17897. Bank of Beaver City (Beaver, OK)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
February 16, 1905
Location
Beaver, Oklahoma (36.816, -100.520)

Metadata

Model
gpt-5-mini
Short Digest
efd085ec

Response Measures

Capital injected, Full suspension, Books examined

Other: Receiver appointed; later reorganization and discharge of receiver approved by judge and bank commissioner.

Description

Newspapers state the Bank of Beaver was closed on account of a run (Feb 16, 1905). A receiver (E. R. Coffey) was appointed and notices list March 1, 1905 as date business must be closed; a receiver's report is dated March 1, 1905. A reorganization and discharge of the receiver is reported May 18, 1905, indicating the bank was reorganized and returned to new management. Articles also criticize under-capitalization and a president who borrowed $14,000 on personal note, supporting bank-specific adverse information as the root cause.

Events (4)
1. February 16, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Under-capitalization (less than 10% of capital paid in) and alleged large personal borrowing by the president ($14,000), producing loss of confidence and withdrawals.
Measures
Efforts to obtain reserve funds from correspondent in Kansas City were hampered by distance; bank examiner inspected bank and later a receiver was appointed.
Newspaper Excerpt
It is true the Bank of Beaver was closed on account of a run
Source
newspapers
2. March 1, 1905 Receivership
Newspaper Excerpt
E. R. COFFEY, Receiver of Bank of Beaver City. Receiver's Report ... at the close of business March, 1st, 1905. ... I, E R. Coffey, Receiver of the above named Bank ... sworn ... E. R. Coffey, Receiver.
Source
newspapers
3. March 1, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following the run and discovery of inadequate paid-in capital and questionable loans/advances, the bank was closed and placed in receivership (receiver E.R. Coffey).
Newspaper Excerpt
All parties indebted to the Bank of Beaver City ... the business of the Bank must be closed up at once. March, 1st, 1905. E. R. COFFEY, Receiver of Bank of Beaver City.
Source
newspapers
4. May 18, 1905 Reopening
Newspaper Excerpt
The Receivership of the Bank of Beaver City is now a thing of the past ... announced the discharge of Mr. Coffey, the Receiver, by Judge ... the Bank Commissioner had previously approved the re-organization ... turns the banks affairs over entirely to the new management.
Source
newspapers

Newspaper Articles (7)
1. February 16, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, February 16, 1905

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Article Text

cy's paper, the Beaver Herald. Ang fair-minded reader of Tracy's statement could not help but see his animosity couched in every line. It is true the Bank of Beaver was closed on account of a run but had the $18,000 reserve "which Tracy admits" held with our correspondent at Kansas City, been in reach the run could have been averted, but Beaver City is 45 miles from a railway or telegraphic communication and it was impossible to transfer funds in time to protect the bank. There was no bank examiner there at the time nor for four days thereafter and when he did come and went thro the bank thoroughly he made the statment that the bank was in as good condition as the average bank of the territory and that it ought to continue in business The examiner-or rather his deputy, Col. Moore-did find some suspense paper. as he finds in each and every bank throughout the territory and but a very small amount was charged off. He never authorized the statement made by Fred Tracy and the said Tracy had no right to make it but, unfortunately, he owned one share of stock in the bank-one hundred dollars -and that gave him an opportunity to "butt in", a thing he never fails to do if he has any pretext for doing so. Had it not been for the personal venom which Tracy had for my son Edward and myself, he never would have rushed into print his false and unauthorized statement. He says he "believes that the bank can be re-organized and continue in business, by home stockholders, and that no one will lose a dollar If this said Tracy had of had a head on him that would require a hat larger than an oyster can. his last paragraph would have been all that he ever would have published. It is true that the bank will go on and I am glad to know that no outsider will be allowed to "butt in" as Fred Tracy did and both stockholders and depositor, will get every dollar. In concluson, allow me to say that thedeputy bank examiner, Col. Moore, compliments my son both clerically and otherwise and if there have been any mistakes made or mismanagement it has been my fault and not his and 1 want the general public to understand it. Yours Respectfully, A. L. McPwerson. The above taken from the Woodward News and coming from the source it does, is one of the rankest impositions yet perpetrated on our people. Is it any money in the pocket of the losers of the defunct bank whether Fred Tracy owns the Herald or not? What connection has that with the bank's failure? In the first place. no false statements were ever made by this paper and it was not the intention to reflect upon either Mc or "my son Edward." We deemed it our duty as a newspaper to publish the facts in the case but even then we shielded Me more than we should have perhaps, for the reason that we did not care to prejudice the minds of the people. 1 As far as Ed is concerned, there is no one here who doubts his honesty and no blame is laid at his door. We cannot aay ne much for old man Mc.

2. February 16, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, February 16, 1905

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Article Text

Why Do Banks Fail? Every bank failure that has occured in Oklahoma in the past two years could have been prevented had the proper examination been made as contemplated under the laws now in force. The utter ruin of several good men the serious financial crippling of hundreds more, and a general lack of confidence in all banks has been the price of penurious economy on the part of the territory in conducting the bank examiner's office. Every bank should be examined by a competent man at least twice a year and four times a year would be better. Had this been done, neither the Capital National at Guthrie, the Citizens Bank at Enid, the Bank of Beaver City, or any other bank in Oklahoma would have failed. All failed from causes which, if known in time, would have been remedied. Both the Citizens Bank and the Capital National failed because they were run along political instead of business lines. Had a competent man examined them before the abuses and irregularities responsible for their downfall had gone too far, he would have called a halt, and no depositor would have lost anything. As for the Bank of Beaver City, we are informed that less than ten per cent of its capital stock was ever paid in, and that soon after its organization the president "borrowed" $14,000 from it on his personal note, without security This condition would have been known, and remedied in time, had proper examinations been made. The bank examiner must not be blamed too strongly for these conditions, for there is four times as much work to do as it is possible for him to attend to with his present force. The safety and solidity of banking institu. tions is absolutely necessary, not only to the general welfare, but for the ordinary daily transactions of business. Banks are useful in two ways, principally, to take care of other people's money, and to loan money on proper security. The safety of the depositor's interests is the first and all-important point, and those bankers who keep this in view seldom or never get into trouble. It is the fellows who are too Joose in the matter of loans, or who engage in wildeat speculation. that cause the trouble. Comparatively few banks are wreased by straight robbery such as the officials absconding with the depositor's money. In almost every instance wherein a banker has departed with a satchel full of money it proved to be only the last net of wrecking the institution; that the record for months back was bad, and that a careful examination at the proper time would have disclosed the true state of affairs and provented a serious loss. Probably no banker in this country ever intended at the outset to wree his bank. It almost invariably takes months of bad management or misplacing of funds to do the work, and during these months is the time to defeet the real conditions. and stop the drift toward failure, This can b done by an eff etive sy stem of exam-

3. March 2, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, March 2, 1905

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Article Text

NOTICES FOR PUBLICATION. Notice to Creditors. All parties indebted to the Bank of Beaver City, of Beaver, O.T., are requested to call at the Bank, at once, and settle their notes and accounts, as the business of the Bank must be closed up at once. March, 1st, 1905. E. R. COFFEY, Receiver of Bank of Beaver City.

4. March 9, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, March 9, 1905

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Article Text

NOTICES FOR PUBLICATION. Notice to Creditors. All parties indebted to the Bank of Bezver City, of Beaver, O.T., are requested to call at the Bank, at once, and settle their notes and accounts, as the business of the Bank must be closed up at once. March, 1st, 1905. E. R. COFFEY, Receiver of Bank of Beaver City.

5. March 23, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, March 23, 1905

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Article Text

Receiver's Report. Report of the condition of the Ba nk of Beaver City at Beaver City, in the Territory of Oklahoma, at the close of business March, 1st, 1905. RESOURCES. Loans and Discounts. $26,300.30 1340.60 Overdrafts, unsecured 1900.00 Draft of A L. McPherson Drafts and checks returned to Trader's 1372.52 Bank Kansas City County and Territorial Warrants 8834 800.00 Banking House 634.00 Furniture and Fixtures 1500.00 Other Real Estate Owned Due from Banks 12,041.99 31.50 Checks and Other Cash Item S 409.60 Cash and sight exchange Total 46,418.85 LIABILITIES 2100,00 Capital Stock Paid in 7900.00 Capital Stock Not Paid in 200.00 Due to Banks to Individual Subject Deposits 33.351.21 check Cashier's Checks Outstanding 1560.56 Total 45,111.77 Territory of Oklahoma, County of Beaver, SS: I, E R. Coffey, Receiver of the above named Bank, do solemnly swear that the above statement is true as shown by the records of the Bank of Beaver City to the best of my knowledge and belief, so help me God. E. R. Coffey, Receiver. Subscribed and sworn to before me this 13 day of March 1905 E. P. Kelley District Clerk. (Seal.) W. T. Quinn Deputy. 3-16 3-23 3

6. March 23, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, March 23, 1905

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Article Text

Receiver's Report. Report of the condition of the Bank of Beaver City at Beaver City, in the Territory of Oklahoma, at the close of business March, 1st, 1905. RESOURCES. Loans and Discounts. $26,300.30 1340.60 Overdrafts, unsecured 1900.00 Draft of A L. McPherson Drafts and checks returned to Trader's 1372.52 Bank Kansas City County and Territorial Warrants 88 34 800.00 Banking House 634.00 Furniture and Fextures 1500.00 Other Real Estate Owned Due from Banks 12,041.99 31.50 Checks and Other Cash Items 409.60 Cash and sight exchange Total 46,418.85 LIABILITIES 2100,00 Capital Stock Paid in 790.000 Capital Stock Not Paid in Due to Banks 200.00 Individual to Subject Deposits check 33.351.21 Cashier's Checks Outstanding 1560.56 Total 45,111.77 Territory of Oklahoma, County of Beaver, SS: I, E R. Coffey, Receiver of the above named Bank, do solemnly swear that the above statement is true as shown by the records of the Bank of Beaver City to the best of my knowledge and belief, so help me God. E. R. Coffey, Receiver. Subscribed and sworn to before me this 13 day of March 1905 E. P. Kelley District Clerk. (Seal.) W. T. Quinn Deputy. 3 3-16 3-23

7. May 18, 1905 The Beaver Herald Beaver, OK
Article from The Beaver Herald, May 18, 1905

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Article Text

The Receivership of the Bank of Beaver City is now a thing of the past a telegrani yesterday announced the discharge of Mr. Coffey, the Receiver, by Judge Paneoast yesterday morning 18 the Bank Commissioner had previously approved the re-organization, his action by the Judge removes the last vestige of the MePherson deal and turas the banks affairs over entirely to the new management.