10221. Citizens Trust Company (Gorin, MO)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: July 30, 1924
Location: Gorin, Missouri (40.360, -92.024)

Metadata

Model: gpt-5-mini
Short Digest: 9311b860

Response Measures

None

Description

The Citizens Trust Company of Gorin closed its doors July 30, 1924 and was placed in the hands of the state finance/examiner. Grand jury found fraudulent bookkeeping and worthless notes; prosecutions and civil suits followed. Articles do not describe a depositor run prior to suspension/closure, so this is classified as a suspension leading to permanent closure/receivership.

Events (2)

1. July 30, 1924 Receivership

Newspaper Excerpt: The Trust since its closing has been in the hands Martin, Examiner. We find he has rendered efficient service to the State Missouri.
Source: newspapers

2. July 30, 1924 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was unsound at reorganization, books in chaos, fraudulent entries and issuance of worthless notes used to pay capital; state finance department took control and examiner Martin placed bank in hands of finance department.
Newspaper Excerpt: The condition the Citizens Trust Company of Gorin, Missouri which closed its doors July 30, 1924
Source: newspapers

Newspaper Articles (8)

1. 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

2. March 26, 1925 St. Joseph News-Press St. Joseph, MO

Article from St. Joseph News-Press, March 26, 1925

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ZUENDT IN CHARGE. Baker Appointee Takes State Finance Department. JEFFERSON CITY, March the Associated Zuendt, former of the First Na. tional Bank Jefferson City. has RSsumed of the state finance partment place of Frank Millspaugh. while Robert his plans for Investigation the conduct of the pended sistant general northeast Missouri begin the inquiry. Grand Jury May 18. The attorney general that D. the special grand will investigate charges Millspaugh connection the failure the Citizens Company Gorin, Scotland County, May circuit court for its regular pursue the quiry, left Canton, Mo., where to the Trust its the Bank the Sinclair, the by had that from Vanwill go Gorin into the Citizens Trust Company and check them against the statement Roy Myers, former cashier the which Involves charges against Millspaugh and Jerome McCutchan, former the AmerGeneral Indemnities Corporation. McCutchan Not Hearing. yesthe general testify his bank. but his arrest in Continued on Second Page.

3. May 28, 1925 The Memphis Democrat Memphis, MO

Article from The Memphis Democrat, May 28, 1925

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Scotland County Grand Jury, which has been investigating matters of more than county interest, and which has session the past ten days, hearing forty witnesses or more, finished its work late yesterday afternoon, and the makes following report Circuit Judge M. Pettingill: Honorable Pettingill, Judge. The Grand Jurors duly empaneled, sworn and charged quire within and for the body of the county Scotland do hereby the following report follows to-wit: The condition the Citizens Trust Company of Gorin, Missouri which closed its doors July 30, 1924, located at Gorin, Mo., with losses to the people and residents of this and other counties in this state, was the subject of thorough investigation. We found that it was organized July 1923, with the assets Trust of the Citizens Bank of Gorin, the capital of the Citizens Company of Gorin, Missouri, when was subscribed in the amount of $50,000.00, was paid for by the issuance of of notes in the equal amounts of $7,000.00! all of these notes were nine doubtful value and some were found by this worthless. impaired With the assets of the old bank which were jury greatly to be together with the above notes was organized the Citizens Trust Company. The officials of this new formed bank were in session, found by the records, only twice, once at the organization of the bank and again at its placing into the hands of the Finance The board, while evidence was found to show that they themselves knew of the condition of the Trust Company, nevertheless they failed to meet or to exercise even the ordinary care in its direction. The acting officials of the institution and Anna were found direlict in their duties as to their employers to the customers of the bank. The books of the bank were found to be in state of chaos; entries were common; fraudulent entries were made in effort to conceal the true condition of the bank. In one inchanged entry was made to cover transaction of dollars, there were many lesser entries the These entries made it possible for the bank funds which to it did not have at any time in its The possession. jurors, while they severely such tactics, appearing yet to them, that the laws of the State, do not entries cover such as there on books which were not to be delivered to persons doing with the Trust Company light descision of our Supreme 283 court, Mo. 83, did not advisable to indict for that reason. The Trust since its closing has been in the hands Martin, Examiner. We find he has rendered efficient service to the State Missouri. In evidence disclosing to the connection of this bank with other banks state the grand jury has evidence that the fraudulent transactions total millions of dollars, Martin has by his sistent perefforts, traced the assets of the bank other ventures were almost wholly the and other service. connections he has rendered upon to depositors the jury money; very in valu- this The State Banking Commissioner in his of supervision this negligent The required examination at the time the forming the Trust was not made. In fact Company Missouri, was during its thirteen months existence. Although the condition the bank was called to their attention, no act taken safe-guard the money in said bank. No examination was made the time of the organization of the Trust Company, although the law says that the Finance should make have made examinations and the capital stock paid in actual cash. This would doubtless have saved the depositor of dollars. wish to thank Charles Moore, Attorney for able very that has gation all the of facts this for affair. the No effort has given spared in to the bring investi- out of this jury. We wish thank Robert Otto, the Attorney General of the State for the co-operation of his assistant Vanderventer and the thorough and capable manner in which he presented the evidence the jury. We find the county jail of the county kept in good condition.

4. May 28, 1925 The Memphis Democrat Memphis, MO

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POLITICAL FIGHT WAS MADE BEFORE GRAND JURY evident from information which is leaking out of the grand jury, that there desperate republican fight being waged before that tribunal If Millspaugh is indicted, and it now looks like he will be, he has his local friends to blame largely for it. In the very beginning, when the grand jury was selected information sent out from this county to the effect that the grand jury was "hand picked" and the members were criticised. Even the republican members of the grand they are good criticised bitterly by those who were not permitted to select "special" grand jury. The representatives of the attorney general's office is believed have pre. sented strong evidence against Mr. Millspaugh. Jerome B. MeCutchan and Roy Myers, who undoubtedly know more about Millspaugh's part in the Gorin bank failure than anyone else, were not permitted to appear before the grand jury, although they agreed to do so, it said. It is alleged that the assistant attorney general desired Myers testify, but this was objected to by the friends of Millspaugh. The grand jury being composed of honorable upright citizens from all parts of the county, have heard about forty witnesses and have worked patiently and diligently on the case. They have heard witnesses from almost all parts of the state, and are using every effort possible to get at the real facts. From political aspect, the investigation has resolved itself into republican factional fight to convict exhonorate Millspaugh, and this fight due to the activity of Millspaugh's local friends to shield him. If he indicted he can blame no one but his over zealous friends. Not until after the regular grand jury selected, was it intimatthat "special" grand jury would have been composed of six democrats and six republicans. The attorney gen. eral, probably knowing the efforts being made to protect Millspaugh rightly opposed "special" grand jury The Grand Jury late terday afternoon." Later said indictments gainst nine persons were returned by the grand jury. The indictments are secret. Warrants are being issued for the defendants it is said. Those ported to have been indicted are: Frank C. Millspaugh, former finance commissioner: Roy Myers and Miss Anna Monroe, Jerome B. McCutchan, Myers, John McNatt, and Hill, John W. Thomas. and Myers. These were officers and directors of the Citizens Trust Company, at Gorin.

5. September 15, 1925 The Brookfield Argus and the Linn County Farmer Brookfield, MO

Article from The Brookfield Argus and the Linn County Farmer, September 15, 1925

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Dismiss Charge Want of Prosecution." Scotland County Prosecutor's Refusal to Sign Substitute Informations Kills Action Gorin Bank Case. Suspended by Baker. Kahoka, of dereliction duty against Frank C. Millspaugh, formerly state finance commissioner, were dismissed "for want of prosecution" in Clark County Circuit Court here yesterday. The case was dismissed by Judge Pettingill after he had denied tion of the attorney general to disqualify prosecutor Charles Moore of Scotland County, who had refused sign substitute informations against Millspaugh. The charges against Millspaugh grew out of the failure of the Citizens' Trust Company of Gorin. The former finance was charged with allowing the bank to function when he knew its reserves depleted and with failure to amine the bank for six months quired by law. Two indictments against Millspaugh, containing these charges, were returned by Scotland County grand jury investigation of the case conducted by Attorney General RobOtto. The attorney general obtained statement from Paso, Texfrom Roy Myers, former cashier of the bank, which involved the Millspaugh charges. Immediately after obtaining Myers's statement, the attorney general laid the case before Governor Baker, who suspended Millspaugh as finance commissioner and ordered an investigation. When the case was called to trial here last Monday on change of venue, the indictments were quashed because of and substitute informations were drawn up under new law. Prosecutor Moore fused to sign these because of the of Myers and Anna Monroe, witnesses and the case at that time.

6. September 17, 1925 Adair County Herald Novinger, MO

Article from Adair County Herald, September 17, 1925

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MILLSPAUGH FREED AT KAHOKA Kahoka, Mo., Sept. 14.-Charges of dereliction of duty against F. C. Millspaugh, former finance com.. missioner and representative from this district, were dismissed in the circuit court for want of prosecu. tion. The charges grew out of the failure of the Citizen's Trust Com. pany of Gorin. Charles Moore, the prosecuting attorney, refused to sign substitute information and the state dismissed the case-because it had no case.

7. December 9, 1926 The Milan Standard Milan, MO

Article from The Milan Standard, December 9, 1926

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CHARLES U. BECKER'S NOTE FOUND THE CLOSED BANK State Secretary's Newspaper Got $18,840 From Federal Trust Co., Kansas City. Topeka, Kas., Dec. 3.-In the joint investigation by the Missouri and Kansas Banking Departments of the Federal Trust Co. of Kansas City, recently closed, it has been disclosed that the affairs of Charles U. Becker, Missouri's Secretary of State, reach into the Federal Trust Co. even as they did into the tangled mass of the defunct Citizen's Security Bank of Englewood, Mo. In the Federal Trust note case there is understood to be a note for $18,840 given by the Missouri Press Publishing Co. of Excelsior Springs, Mo., signed by Becker as president and indorsed by Becker and George ! McKenney, associate with Becker in the publication of the Missouri Press, a political organ, which supported both Blodgett Priest, a wet, and David M. Proctor, a dry, in the recent Republican senatorial primary in Missouri. Echo of Gerin Case. It will be recalled that when the Missouri Finance Department forced an accounting at the Englewood bank last summer the bank officers and their financial backers were compelled to put up in cash $26,452.92 to take out unsatisfactory assets. All but $2,970.62 was for rejected transactions with Becker's friends and sociates. The Missouri Press note in the Federal Trust Co. was signed August 18, 1936. An echo of the Gorin, Mo., bank failure comes into the Federal Trust note case in two notes signed by men who were named as associates of Roy T. Myers, convicted cashier of the Citizens' Trust Co. of Gorin, and Jerome B. McCutchan, St. Louis promoter. One note for a small sum is mentioned and one for $14,000, secured by deeds of trust signed by two names which appeared on much McCutchan paper. Secretary Becker used the Federal Trust Co. as one of the depositories for automobile license fees. When the bank closed, this deposit virtually had been wiped out by withdrawals, but there is said to have been approximately $1500 due the state on interest. J. McMahon, former deputy bank examiner in Kansas financed his control of the Kansas City Terminal Trust Co. through the influence that his former superior, Carl J. Peterson, had with the Federal Trust. "Peterson Paper" for $29,000. Carl J. Peterson was State Bank Commissioner of Kansas under Gov. Jonathan Davis. McMahon had been an examiner under him and in Kansas City, Mo., both had close contact with a former chief examiner, P. E. Laughlin, who after disastrous experience with the Midwest Bank in Kansas City had got the presidency of the Federal Trust Co., a downtown Kansas City bank operating outside the clearing house. So $29,000 of unsecured Peterson paper appears in the note case of the closed Federal Trust. There are understood to be two notes one for $4000 signed by Carl Peterson, and another for $25,000 signed by Peterson, M. R. Rinehart and J. S. McMahon, who only recently bought into the Terminal Trust Co., becoming its president and linking it with the Laughlin group.

8. June 1, 1927 The Daily Republican Poplar Bluff, MO

Article from The Daily Republican, June 1, 1927

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DIRECTORS OF CLOSED-BANK HELD LIABLE Must Account for Money Deposited in the Bank While They Were in Charge, Court Rules. By The Associated Press. Kirksville, Mo., June 1.-Directors of the defunct Citizens Trust Company of Gorin, Mo., are liable for money deposited. in the bank while they were in charge, according to the verdict of a jury in circuit court here which yesterday awarded A. R. Leslie, guardian for E. W. Leslie, $4,303.26. This was the amount he had on deposit when the bank closed in July, Other similar suits pending against the directors total $43,000. It is alleged the bank unsound from the date of the re-organization of the Citizens Bank and the directors knew its condition. The defendants are J. B. Thomas, Gorin, president; Roy T. Myers, secretary-treasurer, Chillicothe: A. Smith Myers, Gorin: J. B. McCutcheon: G. C. Hill and John L. McNatt, St. Louis. Scott Russell of St. Louis was a week end visitor at the home of H. J. Morrison on Pine Street. He returned to St. Louis, Monday afternoon.