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COLONY STATE BANK CLOSED (Continued from Page One) But out of the crash of the oldest financial institution in the town and the first failure of record of this sort here, emerged that fine rural spirit of neighborlinessthere were no words of condemnation for the president of the bank, Mr. H. Skourup. He has long been controlling factor and head of the institution. His record is as clean as hounds tooth. As farmer and dairyman, as a citizen and town booster, he has always been successful. The readjustment period; following the war, coupled with the death of Wm. Bishop, the cashier, left the bank with an uphill grade. Mr. Skourup did all that he could possibly do to straighten out its And while there will be much talk of management, it is well to record here and now that when the little white card with its monoline went into the window all of Mr. Skourup' still had their deposits in the bank intact. P. V. Miller, deputy examinen in charge for the State of Kansas, said this morning. so far as have examined the records, and have able to check accounts. there is no evidence of fraud, no sign of any crooked work. nothing another case frozen assets, the congealment of which caused the closing of the institution. Asked relative to the standing of the bank today. he gave the following figures: deposits loans and discounts $95,000.00; assets The deposits increased something like $900 the last day of operation. Among the institutions that will be are many of the business houses in the city. The Wells Produce Co., feels the crimp of the closing. The Smith garage seems to have had their foot caught in the tangle of affairs. Others will be more or less inconvenienced in establishing credit and new relations financially. The Colony schools seem to be about hard rapped as anyone. When Russel Hand was treasurer, he also director in the Colony State Bank. Quite naturally he used the bank as depository for the school funds. Shortly before the annual meeting he moved to Indiana. He did not resign. An audit of his accounts showed everything regular. But before the newly elected treasurer, Mr. A. Wallar, would assume the duties of his office. he wanted depository bond from both banks handling school monies. not secured this when the crash came. So the school fund will have something like tied up and the teachers will have to set on the long end of unpaid warrants. unless some financial wizard finances the district in some other manner The bank was used as depository by lodges but their have what the Methodist District choicely term "deep pockets," so they will not be The hay men generally used this bank in their operations and some of them may be Listed in the assets is paper that seem to have been the cause of closing. At a meeting of the directors Monday night, with the deputy examiner present, an effort was made to consolidate the State Bank with the National Bank. To make this possible the directors of the State Bank would have had to stand an assessment to guarantee some of the paper. This Mr. Skourup and the balance the directorate, except R. M. O'Harra, it is asserted. declined point blank to do. So there was nothing left for the examiner to do except close the doors of the State Bank and liquid ate the institution. He came to consolidate and remained to close. The Colony State Bank is member of the State Guaranty Fund, an organization that is itself something like four million dollars short -largely as a matter of mismanagement. And recent supreme court ruling has practically voided the law. At least, it is not in shape to relieve any depositors of failed banks in Kansas. There had been no run on the bank. none talked of and many of the larger customers did not have knowledge that the bank was on the verge of closing. Anything Goes Now. "It took nearly ten years to learn that couldn't write stories. suppose you gave it up then? "No. By that time had reputation established and didn't have -Columbia Jester. A Busy Woman. "Have, wondered about your husband's past "Dear me, no! have all can do taking care of his present and worrying about his Advertiser.
