10035. Sage Banking Company (Alexandria, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 1, 1915*
Location
Alexandria, Missouri (40.359, -91.455)

Metadata

Model
gpt-5-mini
Short Digest
eab31d4c

Response Measures

None

Description

The articles describe the failure of D. H. Sage's bank, appointment of a state court receiver (McD. Turner), and subsequent federal bankruptcy proceedings with assets turned over to a trustee. No newspaper text describes a depositor run; the story is about receivership/bankruptcy and permanent closure. The bank appears to be a private/unincorporated banker (articles discuss 'private bankers' in context).

Events (3)
1. February 1, 1915* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/insolvency of D. H. Sage (owner/operator) leading to appointment of a receiver and bank failure.
Newspaper Excerpt
At the time of the failure of D. H. Sage, McD. Turner was appointed receiver of the Sage Banking company at Alexandria.
Source
newspapers
2. May 14, 1915 Other
Newspaper Excerpt
Circuit Court of Clark County Made Decision in Favor of Johnson B. Angle, Trustee. ... petitioned that the receivership of the Sage Banking Co., of Alexandria, Mo., under McD. Turner, be annulled and that the assets of the bank be thrown into general bankruptcy.
Source
newspapers
3. August 4, 1915 Receivership
Newspaper Excerpt
Hon. David P. Dyer ... has ordered that the receiver, McDermott Turner, ... turn over to the trustee ... all the money, property and effects in his possession of David H. Sage doing business as the Sage Banking company. (Judge Dyer's decision).
Source
newspapers

Newspaper Articles (3)
1. February 21, 1915 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, February 21, 1915

Click image to open full size in new tab

Article Text

BANK IS SAVED TO SAGE CREDITORS Decision of Missouri Judge is Given, Following Hearing in This Matter. The Sage Banking Co., assets belong to the bank creditors. according to the opinion of Judge D. P. Dyer, expressed in the federal court at St. Louis last Monday afternoon. Further be absolutely refused to interfere with the Missouri state courts as to the appointment of the receiver and order the bank affairs thrown into bankruptcy, says a Kahoka paper. At the time of the failure of D. H. Sage, McD. Turner was appointed receiver of the Sage Banking company at Alexandria. Later Sage went into involuntary bankruptcy in federal court at Keokuk. The referee is W. J. Roberts and Johnson B. Angle is trustee. A petition of the latter was made in the federal court in St. Louis by Angle to cause the surrender of the assets of the bank to him and be disposed of in the general bankruptcy proceedings. The case was set for hearing February 15, before Judge Dyer. Among those in attendance were Mr. Angle and his attorney. Mr. Roberts and McD. Turner, the receiver, with his attorney, T. L Montgomery of Kahoka, and a committee of the bank creditors, James Fulton, of Kahoka: Irwin Fox and George Cannon, of Alexandria, with their attorney, Jas. P. Gilmore, of Jefferson City. County Treasurer T. J. Daggs was also present. The presentations of the plaintiffs and defendants were received by Judge Dyer at 9:30 a. m., and at 2 p. m. the case was called and without arguments by either side he disposed

2. May 14, 1915 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, May 14, 1915

Click image to open full size in new tab

Article Text

SAGE BANK CASE TO HIGH COURT Circuit Court of Clark County Made Decision in Favor of Johnson B. Angle, Trustee. PETITION IS CONTESTED Case is Unusual and the Question Involved Has Never Been Before High Court. KAHOKA, Mo., May 14.-In the circuit court of Clark county, Judge N. M. Pettingill decided in favor of Johnson B. Angle, trustee in bankruptcy in the D. H. Sage case, in the federal court at Keokuk, who petitioned that the receivership of the Sage Banking Co., of Alexandria, Mo., under McD. Turner, be annulled and that the assets of the bank be thrown into general bankruptcy. An appeal has been taken to the supreme court of Missouri. Angle's petition is contested by the state of Missouri through the attorney general, John T. Barker, by the receiver, McD. Turner, and the creditors of the bank, Messrs. Erwin Fox, Geo. Cannon and Jas. Fulton, et al. Barker is represented by Assistant Attorney General W. T. Rutherford and W. M. Fitch; the receiver by Attorney T. L. Montgomery, and the creditors by Jas. P. Gilmore, of Tulsa, Okla. Attorneys Boyd & McKinley are looking after the interestg of Mr. Angle. The case is an unusual one as there is a question to determine that has never been before a court of last resort. For this reason the losers in the local court are very well pleased with the decision as the supreme court decision will be final. In case they had won, Mr. Angle would have taken the case to the federal court which would be unsatisfactory in view of the above. McD. Turner, receiver, has filed a supersedas bond of $80,000 and the creditors have filed a cost bond of $200. The contention of those interested in saving the assets of the bank for the creditors are as follows: 1. An act of the Missouri general assembly in 1910 eliminated private banks from bankruptcy. 2. Under the state law, Mr. Sage dedicated a capital of $10,000 for the protection of his bank creditors and under the receivership they are foreclosing same. 3. Bankruptcy proceedings were brought in the federal court of Iowa and the federal court has no jurisdiction over a state bank of Missouri, because at the date of jurisdiction in bankruptcy the bank was not in the hands of Sage but in the state's hands, under a receiver, the foreclosure then be.ng in progress and that the state court should retain jurisdiction. The decision of the supreme court will be awaited with interest.

3. August 4, 1915 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, August 4, 1915

Click image to open full size in new tab

Article Text

# BANK ASSETS MUST BE TURNED OVER Judge Dyer in United States District Court Rules in Sage Case In Matter of Alexandria Bank. # TURN OVER TO TRUSTEE Administration In Bankruptcy Court is Result of Court's Order in This Important Matter. Hon, David P. Dyer, judge of the United States district court at St. Louis, Mo., has handed down his decision in the matter of the petition of the trustee of the estate of David H. Sage, bankrupt, praying that an order be made directing McDermott Turner, receiver appointed by the circuit court of Clark county, Missouri, in charge of the assets of the Sage Banking company at Alexandria, Mo., to turn over to the trustee for administration in the bankruptcy court the assets of said bank. Judge Dyer has gone into every phase of the question very thoroughly and in a well written opinion consisting of twenty-six pages, has pointed out that natural persons and unincorporated companies engaged in business as private bankers remain liable to be adjudged bankrupt, and therefore, has ordered that the receiver, McDermott Turner, to forthwith turn over to the trustee, Johnson B. Angle, all the money, property and effects in his possession of David H. Sage doing business as the Sage Banking company. After a discussion relative to the validity of the jurisdiction of the district court of the United States for the southern district of Iowa to adjudge David H. Sage, a bankrupt, the court holds that the respondent's objections to the validity of such adjudication are untenable and that the adjudication must be treated as valid. Treats of Private Bankers. The vital question discussed is whether the property of David H. Sage doing business as the Sage Banking company is such property as under the provisions of the bankrupt act passed to his trustee in bankruptcy by virtue of the adjudication of bankruptcy. The court in discussing the receiver's contentions that private bankers could not be declared bankrupts, states: "Both under the original act and under the amendment of 1910, all "natural persons, except wage earners and persons engaged chiefly in farming or tillage of the soil" and all "unincorporated companies" were liable to be adjudged involuntary bankrupts. If, therefore, a private banker is a "natural person" or an "unincorporated company" he has been liable to be adjudged an involuntary bankrupt at all times since the present bankrupt act has been in force." After the trustee in bankruptcy had made application to the circuit court of Clark county, Missouri, to order the receiver to turn over the assets of the bank to him, and said order had been made by the circuit court, an appeal was taken by the receiver to the supreme court of Missouri, and the receiver set up this fact in his answer asking the federal court to defer action until the case was decided in the supreme court of Missouri. In answer thereto Judge Dyer states: "If the supreme court of Missouri could render an authoritative judgment in the pending case, and if this court was vested with discretion to delay action upon the present petition until the supreme court of Missouri makes its decision, this court would be glad to await the action of the latter court, but this court is of opinion that the supreme court of Missouri has no jurisdiction to decide the present controversy, and that this court has jurisdiction, and that it cannot properly refuse to exercise its jurisdiction." Circuit Court Errs. Judge Dyer further states: "In this case this court is of opinion that the circuit court of Clark county made an inadvertent error in directing its receiver to retain the sum of sixteen hundred dollars to cover fees and costs. As the circuit court of Clark county had no jurisdiction over the property in possession of its receiver, it had no authority to dispose of any portion of said property or its proceeds. If any expenses have been incurred, or any services rendered in the care and preservation of the property, they will, no doubt, be allowed by the United States district court for the southern district of Iowa, which