The Topeka state journal., 1919-12-20
POllman, La Cygne, Held Today
On State Warrant.
Examiners Declare His Irregu-
larities Total $4,000.
HEADED STRONG INSTITUTION
Shortages Made Good With Aid
of Millionaire Brother.
COnfesses After Investigation
by E. V. Wood, Claim.

Fred w. Pollman, president and
principal stockholder of the Linn
County bank of LaCygne, was today
arrested on state warrant charging
embezzlement and forgery on ten
counts. Complaints were issued fol-
lowing Investigations by Walter E.
Wilson. state bank commissioner. Poll
man has signed confessions to five
forgeries His defalcat tions total
$4,000. Shortages 1t was said have
been made good thru assignments by
the banker and a millionaire brother.
The bank did not operate under the
state bank guaranty act.
Arrest of Pollman today created a
sensation in banking circles. The La
Cygne man is one of the most wealthy
and widely known bankers in eastern
Kansas and had almost unlimited
credit. Kansas City bankers held
thousands of dollars of Pollman's al
legged worthless paper. On the face
of sworn statements the bank was ap-
parently one of tn strongest usnaH
town institutions in the state. It car
ried deposits of nearly 100000 and
its loans and discounts were given at
$3.50. 900 in addition to $42, 900 loaned
on real estate.
Wood Found Forgcries.
Forgeries in the LaCygne bank were
found several weeks ago by E. V.
Wood a state bank examiner, during a
special examination of the bank, 1t
was declared. number of notes in
the bank were compared with sigma
lures on checks and Pollman con-
fessed. Wood asserted. that he had
committed forgeries. At that time he
claimed his shortages were but $28,-
900. New developments in the case
have shown that 81 10000 worth of
bad paper has been floated by the
bank president
The banker insisted on reading notes
during the examination Looking over
the presidents shoulders Wood noted
apparent irregularities in signatures
on notes supposed TO have been signed
by the same maker. Later Wood COM
pared the signatures with those on
checks. Pollman closely observed the
proceedings. He called Wood to the
rear of the building.
You've got me. / guess the bank
er said. Those are my forgeries
PoIlman wrote and signed contes-
sion. He then came to topeka with
the examiner For two nights Poll
man and Wood slept in the same room
in a local hotel. The bank president
was never out Of the examiners sight.
Sent Plea to Brother.
Following his arrival in Topeka,
Pollnan sent kilograms to William
Pollman. millionaire banker and lum-
herman in Baker. Ore. The brother
was asked to come at once and to
bring $4,000. To date the Oregon
millionaire is said to have made good
s1O6 600 in his brothers shortages
The LaCygne banker has also assigned
$4,000 worth of bank stock, and
Commissioner Wilson now holds title
TO 500 acres of land in Linn county
and 24O acres of land in Allen county.
These securities are pledged to the
protection of the bank
Speculations in Texas lands and in
mining ventures are said to have been
responsible for Pollman's forgeries.
Sta.e bank officials are unable to de-
termine the period covered by the
bankers entertainments
Few small town bankers in Kansas
enjoyed a greater credit or hlgher ri1
standing in financial circles than Poll
man. One Kansas City banker told
Commissioner Wilson he was ready to
loan the LaCygne man money in al
most any amount on his personal
pledge Other bankers declared Poll
mans or edit was the very best The
banker is A years old and was born
in Linn county. He has been at the
head of the Linn county bank for more
than a quarter OF century
Refused Liberty Bonds.
PoIlman's trouble really started
when he was declared to have refused
10 buy liberty bonds. SO determined
was his stand that a government in
Nestigation was made. Strong press
ure was said to have been exerted.
Pollman bought bonds.
Then came differences with oppo-
sition bankers in the town. Pollman
refused to exchange drafts with other
la Cygne bankers when they met in
the local clearing house. He insisted
on cash. Commissioner Wilson ad-
Nised against this necessity of keep
ing large cash reserves to meet clear
ing house demands. He mentioned
the possibilities of robbery.
y would as soon meet robber as
these fellows" Pollman is quoted as
having retorted in speaking of his
competitors
One day the town bank row reached
the high pitch where Pollman and a
competitor met in personal combat
The opposition banker was given most
OF the honors by local referees when
u'nHtiuned on Rage Two3