The New York herald., 1922-03-23
Charge Is Permitting Al
legged Insolvent Concern
to Operate.
CAPITALISTS ALSO TAKEN
Indictments at 0kmuIoee
Name Several Financiers-
Robertson Gives Bail.

; 0KMULGEE, Okla, March % (Asso-
son of Oklahoma submitted to arrest
here tonight on a charge of accepting
q bribe to permit operation of the
Guaranty State Bank of Okmulgee
while it was in an alleged insolvent
condition. The Governor Immediately
gave bond Of $1,000 for his appear
ance at trial.
Gov. Robertson, with Fred G. Den
mis-, former State Banking Commits
soner, and several local capitalists
were named in indictments returned
yesterday by the Grand Jury which
charged that alleged questionable ma
nipulations had been, conducted by a
State bank, said to be insolvent, and
were continued after It's purchase by
another State bank here, eliminating
in the failure of the institution.
Both Gov Robertson and Dennis were
charged with accepting a bribe to permit
the Guaranty State Bank here to con-
finue to operate aftey they knew 1t was
insolvent.
Bankers Under Arrest.
The indictments against the local men.
ali active officers in the two banks.
contained charges of embezzlement, ac-
ceptng a birbe bribing an officer, re-
ceiying deposits in an insolvent bank,
perjury and borrowing money while
acting as bank officers.
a.xta IL
ing trial except Dennis and four men
reported to be out of the city, two of
whom are named in connection with
failures of State banks at Preston and
Hoffman.
Those arrested to-day are John ID.
Cook. banker: John II. Rebould. oil OPP
orator; John w. Harmon. wholesale
grocer and bank director j. Ray Brown,
banker A. J. Peters, banker; l.. y.
Cooke, bank director. and Ernest g.
Ray. cashier of the Bank of Commerce.
Rebould and John d. Cook are
charged jointly with giving to Gov. Rob-
ertsou and Dennis q $4,000 cashier 3
check -as brfbe to influence their acts.
after it was said. Dennis had found the
Guaranty State Bank to have been in
( solvent in an examination OF the bank 8
affairs on September %, 1920.
It was also alleged that Dennis failed
Ia make a true, report OF the banks
condition to the Banking Board, that he
and the Governor agreed to the placing
Of sl50,O00 Of state funds in the bank
and that it would be permitted to do
business.
The indictment against the Governor
and Dennis charged that Dennis found
tie bank insolvent and that the two,
"having power under the law to deter
mine the sovency or insolvency OF the
hank. did unlawfully. corruptiy and
fcloniousiy accept $4,000 as bribe or
r. ward from Rebould under an agree
nent that the bank should be allowed
I, continue to do business while in q
state of insolvency.
Dennis admitted receiving the Szo,OVO
encck but stated that il was paid TO
him for an ell lease. He also stated
that he gave to Gov. Robertson sS,33S.33
al the money as payment for his SHARE
III the lease.
Three Checks Received.
Evidence submitted 70 the Grand Jury
nurported to show that Dennis deposited
The $4,000 check in the Wilkin-Hale
Bank at Oklahoma City. which recently
failed. and received three cashiers $
checks. two for ss.333.33 and one for
.s.s33.34. With one Of these he is said
10 have made a payment on q farm, and