10048. Aurora State Bank (Aurora, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 1, 1930*
Location
Aurora, Missouri (36.971, -93.718)

Metadata

Model
gpt-5-mini
Short Digest
3bac3fc5

Response Measures

None

Description

The Aurora State Bank failed/suspended in June 1930 after examiners found large shortages, alleged double bookkeeping, and missing customer bonds. The bank entered receivership (payments from insurer noted) and prosecutors pursued officials; no explicit depositor run is reported in the articles.

Events (4)
1. June 1, 1930* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Examiners found large shortages (about $250,000 total), alleged double bookkeeping, missing customer bonds, and bad/slow loans leading to failure.
Newspaper Excerpt
The Aurora bank failed last June ... examiners said they found additional amounts listed as due from other banks ... more bonds missing from customers' safe deposit boxes.
Source
newspapers
2. October 16, 1930 Other
Newspaper Excerpt
Brunk is charged with irregularities in handling some of the state funds in connection with his dealings with the Aurora State Bank which suspended some time ago.
Source
newspapers
3. February 19, 1931 Receivership
Newspaper Excerpt
$20,000 Received As Bonds Payment For Aurora Bank ... will go funds Aurora bank receivership to repay ... will go funds to Aurora bank receivership to repay the various ... Adams and Easley cited the demand for payment of the ... (payment from Fidelity and Casualty company).
Source
newspapers
4. July 14, 1931 Other
Newspaper Excerpt
EASLEY PLEADS GUILTY. Accused Aurora Bank Official ... pleaded guilty ... charges the failure.
Source
newspapers

Newspaper Articles (8)
1. June 21, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, June 21, 1930

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Article Text

FROM PAGE ONE Chance Seen Of Reopening Aurora Bank aminers said they found additional amounts listed as "due from other banks," when such was not the case, and more bonds missing from customers' safe deposit boxes. Mr. Davis the examiners believed $100.000 would amply cover slow or bad notes carried among the live assets of the institution. which combined with the outright shortages bring total apparent loss of nearly $250,000. The bank was a $900,000 institution. Considerable paper owned by the bank but not carried among the live assets may aid in a reorganization, however, Mr. Davis added. Prosecutor Waits Report The shortages reported by the examiners now are listed as follows: Lawrence county deposit, $35,000 shortage: state deposit, $49,000; "due from other banks," $32,000; customers' bonds missing, $27,000 Charles R. Landrum, Lawrence county prosecutor, apparently has decided to delay any criminal action in the failure until the depo committee has had ample tin. attempt reorganization. The examiners have not completed their final inventory but have placed preliminary evidence of the shortages and of alleged "double bookkeeping" in the hands of the prosecutor. E. R. Adams was president of the bank, and M. T. Easley, cashier. Mr. Davis said he inquired this morning and was convinced that no officers of the bank benefited from the shortages discovered. Apparently, he said, the shortages occurred and the bank's affairs were juggled in a desperate effort to keep the bank open untillit could weather a storm of bad business conditions. Meeting with the examiners this morning in addition to Mr. Davis were T. A. Miller, Aurora lumberman; W. H. Scott, Insurance dealer, and Eugene McNatt, attorney.

2. October 16, 1930 Tri-County News Sullivan, MO
Article from Tri-County News, October 16, 1930

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Article Text

State Treasurer Brunk Suspended from Office. Tuesday morning the Governor suspended from office state treasurer Larry Brunk and placed S. L. Cantley in his position. The Governor asked States Attorney Shartell to start quo warranto proceedings to oust him from office. Brunk is charged with irregularities in handling some of the state funds in connection with his dealings with the Aurora State Bank which suspended some time aso. In his letter to the States Attorney, Governor Caulfileld says: earnestly hope that Mr. Brunk will be able to prove his innocence in court."

3. October 19, 1930 Evening Star Washington, DC
Article from Evening Star, October 19, 1930

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Article Text

"The gist of the charges made against me, as I understand them," he said, "are that I deposited excessive amounts of State funds in the Bank of Aurora, permitted that bank to default in the payment of the stipulated interest upon such deposits, and converted a portion of such defaulted interest to my own use. These charges are absolutely false." Gov. Caulfield ordered the suspension after he was given a State finance department report crediting Brunk with irregularities in interest on State deposits in the closed Aurora State bank. Brunk had borrowed $23,000 on unsecured notes from the institution, located in his home town. Edward G. Robison, special Assistant Attorney General, reported interest from State funds had been withdrawn by bank officials and placed in a special account, known as the "Brunk

4. November 10, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, November 10, 1930

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Article Text

FROM PAGE ONE Suit Planned For Recovery Of Interest was offered for failure to figure interest at the correct rate. $5141 Due from Brunk The accountants also revealed the Aurora bank owed the state $5141.32 on state deposits during the administration of Larry Brunk, suspended state treasurer. A recheck of inter: est increased that item to $5,028.87, while the accountants found $112.45 due on Holland bank collections carried in the Aurora bank. The Aurora bank failed last June and shortly afterwards reports of irregularities in its accounts with the state were investigated. Last month Governor Caulfield suspended Larry Brunk as state treasurer upon disclosure of irregularities in his accounts with the bank, which had financed his.campaign for state treasurer. Brunk owed the bank $20,000 in unsecured personal notes when it was closed. Ouster proceedings are now pending in the state supreme court against Brunk Mr. Stephens, who now operates an investment office at 837 Boonville avenue, was driving home from St. Louis this afternoon and could not be reached for a statement regarding the shortages discovered in the Aurora bank's payments to the state during his reign as state treasurer. The state audit whose results today were made public at Jefferson City, came after The Leader had printed first news in the state of discrepancies in the bank's state accounts during the Stephens administration. The Leader also revealed State Treasurer Larry Brunk's dealings with the Aurora bank long before they were investigated and made public generally by state officials. Stephens On Way From St. Louis Stephens was in Jefferson City

5. January 22, 1931 The Chillicothe Constitution-Tribune Chillicothe, MO
Article from The Chillicothe Constitution-Tribune, January 22, 1931

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Article Text

Former Clerk of Treasurer's Office signs After Refusal to Repeat JEFFERSON Jan. sudden resignation of McCall, formerly chief clerk in fice of Eugene Stephens his term as state treasurer, and recently deputy in the state oil inspection department, caused further tangle the already muddled affairs the treasurer's office. McCall resigned, learned, prevent any the He was chief clerk ing the period from 1925 to 1928, during which time special investgators for Governor Caulfield reported finding $31,000 deficiencies in state interest money from depository banks. Results of the investigation of the Stephens administration were made this week by the governor request of State Treasurer Brunk, who is himself facing of alleged dereliction in office. McCall's resignation is said to have resulted after he refused to appear for third time before the governor's vestigating staff. He already had peared testifying to two transactions involving more than $1,500 which took place when ed Stephens in the treasurer's office. The amount, in two lots, was found be cash excess of the amounts shown on Stephens' books. The funds were turned over, McCall said, to the new administration as soon as Brunk into office. Meanwhile, the house committee vestigating the activities of Brunk in connection with the defunct bank of Aurora, continued to probe Several witnesses appeared before the committee yesterday, including Mulligan, the governor's investigator who made the probe which resulted in Brunk's suspension by the governor last October; John B. Farrington, one of the attorneys for the state in recent case against Brunk in the supreme court; and Regional Bank Examiner Cahill, who examined the Aurora bank after it falled two years ago. Brunk will be permitted to appear before the investigating board to tesin his own behalf. It not known, however, whether he would be permitted to take attorney to the hear-

6. February 19, 1931 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, February 19, 1931

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Article Text

$20,000 Received As Bonds Payment For Aurora Bank A for $20,000 from the F1delity and Casualty company of New York, which guaranteed the of Aurora loss deeds of its today by supervisor of the Ozarks The full payat for upon the time by and Curtis attorneys the The Easley and will go funds Aurora bank ceivership to repay the Various and agement on the of both Adams and Easley cited the demand for payment of the

7. July 13, 1931 Kirksville Daily Express and Kirksville Daily News Kirksville, MO
Article from Kirksville Daily Express and Kirksville Daily News, July 13, 1931

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Article Text

BANKER EASLEY GOES ON WAITS Latter Given Continufor Testimony ance in Brunk former official the Bank was denied further delay and ordered to trial immedcharges growing out the failure when his case called here another official of the closed Aurora was granted tinuance his trial charges growout the failure. The delay compliance promise made him by the House Board of Managers recently tried State Treasurer Larry Brunk impeachment chargAdams testified Brunk's trial the prosecutors promised him months delay in his trial Easley and Adams originally charged jointly Lawrence county but took got venue change Barry county and each previously been granted delays Easley asked further delay today grounds that his mother and that of his witnesses could in court now Selection jurors began immediateafter Easley's motion was denied and expected taking testiwould begin this Prosecutor McPherson of Aurora of former Congressman Dick prosecuting assisted Special Prosecutors Arthur M Curtis Springfield and Charles of Neosho State Senator Lon Kelly of Pineville chief defense Impeachment charges against Brunk filed largely an aftermath of the Aurora bank failure Brunk one time had approximately $20,000 personal notes in the Aurora bank formerly mayor and state senafrom that town charged Brunk and bank officials conspired defraud the state of money due in on state deposits the bank and that interest money paid Brunk's notes instead of to the state Brunk acquitted

8. July 14, 1931 St. Joseph News-Press St. Joseph, MO
Article from St. Joseph News-Press, July 14, 1931

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Article Text

EASLEY PLEADS GUILTY. Accused Aurora Bank Official Suddenly Changes Mo., Easley, official the defunct depository, the pleaded guilty denly here this morning charges the failure. When court opened, Easley's torneys they would his plea guilty. defense and prosecution agreed prison