The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-09-20
NAB TWO OIL men
Arrests Follow Closing of PiO-
neer Bank at Burlingame.
McCaslin of Topeka and C. w.
Gould of Burlingame Arrested.
THIRD WARRANT TO Be ISSUED
State Officials Investigating
Tactics Used in Kiting Checks.
Promoters in Usage County
Handled Many Thousands.
THIRD WARRANT To Be ISSUED

AS a result of l1iting tactics by oil
promoters which resulted in recent
closing of the Pioneer State Bank of
Burlingame, two warrants charging
felonies were issued in Usage county
today A third complaint was to be
issued this afternoon, it was reported.
Men arrested today were W. A.
McCaslin, of Topeka, and c. w. Gould,
who has been in Burlingame during
the last few weeks. 1t was reported
at the attorney generals office that
County Attorney Messler, of Usage
county, was preparing a complaint to
be issued late today for ]. E. Brady,
Gould surrendered to the officials as
soon as complaints were issued, ac-
cording to state house reports.
Bank Lost $4,000.
Complaints today grew out of recent
failure of the Burlingame bank, which
suffered loss of $4,000. State Of
ficials are now investigating tactics
employed in the alleged kiting of
checks and drafts thru the Pioneer
State. bank. In the course of a few
weeks oil promoters in Usage county
handled many thousands of dollars
thru the little bank, which had previ-
ously been regarded as one of the
strongest institutions in the county.
Information in the state house today
Is TO Ine erect lIldL S14o,UUU III uTdllS
was cleared thru the Farmers Ma
tional bank of Topeka in the kiting
activities. Walter L. Payne, former
state treasurer, is an officer of both
the Topeka and Burlingame banks.
Topeka Bank Did Not Lose.
1t was reported that the Topeka
bank did not lose any money in the
crash which caught the Burlingamc
institution.
,,e%rr In
plants are issued were said to be iden
titled with the Triangle Oil company,
which recently staged big promo
ton project in Usage county. Thru an
extensive publicity campaign they at
tracted much attention to wildcat
wen which was started, near Burlin-
game. 1t is reported that thru rep
reservations to the effect that they
held extensive oil interests in various
fields that they developed a wide line
OF credit.
In the frequent financial transac-;
tions which followed the Usage county
project the Burlingarne bank was
drawn into the operations. Numerous
drafts placed for credit during the
early activities were promptly hon
ored. Then, it is claimed, the pro-
moters began handling large checks
and drafts which were cleared thru
the Burlingame bank.
Granted Extensive Credit.
The oil promoters seemingly won
the confidence of officials of the Pio-
neer State and on representations
said to have been made to them ex-
tensive credit was granted. Finally
the checks and drafts came back in
large amounts. The promoters did
not protect the paper and the bank
closed it's doors.
Recently stockholders of the insti-
tuition voted to pay a 100 per cent
assessment on the capital stock of
$4,000. Efforts are being made to
raise an additional $4,000 to clean
up losses thru manipulations of the
oil promoters. If this money can be
raised the bank may be reopened.
Otherwise itsz entire capital and sur
plus will be wiped out thru the oil
losses
Drilled in Wild Cat Field.
Burlingame was in strictly wildcat
territory. The nearest proven field
is many miles away. But in the
dream of a new FL Dorado, a Burk
burnett or a Trapshooter pool SEEM
ingly seized the bank officers.
Promoters of the Triangle-7which
now seems to mean Brady, Gould and
McCaslin-apparently did not discour-
age the hope that a new wonder pool
was to be opened in the community.
When the well really began opera
tions and after the much heralded
spud in. Burlingame began TO live in
ICoTyfiuupd ON papn EIGHT