The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-07-01

has refused to resign and sent me word
that he viii contest an effort to remove
him from office.
1 am, therefore, directing the attor-
ney general to begin the proper pro-
ceedings under the law for his removal
This will lead to a thoro consideration
of all the facts in the case. The find
ings of the court in the matter doubt
less will have a valuable effect upon
the future conduct of the office, and it
may lead to a legislative realization of
the need of the several important
changes in the law recommended by
this committee OF experienced bankers.
Statement by Wilson.
Wilson issued the following state
Il will fight removal as 1 refused to
resign. There is nothing in that report
there question of my integrity as an
official. The criticism in the Salina
case Is a criticism of my Judgment. 1t
must be remembered that @hindsight is
better than foresight If could decide
afterwards instead of at the time L
nigh have acted differently. But
bank commissioner is called upon to
decide to the best of his judgment at
the time the question comes up.
Another thing. Every move I took
knowledge and legal advice of the at
torney generals office. An assistant
attorney general genera has been consulted
ceedings.'
While Governor Allen and Wilson
were exchanging notes at the state
house Wednesday afternoon the ex-
ecutive committee of the Kansas State
Bankers association was holding a
meeting relative to the banking affairs
in the state and the present chaos
existing in the bank department as
a result of the investigation and the
fight pending. When Governor AL
lens determination to institute souster.
proceedings against Wilson was an
nounced, Sen. f. G Bergen, Manhat-
tan. president of the association, is
sued the following statement:
Bankers Solidly. Behind Wilson.
1.-THE Kansas State Bankers asso-
citation, and that means 500 state
bankers. is solidly behind Commits
sioner Wilson. We also feel affronted
that the governor appointed three
bankers on that investigating COM
mittee who are enemies of the bank
guaranty law. Personally, I want to
say 1 consider Walter Wilson the best
sioner the state ever had. He always
has worked for clean banking and
sound banking methods
1.-The report of the committee is
complimentary to the banking depart
ment, instead of justifying the COVER
nor in attempting to force the resig-
nation or removal of Commissioner
Wilson. When you consider that Kan
sas has had only three bank failures
under Wilson's Observation-Disclosures
than there were in Oklahoma. Mis-
souri, or Nebraska in the same time
and that all of these were due to dis
| honest bank officials or employees. not
| to bad administration of the banking
laws, 1 say he has made a wonder
| full record"
Following are Governor Aliens
| fourteen questions and their answers
| hV 10 n mi
Asked FIRST of Wilson's Deputies.
Question-were the reports of the depu-
| ties who examined this bank from the
time Mr.; Wilson tf took charge of the bank
to reveal to him the fact that the bank
was insolvent?
veal this condition. The fepors gof gthe
examination held February q. 191I,tto Ex-
eminer Benson. disclosed avery serious
condition in the affairs of this bank. The
examination tof June 6, 1917. reported to
| Wilson, showed that the condition was
| getting worse, and every report subse-
| that the bank was insolvent-
| Question-Coud; 1t have been possible
that the bank commissioner did not know
Answer-No.-
Question-In your opinion, did the re-
ports of the examiners made to Mr.. viii
a state of affairs existing in the Kansas
State Bank of Salina that he would have
been justified in taking charge of the
Answer--He, would have. been justified
in doing this and we consider it was his
duty to do so and at once start prosecu-
ton of the officers for their illegal acts.
Question-In your judgment. what were
the most outstanding of the Illegal acts
Outstanding "Iliegal Acts"
Answer-These are disclosed in the spe-
cial report We submitted to you. the most
outstanding of which are allowing loans
amounting to more than the capital and
| rr.lr r.f hn Aar1 10 Eo t0 TO ha
activeA officers and allowing these officers,
with the commissioners knowledge, to
solicit large time deposits.
Question-FroIil the examination Of the
records in the hank commissioners office,
in your opinion, did the bank commits
by the officers of the Kansas State Bank
Of Salina to secure large deposits, for
which time certificates were issued?
Question-Were any of these time ceruf-
Gates issued for borrowed money rather
| than as actual deposits and, if SO, had the
bank commissioner knowledge of this fact:
Answer-Yes. and the correspondence in
the files of this bank case showed he had
continuous knowledge Of this illegal prac-
tice.
QtRstion-what provision of the law
makes this an illegal practice?
| bank to issue its certificates of deposit for
the purpose of borrowing money"
Question-Did the bank commissioner
assist, approve or agree to the issuing of
certificates of deposit for the purpose of
obtaining money for the Kansas State
banky
| Answer-The correspondence in the files
| of the bank commissioners office at To-
peka disclosed the fact that he had such
knowledge and gave such assistance.
! Question-Does the correspondence in the
bank commissioners office indicate that the
bank commissioner assured the makers of
such loans that the certificates. so to be
issued, would be protected by the guaran-
| ty of fund of the state banks of Kansas.
State Protection.
Answer-In two cases the correspondence
| discloses this To be a fact providing the
Kansas State Bank of Salina would get the
entire amount stated on the face of the
certificate.
Question-In your Judgment did Letter
dink. the cashier of the bank. make such
| loans to himself as amounted TO a mis-
| appropriation of the bank funds?
| Answer-In our opinion. yes.
| Questionable the bank commissioner
| have knowledge of this before the closing
1 Of q