Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1921-10-18
BLAME CONSPIRACY
FOR COLLAPSE OF
2 ILLINOIS BANKS
STATE AUDITOR ALLEGES PLOT
TO WRECK INSTITUTIONS LIES
BEHIND cRAsH-ALLEGE $4,000
SHORTAGE EXISTS IN WeNoNA
INSTITUTION.

Chicago, Oct. ls.--A bank wrecking
conspiracy. BY which small town
banks In Illinois. one of them being
the Farmers State Bank Of Wenona
3sst aoros the La Sale county line.
Snd probably four other middle west
srn states we're to have been stuffed
with millions OF dollars in worthless
securities, was uncovered yesterday
by State Auditor Andrew Russell at
Springfield.
Jourgan Olson. broker. Of Minot,
charged by the state auditor with be
ing organizer OF the scheme.
Two Illinois banks. controlled by
Olson, were closed on orders from
Springfield BY state bank examiners
yesterday. Large shortages, 1t Is
charged, have been discovered on the
books Of each. The banks are:
The Union State Bank of Hanover,
HI, with shortage of $4,000.
The State Bank Of Bardolph. H.
with a shortage of $4,000
by Mr.. Russell last night for both
banks.
Shortages of $4,000 and $4,000
also have been discovered on the
books VI two other Illinois banks in
which Olson owns controlling inter
ests-shs Peoples State Benk of Col
chester and the Farmers State Bank
of WeRona.
Pledges by the board of directors
OF these banks to make good the
shortages caused State Auditor Russell
10 allow them to continue open until
the investigation Is completed
Leo N. Kapland, cashier Of the Han
over Bank. who disappeared last Tues
day after examiners had come upon
the $4,000 shortage, was captured
yesterday. With him had disappeared
about 5000 In securities taken from
safety deposit boxes. None OF them
was found.
Kopland was captured at Davis
Junction by 4 deputy sheriff acting
on orders from the chief OF police OF
Hanover, who served on him war
rant charging embezzlcment.
Fearing violence by a mob Of jo
Dayiess county farmers, the author.
tics last night took the fugitive cash
Ter by automobile to Galena. Ill.
None of the missing securities were
found on Kopland. This caused hani
examiners to believe that kopland dit
not actually carry away the $1,000
reported as shortage. They said j
may have existed only as worthless
paper.
e. J. Woolever cashier OF the Bar
dolph State Bank. admitted that con
trolling interest in his bank, suppos
cdly owned by himself in reality wa
owned by Olson. The same situation
he stated, obtained in Hanover, wher,
controlling interest was held in tn
name OF Cashier Kopland.
I'VE took our orders from Olson ant
no paid us regular salaries" he said
He said that stock held in the nam
of John X. Eadie, president Of tn
Hanover bank, also was Olson
Eadie, formerly owner OF the Hanove
bank, was retained as president whel
no sold his interest to Olson
A federal inquiry, based on tn
charge that alleged worthless note
wero sent by Olson through the mails
Is expected.
The expose started last Tuesda
when examiners went through tn
books of the Olson bank at Hanover
Tuesday night Kopland disappeared
Thursday Chief Examiner w. B. Viii
lock was sent to Hanover by Audito
Russell.
I'VE are going to run down ever
bank In Illinois which holds any O
this man Olson's pepper" announce
Chief Examiner Whitlock last nigh
We have information that the fou
banks under scrutiny arc not his onl
'dupes
He said that Investigations had bee
recommended to the state auditors
Offices Of other states in which Olso
IL believed to be Interested in bank
North Dakota, Minnesota, Indian
and Michigan.
Cashier Kopland is rs years old an
unmarried He lived In st. Paul BIZ
fore going 10 Hanover. He is bonde
by Baltimore concern for $4,000.