august jaedicke . bad paper forces hanover bank shut . nov 1922
Bad Paper Forces Hanover Bank Shut TOPEICA. Kan.. Nov. 15. The . People's State Bank of Hanover, Washington county, Kansas, was closed today and its affairs were - taken over by the state banking department, it was announced by State Bank Commissioner Frank H. Foster. Slate Senator J. K. Highland is president of the bank. Its latest, statement show $t2r-s $t2r-s $t2r-s pno deposits: surplus $2,500; W.pital $25,000 "Bad loans" are responsible, 'according to a report received today today by J. H. Snndell, assistant bank commissioner, who is at Hanover. Depositors are protected under the state guaranty law. The banking department's ' investigation investigation shows that more than $30,000 of the outstanding loans are on notes of President Highland Highland and his relatives, according to Bank Commissioner Foster. Some time ago the department ordered these notes be paid, but they still remain due, Mr. Foster said. Shrinkage in deposits also were instrumental in the bank's failure, its statements showing a decrease of $150,000 in two vears. It was two years ago when the Hanover State Bank failed, followed hv a spectacular flight of its president, August Jaedicke, and his capture some months later near Shreveport, Da. .Jaedicke now is serving a sentence in the state penitentiary for violation of the state banking laws in connee-.. connee-.. connee-.. tionVith his bank's failure. A third bank failure in Washington Washington county was that of tho Farmers State Bank at Washington, Washington, the county seat, less than a year ago.