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BANKER HELD ALLEGAN CASE
Barker Accused of Misappropriation of Funds in Failure There
GRAND RAPIDS, Nov. 10.Basil W. Barker, 42, former cashier of the First National Bank of Allegan, pleaded not guilty before Federal Judge Fred M. Raymond in U. S. district court late Wednesday when arraigned on charges of abstraction and misappropriation of more than $21,000 of funds. Barker was released on $5,000 bail and his trial was set for the next term of court which opens Dec. 6. The specific charge is juggling spurious notes and recording note of no value on the books of the bank as a cash item, acts which allegedly have caused loss to depositors of possibly $204,295.45.
Joseph H. Weiden, Jr., of Grand Rapids and Mae McKennon of Allegan swore to the bonds. Barker returned to Allegan, where he makes his home with his wife and two children. When the bank suspended business and Barker was dismissed, he assisted the examiners for the federal treasury department in straightening out the tangle and is alleged to have even signed statements admitting his actions, but at the same time asserted he had done nothing wrong and had nothing to hide. Barker asserted he considered a loan as legitimate when he accepted as security for it mortgages on property in Minnesota, Wisconsinfi Georgia and Idaho, all points beyond the legal limit of Allegan. What money he received on the notes he used in payment on notes he had personally given the bank in return for parcels of the bank's stock. Barker entered the employ of the bank as a clerk in 1918 and four years later, with the view of being elected cashier, purchased the stock, but the notes he tendered were not due until 1930. Before becoming identified with the bank, he spent six years with the American Railway Express company at Benton Harbor and Allegan and three years with the Pere Marquette railroad. He has been a leader in social affairs in Allegan. Twelve counts, according to the indictments prepared by U. S. Atty. Edward J. Bowman against Barker, charge misapplication and fraudulently paying to himself $4,000 which, it is said, he unlawfully discounted on a note of J. R. McKain on July 29, 1925. Similar transactions are alleged to have been made on various dates with Barker pocketing the money. The First National bank was es tablished in 1870 and at times listed deposits of $1,000,000 a year The bank building burned last January and later that month. while business was being transacted from a hardware store, bank examiners suspected the condition of the institution and a meeting was called in Chicago. Following a voluntary pledge of $40,000 to protect county funds, it was permitted to continue operations. Myron B. Moore, who succeeded Barker as cashier, refused to give R personal bond for the $40,000 county money and the supervisors withdrew the county account. Individual depositors then withdrew their savings and merchants began refusing checks on the bank, which was forced to close. The total amount of the failure is said to be in the neighborhood of $600,000. Depositors will receive 50 to 60 cents on the dollar it is believed. The board of supervisors last June demanded a state grand jury probe of the bank's affairs.
