The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-01-16
c. L. Kline, Who Once Worked
Here, Caught Last Night.
Charged With Wrecking Will
Jamestown State Bank.
OUT To "GET" WALTER WILSON
Stated That Kline Had RevOly-
ers for This Purpose.
Even Church Account Alleged
To Have Been Irregular.

Charged with practically wrecking
the Williamstown State bank at Will
Jamestown, Jefferson county, c. l.
Kline. the cashier. was arrested in To-
peka last night and held for Jefferson
county officials. According to the story
from the office of w. e. Wilson, state
bank commissioner. Kline has in the
last few years practically wrecked the
little bank. He is to be prosecuted for
embezzlement. Klines shortages run
into the thousands of dollars and the
exact amount of his defalcations may
not be known for some time.
At the annual meeting of the stock
holders of the bank, Kline was ousted
as cashier. His removal was demand
ed by Commissioner Wilson who re-
fused to approve of banking methods
employed by Kline. When Kline was
arrested at the Fifth Avenue hotel last
night, he carried two revolvers-
Telephone messages to Commissioner
Wilson from bank patrons in Wit
Jamestown, stated that Kline had
started to Topeka to get Wilson. He
was enraged because of the state Of
ficiafs action in demanding his re-
moval Kline is part Indian.
Operations for Years.
kline's operations are believed to
have covered period of several years
In that time he has practically wreck
ed the little bank. At a meeting of
the stockholders in August, last year,
Commissioner Wilson required them
to charge off accounts totalling S3,-
| 500 This action called for 35 per
cent assessment against the stock of
the bank. The institution is capital
| lied at $4,000 with $1,000 surplus
A. E. Bates, of Williamstown. is presi-
| o,nt of the bank. Kline, as cashier.
owned the controlling stock of the
| bank.
Church affiliations, devoted interest
4 on the part of both the cashier and
| his wife in all religious affairs made
easy for Kline his practice of alleged
deception and gained confidence and
| trust of men and women in the COM
munity who carried accounts at the
| bank. Even the church account seems
to have been "fleeced" by the default
J ing cashier. Among the items of the
bank which seem irregular is check
of the Baptist church fund for 5000.
carried as a cash item with twelve
| cent cash balance in the bank
While Kline had provided $4,000
bond, it is doubtful If his bond will be
sufficient to cover the shortages, ac-
| cording to estimates of state bank ex-
| aminers. One note signed by Kline is
| for $500. Another is for $1,000. A
| third note for $4,000 bears the name
of a prominent Williamstown mer-
chant, but the note may not be genu-
| inc.
Removed Pages of Ledgcrs.
Nor did <lines operations cease
| with these irregularities. His notes
are declared to be $4,000 short when
! checked against the few books which
examiners have found. Many pages
! from the ledgers and records of the
| bank are declared by examiners to
| have been removed and destroyed by
| Kline.
In an apparently wild and final ef-
/ fort to secure as much of the visible
assets of the bank as possible, Kline
4 al mr. h mi 1Assl -. -
written personal checks for sums ag-
gregating several hundred dollars
| Payments were made on these checks
! There were no funds in the bank TO
care for the checks and Kline is al
| legged to have placed them in a drawer
and carried the checks as cash items
| with the heck of the Baptist church.
Many of the records of the bank have
been found to have been altered and
| other records completely destroyed
Assessment on Stock.
! Because of the shortages and ap-
parent Irregularities, Commissioner
Wilson required the 35 per cent ASSESS
| ment on the stock in August Unless
| the shortages are made good it is
probable other assessments must be
ordered. The bank carried deposits
amounting to $4,000. Yet Kline had
practically removed all visible assets
A Lawrence correspondent of the bank
was found to have balance of less
| than 500.
When demand was made that
Kline be removed from any official
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