The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1924-01-25
STATE SUPT. OF
BANKS ARRESTED
Continued from Page Onel

NOOnAllAuCu AAOAAA 4 ett5C OAACe
of Helena, and director of the bank,
residence here.
IL. S. Benson, a director OF the
bank, Helena.
Shelton, Neagle, Lindsay and Ben
son gave separate bonds, each IN the
sum of $3.50, for their appearance for
trial at the next ensuing term of the
district court.
The directors - Shelton, Maggie,
Lindsay and BensOn-are charged in
the indictments with accepting money
on deposit in the bank when they
had knowledge, or had occasion to
know, of the banks insolvency.
Four Indictments Against Casteel
George Casteel is charged in the
four indictments against him, first,
with larceny by bailee; with accept
ing deposits of money when he knew
of the banks insolvency; with at
testing. to a false statement of the
condition of the bank; and with fail
ure to make. a material entry on the
books of the'bank.
SturrOck Stock Entry
The charge that he failed to make
a material entry on the books of the
nected with shares of the capital
stock Of the Sturrock Plumbing COM
pany, of Helena, in the sum of So,
000 1t is alleged that after this
stock was sold by the bank to an
other party, the stock entry was car
ried on the books as an asset, and as
such was carried into statements on
the banks condition, instead of being
charged off from the banks assets.
Mr.. Benson is charged in a second
Indictment with having attested to a
false report en- the condition of the
bank.
Skeletons Statement
Shelton, when asked. after his ar
rest, for a statement said: Nothing
can be said at this time except that
the state superintendent of banks has
been arrested"
The grand jury is still in session.
Casteel Taken
Los Angeles, Jan. 22.-George W.
Casteel, indicted by a Helena grand
jury in connection with the failure
of a bank in that place, several
months ago, was arrested late today
by deputy sheriffs, and is being held
in the county jail under $500 ball.
which was set by the Montana off
cials. Casteel, the officers say, was
president of the institution at the
time of it's insolvency.
The above account of the arrest of
L. Q. Shelton, State Superintendent
of Banks, does not come as a parti-
a.. l.
of people who know something of
the inside facts regarding the conduct
of the State Banking Department. 1t
has been common knowledge to the
close observer that l.. @. Shelton has
aided and abetted bankers all over
Montana for the past three years
and has used his official position as
tool for the illegal conduct of the
banks which have been insolvent.
Many millions of dollars will be lost
by citizens and taxpayers all over the
State of Montana, due in many in
stances, to the wilfull and criminal
neglect on the part of the State SUI
perintendent of Banks to enforce the
banking laws. Scores of banks all
over Montana, some of them right
here in Sheridan county, have been
operating and dissipating the deposit
ors' money after it was common
knowledge that they were not COM
plying with the laws governing banks
and bankers and after they had adj
mitted their inability to maintain the
required legal cash reserve.
1t will be remembered that Shelton
attempted to force the Treasurer of
Sheridan County, through unfair re-
ports, to force over 100000 of the
taxpayers money into the banks of
Sheridan county in the fall of 1922.
His attempt was unheeded and the
money was used to retire a huge
bond issue in the spring of 1923
which was the most singular accom-
plishment recorded in any county in
the State of Montana. Had this
money been placed into the banks as
recommended by Shelton, the bond is
sue would still be unpaid and the
taxpayers would still be paying huge
sums in the form of interest to the
eastern investment bankers to SAY
nothing of the amount which now
would very likely be in the defunct
banks in Sheridan county and would
eventually be lost.
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