18073. Bank of Krebs (Krebs, OK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 3, 1927
Location
Krebs, Oklahoma (34.928, -95.716)

Metadata

Model
gpt-5-mini
Short Digest
b06d1e08

Response Measures

None

Description

Articles from Feb 3-4, 1927 report the Bank of Krebs suspended/failed as one of several small southeastern Oklahoma banks whose funds had been deposited with the McAlester Trust Company. The failure appears permanent (grand jury and references to failed institutions later in 1927), so classified as suspension leading to closure. Bank type not specified in articles.

Events (4)
1. February 3, 1927 Suspension
Cause
Correspondent
Cause Details
Bank's funds were on deposit with the McAlester Trust Company, whose failure froze reserves and led to the Bank of Krebs suspending/closing.
Newspaper Excerpt
The Bank of Krebs failed to for business, morning ... This is one of the oldest county banks
Source
newspapers
2. February 4, 1927 Other
Newspaper Excerpt
The recent suspension of the First State Bank of Hartshorne and the Bank of Krebs, were contributing factors, it is said.
Source
newspapers
3. September 29, 1927 Other
Newspaper Excerpt
petition ... asks specifically for investigation of the conditions surrounding the failure of the Bank of Krebs and the First State
Source
newspapers
4. * Receivership
Newspaper Excerpt
Closing of a fifth bank in Southeastern Oklahoma as a result of the failure this morning of the McAlester Trust Company ... Like the other small banks involved its funds were on deposit with the McAlester trust company.
Source
newspapers

Newspaper Articles (6)
1. February 3, 1927 McAlester Democrat McAlester, OK
Article from McAlester Democrat, February 3, 1927

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Article Text

SUPREME COURT SAYS $4 INCREASE ILLECAL The state supreme court unaniknocked out the idea advanced by certain House members to the ef fect that the legislators could vote themselves additional "expense" mon above what was set out in the state constitution. resolution. known as House Resolution No. 4, had been introduced in the House and passed that body, giving the members the to draw down as much $4 per day extra for room meals, etc., while they This was to in addition their $6 per day. railroad mileage, stamps stationery, free service. The mater went to the supreme court when State Auditor Shaw point blank to approve the claims turned by members for this extra $4 per When submitted to the supreme court, Hill, of this city, Clifford King, former assistant attorne general, and Ledbetter attorney for the House members wanted the thing to stick, appeared defense of the resolution the thing unconstitu tional, Attorney General Dal and his assistant, Berry King House insisted that it not a proper measure among those against Frank of Roe opposed it. After the argument the court the matter under advertisement shortly handed down an opinion the wholly and tran scended the right of members of legislature. The constitution fixes the members may ceive, the they add to this under the guise of penses' for room rent, other incidentals. Judge Fred Bran son wrote opinion, and court justice, including Judge Lester, of this the opinion, holding that the $4 day and the claims illege not against the state And that efforts to hike in the session. It state $40,000 $50,000, which could been drawn by the members houses, had the court the olution. The Bank of Krebs failed to for business, morning This is one of the oldest county banks, and has always been regarded of the most Marti Shannon. well known in business and livestock circles, was head the bank, and believed its dition such that organizaton can be effected. with proper co-operation depositors.

2. February 4, 1927 Hattiesburg American Hattiesburg, MS
Article from Hattiesburg American, February 4, 1927

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Article Text

(By Associated Press) McALESTER, Okla., Feb. 4.-Both the McAlester Trust Company and the Bank of North McAlester suspended business today. The recent suspension of the First State Bank of Hartshorne and the Bank of Krebs, were contributing factors, it is said. Total deposits of the two Mc . ter banks were about 72,000,000. Banking conditions here caused a furore of excitement and when the First National Bank, the only remaining bank in the city, opened at 9 o'clock a run started. Depositors and spectators gathered in big throngs an hour before the door opened. Amply cash is on hand to stem the crisis it is said.

3. February 4, 1927 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, February 4, 1927

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Article Text

5 OKLAHOMA BANKS CLOSE Failure of McAlester Institution Given As Cause OKLAHOMA CITY, Okla., Feb. 4. (P)-Closing of a fifth bank in Southeastern Oklahoma as a result of the failure this morning of the McAlester Trust Company was announced today at the office of the State Banking Commissioner. The Bank of Pittsburgh was the fifth institution to close. Like the other small banks involved its funds were on deposit with the McAlester trust company. It had deposits of $67,000 at the close of last year. McALESTER, Okla., Feb. 4.-AA)Both the McAlester Trust Company and the Bank of North McAlester suspended business today. The recent suspension of the First State Bank of Hortshone and the Beak of Krebs were contributing factors, it is said. Total deposits of the two McAlester banks were about $3,000,000 Banking conditions here caused a furere of exeitement and when the first National Bank, the entire remaining bank in the city, opened at 9 o'clock, a run started. Depositors and spectators gathered in big throngs an hour before the doors opened. Ample cash is on hand to stem the erisis, it is said.

4. February 4, 1927 Bristow Daily Record Bristow, OK
Article from Bristow Daily Record, February 4, 1927

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Article Text

5 Banks Topple In Failure Of McAlester Bank Assets Tied When McAlester Trust Company Fails to Open for Business Run On Other Bank National Institution Is Hard Pressed. But Stand Heavy Withdrawals of fifth bank southeastern sult of the failure this morning of the Trust today at the office state banking The bank of Pittsburg was the fifth Like the small banks involved reserve on deposit with the Vlester Trust pany had deposits $67.the close year. Five bank examiners were to take charge the banks that closed their result of the the Mc Alester Trust company, the parent bank. The other four institutions are the company, the Bank of North the State bank and Coalgate bank of commerce. Frozen by the pression in cotton caused the run on the Vlester Trust company was by Waldo sioner Reserve funds of the other three banks were on deposit with the trust company he said. The four institutions showed total deposits of nearly $2,500.000 when the state bank call was issued December Deposits of the Alester Trust company to taled the Wapanucka bank $22,000 bank $135000 the North ter $65000 Ernest, and Charles the aminers who have been assigned take charge of the failed insti- Both the Vlester Trust and the Bank of North Mc. Alester business this morning The the State bank Hartshorne and the Bank of Krebs, According financial statement that will be issued mediately the affairs of the MeAlester are such that the banks will re-open in the very The deposits of the two MeAlester institutions approximately two million dollars. Capital stock of the Trust company was $125,000 and the North MeAlester bank capitalization, $15.Banking conditions here caused furore excitement and when the First National bank. the only remaining bank in the city ened at o'clock run started. Depositors and spectators gathered in big throngs an hour before doors opened. Ample on hand assured to stem the Before 10:30 o'elock this mornpractically every business in Alester had made deposits in the First National bank. The number of depositors in line equalled the number of other per. seeking windows in the department. Several of the most prominent men of the munity took position outside of the bank and addressed the crowds. assuring them that the resources behind the Me Vlester banks are adequate protect deThe effect of these talks, considerable measure, tended to restore confidence prevailing found Morrison company

5. February 4, 1927 Okmulgee Daily Democrat Okmulgee, OK
Article from Okmulgee Daily Democrat, February 4, 1927

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Article Text

BUSINESS MEN RALLY TO SAVE NATIONAL McAlester Trust Company Failure Forces Small Institutions Under; Hope To Reopen RUN IS WITHSTOOD Deposits of Merchants Offset Withdrawals At Remaining Bank, Officials Say CITY, Feb. fifth bank southeastern sult of the failure this morning of the McAlester Trust company was announced today at the fice of the state banking commissioner. The Bank of Pittsburg the fifth Institution close. Like other small banks reserve funds were posit with the Trust company. had deposits the close last year Examiners Sent Five state bank enroute take banking that their doors the result the the parent bank. The other the McAlester Trust Bank of North Wapanucka bank Coalgate Bank Frozen assets caused pression cotton the the said assistant sioner. three banks the trust Deposits The total deposits when state bank Issued December the Trust the and North ter Kelly Ernest Charles aminers charge of the failed tions. the Bank North suspended business morning. The recent suspension the State Bank Hartshorne and Bank of Krebs. said. According financial ment. that issued Immedi the affairs the that banks will in the very Run On Remaining Bank The deposits the million dollars. Capital the Trust and North capitalization, Banking conditions here caused furore excitement and when the First National bank, the spectators gathered big throngs hour before doors opened. Ample hand assured to stem crisis, Business Men Rally Before practically every the First bank. The number line equalled the number sons seeking department most prominent munity took the bank addressed the assuring them that the resources behind the banks adequate protect depositors, The effects these talks considerable tended restore confidence.

6. September 29, 1927 McAlester Democrat McAlester, OK
Article from McAlester Democrat, September 29, 1927

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Article Text

File Second Call For Grandjury In Failed Bank Cases For the second time since the failure of a number of state banks. last January and February, a grandjury has been asked by citizens of the county The first grandjury went into many county matters and was in session for several weeks during which time some phases of the bank suspensions were under consideration, it is said. but nothing was brought forward to justify any action, and none resulted The second petition for grandjury wes filed last Friday. and signed largely by citizens of Krebs and Hartshorne In addition to asking for investigation of criminal offenses in the county generally, it asks specifically for investigation of the conditions surrounding the failure of the Bank of Krebs and the First State