Pioneer Trust Company (Kansas City, MO)

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Roach Is Out of Candidacy for Bank Commissioner

By The Associated Press. JEFFERSON CITY. Jan 26.With his appointment as liquidating agent fo rthe Pioneer Trust Company of Kansas City assured. political observers believed today that Cornelius Roach has been definitely removed as a candidate for state finance commissioner. and Gov. Guy B. Park had extricated himself from a ticklish political situation. With Roach. who had influential backing for the finance commissionership removed from the picture, the way was believed paved for the appointment of O. H. (Hamp) Moberly, of Harris. The governor late yesterday asked D. R. Harrison. the present state finance commissioner to look into the eligibility of Roach, former secretary of state, as liquidator for the Pioneer Trust. Since Harrison now is making appointments only after obtaining the governor's wishes, there was no doubt Roach would be selected. Roach's supporters for finance commissioner included W. T. Kemper of Kansas City, Democratic national committeeman from Missouri. Kemper came here only a few days ago to urge the governor to appoint Roach.

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ROACH GIVEN BETTER JOB IN BANKING GAME

By The Associated Press

Jefferson City, Jan. 26.-With his appointment as liquidating agent for the Pioneer Trust Company of Kansas City assured, political observers believed today that Cornelius Roach has been definitely removed as a candidate for state finance commissioner, and Gov. Guy B. Park had extricated himself for a ticklish political situation. With Roach, who had influential backing for the finance commissionership removed from the picture, the way was believed paved for the appointment of O. H. (Hamp) Moberly of Harris. The governor late yesterday asked D. R. Harrison, the present state finance commissioner, to look into the eligibility of Roach, former secretary of state, as liquidator for the Pioneer Trust. Since Harrison now is making appointments only after obtaining the Governor's wishes, there was no doubt Roach would be selected. Roach's supporters for finance commissioner included W. T. Kemper of Kansas City, Democratic national committeeman from Missouri. Kemper came here only a few days ago to urge the governor to appoint Roach.

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Resolution, Introduced Monday, Calls for Lists of Receivers of Closed Banks and Fees Paid Them.

Jefferson Democratic house Monday struck out at practices the state finance handling the affairs of closed banks adopting resolution calling finance to furnish list of bank and torneys and the fees paid for the work. Introduced by Roy Hamlin of Hannibal, newcomer the legislature, the on Harrison, Republican finance detailed accounting of all fees paid receivers attorneys the 150 banks which have failed since 1930. want to know more about the 4-year practice of looting defunct Hamlin said explaining his resolution. quick interchange of questioning by house members indicated the legislature desired to back the picture in the get four Republican rule. Sevyears eral remarks made regarding 1932 before certain publican officials retired from office." Judge Henry Lay of Warsaw, the most widely known lawyers Missouri and attorney for several country banks, was quick to support told the house members them things that would make their hair stand in referring to huge fees paid and for closed receivers for many closed banks been taking farms and other properties and have been selling them the the Hamlin said. want the exact ture of this situation and the facts brought light.' Democratic leaders revealed that among the of the resolution purposes strike Arthur Curtis, chairman of the Republican state committee, whose Springfield law firm of Curtis Farrington acted attorney for some banking institutions in The fees paid John Cahill of Springfield, active Republican worker and many years special deputy liquidating agent for the finance partment, also are be scrutinized. information called for the house resolution will be compiled Harrison, retired Tuesday state finance commissioner to ceeded H. Moberly of Harris, Governor Park's selection for the portant financial post. Harrison, regarded one of most able bankers will tinue temporarily the department. nothing to hide,' Harrisaid. fact, are proud of the record of this office during these Liquidating agents appointed Harrison his Cantley, have never received in cess month for their ices receiver for banks and legal fees have been by courts in the circuits which the banks have been located. "Attorneys' fees closed bank litigation have varied from $500 to and never have been high derstand members the house chargtoday, Harrison said explainthat finance attorneys' fees approved circuit court judges before being paid from the assets the closed banks. Cornelius Roach of Kansas City, pointed Friday receiver for the Pioneer Trust there, will ceive but $3,600 year for his Harrison said would estimate what fee impossible Leedy, appointed attorney for Roach, would receive. Leedy for Francis campaign manager and Governor Park, Speaker Meredith appointed Representative Hamlin, Hannibal; Jasper; Keating, Kansas of Dallas Lay, Benton, members special county house committee conduct after the detaildata of fees from the finance partment.

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George H. Buecking's Salary Was In Half His TELLER

BOUT two years ago little bank known as the Twelfth Street Bank made quiet move into the heart of the downtown district, where, tucked in beside the larger Pioneer Trust Company on Baltimore avenue, the old name was misleading to say the least. So it became known as the Baltimore

All the transactions were so quiet that few outside the customers the bank knew or anything about the move. Then happened. One morning Kansas City awoke to the closing of the Pioneer Trust Company. On the streets that day all talk was focused on the "1000 block' on Baltimore But the crowds that passed that block on Baltimore saw the little bank carrying on business as usual. Everything was as quiet as the unostentatious move from Twelfth street. The quietness continued all through the chaotic days that preceded the bank holiday. When the sun shone again, the Baltimore Bank, smallest bank in the downtown section, was of the most-discussed financial institutions in Kansas City

NOW DECIDED OPTIMIST.

A few days ago George H. Buecking. president of the Baltimore Bank, laid aside his work on the desk by the doorway and talked of financial things think we are on the verge of an amazingly year and half," he said. "What happens after that depends on the type of judgment shown by people and their leaders. Originally was opposed to the election of Roosevelt, but think we should all back him in the NRA. It is based on great idea that is so simple and logical that I believe it is bound to succeed. "When the time comes to administer legislation banks I think we should be very cautious, especially we approach anything like federal guarantee of bank deposits. What is the incentive to run good bank if you have to help pay the losses of the poor one?" same calmness that has characterized the last two years has been quality in evidence throughout George H. Buecking's life. His childhood he spent in an unspectacular manner at the family home, 3214 Garner avenue. In the neighborhood large crowd of boys spent their time out of school climbing the northeast bluffs overlooking the river or playing ball at Budd or Burge Park. Skating in the winter was excitement enough for anybody. HIT BY FINANCIAL REVERSES.

George Buecking sr., had been pioneer in his Driving covered wagon he had sold groceries for wholesale house, traveling all over Kansas and Colorado. Later he was known to Kansas City as the proprietor of the Buecking Vinegar and Cider Company It was that business that grew into the Buecking Grocery Company at 1019 Walnut street. Fine. quality groceries and imported wines were the wares of the Buecking Grocery It was high class place, but even in his childhood George Buecking jr., had no desire to follow his father's lead Then, the panic 1893, the business failed. From that time the family financial reverses were pointing to the day when young George Buecking would have to walk out of the class at Central high school and hunt for a job He had no objections. There was no chosen profession to cause him to mourn the loss of an education. He had liked to draw and impulse took him to the office of a leading architect. "Draw for me," said the man behind the eyeglasses. And George drew glance at the picture and the man said, "Come back Monday.' DECIDED TO GO INTO BANK. George went home. He walked out on the bluff overlooking the river. Hours passed. Why had he let himself in for work in an architect's of. fice? Years must pass before he could be anything but a second rate draftsman. The next day he walked into the Fidelity Trust and got job as office boy. He was 13 years old Years and he grew with the bank. He became bookkeeper and settled down to rows of figures. William Comstock secretary of the bank, took liking to him and he became teller. He was advanced and placed in charge of the women's department with more than 3,000 customers. Sal-

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by Views A.J.MARTIN

If publicity can do the job, NRA will eventually prevail, for it getting more than anything since the World War.

Grand jury witnesses in Kansas City are afraid to testify for fear of being killed for testifying as to gambling and racketeering.

Following pleasant Spanish custom, the opponents of Ex-President Machado, of Cuba, are passing the hat to raise money with which to finance his assassination.

It seems that all the assets of the Pioneer Trust Company of Kansas City are to be pledged the R. F for funds enough to pay 24 per cent of the depositors' claims.

The American Bar Association passes its annual resolution to "clean house"-done on the theory that there are too many lawyers who are occupied in steering clients through crime.

The Chicago Journal of Commerce says the time will come when the air We breathe in our houses will be "conditioned" and as free from dirt as they are from flies and mosquitos.

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A PIONEER TRUST WAIT

LEGAL TAPE TO BE CUT BEFORE DEPOSITORS ARE PAID.

The Preliminaries Probably will Postpone the Disbursement Until Early Summer, Despite the RFC Loan.

Depositors in the closed Pioneer Trust Company scarcely can expect a disbursement before early summer, taking into account legal and routine procedure still ahead of the bank's receiver, Cornelius Roach. To supply funds for the initial disbursement, a Reconstruction Finance Corporation loan of $643,000 now has circuit court sanction, but there are legal barriers to be hurdled before the funds are prorated among the unfortunate depositors. There still are eight more days in the period the law permits for the filing of objections to listed claims against the bank. After April the receiver must reject or approve the listed claims, which aggregate 7,000, mostly from depositors. Notice of adverse action must be served on or before May The receiver also must file with Judge James R. Page list of claims in which priority is asserted over the common creditors. Judge Page will hold hearing on the questions of priority before authorizing disbursement to depositors and common creditors. The amount required to satisfy claims of preferred creditors has to be known with some definiteness before the size of the common pot can be measured. A 30 per cent dividend has been used in discussion, this being based on tentative estimate of the preference claims. The collateral to support the RFC loan has been checked into the Kansas City agency except in some instances of real estate and mortgages. The bank had come to own certain parcels of real estate, including the old Kansas City Journal building on East Eighth street, which the late W. S. Dickey did not buy when he acquired that newspaper.

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NOW HIS JOB HAS GONE

J. z. MILLER, JR., HAD WORKED HARD FOR NO SALARY.

With the Abolishment of Deposit Liquidation Committee, Former Reserve Governor Still Buys Railways Pass.

J. z. Miller. jr., former governor of the Tenth District Federal Reserve Bank, was out of job again last night, when the work of the deposit liquidation committee closed For six months the ex-banker has been happy. for while his liquidation aid job paid no salary, it offered plenty of work and knotty problems. Mr. Miller would be at his new office at 7:50 o'clock in the morning, and when there was not night work, the former reserve governor would be busy until 5:45 o'clock, when he would take street car home.

SATISFIED WITH JOB.

Mr. Miller, who chafes at inactivity, confessed he had not been so content since the years when he was organizing the federal reserve bank in this district and developing the personnel that has continued to function in the dozen years since he left the bank. The deposit liquidation work, which Mr. Miller directed in this district, is bringing RFC loans to depositors in 149 closed banks in five states. The work. that of cutting red tape and expediting bank liquidation. was limited to six months. Future loan applications from bank receivers will be direct to the RFC loan agency in the Federal Reserve Bank building here. Applications for loans to some additional twenty-five bank receivers in Nebraska are expected to reach Kansas City this week. It is the record of the office directed by Mr. Miller that not a single application that passed through his office was returned from the RFC for correction. As a result of the efforts, RFC funds have been received, or in process of reaching depositors, in fifty-one closed banks in Kansas, five institutions in Missouri, thirty-six in Nebraska, fifty-two in Oklahoma and five in Wyoming. There were no closed banks in New Mexico, nor any in Colorado eligible for this type of RFC aid.

AIDED PIONEER RECEIVER.

A Kansas City loan to which the committee lent its aid was for $643,000 to the receiver of the Pioneer Trust Company, which failed fifteen months ago. It will be early summer at least before this money probably finds its way to the unlucky depositors as the state machinery for the distribution still has two or three legal hurdles to make. The RFC loans, which bear 4 per cent interest, are made to bank receivers to encourage an orderly liqui- dation of bank assets over a period of from three to five years. The committee chairmanship was held originally by W. T. Kemper, but as his vice-chairman Mr. Miller assumed the burden of the work. Mr. Kemper resigned the post to which he originally was drafted so that the chairmanship honor finally would fall upon his associate. Miller. jr., has been an interesting banker figure in Kansas City for quarter century. His six months' job not only carried no salary, but there was not even allow- ance for Mr. Miller's street car fare to and from his apartments. But that would only have been a participation in weekly street car and bus pass which Mr. Miller buys regularly for $1.60. He still regards a motor car as an extravagance.