Capital journal. (Salem, Or.) 1919-1980, 1920-09-20
The Jacksonville Case

The Jacksonville Case
The Jacksonville bank failure does not appear to nave
been failure but robberya systematic lootlng conducted
for several under the eyes of the state bank
who are supposed to safeguard the public.
Aho the state bank superintendent has been In charge
Of he institution since August TO- he has made no
concerning the extent of the the available
assets He reports that such hopeless and nextrcabe
confusion the banks affairs exists that has been
sibe to make authentic staementet only TWO weeks
before the banks closure the bank was examined ana al
fairs found sasfactoryat least notice was served the
public to the contrary
Another astounding feature the assistance rem
dered the banker by county Officials VINO pacea county
funds his disposal to the extent OF over Slooooo ana
kept advancing money him after his drafts had peen
returned as worthless. The banks capital was Sloooo
securities deposited for $1O0O to the county
deposits but these approved and nave pee Iouno
TO have been borrowed total of 0723 of county funds
was deposited by the county treasurer upon order OF
county court-none of whom escape responsibility.
County deposits increased from $64O78 on January to
3 when the bank closed and this dspe the TACT
that the published report of the banks finances as made
to the state bank superintendent revealed total deposits OF
only fraction of this amount. In the February rs l9zo
report the bank statement showed total deposits OF
while the county treasuers monthly report to the county
court showed $6 1853 county funds alone In the bank IN
the July report the bank statement showed deposits OF
S28306 and the county treasurers report shoWeo
the Jacksonville bank of $87487hree times the total tne
banker reported 1t inconcevabe that county officials
did not notice the discrepancy.
William r. Johnson president, manager and owner OF
the Jacksonville bank is IN jail charged Win PeJuy o
making false statements to the superintendent OF banks
But his defalcatons not only to his depostors he
was also treasurer of the city of Jacksonville OF the local
church. of the school board Of the Masonic lodge and col
for various insurance companies and for the light and
power companyand is shy in the accounts OF ALL In add-
on he sold liberty bonds and other securities belonging to
customers and pocketed the coin.
Another mysterious feature connected with the failure
is the suppression concerning it in Medford and
county papers Such facts have been presented
outside officials reports dug up by staff
en of the Portland Journal which has torn the
spracy silence maintained by bank examiner py county
officials by local newspapers and by Johnson himself
The greatest mystery of all is what Johnson did with
onevestmated to total Quarter of million dollars AS
he was not high liver speculator nor punger it IS
supposed by victims to have been saed away for the
future
There is evidently plenty of work ahead for the grand
iury-and the probe should not end with the banker
county system that permits such waste OF public funds and
banking system that permits conceament OF such crooked
transactions and such oong of the people, needs not only
to be probed, but to be remedied