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BAD PAPER CLOSES BANK RECEIVER TO BE ASKED FOR FARMERS AND MERCHANTS AT TONGANOXIE. No Irregularities, Deputy Bank Commissioner Says-Depositors Believe Large Part of "Slow" Loans Can Be Collected. TONGANOXIE, KAS., March 25.-Appointment of a local man as receiver of the Farmers' and Merchants' State Bank here, which was closed this morning, will be asked of Governor Ben S. Paulen tomorrow. Depositors of the bank met tonight and decided upon this action as the most feasible way of recovering on the large amount of "slow" and "bad" paper which is outstanding. A petition reciting the request was prepared, signed and will be forwarded to Governor Paulen tomorrow. The bank has deposits of $275,000 and loans totalling $265,000. Bad paper was the cause of the bank's failure, according to P. M. Reeves, deputy state bank commissioner, who has been in Tonganoxie two weeks investigating. There are no indications of any irregularities, Mr. Reeves said. The bank has a capital stock of $10,- 0, surplus, $14,000. Its officers are W. H. Newby, president; F. W. Lanahan, vice-president, and George H. Denholm, cashier.
