The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-08
CHAOS IN BANK
LAID AT DOORS
OF EXAMINERS
Father-in-law of Dead Milton
Cashier Says They Should
Have Discovered Condi.
tlons.
TELLS OF INSPECTIONS

Charles ferguson, president Of the
defunct Farmers Banking company OF
Milton. Ind, and father-in-law of Os-
car NJ. klrlln, cashier, who committed
suicide July l, in statement Thurs
day blamed the state banking depart
ment for the failure of examiners to
discover months ago, conditions ex
listing at the bank, which finally re-
suited in the appointment of a re.
ceiver for the institution, last Tues
day
Mr.. Ferguson failed to confirm the
published statement of Charles W.
Camp, head of the state banking de-
partment, that the shortage existing
at the Milton bank, approximatins
100000 was the result of stock mar
ket speculation on the part of Kirlin.
Mr.. Ferguson also denied that he
had any positive evidence that a con-
siderable number of notes which have
been found at the bank, had been
forged by kirlin.
We may find some forged notes,
however" Mr.. Ferguson remarked
He added that he had no definite in
formation to show that his son-in-law
had appropriated bank money for his
own use as had been stated.
SoyS SASSN ttdS iNO dldC'
Admission was made by Mr.. Fergu-
son that the Kirlin estate included
some stock of practically no value. He
said that he did not know the amount
of Kirlin's stock holdings. as the
safety box in which kirlin kept his
personal belongings had not yet been
opened
Mr. Kerlin stated that he knew Kir-
lin had stock in OIL automobile and
other concerns. which stock is regard
ed as almost korthless.
When asked concerning the state
ment attributed to Charles w. Camp
that Kirlin was a stock market spec
ulator. Ferguson said that to the best
of his knowledge, kirlin had never
played" the stock market.
IF he did, he did it on the sly"
he remarked.
The president Of the Milton bank
has no criticism to make of G. G.
Welsh, who conducted the examina-
tion Of the banks affairs last week,
the day before Kirlin shot himself.
Mr.. Ferguson declares, however, that
other representative Of the state
banking department who inspected the
Milton bank conducted careless inves-
legations.
kirin Was Severely Censured.
About IS months ago, according TO
Mr. Ferguson, a bank examiner severe
ly censured Kirlin for not keeping bet
ter records of the banks transactions
but failed to discover that there was
a shortage in the banks accounts, al
though Mr.. Ferguson is convinced that
Kirlin had been grossly mismanaging
the affairs of the bank for several
years.
Last September a state bank exam
iner again went over the affairs OF
the bank and, Mr.. Ferguson says. he
was apparently satisfied with its con-
dition for he did not have any criti-
Cism to offer.
Last Tuesday when Mr. Welsh ex-
amined the bank he discovered that
Kirlin was Juggling figures and he an
nounced at that time that he intended
to close the bank" Mr.. Ferguson said.
"Kirlin told the examiner that he
would settle the banks affairs in an
entirely satisfactory manner in a day
or two and urged that the bank not
be closed. The examiner at first
promised to give Kirlin a chance to
carry out his promise but he finally
decided it was his duty to make a re-
port on what he had discovered at
the bank.
He took up the matter with me
and I called a meeting of the bank
board for July l. and told kirlin to
be prepared to report to the board
on the affairs of the bank. He killed
himself short time before the board
meeting was held"
Although Mr.. Ferguson states that
he has no positive information that
Kirlin forged notes on several Of the
patrons of the bank it is reported that
Jacob Wise. farmer living east Of
Milton, said that Kirlin had forged
his name to one note calling for more
than $4,000. 1t is also reported that
Kirlin forged the names of John Coyne
and 7. J. Connell.