Commercial Bank - Lawson, MO

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 4, 1926
Location: Lawson, Missouri (39.438, -94.204)

Metadata

Model: gpt-5-mini
Short Digest: 1dcb85b1

Response Measures

None

Description

The Commercial Bank at Lawson closed its doors in early May 1926 (articles give May 4–6, 1926). Directors closed the bank citing unprofitable business and to prevent a run; the state banking department took charge and a receiver was later active (receiver filed suit by July). This indicates a suspension that led to permanent closure/receivership rather than a standalone run.

Events (3)

1. May 4, 1926 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors cited 'unprofitable business' and closed to prevent a depositor run; bank insolvent/unsound condition implied by closure and state takeover.
Newspaper Excerpt: The Commercial Bank at Lawson closed its doors Tuesday evening and the state banking department was immediately notified to take charge of the institution.
Source: newspapers

2. May 6, 1926 Other

Newspaper Excerpt: STATE BANKING OFFICIAL STARTS AUDIT IN LAWSON ... F. W. Hyde, deputy finance commissioner, arrived in Lawson ... and is conducting the audit. The bank closed its doors Tuesday afternoon at the close of business for the day. ... the bank will be able to pay out.
Source: newspapers

3. July 12, 1926 Receivership

Newspaper Excerpt: Receiver for Commercial Asks Judgment Against Wm K. Rippy ... The bank was forced to close May 4th, 1926. ... replevin suit was filed by the bank to obtain possession ... at the same time replevin suit was filed by the bank to obtain possession of the property on which chattel mortgage was given ...
Source: newspapers

Newspaper Articles (3)

1. May 6, 1926 The Hardin News Hardin, MO

Article from The Hardin News, May 6, 1926

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Article Text

BANK AT LAWSON CLOSES Unprofitable Business is Given as Reason for Discontinuance of Business Tuesday The Commercial Bank at Lawson closed its doors Tuesday evening and the state banking department was immediately notified to take charge of the institution. Officials of the bank state that the depositors will be paid, and the action of the directors in closing the institution was decided upon in order to prevent a run on the bank by its depositors. This looks like a wise move on the part of the officials, as this likely will give each depositor his or her full amount. The bank is capitalized at $20,000, has a surplus of $20,000 and its undivided profits are $4,182.24. The deposits total $248,220.18. Rev. J. H. Thomas has tendered his resignation as pastor of the Henrietta Baptist church, to take effect next Sunday, May 9th, when he will preach his farewell sermon that evening.

2. May 6, 1926 The Kansas City Post Kansas City, MO

Article from The Kansas City Post, May 6, 1926

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Article Text

STATE BANKING OFFICIAL STARTS AUDIT IN LAWSON RICHMOND, MO., May 6.Whether an investigation by the prosecuting attorney is to be made into the failure of the Commercial bank of Lawson depends on the results of an audit of the institution's affairs. A. Moody Mansur, Ray county prosecutor. said today he had not inyestigated the failure to determine there is criminal liability, Mr. Mansur said an investigation probably will be made if the results of the audit justify such action. F. W. Hyde, deputy finance commissioner. arrived in Lawson from St. Joseph last night and is conducting the audit. Mr. Hyde estimated a week or ten days would be required for him to complete his work. The bank closed its doors Tuesday afternoon at the close of business for the day. S.Y. Griffith, cashier of the bank. declined today to discuss the closing. He has said previously that this action was taken to void a run on the bank and destroy its ability to pay the depositors in full. Mr. Griffith said the bank will be able to pay out.

3. July 12, 1926 The Richmond News Richmond, MO

Article from The Richmond News, July 12, 1926

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Article Text

LAWSON SUED BANK Receiver for Commercial Asks Judgment Against Wm K. Rippy for $9,500 on Unpaid Note. The and concealment of with the purpose of defrauding the closed Commercial Bank Lawson is alleged against William Rippy, by Spillman, special deputy finance commissionin suit filed Friday in the Ray county circuit court. The bank was forced to close May 4th, 1926. At that time the bank sessed Rippy's signature on note for $9,500. Securing the note was chattel mortgage on stock hogs. The plaintiff alleges that June, 1926, Rippy sold the hogs and deposited the money in another bank, The Bank of Lawson, and has refused to pay the proceeds to the Commercial Bank. Specifically the charges are: "That said defendant has fraudulently conveyed and assigned his property and effects, as to hinder and delay his creditors. "That said defendant has fraudulently concealed removed and disposed of his property and effects, to hinder and delay his creditors. "That said defendant about fraudulently to convey his property and effects, SO as to hinder and delay creditors. "That said defendant is about fraudulently to conceal, remove and dispose of property and effects, as to hinder and delay his creditors. "Wherefore plaintiff prays judgment in the sum of $9,500, with terest and all costs." Lavelock, Kirkpatrick, Clark and Garner are attorneys for the plain- At the same time replevin suit was filed by the bank to obtain possession of the property on which chattel mortgage was given by Rippy, together with 8500 damages.