10388. Waldo State Bank (Kansas City, MO)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 13, 1926
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini
Short Digest
b7c73c9e

Response Measures

Full suspension, Books examined

Other: Directors closed bank and turned it over to State Finance Department; state examiners placed in charge and bonds later sold to reimburse depositors.

Description

Articles (Nov 15–16, 1926) report a heavy run on the Waldo State Bank following the failure/closings of the Federal Trust Company and the Terminal Trust Co.; the board closed the bank and placed it in charge of the State Finance Department. There is mention of possible reopening plans by directors, but later coverage (Jan 1927) discusses sale of bonds and disposition of deposits, with no clear reopening — thus classified as run leading to suspension and permanent closure. OCR errors corrected (e.g., dates and some garbled sentences).

Events (3)
1. November 13, 1926 Run
Cause
Local Banks
Cause Details
Depositors withdrew funds after the recent closing of the Federal Trust Company and Terminal Trust Co.; uneasiness spread from those local bank failures.
Measures
Directors held meetings attempting to avoid closing; examiners inspected the bank; later bank officials indicated intention to pay depositors in full.
Newspaper Excerpt
The heavy run Saturday fear another today brought decision to close.
Source
newspapers
2. November 15, 1926 Suspension
Cause
Local Banks
Cause Details
Board closed bank after heavy withdrawals and linked operations with the closed Federal Trust Co.; examiners placed the bank in charge of state finance department.
Newspaper Excerpt
This bank has been closed by order the board and placed in the hands of the department of finance.
Source
newspapers
3. January 22, 1927 Other
Newspaper Excerpt
BONDS SOLD. ... deposits state funds the Waldo State Bank Waldo. suburb Kansas and the Federal Trust Company Kansas City. both closed months have been sold ... $106,000 in bonds ... were sold back to depositors the bank total The bonds held by the State Bank ... guaranty the balance. (timeline of asset disposition reported Jan 1927).
Source
newspapers

Newspaper Articles (8)
1. November 15, 1926 The Kansas City Post Kansas City, MO
Article from The Kansas City Post, November 15, 1926

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and John Laughlin, cashier. The notice: This bank has been closed by order the board and placed in the hands of the department of finance. Drawn blinds on all the windows and doors the bank greeted early arrivals. When the sign was about thirty most depositors, were in front of the bank building Vincent E. Murphy is vice of the bank. Directors in the institution Mr. Laughlin was the bank's largest 180 while president of the closed Federal Trust company, owned 150 shares. Mr. Laughlin, cashier of the bank. brother the president of the Federal Trust company. which closed Friday following heavy withdrawals. The Waldo bank was not member the Kansas City Clearing House as. sociation. W. Heyde and R. E. Shelby, deputy state finance commissioners, were placed in charge of the bank. With the closing the Federal Trust bank Friday, Mr. Heyde, representing the state finance department. began an examination of the Waldo bank. The institution carried $135,000 funds on deposit the time the This deposit secured by bonds Decision to close the bank was not reached until o'clock this at director's meeting, although three previous had been held yesterday and last night in an effort to avoid closing Had Deposit in Federal Like the Kansas City Terminal Trust which was forced close doors Saturday of the fear run precipitated by the closing the Federal Trust the Waldo bank had cash on deposit in Federal Trust company. This not the chief contributfactor closing the Waldo financial institution, however, directors said today. The heavy run Saturday fear another today brought decision to close. George Croner. grocer in Waldo and director of the bank. said Saturday depleted the bank's cash The cash required be the banking is per cent of the deposits Reopening Move Hinted. Mr. Croner said he convinced the bank and will pay out full. He even indicated there might move to reopen within the period alloted. The bank does not hold bad paper, he said. Organized 1920. the bank began business with capital of its was composed largely Waldo men merchants. last financial statement the bank was issued August total deposits to be $536,The statement: RESOURCES fixtures sight drafts Total assets LIABILITIES profits Total Full Predicted. The Waldo bank will pay 100 cents on the dollar, only but stockholders as well, director declared. Not more than $10,000 to $15,000 of paper was held in the bank the closing, the tor This will be more off. the the bank building. which by the bank and which at least in excess the $55,000 value which carried on the bank books. the director He announced plans already under consideration for reopening the because such an institution needed the Waldo not be absorbed by another bank, the director believes.

2. November 15, 1926 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, November 15, 1926

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ANOTHER KANSAS CITY BANK IS CLOSED Cashier Is Brother of President of Concern That Closed Last Friday. Special JEFFERSON Nov. The State Finance Department received word today of the closing of the Waldo State Bank of Kansas City. It is the forty-ninth state bank to be closed in Missouri this year. The Waldo State bank had $125,000 of State funds on deposit, but the State Treasurer said today that he was protected by bonds of $112,000 and $14,500 of real estate securities. The cashier of the bank closed today is J. G. Laughlin, brother of P. E. Laughlin, president of the Federal Trust Co. of Kansas City, which was closed Friday. Finance Department officials said there connection in the operations of the Waldo and Federal companies. The Waldo bank had deposits of $529,429, loans of $379.368, total resources of $647,693 and a capital of $100,000. The closing today was announced as action taken by the board of directors. Finance Department examiners had been making an inspection of the Federal Trust. the Kansas City Terminal Trust Co., which was closed Saturday, and the Waldo bank before the closings were announced. State Bank at Thayer. Kan., Closes; Deposits $165,000. Special TOPEKA Kan., Nov. The Thayer State Bank was closed today by order of the board of directors. This is the only Kansas bank thus far affected by the closing of the Federal Trust Co. of Kansas City. Mo. The Thayer bank had the larger part of its reserves tied up in the Federal Trust and it also had purchased a large amount of Federal paper. These two conditions brought about the et sing of the bank today. The bank had a capital of $10,000 and a surplus of $5000. There were deposits of $165,000 and loans of $129,000. Run on Kansas City Bank Turned Into Public Reception. KANSAS CITY Nov. A "run" on the Park National Bank here today was turned into a public reception with flowers and smiles. The Park National. a neighborbood bank. opened and found 200 depositors lined up to get their money. Every one was paid and then at one end of the room a man stood on a chair "I anf W. J. Bailey.' he said. "I am governor of the Federal Reserve Bank. This bank is a member of the Federal Reserve system. The Federal Reserve Bank guarantees that depositors in this bank will not lose one cent." The assembled depositors cheered and Bailey shouted: "There are 200 million dollars behind that guarantee. Balley said officials and examiners of the Federal Reserve Bank had gone over the Park National Bank's 'paper' yesterday and found the bank to be as good shape as any bank in Kansas City."

3. November 15, 1926 The Sedalia Democrat Sedalia, MO
Article from The Sedalia Democrat, November 15, 1926

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BANK KANSAS CITY CLOSED Press. KANSAS CITY, Nov. The Waldo State Bank, small neighborhood institution, failed to its doors here today. the third bank close three days. The Federal Trust Company, downtown bank closed with total of mildollars, closed Friday the Terminal Trust Company, small bank which had part its cash the Federal Trust closed Saturday notice posted the Waldo State Bank shortly before opening time morning. read. bank closed order board and placed the hands of the finance department.' The notice was signed by Slaughter, president and the board directors. Mr. Laughlin also cashier the bank. The Waldo Bank pondent bank Federal Company and Laughlin, brother of president the Federal Trust Company. the statement issued the bank listed deposits and total assets of $646, 578.91. capital stock shown $100,000. Closed Directors JEFFERSON. CITY, Mo., Nov. Waldo State Bank iln Kansas City, total resources proximately closed day by its board directors, morning at finance department here.

4. November 16, 1926 Evening Star Washington, DC
Article from Evening Star, November 16, 1926

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TWO BANKS CLOSE; THIRD AVERTS RUN Kansas City Institutions Allied With Federal Trust Company Affected. By the Associated Press KANSAS CITY. November 16.--Two small banks. whose affairs were linked with the closed Federal Trust Co. here. closed yesterday and another small bank averted a run by depositors when cash reserves were called in and displayed. The Waldo State Bank. a suburban institution. and the Thayer State Bank of Thayer. Kans., were the two banks which closed. The Park National Bank. a neighborhood bank here. turned a run into A public reception when W. J. Bailey, governor of the Federal Reserve Bank of Kansas City. told about 200 depositors who had gathered that the bank was backed by the Federal reserve system and guaranteed them they would not lose "a cent. Reasons for Anxiety. Uneasiness which followed the closing of the Federal Trust Co. Friday and the Terminal Trust Co. here Saturday was blamed for the gathering of the depositors. The Waldo Bank's deposits at the time of its last statement were $536.281.31. The deposits in the Thayer bank were only $165.000. A large part of the reserves of the Thayer bank were deposited in the Federal Trust Co. The Waldo bank was a correspondent bank of the Federal Trust and J. G. Laughlin, secretary of the board of directors. was a brother of P. E. Laughlin, president of the Federal Trust Co. Both the Waldo State Bank and the Terminal Trust Co. had part of their cash reserves deposited in the downtown trust company. Officials of all the closed banks said they were sound and that they would be reorganized as soon as the affairs of the larger bank were adjusted.

5. November 16, 1926 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, November 16, 1926

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"RUN" ON BANK STOPS. Depositors Cheer When Institution Declared Solvent. Associated KANSAS CITY, Mo., Nov. 16.-A on the Park National bank here was turned into public reception with flowers and smiles. The Park National, neighborhood bank, openand found 200 depositors lined up their money. Everyone was paid. When governor the Kansas City Federaol bank, said the bank was solvent, the depositors cheered, The Waldo State bank, small neighborhood institution, failed open its doors here Monday. It was the bank to close within three days. The Federal Trust company, bank with total closed Friday and the Terminal Trust bank which had part of its cash the Trust closed Waldo bank was correspondent, band of the Federal Trust company.

6. November 17, 1926 The Weekly Kansas City Star Kansas City, MO
Article from The Weekly Kansas City Star, November 17, 1926

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CITY SEES ROY AL PARTY. Princess Springs Wheeze and the Wife Lost Jam. Well. as Princess Ileana marked. "the royal party not have seen much Kansas but Kansas City certainly the royal party Queen Marie's train did not arrive until after dark left for St. Louis shortly after midnight Good natured crowds got out of hand and somewhat impeded the progress of the royal party the committee from the the Liberty to the Hotel where dinner was served in to American Royal for musiin honor of the home Jacob and back Rather busy six hours one might say Leaving the Mrs A Beach the mayor separ ated from the party. writer was introduced and entered the car with reed HITS CAPITAL DRAFT. Princess Nicolas. Princess lleana and Councilman George Goldman "Call what my name the Coolidge War Proposal. prince remarked Your name, said the princess with St. James A. Reed is "is sued statement Saturday assalling as right responded her brother 'monstrous fallacy' the principle of "all Heana capital indorsed by PresiHe pronounced the first part of the dent Coolidge in his Armistice day ad- word like the part "Illinois. They both laughed. dress "If such law were passed, the right like the Americans do. Prince Nicolas to life property guaranteed said by the Constitution would be abro It's English the name is Helen. the princess explained would be only one result 'What the difference asked the dollar laughing. "between hairdresser and go the entire sculptor?" chinery of trade and would Some of the party knew but they said they Senator Reed saw menace too, in the hairdresser curis up and proposal which said subject began the princess. women children the draft He while sculptor makes faces and blamed fathering the idea. busts.' cut in the prince on the theory that profiteers encouraged buffet supper was served. Governor wars. Baker Missouri Queen The proposal conscript capital and Marie Paulen of Kansas fol well power. in time lowed with Heana and Mayor of war has been urged by the American Beach was third with Mrs. Loose Legion for several THREE BANKS FAIL. ONE SAVED Federal Kansas City, Closes. Down. Beginning the closing of the Federal Trust last week. three Kansas institutions closed doors. The P. E. Laugh Iin operated apart from the deposits million Laughlin bank examiner The day the Terminal Trust Company its $30,000 was the Federal Trust Monday the Waldo State Bank cashier and secretary of the brother of E. The Waldo and banks paratively institutions run started Monday on the Park Bank and avenue. ended when governor of the Kansas City Federal Reserve Bank, told two and women in line that the Bank with 200 behind Park National was taken the bank th crowd watched. The run ended. The Thayer Bank Thayer. Kas., Monday is the only Kansas bank thus far affected by the closing of the Trust Company in Kansas City The Thayer large part its tied up the Federal Trust and also had bought large amount of Federal Trust paper. in Sears Roebuck Thefts The of an alleged out of the Roebuck in Kansas revealed this week the police with the arrest three employees. assistant auditor and garage manager former employee the company The goods valued $5,000 consisted of sets, gung and household furnishings. "WAR LOST BUT FOR U Critical Moment. Chicago- great part taken by our country the favorable clusion the World War," and 'there is little doubt the contest would have terminated had it not been that the assistance sent by America arrived at the critical moThus General Pershing. commander chief the American forces in the World War, paid tribute Armistice day to the under his command. in an address before meeting of the KIclubs here The the United States will not be far off "if the comes when public virtually bought and sold either or indirectly General Pershing "In the light recent in cer tain states.) of our citizens would modify the of se lecting candidates for office. He made plea for preparedness, tending that "if could have armed and equipped even half million men and sent to France early in 1917. the probabilities are that the war could been won that year General Pershing's Armistice day address. carried the European caused considerab abroad Marshal Foch was as he "always had Persh ing his friend and had not believed he would statement. KANSAS Grand Recommends New Law for Annual Investigations. Sweeping criticism of the management of affairs in Kansas City Kas. and Wyandotte County was set out Monday in the final of the Wyandotte County grand jury The criticism was from standpoint of onstructive improvement with to keeping the tax rate down. The jury the city work for law providing for annual grand juries.

7. January 22, 1927 The Kansas City Star Kansas City, MO
Article from The Kansas City Star, January 22, 1927

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BONDS SOLD. Trust Securities Disposed the JEFFERSON Jan. cov. deposits state funds the Waldo State Bank Waldo. suburb Kansas and the Federal Trust Company Kansas City. both closed months have been sold Stephens, treasurer. premium of nearly $10,000. It was anMr. Stephens said the $106,000 in bonds by him for the in the Federal Trust were sold back depositors the bank total The bonds held by the State Bank, brought bonds Mr. Stephens announced that $12,000 first mort real estate notes. not yet due, were guarantee the balance. The bonds cold three firms competitive Virtually municipal securities.

8. July 22, 1927 The Kansas City Post Kansas City, MO
Article from The Kansas City Post, July 22, 1927

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FIVE INDICTED IN INVESTIGATION OF POLICE EXTORTION Joel Dill, Sam Anderson, Kemp, Killingsworth and Meter, Patrolmen, Named in Three Joint Bills Returned by Grand Jury. Three indictments charging extortion and grand larceny were returned against five patrolmen today by the Jackson county grand jury in report to Judge A. C. Southern in the criminal division of the circuit court. The following were indicted: JOEL DILL and SAM ANDERSON, asigned to the detective department, were indicted jointly on charge accepting $50 June from Tony Travalent. KEMP, patrolman, indicted on charge of grand larceny in connection with the theft of clothing valued at $471 from Frank Travalent. CHESTER and H. VAN METER, indicted jointly on third degree robbery charge for $300 August 23. 1926, from Frank and Tony Travalent. The name of Angelo Loscalzo, 418 Prospect boulevard, whose home was destroyed early this morning by an plosion. appeared indorsed on the back of the indictments witness. Dill and Anderson with their torney. W. were the indictments returned. the leave their attorney when to them Monday for on the indictments. Other Names Mentioned. The names of other patrolthe tigation the Kemp. that other grand larceny out clothing thefts when jury its probe of police graft. grand jury adjourned to August when will reconvene investigate the failure the Waldo State the Federal Trust and the City Terminal company Trust company, last November. Laughlin and Raffety. officials John of Waldo State dictments growing out of the failures.