d6e42ae7Full suspension, Books examined
Other: Receiver appointed; bank found insolvent due to cashier's self-dealing
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CASHIER ATTEMPTS SUICIDE BANK CLOSES DOOLS STOCKTON, May 25.-Following the attempted suicide of Louis Kahn, cashier of the Bank of Oakdale, at his home in Oakdale, Wedneaday, the bank closed It# doors this morning. The state bank commissioner has been sent for. Hundreds of depositors from miles around gathered in front of the bank before 9 o'clock this morning to begin a run on the bank at the hour of opening.
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SUSPENSION FOLLOWS CLOSELY THE SUICIDE OF CASHIER LOUIS KAHN. Gathered From Miles Depositors Around to Make Run on the Bank This Morning. STOCKTON, Cal., May 25.-Following the attempted suicide of Louis Kahn, cashier of the bank of Oakdale at his home at Oakdale Wednesday, the bank closed its doors this morning and the state bank commissioner was sent for. Hundreds of depositors from miles around gathered in front of the bank before 9 o'clock this morning to begin a run on the bank. At the hour of opening the temporary suspension of the bank was announced.
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ANOTHER BANK CLOSES DOORS (Scripps News Association.) STOCKTON, Cal., May 25.-Following an attempted suicide by Louis Kahn, cashier of the Bank of Oakdale at his home in Oakdale, Wednesday, the bank closed its doors this morning. The state bank commissioner was sent for. Hundreds of depositors from miles around gathered in front of the bank before 9 o'clock this morning to begin a run on the bank. At the hour of opening a temporary suspension of the bank was announced.
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Cashier Suicided, Bank Closed. Stockton, Cal., May 25.-Following the attempted suicide of Louis Kahn, cashier of the Bank of Oakdale Wednesday, the bank closed its doors this morning, and the state bank commissioner was sent for. Hundreds of depositors from miles around, gathered in front of the bank before 9 this morning to begin a run on the bank.
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OAKDALE BANK DOORS CLOSED Investigation by Directors Follows Mysterious Shooting of Kahn, the Cashier DEPOSITORS ASSEMBLE Persons Who Intrusted Savings to Institution Fear There Is Something Wrong STOCKTON, May .-The bank of Oakdale did not open its doors this morning and will not until the State bank examiners investigate its condition. Louis Kahn, the cashier and principal stockholder, who shot himself in a mysterious way in his bathroom yesterday, is still alive. After the shooting yesterday afternoon rumors to the effect that Kahn was financially embarrassed were ripe. Early this morning depositors began to arrive in town, many of them coming from as far away as Knights Ferry. Some thirty or more gathered in a line in front of the bank with the intention of withdrawing their money as soon as the institution's doors were opened. Shortly before 9 o'clock an employe of the bank posted a notice on the door stating that the bank had suspended business for five or six days. No reason was given. The depositors are very anxicus, and many of them have remained in Oakdale to await developments. The following are the directors of the bank: Thomas B. Dorsey of Oakdale, president; Louis Kahn of Oakdale, cashier; R. H. Bentley of Oakdale; Joseph H. Kahn, the son of the wounded man, assistant cashier; George J. Bentley of Modesto, E. A. Clifford of Knights Ferry, Samuel and Louis Frankenheimer of Stockton and Charles F. McCarthy. The bank had an authorized capital of $150,000 and its paid up capital was $42,682. Its deposits amounted to $110,000. It is reported in Oakdale that the First National Bank of Stockton will be the heaviest loser if there are any losses. It is said that Kahn carried life insur-
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Bentleys Interested. J. D. and R. H. Bentley, brothers of J. M. Bentley, of this place, are directors of the bank of Oakdale, Cal., which was forced to close its doors yesterday owing to the shortage of the cashier, Louis Kahn, who attempted suicide. The bank doors were closed to prevent a run being made on the institution. Both of the Bentleys have been stockholders in the bank for many years, it being a very old bank, and one of them will probably lose considerable money, as a result of the cashier's shortage.
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BANK CONTROLLED BY KAHN IS IN A SHAKY CONDITION State Commission Finds Suicide Loaned Money Indiscriminately to Firm of Which He was Member. The Board of Bank Commissioners has just finished an exhaustive inquiry into the affairs of the Bank of Oakdale, of which Louis Kahn, who committed suicide a few days ago, was president. It is found that the Institution's ability to pay its debts depends largely on the amount which may be collected from the firm of Heslacher & Kahn, of which the deceased was a member. It appears that the bank loaned large sums of money to the business house without adequate security. The loans partly secured amount to $110,749 11. A receiver will be appointed as soon as possible. The statement of resources and liabilities is as follows: Resources-Loans and discounts, $80,690 81: overdrafts, $134,506 75 real estate, $10,000; due from banks and bankers, $13,129 15: cash items, $198 75: money on hand. $1241 65; total resources, $240,567 15. Liabilities-Capital stock. $42,690; surplus and undivided profits, $69,150 16: due bankers, $30,618 19; due depositors, $73,066 26: borrowed money, $25,000; total liabilities, $240,567 15.
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LOANED HIMSELF $100,000. Cashier of California Bank Shoots Himself in Hour of Disgrace. Cashier Louis Kahn of the Bank of Oakdale, at Oakdale in the San Joaquin Valley, Cal., shot himself on May 24, and the directors closed the bank until the books and accounts could be investigated. This was completed last Saturday and less than $2000 was found in the suspended bank. Of $171,000 of bank's funds loaned on personal securities $100,000 was loaned to Cashier Louis Kahn on his personal note, believed to be absolutely worthless. The bulk of the grain represented by warehouse receipts hypothecated by Kahn is not in the warehouses represented by receipts. It is believed that this is a repetition of the Eppinger sensation. Kahn could easily make loans to himself, because he was the largest stockholder in the institution, and himself and his son, Joseph Kahn, constituted the Finance Committee of the Bank. There is no doubt but that Kahn attempted suicide. He has not been able at any time to discuss his financial affairs. He made one statement that the shooting was accidental, but that is all he has said. He is not expected to recover. Death of Kahn. A dispatch from Stockton, Cal., announced the death on Sunday of Cashier Kahn as a result of his self-inflicted gunshot wound. The depositors of the Bank of Oakdale will receive but 10 cents on the dollar. A few weeks ago Kahn borrowed $15,000 from the Western National Bank of San Francisco on his note, and his sureties have attached all of Kahn's property they could find. About half of the stockholders of the Bank of Oakdale will be able to make good their share of the shortage, but they are small stockholders.
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BANK IN HANDS OF A RECEIVER Court Appoints an Oakdale Man to Take Charge of Defunct Financial Institution OPPOSITION IS EXPECTED Rumor Has It That but a Few Cents on the Dollar Will Be Paid Depositors Special Dispatch to The Call. MODESTO, June 19.-In the Superior Court of Stantslaus County Judge Fulkerth to-day heard the case of the People against the Bank of Oakdale and appointed a réceiver for the defunct concern in the person of A. L. Gilbert of Oakdale. Deputy Attorney General George A. Sturtevant conducted the case for the people and Attorney F. L. Nicol of Stockton represented the stockholders of the bank. Although there were rumors to the effect that the directorate of the bank would fight the appointment of Gilbert, who was at one time a bookkeeper in the concern, there was no opposition. The people of this county are looking forward with great interest to developments when the work of the receiver will show the true condition of the bank, which was forced to close when Louis Kahn shot himself. It is stated upon good authority that the bank will be able to pay only a few cents on the dollar. Some of the stockholders are unable to pay much toward making up the deficiency and the papers in the estate of Louis Kahn, the principal stockholder, filed to-day show that his private fortune is given a legal value of only $15,000.