18123. Security National Bank (Muskogee, OK)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
12277
Charter Number
12277
Start Date
October 21, 1925
Location
Muskogee, Oklahoma (35.748, -95.370)

Metadata

Model
gpt-5-mini
Short Digest
ff4cf497

Response Measures

Full suspension, Books examined

Other: Receivership and liquidation with dividends paid to depositors by Receiver L.R. Kershaw.

Description

A run on Security National Bank began 1925-10-21, directors closed the bank that day to protect depositors; the bank subsequently went into receivership (receiver L. R. Kershaw) and paid dividends in 1926. OCR errors corrected (tational -> National).

Events (3)

1. October 21, 1925 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors and alarm from seeing employees working day and night spread derogatory rumors that gained headway and triggered heavy withdrawals.
Measures
Directors closed the bank at 12:35 p.m. to protect depositors; placed under supervision of national bank examiner and undertook reorganization.
Newspaper Excerpt
directors stated Tuesday afternoon they ordered the doors of the institution closed to business at 12:35 o'clock Tuesday noon...the public had not started a run the bank.
Source
newspapers
2. October 21, 1925 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank suspended operations after run provoked by derogatory rumors; closure intended to protect depositors and allow reorganization under examiner supervision.
Newspaper Excerpt
board of directors stated Tuesday afternoon they ordered the doors of the institution closed to business at 12:35 o'clock Tuesday noon.
Source
newspapers
3. April 13, 1926 Receivership
Newspaper Excerpt
More than $350,000 has been paid in dividends to former depositors of the National bank. Receiver L. R. Kershaw said today.
Source
newspapers

Newspaper Articles (3)

Article from Muskogee Daily News, October 21, 1925

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Article Text

STEPS TAKEN AT FOR CONCERN Strengthen InstituAbout Complete When "Run" Started Will That Every Depositor Will Be Paid In Full" Statement Says Complete reorganization of the Muskogee tional Bank will be undertaken, board of directors stated Tuesday afternoon they ordered the doors of the institution closed to business at 12:35 o'clock Tuesday noon. Plans for reorganizing the institution had been in progress for a week, directors stated, and would have culminated Tuesday noon if the public had not started a run the bank. For the past ten days members of the bank have been working day and night auditing all books, papers and accounts preparatory to the change of officials in the institution. People seeing the bank employees working day and night became alarmed and spread rumors derogatory to the institution. Rumors gaining headway caused bank Tuesday morning. Officials the tional bank then decided protect all depositors and close the doors. Roberts Kansas City, Mo., national bank examiner charge of Kansas City district is supervision of the bank here. MORE Working on Reorganization Numerous depositors the bank, when quainted fact that bank preparing strengthen itself by changing officials, showed their faith in institution by fusing to withdraw any of their counts. The statement issued by the board of directors of the Security National bank follows "The bank has been working out a deal with interested parties the past few weeks and had it practically closed Tuesday noon for the institution to change hands. have audited the papers and accounts of the stitution and have had them before the clearing house. "There is nothing to be alarmed about. "We feel that every depositor will be paid in full as we have enough assets to cover all accounts. The last statement of the bank showed more than two million dollars assets. The capital of the bank is $200,000 and the surplus $40,000. there was a considerable run the bank this (SEE PAGE THREE)


Article from Muskogee Times-Democrat, April 13, 1926

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Article Text

SECURITY PAYS ABOVE $350,000 More Than Half of Money Allotted in Dividend Is Paid Out More than $350,000 has been paid in dividends to former depositors of the National bank. Receiver L. R. Kershaw said today. During the first day about $240,000 was paid out, a re-check made this morning showed. Today more than hundred thousand dollars went over the counters before 2 'clock, It was Most of the $605,000 available in the initial dividend of 50 percent will be paid-out by tomorrow night, it was predicted. Meanwhile efforts are being centered by Receiver Kershaw upon further collections in an effort to have a second dividend available within the next few months


Article from Harlow's Weekly, March 22, 1930

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Article Text

hat he wore when he played football. (Not the very same one, but the same style.) The funny part about it, he could have a new suit every day if he wished and have his nails manicured, do society and everything, for he not only has made a success in farming but has made money with his gas and oil properties. (He makes a success of everything he does, never has made a failure of any business venture. He is not an extremely wealthy man, but is in the truest sense, a business success.) His flair is not for society but runs to the farm; he just can't get away from it, and doesn't try. It wouldn't be right to leave you with the impression that this man Kershaw can't dress and act the part when the occasion demands. He is a man of education and is at home in any type of surroundings. What I'm trying to convey is that he is always just himself, just as plain as an old shoe, and is never self-conscious because always sure of himself. We mustn't leave this personal resume without a glimpse at "his folks." He has a grown son who is away at law school, an adoring wife who thinks "Ray" is the last word in everything, a very interesting little daughter, Patty, who is 5 years old-and then the twins, Betty and Bobby, who are 2 years old. His aged mother is also a member of his household. He has made quite a name for himself in banking circles for besides successfully building and managing his own banks in those early days, he has the unique distinction of taking over a defunct bank as receiver and making the thing pay the depositors nearly 100% on the dollar. You know he was made receiver of the Security National Bank of Muskogee-one of the largest banks in eastern Oklahoma-in 1926. The federal bank authorities were willing at the time to sell the bank's assets for 70 percent, but Kershaw thought he could make it pay 85 percent. He has done better, it now has paid the depositors 88 and may pay 90 or 95 percent. The punishment he has taken in trying to get this matter settled and the many pressures that have been brought to bear in order to make him "compromise" certain claims, would fill a book. I really should not use the word "punishment" in reference to him, for his fighting spirit makes him impervious to pressure and the more opposition he has, the harder he strives to surmount the obstacle. He lays his cards on the table face up where all can see and plays the game to the end for its always well thought out. This capacity for decision, and his love for a fight makes him a hard fellow to come up against if you are not going his way. Some of those bank stockholders found this true and paid up rather than "cross" him. And the more than 8,000 depositors in that bank will all swear by his business capacity and integrity. This may not sound like such a very big thing to people who have not lived in Muskogee, but to one living in that city, seeing other banks fail, the papers carrying great headlines as to what would happen to the stock holders if they didn't pay up, watching day by day for something to happen and then seeing absolutely nothing done and the depositors receive no dividend at all, this does stand out as a worthwhile achievement, for it's the only defunct Muskogee bank that was handled upon a business basis and made to pay out. He has always been active in politics, from the time when, still too young to vote, he was employed to "herd" the voters to the polls in Illinois, to the later years when he has been a real factor in deciding party policies in Oklahoma. He's a good politician but not the kind that can think only politics and nothing else, until there's just politics left. You see the managing of his various enterprises has come first. His first noticeable state-wide political activity was when John Fields was a nominee for governor. He was prominent in the Live Stock Association at that time and "John" was active in farm circles, SO Kershaw dropped his own business, opened up a "John Fields' headquarters" at Muskogee and got in with both feet. He always has wanted to see a man who really understood the farmer be governor of the state. He worked SO effectively in this campaign that at the next reorganization period he was made county chairman. He held this place during the "Pine" campaign and the majority given Pine from democratic Muskogee County is largely credited to his management. He went as a delegate to the National Convention at Cleveland and as a member of the Credentials Committee led the fight to seat the Port Rican delegates That was a real fight, and if I had room I'd like to tell you about it, for it was a fine example of how he always functions for fair play and decency, and how he is able to keep his feet and succeed in a contest, no matter how large the arena or how important his opponents. But if you are interested enough, inquire of Judge Ed Vaught, who watched him put on that struggle. He's taken time though, to become a lodge member, a thirty-second degree Mason, a Knight Templar, a Shriner, an active Chamber of Commerce man, member of the Farm and Country Club, and to be active in all civic movements, and to stay in continuous touch with republican activities in Muskogee and Oklahoma state. Kershaw's friends think that Oklahoma has been waiting for just this type of man to lead the republican party to victory. Here he is-hard working, fearless, with proven business ability, with the capacity for handling things on a big scale in a big way, a stickler for law enforcement-any and all laws-common sense, honesty, never any strings tied to him, hard to get a promise, but will keep it when made, and imbued with self-confidence. Surely a man made to order for this particular occasion; the right man to meet the situation as it is to-day. Kershaw is not known politically all over the state, but he will be before this ':ampaign is over. He is not entering this race as a stepping stone to something else, but is in it to the finish and to win-and all his life has been accustomed to win. He expects to not only win the nomination but also to win the election-for he has some very definite ideas about running the state upon business principles. His friends insist that the same methods he has used in his own affairs will succeed in a larger way with the state's business. He has definite and good ideas about cutting down overhead in order to lower taxes, definite ideas about the state banking system and many constructive ideas about the agricultural schools. He's eager to put these ideas into definite working plans. It does seem that the state has been waiting for some one with just such proven ability and courage and Kershaw is fairly pulling on the bit waiting to "go"-and when he gets started and "going" we'll know we have had a real campaign-and every one in the state will be fully introduced to L. R. Kershaw.