Article Text
TOPEKA BANK SHUTS DOOR LARGE LOANS TO ONE MAN. C. J. Devlin, One of the Wealthiest Men in Kansas City, Involved. Topeka, Kan., July 3.-The First National Bank of Topeka, of which C. J. Devlin is the principal stockholder, failed to open its doors to-day. The government officials are making an examination of the bank's affairs, but gave out no statement to-day. On the door of the bank appeared this notice: This bank is closed by orders. The Controller of the Currency has been communicated with and will send an examiner, who will make a statement. W. H. ROSSINGTON, Vice-President. No definite statement was obtainable to-day regarding the condition of the First National Bank, controlled by Charles J. Devlin, a wealthy coal mine owner, which closed its doors this morning. Colonel W. H. Rossington, vice-president of the bank. locked the institution's books in the vault to await the arrival of J. T. Bradley, national bank examiner, whom the Controller had appointed receiver of the failed bank. Colonel Rossington would only say: "The bank's trouble has not been caused by dishonesty on the part of any one, but by lending too largely to one borrower. There has been no stealing." The borrower, it is said, is Mr. Devlin, and the bank is said to hold the capitalist's paper to the amount of $1,000,000. Mr. Devlin, whose sudden illness brought about the tangle in the big coal minrailroad valued, at close to $7,000,000. is still under care ing and properties, it the is estimated, from of a physician, and no statement can be obtained him. All that came from his home to-day was that coal had over in life insurance the bank stricken nearly $700,000 operator turned and about to the the same amount in Topeka real estate. Business associates of Mr. Devlin expressed their opinion that if properly handled this would allow the bank to pay out. Aside from the temporary flurry that the failure of the First National Bank caused on the other banks of the city, the most interesting phase of the situation was the statement of the State Treasurer, T. T. Kelly, that the bank held $547,000 of the State's funds. Mr. Devlin was one of the Mr. Kelly's bondsmen. Following the announcement of the failure, a lively but not disastrous run was started on the Central National Bank. Other runs of a lesser degree were started on the State Savings Bank, the Bank of Topeka and on the Merchants' National Bank. At none of these banks, however, was the demand for withdrawals great. Following the closing of the First National Bank there was a slight run on the Central National Bank, in which Mr. Devlin also is a large stockholder, and there were small runs later in the day on the Merchants' National Bank, the Bank of Topeka and the State Savings Bank. At each of these institutions all depositors who requested their money were paid and confidence was expressed in the ability to meet any demands of the depositors. Cash to the amount of $300,000 was deposited in the Central National to offset the run. J. W. Gleed stated that $700,000 worth of real estate -$300,000 unencumbered Topeka property, the other $400,000 in coal lands in Southeastern Kansas-had been turned in by Mr. Devlin, together with $700,000 life insurance. Mr. Gleed asserted that the Central National was in a perfectly solvent condition. He further stated that nothing more would be done with the Missouri organization of the Devlin property until after the report of the Controller here. In the First National Bank the State of Kansas has over $500,000 in deposits, the city of Topeka. $39,000, and the county of Shawnee about $30,000. Mr. Devlin, who has been under the care of a physician, was unable to leave his home to-day. He was up and around, however. He was in the best of spirits, and in reply to questions, said that he expected to be able to go to the bank in another week.
