The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-05-27
WILDCAT OIL HAS
WRECKED BANK AT
LEHICH, KANSAS
j. L. Richert, Cashier, Said To
Be S6S,OOO Short.
State Bank Commissioner
Closes Memo Institution.
FORGED. NOTES ARE FOUND
$40, 900 in Good Notes Have Not
Been Located.
DepOsitOrs Not Protected by
State Guaranty Law.
]. L. Richert, Cashier, Said Te
Be S6S,OOO Short.
State Bank Commissioner
Closes Memo Institution.
FORGED NOTES ARE FOUND

Investments in wildcat oil promo
ton projects resulted in the closing
today of the Memo State bank OF
Lehigh, Marion county. ]. L. Richert,
cashier of the bank, is said to be
s6S.000 short in his accounts. In
stead of the money, the bank has an
assortment of forged notes and gilded
oil stock certificates.
1t may be several days before Wall
ter E. Wilson, state bank commission
er, is able to determine the exact ex-
tent of Richert's defalcations. Virgil
Smith, an examiner from the state
department, has been placed in charge
of the bank. According to informa-
ton which Smith today conveyed to
the state department, Richert is short
$4,000 in unregistered time certl1i-
Gates of deposit, while the bank has
not less than $4,000 worth of forged
notes and $4,000 worth of perfectly
good notes are missing.
Richert was reported today to have
admitted the various forgeries. He
has not been arrested.
Had $50, 900 in Deposits.
The bank carried $4,000 in de-
posits, according to its recent state
ment. Its capital and surplus was
$22.500. of which $500 was in the
surplus fund. The bank did not
operate under the state bank guar
anty law.
Not until recently did the state de-
partment susp. mt irregularities in the
handling of the funds of the Lehigh
institution. A special examination,
however, disclosed that Richert's
books are in bad condition and that
his shortages are not less than $685.
oO0 1t is believed that the shortage
will be increased when the cash items
are checked.
The Memo State bank is located in
| the very heart of a rich Mennonite
district in Marion county. It's support
came mainly from members, of the
Mennonite church. Unless Lehigh and
| his associates can make good the
shortage, the farmers of the district
will lose heavily.
County Treasurer President.
j. D. Schmidt. county treasurer of
Marion county, is the president of the
bank. Cornelius Richert, the default
| ing cashiers father. is vice president
! of the bank, while two brothers, John
and Peter c. Richert. are members of
the board of directors. The bank is
practically a family affair. With the
exception of County Treasurer
Schmidt, few persons outside the
Richert family are interested as Off
GERS or stockholders of the bank. John
Richert, a director of the Memo State
| bank. is engaged in the banking busi-
1
was established in 1910.
Wild speculation in oil stocks is
said to be responsible for closing the
bank. In a telephone communication
with Commissioner Wilson today, Ex-
aminer Smith stated that Richert pos
sessed the finest collection of en-
graved stocks he ever saw. Some of
the stock may prove valuable. In the
main, tho, there is believed to be little
| salvage from the wild and reckless in
vestments of the bank cashier.
| Daughter Not Implicated.
| Confronted with the forgeries,
Richert was said to have admitted that
he forged the notes and carried them
as part of the assets of the institu-
ton. He said that his daughter, who
assisted him in the work of the bank,
was not implicated in the defa1cations.
No explanation has been given state
| officials concerning the missing GER
! tificates of deposit or the $4,000
worth of notes which the examiner
cannot find. Before the end of the
day a careful check will be made of
the actual cash and cash items 1t is
believed that these items are also
short, further increasing the losses of
the Mennonite farmers and bank pa