The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-24
August Jaedicke Did Not Loot
Safe Deposit Vault.
Dugald Spencer Appointed Re-
ceiver of Hanover Bank.
net SPREAD FOR SHUGAR7
Nebraskan Believed to Have
Engineered "Kiting" System.
DepositOrS Meet to Discuss Set.
tlement of Trouble.

Hanover, Kan. May 24.-August
Jaedicke. Jr., president of the Hanover
State bank, did not loot safety de-
posit boxes in his institution, accord
ing to information available this aft
ernoon. A number of safety boxes
were opened today. Patrons found
their securities intact. Shortages di-
rectly chargeable to the bank are now
estimated at $13S,000. Jaedicke's per-
sonal defalcations may boost the COM
munity's loss to 100000.
Causes Great Relief.
Walter E. Wilson. state bank COM
missioner, is here with S. N. Brewster,
former attorney general, and John
Hunt. Both Brewster and Hunt have
been specially retained by the bank
commissioner to direct settlement of
legal tangles growing out of the bank
trouble.
True relief was felt in Hanover to-
day when first reports indicated that
securities in safety boxes in the Jae-
dicke bank were safe. With a SEEM
ingly mountain high loss for the COM
munity thru the bank presidents
manipulation of funds, fear was felt
added to the list of Jaedicke's victims.
fNecSiNer Is AppOlnteu.
Depositors of the. bank will meet
late today to discuss methods for
settlement of the banking trouble.
| The community is seemingly pleased
! with present procedure. Numerous
conservative business men have Sc
verely criticised and condemned radi-
cal reports sent to certain newspapers.
Reports that threats had been made
against Commissioner Wilson were de-
MED, as were statements that appeals
| had been sent to Governor Allen for
his removal from office.
| Wilson today announced appoint
ment of Dugald Spencer, former moyor
ceiver for the bank. Spencer i'm
mediately arranged to enable bank
patrons to inspect their safety boxes
Pending appointment of a permanent
receiver. Wilson will appeal to Coy.
! erfior Allen for additional rewards II
connection with the nationwide hun
for August Jaedicke, Jr.. president oi
the bank, whose personal and banE
! shortages may exceed a half millioT
dollars.
Warrants Out for Shugart.
Warrants were issued today for the
arrest of c. z. Shugart, of Lincoln
Neb., according to information from
Hanover. Shugart is charged with
! aiding Jaedicke in carrying out his sys-
tematic loot of the bank. One theory
of the failure is to the effect that Shu-
CART and associates employed a kit
ing system and that Jaedicke's bank
| was a victim.
1t is not known whether Shugar'
will be prosecuted in Kansas or Ne
braska. Jaedicke has not been ar
rested, altho he left his bank a week
ago.
Letter Tells of Shortages.
A lengthy letter from Jaedicke t.
his wife telling of bank shortages anc
enumerating his deeds, was reported t.
be in possession of Commissioner vii
son. Mrs. Jaedicke has denied such g
letter came to her. She admits one
i letter was received, it is reported. bu
fatty denies claims that her husband
outlined his defalcations.
In the Hanover bank. examiner
have found a check ledger which in {
large degree shows Jaedicke's trans
actions. This book will be of mucf
value in Strengthening out knottec
i problems surrounding the banker
transactions.