The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-26
Guaranty To Be Tapped to Help
Spring Hill Bank.
Embezzlement of $4,000 by
Cashier Irwin Williams.
ORDER ARREST OF OFFICIAL
Admits Guilt and Is Ready to
Take the Penalty.
Stock Is Held by 125 Farmers of
johnson County.

A receivership for the Farmers
State bank of Spring Hill will be nee
essary as the result of alleged embez-
{ elements of approximately $4,000 by
Cashier Irwin Williams, Frank H. Eos
ter, Kansas. bank commissioner, said
today.
Commissioner Foster will go to
Spring Hill this afternoon to look over
the situation personally. On orders
from Foster the bank did not open its
doors today. Hugh E. Wright, deputy
bank examiner, was cent to Spring
conversation with Thomas Williams.
president of the bank and father of
the alleged defaulting cashier. The
bank had been under surveillance as
the result of recent examination.
The bank guaranty fund undoubt-
edly will be called upon for $4,000
to $40, 900 to help make the deposits
good. Foster said today. The short
age is approximately $4,000, accord
ing to Fosters information. 1t is al
legged that Cashier Williams sold $780,
900 worth of government bonds left
with the bank for safekeeping. OF
this amount it is charged Williams
appropriated $4,000 for his own use,
using the remainder to take up ques-
tiOnable notes held by the bank.
1t is estimated SO cents on the dol
lar can be realized from. these notes
and that perhaps one-half of the cap
italization, 100000. can be collected
from the stockholders under the dou-
BILE liability act These amounts, to-
gether with $4,000 from Williams's
personal bond. will decrease the loss
Commissioner Foster has ordered
Williams's arrest today. The cashier
is said to have admitted his shortages
to F. r. Ogg, Johnson county attor-
ney.
The banks surplus was about So, 900
and deposits S156, 900, the latter hav-
ing declined approximately 100000
during the last year, Foster said. The
bank stock is held in small blocks by
125 Johnson county farmers.
Spring Hill, Kan, Aug. 26.-The
Farmers State bank of Spring Hill
was placed in the hands of the state
bank commissioner Thursday. The ac-
ton followed a reported shortage in
accounts said to aggregate $4,000.
Williams the cashier, and son of
Thomas Williams. president of the
bank, had made a statement to F. r.
Ogg, county attorney of Johnson
county. at Olathe. concerning the
shortage.
Cashier Admitted Shortage.
Ogg stated that Williams admitted
LnaL ne was responsible Tor the snort
age. Williams was released without
bond after he had agreed to appear
when notified. the county attorney
said. No charge has been placed
against him.
Williams is SO years old The fam
lily is prominent here.
According to County Attorney Ogg,
Ed Smith. a director of the bank,
came to his office on Tuesday and
asked that a warrant be issued for
Williams. Ogg said he summoned the
cashier to his office and questioned
him regarding the alleged shortage
Williams admitted it. Ogg said, and
asked what penalty might be imposed.
No Loss For Stockholders.
l. When told, he said. according to the
prosecutor: THAT is agreeable. I am
ready to suffer the consequences of
my act. and I'd just as soon start serv-
ing my sentence tomorrow"
Williams Ogg said, declined to say
what he had done with the money.
The Farmers State bank is capitalized
at $4,000 and has a surplus of $780,
600. Its stockholders are 125 johnson
county farmers. The bank has OPP
Grated under the state guaranty fund
an<A*he depositors will suffer no loss,
officials said.
Williams Ordered Arrested.
A representative of the state bank
commissioner left Topeka last night
for Spring Hill.
He carried orders to have Williams
arrested Immediately this morning for
alleged embezzlement of government
bonds amounting to approximately
$4,000, according to F. H. Foster,
state bank commissioner
The bonds had been left at the bank
for safe keeping. Foster said. The dis
coYery of the embezzlement was made
by the directors of the bank them
selves, Foster said. Foster was noti-
fled late Thursday afternoon of the
trouble and misrepresentation left i'm
mediately.