLE NOTICE
Had Sufficient Warning Of Con.
dition Of Now Defunct Bank
Proof Of Incompetency
STATE is RESPONSIBLE

When state bank commissioner has
notice through an employe of his own
office of the unsafe condition of bank
and he takes no steps to close the in
stitution and protect the people from
further ravages against the depositors
can the state escape her obligation in
the matter?
When a state bank commissioner 's
own employe recommends that certain
things be done in thirty days or that
the bank be closed in order to prevent
any further losses to depositors, if the
commissioner, in the light of such in
formation, permits such bank to contin-
ue to jeopardize the credit of the com
munity, is the state, through the laches
of its official, responsible to the people
and if so can said official be forced to
indemnify the state? ...-.
These are questions that will force
the people to do lot of thinking and
will leave little doubt as to why Gov
ernor Carlson is so active in his efforts
to dispense with the services (?) of
one, E. E. Drach, once state bank COM
missioner, but now occupying the Of
flee as a usurper, after his successor
has been duly appointed and has quail
fled according to law, including his con-
firmstion by the senate. s,ss H.
-@~ Tho -Inter.stisssl Bank of Commerce
and a bank at Louisville furnish two
instances out of many in which it is
freely claimed that the people have suf-
fered or will suffer through the incom-
: potency of Mr. Drach whose time is
principally spent defying the governor
to remove him from an office in which
he has not made good.
Pueblo, Jan. 25.-A scathing denun-
citation of what are said to be ineffi.
cient state banking laws and severe
a1Iaignment of the lax methods attrib-
uted to State Banking Commissioner
Drach in his failure to close the Inter
national Bank Of Commerce a month be-
fore its failure, .constituted the major
portion of report filed with the dis
trict court yesterday by Pueblo grand
jury, which has been in session here
for five weeks.
The report took Commissioner Drach
severely to task for not having taken
prompt action when Bank Inspector
Sherwood Crocker had made discoveries
to the effect that the bank was insoiv-
ent and that @. J. and w. F. Greene,
its owners and officers, were conducting
it in what he termed not only Grim
inal but absolutely lax manner.
The report of the grand jury quotes
as follows from the written report of
Mr.. Crocker, made to his chief on June
10, 1915, in regard to the international
Bank of Commerce.
"This bank is in very unsatisfac-
tory condition; further, we might say
in very dangerous position. In the
face of this, referring to the depressed
condition, owing to the failure Of the
Mercantile National bank, w. r.
Greene, president, has continually made
new loans and is SO incompetent that I
insist that both he and Q. j. Greene,
cashier, be compelled to resign imme-
diately from any further activity in
the management Of the institution and
that neither Of them ever be allowed to
enter the banking business in any bank
under tho jurisdiction Of this depart
meAt. I consider these two mon about
the most dangerous who have ever been
in the banking business since this do.
paztment was started. Not.s much ~
to tAsit dishonssty % to their general
inesmpessney and inability to give the
department. s6y answer whom We re.
quest. II concerning loans, in which mat
ter We fail to find security for notes
which thsy claim were secured, also
making loant to people who sre not en-
titled TO then.
"Unlsss this bank stfaishtsns up ita
aAairs within thirty days, the arssasa
forced 70 retite and the baAk put In
.S.;on5Stsns Askds, rseoaansnd that u
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I. SisASG ~ sisaeD D'isaAisa y ~ fuada
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