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CAPPS CASE PROBE PONCA ENDED INVESTIGATORS ED ELSEWHERE; CHECK RECORDS FOR SHORTAGE Conviction of Frank Capps, former assistant cashier of the First National bank of making false entries, apparently closes the investigation of the department of justice here, was learned Saturday. Word has been received by Frank M. Overstreet, conservator in charge, that may put away records being checked. It has also been learned that W. S. Rich, department justice agent, who made the investigation here, has been sent to California. Withdrawal of the department is further indication that there basis for the rumor that Capps may have had confederate. Capps is now in Leavenworth where he is serving five-year term in the federal penitentiary. The total shortage that he admits exists in his department amounts to $26,000. He pleaded guilty to making false entries and admits using some $6,000 of the bank's money but he has explained what went with the balance the money. He did deny taking it. Need Proof For Bond Money The bank was protected by bond of $15,000. It will be necessary to show proof that Capps took this amount of money order to collect. Accountants are beginning a further check of the records in order to trace all shortages. It is believed, with the beginning that has been made, that they will have no great difficulty. As soon as the evidence is collected, claim will be filed with the bonding company. No further word has been received from the Fidelity National bank at Kansas City, open now on five per cent restricted basis. Since the closing efforts have been made to open the bank so that depositors might be paid in full. The bank served as depository for many small banks, nearly 500, which the First National here was one of the largest. It carried some $78,000 when the bank closed. is known that the Fidelity paid out because of heavy some $16,000,000 its $36,000,000 deposits before closed. This fact has made somewhat difficult to effect a reorganization. "New" Bank in Operation The local bank has been open for several weeks on five per cent restricted basis. Actually an old and new bank are being operated. The old bank is being liquidated while the new bank transacting general banking business with the exception that no loans are being made. Five per cent of the old deposits have been set over into new accounts in the new bank and new deposits are received on hundred per cent basis. Efforts to reorganize the old bank or to effect an organization of new one still continuing with no new developments.
