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GRAND JURY GIVEN CASE FOR ACTION (Continued from First Page.) they questioned John Quirk about them, but he replied that "everything was alright as he personally knew that Mr. Ernst had nearly $100,000 in trust bonds in an Indianapolis bank with which to cover his account." Quirk, being cashier and son of the bank's president, naturally was not questioned much by the bank's employes, Mr. Dimond said. The accounts with Ernst were allowed to run on untff they got well past the $100,000 mark, Mr. Dimond said. In addition to these, John Quirk was quoted by 'Mr. Dimond as confessing to the directors that his father had authorized bank loans of $9,000 to E. E. Quirk, a brother, and of $25,000 to Frank Quirk, another brother, without security. Mr. Dimond also quoted John Quirk as confessing that he had lost large sums of money in grain gambling and that he had sold a number of the bank's Liberty bonds in order to obtain cash to make good his losses. Bonds left with the bank by depositors also were disposed of, Mr. Dimond said. Albert A. Post, a bookkeeper, who had been with the bank for many years, revealed the alleged irregularities of the two Quirks. He became suspicious over the repeated transactions with Ernst for which there was no security, and called them to the attention of one of the bank's officers. Shock of Town. The closing of the bank under crder of S. E. Whitlock, state bank examiner, at the request of the board of directors, caused consternation in Arcola. The bank did 75 per cent of that town's banking business and much of the business of nearby towns. In a town of 7,000 it had 1,400 depositors and was depository for the county treasury, the school board and numerous other municipal funds, bes sides handling the money of most of the business houses. Had it failed, it would have carried virtually the entire town, but it was k officially announced today that the y bank would reopen within a week 3, and that no depositor would lose t a cent. This announcement relieved a tense situation in Arcola, for it had been feared that many business houses would be ruined through losses which might result from the Irregularities blamed on the two S Quirks. Business virtually stopped yesterday when the notice of the bank's closing was posted. John Quirk has formally turned h over to the bank his 120-acre farm e and his interest in another. This s property is said to be worth $90.t 000. M. T. Quirk has assigned his $75,000 residence property and 11 Ernst has agreed to turn over proparty worth $60,000. The balance will be made up personally by the bank's directors, it was announced by T. E. Lyons, vice president, who is the son of Tom Lyons, the man who helped M. T. Quirk found the bank. The Bankers' association of Douglas county today voted to give any help possible to the Arcola bank
