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Deflex the Banking Law. TOPEKA, Kan., June 32. - -Receiver A. G. Seaman, of the defunct Citizens' bank, of Mound City, is the first receiver to defy the new banking law of Kansas, and he will likely lose his job as a result of it. Mr. Seaman refused to comply with the demand of the bank commissioner for a statement showing the condition of the institution.
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RECEIVER SEAMAN OUSTED. His Management of Affairs of Defanct Citizens' Bank Not Satisfactory. Topeka, Kas., June 22.-(Special.) Judge Simons, of the Bourbon-Linn county district court, to-day removed G. A. Seaman as receiver of the defunct Citizens' bank of Mound City, and appointed James Ashbaugh to succeed him. James Snoddy was also removed as attorney, and the court appointed J. W. Poor to the vacancy. The removal of Seaman and Snoddy was due to an examination of Seaman's accounts by Examiner Waterman, of the state banking department.
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HE DEFIES NEW BANKRUPTCY LAW Kansas Man Who is Liable to Lose His Job Soon. Topeka, Kan., June 21.-Receiver A. G. Reaman, of the defunct Citizens' bank, of Mount City, is the first receiver to defy the new banking law of Kansas, and he will likely lose his job as a result of it. The new law compels receivers of defunct state banks to file reports with the banking department, showing the condition of the institutions, the same as active banks do. After the passage of the law, Breidenthal, the bank commissioner, issued a call for statements of the defunct Citizens' bank of Mount City, but, instead, sent the commissioner a letter, saying the law was invalid and refusing to comply. This aroused the suspicion of Breidenthal and he immediately sent Examiner Waterman to Mound City to examine the receiver's books. Mr. Waterman completed the examination and returned today. According to his report made to the court and also to the bank commissioner, the receiver has made a most bungling official. The examiner recommends that Reaman be discharged as receiver and that a large amount of alleged expense created by him be disallowed. The bank failed three years ago. It had a capital of $39,900. So far, only 15 per cent in dividends has been declared. The management of affairs by the receiver, Waterman, in his report, says, has driven depositors to the asylum and to the grave. He adds that the bank depositors have been robbed. He charges the receiver with gross incompetency. declares that he has repeatedly violated the orders of the court and has been absolutely indifferent to the welfare of the depositors. It is asserted that he permitted over fifty notes to become outlawed and that his expenses in collecting the money for the last 5 per cent dividend and distributing the $5,490 to the depositors, aggregated $8,863. He refused to pay the examiner's fee, claiming that the law providing for state inspection of insolvent banks was invalid. While making the investigation Waterman had a set-to with James Snoddy, of Pleasanton, attorney for the receiver. Snoddy ridiculed the idea of a bank commissioner having the power to inspect the condition of an institution in the hands of a court and asked Waterman what such a proceeding meant. The examiner replied that the provision was inserted in the law to prevent receivers and their attorneys from stealing money which should go to the unfortunate depositors. One word brought on another, when Snoddy called Waterman about nine different kinds of a liar. Waterman leaped forward and grabbed Snoddy by his whiskers, told him to either swallow the statement or his front teenth. Snoddy concluded that the statement would be the more easily digested (he not being a human ostrich) SO he withdrew his remarks. Judge Simons, of that district, was very much dissatisfied over the method in which the receiver has been conducting affairs, as reported by the examiner, and if upon examination he finds that the report is correct he has given it out that he will remove Reamon as receiver. The mattér will come up early this week. Recently a woman in New York City, who went into a store to buy a wellknown medicine, was persuaded to take something "just as good." She took It and died from the effects of it. A suit for damages is pending. $22.50 to California, June 22, 30, July 1, : 3, via Santa Fe route.
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Judge Simons, of the Bourbon-Linn county district court, today removed G. A. Seaman as receiver of the defunct Citizens' bank of Mound City, and appointed James Ashbaugh to succeed him. James Snoddy was also removed as attorney, and the court appointed J. W. Poor to the vacancy. The removal of Seaman and Snoddy was due to an examination of Seaman's accounts by Examiner Waterman, of the state banking department.
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FOR MISMANAGEMENT. Receiver Seaman of a Kansas Bank Displaced for Bad Actions. TOPERA, Kan., June 23. -James Ashbaugh has been appointed receiver and J. W. Poor attorney for the Citizens' bank of Mound City to fill the vacancies caused by the removal of G. A. Seaman and James Snoddy. - Seaman defied the state banking law by refusing to file a statement showing the condition of the bank of which he had charge. He also charged $8,864 for collecting and paying a dividend of $5,000. Bank Examiner Watterman said that he had never before found a bank in which a receiver had been guilty of such mismanagement and carelessness as was developed by the examination. Among other things Seaman permitted torty notes to become outlawed.
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Defies the Banking Law. TOPEKA, Kan., June 21.-Receiver A. G. Seaman, of the defunct Citizens' bank, of Mound City, is the first receiver to defy the new banking law of Kansas, and he will likely lose his job as a result of it. Mr. Seaman refused to comply with the demand of the bank commissioner for a statement showing the condition of the institution.
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Bank Receiver Removed. TOPEKA, Kan., June 28.-The bank commissioner was notified that Judge Simons had removed A. G. Seaman, receiver of the Citizens' bank of Mound City, and appointed James Ashbaugh in his stead. John W. Poor has been appointed attorney for the new receiver, in place of James D. Snoddy. Mismanagement is the cause assigned for the removal. A dividend of $5,000 was recently made at a cost of $8,000 to the depositors.
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BURST BANKS MUST PAY. State Will Collect Fees the Same as From Sound Institutions. Banks in the hands of receivers cannot evade the payment of fees for an examination by the bank commissioner. James Snoddy who was removed as attorney for the Citizens' bank of Mound City advised the receiver who has also been removed to not pay for the examination of the bank. The Bank of Ness City and the Mound City bank in the hands of receivers also attempted to avoid payment. Commissioner Breidenthal asked for an opinion from the attorney general. That official notified the commissioner as follows: "It is evident that a bank in the hands of a receiver is a corporation doing business under its charter which has not been revoked. In fact if the charter of the bank had been revoked a receiver could not be appointed to wind up its business, and a charter will only be revoked when the business is wound up by the receiver. Then, for all intents and purposes under the law it is a bank in every sense of the word and is liable to pay the same fee for an examination as any other state bank in Kansas. "It is not to be presumed that the state of Kansas will make an examination of these banks in the hands of receivers gratuitously, but the examination is made under law for the benefit of the depositors and for the further purpose of keeping the court who appointed the receiver thoroughly posted in reference to the financial condition of the institution and the manner in which the receiver is performing his duty."