10109. Canton Trust Company (Canton, MO)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: March 26, 1925
Location: Canton, Missouri (40.130, -91.520)

Metadata

Model: gpt-5-mini
Short Digest: a4feb0a1

Response Measures

Full suspension, Books examined

Other: Planned merger/takeover by Bank of Canton; state examiners arrived to inspect books.

Description

Newspaper reports (all dated March 26, 1925) state an erroneous St. Louis report that the bank had closed led to a run with $10,000 withdrawn; the bank then closed its doors and planned a merger with the Bank of Canton while state examiners investigated. No reopening is reported; closure/merger appears permanent in these dispatches.

Events (3)

1. March 26, 1925 Other

Newspaper Excerpt: State bank examiners arrived and an investigation into the bank's affairs (bearing on probe into Millspaugh matter) was begun; tentative plans for another Canton bank to take over the Canton Trust Company were reported by officials as soon as examiners complete their work and affairs are straightened out.
Source: newspapers

2. March 26, 1925 Run

Cause: Rumor Or Misinformation
Cause Details: Erroneous report in a St. Louis morning newspaper that the bank had closed, which caused depositors to withdraw about $10,000.
Random Run: Yes
Random Run Snippet: Erroneous St. Louis report that the bank had closed its doors
Measures: Bank officers closed the doors; state bank examiners and investigators were called in; tentative merger planned with the Bank of Canton.
Newspaper Excerpt: Failure of the Canton Trust Company ... was caused by the errorneous report published in St. Louis morning newspaper that the bank had closed its doors ... A run on the bank resulted, $10,000 was withdrawn by depositors.
Source: newspapers

3. March 26, 1925 Suspension

Cause: Rumor Or Misinformation
Cause Details: Closing/suspension attributed to depositor uneasiness and withdrawals triggered by press reports/charges against Millspaugh and erroneous reports that the bank had closed; officers said the institution was solvent but weakened by the run.
Newspaper Excerpt: The Canton Trust Co. of Canton, Mo. ... closed its doors yesterday and planned a merger with the Bank of Canton. Secretary Page told the St. Louis Post-Dispatch that the trust company was solvent, but its position had been weakened because of a run.
Source: newspapers

Newspaper Articles (7)

1. March 26, 1925 Fulton Daily Sun-Gazette Fulton, MO

Article from Fulton Daily Sun-Gazette, March 26, 1925

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Article Text

PROBE AT CANTON NOW (International News Service) Canton, Mo. March 26-Failure of the Canton Trust Company. of which F. C. Millspaugh, deposed finance commisioner, was once director. was caused by the errorneous report published in St. Louis morning newspaper that the bank had closed its doors, President F L. Lloyd of the trust company declared today. A run on the bank resulted, $10,000 was withdrawn by depositors. H. C. Martin and W. L. Vandeventer, bank ex aminer and assistant attorney general, respectively, reached here this morning and began an immediate investigation of the defunct concern They readily admitted that the investigation bears on the probe into the Millspaugh matter. hundred The 1923 sale amounted to 2,550,000 pounds and made an average of $19.57. The 1924 crop was reduced to $1,755,000 pounds and so far has brought $337,000 at an average price of $19.44. The final average will be between $20 and $21, L. B. Benner, president of the company said. The great difficulty in engaging in tobacco culture is the initial cost For field of twelve acres there must be erected a tobacco barn approximately 90 feet in length, 60 in width and 40 in height. At present lumber prices this is no small item. Once the barn is erected, however, the cost is reduced to that of planting and maturing the crop. Often the first crop will pay for the barn and leave a nice profit. Leavenworth County went in for tobacco culture a dozen or more years ago and several large barns were erected. There was a slump in price and labor conditions became difficult, so the culture was given up. Now there is a revival of interest in tobacco growing.

2. March 26, 1925 Joplin Globe Joplin, MO

Article from Joplin Globe, March 26, 1925

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Otto Continues Plans Investigation of Official Conduct of Suspended chan's His Appearance Before Senate Probers. Associated City, March William Zuendt, former president First National Jefferson today assumed charge the state finance department place of Frank Millspaugh. while Attorney General Robert Otto continued his plans for Investigation the official conduct the suspended finance commissloner. assistant attorney general leaving for northeast Missouri inquiry. The attorney general announced today that special grand jury Investigate charges against Millspaugh connection with the the Citizens Trust Company Gorin. be called Scotland county. May when the circuit there convenes its regular term. Trust Company Closes. Potter. assigned pursue the inquiry. today for Canton. where. according to the Canton Trust Company closed its doors today and merger with Bank Canton. The closing due. disthe bank depositors had been uneasy because the investigation. understood that from Canton that will Gorin look into the records of the defunct Citizens Trust Company and check them against the statement Roy Myers. former the Institution which involves charges against Millspaugh and Jerome McCutchan. former head the American General Indemnities Corporation. McCutchan was 10 have appeared today before the senate general vestigating committee testify garding transactions in certificates deposit and regarding his connection with the Gorin bank. but arrest Louis yesterday charge of larceny of note from the trust company of Gorin precluded his appearance. Martin, special deputy finance In charge the Citizens Trust Company, under subpoena teatify before committee today. other business, understood connection with the Canton Trust Company closing, prevented his pearance. Letter Made Public. General Otto today made public letter wrote to Finance Commissioner Millspaugh March information why prosecution had not been begun Citizens and requesting the tions McCutchan with the institution. This letter was not swered, the attorney general although record telephone calls showed Millspaugh had Otto's office March when the torney out of and information that had ceived letter and would regarding when he Charles Moore. prosecuting torney Scotland county. had ference with Attorney General Otto today relative investigation: Records from the Citizens Trust Company were here by the Scotland county prosecutor inspection of attorney general. Contained the written more than fourteen pages long. of notes given the bank by McCutchan. Jefferson City, March Assistant Attorney General left late today accompany Special Deputy Finance Martin ton, where, according the Canton Trust Company closed today and planning the Bank Canton. the closing trust the had state finance department late Suspended State Finance Frank formerly stockthe Canton trust company. for going made Attorney General Robert Vandeventer the two assistant atorneys assigned by Otto to into charges against Millspaugh connection with the failure the Citizens Trust pany Gorin. Certificates Issued. Frank Page, Canton Trust Company testified sonate general committee recently that has issued (Continued

3. March 26, 1925 Evening Star Washington, DC

Article from Evening Star, March 26, 1925

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Missouri Bank Closes. ST. LOUIS, March 26.-The Canton Trust Co. of Canton, Mo., with which F. C. Millspaugh, suspended Missouri finance commissioner, was affiliated, closed its doors yesterday and planned a merger with the Bank of Canton. Secretary Page told the St. Louis Post-Dispatch that the trust company was solvent, but its position had been weakened because of a run.

4. March 26, 1925 The Springfield News-Leader Springfield, MO

Article from The Springfield News-Leader, March 26, 1925

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Article Text

PROBE INTO STATE BANK IS Run on Northeast Missouri Institution Said to Be Result of Disclosures as to State Fiance Department. By Associated Press. JEFFERSON CITY, Mo., March Attorney General Vandeventer late today accompany Deputy Canton, dispatches, Canton company closed today and planning merger with the Bank Canton. word of the closing the trust company or proposed had received finance Suspended State nance Frank Millspaugh formerly holder the Canton Trust company. announcement of the reason for Mr. Vandeventer going ton made by Attorney Robert attorneys assigned duct into against Millspaugh the failure Citizens Trust Gorin Frank Page, secretary of the Canton testified before the general gating trust company issued cates of deposit to 000 named Myers, former cashier the Citizens Trust Gorin, charges against Millspaugh, charge from Gorin For of deposit Page testified before the commit gave notes, only lected the time he appeared before the dispatches here because depositor. who become uneasy because of the grand tigation Milispaugh's official conduct. Last Statement. According financial the state finance Canton Trust total of $370,470, deposits $279,067 capital $50,000. The loans amounted to $289,349. Lloyd the F. of his stock in the company when he as finance JEFFERSON CITY, Mo., March Zuendt, president the National Jefferson City, today assumed department Frank Millspaugh, Attorney GenRobert Otto continued plans for of the ficial conduct suspended finance one assistant general northeast Missouri to begin the in quiry. The attorney general announced that special grand jury investigate charges against Millspaugh connection with the failure the Citizens Trust of Gorin, county, May 18, when the there for its reg W. Vandeventer, with Potter assigned pursue inquiry, left today for Canton, where, according news dispatches, Canton Trust pany its today and the Bank Canton. was dispatches stated, the bank by depositors, who become because the Millspaugh derstood from Vandeventer will go to the the against the statement Myers, former ccashier of the stitution. involves charges against Millspaugh and Jerome head the American General Indemnities poration. Delayed By Arrest. have appeartoday before the general to testify regarding his transactions in tificates of deposit regarding his connection Gorin (Continued on Page Ten)

5. March 26, 1925 Macon Chronicle-Herald Macon, MO

Article from Macon Chronicle-Herald, March 26, 1925

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CANTON TRUST BANK BREAKS Bank in Which Millspaugh and McCutchan Interested Closes Doors CANTON. MO., March Canton Trust Company of which Frank Millspaugh suspended state finance commisioner of Missouri was at one time cashier, closed its doors Wednesday morning. Its officers are awailing the arival of state bank emaxiners. F. L. Lloyd, president of the Can ton Trust Company, in a statement issued Wednesday noon. said that the company was solvent and that he be. lieved depositors would lose nothing. He said, however, that unfavorable criticsm by the press had made the closing necessary. Making Check Up "A check-up," he said is now bemade and soon as examiners ing have completeted their work and the affairs of the bank have been traightened out, another Canton bank will take over the Canton Trust Tentative plans Company. have already been made for this. The statement follows: "This bank within the last few days has suffered considerable withdrawal of deposits due to the unfavorable criticism in the public press of the commisioner of finance, who, few years ago, was one of our stockholders and officers. Blamds Press "Whereas the uneasiness of the company's depositors has been fur ther augmented by the wrongful statements in the newspapers of general circulation in this community, regardless of the fact that the Canton Trust company is solvent, it believed to be advisable to discontinue at this time. "Ttenative arrangements have been made with one of the other banks in Canton to take over the Canton Trust company as soon as a check-up has been made by state bank examiners. for whom we are now waiting. "We are quite certain that depositors will lose nothing." There was no run on the bank: only a steady withdrawal of depositors, according to the officers. The closing came without warning. When citizens attempted to enter the bank Wednesday morning they found the doors closed and locked. There was no sign indicating what the trouble might be. Both Jerome B. McCutchan and Frank Millspaugh were at one time conected with the Canton Trust company. They have no connection with the bank now, as oficers, but they are connected in a financial way it was admitted. Have Son. Announcements have been received here of the birth of son, born Wednesday to Mr. and Mrs. Frank Barr at their home in Louisiana Mo. The little one has been given the name of Carl Arron.

6. March 26, 1925 Macon Chronicle-Herald Macon, MO

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OTTO WANTS TO HURRY PROBING OF BANK CASES Will Seek to Take Cases to St. Louis County for Action by Grand Jury OPERATIVES AT WORK Will Go Into Every County Where Bank Has Failed to Gather Facts JEFFERSON CITY. Mar 26-Attorney General Robert Otto and memhers of his legal staff were in closed session today discussing possible recourse that might allow the state probe into the affairs of ousted finance commissioner Frank C. Mills- paugh to be speeded up. Inability to obtain prompt action in Stoddard county where alleged ir- regularities are said to have existed have resulted in an attempt to change the venue to St. Louis. Meantime operatives of the state banking and finance department are spreading over the state for comprehensive statement of facts surrounding all bank failures in Missouri that occurred under Millspaugh's regime. Banking department officials were also awaiting word from examiners from Canton. Mo., where the bank in which Millspaugh was former official and where there it is reported $50,000 in state funds had been deposited. CANTON Mar 26-Failure of the Canton Trust Company of which oustif state finance commissioner was once director was caused by erroneous reports in St Louis morning newspaper stating that the bank "had closed its Goors)" President F L. Lloyd declared today. A subsequent run resulted in the withdrawal of $10.000 in deposits he said, Martin and W. I.. Vandeventer. bank examiner and assistant attorney general respectively. eached here today and began an offi- It was readily seen that the investi- gation here bears on the probe now being made on the afafirs of Frank C. Millspaugh in the state.

7. March 28, 1925 Ralls County Record New London, MO

Article from Ralls County Record, March 28, 1925

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B. Y. P. U. STATE CONVENTION. The Missouri State Convention of the Baptist Young People's Union will be held at Springfield, Mo., April 16 to 19, 1925. About 1,000 young people from all over the state are expected to attend, and Springfield promises to furnish unusual entertainment. The largest Boys' Scout Band in the world is located at Springfield and will assist in entertaining the convention. All delegates will be entertained on the Harvard plan-i. e., bed and breakfast furnished. No registration fee will be charged and special railroad rates will be available. Every young person can well afford to attend this great convention. Speakers of national repute will be on the program. Everybody welcome. The Canton Trust Co., of which Frank C. Millspaugh, suspended state finance commissioner, was an officer, closed its doors Wednesday. The bank is solvent, but a heavy run on it, occasioned by charges against Millspaugh, caused the suspension of business. Born, Wednesday evening, to Mr. and Mrs. Harvey Painter of Kewanee, III., a fine 9-pound girl. Mother and daughter reported doing nicely. Mrs. C. O. Painter of this city went to the home of her son Thursday night. For baby's croup, Willie's daily cnts and bruises, mother's sore throat or grandma's lameness—Dr. Thomas Eclectic Oil-the household remedy. and 60c. Much responsibility for the troubles of the world rests on the shoulders di those who complain the loudest about them. Wine sold for three or four cents a quart in the early Roman empireand look what happened to the Roman empire. When you are in a hurry, the fellow greeping along in the car just ahead seems to have no conception of the flight of time. Our old friend J. M. Weekly of Center sends a renewal for the Old Reliable this week. The salvation of most of us lies in the fact that we are not as good as we are and other folks are not as bad as we think they are. A good borrower is never broke. Persistency wins more medals than pedigree. A gasoline appetite quickly ruins a bicycle income. A hero is one who gets up before the alarm clock goes off. Some of our gardeners planted potatoes on St. Patrick's Day. A man may be down, but he's never out when he's in-for a term. A pessimist is a person who thinks heaven is paved with gold bricks. There is more safety in a good pair of legs than in a good pair of fists. Charley Kennedy says it is reported around town that King Tut is dead. There were no bees in this country until after the white man came into it. Kansas has raised the price of a marriage license from $3 to $3.50. Too much. Paying tribute never costs much, which is one reason for its great popularity. The cross-word puzzle has demonstrated the old truth that it pays to be square. The scandal market this week remains firm, with the public demand still strong. Barber shops never appreciated the value of mirrors until the bobbing trade got started. All who walk are not jays, but the per cent of jay-walkers seems to be entirely too large. When you feel the inclination to say something mean about one of your friends, forget it. Queer, isn't it, that the things you want to know are the things your friends never tell you. It is becoming increasingly difficult to find an audience without a fair sprinkling of bald heads. In these days of shorter skirts and abbreviated hair, it takes a birth certificate to tell her exact age. The United States Supreme Court having held the motor vehicle act constitutional, that makes it unanimous. If you are not good-looking, you may at least be thankful for the fact that you will never get stuck on yourself. Dr. Sun Yat Sen. the South Chinese leader. almost equaled Lenine's record for "deaths" before he finally died.