10161. Bank of Darlington (Darlington, MO)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 19, 1927
Location
Darlington, Missouri (40.198, -94.396)

Metadata

Model
gpt-5-mini
Short Digest
1292ffe0

Response Measures

Full suspension, Books examined

Other: Board closed bank and asked state finance department to take charge; state examiner instructed to take over.

Description

Newspaper accounts (Oct 1927) report a run by depositors after rumors of an examiner's discovery of $16,000–$18,000 discrepancy/overdrafts. Directors closed the bank and asked the State Finance Department to take charge; the bank remained closed and later paid dividends to depositors, consistent with permanent closure/receivership. Run triggered by rumors of the discovered discrepancy; underlying problem was bank-specific overdrafts/mismanagement.

Events (3)

1. October 19, 1927 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors spread after a bank examiner discovered discrepancies/overdrafts (~$16,744) which precipitated heavy withdrawals.
Measures
Directors closed bank; notified State Finance Department; state examiner instructed to take charge.
Newspaper Excerpt
rumors of the finding caused run on the institution yesterday.
Source
newspapers
2. October 20, 1927 Receivership
Newspaper Excerpt
The state finance department was asked to take over the institution. Fred Heyde, state bank examiner, has been instructed ... to take charge of the bank.
Source
newspapers
3. October 20, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of an apparent $16,000–$18,000 discrepancy/overdrafts in the bank's books led directors to close the bank and place it in the hands of the state finance department.
Newspaper Excerpt
The Bank of Darlington ... was closed today by its board of directors due to an apparent discrepancy in accounts. The state finance department was asked to take over the institution.
Source
newspapers

Newspaper Articles (14)

Article from Jefferson City Post-Tribune, October 20, 1927

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InstituDarlington, Mo., Audit of tion Asked When Found Books Shortage. THREE Were Because They Friends of the Is Returned and Money Bank Will Soon Reopen. DARLINGTON, Mo., Oct. desire not to woman's of the bank barrass depositors worked by turning down which she for which there were three checks insufficient funds, was indirectly closing of the Bank sponsible for the here today, bank offiDarlington said. state finance departasked to take over the ment was stitution. Roush, assistant cashMrs. Mary the kind hearted woman, officials said, declaring there bank with no hint anything wrong accounts except overdrafts the to about $17,000, which amounting had been covered. The condition was disovered by bank examiner two weeks ago, and the finding caused on the institution Owings president of Oliver H. the and James is cashier. The Bank Darlington, Darlington, Gentry county, with proximately $83,000 total resources, closed today board of rectors due to apparent discrepaccounts, announced ancy the state finance department. telegram the department cashier, who percent of the bank's Board directors desire place the Bank of Darlington for auditing the bank Finance department officials said this indicated there was discrepshortage of some kind. ancy also was disclosed the ficials that state bank examiner found discrepancy of $16,744 the on the individual ledgof the institution October This made however, during the was up, examination, said. Fred Heyde, state bank examiner, has been instructed Darlington and take charge the bank. Ownings president and Mrs. Mary cashier. The statement of the institution to the finance department showed $10,000 capital, $10,000 surplus, $10,000 undivided profits, approximately deposits, loans, and $82,869 total resources.


Article from The Kansas City Post, October 20, 1927

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RUN CLOSES BANK Overdrafts Blamed for Darlington, Mo., Withdrawals. THINKS' DARLINGTON, MO., Oct. Bank of Darlington. deposits of $51,174 at the time of the last state report, was closed today by its directors after run of withdrawals started. recent state examination ported have revealed drafts had been permitted by Mary Rouse, sistant cashier. Directors the made good that amount but reports concerning the overdrafts believed have been exaggerated and to have caused the run. Owings, farmer, is president the bank. The capital, surplus the time $30,000 Fred Heyde, assistant in the finance route here from Jefferson City to take charge. Darlington in Gentry county.


Article from The Sedalia Democrat, October 20, 1927

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State Finance Department In Charge of Affairs of Darlington Institution Associated Press. Mo., Oct. woman's desire to embarrass depositors bank in which worked by turning down their checks which there insufficient funds, indirectly sponsible the closing of the Bank of Darlington here today, bank officials The state findepartment was asked to take institution. Mrs. Mary Roush, assistant cashier, was the kindhearted bank officials said, declaring there hint anything wrong the accounts except overdrafts amounting about which had been covered. The condition was discovered by bank examiner two weeks ago, and rumors the finding caused run the institution yesterday. Oliver Owings is president of the bank, and James cashier. JEFFERSON CITY, Mo., Oct. Bank Darlington, Darl ington, Gentry county, with approx$83,000 total today by its board direcdue and apparent discrepaccounts, announced state finance department. telegram the department Emsley James, cashier, per cent the bank's board of directors desires place the Bank of Darlington hands for audition of the ledger. Finance department officials said morning there was discrepshortage of kind. also disclosed by the ficials bank examiner found discrepancy of the accounts individual ledger the institution October This made up, during the examination, said. Fred Heyde, state bank aminer, has been instructed Darlington and take charge bank. Ownings president, and Mary Rouse, assistant cashier last statement of the the finance department $10,000 capital, $10,000 $10,000 undivided profits, proximately deposits, loans and $82,869 total resources


Article from The Sedalia Democrat, October 20, 1927

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against Arthur Wittlinger. Plaintiff asks judgment for interest. AFTER TURNING BUILDING DOWN CHECKS State Finance Department In Charge of Affairs of Darlington Institution Missouri embarrass Meeting especially for that in which the council Friday night down their frame building code suitable insufneeds and problems of indirectly dalia. The code probably closing the passed upon later date. Bank of Darlington here Thursday, The council will have for its bank officials The state consideration building code department asked take recommended National institution. Board of Fire Underwriters. This Mrs. Mary Roush, assistant code applicable cities of larcashier, the kindhearted and such probably bank officials declaring elaborate for the particular there was no hint of anything problems Sedalia. with the accounts except As ordinance the code will overdrafts about apply only buildings and which had been covered. buildings altered repaired. The condition was discovered will provide regulations governbank examiner weeks construction, alteration, rumors finding caused equipment, repair removal run institution yesterday. buildings other structures. Oliver Owings president Specify Construction. the bank, and James Fireproof construction specified cashier. JEFFERSON CITY, Missouri Bank Darlington, at ington, Gentry county, approximately $83,000 total resources, closed Thursday by board of due and apparent discrepancy accounts, announced the state finance department. telegram the department Emsley James, per cent the bank's stock, said: board of directors desires place the Bank Darlington hands for audition of the ledger. Finance department officials morning there discrepkind. also disclosed by the ficials state bank examiner found discrepancy of the accounts individual ledger institution October This made however, during the examination, Fred Heyde, state bank aminer, has instructed Darlington and take charge bank. Ownings president, Mary Rouse, cashier. The statement the institution finance department showed $10,000 capital, $10.000 plus, $10,000 undivided profits, proximately $51.00 deposits, loans and $82,869 total resources


Article from Poplar Bluff Republican, October 20, 1927

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GIRL WRECKS SMALL BANK Woman's Desire Not to Embarrass Depositors by Turning Down Checks Ends In Failure. CONDITION CAUSED RUN ON THE BANK Mrs. Mary Roush, Assistant Cashier, Partially Blamed for Failure of Bank of Darlington. By Associated Press. Darlington, Mo., Oct. desire not to embarrass depositors of the bank in which she worked by turning down their checks for which there were insufficient funds, indirectly responsible for closing of the Bank of Darlington here today, bank officials said. The State Finance Department asked to take over the institution. Mrs. Mary Roush, assistant cashier, was the kindhearted woman, bank ficials said, declaring there was hint of anything wrong with the counts except overdrafts amounting to about $17,000, which had been ered. The condition was discovered by bank examiner two weeks ago, and rumors of the finding caused run the institution yesterday. Oliver H. Owings president the bank, and James is cashier. State Takes Charge. Jefferson City, Oct. The Bank of Darlington, at Darlington. Gentry county, with approximate$83,000 total resources, was closed today by its board of directors due an apparent discrepancy inaccounts, it was announced at the state finance department. A telegram to the department from Emsley James, cashier, who owns percent of the bank's stock, said: board of directors desires place the Bank of Darlington in your hands for audition the bank ledger." Finance department officials said this indicated there discrepancy or shortage of some kind. Found Discrepancy. also was disclosed by the officials that state bank examiner found discrepancy of $16.744 in the accounts on the individual ledger of the institution October This was made up, however, during the examination, was said. Fred W. Heyde, state bank examiner, has been instructed to to lington and take charge of the bank. H. Ownings president and Mrs. Mary Rouse, assistant cashier. The last statement of the institution to the finance department showed $10,000 capital, $10,000 surplus, 000 undivided profits, approximately $51,000 deposits, $64,000 loans and $82,869 total resources.


Article from The Daily Republican, October 20, 1927

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WRECKS BANK Desire Not to EmDepositors by Turning Down Checks Failure. CONDITION CAUSED RUN ON THE BANK Mrs. Mary Roush, Assistant Cashier, Partially Blamed for Failure of Bank of Darlington. By Associated Press. Darlington, Mo., Oct. desire not to embarrass depositors of the bank in which she worked by turning down their checks for which there were insufficient funds, was indirectly responsible for the closing of the Bank of Darlington here today, bank officials said. The State Finance Department was asked over the assistant cashier, Mrs. Mary Roush, was the kindhearted woman, bank ficials said, declaring there was hint of anything wrong with the counts except overdrafts amounting about $17,000, which had been covThe condition was discovered by bank examiner two weeks ago, and rumors of the finding caused run on the institution yesterday. of H. Owings president Oliver James is cashier. and State Takes Charge. Jefferson City, Oct. The Bank of Darlington, at DarlingGentry county, approximatewas closed $83,000 total resources, today its board of directors due apparent discrepancy at the state finance department. the department Trom telegram to James, who owns Emsley percent of the bank's stock, said: board of directors desires place the Bank of Darlington in your hands for audition the bank ledger." officials said Finance department indicated there was discrepancy shortage some kind. Found Discrepancy. also was disclosed by the officials state bank examiner found that $16,744 in the accounts discrepancy on the individual ledger of the institution October This was made up, however, during the examination, was said. Fred Heyde, state bank examiner, has been instructed to go to Darlington and take charge of the bank. Ownings is president and Mrs. assistant cashier. Mary Rouse, The last statement of the institution department showed to the finance surplus, $10,$10,000 capital, $10,000 000 undivided profits, approximately $64,000 loans and $51,000 deposits, $82,869 total resources.


Article from Tri-County News, October 21, 1927

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BANK OF WITH SHORTAGE OF $17,000 The Bank of Darlingfailed to open its doors for business yesterday and affairs have been over the state commissioner statement by Cashier James the effect that the action the board directors brought the discovery of in the bank's books. This is said to have having failed enter in the books depositors This had been for years or without the and during that the bank had number times. Albany Capital quoted Mr. James having stated that he believed the depositors not lose The closing the bank was direct result severe the bank Tuesday by depositors.


Article from St. Joseph Gazette, October 21, 1927

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DISCREPANCY CLOSES BANK Darlington Institution Seems Victim of Mistake in Book- Darlington, Mo., Oct. 20. (Special) The Bank of Darlington, with approximately $83,000 total resources. was closed today its board of directors due to an apparent discrepancy in accounts, It was announced today. The state finance department was asked to take over the institution. A woman assistant cashier. Mrs. Mary Roush, was/indirectly responsible for the closing of the bank. officials said. Her desire not to embarrass depositors of the bank by turning down three checks for which there were insufficient funds was given as the cause. Bank officials said there was no hint of anything wrong with the aocounts except overdrafts amounting to about $17,000. which had been covered. The condition was discovered by bank examiner two weeks ago, and rumors of the discovery caused run on the bank yesterday. Oliver H. Owings is president of the bank, and E. C. James is cashier.


Article from The Gallatin Democrat, October 25, 1927

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BANK OF DARLINGTON CLOSED WITH SHORTAGE OF The Bank of Darlington, Darling ton, Mo., failed to open its doors for last and affairs have been turned the state finance. ment Cashier James the effect that the action by the board of directors was brought about by the discovery of discrepancy of in the books. This said to have been caused by keeper having failed to enter the books checks by depositors. This practice had been going for some two years without the and during that time the bank had been examined number of times. Yesterday's Albany Capital quotJames having stated that he believed the depositors will not lose. The closing of the bank was direct result of the bank last by City News.


Article from Gallatin North Missourian, October 27, 1927

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BANK OF DARLINGTON CLOSED WITH SHORTAGE OF $17,000 The Bank of Darlington, Darling ton. Mo., failed to open its doors for business last Thursday morning, and its affairs have been turned over to the state commissioner of finance. A statement by Cashier E. James is to the effect that the action by the board of directors was brought about by the discovery of discrepancy of to $18,000 in the banfl's books. This is said to have been caused by bookkeeper having failed to enter in the books checks drawn by depositors. This practice had been going on for some two years SO without the cashier's knowledge, and during that time the bank had been examined number of times. Yesterday's Albany Capital quoted Mr. James as having stated that he believed the depositors will not lose The closing of the bank was direct result of run on the bank last Tuesday by City News.


Article from The King City Chronicle, October 28, 1927

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THREE COUNTY NEWS SERVICE GENTRY ANDREW DEKALB DeKALB COUNTY NEWS Maysville Alfred Hammer and wife, who left here some three weeks ago for a trip east returned recently. They went to Chicago and from there Mr. Hammer went on to New York in the interest of the Herman Swike Mercanthe Company or this place. Mr. ..ammer says he found condition and an atmosphere of hopefulness among business men and an air of expectancy 01 better things in the general domain of business. "All the business men that I saw," said Mr. Hammer, "were very much interested in the condition of the farmer, and seemed impressed with the idea that the farmer is the foundation and the backbone of our general business life. F. W. Law counts the squirrels he kills each year. He says that since the first of June he has kiled 150 of the animals. James B. Dice, 70 years old, died at his home some miles southeast of Maysville last Friday morning. Death was due to heart trouble from which he had been suffering for several months. Mr. Dice was a lifetime resident of DeKalb coun.y. He was born in the neighborhood in which he died. He farmed and handled stock on an extensive scale. Mr. and Mrs. J. S. Sisson returned Friday night from Baldwin, Kansas, where they had been visiting for about week. Mr. Sisson was at one time a student in Baker University, located at Baldwin. Stewartsville T. A. Ivie became the owner last week of the well improved farm owned by John Shedrick. This farm adjoins on the east with the 200-acre farm purchased by Mr. Ivie. This will make Mr. Ivie owner of a little over 500 acres of land in DeKalb county. Mr. Joseph Delaney recently purchased the Vaughn residence in the northeast part of Stewartsville, from Chas. Limb, administrator of the Mrs. S. S. Vaughn estate. Consideration was $900. Mr. and Mrs. H. H. Hensel, who have been conducting a General Merchandise store here, have purchased the stock belonging to the Farmers Union at Union Star, and expect to move there November 1. If they do not succeed in disposing of their stock here previous to that time, they will move it to the new location. Mrs. Hensel is at Union Star this week invoicing the stock. James F. Bellis of St. Joseph but who formerly resided here and also at Union Star, will move there and assist Mrs. Hensel in running the store, as Mr. Hensel is afflicted with rheumatism and unable to work. Osborn Miss Fairie Jones, daughter of Mr. and Mrs. Jessee Jones of this city, won first honors in the tryout for the the Varsity Debate Squad in Woman's Division at Missouri U. Two of the other contestants were chosen and the one winning second place was a former member of last year's squad. Earl Anderson had been cutting corn with a binder with four horses and had left the binder in charge of his little son and gone back to help shock. The horses became frightened and ran away. The boy managed to get off the machine and was not injured in any way. The binder was completely wrecked. Dr. Wasson Gale of Madison, Wis., was here Sunday visiting his parents, Dr. and Mrs. W. S. Gale. He was on his way down to Kansas City to attend the International Medical Association Convention, being a delegate from the State University there, where he is teaching this year. From Kansas City he will go to St. Louis to read a paper before the students of the Barnes Medical College. Miss Lois Elizabeth Lawson and Mr. Carl Quentin Campbell were united in marriage in the M. E. church recently. Rev. E. O. Basye, former Pastor, read the service before an altar of ferns, palms, georgeous oak leaves and yellow chrysanthemums. The double ring ceremony was used. Union Star Mrs. M.d Miller, who has been in charge of the Commercial Hotel here moved last Saturday to her farm south of town and Mr. and Mrs. C. H. Bishop are now operating that place. Irvin Lester Stevens, son of Mr. and Mrs. Bert Stevens, and Miss Louise Dawes, daughter of Mr. and Mrs. Carl Dawes, were married by Rev. J. H. Keplinger at the home of the bride's grandparents, Mr. and Mrs. A. Hickox recently. They left immediately for Omaha where they will make their home. Mr. Stevens has a position with the Douglas County Farm Bureau at that city. national organization is asking them for double the membership which they had last year. Half of the money raised from the memberships at $1 each, goes to the national organization and half of it is kept for local charities. The supplies, which have been received for the roll call, will be distributed to the chairmen as soon as they are appointed and every effort will be made .0 complete the drive on Friday, November 11. The Bank of Darlington failed to open for business last week following a run on the bank Tuesday afternoon by a large number of depositors. The bank officials have notified the state finance commissioner to send an examiner to take charge of the bank. Stanberry Mrs. W. A. Shisler died at her home, three miles east of Stanberry, recently. Mrs. Shisler had been an invalid for several years, but had not been seriously ill until the day of her death. The family was preparing to move to Stanberry when Mrs. Shisler took ill and her condition turned rapidly worse until her deal h. An apple tree belonging to D. C. Thomas now in bloom. C. S. Berndt, cashier of the Farmers State Bank, was honored recently, when he was elected chairman of Group Three of the Missouri Bankers Associat Mr. Berndt had been secretary of this group for the past few months, his appointment coming after the secretary had resigned from his duties to take over another position. The meeting was an annual gathering of the bankers of Group Three. There are 11 counties represented in the Group and approximately 150 banks are included in the district. The Group also includes the banks in St. Joseph, so the honor that has been conferred upon Mr. Berndt is high one. John H. Norman, former Stanberry merchant, was found dead a: his home recently by his wife. Mrs. Norman had become alarmed about the silence of her husband and when she found him. he was dead. Mr. Norman had been ill for the past two years and had been a constant sufferer from heart trouble. It was this illness that finally caused his death.


Article from New Hampton Tribune, November 2, 1927

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DISCREPANCY CLOSES BANK Darlington, Mo., October 20. (SpeBank of Darlington, with approximately 83,000 total resources, was closed today by its board of directors due to an apparent discrepancy in accounts, it was announced today. The state finance departmnt was asked to take over the institution. woman assistant cashier, Mrs. Mary Roush, was indirectly responsible for the closing of the bank, officials said. Her desire not to embarass depositors of the bank, ofturning down three checks for which there were insufficient funds was given as the cause. Bank officials said there was no hint of anything wrong with the accounts except overdrafts amounting to about which had been cov ered. The condition was discovered bank examiner two weeks ago and of the discovery caused run on the bank yesterday. Oliver Ewings president of the bank and James is cashier.


Article from The Maryville Daily Forum, December 21, 1928

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Darlington Banker Acquitted of Charge E. C. James was Indicted by Grand Jury for Accepting Deposits When His Bank Was Insolvent. Albany, Mo., Dec 21-A jury in the Gentry county circuit court. returning a verdict eight minutes after it retired, at 7 o'clock Wednesday night. acquitted E. C. James, cashier of the closed Bank of Darlington, of a charge of accepting deposits when he knew the bank was in a failing condition The jury found that the bank was solvent. but was closed because of a run The bank closed Oct. 19, 1927 A dividend of 75 per cent has been paid to the depositors and another of the remaining 25 per cent is expected to be made in the near future James was indicted by the Gentry county grand jury in September 1928


Article from St. Joseph Gazette, September 12, 1929

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Acquit Woman Charged in Failure of Darlington Bank ALBANY. Mo., Sept. 11-A jury in the Gentry County circuit court here today acquitted Mrs. Mary Rouse, former bookkeeper and assistant cashier of the defunct Bank of Darlington, of a charge of making false entries' on the bank's reodoors were closed October, 1927, after depositors had made run on the bank. Mrs. Rouse had honored checks against insufficient accounts, and had pending further de: posits, it was brought out at the trial, held before Judge D. Reedes. E. C. James, former cashler, was acquitted in December, 1928, of similar charge. Since closIng. the bank has paid depositors 75 per cent of their accounts.