The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-29
KIRLIN'S WAY
OF HANDLING
NOTES SHOWN
Orders Reveal ''Double-Act-
ing System of Sen din g
Notes Through Conners-
vile Bank.
cash PAID ON NOTES

Evidence of the confusion which ex-
lists in effecting a settlement of the af-
fairs Of the Farmers Bank Of Milton,
Ind, which suspended business, July
6, following the suicide Of the cashier,
Oscar M. Kirlin was furnished Thurs
day by orders issued by Judge William
A. Bond Of the Wayne circuit court,
acting on petitions submitted by the
receiver for the bank, Claude Kitter
man, of Cambridge City, Ind.
In one order Judge Bond authorized
the appointment of an expert account
ant to assist the receiver in the
investigation of the banks affairs.
Another order directs the surrender
of original notes held by George J..
Klemme, for $4,000, and by Ed Wilson,
for 81, 700, upon payment Of copy notes,
each in the form of renewal and held
by the First National Bank Of Con-
! nersville, Ind, which were executed
! by Kirlin without authority.
This order further authorizes the
receiver to treat all similar circum-
stances in the same way.
Cash Is Applied on Note.
A third order directs that $1,000 Of
the $4,000 in cash found in the bank
when it suspended business be paid
over to the First National Bank. Of
Connersville to be applied to a note
for $4,000 taken out with the Farm
ers' bank by Edgar R. Beeson.
1t is set forth in the petition that
on April 2. last. Beeson executed the
note which was then transferred to
the First National Bank Of Corners
Vile, which was the reserve bank for
the Milton bank, and discounted. 1t
is stated that on May 10 Beeson paid
Kirlin 1000 to be applied upon the
note.
Kirlin, however, kept the money at
his own bank. 1t is understood that
Beeson held a receipt to show that he
had made payment of $1,000 to Kirlin
on the note.
According to representations made
to the court by Receiver Kitterman, it
had been the custom of Kirlin when he
was unable to promptly secure re-
newal Of note, for him to draw up
copy note in the form Of renewal
and return the copy note to the Con-
note at the Farmers bank as the real
evidence Of the debt for which the
original note had been executed.
To Settle Original Debts.
AS the copy notes and the original
notes represent the same debt, In such
instances, the receiver is authorized
to compound the copy and the original
notes and make settlement with the
note executors at the amount OF the
original debt as evidenced by the or
iginal note.
AS stated. the order is made directly
applicable for the settlement of the
notes Of George ]. Klemme and Ed.
Wilson, but covers all cases similar
to theirs.
1t Is stated In the receivers petition
that there probably were other cases
similar to those Of Klemme and
Wilson.
1t is further stated that in such in
stances when Kirlin prepared a copy
note in the form of a renewal upon
the maturity Of an original note, then
rediscounted such copy notes at the
Conpersville bank, he did so without
the knowledge or consent Of the Off
GERS Of the Farmers bank, other than
himself, and of the officers of the Con-
nersville bank.
One Of the most interesting recent
developments In the Farmers bank
failure is the fact that the bond Kir-
lin was supposed to have given as
cashier of the institution cannot be
located
At the time the bank was closed it
was stated that Kirlin was under a
blanket bond, the bondsmen being the
cashiers father, Omar Kirlin. and the
estate of the late Lycurgus Beeson.