The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-04-24
CLOSES 1T
Washington Bank Was Headed
by Walter Wilson.
Losses Estimated at Between
$4,000 and $4,000.

Frank H Foster, state bank com
missioner. today closed the Farmers
State bank at Washington. Excessive
| loans to stockmen have caused the
bank trouble during the last eighteen
/ months. Losses are estimated at $780,,
/ 600 to $4,000. The bank operated
| under the state bank guaranty law.
| Walter 2. Wilson. former state
| bank commissioner. was president of
| the Washington bank Recently he is
] reported to have sold all except five
shares of his stock. He is at present
| chairman of the board OF directors of
/ the Farmers National bank of To-
peka- Wilson stated this afternoon
\ that he had not been president of the
Washington bank since January 1 and
! had not bL active in its manage
ment in the last five years
In February. 1921-two months be-
fore he left the office OF state bank
commissioner-W himself direct
cd the bank stockholders TO pay a
200 per cent assessment. The bank
was capitalized at S25,0o0. Stock
holders paid in a little more than $40,-
900. The balance Of the 200 per cent
plus fund.
- one Loan OF sos. 900.
Loans aggregating $4,000 were
made in the last two or three years TO
A. Z. McGregor and W. H. Webster.
Washington county farmers and
SltChAltD Inc NnGGER6pE lOdh TO-
tailed 100000. It was this loan
which caused the institution trouble.
The Washington bank began bust
ness in June, 1904. When the state
bank came under the fund as a par
ticipating institution. Its last state
ment-issued in March-showed. de-
posits of $223.6s1, loans, $246,9OO,
and rediscounts. $4,000.
Asked this afternoon regarding the
institution Wilson stated he had not
been active in its affairs during the
last five years He said he had not
been president since the first of the
year
4 understand that examiners this
morning made demands on the direc-
tors to Immediately raise $25.0OO with
which to take up excess loans and
slow paper" said Wilson. This money
was not raised and the bank closed.
believe it will be successfully reor-
ganized and that losses will not be
as heavy as estimated. A committee,
representing banks in Washington
estimated a loss of perhaps $4,000 II
forced collections were made on slow
paper"
Wilson Widely known I'm State.
Wilson was for number of years
cashier of the Washington bank. A
few years ago he was elected presi-
dent. He is widely known in state
politics and has been president of the
Kansas state Bankers association He
came to the senate from washington
county in 1913 and served during leg
islative sessions of 3-15-17-19. He
was appointed by Governor Allen as
state bank commissioner in 1917.
Nearly two years ago Governor
Allen appointed a committee to in
Vestigate Wilson's work as bank COM
missioner. Frank H Foster. present
commissioner. was appointed as a
memb Der of the committee. In its
findings the committee criticised Vari-
Gus methods in the state department
and Governor Allen asked Wilson to
resign. He refused and custer pro-
ceedings were begun. James NJ. !
Challis. appointed by the supreme
court as commissioner in the case. |
found for Wilson and the supreme !
court sustained these findings. He
served until April 1, last year when |
his term expired. Governor Allen |
then appointed Foster to the office. /
It was stated in the banking depart !
ment today that the Washington in |
stitution has been under inspection |
much OF the time during the past year. |
3. V Curry and L. R. Vance. state |
bank examiners. are in charge OF the |
bank.
b T. Toder is vice president of the |
institution and c. E. Rust is cashier.
Loss May Exceed S5O,OoO.
State Bank Commissioner Foster /
stated that on the basis of findings by /
his exa miners the banks losses would 1
range from $4,000 to $4,000. This |
estimate is disputed by Wilson. 4
Reports received by Commissioner /
charge of the State Bank of Hope. \
Dickinson county. estimated losses of |
that bank at S50.000 to 100000 The i
bank was closed last week. Heavy /
losses occurred because of excess cat
tie loans.