The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-02-12
Report of j. Nj. ChalIis Clears
Bank Commissioner.
Proceedings Fell Flat on Every
Point, He Says.
mot SCINTILLA OF EVIDENCE"
Mistakes in Judgment Not Suf-
ficient Cause, Says ChalIis.
Findings Cover Many Actions
of Bank Commissioner.

Custer proceedings against Walter
E. Wilson, state bank commissioners,
as directed by Governor Allen and
prosecuted in glaring and sensational
charges by Richard ]. Hopkins. att
torney general, fell flat and failed on
every issue. James NJ. Challis of
Atchison. commissioner appointed by
the supreme court to take evidence in
the case, today reported that Hopkins
had failed to produce "a scintilla of
evidence which would tend to prove
that there was anything sordid or dis
honest in the actions of the defend
ant"
Suit to remove the state bank COM
missioner waSs brought shortly after
the Republican national convention in
chicago in June. In political circles
it was reported that Wilson had cur
ried political disfavor with the gov
ernor, Trouble had been brewing in
Kansas for some months because of
charges made regarding failure of the
Kansas State bank at Salina. Wilson
and Richard J. Hopkins, attorney gem
, eral. had broken. Both are members
of the state charter board.
Asked Removal From Office.
Then came the custer suit with some
thirty or forty allegations and charges
on which the attorney general asked
Wilson's removal from office. Filling
OF the suit had been directed by the
governor Whether the bringing OF
| the suit in June grew out of the politI-
cal disturbance in state house circles.
was not entered into when evidences
was presented. The case was tried
strictiy on its merits. Last fall the SUI
preme court appointed James NJ. Chal-
lis or Atchison. as, commissioners. He
was 10 take testimony and make find
1ngs of fact and conclusions of law
Both his findings and conclusions To-
DAY are favorable to Wilson. In fact
he asserts that in no detail did the
plaintiff make a showing which would
warrant a suggestion of removal from
office.
wilson's term of office expires April
under his commission. Governor AL
len has stated that he will remove him
at the first possible moment IL is
clearly apparent, tho, that the Challis
report will give him little foundation
for his action.
! In his conclusions of law, Commis-
sioner Challis said in part:
| The bank commissioner in the con-
ouct or his office, is permitted to ex-
erclse such discretion as would be per-
rnltted in the conduct of a sound bank
ing business. Desperate situations NAV
De met by unusual action, IL prompted
Dy proper motives, notwithstanding
financial risk may be involved therein.
Mistakes in judgment on the part
made, are not sufficient to cause his
custer from sIch office
1t Is not a violation of law for a
bank commissioner to require a bank
which is receiving help. direction and
assistance from his department to re-
quire the bank to pay the expenses and
compensation of such assistants. depu-
tes and attorneys who may perform
services for such bank"
Covers Linn County Bank
| The last paragraph covers the com
nilssionef's findings In the Linn County
state bank case. where Wilson was
charged with illegal acts when he COM
| PEELED the bank to pay a fee to a firm
of lawyers for work performed ia
strengthening out records of transfers.
The commissioner held that failure of
! the bank commissioner to notify the
county attorney of violations of law.
would prove grounds for custer. But
/ it must be shown. he held, that such
| failure was wilful and springs from
corrupt or unworthy motives. "A pre-
sumption of good faith follows every
act of the bank commissioner" says
the finding, "and in any custer pro-
ceeding the burden is upon the state
/ to overcome that presum ption by a
preponderance of evidence"
That the commissioner has a wide
discretion in his action is emphatically
pointed out in Challis's conclusions of
law.
"A bank is not necessarily insolvent
when its cash and sight exchange fall
below the legal requirements" he
says, "and the bank commissioner
has wide discretion as to what steps
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