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Depositors of the Wathena Bank Must Lose Heavily. Frank Harpster's Defalcation Will Reach About $25,000. INSURANCE OF $12,000 Cashier Had All Policies Made Payable to Wife. Clause May Invalidate $5,000 on Account of Suicide. Wathena, Kas, Jan. 18.-The sensational suicide of J. F. Harpster, cashier of the Wathena State bank, and one of the brightest and most promising young business men of Doniphan county, and the subsequent closing of his bank by State Bank Commissioner John W. Breidenthal because of a heavy shortage in the funds of the bank, forms one of the most exciting episodes in the memory of Kansas people since the sensational Cross bank failure and suicide of its president at Emporia a few years ago, and is today the theme of discussion for an excited crowd of people that throng the streets of this peaceful Kansas town. As the examination of the bank's financial condition, which was commenced by Commissioner Breidenthal twenty-four hours before the suicide of the cashier, continues, the depositors of the bank, who have flocked to the city in scores today in answer to the intelligence of the bank's failure, grow hourly more excited. Up to this time it is impossible to learn what the exact amount of the shortage will be, but it is confidently expected to reach $25,000. Bank Commissioner Breidenthal, when seen by a reporter, stated that he could not yet make an intelligent estimate of the shortage, but despairingly shook his head and intimated that the condition could hardly be much worse. It now develops the cashier was Interested in Colorado mining property and had invested large sums of the bank's funds in the enterprise. He owned 13,000 shares and was principal stockholder in the Black Mountain Milling and Mining company of Cripple Creek. He had been dealing in mining stocks for the past three years, and the period of his defalcation extends over this time. He successfully covered the shortage in the bank's funds by repeated false entries, and it was not until last September that the state bank examiner detected any evidence of crookedness in the work of the cashier. Even then the extent of his withdrawals from the bank was not suspected, and the bank commissioner confined his efforts to persistent work on the cashier to get him to straighten up the bank's affairs. But when Mr. Breidenthal arrived here Tuesday and commenced his investigation, a few hours' work was sufficient to reveal the condition of the bank's finances, and when he called in the cashier and confronted him with the indisputable evidence of his fraud. Harpster, rather than face the accusations, coolly walked three doors to the undertaking establishment, and laying his coat across the top of a casket, deliberately ended his life. The bullet, which was fired from a 28-calibre Smith & Wesson revolver, entered the right temple and passed entirely through his head, coming out just over the left ear. His young wife, when notified, at her home. of the tragic death of her husband by his own hand, fainted and is almost completely prostrated. None of his relatives nor any of his immediate friends were aware of his mining speculations and the recitation of the dead man's dishonest work came as a complete surprise and shock to them. All of the immediate members of the family of the deceased are here today with the exception of a brother, Howard Harpster, who resides at Kansas City and is chief stockholder in the Kansas City steel works. The funeral arrangements have not been completed,but the burial will probably be held at this place Saturday. No man in this community was more fully possessed of the entire confidence of the people and none was more trusted and revered. He was a member of four lodges, the Odd Fellows, Masons, Knights of Pythias and Fraternal Aid. The Masons will have charge of the funeral services. Life insurance to the amount of $12,000 was carried by the dead man, all of the policies being made out in favor of his wife. It it said that $5,000 of the insurance can not be collected owing to a clause in the policy annulling it in the event of suicide of the insured. Mr. Harpster was also one of the owners and directors of the Wathena Chautauqua association and was also treasurer for the association. It is not known how his affairs with the Chautauqua company stand. He owned forty-nine of the seventyone shares of the wrecked bank, and this fact will tend greatly to cut down the amount that will be realized from the stockholders' double liability law, which applies in such cases. The capital stock of the bank was $7,000 and the total deposits amounted to about $30,000, according to the bank's last published statement, but according to Mr. Breidenthal there is a strong probability that this statement was far from correct and that the individual deposits will greatly exceed this sum. Public opinion here is that the depositors will not receive more than from 20 to 40 cents on the dollar, but this can not be told definitely for several days. A receiver will be appointed for the failed bank in a few days, awaiting the action of the depositors, who will endeavor to agree upon some suitable man.
