The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-12
CHECK FOR $4,000
WAS SPLIT 3 WAYS
coNrINuE FRoM pAar oNr

sS95,o00. Under this contract, the
| Bank OF Commerce, therefore, had
| S395,000 book value OF assets more
/ than the liabilities they assumed and
/ one year in which to select the
notes aggregating s395,000 they
would turn back TO the Guaranty
State bank. That Ia, SS95,oOO in
notes were set aside which were to
| go back to the Guaranty state bank
| January 3, 1921, but the Bank of
| Commerce had the right at any
| time before that date to substitute
| any OF the other notes, taken over
| from the Guaranty state bank, In
| lieu OF the ones set aside. The
Bank OF Commerce has been in the
/ hands OF the bank commissioner
| since November /, 1921, and on
January 4, 1929, the assistant attor.
ney-general advising the bank COM
| missioner, delivered to the officers
/ OF the Guaranty state bank certain
| notes aggregatlng $395,000, which
| notes were the notes or substitutes
| thereof set aside to be returned TO
/ the Guaranty state bank one year
after the Bank OF Commerce took
| over the assets. This act on the
| part OF the assistant attorney-Ron-
eral has caused some comment upon
/ the part of the directors OF the
| Bank OF Commerce and is mentioned
| here that you may understand why
| the Guaranty State bank received
back some of their assets after the
Bank OF Commerce closed It's doors
Used Bribery System.
The period of investigation OF
some phases OF the activities OF the
| Guaranty state bank covers the last
two years IL was open for business.
but some Of the acts investigated
indicate that such practice had been
INDUCED in prior thereto.
information has been furnish
Cd To you OF sworn testimony
taken In courts of this state and
OF the federal government,
wherein IL wns testified to that
offiCcrs OF the Guaranty State
bank had charged IA bonus or fee
TO the borrower who borrowed
from that bank This bonus or
fec is not paid TO the bank, but IL
bribc the officer charges for
granting the loan or Obtaining the
consent of the directors for tho
loan. IL is sometimes paid i'm cash
ana sometimes paid by forcing tho
borrower To purchase from the
bribcd officer notes, stocks, bonds
or o'hcr property at more than
It's actual value. I have been In
formed that the laws of The state
OF Oklahoma do not prohibit brib-
cry I'm this manner, but the Guar
anty state bank was u member OF
the Federal Reserve system and
suggest that you report 10 the
federal court of this district such
information as you have In regard
10 these matters, that the guilty
parties may he apprchcndcd and
justice mcted 10 them.
"A further violation OF the fed
eral laws Is where the officers of
the Guaranty State bank have pur-
chased securities from It's officers
and directors without authorization
from the board.
The testimony before you will
| show the true facts, but my inform1
ton is that some OF these securities
! were collateral on a note ownel by
the Guaranty State bank and were
stolen from the collateral files by an
officer and director of the bank and
placed in the banks assests and notes
owned by the bank were taken out
In lieu thereof The items mentioned
are moro fully set out In a supple
| mental list furnished to you.
An Unsigned Report.
For some time prior TO the
date the Bank OF Commerce took
over the Guaranty State bank, the
Guaranty State bank was under
the supervision of the state bank
commissioner and the last report
or examination ObtainabIc by me
was II purportcd report made by
Fred G.. Dennis on September %,
1920. which Is supposed To report
the condition of the Guaranty State
hank of Okmulgce us of September
20, 1920. l use the word 'Dur-
hnnnIIEn nj
port Is In the files OF the bank COM
missioncr's office at Oklahoma
City as the report of examination
made on that date, the entire re-
port and signature II typewriter
and other than n statement of as
sets and liabilities ns shown on the
| general ledger balance book and
/ n long list Of names and amounts
owed by certain borrowers, there
Is no information contained there
in.
"Thc criticisms contained there
In are insignificant and II any crit
iCisms of importance were made
or corrections demanded. this pur-
ported report of examination does
not show them.
at the time the Bank of Com
meree took over the assets OF the
Guaranty State bank, the Guaranty
| State bank included in those assets
notes OF directors and their corpora
tions aggregating more than $780,
900. or approximately As per cent of
the deposits. or twice the capital and
surplus OF the bank. This does not
! include the bonds OF the Southwest
ern Coal and Oil COMPANY. aggre-
eating $4,000, a corporation which
| had for It's president and treasurer
at that time the directors of the
Guaranty State bank. The greater
part of these bonds seem to have