The Topeka state journal., 1922-05-25
BANKING DEPT.
TAKES ACTION
AGAINST BEDELL
Accounts of Kansas Bank Re-
ceiver Short $4,000.
Was Known in Banking De-
partment Since January 10.
AFFIDAVIT ADMITS SHORTAGE
Foster and Wyandotte County
Attorney Delayed Action.
Foster Says Didn't Know AM
davit Was in His Office.
Foster and WyandOtte County
Attorney Delayed Action.
Foster Says Didn't Know AM
davit Was in His Office.
STATEMENT BY C. S. BOWMAN
Charge of Embezzlement Is
Considered Today.
Bowman and Foster in Confer
ence Late Today.

After waiting four and a half
months the state banking department
late this afternoon took steps to bring
about criminal prosecution of Harry
E. Bedell, former receiver of the
Banking Trust company of Kansas
City. Kan. on a charge of embezzle-
ment The evidence on which the
prosecution will be based has been in
possession of the state banking de-
partment since January 10.
Prosecution OF Bedeil Will be based
on statements made to c. S. Bowman.
state bank examiner, regarding his
use of bank funds This information
is supplemented by an affidavit
signed by Bedell and sworn to before
a notary public in which he admits
that his books show a shortage of
$4,000.
This afternoon Frank H. Foster.
state bank commissioner, called an
assistant attorney general to his Of
flee. He also called in Examiner
Bowman. 1t is stated that. Foster was
advised that information in his de-
partment might be hearsay so far as
ne was personally concerned, so Bow
man signed the complaint asking for
Bedelfs arrest.
(NOTE-Action was taken by the
state banking department in the
Bedell case this afternoon following
forty-minute interview which Tho
State Journal held with Commissioner
Foster just preceding and during the
noon hour. The interview concerned
failure of state departments to take
action in the Bedel1 case on the basis
of BedelTs affidavit and other evil
dence which is declared to be in
hands of the state department. Foster
at that time asserted responsibility
was on f. A Enright, county attorney.
who had failed to act. This afternoon
the state department acted Because
of this rather unique procedure The
State Journal publishes below the
news story which was sent to the com
posing rooms shortly after 1 o'clock
this afternoon).
An affidavit to the effect that books
show a shortage Of substantially S4.-
700 in accounts in his charge was
made by Harry W. Bedell Is receiver
for the Bankir5 Trust company Of
Kansas City. Kan. The affidavit was
made January 10. Bedell was re-
moved. a state bank examiner went
over the books and secured the sffi-
davit. A new receiver was named
The affidavit admitting the short
age according to the accounting. has
been in possession Of Frank II. Foster.
state bank commissioner. almost since
the day IL was made. Foster stated to-
day he didn't know OF the document
until sometime after it had been Sc
cured nv his exa miner. Neither the
Wyandotte county attorney has taken
action.
County Attorney Is Ready.
Today Foster asserted z. A. En-
right, county attorney. was respoH-
sible for failure to proceed. EnriKht
has been quoted as saying he is ready
to act whenever Foster or j. Z. EnRle.
present receiver. signed a complaint.
There is a strange story connected
with the BankiI.-. Trust company sf-
fair. There seems to be a lot Of cor
between Commissioner
Foster and his examiner and receiver
as to proceedings against Bedell and
the turning of evidence over TO the
county attorney. But after four and
a half months since the affidavit was
secured. no decision regarding proce-
dure has beel res sched.
BedeIl was connected with the Kan
sas City institution when IT closed ita
doors. Persons interested in the at
fairs of Banking Trust company Pc
titioned for Bedelrs appointment as
receiver. Acting under a statutory
provision requiring BedelTs appoint
ment where requested by a ma aiority
of the stockholders. he was placed in
charge.
Didn't Want to Name Him.
7 didn't want to appoint BedeH,@
Foster said today 1T wasn't that I
didn't trust him. I simply doubted
his business ability
Then, according TO Fosters own
story today. he received rumors ana
reports that Bede1Fs accounts were
not being handled properly. One let.
(Continued on Page TnreeJ