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Show STATE :Di!G TACTICS Ur.DER ATTACK Protest Made Following Closing of - Garfield ' Count Institution A sequel to th closing of th Stat Hank of Garfield last week Is a severe protest In Uarfleid and Kane counties sgslnst the stale banking department end particularly particu-larly the method be which iMuglas M. Todd Jr. was retained aa stste deputy bank examiner, while serving serv-ing a cashier of the defunct bank, according to Thoraa Rentage, at tornev of Bait Lake, who hss returned re-turned from a visit to Panguttca. Mr. ftamage stated today that h Is attorney for some of the stockholders stock-holders snd depositors of th hank which was elosed by the stste bank examiner and that patron of th bank resent the manner In which th closing of ths Institution wa handled by the state banking do. partment, believing It wa don tea nastily. x According to Ram age. H. C Tebhs. tat senator from the Tenth district, was removed cashier of th bank In January and Todd wa placed there and still retained his alasuUag ae a 4MUy U Ike etats bank commissioner's office. Todd, he attorney said, was cashier of the Bank of Duchesne when It failed and Is connected with the defunct de-funct State Bank of Flute and the Bank of Kane as receiver of both hanka Tha opinion of those closely close-ly connected with the bank st Fangultch Is that th bank would not have failed had Mr. Todd not been placed there to act "as Ihe court and the criminal" In his dual role of a state banking officer end sn officer of the Institution, Is whst Mr. ftamage said. His statement was corroborated by two cltlsens of that city who ar In Salt Lake. Hay Raraage: "Ap organised movement of poltleal significance may result" from the bank's closing for a number of lesders of Oarfisla snd Xsoe counties feel that the stat banking department acted not only too hastily, bat that th hanking law of th stat la too stringent. COULD HAVI SURVIVED. It I declared by Attorney Ra-mage Ra-mage that official of th bank came to Salt Lk to arrange a loan for th bank and that they returned to Pangultch feeling assured as-sured that th loan would b mad, but when Ira W. Hatch, president of the bank, waa notified to return to Salt !.ak for a conference with the banking officials hs waa Informed In-formed that ft was decided to eloee the- bank. The bank, continued Attorney At-torney Ramage, had slow paper, but oould have survived period of stringency with Judicious management. manage-ment. , "in addition to a strong resentment resent-ment In Oarfleld county of the state bank examiner' notion In closing the bank, -ther 1 alao a feeling that the federal reserve bank brought pressure to bear to eloa th Institution,- aald Attorney Attor-ney Rentage, who continued: "Reports from Pangultch say that efforts ar being made to reorgsn-lae reorgsn-lae the defunct bank. Stockholder snd depositor of th Slat Bank ef Garfield are to hold a meeting this venlng to discuss th matter." Bank Commissioner Seth Flxlon Is In Pangultch, but Information from the office 1 to th effect that Kxamlner Todd waa placed In th bank aa cashier by the board of directors, di-rectors, and not by the commission, sr. the board being the only authority author-ity to do this, during the eion of th legtslsture of which Former Csshler Tebho was a member of the senate, At that tlms Todd was still liquidating th assets of the Bank of Kans In that th bank wa In that locality and In that he had liquidated about TS per oent of the bank affairs It wss deemed an economical move to ooatlnue htm, BOOKS EXAMINED. In April last Commissioner Pig-' Pig-' ton and a representative of the federal fed-eral reeerve hank vfslted the State Bank of Garfield and after an examination ex-amination of the book found that th capital of the bank had been Impaired, and that they had bad paper exceeding M.0, . so that Commissioner Plxton gav th bang nlnty days In which to make th Impairment ef th bank good. The ninety day having pssssd and the director falling to'mak good the requirement a t capital, th commissioner com-missioner had no alternative but to order th bank closed, which was done In thai the stringent law governing gov-erning the state banke of Utah commands th commissioner to so act. Csshler Todd, It wa stated at the commissioner's office. Is not In chargs of sny other banks but the i Oarfleld Stats bsak and th de- I funct Ksns County bank. |
