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MERGEN A BROEKER FRIEND.
Operations of Salina and Kansas City Banker Are Recalled.
TOPEKA BUREAU THE KANSAS CITY STAR (By a Staff Correspondent.)
TOPEKA, Nov. 5.—The Union National Bank at Beloit is the first national bank to be closed in Kansas in nine or ten years, according to the records of the Kansas banking department. Leo Mergen was the cashier and active manager. He also was the owner of the Scottsville State Bank, closed by the state department about two weeks ago.
The downfall of Leo Mergen may be traced directly to the financial operations of Felix Broeker of Salina and Kansas City. Broeker wrecked two banks and two insurance companies at Salina through his financial manipulations. Mergen was one of his closest financial friends and handled some of the paper circulated by Broeker and F. J. Lefferdink, the fugitive cashier of the Traders State Bank, Salina.
Mergen was accused of taking large amounts of the Broeker paper, selling it through his own bank and keeping part of it himself. Mergen was forced to restore part of the money involved in the bank and insurance deals engineered by Broeker. It has been asserted by the Kansas bank and insurance departments that ever since his connection with the Broeker interests his bank has been under suspicion.
For many years Mergen was regarded as one of the shrewdest and safest bank managers in Kansas. Bankers expressed great surprise at his connection with Broeker when the crash of the Salina institutions was revealed.
CLOSE BANK AT BARTLETT, KAS.
"Excess Loans, Bad Paper" Behind Labette County Failure.
TOPEKA, Nov. 5.—The Citizens State Bank of Bartlett, Labette County, was closed today by order of the state banking department, Lewis Wilson, assistant state bank commissioner, reported. "Excess loans and bad paper" were the reasons given by Mr. Wilson. The bank had out loans aggregating $165,000, according to the latest statement, and $82,000 deposits; $10,000 surplus and $10,000 capital stock. E. H. Becker, a state bank examiner, temporarily is in charge.
The bank is under protection of the state guaranty fund. It was organized just twenty years ago. R. M. Noble, president of the bank, is a state representative from Labette County. He now is serving his seventh consecutive term and is the oldest member in point of service in the lower house.
MAY DUPLICATE GORGAS PLANT.
New Proposal for Disposition of Muscle Shoals Is Submitted.
WASHINGTON, Nov. 5.—Outlines of a new proposal for disposition of the Muscle Shoals project, contemplating a duplication of the Gorgas steam plant, recently sold to the Alabama Power Company, and its inclusion in the properties, was presented to President Coolidge today by Representative Madden, chairman of the house appropriations committee.
Under the plan outlined, the government would authorize to build a new plant at dams fifteen, sixteen and seventeen, about ten miles southwest of Gorgas. A new power transmission line from the plant to Muscle Shoals proper also would be authorized. Mr. Madden expressed the belief that a revised offer based on these proposals could be obtained from Henry Ford.
