The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-26
ThOrO Investigation of State
Banking Department Coming.
Governor Says Action Is as a
Result of Criticisms.
WANTS PUBLIC Confidence
Recent Bank Failures Cause of
Move Made Today.
GoebeI, of Kansas City, and
Foster, of TT. Scott, Named.

Governor Allen today announced
that he would direct an investigation
of the administration of the state
banking department thru a special
committee named by him. He ap-
pointed p. w. Goebel of Kansas City,
Kan. and Frank Foster of Fort Scott
as members of the committee. A
third member is to be named.
The governor stated that his action
was taken as a result of criticisms of
the work Of Walter z. Wilson, state
bank commissioner, and a seeming un-
rest as a result OF existing conditions.
These criticisms. he stated. grew out
of recent bank failures in this state.
Under the law the governor may
remove the state bank commissioner
only upon a showing in a court of
record of intentional misconduct or
neglect of office. The governor will
not proceed thru the courts. at least
at this time, but will ask for probe
OF Wilson'S work by his committee
members.
Tor Public Confidence.
In discussing his action. the gov
ernor said the move was made that
full public confidence might be placed
in the banking department. The COM
mittee will be asked to determine
whether the stateAbanks Of Kansas and
the bank patrons are properly safe
guarded in the protection of their in
terests.
pete" GoebeI of Kansas City. who
heads the committee, is a widely
known banker with both state and ma
>fional banking interests. Frank Fos-
ter is d former president of the Kan
sas Bankers association.
My action should not be con-
strued as against Bank Commissioner
Wilson," Governor Allen said in
statement today. 1T is taken merely
for the purpose of ascertaining
whether there is a legitimate founda-
tion for criticism which exists con-
cerning the administration of his Of
flee It Is of utmost Importance that
the public and the banking fraternity
should have confidence in the banking
department of the state.
Soundness OF Banks.
There is. Of course, no question as
to the general soundness of the Kan
sas banks or the safe conditions that
have grown up thru the depositors'
guaranty law and the conservative ad
minstration of the Kansas bankers"
The governor indicated he would
name third member Of the commit
tee tonight while aboard the Kansas
special to New York.
Commissioner Wilson declined at
this time to comment on the investiga-
tion or the personnel of the commit
tee. He has been quoted as stating
that he would welcome any open and
public examination of his department.
The demand for removal of Com
missioner Wilson was started several
weeks ago by the Kansas City Star, a
Missouri newspaper, following a series
of attacks covering a period of more
than year The Stars fight was sup
ported by banking interests hostile to
Wilson. AT present there is every
prospect that the governors probe will
open the old bank row and revive the
state and national bank war of former
years.
A number of prominent Kansas
bankers are known to have conferred
with the governor in the last few days.
Many of these banks urged that rigid
enforcement of state banking laws
would result in closing of many banks.
They referred to enforcement of laws
relative to reserves and rediscounts
Practically every small town bank in
the wheat belt has exceeded legal linn
it's of rediscounts because of inability
of the farmers to move their wheat.
Several weeks ago Wilson asserted that
more than 100 state banks have vio-
lated the law covering rediscounts be-
cause of public demands.
In the criticism regarding bank fail
ures, Wilson's friends assert that most
thoro examinations have been made at
regular periods of the defunct banks.