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Bill Is Introduced Asking Immediate Funds For Inquiry Governor Green Backing MoveTo Secure Thorough ment Audit of Smith's Banking Transactions Once. Feb. for furthclosed bank fund deinvestigation Fred Smith, former state posits by banks, were under superintendent with backing of Governor way today Green. General M. Sharpe's Attorney charges yesterday that least public funds would be lost in three banks through Smith's policies, and the former's for audit. brought quick action from the legislature. Carrying an emergency clause which would make effective bill powers the and $5,000 attorney general for that annual introduced both houses by the Passage of the bill. and action by the provide funds put Sharpe in make the proposed audit soon legislative authorization given. The attorney audit of the closed general asked Farmers State Bank of Platte, owned by Smith's relatives. which reported $1,000,000 closed bank more than funds would be lost to depositors. Wants Department Audit The other banks in which Smith of depositing large amounts accused closed bank funds the Hoven State Bank and the Kimball State Bank, both suspended. Governor Green said he would support Sharpe's request for an audit the bank" Platte. The executive would an audit also said approve the State Banking department order that Ruden Bryant, who placed Smith banking superintendent, could "start with clean state." funds, the bill preBesides providing sonted yesterday set up machinery for investigations by the attorney eral when requested by either both legislative houses. Under the the general could all records of state subpoena and compel testimony Mr. who informed the state court before his month that closed bank deosits will lost, did comment today on Sharpe's latest charges. Legislative ing committees meetings Sharpe's report was filed but made statements the attorney for "corrective Jegisla- New Measures Up A few hours after Sharpe's report was filed, however, three banking measures introduced the senate. One would prevent deposit of large surhs closed bank money in single deposisuch Smith was accused of making the Farmers State Bank Platte. Introduced scnate banking mittee, the bill would limit the amount closed bank funds which the superintendent of banks deposit any one institution the combined capital and surplus of the depository. Frei Wagner presented bill limit loans by state banks to any dividual corporation to per the bank's capital and surplus. The limit per cent. other was bill permit banks to pledge their assets to protect school funds. banking bill passed by the senate Tuesday, upon unfavorably yesterday by the house banking committee. was the make wilful and malicious derogatory banks or trust companies felony.
