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STATE IN CHARGE OF BERNICE BANK Collateral Depreciation Blamed for Failure of Depository, Prey of Bandits After having been robbed four times since it was founded a little more than 10 years ago, the First State Bank of Bernice, Okla., was closed from further business Wednesday by O. B. Mothersead, state bank examiner. The failure of the bank is attributed to the depreciation of collateral. The doors of the bank failed to open for business Tuesday morning, but announcement of the failure was not made until the following day. No irregularities were found in examination of the books, Mr. Mothersead stated. Within the last few weeks 11 farmers in the Bernice neighborhood have withdrawn substantial accounts from the bank and moved to the state of Washington. This run on the bank's funds, added to the fact that the depository was forced to take over a large block of farm property brought about the failure of the institution, it was said. Fergusons Lose Heavily. E. C. Ferguson, president, and Mrs. Ferguson, cashier, are said to have lost about $13,000 through the bank's failure. They had been operating the depository about four years. Frank Connelly, a Bernice merchant, and his father, John Connelly, of near Fairland, former Ottawa county undersheriff, are also said to have lost heavily through the failure. Stockholders of the depository on Thursday expressed doubt that the bank could be reorganized to resume operation. Since the Bernice bank was organized it has operated on ruffled waters. The chief source of menace was from bandits, the hills and rough country in that vicinity providing an ideal hiding place for the raiders. The bank was first robbed in August, 1915, when three men disguised as negroes overpowered the officials and escaped with $2,000. Arch Ballard was tried and acquitted of complicity in the raid. The money was never recovered. Was Robbed in 1920. In 1920 the bank was robbed of several hundred dollars in cash and a large amount in Liberty bonds. The bonds were traced to Muskogee and found. The money was found cached near the home of Ray Hamilton of Grove, who was convicted of complicity in the robbery. A year later the bank was raided one night and a number of deeds and valuable papers taken, but no cash. Last July 10 the bank was raided by three men who escaped with $2,000, which has never been recovered. Three men have been arrested as suspects, but the failure of the bank is expected to have considerable bearing on their trial, county officials said Thursday. The bank was capitalized at $10,000.
