The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-03-31

In September, 1920, Fred G. Dennis
was bank commissioner. with power to
regulate and take over state banks in a
failing condition. The Guaranty state
Bank Of Okmulgee was in such condi-
tion. John II. Rebold. an oil man. was
large stakeholder and vice-president
Of that bank, and had some paper Of
his own in that bank, and much other
paper therein in which he was interest
ed. Dennis personally examined the
bank on September 81, 1920 That bank
had, as shown by reports in Dennis
office been in u doubtful condition for
approximately a year prior to that
date, and Dennis had been making the
examinations.
The capital and surplus OF the bank
was S4O0, 100000. Dennis report Of that
date, September 27, 1920, showed, with
out any criticism, a great number, in
large amounts, Of excessive loans; and
that Rebold had S462 900 of his own
paper in the bank; an amount greatly
in excess of the capital and surplus Of
the bank clearly making it the duty Of
Dennis TO take positive action to correct
NhN u N- AlaliAltS. ~ Allt StAlllt A4ll4N
A. n. Leecraft, state treasurer had
on deposit in the bank, Of state money
SS9,O00.00, as follows: State Treasury
funds, $56,O0O0O for which he held
$57 100000 security, about 100000 in
another account, secured by a surety
bond for 100000: and 500, 10000 in
another account secured by a surety
bond for S300000O On the same day
Dennis examined the bank and found
it in the condition above stated, $780,
10000 additional Of state treasury funds
were deposited in the bank, notwith-
standing ii was then in a rotten ana
failing condition.
The state treasurer's records show
that. 10 secure this additional deposit
of sl50,000 of state money, surety
bond for $4,000 was posted on the
books OF the treasurer's office Septem
Der 2s, two days after the deposit; and
another surety bond for 500 900 posted
on October Sth, eleven days after the
deposit. II was explained. however,
that these bonds were probably prev
iously received. but not approved and
posted until the dates above.
This additional deposit of sl50,000 Of
state money was made ON the same
day Dennis examined the bank, but it
is now shown In his report as he re-
ported the condition Of the bank at the
close of business on September 2jth.
AT the same time Rebold gave Dennis a
check for $4,000 drawn by this Ok.
mulgee bank and endorsed by Rebold
which was presented by Dennis to the
Wilkin-Hale State Bank in Oklahoma
City, on September 9sth. the day fol-
lowing the examination Of the Okmul-
gee Bank. and the deposit therein Of
this additional sl50,OO0 Of state money;
and for this check Dennis received
from the Wilkin-Hale bank three cash
ier's checks. one for sS .3s3. 80, one for
sS.S3S.S3 and one for S.3S3.34, one q
which cashiers checks he gave TO
Governor Robertson.
This state money was drawn from
the First National Bank cf Oklahoma
City by check OF the state treasurer
by G. \. Smith. deputy. and dated Sep
tember %, 1920. two days before Dem
mis- went TO Ol,rn1 n1lgcc TO examine the
said Guaranty State Bank OF Okmul-
gee. but the check was not taken into
the Guaranty Bank al Okmulgec until
September 9Th. the day Dennis was
there. Dennis explained TO your COM
mittee that about year previously he
had secured an oil lease on l30 acres
Of land In jackson county, Oklahoma,
and that he sold that lease to Rebold
for s25, and that the check for that
amount was given him by Rebold for
the lease. However, as Dennis and
Rebold both then knew. this lease. II
there were lease. was 30 or ~ miles
from production, dry hole had been
drilled on an adjoining section. and
the same was In practically condemned
territory, and practically worthless
Dennis explained that Governor Rob.
ertson had "a third interest in the lease
and II was on THAI account that he gave
the governor one lf the Wnkin.Hale
Bank checks for .S.S33.S3. Mr.. Rebold
explains. in substance, rhat he paid
Dennis $4,000 for the lease IN Jackson
county, which was in sections ~ and
Is, township south. range % west
because a fellow BY the name OF Clark.
from New York. was negotiating with
him for the purchase of the Harris"
oil property southeast VI Morris IN sec.
ton IS. township i3 north, range 1
east. wha would pay him $500 900 for