10324. Guardian Trust company (Kansas City, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
November 30, 1900
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini
Short Digest
7d2f1482

Response Measures

None

Description

Series of articles describe a lawsuit by John W. Gates leading to a court-appointed receiver (F. M. Black) Nov 1900 and the company remaining in receivership until discharge in 1902 for liquidation. No bank run or depositor panic is mentioned. This is a receivership/closure by court order rather than a depositor-driven suspension.

Events (3)
1. November 30, 1900 Receivership
Newspaper Excerpt
Judge Amos Thayer...has appointed F. M. Black, of Kansas City, receiver of the Guardian Trust company, of which A. E. Stilwell is president. The appointment was made in the suit brought recently by John W. Gates, of Chicago, and other stockholders.
Source
newspapers
2. November 30, 1900 Suspension
Cause
Government Action
Cause Details
Federal court granted petition by John W. Gates and other security holders; court restrained disposition of assets and later appointed a receiver (F. M. Black).
Newspaper Excerpt
A receiver is appointed F. M. Black to take charge of the affairs of Guardian Trust Company...Judge Amos Thayer...has appointed F. M. Black, of Kansas City, receiver of the Guardian Trust company...
Source
newspapers
3. October 7, 1902 Other
Newspaper Excerpt
The formal order discharging the receiver of the Guardian Trust company and instructing him to turn the property over to a committee of stockholders to complete the liquidation of the company's affairs was filed today.
Source
newspapers

Newspaper Articles (15)
1. October 24, 1900 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, October 24, 1900

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Article Text

AFTER STILLWELL. Gates Said to be Trying to Ruin the Company and Block Plans. Kansas City, Mo., Oct. 23.-John W. Gates of Chicago and other holders of securities in the Guardian Trust company made application in the Federal court today for a receiver for the company and for an injunction to prevent a meeting of the stockholders called for tomorow to elect a new board of directors. This is said to be an attempt of the Gates element to gain control of the company's affairs and to stop it from aiding in the financing of the Mexico & Orient ratlway, the short line which A. E. Stilwell is buiding between Kansas City and Topolobampo, on the Pacific coast of the Mexican republic. Eight new directors of the trust company were to have been elected tomorrow, and Stilwell was, it is said, in possession of sufficient proxies to enable him to control the election and name the directors. The new board was then to meet and elect Mr. Stilwell president of the company. The Gates petition filed today makes sensational charges against Stilwell and his associates. The court granted an order restraining the disposition of any of the trust company's assets and against the holding of the meeting tomorrow. Final hearing will be had tomorrow morning. Mr. Stilwell, in a statement today, said: "Mr. Gates tried to rule the trust company, and, failing. he is now endeavoring to ruin it. The suit is a personal attack on me and an effort to prevent the Orient line from being built. It will be a severe blow to Kansas City If a receiver is appointed for the Guardian Trust company. The company is in good financial condition and its prospects are of the brightest kind. It is not interested in any way in the Orient railroad enterprise beyond acting as trustee, for which it is to be paid. I have been particular to keep the business of both separate and distinct and the statement that the trust company's money was being used for the railroad is false. Gates and his friends only own about 10 per cent of the stock of the Guardian Trust company."

2. October 25, 1900 The Columbian Bloomsburg, PA
Article from The Columbian, October 25, 1900

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Article Text

WAR IN A TRUST COMPANY. Millionaire Gates Asks For a Receiver For the Guardian Trust. KANSAS CITY. Oct. 24.-John W. Gates of Chicago and other holders of securities in the Guardian Trust company have made application in the federal court for a receiver for the company and for an injunction to prevent a meeting of the stockholders called for today to elect a new board of directors. This is said to be an attempt to stop the Guardian Trust company from aiding in the financing of the Kansas City, Mexico and Orient railway, a short line which A. E. Stillwell, president of the Guardian Trust company, is building between Kansas City and Topolomampo, on the Pacific coast of the Mexican republic. Eight new directors of the trust company were to have been elected, and President Stillwell was, it is said, in possession of enough proxies to enable him to control the election and name the directors. The petition for a receiver makes sensational charges against Mr. Stillwell and his associates. The court granted a temporary order restraining the disposition of any of the trust company's assets and against the holding of the meeting.

3. November 2, 1900 Americus Times-Recorder Americus, GA
Article from Americus Times-Recorder, November 2, 1900

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Again Postponed. KANSAS CITY, Nov. 1.-The hearing in the application for a receiver for the Guardian Trust company, made on Oct. 28 by John W. Gates of Chicago and other security holders, was today again postponed for one week by Judge John F. Phillips, in the United States district court.

4. November 13, 1900 The Houston Daily Post Houston, TX
Article from The Houston Daily Post, November 13, 1900

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STH/WELL WON ADVANTAGE In the Trial of a Suit Brought by John W. Gates Others. Kansas City, Mo., November 12.--A. E. Stilwell won a decided advantage today in the trial of the suit pending in the Federal court here, brought by John W. Gates and his associates for the purpose of having the Guardian Trust company placed in the hands of a receiver. Judge Thayer, who came from St. Louis to try the case, modified the injunction order so that the Guardian Trust company is permitted to transact its every day business, such as paying salaries and bills, but the directors will not be permitted to hold an election until the present lawsuit is settled. The order of Judge Thayer does not bring the case much nearer to a settlement than it was prior to the hearing today. From present indications, the case will be bitterly contested by both sides and an early settlement is not probable. The attorneys for the Guardian Trust company filed a large number of affidavits today to answer the charges of mismanagement and fraud which were made in the orig I application for a receivership. The attorneys for Mr. Gates and his associates did not expect this action and when Judge Thayer announced that the complainants would be given only until 6 o'clock next Saturday evening to file counter affidavits, the plaintiff's attorneys claimed that they were placed at a disadvantage because many of the persous they may need to testify are in New York and Philadelphia, and can not be brought here in time. The case was taken up today, not on its merits, but to hear arguments for and against the demurrer against the petition filed by the attorneys of Mr. Stilwell and the Trust company. When Judge Thayer examines the affidavits, that were filed today. and the others to be filed before 6 o'clock Saturday evening he will set a date especially for hearing the original suit.

5. November 30, 1900 Daily Inter Mountain Butte, MT
Article from Daily Inter Mountain, November 30, 1900

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A RECEIVER IS APPOINTED F. M. BLACK TO TAKE CHARGE OF THE AFFAIRS OF GUARDIAN TRUST COMPANY. placed in a re-organization of the comKansas City, Mo., Nov. 30.-Judge pany. The bonds of the old Kansas City, Amos Thayer, of St. Louis, in the United Pittsburg and Gulf railroad, now the States district court, has appointed F. Kansas City Southern, in which Gates is M. Black, of Kansas City, receiver of the interested figured in the bill and the conGuardian Trust company, of which A. E. tention was made that the stockholders were in danger of losing one million dol Stibwell is president. The appointment lars if Stilwell were allowed to carry out was made in the suit brought recently his plans. In an interview on October by John W. Gates, of Chicago, and other 23. President Stilwell said: stockholders. was "Mr. Gates tried to rule 'the trust come The petition for a receivershi pany, and failing, he is now endeavoring filed in Kansas City, on October 23 last, to ruin it. The suit is a personal attack on the day before the stockholders were on me, and an effort to prevent the Orient to have held a meeting ito elect a new railway from being built." board of directors. The Gates petition When told of the appointing of a also asked for an injunction to prevent receiver today, Mr. Stilwell declared that the holding of the meeting. Judge John he had expected the action, and was alF. Phillips granted the injunction and ready preparing to form a new company set a later date for a hearing on the rewhich would finance the Kansas City ceivership question. Gates and others Mexico and Orient railway, which he contended that Stilwell took advantage promoting. of them in the character or securities

6. December 1, 1900 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, December 1, 1900

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Article Text

Stillwell Forming a New Company. Kansas City, Nov. 30.-The federal district court has appointed F. M. Black of Kansas City receiver of the Guardian Trust company. When apprised of the appointment of a receiver President Stillwell declared he had expected such action and was already preparing to form a new company which would finance the Kansas City, Mexico and Orient railroad which he is promoting.

7. January 3, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, January 3, 1901

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GUARDIAN TRUST ASSETS. Receiver Blake Files His Report With the Court. KANSAS CITY, Mo., Jan. 2.-Judge Francis Blake, receiver for the Guardian Trust company, filed with the clerk of the United States circuit court his report of the properties that come into his hands. He repors that the total "carrying" value of the properties of the Guardian Trust company-that is the value at which these properties are carried on books of the company is $1,957,562.99. The real estate total amounts to $298,714.63. Cash in the banks amounts to $15,961.49. Bonds and stock claimed by Heyneker and Wagner amount to $830,000. Other assets are: First mortgage loans $132,495.72; second mortgage loans $8,002; bills receivable $19,440.04; notes $223,222.23; open accounts $35,940; tax certificates $281.31; furniture and fixtures $5,647.44. The assets of the Chicago office are as follows: Stocks and bonds $630,166.14; bills receivable $257,496.17; unpaid coupons $38,280; cash in bank $8,891.86; open accounts $1S5,963.72; furniture and fixtures $5,130; carried on books $14,059.32. Judge Black makes no comment on the affairs of the company in his report. The debts of the company are not reported completely.

8. June 24, 1902 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, June 24, 1902

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STILLWELL IS ON TOP Is to Be Reinstated as President of Guardian Trust Company. Kansas City, June 23.-The Guardian Trust company, with offices in Kansas City and Chicago, is to be taken out of the receiver's hands and Arthur E. Stillwell is to be reinstated as its president. according to a report current here today. Mr. Stillwell was deposed last year when John W. Gates and his following petitioned for a receiver for the company. The plan, it is stated, is to merge the Guardian Trust company into one of Mr. Stillwell's existing companies organized recently to promote the Kansas City, Mexico and Orient railway,

9. June 24, 1902 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, June 24, 1902

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Stilwell Again at Head. Kansas City, Mo., June 24.-The Guardian Trust company, with offices in Kansas City and Chicago, is to be taken out of the receivers hands and Arthur E. Stilwell is to be reinstalled as its president, according to a report current here today. Mr. Stilwell was deposed last fall, when John W. Gates and his following petitioned for a receiver for the company. The plan is, it is stated, to merge the Guardian Trust company into one of Mr. Stilwell's existing companies organized recently to promote the Kansas City, Mexico & Orient railway.

10. June 26, 1902 The Houston Daily Post Houston, TX
Article from The Houston Daily Post, June 26, 1902

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SHORT NEWS STORIES. CAPETOWN.-Lord Kitchener and General French sailed for England Monday. NEW HAVEN, Conn.-The commencement exercises of Yale university were be gun Monday. Beautiful weather prevailed. ST. LOUIS.-Philadelphia Tommy Ryan knocked out George Block, St. Louis premier welterweight, in the seventh round. LONDON.-The duke of Manchester has taken the customary oath and his seat in the house of lords, his Bnancial. disabilities having been removed. ALBANY, Ga.-Edward Rich, a young white man, charged with retaining possession of the body of Sidney Wallls, a boy drowned in a nearby creek for a reward. narrowly escaped being lynched near this place. KANSAS CITY.-The Guardian Trust company, with offices in Kansas City and Chicago, is to be taken out of the receiver's hands and Arthur E. Stillwell is to be reinstated as its president, according to a report current here. NEW YORK.-A sixteen-inch gun, the largest in the world. will be completed at Watervliet arsenal by Wednesday and sent to the United States government proving grounds at Sandy Hook: Its operations are expected to astonish the world. NEW YORK-The Retail Bu chers' Protective association has announced that a company had been formed to fight the EOcalled beef trust. The company has a capital stock of $1,000,000. two-shirds of which has already been subscribed. CHICAGO.-Prince Nicholas W. Engal itscheff, well known in local business and society circles during the last ten years, has been. formally notified by, Count Cassini. the Russian ambassador, of bis appointment as imperial Russian vice consul for Chicago. NEW YORK.-A reunion of war veterans is to be held In Manzanillo this week, says a Havana dispatch to the Herald. The authorities are worrled and fear trouble General Masso. late a candidate for the presidency, was scheduled to preside, but has declined. MONTEREY, Mexico.-According to a ruling of Secretary of the Treasury of the United States Leslie M. Shaw, It is possiule for any American returning to the States after n visit to Mexico to take back goods purchased in the républic to the value of $100. CANTON, Ohio.-Mrs. McKinley has received from Fillp Beauncamino, à former member of Aguinaldo's cabinet and now a leader of the Federal party in the Philippines, the greetings and memorial of that party, which he was commissioned to per. sonally carry to her. NEW YORK.-From present indications the growing grain crops will not stay on this side of the Atlantic on account of excessive transportation charges, says the Journal of Commerce. Rates are being cut by the various routes and the steainship combination of minimum figures is, so far. ineffective. CHICAGO.-Seprte Instruction of the sexes In the first two years of college work was again recommended by the faculty of the junior college of the University of Chicago Monday. despite the disapproving vote of the university congregation In Its meeting of a week ago.

11. September 12, 1902 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, September 12, 1902

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GATES IS RELENTLESS. He Is Still Fighting the Plans of Arthur Stillwell. Kansas City, Mo., Sept. 12.-When the application for the discharge of the receiver of the Guardian Trust company came up for hearing before Judge Amos M. Thayer of the United States circuit court, it developed that John W. Gates and his associates had begun a fight to prevent the restoration of the company to the control of those stockholders identified with Arthur E. Stilwell. It was the Gates contingent that ousted Stilwell from the Kansas City-Pitsburg presidency of the Kansas City, Pittsburg and Gulf railway, now the Kansas City Southern, which Stilwell had built and threw it into the hands of a receiver. It was also through the efforts of the Gates people that Stilwell, over a year ago, was ousted from the presidency of the Guardian Trust company, which he had organized. When Gates' attorneys objected to the application of Stilwell to have the Guardian Trust receivers discharged they did so on the theory that Stilwell's move is intended to place the company in the hands of his friends and eventually to merge it with the United States and Mexican Trust company, which was organized to promote the Kansas City, Mexico and Orient road, another property projected by Stilwell. This the Stilwell people deny, saying that the affairs of the trust company have progressed so favorably that it could now be conducted more economically without the receiver. The intention, it is stated, is to eventually wind up the affairs of the company.

12. September 15, 1902 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, September 15, 1902

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GATES WANTS THE EARTH. In the Federal Court Renews the Fight Against Stillwell. Kansas City, Mo., Sept. 13.-When the application for the discharge of the receiver of the Guardian Trust company came up for hearing before Judge Amos M. Hhayer of the United States circuit court, it developed that John W. Gates and his associates had begun a fight to prevent the restoration of the company to the control of those stockholders identified with Arthur E. Stilwell. It was the Gates contingent that ousted Stilwell from the Kansas Cty, Pittsburg presidency of the Kansas City, Pittsburg and Gulf railroad, now the Kansas City Southern, which Stilwell had built, and threw it into the hands of a receiver. It was also through the efforts of the Gates people that Stilwell, over a year ago, was ousted from the presidency of the Guardian Trust company, which he had organized. When Gates' attorneys objected to the application of Stilwell to have the Guardian Trust receiver discharged, they did so on the theory that Stilwell's move to place the company in the hands of his friends and eventually to merge it wih the United States and Mexican Trust company, which was organized to promote the Kansas City, Mexico and Orient road, another property projected by Stilwell. This the Stilwell people deny, saying that the affairs of the trust company have progressed 80 favorably that it could now be conducted more economically without the receiver. The intention is, it is stated to eventually wind up the affairs of the company. The hearing was concluded but Judge Thayer reserved his decision.

13. September 16, 1902 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, September 16, 1902

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MAY REINSTATE STILWELL Judge Grant's Petition to Discharge Receiver of Guardian Trust Company of Kansas City. KANSAS CITY, Sept. 15.-Judge Amos M. Thayer of the circuit court today granted the petition of the stockholders, representing Arthur E. Stilwell to discharge the receivers of the Guardian Trust company, appointed over a year ago at the instigation of John W. Gates and his following. The supporters of Mr. Stilwell, who at the e time the company was thrown into the receiver's hands was president of the company, asserted in their petition to have the receivers discharged that the business could d be conducted more economically with them. The Gates contingent opposed the move S on the theory that Stilwell desired to merge the Gulf and Trust company into the Mexican Trust company. It is said that Mr. Stilwell will be reinstated as president. Judge Thayer's order authorizes the red ceiver to pay immediate direct liabilities to the sum of $199,433, and make payments of contingent liabilities to the amount of $31,880, taking from the persons holding the contingent claims agreements extending the time for the payment of the residue. The direct liabilities ordered to be paid include S outstanding debenture bonds, mortgages on real estate, trust funds, open accounts and $16,000 due the estate of the late F. M. Black, by order of the court for services as receiver. d A statement accompanying Judge Thayer's memorandum shows that there is $382,397 cash available at this date to meet the requirements of the order, and it will leave a balance of $151,624. Judge Thayer's order authorizes and directs the receiver, immediately on the election and organization of the new board of directors of the Guardian Trust company, which the court understands will be elected, and will convene on October 22, to turn over to such board all property and assets of the Guardian Trust company in his hands. The stockholders of the company at their coming meeting are to adopt a resolution instructing the directors of the Guardian Trust company and its executive committee to sell to the best advantage all the real property of the company, save such as may be needed for the transaction of business. The executive committee is also to sell, collect or otherwise reduce to money, with all convenient speed, all bonds, stocks, bills, demands, claims and securities which the not good interest-bearing securities, to the end that the affairs of the company may be put in a condition for speedy and convenient liquidation. The minority stockholders who have objected to the discharge of the receiver must be given at least one representative on the board of directors to be elected October 22, who shall also be a member of the executive committee of the board, if such a committee is elected. Today's order by Judge Thayer marks the near approach of the end of the Guardian Trust company. This company was organized as the Missouri, Kansas and Texas Trust company in 1889 by A. E. Stilwell and E. L. Martin, with an authorized capital stock of $1,000,000, divided into 10,000 shares of $100 each. In 1899, soon after the capital stock had been increased from $1,500,000 to $2,500,000, the name was changed to the Guardian Trust company. The efforts of John W. Gates to secure control of the company and oust Stilwell culminated by Gates throwing the company into the hands of a receiver. This was in November, 1900.

14. September 24, 1902 The San Angelo Press San Angelo, TX
Article from The San Angelo Press, September 24, 1902

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Stilwell Downs Gates. Kansas City, September 15.Judge Amos Thayer of the circuit court today granted the petition of the stockholders representing Arthur E. Stilwell to discharge the receivers of the Guardian Trust company, appointed over a year ago at the instigation of Jno. W. Gates and his following. The supporters of Mr. Stilwell, who, at the time the company was thrown into the receiver's hands was president of the company, asserted in thelr petition to have the receiver discharged; that the business could be conducted more economically without them. The Gates contingent opposed the move on the theory that Stilwell desired to merge the Guardian Trust company into the Mexican Trust company. It is believed that Mr. Stilwell will be reinstated as president. Today's order of Judge Thayer marks the near approach of the end of the Guardian Trust company. This company was organized as the Missouri, Kansas and Texas Trust company in 1889 by A. E. Stilwell and E. L. Martin, with an authorized capital stock of $1,000,000, divided into 10,000 shares each of $100. In 1899, soon after the capital stock had been increased to $2,500,000, the name was changed to the Guardian Trust company. The efforts of John W. Gates to secure control of the company and oust Stilwell culminated in Gates' throwing the company into the hands of a receiver. This was in November, 1900.

15. October 8, 1902 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 8, 1902

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RECEIVER IS DISCHARGED. Formal Order to Turn Over Guardian Trust Co. Property Issued. Kansas City, October 7.-The formal order discharging the receiver of the Guardian Trust company and instructing him to turn the property over to a committee of stockholders to complete the liquidation of the company's affairs was filed today. The receiver is instructed to turn over the property October 22. The minority stockholders who are identified with the interests of John W. Gates are to be given representation on the executive committee. The court reserves the right to retake the property, or any part of it, for the purpose of forcing compliance with the terms of the order. The application for the discharge of the receiver was made by the stockholders friendly to A. E. Stillwell, former president of the company.