Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1923-06-06
COMMISSION
INVESTIGATES
PEOPLES BANK
Search for Officers
NolD Goes On.
THE PEOPLES BANK CASE


Six D. m. Friday, June 1st, bank :
taken over by State Chief Bank
ing Examiner Thomas Herried =
and Examiner w. c. Edwards.
Vaults sealed pending inspection :
of all records.
Saturday. June 2, 4 a. M Vice. =
Pres. Clark and Cashier Pugh :
leave town in Clark Oldsmebile 8. =
Monday, June 4, 8 a. M, Ex- :
aminer Edwards reports good rea-
son to believe that misapprOpria-
ton Of banks funds has taken :
place. :
= Monday, 10 a. M, warrants is :
sued for Pugh and Clark jointly =
charging emDezzlement Of banks :
funds. :
Monday, 10 a. M, C. III. BasfOrd :
returns to Lancaster. :
Tuesday, 12 noon, Checking still =
on. No report as to missing men.
The above is a digest of the pro-
gress of the Peoples State Bank case
up to going to press. The bank was
taken over by the State Banking De-
city unexpectedly Friday evening.
The bank door was placarded an
nouncing that the bank was in the
Il - 9,,a To -
port as 70 actual condition has been
obtained. This cannot be expected
before Friday.
Examiner Edwards Monday gave no
hope for a sound outcome of the in
vestigation. He said the bank had
been under suspicion for year or
more, but that examinations during
that period had shown no outward
sembIance Of trouble in the bank
L. A. Clark and j. HI. Pugh, active
officials of the bank, were not in town
Saturday when the news broke. Fol-
lotying advice by Mr.. Edwards Dist.
Atty. Geo. B. Clementson began trac-
ing. the two men Saturday afternoon.
Leo BARLEY of Bloomington, was dis
patched to Chicago at once. His
movements will be related in the fol-
lowing:
Mr.. Clark attended the boxing event
at Madison Friday evening, motoring
home about 2 o'clock. When he
reached here he received word that
mis- partner wished to see him. Pugh
and Clark were seen in conference on
the east side of the square opposite
the bank, about a. M They motored
south in the Clark car.
Two notes were found at the bank
by the examiner. The tone OF the
notes were similar. They asked for
the arrest of c. H. Basford, president
of the bank up to year ago last
March. A request was made that Mr..
Basford be prosecuted for the banks
troubles 1--WE can't stand the gait"
the notes concluded.
Mr.. Clementson traced the Clark
car to Sandy Hook. There a loan of
$40 was made from Herman Stumpf,
resort proprietor and acquaintance of
the boys. Later Leo BARLEY picked
up the trail in Chicago The boys
called on ]. C. Doolittle there and
made a minor touch" Evidently
they left here without funds and were
unable to obtain same from the bank
due to the unexpected action of the
state officials.
Mr.. BARLEY visited the paint shop
where Clark had his Marmon sedan,
heading off any chance of picking up
the big car. At one time Leo was
twenty minutes behind the boys. In
structions were left with the chief Of
detectives in Chicago to be on the
watch.
A reward will be posted according to
Mr.. Clementson's statement Monday.
1t is not considered probable that
the boys can get far if their intention
is to run away. Their only apparent
asset is the maroon car, and expen-
sive motor outfits are not easily dis
posed of.
The failure to appear, and the two
NOES have set public opinion against
the missing bank officials. IF they
felt guiltless why did they 'beat it?'
is the general and natural query. The
sentiment is that the two boys should
have stood their ground instead OF
making a spectacular getaway.
The reference to Mr.. Basford covers
matter that was street gossip all last
week. It has been alleged that Pugh
and Clark accused Basford of taking
S11,500 in currency when. he stepped
out OF the bank in March, 1922. This
money Pugh and Clark claimed was
forcibly restituted from Mr.. Basford.
However this may be, Pugh and
Clark were the principal witnesses OF
the alleged offense and must be here
to act in conjunction with the state.
On the other hand, if this money was
taken as claimed, but restored, ii
would not affect the SCUM mess of the
bank. The alibi falls down.
By next week a report of the banks
condition will be obtainable. Thhe
last statement showed assets and la
bilities of $685., 1915. There were
checking deposits of s73,117.56 and
certificates of deposit of s120, 211. 40
Savings deposits totaled s5,245.66.
Bank resources were 5000 paid
up capital stock and loans and dis
counts of s274,673.5S. The bank
owned its building worth $4,000 and
recently new fixtures and improve