Milford State Bank - Milford, MO

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 9, 1928
Location: Milford, Missouri (37.585, -94.158)

Metadata

Model: gpt-5-mini
Short Digest: e298f9fd

Response Measures

None

Description

Directors voluntarily closed the bank because it had been losing money and could not meet expenses; article explicitly says there was not a significant run. Closure appears permanent and liquidation/receiver likely.

Events (1)

1. February 9, 1928 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors closed bank due to chronic losses, insufficient business, legal expenses and underwritten notes (~$23,000) making continued operation untenable.
Newspaper Excerpt: The Milford State Bank closed its doors last Thursday morning after the directors faced the alternative of closing the bank or putting up money to meet current expenses.
Source: newspapers

Newspaper Articles (1)

1. February 16, 1928 The Lamar Republican Lamar, MO

Article from The Lamar Republican, February 16, 1928

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Article Text

DIRECTORS CLOSE MILFORED BANK Was Claimed That Bank Had Never Paid And Had cost Stock Holders Large Sum of Money And More Had To Come If Bank Remained Open The Milford State Bank closed its doors last Thursday morning after the directors faced the alternative of closing the bank or putting up money to meet current expenses. There does not seem to have been any run on the bank to amount to anything but it was said that one or two sizable accounts were with. drawn. The directors were judge Abe Isenhour, Jake Dressler, Ben Ferril and Charley Hubbard. The codition of the bank Wednesday was most critical and Mr. Duncan the cashier, a not to take any deposits and then an effort was made to combine with some other bank that would take over the affairs of the bank. It is understood that some proposititions were made but when it was all boiled down the directors and stockholders were obliged to underwrite the notes which is said tobe around $23, 000. It was thought by one of the directors that almost all the notes were good but some of them would be slow but actually bad or worthless notes would not total more than $1200. Since its o-ganization, the Milford Bank has been losing money and the stockholders have gone down in their pockets and made'up the loss which were mostley due to legal expenses and occasional loss of a loan. In plainlanguage the bank did not do enough business to pay expenses and if every cent loaned had been paid in with interest, there would have been still a deficit. It has cost the stockholders in the neigborhood of $25,000. since it was organized and rather than face further deficits, it was decided to close. A local bank is a great accomodations to the smaller communities but about the only way that it can be handled is for one percon to do all the work and run the whole shebang,aed if he makes a bad of it, it is own bad luck but where salaries, and other necessary expenses must be paid, it just cant be done. Bank examiner Moody is surveying the grounds and will soon be lable to make some definite statements about the future course but it looks now like attornty Timmonds who liquidated the Egger Iantha and Liberal banks will be called upon if something feasible is not settled upon by the stockholders. So many legal aspects are tobe considered that what looks like an extra good plan may be ectirelo out of the Wheel of the Smith car ran over him, breaking his leg. Smith had just passed Mrs. Jackson who teaches in the Lamar school, and after passing the car had kept on the left side of the street and was intending to stop his car at the curb, Carol was taken to the Duckett hospital where it was found that his leg was broken at the ankle. The fracture was re-