FRED EATON.

Deputy Sheriff Fred Eaton...

Arkansas City Traveler, Monday, March 27, 1922. Front Page.

Victor E. Creighton, president of the Traders State bank of this city, which was closed under orders of the state banking department on March 15, was placed under arrest Saturday night on a warrant issued from the office of the county attorney, Ellis Fink, of Winfield, charging him with making a false statement to the state bank commissioner during the month of February, 1922.

The case was started in the justice court of W. T. Ham here and the defendant appeared in court that night and made bond in the sum of $7,500 for appearance for preliminary hearing on Saturday, April first. J. S. Mowatt, brother-in-law of Creighton, signed the bond. It is alleged in the complaint, which was signed by Deputy County Attorney C. H. Quier of this city, that the former president of the bank made a false statement which was submitted to the state bank commissioner regarding assets of the bank, which he knew at the time were not good.

Hon. W. L. Cunningham, attorney of this city, and J. S. Mowatt went with Creighton to the courtroom and the bond was signed up at once. There is said to be a certain note in particular, the nature of which is given in the complaint, involved in the charges against the president of the defunct bank. Deputy Sheriff Fred Eaton, of this city, served the warrant on the defendant Saturday evening at his home, and he went at once to the courtroom, where the bond was made and the date of the hearing was set for Saturday. The attorneys in the case are not sure whether or not the case will be heard at that time, as the district court is now in session at Winfield. In event that they cannot hear the case at that time, it will no doubt be continued until another date.

County Attorney Ellis Fink of Winfield was in the city Saturday afternoon, in conference with the men in charge of the bank, and the complaint was issued in this case while he was here, although the warrant was not served until after Mr. Fink had returned to his home.

There was no unusual demonstration when the former banker was taken into court and few people in the city knew of the arrest that night. The story was given out that night, by the officials, however, and on Sunday nearly everyone in the city knew of the charge that had been preferred against V. E. Creighton.

D. V. Curry, of Topeka, who has been appointed receiver for this bank and also for the Citizens State bank of Geuda Springs, which was closed a few days following the closing of the bank here, is at present in charge of both institutions and he states that the work of checking up the 4,000 accounts of the depositors of the bank will not be completed before the first of April. Until the work of checking the bank’s paper and the accounts in general has been completed, he will make no statement in regard to the actual condition of the books of the bank, he stated Saturday evening.

The complaint in this action, which is on file, together with the warrant and the bond in the case, in the state court of Judge W. T. Ham, recites that, “V. E. Creighton did wilfully and knowingly subscribe to and make a false statement to Frank H. Foster, state bank commissioner, that one certain note then and there listed by said V. E. Creighton as an asset of said bank, purporting to be executed to the bank, and of the value of its face for the sum of $5,119.96, was then and there a bonafide asset of said bank, and of the value of its face value, when in truth and fact, said note was then and there valueless, which fact the said V. E. Creighton then and there well knew with intent to deceive the said Frank H. Foster, as such commissioner, as to the condition of said bank.”