The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-07-01
ALLEN ORDERS
CUSTER ACTION
AGAINST WILSON
Follows Report ON Bank Ad-
ministration by Committee.
Commissioner Refused to Re-
sign-WM Fight Custer.
Estate BANKERS BACK WILSON
Declare He Is Best COmmis.
siOner Kansas Ever Had.
/, Committee Cites Salina Crash
-Hanover-Aulne Cases o. X.
Follows Report ON Bank Ad-
ministration by Committee.
Commissioners Refused to Re.
sign-WM Fight Custer.
STATE BANKERS BACK WILSON
Declare He Is Best Commis.
siOner Kansas Ever Had.

Rlchard j. HOPKINS, attorney gen.
erai. today was preparing custer pro-
ceedings against Walter E. Wilson.
state bank commissioner. in COM
pliance with instructions issued
Wednesday afternoon by Gov. Henry
J. Allen. Hopkins stated the prepara-
ton Of the custer suit would consume
several days.
The custer suit under preparation is
based upon the findings of an investi-
eating committee appointed by Gov
ernor Allen to proSe the affairs of the
state bank commissioners office. fol-
lowing the failure of four state banks
in recent months and agitation ove-
their failure aroused by the Kansas
City Star. The law provides that custer
proceedings may be instituted against
the bank commissioner II the state is
satisfied that he permitted a bank
official to violate the state banking
, laws for a period/of at least ninety
days.
Cite Salfna Bank Crash.
The state contends that this condi-
ton of affairs existed in the Kansas
State bank Of Salina for that length
of time, and the answers of fourteen
questions by the investigating commit
tee at the request of Governor Allen
brings out clearly the alleged condition
of affairs on which the state bases its
pending orster suit against Wilson.
Three Reports to Allen.
There are three reports presented
to Governor Allen by the fnvestigat-
ing committee. First, a general re-
| port of conditions in the bank COM
I missioner's office. covering numerous
/ transactions Second, confidential
report said to delve deeply into af-
1 fairs surrounding the failure of the
4 - 1fvrSa -, -
terner Allen based his determination
that Wilson was q fit subject for
/ custer proceedings. Last comes the
supplemental report covered in an
! swers to fourteen questions by the
! governor which gives in a general way
! the states contention that Wilson is
/ guilty OF misconduct In office in the
! Salina bank case. These questions
| were asked by Governor Allen after
the other two reports were presented
| to him.
! When the two reports were turned
| in to Governor Allen, he consulted
with Fred Harris an Ottawa attorney,
and brother of Ralph Harris. a
wealthy Ottawa banker and newspa-
| per publisher. 1t was on the advice
instituted the custer proceedings
4 against Wilson.
whether Harris will go further in
the prosecution is up to the attorney
general" Governor Allen said today.
| Harris and the attorney general were
In consultation Wednesday,"
Wilson to Answer Soon.
Walter Wilson spent the entire day
in the office of Brewster & Hunt. his
| attorneys. For a time Wilson and the
attorneys were busy in preparing an
answer to the action instigated by the
governor Later. Wilson announced
that any further statement from him
would be withheld until charged were
filed which could be used as a basis
for the custer proceedings.
"At the present time neither my at
torneys nor myself can find anything
in the general and supplemental re-
ports that would justify an custer
| Wilson said, "and until there is some
thing to answer any disclosures by
myself would be out of order"
In other words the entire key to
1.-THE governors action is in the mys-
Iterieus private report. the contents of
which is known only to Governor Al
len, Fred Harris. his legal adviser,
lRichard J. Hopkins. attorney general,
land the st'gating committee.
l. 1t was explained at the state house
to-day that the work of the investigat-
tfng committee was not necessarily for
ipublic consumption but rather its ac-
tivities were directed in an effort TO
inform the governor, who is response
BILE for Wilson. as to the conduct of the
office and If the findings of the com
imittee were made public. II was only
Ian effort of the governor. thru the
courts, to straighten out the banking
department in attempting to oust VIII
son from office
Wilson Feared Report.
Governor Allen admitted today that
he did intimate that the findings OF
the corsmittee would be buried for
lever IL the result he felt the report
justified-the resignation of Wilson
icould be attained without barring the
whole affair before the public.
That proposition was based on the
!. bank commissioners statement that
the report would ruin him." Governor
Allen said.
Z, Sen. J. r. Anspaugh. secretary OF
the Kansas State Bankers association
was in conference with Governor n
len for an hour today. Anspaugh
stated that he suggested writing let
ters to all members of the associa-
ton, advising them that in the future
the letter of the law be followed
strictly in extending credit in excess
of certain state rules and regulations
and that Governor Alien asked him
( to withhold such a letter for a time
Wilson was given a clean bill OF
health in the failure of the Hanover
= State bank and the Aulne State bank
1 However, his connection with the Kan
sas Bank Holding corporation. In
which he originally was director
came in for considerable criticism al
the hands of the investigating COM
mittee which included: p. w. Goebel
, Kansas City,. H. w. Grass. Lacrosse
4 and F. H. Foster. Fort Scott
The report. in speaking of Wilson
Continued on Page Two.)