10049. Bank of Aurora (Aurora, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 14, 1930
Location
Aurora, Missouri (36.971, -93.718)

Metadata

Model
gpt-5-mini
Short Digest
1207367e

Response Measures

None

Description

The Bank of Aurora (Aurora, MO) closed/failed (articles cite closure June 14, 1930) and entered liquidation/receivership. Reporting centers on fraud, false entries, large unsecured loans (including state treasurer Brunk's notes) and prosecution of officers. There is no explicit contemporaneous description of a depositor run in the articles; the sequence is a closure/failure followed by receivership and prosecutions, so classify as suspension_closure (suspension/closure without an identified run).

Events (3)
1. June 14, 1930 Receivership
Newspaper Excerpt
Cahill, who was placed in charge of the liquidation of the defunct Bank of Aurora, the state depository in Brunk's home town ... told of the records he found when he took charge
Source
newspapers
2. June 14, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failure due to irregularities/fraud, false entries, large unsecured loans and shortages discovered (including alleged misapplication of state deposit interest and officers' false entries).
Newspaper Excerpt
short time after he took charge of the bank, which closed June 14 last
Source
newspapers
3. July 12, 1930 Other
Newspaper Excerpt
Three officials of the closed Bank of Aurora were arrested ... on charges of making false entries in the bank's records; bonds of Adams and Easley was fixed at $5000 each, while that of Schumate was set at $2500
Source
newspapers

Newspaper Articles (20)
1. July 9, 1930 The Springfield Press Springfield, MO
Article from The Springfield Press, July 9, 1930

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Expect Decision on Bank Saturday SPECIAL TO THE AURORA, Mo., July positors' committee of the closed Bank of Aurora will report difinitely Saturday on whether the bank can be re-opened, deputy state finance commissioner, said here Wednesday morning. Should the bank fall to reorganthe inventory will be made public and additional information concerning shortages and rumors other will be available. The Bank of which had its funds the Bank Aurora, may be re-opened. positors' committee plans for the institution will report Saturday afternoon. The bank was forced to close simultaneously with the Aurora bank.

2. July 12, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, July 12, 1930

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Three Aurora Bankers Placed Under Arrest President, Cashier and Bookkeeper of Closed Institution Are Charged With Making False Entries; All Immediately Arrange Bond Three officials of the closed Bank of Aurora were arrested at Aurora shortly after o'clock today on charges of making false entries in the bank's records. They were released shortly afterwards on bonds. Those arrested are Adams, former president of the institution: Easley, former cashier, and Schumate, bookkeeper. The bonds of Adams and Easley was fixed at $5000 each, while that of Schumate was set at $2500. After Inventory Filed The charges were filed by Prosecuting Attorney Charles R. Landrum as soon as he learned that depositors' committee had abandoned plans for the reorganization the institution. Each of the accused officials waived preliminary hearing and they were bound over to the Lawrence county circuit court. They probably will be tried at the September term of court at Mount non, the prosecutor said. The information charges the bankers diminished the state's deposits by $48,000 and the county's Other Dangers charges may be filed later. He said he obtained access of the institution's papers today and that he would make thorough investigation. The bankers were represented today by Sam Wear, Springfield attorney, in making bonds. Brunk's Obligations Shown by Inventory BY LEADER STAFF WRITER MOUNT VERNON, July When the Bank of Aurora failed recently, State Treasurer Larry Brunk of Aurora personally owed the bank of which approxiimately $12,500 was unsecured. These facts were definitely closed this afternoon when John Cahill, regional supervisor bank liquidation, filed state ventory of the closed bank in the county recorder's office here. The inventory disclosed that sonal unsecured notes totaling 500 and signed by Brunk were found by the bank examiner the desk Cashier Easley. These notes assets

3. July 12, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, July 12, 1930

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claim personal from officers they are being collected liquidating officer. supplementary inventory prepared by the bank examiner additional note was discovered which brought the total apparent indebtedness of the state treasurer more than $23,500. This was note for $3500 signed in 1925, found by the examiners the bank's note case, but contained in an envelope of the Aurora Investment company, and was not listed direct asset of the bank. The receiver probably will try to collect on it, however. Makes $10,000 Payment Since the bank closed Brunk has paid off slightly more than $10,000 of his obligations to the Aurora bank, specifying that the amount be paid on the unsecured portion of his debt and promising to pay off the rest of the unsecured paper within 60 days. The inventory showed that many of the loans which have no security except Brunk's name were made to him while he was campaigning for state treasurer in 1928. Among loans made to him during 1928, the year of his campaign, are one for $2500, another for $500, one for $200, another $300, and still another for and another for $395. The inventory said most the notes covered checks written by Brunk against the Aurora bank. The Bank Aurora had $273,000 of state funds on deposit when closed, according to the inventory, although Brunk earlier this week clared the amount is only $166,000 of state money on deposit there. Some Years Old Two of the secured notes held by the bank against Brunk date back to 1923. They are for $2877 and $2000. Two other secured notes cover amounts for $2000 and $700. and are dated 1926. Brunk earlier this week declared that his indebtedness to the Aurora bank was consisderably less than $20,000, the amount revealed by The Leader several days ago. Examination of the inventory indicated that. the state deposist probably amply protected by bonds and other security.

4. October 14, 1930 The Chillicothe Constitution-Tribune Chillicothe, MO
Article from The Chillicothe Constitution-Tribune, October 14, 1930

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Governor Removes the State Treasurer Pending Outcome of an Office. FAILED TO GIVE TRUE BALANCE? Supension Came Fellowing the Filing Report an Assistant Attorney General After Investigation. CITY, Mo., Oct. treasurer Larry Brunk was suspended from office by Governor Henry Caulfield today, pending conclusion of an investigation into charges that the state treasurers office not conducted according to law. finance named by Governor Caulfield treasurer interim, to until the attorney general's office has pursued to conclusion quo warranto ceedings in the state supreme court to determine whether Brunk should permanently removed from office. Charges against the treasurer had do with alleged irregularities in the handling of reports from the Bank of Aurora, state depository. Specific charges were that Brunk "failed to posit the state's money as required by drew of state depository state funds in manner not provided by law and that the monthly reports of the The Bank of Aurora, is alleged, failed for the period from January to May 30, to remit to the of interest due the state, retained and converted to its own of the depositing the remainder of in special account known as the "Brunk Rent Account." The charges allege that against this account were charged various amounts which were used pay debts owing to the Bank of Aurora by state treasurer Governor Caulfield's statement of suspension said he was "convinced the state treasurer's monthly reports did state the true balance in the bank because they failed to include interest due to the state and remaining in said bank." The suspension came following filing report by assistant attorney genEdward Robinson, who gated Governor Caulfield to make an investigation. The report disclosed that Brunk's debt to the Aurora Bank more than $23,000, most of it contracted to obtain funds to carry on his campaign for the state treasurer's office. Bank officials, Robinson's report drew checks on the "Brunk rent account" with which to pay principal and interest on Brunk's notes and also his taxes and personal debts. Excerpts from the governor's letter to Attorney General Shartel, instructing him to start proceedings against Brunk, follow: "Whatever explanation may be made. would appear from Mr. Robinson's report that the state treasurer has benefitted personally through the use interest on state funds. Mr. Brunk denies all knowledge of the failure of the bank to pay the state interest due He denies all knowledge of the existence of this special account (the "Brunk Rent Account") and its ployment. "He claims he reimbursed the bank cash for all checks drawn by him on the bank and for all payments which the bank have made for taxes or may personal debts. During this entire period Mr. Brunk had no active personal account in the bank. to take action ordering you convict Mr. Brunk of misconduct in but find that the facts are such to proceed under the require me and leave the matter to the decision of the courts." Brunk would make no formal ment other than to express "every fidence that will be vindicated.' The state, treasurer had been criticized because of the presence of loans in the failed Bank of Aucured and had stormy controversy with General Shartel Attorney which the other of each accused the sponsibility for the presence Marshfield of in State Bank of of which was securities, the legality questioned. Former Aurora, Brunk mayor of the state Senate and two terms in Governor Baker appointed by for the department purchasing agent in 1925. He penal institutions of the public advanced to service serving there until commission. he for state treasbecame candidate Brunk years old. in 1928.

5. October 16, 1930 The Milan Standard Milan, MO
Article from The Milan Standard, October 16, 1930

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Charged With Using Interest Funds and Making False Reports. Jefferson City, Mo., Oct. Treasurer Larry Brunk was suspended from office by Governor Henry Caulfield today pending conclusion of an investigation into charges that the state treasurer's office was not conducted according to law. Cantley, state finance commissioner, was named by Gov. Caulfield treasurer ad interim, to the attorney general's office has pursued to conclusion quo warranto proceedings in the supreme court to determine whether Brunk should be permanently removed from office. Attorney General Stratton Shartel said the quo warranto proceedings would not be instituted today, but that he expected his department would be ready within few days to follow Governor Caulfield's instructions to "take immediate steps" toward removing Brunk from office. Charges against the state treasurer had to do with alleged irregularities in the handling of reports from the Bank of Aurora, Mo., state depository. Specific charges were made that Brunk "failed to deposit the state's money as required by law, drew out of state depository state funds in manner not provided by law, and that the monthly reports of the state treasurer The Bank of Aurora, it is alleged, failed for the period from January 1929, to May 30, 1930, to remit to the state $4,903.01 of interest due the state, and retained and converted to its own use part of the interest, depositing the remainder of $2,950 in special count known as the "Brunk rent account." The charges allege that against this account were charged various amounts which were used "to pay debts owing to the Bank of Aurora by State Treasurer Brunk." Governor Caulfield's statement of suspension said he was "convinced the state treasurer's monthly reports did not state the true balance in the bank because they failed to include interest due the state and remaining in said bank." The suspension came following filing of report by Assistant Attorney General Edward G. Robinson, who delegated by Governor Caulfield to make an investigation. The report disclosed that Brunk's debt to the Aurora bank was more than $23,000, most of contracted to obtain funds to carry on his campaign for the state treasurer's office. Bank officials, Robinson's report leged, drew checks on the "Brunk rent account" which to pay principal and interest on Brunk's notes and also to pay his taxes and personal debts. Excerpts from the governor's letter to Attorney General Shartel, instructing him to start proceedings against Brunk, follow: "Whatever explanation may be made, would appear from Mr. Robinson's report that the state treasurer has benefitted personally through the use of interest on state funds. Mr. Brunk denies all knowledge of the failure of the bank to pay the state interest due He denies all knowledge of the existence of this special account (The Brunk Rent Account) and its employment. "He claims he reimbursed the bank in cash for all checks drawn by him on the bank and for all payments which the bank may have made for taxes or personal debts. During this entire period Mr. Brunk had no active personal account in the bank. "In ordering you to take action do not convict Mr. Brunk of misconduct in office, but find that the facts are such as require me to proceed under the law, and leave the matter to the decision of the courts." Brunk would make no formal statement other than to express "every confidence that will be vindicated." The state treasurer had been criticized because of the presence of unsecured loans in the failed Bank of Aurora, and had stormy controversy Attorney General Shartel in which

6. October 19, 1930 Joplin Globe Joplin, MO
Article from Joplin Globe, October 19, 1930

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TREASURER BRUNK (Continued from 1.) had been allotted of such funds. Allotment Made by Board. This allotment made by the state fund board above mentioned. The deposits in the Bank of Aurora, were at all times known to the state fund board, exercising supervisory control over that matter. Monthly reports, moreover, were made to the governor disclosing exact amount of state deposits each state depository. further significant that other banks, during the same period, under ments of only had state deposits in excess any amount ever deposited in the Bank Aurora under its allotment. This, well, sarily the members the state fund board. Hence, there be no question of impropriety concealment in connection the deposits of state funds the Bank Aurora. Not only were these deposits proper, but every of state funds deposited bank today properly secured by securities in the office of the state treasurer. result the state will suffer no loss on account these deposits. There equally no truth in charge that Bank of Aurora to remit my office less than the stipulated terest charge state funds. clerical details of my office are necessarily matters in the hands the clerical force. The chief clerk. Mr. was charged with the dutv of examining the terest collections from state positories upon state funds. and verifying the amount thereof. Learns of Errors. It was not until October that first learned of any inaccuracies in such interest payments. Thereupon, careful audit and vestigation were immediately made, and was discovered that not only the Bank of Aurora, but some five six other banks well, had been inaccurate in transmitting to the treasury the proper amount of Interest. Some of these banks default; some of them had roneously transmitted more than was properly due from them. Hence, manifest that there in favor of the Bank of Aurora. Mr. Tudor, moreadvised Governor Caulfield that he assumed full personal sponsibility for any failure accurately to determine and collect the amount of interest from the various state depositories. In this connection do not wish appear to shirk any mine for the efficient management of my office. obvious, that would be physical impossibility for state any to 'discharge the duties each and all of the thirty or thirtyfive employes in his public official in such position must necessarily rely upon the ciency of his subordinates. may add in this connection that there question of the good faith and the ability of Mr. Tudor. He did, however, fail to make the proper upon the receipt of interest funds from various which was his duty to do under my tions. This failure on his part was doubtless due to the pressing ture of his many other duties in that position; but such failure nevertheless, not known to me until the date above mentioned. At no time ever knowingly permit the Bank of Aurora, any other bank, to default the payment of the proper interupon state funds. result, this accusation is predicated upon more than clerical omission which was at all times unknown Charge Hinges on Another. The final charge of converting state funds my own use necessarily dependent upon truth of the charge last considered. permit the Bank of Aurora to default in its proper terest remittances, then obviously could not be party to any version of interest funds unremitted. charge of conversion the discovery of upon account in the Bank Aurora, its failure, entitled the rent Neither the tion nor the existence of that count known to me time prior to October first this four months after the bank had closed. neither party nor privy to that from the Bank of Aurora deposit slip other notice of kind of such account any posits therein; never drew check against This charge, pendent upon the truth of the charge above considered. will, that charge, be conclusively diaproven upon disclosure of facts. shall not welcome, but inupon searching investigation of my acts and conduct, official unofficial. Any such have other than my complete Springfield, Mo., Oct. from new source into the dealings of Larry Brunk, state treasurer, with the closed Bank Aurora, made soon, Charles R. Landrum, prosecuting attorney of Lawrence county, said tonight. Within the next week or ten days, Landrum expects report Louis auditing firm upon recently completed the Aurora records. When report available, the proseouter said, examine fully to "get the facts" nection with the "Brunk rent count" in the bank and public by Caulfield the office. Whether

7. October 20, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, October 20, 1930

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FROM PAGE ONE Shartel Acts For Removal Of Treasurer investigate the dealings of Larry Brunk, suspended state treasurer, with the closed Bank of Aurora. will be determined after a St. Louis Auditing company which examined the bank's books makes its report, Prosecuting Attorney Charles R. Landrum has announced. The auditing firm's report is expected within a week or ten days, Landrum said. When the report is available, the prosecutor said, he will examine carefully to "get all the facts" in connection with the "Brunk rent account" found in the bank and made public when Governor Caulfield suspended Brunk last Tuesday. Brunk, in a statement issued in Kansas City late Saturday, said, "I have been guilty of no wrong and there is neither warrant nor justification in the various charges brought against me. Brunk made his statement conferring with John G. Madden, Kansas City attorney, retained to defend Brunk against ouster proceedings instituted by Governor Caulfield "The gist of the charges made against me," he said, "as I understand them, can be expressed as forlows: that I deposited excessive amounts of state funds in the Bank of Aurora, permitted the bank to default in payment of the stipulated interest upon such deposits, and converted portion if such defaulted interest to my own use. "These charges are absolutely flase,"

8. November 7, 1930 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, November 7, 1930

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COMPLETE AUDIT OF AURORA BANK FOR CAULFIELD New Information Gained in Interest Check, It's Admitted, but Nothing Else Is Forthcoming Concerning Methods of Institution Admitting only the discovery of "new information" regarding the state's dealings with the Bank of Aurora. Governor Henry S. Caulfield today was silent regarding the results of a complete check of state interest accounts in the failed depository. L. J. Mulligan, the governor's personal investigator at Aurora, and accountants from the state public service commission, who assisted him, returned to Jefferson City yesterday after completing the check ordered by Governor Caulfield. He and the governor both would disclose nothing of their findings except that considerable additional information had been found. They also declined to say when an announcement of the audit would be made. Shortages Indicated The investigation just completed covered the years from 1924 to 1928. when C. E. Stephens, now a restdent of Springfield. was state treasurer It undoubtedly disclosed that the Bank of Aurora defrauded the state out of several thousands of dollars by defaulting interest payments upon state deposits while Stephens was treasurer. It is believed that the audit also will reveal shortages in collections made for the state by Ed Adams, president of the bank who was appointed by Stephens to collect more than $1,000,000 in collateral which secured the state's Holland bank Not Into Brunk Affairs The audit by Mulligan, made at Governor Caulfield's direction for his personal information and as basis for recovery claims against the bank receivership and possibly also against Stephens. did not concern imegularities in the bank's dealings with the state while Larry Brunk was state treasurer. Brunk now is under suspension by Governor Caulfield, accused of allowing the Aurora bank to default more than $4000 in interest payments due the state while the bank at the same time deposited funds in a mysterious "Brunk rent account" which he now disowns. Confer on Collection John S. Farrington, Springfield attorney. conferred at the state capital yesterday afternoon with Mulligan in an effort to determine what the state's total general claims against the Aurora bank will be. The low firm of Farrington and Curtis has been assigned to collect the state's claims where they do not conflict with the claims of general depositors represented by the state. The state claims will include the state's deposit at the time the bank failed. and the amounts allegedly defaulted by the bank in payments to the state while Stephens and Brunk were in the treasurer's office.

9. February 18, 1931 St. Joseph News-Press St. Joseph, MO
Article from St. Joseph News-Press, February 18, 1931

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PLANNING TO HALT STATE TREASURER'S IMPEACHMENT TRIAL Continued From Page One. week. approved, some little time required prepare and adopt impeachment and appoint board managers house to conduct the senate. today predictthat the survey gram might banner Representative County, raised technical point order against the Brunk presenton floor the house. Whitthe held ex parte witnesses side the that such procedure violative rules erning hearings. the committee, valiant effort report, and speedy trial for Brunk in the Little Work Has Been Done. Even without the complicating the impeachment Brunk, appeared today for the legislature complete by the regular adjournment Virtually of the assembly still are in committee rooms. Among these the survey corporation redistricting highway bus and truck committee was to hold hearing today the bills, the tax measures out favorably PROBABLE. County Prosecutor Sends Feb. Criminal State Larry Brunk in the cuit court County Attorney he has requestthe which terday recommended Brunk, evidence showing the state treasurer had knowledge the count," which money belonging state diverted in the closed Bank of Aurora BILLS BEFORE COMMITTEE CITY Feb. the state commission farms and today their strength the means which considering the hours Wednesday the heard opponents and graduated tax merits the discussion before than busimen Louis, Kansas City, and other urban centers protest passage they termed "radical BRUNK CONSULTS COUNSEL JEFFERSON Larry proceedings have been brought the house Kansas City today his John whether attempt will be answer the house the charges contained the report of the investigating committee.

10. May 20, 1931 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, May 20, 1931

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# IMPEACHMENT # TRIAL OPENS Missouri State Treasurer On Trial For Alleged Irregularities JEFFERSON CITY, Mo., May 20. (AP)—Examination of the first witnesses in the impeachment trial in the Missouri senate of Larry Brunk, suspended state treasurer, began today with Charles U. Becker, secretary of state, and J. E. Cahill, Springfield, a special deputy state finance commissioner, as the first to testify. Becker testified merely as to Brunk's election as treasurer in 1928, his suspension October 14, last, by Governor Caulfield, his reinstatement December 31, last, when the supreme court held the suspension illegal, and his second suspension May 2, after the house voted the impeachment charges. Cahill, who was placed in charge of the liquidation of the defunct bank of Aurora, the state depository in Brunk's home town in which irregularities in state deposit interest accounts are alleged to have been manipulated by Brunk and the bank officers, told of the records he found when he took charge, the notes owed by Brunk, and the alleged discrepancies in interest accounts. Ledger sheets; deposits slips, checks, etc. were offered as exhibits.

11. May 20, 1931 Daily American Republic Poplar Bluff, MO
Article from Daily American Republic, May 20, 1931

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MADDEN BANK RECORD SHOWS SIGNS OF ERASURES for Larry Brunk Attorney Charges Alterations in Ledger Sheets of the Aurora Bank. RECORDS EXHIBITED BY BANK RECEIVER Number of Deposits Carried on Sheet Labeled "Contingent Fund," Says Young Lawyer. By The Associated Press. Jefferson City, Mo., May amination of the first witnesses the impeachment trial in the Missouri Senate of Larry Brunk, suspended state treasurer, began today with Charles Becker, secretary state, and Cahill, Springfield, special deputy state finance commissioner, the first to testify. Becker testified merely as Brunk's election as treasurer 1928, his suspension Oct. 14 last, by Gov. Caulfield, his reinstatement Dec. 31 last, when supreme court held the suspension illegal, and second suspension May after the House voted impeachment charges. Told of Records. Cahill, who was placed in charge the liquidation of the defunct Bank of Aurora, the state depository Brunk's home town which irregularities in state deposit interest accounts are alleged to have been manipulated by Brunk and the bank officers, told the records he found when he took charge, the Brunk, and the alleged discrepancies in accounts. Ledger sheets, deposit slips, checks, etc., were offered exhibits. Cahill, who testified he was pointed by L. Cantley, state finance commissioner, who was named temporary treasurer by Governor Caulfield Oct. 14 last, when Brunk was first suspended, told of discovery by auditors of the bank of the Brunk rent account, into which state deposit interest money was alleged to have been placed to and of conference here about Oct. with Governor Caulfield. Brunk summoned and was "excited and Cahill said. Bank President There. At another conference the second day, Brunk and R. Adams, president of the Bank of Aurora, were present. Adams said, according to the testimony, that the Brunk rent account would "get us in trouble," when he learned of it, but said Easley assured him he need not worry, that was "fixed Cahill also testified that short time after he took charge of the bank, which closed June 14 last, Brunk came to Aurora and discussed his obligations to the bank and payment the notes. John Madden, Kansas City, Brunk's in his opening attorney, inferred Brunk statement yesterday, (Continued Page

12. May 21, 1931 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, May 21, 1931

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# IMPEACHMENT # TRIAL OPENS JEFFERSON CITY, Mo., May 20. (AP)—Examination of the first wit-nesses in the impeachment trial in the Missouri senate of Larry Brunk, suspended state treasurer, began today with Charles J. Becker, secretary of state, and J. E. Cahill, Springfield, a special deputy state finance commissioner, as the first to testify. Becker testified merely as to Brunk's election as treasurer in 1928, his suspension October 14, last, by Governor Caulfield, his re-instatement December 31, last, when the supreme court held the suspension illegal, and his second suspension May 2, after the house voted the impeachment charges. Cahill, who was placed in charge of the liquidation of the defunct bank of Aurora, the state depository in Brunk's home town in which irregularities in state de-

13. May 21, 1931 Poplar Bluff Republican Poplar Bluff, MO
Article from Poplar Bluff Republican, May 21, 1931

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MADDEN SAYS BANK RECORD SHOWS SIGNS OF ERASURES for Larry Brunk Attorney Charges Alterations in Ledger Sheets of the Aurora Bank. RECORDS EXHIBITED BY BANK RECEIVER Number of Deposits Carried on Sheet Labeled "Contingent Fund,' Says Young Lawyer. Jefferson City, Mo., May amination of the first witnesses the trial in the Misimpeachment souri Senate of Larry Brunk, suspended state treasurer, began today with Charles U. Becker, secretary state, and Cahill, Springfield, special deputy state finance commissioner, the first to testify. Becker testified merely as to Brunk's election as treasurer in 1928, his suspension Oct. 14 last, by Gov. Caulfield, his reinstatement Dec. 31 last, when the supreme court held the suspension illegal, and his second suspension May 2, after the House voted impeachment charges. Told of Records. Cahill, who was placed in charge of the liquidation of the defunct Bank of Aurora, the state depository in Brunk's home town in which irregularities in state deposit interest accounts alleged to have been manipulated by Brunk and the bank officers, told of the records he found when he took charge, the by Brunk, and the alleged discrepancies in interest accounts. Ledger sheets, deposit slips, checks, etc., were offered as exhibits. Cahill, who testified he was appointed by L. Cantley, state finance commissioner, who was named temporary treasurer by Governor Caulfield Oct. 14 last, when Brunk was first suspended, told of discovery by auditors of the bank of the Brunk rent account, into which state deposit interest money was alleged to have been placed to and of conference here about Oct. with Governor Caulfield. Brunk summoned and was "excited and Cahill said. pale," Bank President There. At another conference the second day, Brunk and E. Adams, president of the Bank of Aurora, were present. Adams said, according to the testimony, that the Brunk rent account would us in trouble,' when he learned of it, but said Easley assured him he need not worry. that was "fixed Cahill also testified that short time after he took charge of the bank, which closed June 14 last, Brunk came to Aurora and discussed his obligations to the bank and payment of the notes. service has been A inaugurated betwen distance of 900 and Seattle, miles.

14. June 11, 1931 The Springfield News-Leader Springfield, MO
Article from The Springfield News-Leader, June 11, 1931

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10,000 Chinese Farmers Massacred by Red Troops SEEKS CROWN This of Miss photo Gunda Lee Selling, high school student, who represents Wichita, Kan., at the International Pageant of Pulchritude, in Claiveston, Texas, June 13-17. When an effort was made to get him back here some time ago after he had been excused without being placed on the stand and house managers decided to examine state. abouts still remain unknown and many senators doubted if he would be found before the case ends. Throughout most of the day Brunk was by the house managers relative to details in connection with deduction of interest due on state deposits in the defunct Bank of Aurora. and its partial application on his notes: those notes: and Mrunk's relations with William H. Norwine, bond salesman. and Kenneth Edlin, Chicago security dealer and underwriter. with whom Brunk is alleged to have conspired to sell bonds of the Pierre Choteau apartment, St. Louis. to state depository banks for use as security to the state. NOTHING IMPROPER' The suspended treasurer firmly continued his denials. denied there anything improver or unusual in his relations with Norwine or Edlin: asserted he did not advise Norwine It would be best for him not to come here and testify: said Norwine "lied" in some of his statements before' the house investigating committee to the effect Brunk sided him in selling Pierre Choteau bonds: and explained the loaning of $10,000 to him (Brunk) by Edlin after the Bank of Aurora failed to pay on Brunk's notes. He reiterated: legitimate, and Brunk was questioned by several senators when his examination was finished. Senator Gordon asked Brunk if he did not think he should be responsible for the care of the taxpayers' money, and Brunk answered "yes, but don't think should be responsible for a mistake by a clerk in my office." The treasurer also was asked if he discussed the Brunk rent account and interest deductions with Easley after the disclosures were made and Brunk said he had several times urged Easley to come to Jefferson City and tell the governor he (Brunk) knew nothing about the account or deductions, and Easley said he would, but his attorney would not let him. KNEW NOTHING OF IT' told me emphatically he knew knew nothing about it," Brunk said. Adams testified earlier in the trial that so far as he knew definitely Brunk had no knowledge of the account or manipulations, but that he assumed the treasurer did form what Easley told him (Adams) about Asked If he could get in touch with Norwine now, Brunk said he could not and did not know where Norwine was. The suspended treasurer also said Many Cities Reported Besieged and Anti-Government Troops Slaying Farmers to Cover Advance The Associated Press June slaughter of non-combatant farmers, used by Reds in Kiangsi Province as human shield to cover an advance against government troops, was told in dispatches today from Nanchang. It was estimated 10,000 persons were slain, Despite the reports of Red and bandit incursions, the government insisted its campaign against them was meeting with success and that Generalissimo Chiang Kai-Shek soon would establish headquarters at Nanchang. MORALE SHATTERED Hankow reports, however, said Nanchang itself might fall to advancing Reds as government troops, with morale, were offerIng only feeble resistance. The slaughter near Kiangfu took place when the Reds attacked 3000 government troops. Fearing to charge against haking machine gun fire, the reds drove non-combatants before them. Government troops, knowing the red attackers lurked behind the human shield. opened fire and moved down thousands. Machine guns overheated and jammed as the carnage progressed and the reds broke through to massacre the government troops. SOLDIERS RETREAT Overflowing from Kiangsi province, 40,000 other reds were reported descending upon Yenping in northern Fukien. Provincial soldiers treated before them and foreign missionaires fled to the seaport of Focchow. Then American refugees said the whole country about Yenping was overrun by reds. The city of Changshu was reported captured and Pucchow, ten kilometers from Nanchang, was beFor the moment. the brewing insurrection in south China lost importance in the face of destruction by red armies. The famous "silver bullet" of Chinese to have used Nanking.

15. July 14, 1931 The St. Louis Star and Times St. Louis, MO
Article from The St. Louis Star and Times, July 14, 1931

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EASLEY PLEADS SEATTLE RECALLS GUILTY IN FAILURE MAYOR WHO FIRED OF AURORA BANK LIGHT PLANT HEAD Cashier Who Failed to Appear at Brunk Trial May Get Two Years. CASSVILLE, MO., July Easley, official the state the Bank of Aurora, guilty day to charges growing out of the bank failure Prosecutor Richard McPherson of Lawrence he has two-year sentence for Easley. Sentence deferred until the next term the Barry County Circuit Court, where the case was brought change of venue from Lawrence Easley's plea came as surprise after long battle have charges dismissed. also followed his plea of not guilty Monday. entered after Circuit Judge Emory Smith denied him further delay on the ground two defense witnesses could not appear in court now and on the ground his mother was ill. Failed to Appear at Brunk Trial. Easley cashier the defunct Bank Aurora which carried the Brunk Rent Account. an important item the impeachment proceedings against State Treasurer Brunk. was scheduled to testify in the case but did appear R. Adams. vice president of the bank, testified that Easley had told him that (Easley) had taken money from the state interest count deposited it in the "Brunk Rent Executive Removed From Office in Midst of His Second Term. SEATTLE WASH. July Frank Edwards of Seattle has been recalled office by jority of 13,500 votes. The vote was 35,000 to the the second time that Seattle has removed mayor from office this mothod. Edwards the midst of his term when The recall came Frank Edwards. as the result action in discharging the mayor's muD. and light plant since nicipal power 1905. its Robert Harlan, labor leader and of city council. become president acting mayor. pending elecexecutive by tion permanent the eight other members of the council. Harlin declared will immediately Ross. The eyes the have been this inon Seattle volving public by encouragedenced Roosevelt ment from Gov. of New York and Gov. Pinchot of Ross, following his discharge from the city plant, retained by the State of New York the $220,000.000 St. engineer Lawrence River power project.

16. July 14, 1931 Columbia Daily Tribune Columbia, MO
Article from Columbia Daily Tribune, July 14, 1931

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AURORA BANKER PLEADS GUILTY Easley Brings Trial for Receiving Deposits to an Abrupt End July Easley, former cashier the defunct bank of Aurora, pleaded guilty in circuit court here today charge deposits while the bank insolvent. Easley's abruptly trial which opened after the jury had been selected. postponed until the term of widely attorneys for the state would Whether Easley used witness against Adams, former president the Aurora schedulfor trial next Easley Adams bitterly arraigned yesterday Arthur Curtis, Springfield. special counfor the state, outlined the prosecution's Curtis Easley and Adars appropriated $62,000 from state fund bank for their own that they transferred county deposit shortages other counts: that they appropriated on property ered by mortgage and turned instead of the that they took $20.000 bonds and other securities used security and transferred to other funds Curtis declared bank ficials took parts interest state's transferred the money to their own personal counts and later took out misused At time the vestication was being made and the bank considered. Curt's made signed confession of funds and existence various shortages The guilty plea former official the bank which figured the recent improminently trial State Treaspeachment Brunk Missouri Senate resulting charges failing the sufficient votes surprise The them. after trial Judge Emery Smith orderCircuit over Easley's councel tempts further continuance 80 had been Some case opened Katherine vesterday former employe Gardner stand identifying the bank the correspondence the failed pleaded for Easley's attorneys further the ground produce they be important mother is dangerousthat Easley's and Adams, Both Easley president the former Jefsubpoenaed beginning ferson Brunk were the House of Repremissed by the sentatives' decided use them when the managers nesses ater recall Easley decided not located could he had left the state. testified. claming deducAdams state accounts tions from Brunk's and the bank's credit had been arranged assumed Brunk Easley was with the alleged said he had the deal since Easley matter "fixed" when Adams discovered the deductions

17. July 15, 1931 Carthage Evening Press Carthage, MO
Article from Carthage Evening Press, July 15, 1931

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AURORA BANK CASE SET FOR TRIAL FRIDAY STOCK MARKET PRICES DROP Taken to Springfield on a Change of Venue AGAIN TODAY MUCH INTEREST SHOWN State Is Suing to Recover, Under Bond, Funds on Deposit When Bank Failed (By The Associated Press) Springfield, Mo., July 15.-A suit by the state of Missouri to recover on the bond given by the defunct Bank of Aurora to secure state funds deposited in the bank, scheduled for trial in circuit court here Friday, today was attracting much attention. Among the defendants in the bank's bond case are M. T. Easley, cashier of the closed bank who pleaded guilty at Cassville yesterday to accepting deposits while the bank was in a failing condition and E. R. Adams, president, accused on similar charges and whose trial is set for November at Cassville. Other defendants include directors of the Bank of Aurora. The case was brought here on a change of venue. (By The Associated Press) New York, July 15.-Wall Street was still dominated by the acute financial situation in central Europe today and nervousness increased in the stock market. Stocks broke sharply after drifting uncertainly yesterday and most of Monday, but more unsettled than stocks were the foreign exchange markets, where an abrupt decline in the pound sterling to the lowest level since 1925, was disturbing. The French franc was strong, in the face of weakness in most other currencies. After declines of one to more than six points in many prominent issues, the list stiffened a little in the afternoon and recoveries of about a point from the lowest were numerous. Rails were conspicuously weak. Issues selling off three to about six points included U. S. Steel, American Telephone and Allied Chemical. Cities Service, common, closed at

18. July 15, 1931 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, July 15, 1931

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CURTIS PLEA CONVINCING Easley's Decision to Admit Guilt Follows Fiery Statement by Springfield Attorney For the State The fiery opening statement made for the state by Arthur Curtis. Springfield attorney, today was widely credited with having won the plea of guilty entered in circuit court at Cassville yesterday by M. T. Easley, cashier of the closed Bank of Aurora. who confessed to bank fraud charges. Friends of Easley recalled today that throughout the opening day of his trial Monday he seemed nervous and unable to sit still. His nervousness reached a climax during Mr. Curtis' opening statement of what the state would prove. For an hour and a half Mr. Curtis talk ed. When he finished it was evident that the state had discovered great deal of fraudulent transactions in the bank which Easley had believed were still secret. Talks to Friends Easley's attorney had been prepared to explain some of the dealings charged against their client and E. R. Adams, former president of the Aurora institution who is stated to be tried at Cassville in November But they were not reads to answer the barrage of criminal charges loosed by Mr. Curtis. Before court opened for the second day of the trial yesterday morning. Easley was observed in low-voiced conversation with several friends He asked them if they thought It would be wise to plead guilty They said frankly that the case looked bad. Two Years Probable Promised that Prosecutor Richand McPherson of Aurora would recommend a two-year prison sentence when he comes up for sentencing before Judge Emory E Smith next November, Easley Interest turned today toward suit by the state of Missouri to TC. cover on the bond given by the Aurora bank officers to secure state deposits. This suit. against Adams and Easley and other bank officials, is scheduted for trial Friday in the Greene county circuit court. where it was brought from Lawrence county on a change of venue

19. August 26, 1931 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, August 26, 1931

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CHARGES FILED ON SALESMAN Roscoe Matthews Accused as Guardian of Aurora Boy; Bond Is Arranged Charged with embezzling approximately $2900 entrusted to him as guardian for a 16-year-old boy of Aurora. Roscoe Matthews of 502 South Florence avenue salesman employed by a Springfield investment company, today was free under $1500 bond pending a preliminary hearing August 28. Matthews formerly was employed in the collections department of the now closed Bank of Aurora He left the bank than year before its failure, and often has credited in banking circles with ing furnished information to the state finance department which resulted in the bank's tangled affairs first coming to light. Matthews reported to have been arrested here by Constable Alfred Pendleton of Aurora upon the charge against him in Justice D. L. Patton's court at Aurora uncle of Ward E. Newbold, Aurora youth, charged that Matthews had converted his own use approximately $2900 the residue of life insurance left the boy about 10 years ago at the time of his mother's Prosecuting Attorney R. K. McPherson of Lawrence county said today that he had filed the charge against upon an affidavit signed by Ward. After he left the Aurora bank. Matthews opened a motor agency of his own at Monett, but this venture was not successful. It has been reported that the Aurora bank about this time. abruptly foreclosed a mortgage against property owned by him, and that he then provided the tip which put state bank examiners on the trail of irregularities and fraud in the depository.

20. March 21, 1932 The Springfield Press Springfield, MO
Article from The Springfield Press, March 21, 1932

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ARE HELD IN AURORA AURORA, Mo., March 21.-Simple funeral services, attended by relatives and intimate friends, were held here Sunday afternoon for M. T. Easley, 65, who died Friday aft. ernoon. Easley, former cashier of the defunct Bank of Aurora and former bank official at Fair Play, Mo., was to have appeared in Barry county circuit court Monday to be sentenced on plea of guilty to assenting to deposits in an insolvent instution. He also was awaiting trial in Lawrence county circuit court on charges in connection with the bank's failure. His nearest relative was his mother, Mrs. Jane Easley, 84, at whose home he died.