Article Text
CHURCH WAR REPORTED TO HAVE STARTED RUN ON CLOSED BANK Boycott Follows Action in Favoring Removal of Priest LANCASTER, Wis.βC. H. Basford, former president of the People's State bank which was closed last Saturday by the state banking commission, arrived here Tuesday to assist examiners in a check-up of the affairs of the institution. While officers were ascertaining the condition of bank assets, the search continued for J. Howard Pugh, cashier and Lester A. Clark, vice president, who have absconded. Warrants for their arrest have been sworn out, charging them with violation of the state banking laws. Banking officials at Madison declared that they do not believe that either Clark or Pugh made away with any of the funds of the Lancaster institution. In letters written before they left, the men are said to have intimated that there were irregularities in the affairs of the bank. "We cannot stand the gaff," they wrote, according to one official. Church Row Started Run The city of Lancaster is abuzz with rumors concerning the story back of the closing of the bank. The most persistent of these deals with a church row which has been brewing for many weeks. Andrew Zenz, a wealthy farmer near here, who is president of the bank, but who has not taken an active part in the institution's management, told a reporter Saturday that one of the prominent business men of the city wrote him a burning letter a few weeks ago and asked him as treasurer of St. Clement's Catholic church to take steps to oust the Rev. Gustav Kayser because of actions which he charged to the priest. Mr. Zenz said he turned the letter over to Bishop McGavick of the La Crosse diocese and that several days ago the priest announced his resignation to go to Chandler, Wis. Friends of the priest started a movement to have him retained and learning of the letter and Mr. Zenz's connections with it, started a boycott on the bank. Fifteen of the heaviest depositors withdrew their accounts and started a run which was in progress a week or ten days until the bank examiners closed the bank's doors, Mr. Zenz said. Dist. Atty. Clementson verified this story and declared that it was one of a number of unfortunate circumstances which combined to the bank's undoing.