Jasper County Democrat, Volume 11, Number 37, Rensselaer, Jasper County, 10 October 1908 — ADVOCATES THE OKLAHOMA PLAN [ARTICLE]

ADVOCATES THE OKLAHOMA PLAN

Of Guaranty Bank Deposits, Does Dr. Jacob Wildberg, Formerly of Rensselaer. Dr. Jacob Wildberg and wife returned to Colgate, Okla., Thursday afternoon, after attending the funeral of his father Tuesday. Mr. Wildberg was interested in the first bank failure under the guarantee deposit law in Oklahoma. When the International Bank of Colgate took advantage of the new law, the president and cashier subscribed for some $25,000 in stock and did not have the money to pay for more than $15,000 of it; the balance was paid for with short time notes with ample security. When these notes came due these people did not have the money to pay them and the security refused to re-sign. In this dilemma the president and cashier loaned themselves enough money out of the bank’s funds to make their stock whole, and expected to borrow it some place else and make the bank whole before the*bank examiner got to them, which happens every month In that state.

Dr. Wildberg and some of the other stockholders got wind of what was going on. The Doctor made an investigation on his own responsibility and discovered the loans The other stockholders were notified; a stormy meeting ensued in which the entire transaction was gone over, the bank officers neglected to do anything in the time given them, and the only resource was to call up the State Bank Inspector# which was done. He came the next day and in twenty minutes he had posted the necessary notice to depositors to come and get their money. The bank has been reorganized and all of its obligations paid. The bankers were arrested and are now awaiting trial. The penalty for this offense is one to five years imprisonment and $1,090 fine, of both. How different is the case of A. McCoy & Co., of Rensselaer, which failure took place April 17, 1904, entailing a loss of $200,000, or Bob Parker, of Remington, who failed December 19, 1907, entailing a loss of $225,000! The victims of those banks will please note that the democratic party is favoring this bank guarantee {Han of securing depositors, and that the republican party is not only not favoring it, but Is fighting it with all its might. ;■ We don’t know Dr. Wlldberg’s politics, but his father was an ardent republican and he was raised in that political faith. However, he is an ardent friend of the Oklahoma bank guaranty plan and says it is one of the best laws ever enacted anywhere. ’.