10665. Bartlett Trust Company (St Joseph, MO)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: December 28, 1926
Location: St Joseph, Missouri (39.769, -94.847)

Metadata

Model: gpt-5-mini
Short Digest: 68dc412a

Response Measures

Full suspension, Books examined

Other: Liquidator appointed and dividends later paid; criminal indictments followed for Fidelity officers.

Description

A run began the week before Dec 28, 1926 and culminated in the bank's board ordering closure and asking the State Finance Commissioner to take charge (Dec 28, 1926). Examiners and a liquidator were later appointed (liquidator appointment Jan 21, 1927 is mentioned). Dividends were later paid out during liquidation (July 1927). The immediate trigger was depositor fear after runs (runs on Bartlett sparked runs on nearby Fidelity); underlying asset weakness from agricultural real-estate loans is noted but the proximate cause of suspension was depositor runs. Therefore classified as run → suspension → permanent closure/liquidation.

Events (4)

1. December 28, 1926 Run

Cause: Local Banks
Cause Details: Depositor fear: a run on another nearby bank (and withdrawals from Bartlett since preceding Thursday) precipitated heavy withdrawals (~$60,000) and crowds storming the bank.
Measures: Appealed to St. Joseph Clearing House for assistance; family/capital proposals (Tootle suggested family buy real estate loans / post collateral) to stop withdrawals.
Newspaper Excerpt: the psychology of fear was demonstrated here yesterday afternoon when a run on one bank caused a run on another...the Bartlett Trust Company...closed its doors after a run lasting since last Thursday
Source: newspapers

2. December 28, 1926 Suspension

Cause: Local Banks
Cause Details: Board ordered closure after runs threatened to become heavy and withdrawals escalated; closure requested state finance commissioner to take charge; clearing house assistance attempts failed or collateral requirements unmet.
Newspaper Excerpt: The Bartlett Trust Company...closed its doors at 12:15 p. m. to-day by order of its board of directors, and wired the commissioner of finance at Jefferson City to take charge.
Source: newspapers

3. January 21, 1927 Receivership

Newspaper Excerpt: McKissick, liquidator of the bank's affairs, yesterday filed with the county recorder a list of approved and rejected claims against the bank...McKissick, liquidator of the bank's affairs, was appointed liquidator on January 21 and at the same time S. C. Cantley, state finance commissioner, named B. Voorhees as attorney to act in the liquidation. (St. Joseph Gazette reports.)
Source: newspapers

4. July 9, 1927 Other

Newspaper Excerpt: cash dividend of 25 per cent. amounting to $500,000, will be paid to depositors of the defunct Bartlett Trust company. That dividend checks amounting to this figure will be placed in the mails tonight...This will be the first payment to be made out of the bank's assets
Source: newspapers

Newspaper Articles (19)

1. December 28, 1926 The Kansas City Star Kansas City, MO

Article from The Kansas City Star, December 28, 1926

Click image to open full size in new tab

Article Text

JOSEPH BANK CLOSES. Bartlett Company Bartlett Trust Company, one of the oldest banks closed its doors today of the board of directors. and the of finance has been asked to take charge. The bank's capital stock $100,000. and the deposits, according to the last statement, were statement today explained the Bartletts that frozen assets had not affected the solvency of the bank, but expedient close the institution continued on the bank. depositor would lose, it was said. The officers the trust company Bartlett. Albert vice-president and John Barrow, vice-president; Walker, treasurer The Bartlett Trust Company, well large land farm business outgrowth which Bartlett Brothers established fifty years That firm widely known throughout Iowa eastern Kansas. The present heads business are sons and nephews the founders.

2. December 29, 1926 Jefferson City Post-Tribune Jefferson City, MO

Article from Jefferson City Post-Tribune, December 29, 1926

Click image to open full size in new tab

Article Text

PSYCHOLOGY OF FEAR IS DEMONSTRATED IN ST. LOUIS By the Associated Press. St. Joseph. Mo., Dec. psychology of fear was demonstrated here yesterday afternoon when a run on one bank caused a run on another. and both institutions closed. The Bartlett Trust company. one of the strongest banks in St. Joseph for years. closed its doors The day since last Thursday. before the institution closed more than $60.000 was withdrawn. and crowds stormed the bank The Fidelity Trust company. having no connection with the Bartlett. of the Bartlett. within a block after the Bartlett closed the Fidelity charge. The Bartlett closed only after ineffectual pleas were made to the Joseph Clearing House association for assistance. Finally an appeal was made to Milton Tootle. Jr., president of the Tootle-Lacy National bank and one of the leading financiers of northwest Missouri. R. E. Shelby. of Stanberry. Mo., a state banking examiner. arrived this morning and took charge of the Bartlett Trust company, and Truman Richards, of Lamar. Mo., another examiner. arrived at the same time and sasumed charge of the Fidelity Trust company. Mr. Shelby said no statement on the condition of the Bartlett company would be made for two weeks, by which time the inventory will be completed. and that the trust company would be re-opened with the state in charge, however.

3. December 29, 1926 Kansas City Journal Kansas City, MO

Article from Kansas City Journal, December 29, 1926

Click image to open full size in new tab

Article Text

2 BANKS CLOSE IN ST. JOSEPH Bartlett and Fidelity Trust Companies S p e d Few Hours Apart. ST. JOSEPH Dec. 28-Two large St. Joseph banking closed their doors today only a few hours apart. The Bartlett Trust company was closed by its board of directors after withdrawals threatened to become a heavy run. Hardly had sign been placed in the saying the bank's affairs had turned over to the state finance commissioner, when the Fidelity Trust company also was closed. likewise closed its doors at the order of its of the closings had any connot known. The Trust company was capitalized at and had deposits Although capitalized at only the Bartlett Trust company surplus of according to bank statements. It was organ. about seven years ago by D. Bartlett, since has served as its president Morton is president and secretary, and L. A. The has $2,000,000 in deposits. According reports in financial in St. Joseph the deposits totaled $1,000,000 more than that a This loss of business and the subsequent closing of the are the of family differences among the heirs of Joseph, a wealthy pioneer St. Joseph family Leaders In financial circles here are confident the Bartlett bank will be the family difficulties be ironed out They declare bank is and would have except for the family differences. From reliable source It was learned the clearing house had attempted to lend hand in out the differences. It is understood the public announcement made yesterday that two members of the family faction opposed to the bank control had been elected to the board of directors, grew out of emanating from the clearing house Apparently this peace move failed of its purpose. TURPENTINE AND ROSIN. NEW York Savannah New York

4. December 29, 1926 St. Louis Post-Dispatch St. Louis, MO

Article from St. Louis Post-Dispatch, December 29, 1926

Click image to open full size in new tab

Article Text

$98,000 RUN CLOSED TWO ST. JOSEPH BANKS Directors of Bartlett and Fidelity Trust Companies Declare Both Are Solvent. ST. JOSEPH, in the Bartlett Trust Co. positors and the Fidelity Trust loss through the closing of fer no two officers of these banks The closings make the 56 State banks which have closed this "The bank cent pay the depositors, but it a of We thought it best to ter close when we did to protect all the depositors. There is in the bank vaults at more than the law money president of the Bart lett Trust Co. the statement by dent the Fidelity Trust Co. of "There is absolutely no question that our depositors are fully protected and that the bank will pay ever he said. The suspension of business by two banks about shortly noon Monday and cipitated by runs on those tions by depositors. When it obvious that the runs would not the board of directors of both ordered the banks closed and wired the State F1 Commissioner at Jefferson City to take over their affairs. Blame Farm Depression. The last statement issued by the Bartlett Trust Co. on Nov. 22 last, total resources of $2,515.of which $1,929,700 were loans on real estate security The company has a paid-up capital of surplus of and undivided profits of $59,000. The Fidelity Company had cap. ital of and deposits of R. E. a deputy State nance Commissioner will be charge of the bank's affairs. The reason for the closing of the Bartlett Trust Co., was given as depression in the agricultural ter loans made on far esWhile the financial difficul of the bank brough about, primarily by the condition of the land loans, it is said to greatly by differ ences among members of the Bart lett family, of which there are eral all in the Bartlett Trust Co., or the Bartlett Mortgage Co. Depositors Withdraw $98,000. Two directors of the Bartlett Trust Co., Marmaduke Morton and George M. Johnson. resigned from the directorate Monday of differences as to the policies of the The announcement of of Albert L. and Walter C. vice and of Bartlett Mortgage Co., as of the Bartlett Trust Co. and taken as indication of the effecting of closer harmony within the family The slow Trust Co., started last Thursday depositors withdrew than The next additional of the bank by depositors an Monday the after the more than $60 H. president a bank to The tion is block from the lett Trust and long and when de from the Bartlett bank.

5. December 29, 1926 Asheville Citizen-Times Asheville, NC

Article from Asheville Citizen-Times, December 29, 1926

Click image to open full size in new tab

Article Text

TRUST COMPANIES FORCED CLOSE AFTER HEAVY RUNS ST. JOSEPH. Mo., Dec. 28. directors the Bartlett Trust Company the Fidelity Trust today placed institutions hands departafter experiencing runs. The The Bartlett Trust Company had resources the Fidelity The former the seclargest Missouri to close year. total of

6. December 29, 1926 Asheville Citizen-Times Asheville, NC

Click image to open full size in new tab

Article Text

SOCIAL SCIENCE WORK PLANNED Cost Of New Encyclopedia Is Estimated Around $650,000 ROCHESTER Dec. Plans for preparation American Social of zations cost of were by the council Historical Associa tion which opened Its 41st annual convention moth of American will occupy the result some of the Edwin professor has been as The work. said. will include aciences either character which connotations. the American Economic tion, American Historical AssociaPolitical Science Sociological Society, American Statistical AssoSociety Association Social Workers. TWO BANKS CLOSE ST. Mo., Dec. them oldest Joseph, were closed day. The Bartlett Trust company closed its doors order board of commissioner asked FidelTrust company closed this The banks are not connected.

7. December 29, 1926 St. Joseph Gazette St. Joseph, MO

Article from St. Joseph Gazette, December 29, 1926

Click image to open full size in new tab

Article Text

SAY DEPOSITORS ARE PROTECTED Both Bartlett and Fidelity Trust Companies Will Pay All Claims, They Say (Continued from Page One) denositors withdrew more than $18 000. The next day almost additional was taken out of the bank by depositors. and Monday, when the bank re-opened after the holidays. more than $60,000 was withdrawn. The St. Joseph Clearing House association was appealed to last week by members of the Bartlett family and Thursday a committee of the clearing house met with members of the Bartlett family and discussed matters of straightening out the finances of the trust company. Christmas day the committee in. formed the bank that It was willing to assist in the liquidation If the Bartlett family would put up $500.000 in collateral or This condition was not met It is said. because the Bartletts could not raise the necessary amount at that time Ask Tootle's Advice Milton Tootle, Jr. president of the Tootle bank. was appealed to Sunday for advice and suggestions. He suggested that the Bartlett fam12, ily buy the bank's real estate hold. ings amounting to about $120,000. and $225,000 in mortgages that the bank owned on which interest had not been paid. With this cash at the bank's command, Mr. Tootle believed, together with the Bartletts' guarantee that all depositors would be paid. would stop the run on she bank, and save the institution. This second effort to save the bank proved fruitless. It is said, because the family could not raise the amount to buy the real estate loans and mortgages. The following statement was made by Mr. Bartlett following the clos. ing of the bank: "The Bartlett Trust company closed its doors at 12:15 p. m. to. day by order of its board' of directors, and wired the commissioner of finance at Jefferson City to take charge. The trust company is savings institution, established 20 years ago by David L. Bartlett and associates, and has been a very suecessful savings institution. paying Its depositors more than $1,000,000 interest on their accounts. Practically all of its funds have been invested in farm loans in the territory tributary to St. Joseph. Up to year ago the company had had no losses on its investments, and has always been in fact one of the cleanest banking institutions in the state, The depression in agriculture and unprosperous condition of the farmers has resulted in foreclosures and the company has acquired approximately in This did not feet its solvency because the company has paid up capital of $100,000, surplus of $175,000. and un. divided profits of over $59,000. The depositors are protected by this fund. which will be mere than ample to take of any possible losses. Recent have been alarming and to protect its depositors the board of directors de cided at noon today, in view of the continued run, to place the Institution in the hands of the commis sioner of finance." Will Pay Every Cent A. L. Bartlett, vice president and director of the Bartlett Trust com pany. had the following statement to make relative to the closing of the institution: "The bank will every cent to the depositors, but be matter of time," said Mr. Bartlett "We thought It best close now. with number of people pulling their monthan to wait until lot of money was drawn out and then find necessa to make those wait who had money in the bank. There is now in the bank vaults more, money than the law requires. "Every loan in the bank is cured except about $10,000 Much of this security is in real estate loans and because of the condition of the farm loans the present situation was brought about. The real estate loans are practically all first mortgages and are all good. "Considerable of the money is secured by good collateral Practically all of the $10,000 not secured is good. "There has been gradual pulling out of money from for the last year and a half There has not been what you could call a run but the money has been taken out in small Recently more was taken and above was withdrawn. So we decided to close all the people could get their money at the same time. rather than to have some get their money now and have others walt. "Not only does the bank have practically all of Its money loaned well secured. but It has no borrowed bills payable This is something that probably no other bank here can say "The bank last examined by representative of the state bank commissioner's office about Dec. 6. He reported the condition good ex cept that the real estate joans were too heavy. The directors of the Bartlett Trust company are listed as David L. Bartlett, Albert L. Bartiett. Jerome Bart. lett. J. D. Barrow, Robert G. Clayton George M. Johnson. Marmaduke M Morton, W. A. Petree and Walker Mr. Johnson and Mr. Morton resigned from the directorate Monday A. Bartlett also is president of the Bartlett Mortgage company, which has no connection with the trust company in any way. company was formed some two years ago and maintain offices on the fourth floor the Partlett Trust at Eighth street and Frederick avenue. Other officers of the Bartlett Mortgage company are D. L. Bart. vice president and treasurer; and A. L. Bartlett, Jr., secretary. Fidelity Resources $566,300 The total resources of the Fidelity Trust company are listed as $566,300 in the last statement sent to the state banking commissioner The total deposits are $414,875. including $284.070 demond deposits and $130,805 time deposits. This statement also lists as bank loans and 8.42500 in bills payable. The capital of the institution is $100,000. all of which paid up. The officers of the Fidelity Trust company are Stewart, prestdent: N. S. Hillyard, vice president: W. Power, vice president: J. H Stewart, treasurer; and C. E. Grable secretary Mr. Hillyard declared that he no longer was an officer of the bank having resigned about six months ago. The list of directors is as of June last. The members of the board of directors are Stewart, R. E. Davies, B. T. Quigley. C. E. Grable. J. Yocum and J. H. Stewart. City Depositor At the time of the closing of the Fidelity Trust company the city had on deposit in that institution about $95,000. but according to James S. Burris, city comptroller, this amount It protected by $500,000 penal bond signed by N. S. Hillyard and R. Bilby. Mr. Bilby also was one of the signers of the Indemnity bond se. curing the city's deposits of $85,000 which It had in the Security Bank of South Park when It closed May last. C. O. Cornellus, president of the Farmers & Traders bank at Nineteenth street and Frederick avenue. said last night that his institution has no connection with the two banks that closed. He declared he believed that the Farmers & Traders bank is located "on the avenue" as is the Fidelity Trust company, when rumors first came out relative to the closing of the Fidelity Trust company, there was some misunderstanding, and similar rumor was started concerning the Farmers & Traders' bank. Late yesterday afternoon there were rumors circulating about that the Wells-Hine Trust company of Savannah, Mo., had closed its doors because of the failure of the FidelIty Trust company here. The WellsHine institution is in an excellent condition and is not in any way connected with the Fidelity Trust company, Walter B. Wells. president of that bank said last night. Aside from its connection with the First National bank and the National bank, Mr. Wells. declared the Savannah bank was not connected with any other banks or trust cony. panies in St, Joseph. The Bank's Statement 757,259.70 Total time payable cluding deposit tions representing other counts Notes and bank None Other liabilities 1,276.94 Total The following statement showed the condition of the company No. vember 22, 1926: RESOURCES LOANS AND Loans and collateral curity Loans on security Total United States owned any) Total Real other than bank. CASH DUE FROM BANKS AND Cash hand and from other bankers and subject check Exchanges ing house Total due from banks and bankers Items 27.00 Other resources Total LIABILITIES Capital stock Surplus 175,000.00 Undivided profits 78,365.40 penses 49,594.38 Reserved Cashier's subject bankers to check Total demand TIME Certificates money Savings deposits or more

8. December 29, 1926 The Iola Register Iola, KS

Article from The Iola Register, December 29, 1926

Click image to open full size in new tab

Article Text

FEAR CLOSES BANK. One Institution Falls, Run Made Another. St. Joseph, Mo., Dec. The here yesterday afternoon when run one bank caused run another, and both institutions closed. The Bartlett Trust Company, the strongest banks years, closed its doors after run lasting since last Thursday. The day beinstitution closed more than withdrawn, and stormed the bank. The Fidelity Trust having connection with the block the Bartlett, and hundreds deposits larger trust company yesterday moring, quick began Fidelity Just hours after the Bartlett closed the Fidelity up sign had asked the state missioner of finance to charge.

9. December 29, 1926 The Sedalia Democrat Sedalia, MO

Article from The Sedalia Democrat, December 29, 1926

Click image to open full size in new tab

Article Text

COUPLE OF Ineffectual Plans To ert Closing Made By Bartlett Company. The Associated Press ST. JOSEPH, Mo., Dec. psychology of fear here yesterday when one bank caused run on another, and The Bartlett Trust Company, the strongest banks in Joseph for years, closed its doors o'clock, after lasting since day before the institution closed more than 000 withdrawn, and crowds stormed the bank. The Fidelity Trust Company, ing no the Bartlett, within block the Bartlett, when hundreds withdrew posits the larger trust company yesterday morning, quick on Fidelity Just hours the Bartlett closed the Fidelity put sign that had asked the of finance charge. The Bartlett closed only after pleas made to the Joseph Clearing House tion assistance. Finally appeal made Milton president the National Bank, and the leading financiers Northwest Missouri. Mr. Tootle suggested that members the Barlett family buy all estate holdings of the trust pany. This with an Bartletts that depositors could they would, his opinion, the stitution. This suggestion was followed. Shelby, of Stanberry, state bank arrived morning the Bartlett Trust Company, Richards, Lamar, other examiner, the charge Fidelity Trust Mr. Shelby statement condition the Bartlett pany would made for which the inventory will completed, and trust company be re-opened, with the state Cantley Missouri State will Joseph affairs will confer Examiners Shelby and Truman Richards officials desirious learning chances they given for which time the may banks proceed

10. December 29, 1926 The Hutchinson News Hutchinson, KS

Article from The Hutchinson News, December 29, 1926

Click image to open full size in new tab

Article Text

Fear Caused Run On Second Bank St. Joseph, Mo., Dec. psychology of fear was demonstruted here yesterday afternoon when run one bank entised run another and both Instituclosed. The BartJeit Trust company, one of the strongest banks SL Joseph for years, closed Its doors at lasting since lust Thursday. The day before the closed more than $60,000 withdrawn crowds stormed bank. The Fidelity Trust company, havIng no with Bartlett is within block the Barilett. and when hundreds withdrew deposits the larger company, yes. terday morning, quick run began un the Phielity. Just two hours after the Bartlett closed. the Fidel. Ity put up sign that had asked the state commissioner of finance to take charge.

11. December 29, 1926 The Daily Sentinel-Tribune Bowling Green, OH

Article from The Daily Sentinel-Tribune, December 29, 1926

Click image to open full size in new tab

Article Text

Two Western Banks Close ST JOSEPH. Mo., Dec. Two large St. Joseph banking stitutions closed their doors today few hours apart The Bartlett Trust of the city's oldest one closed by its board of directors ter steady threatened to become heavy run. Hardly had sign been placed in the window, saying the bank's affairs had been over the State Finance Commissioner. than the Federal Trust Company also was closed. It likewise closed its doors at the order of its board of directors Whether the closings had any bearing on each other of known.

12. December 29, 1926 The Daily Republican Poplar Bluff, MO

Article from The Daily Republican, December 29, 1926

Click image to open full size in new tab

Article Text

TWO BANKS CLOSED FOLLOWING 'RUNS' St. Joseph, Mo., Die. The psychology of fear was demonstrated here yesterday afternoon when a run on one bank caused run. on another, and both institutions The Bartlett Trust Company, one of the strongest banks in St. Joseph for years, closed its doors at 12:15 o'clock, after a run lasting since last Thursday. The day before the institution closed, more than $60,000 was withdrawn, and crowds stormed the bank. The Fidelity Trust Company, having no connection with the Bartlett. is within a block of the Bartlett and when hundreds withdrew deposits, at the larger trust company yesterday morning, a quick run began on the Fidelity. Just two hours after the Bartlett closed the Fidelity put up a sign that it had asked the state commissioner of finance to take charge. The Bartlett closed only after in effectual pleas were made to the St. Joseph Clearing House Association for assistance. Finally an appeal was made to Milton Tootle, Jr., president of the Tootle-Lacy National Bank, and one of the leading financiers of Northwest Missouri. Mr. Tootle suggested that members of the Eartlett family buy all real estate holdings of the trust company. This act, with an assurance by the Bartletts that all depositors could get any cash they wanted, would, in his opinion, save the institution. This suggestion was not followed. St. Joseph, Mo., Dec. 29.-(AP)S. L. Cantley, Missouri commissioner of finance, will be in St. Joseph tomorrow to look into the affairs of the two trust companies. He will confer with Examiners Shelby and Richards, and with officials of the two institutions, who are desirous of learning what chances they have of reorganizing. Ten days are given for reorganization at the end of which time the commissioner may at his own option, turn the banks over to the new organization or proceed to liquidate.

13. December 30, 1926 The Sedalia Democrat Sedalia, MO

Article from The Sedalia Democrat, December 30, 1926

Click image to open full size in new tab

Article Text

OF Plans To ert Closing Made By Bartlett Company. The Associated ST. JOSEPH, The chology of fear demonstrated here Monday afternoon when bank caused run another, and institutions The Bartlett Trust Company, the strongest banks in Joseph for years, closed its doors o'clock, after lasting since Thursday The day before institution closed more than 000 withdrawn, and crowds stormed the bank. The Fidelity Trust Company, no connection with the Bartlett, within block of the Bartlett, and when hundreds withdrew posits at the larger trust yesterday morning, quick Fidelity. Just two hours after the Bartlett closed the Fidelity put sign that had asked commissioner of finance charge. The Bartlett closed only after pleas made to Joseph Clearing House Associaassistance. Finally appeal made Milton Tootle, president of the National Bank, and of the leading financiers of Northwest Tootle that members the Barlett family buy all real estate holdings the trust com pany. This with an assurance the Bartletts that all depositors could get any they wanted, would, opinion, the stitution. This suggestion was not followed. Shelby, of Stanberry, state bank arrived this morning took charge the Bartlett Trust Company, and Richards, of Lamar, Mo., other examiner, the time and assumed charge of Fidelity Trust Mr. said no statement on the condition of the Bartlett would be made for which the inventory will completed, trust company will be re-opened, with the state in charge, however. Cantley, Missouri State Commissioner of Finance, will Joseph look affairs the trust companies. He will confer Examiners Shelby and Truman Richards and with officials of institutions, who desirious learning chances they Ten days given at the end of which time the sioner, his option, may turn banks over the tions or proceed liquidate.

14. December 31, 1926 Effingham Daily Record Effingham, IL

Article from Effingham Daily Record, December 31, 1926

Click image to open full size in new tab

Article Text

BANKS CLOSE THEIR DOORS St. Joseph, Mo., Dec. 29.-The Bartlett Trust Co., one of the oldest banks in St. Joseph, closed its doors today by order of the board of directors, and the State Commissioner of Finance has been asked to take charge. The bank's capital stock is $100,000 and deposits, according to the last statement, were $2,100,000. The Fidelity Trust Co., with a capital stock of $60,000 and deposits of 8414,874, closed its doors this afternoon. It is not connected with the Bartlett Trust Co. The bank's last report gave undivided profits S7865: loans $463,372 and total resources Depression in agricultural territory and consequent foreciosures of farm loans are given as the reasons for the Bartlett company's closing in formal statement issued by the direcAccording to the last statement of the company total loans amounted to $1,993,012.25. Time deposits amounted to $1,422,356.40 and demand deposits amounted to $157,239.70. and surplus fund totaled $175,000 A. L. Barilett, president of the trust company, agnounced that all depositors would be paid in full. The_Bartlett Trust Co. is allied with the Bartlett Brothers Land and Loan Co., and the trust company has been purchasing farm loans of the loan company. of opinion have directors and yester-

15. April 1, 1927 St. Louis Post-Dispatch St. Louis, MO

Article from St. Louis Post-Dispatch, April 1, 1927

Click image to open full size in new tab

Article Text

ARRAIGNED BANKERS Indictments Follow Closing of Two Banks With Heavy Loss to Depositors. JOSEPH Mo., April president the which closed Dec. ity Trust Co., Harold Stewart, his 28, and were arraigned cashier, Criminal Court Buchanan County indictments returned on the grand jury yesterday The father faces nine ments and the son five with the failure of the tion ity The elder Stewart charged with lending more than himself, obtaining signatures notes fraudulently, embezzling and accepting deposits he knew the failing The son is charged with accepting posits when he knew the bank Seven Others Arraigned The president, cashier five directors of the Security Bank, which failed .May were arraigned late on indictments yesterday They W. Reed, president: Paul Holme, cashier, and Holme Veach Wilson, Beale, William Whittaker and Beaghler, rectors. There are eight indictments against each charge cepting they knew bank failing and three lending. Dr. Holme is member of the Missouri State Board of Osteopathy and formerly was member of the St. Joseph Library Board. Beaghler secretary and cashier the First Trust at Savannah which failed last year. He is under indictment in County connection that failure The grand jury has been under since was called by Judge Utz. Cantley, State Finance Commiswas of the and Robert Orr, liquidator for dator for the Security also testified books and records and of the bank to the jury The Security Bank capitalized for and When officers stated that depression in the agricultural area was responsible, but belief was expressed that would lose So positors the dollar has only cents been paid depositors, but the liquidator expects to pay another 10 month. Attributed Failure to Fear. The Trust capitalized for and deposits taled About year American Exchange absorbed the Bank of Joseph. The failure of Fidelity was attributed by its officers psychology of fear. The depository few steps from located which closed Bartlett Trust Co., after heavy earlier in the

16. April 1, 1927 The Sedalia Democrat Sedalia, MO

Article from The Sedalia Democrat, April 1, 1927

Click image to open full size in new tab

Article Text

BANKERS INDICTED WERE Cashier And Five Directors Accused In Bank Crash Associated ST. Mo., April Stewart, the Fidelity Trust Company which closed cember and Harold cashier of the bank, arraigned in the county criminal court on indictments returned by grand yesterday. The were the first accused appear from list nine indicted. The father faces nine indictments and the son five in connection failure the Fidelity. The elder Stewart charged lending more than $40,000 to him signatures fraudulently, embezzling accepting deposits knew the bank failing. The with accepting posits when he knew the bank failing. The president, cashier and five directors Security State Bank, which failed May 12, arraigned today indictments returned yesterday They W. Reed, president; Paul Holme. cashier, and Dr. Veach Wilson, Beale, William Whittaker and directors. There eight indictments against each man. Five charge cepting money when they know bank failing and three charge them Each gave bond $10,000 for trial in May. Dr. Holme member the Missouri State Board Osteopaand formerly the St. Joseph Library Beaghler of First Trust Company Sayannah, failed He under indictment in Andrew County in connection with that fail The grand jury investigation been under February called by Judge Utz. state finance was one the nesses Robert Orr, liquidator for the and Brennan, liquidator for the security, testified presented books records of the bank the grand jury. The Security Bank capitalizfor $10,000 and deposits When closed May officers stated that depression the agricultural responsible, the belief expressed that depositors would lose little. So far only 10 cents the dollar on have been to depositors, but the expects to pay an other cents next The Fidelity Trust capitalizfor $100,000 and deposits totaled About year ago sorbed the American Exchange Bank St. Joseph. The failure of Fidelity attributed its officers to the psychology fear. The institution located few steps from the Bartlett Trust Company, which closed earlier day, after heavy Fidelity deposithe the Bartlett they began run stitution. The grand jury returned Bart officers blame in nection with that failure. No payments to depositors have made the Fidelity four months for filing claims belief expressed banking circles that finally will between and cents dollar

17. April 1, 1927 The Daily Republican Poplar Bluff, MO

Article from The Daily Republican, April 1, 1927

Click image to open full size in new tab

Article Text

Bankers Held In Connection With Bank Crash By Associated Press. St. Joseph, April 1.-J. T. Stewart, president of the Fidelity Trust Company, which closed December 28, and J. Harold Stewart, his son, cashier of the bank, were arraigned in the Buchanan county criminal court today, on indictments returned by the grand jury yesterday. The Stewarts were the first two accused to appear from the list of nine bankers indicted. The father faces nine indictments and the son five in connection with the failure of the Fidelity. The elder Stewart is charged with lending more than $40,000 to himself, with obtaining signatures to notes fraudulently, with embezzling, and with accepting deposits when he knew the bank was failing. The son is charged with accepting deposits when he knew the bank was failing. Dr. Holme is a member of the Missouri State Board of Osteopathy, and formerly was a member of the St. Joseph Literary Board. Beaghler was secretary and cashier of the First Trust Company at Savannah, which failed last year. He is under indictment in Andrew county in connection with that failure. Records to Grand Jury. The grand jury investigation has been under way since February 14, when it was called by Judge W. H. Utz. S. L. Cantley, state finance commissioner, was one of the witnesses, and Robert Orr, liquidator for the Fidelity, and E. W. Brennan, liquidator for the Security, also testified and presented books and records of the banks to the grand jury. The Security Bank was capitalized for $10,000 and deposits were $350,000. When it closed last May officers stated that depression in the agricultural area was responsible, but the belief was expressed that depositors would lose little. So far only 10 cents on the dollar have been paid to depositors, but the liquidator expects to pay another 10 cents next The Fidelity Trust was capitalized for $100,000 and deposits totaled $700,000. About a year ago it absorbed the American Exchange Bank of St. Joseph. Attributed to Fear. The failure of the Fidelity was attributed by its officers to the psychology of fear. The institution was located a few steps from the Bartlett Trust Company, which closey earlier in the day, after a heavy run. When Fidelity depositors saw the run on the Bartlett they began a run on their own institution. The grand jury report, returned yesterday, absolves Bartlett officers of any blame

18. July 9, 1927 St. Joseph Gazette St. Joseph, MO

Article from St. Joseph Gazette, July 9, 1927

Click image to open full size in new tab

Article Text

FULL LIST OF APPROVED AND REJECTED AWARDS FILED McKissick, State Liquidator, Is Ready to Appear in Circuit Court Today and Request Authority to Pay Out Money; Claims Rejected Total Only $108. News of vital importance to hundreds of St. Joseph families is that cash dividend of 25 per cent. amounting to $500,000, will be paid to depositors of the defunct Bartlett Trust company. That dividend checks amounting to this figure will be placed in the mails tonight was learned definitely night The Gazette. This will be the first payment to be made out of the bank's assets and comes as pleasant surprise to tors the of many individuals and business men who were deposithe trust company. McKissick, liquidator of the bank's affairs, yesterday filed with the county recorder a list of approved and rejected claims against the bank, and today will appear before Judge A. Vories in division No. of the circuit court to petition showing the amount of cash on hand and to ask the court for an order declaring the dividend.

19. July 9, 1927 St. Joseph Gazette St. Joseph, MO

Click image to open full size in new tab

Article Text

DEPOSITORS WILL NOT LOSE In the days that the closing of this popular St. Joseph banking institution it was declared by officials of the bank that none of the depositors would lose through the suspension of business and that liquidation the bank's affairs would show the trust company to be in solvent condition. Mr. McKissick, who has had considerable experience in the liquidation of closed banks for the state finance department, was appointed liquidator on January 21 and at the same time S. C. Cantley, state finance commissioner, named B. Voorhees as attorney to act in the liquidation. On the same day that the Bartlett Trust company closed. the closure of the Fidelity Trust company less than a block away. R. Orr was liquiof the latter bank, with Judge G. Zwick dating agent as attorney. Since that time both men in charge of the affairs of the Bartlett and Fidelity banks have been at work to salRecently an announcement was made that the Fidelity bank would pay its first dividend in August, amounting possibly to 35 per cent.