The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-20
Believed That He Took Bonds,
Securities of Patrons.
Speculation on Board OF Trade
Also a State Charge.
WARRANT OUT FOR ARREST
Substantial Reward Is Offered
Prosecute to Limit.
Last Seen Monday When He
Left in His Motor Car.

August Jaedicke. Jr. president OF
the Hanover State bank-rated as one
or the conservative and successful
small town bankers in the state-is
snort 100000 in his accounts. Spcc-
ulatlons on the board of trade are be-
lieVed TO have been responsible for his
shortages. The banker is now a f,ri-
tive. Walter f. Wilson. state bank
commissioner. today offered a reward
for his arrest.
Jaedicke'ss shortages consist of
ponds belonging to customers of the
bank and in note discrepancies. The
bank is closed and in charge of Ed
chapman of Great Bend. state bank
examiner The Hanover failure is the
second state bank crash in Kansas this
week. In both cases dishonest oper-
ations of bank officers are held re-
sponsible.
Left in a Motor Car.
State officials are TODAY working
largely in the dark IN an effort 10 un-
tangle the shortages of the Hanover
oank. The doors of the bank were
closed Monday morning when Presiz
dent Jaedicke drew the blinds and left
hanover in his automobile. Since that
time he has not been seen
Kansas bankers who knew the Han
over money lender and were familiar
with the strength of his institution be-
neved the bank president had gone to
81 Joseph or Kansas City in search OF
1 6fneTKenCN.
ers in the clearing house centers ex-
pressed earnest surprise when advised
that the doors of Jaedicke's bank had
closed. They asserted they would ad-
vance without question almost any
sum the Washington county man
might ask.
Practiced Illegal Methods?
Not until today was there an inti-
nation that Jaedicke was short in his
accounts or had practlced illegal
| methods in the handling of his bank.
The Jaedicke shortage is perhaps the
biggest sensation in banking circles
! since the MARCEL case in Doniphan
county or the famous Cross case in
Emporia - both many years ago.
lJaedicke's father established the Han
over bank thirty five years ago. 1t
carried deposits in excess of 5000. 600
and showed loans of s525,000. August
tJaedfcke, Jr., had grown up in the in
situation, was its president and prin-
cipal stockholder
| Commissioner Wilson. who left for
Hanover Wednesday night. today told
The State Journal that the state had
no clue as to the location of the de-
faulting bank president. He said Mrs.
Jaedicke asserted Ignorance regarding
her husbands affairs as well as the
purposes and plans of his leaving.
Jaedicke owned the finest home in
! Hanover. His bank several years ago
office building. The institution paid
Exceptional dividends and was never
known to be in financial straits or diff
ficuities.
No Bonds Returned.
! Now patrons of the bank are telling
the examiners and state commissioner
of liberty bonds and securities which
they placed with Jaedicke TO market.
He is said to have receipted for the
securities and promised to find a
buyer. But the customers did not re-
ceive the money. Nor were bonds
returned.
This afternoon examiners were seek
ing to determine the extent of note
discrepancies. Shortages of the bank
are conservatively placed at 800. .000.
ITney may be more.
So far as state officials have de-
termined. there are no forgeries. The
bank president seems merely to have
made away with securities of the bank
as well as those entrusted to his care
by bank patrons.
Warrant For His Arrest.
"On the face of partial determines
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