The Topeka state journal., 1922-05-09
r. e. Crummer Files Action
Against Walter e. Wilson.
Charged With Illegal Practice
as Bank Commissioner.
IS RESULT OF SALINA FAILURE
Claims That Wilson Misrepre-
scented Condition of Bank.
Total Involved in Suit Filed
Today Is $4,000.

Suits to collect $4,000 from Walter
E. Wilson, former state bank COM
missioner, and his bondsmen, were
filed today in the office of w. E.
Anderson, clerk of the Shawnee coun
ty district court, by r. E. drummer,
of Wichita Wilson is charged with
acting unfaithfully, Illegally and i'm
properly as bank commissioner and as
an individual during the failure of the
Kansas State bank at Salina in 1919.
One suit is against Wilson as prin-
cipal and S. T. Yoder j. C. GFoody,
William Jacobs, W. M. Earnest, Har-
vey Markham and Richard L. Thomas
as sureties. asking for 100000 dam
ages. Another suit is against Wilson
individually and asks for the recov-
cry of $50, 900 deposited to the credit
of the Salina bank by drummer upon
Wilson's alleged recomm endation.
drummer claims that Wilson mis-
represented to HIM the condition of
the Salina bank in order to induce
him to make a deposit of $500 to
the credit of the Salina bank in the
American State bank at Wichita. The
son and the Salina banks officers and
used by them, it is alleged.
Requested to Make Deposit.
drummer says he was requested by
the officers of the bank on March I,
1919, to make the deposit, and that
they referred him to Wilson for rec
ommendation. At that time Wilson g
deputy, F. j. Harper, was IN charge
of the bank, drummer says. He says
Wilson represented to him ana other
parties that the bank could meet it's
obligations. He says he then pro-
ceeded to deposit the money in the
Wichita bank, Wilson assuring him
that it would be maintained there as
a reserve account for the Kansas State
of Salina and that it would eventually
become a profitable account for the
Wichita bank He also approved GER
tificates of deposit issued to Crum-
mer by the Salina bank, says Crum-
mer.
Recites Alleged Violations of Law.
drummer then recites a list of all
legged violations of the banking laws
committed by the bank, which he says
We're committed with Wilson's knowl-
edge. He asserts that H. J. Letter.
dink, cashier, caused $4,000 in drafts
to be drawn on various eastern banks;
that the banks on which they were
drawn refused payment and that the
drafts were returned to the Salna
bank, where Lefferdink destroyed
them, making no entry on the banks
books. There was also published in
Sa lima paper, the Wichita man de-
clares, a statement of the Salina bank
in which its credits were made to ap-
pear $4,000 more than they actually
were. From December, 1918, to
March, 1919. Wilson assisted the bank
officers in obtaining loans for the
bank, drummer charges, representing
to those making the loans that they
were guaranteed by the state bank
guarantee fund.
Declared Insolvent in 1919.
drummer alleges that Wilson we'll
knew of the alleged violations of the
law that were being committed by
the officers of the Salina institution.
but that he allowed the bank to run
six months under the control of its
own officers after discovering its in
condition, and that he allowed
the delinquent officers to overdraW
their accounts without security. The
bank was declared insOVent May 26,
1919.