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COMPTROLLER OF THE CURRENCY APPOINTS ATTORNEY FOR RECEIVER The Comptroller of the Currency at Washington has appointed Hon. Miles Frederick Gilbert of this city attorney for the receiver of the First National Bank of Johnsten City, III., which is in liquidation.
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Amount of Shortage of Johnston City, III., Bank of Which He is Cashier, $148,862. JUDGE HARKER ADVANCES $75,000 OF THE LOSS Former Circuit Judge Now Dean Law Dept. University ))]. Sacrifices Fortune. Two arrests are expected today under Federal indictments virtually charging that the First National Bank of Johnston City, III., was looted of $148,862 by its eachier Oliver A. Harker, Jr., abetted by H. J. Froelich, a Chicago capitalist, and James J. West, a Chicago broker Harker has already entered appearance and given $15,000 bonds, and warrants have been issued for Wes: and Froelich. O. A. Harker Jr., is on of Judge O. A. Harker, who formerly resided at Carbondale and who was for several terms Circuit Judge of the cir cuit in which Cairo belongs. The grand jury returned two indictments Nov. 13, in the United States District Court in East St Louis, the 14 counts of which charg embezzlement and conspiracy to de fraud. The indictments were kept secret until caplases for the accused could be issued. The bank has been in the hand of a receiver since the latter part 01 August. Oliver A. Harker Sr., father of the cashier, is dean of the Law School of the University of Illinois and has ruined himself financially. according to a Federal official, to place $75,000 in the bank to cove his son's alleged defalcations. This money, together with some paper saved in the wreckage, will, it is be lieved, be sufficient to protect the bank's depositors and stockholders from loss. Believes Harker Was "the Goat.' A Government official said he be Heved young Harker had "been mad the goat," in an amazing series 0 operations which depleted the bank treasury, but all the defendant would be prosecuted impartially. H expected news of the arrest of Wes and Froelich at any moment. A Government examiner, Aug. 14 found the financial affairs of the bank hopelessly tangled. A re ceiver was appointed, and he report ed that he had discovered some startling irregularities. A specia investigator of the Department 0 Justice at Washington was put upon the case. The investigator reported tha Cashier Harker had been advancins loans on paper of concerns in which he was personally interested and of outside concerns which did not appear solvent. Among his own concerns are the Dixie Brick and Tile Co. of Puryear, Tenn., to which he lent $8823, and the St. Louis Chemical and Manufacturing Co., to which he lent $6869. Among the listed liabilities of the bank at the time of the receivership also were $62,250 worth of West and Froelich paper and $14,137 of Harker's personal baber. Harker, according to the report of the special investigator, vas made cashier of the bank in Jan ary 1913. A short time thereafter he
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INDICTED IN BANK THEFT CASE. Son of Illinois , niversity Dean Accused of $148,000 Lareeny. Sr. LOUIS. Nov. 26-O. A. Harker, Jr., cashier of the First National Bank of Johnston City, III., and two Chicagoans were indicted by the Federal Grand Jury in East St. Louis on November 13 on charges involving the embezzlement of $148,000 of the bank's funds, the Distriet Attorney announced to-day. Harker is a son of Prof. O. A. Harker. dean of the department of law at the University of Illinois in Urbana. The First National Bank of Johnston City closed its doors August 18 and a receiver was appointed by the United States District Judge. The bank has been able to reopen since.
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NATIONAL BANKS AND CAUSES OF THEIR FAILURE DOCUMENT ISSUED BY COMP. TROLLER OF CURRENCY SHOWS THIRTEEN INSTITUTIONS, BESIDES FIRST NATIONAL OF PENSACOLA, WENT TO WALL. The annual report of the comptroller of the currency to the third session of the sixty-third congress of the United States, issued December 7th. 1914, as document No. 1467, volume two, contains some interesting information concerning the failure of the First National and other banks banks during 1914. This report gives the name of the bank failing, the date of the appointment of receiver, which is the first act by the government after the failure of a bank, and also gives the causes for the failure as found by the government investigation. Below is given a list of the national banks that have failed during 1914, the date of appointment of receiver. and the cause assigned by the comptroller of the currency for the failure. Marion National Bank, Marion, Kansas, January, closed by run. First National Bank, Superior, Neb., January, fraudulent management. Barnesville National Bank, Barnesville, Minn., January, fraudulent management. First National Bank, Pensacola, Fla, January, injudicious banking. Americus National Bank, Americus, Ga., February, fraudulent management. First National Bank, Gallatin, Tenn., March, wrecked by assistant cashier. First National Bank, Wyatusing, Pa., March, depreciation of securities. First National Bank, London, Ky., April, wrecked by assistant cashier. First National Bank, Corning, Iowa, June, excessive loans to officers and directors. First National Bank, Johnson City, IIL, August, injudicious banking. First National Bank, Sutton, W. Va., August, defalcation of officers. American National Bank, Pensacola, Fla., September, closed by a run. United States National Bank, Centralia, Washington, September, defalcation of officers. First National Bank, West Elizabeth, Pa., October, injudicious banking. According to this report, the government recognizes thirty-two different causes for failures, some relating to defalcation, some for excessive loans to officers, some to fraudulent management. Others are listed as wrecked by the president, cashier, or some other officer, and some for other causes. It will be noted that in this report they do not charge fraud against either of the banks which failed in Pensacola, the comptroller's report accounting for the failure of the American National Bank, which re-opened shortly after it closed its doors, gives as the cause, "closed by a run," meaning a run of the depositors. In accounting for the failure of the First National Bank, the report attributes as the cause, "Injudiclous Banking," which is a criticism of judgment against the officers of the bank, rather than a suggestion of fraud or intentional wrong doing on their part.