18124. Union State Bank (Muskogee, OK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 3, 1913
Location
Muskogee, Oklahoma (35.748, -95.370)

Metadata

Model
gpt-5-mini
Short Digest
8af3d996

Response Measures

None

Description

The Union State Bank in Muskogee was closed by the state banking department and its deposits taken over by the American National Bank. Closure is due to inability to eliminate bad paper; articles also link losses to the county treasurer's embezzlement scandal. No contemporaneous run is reported.

Events (3)
1. October 3, 1913 Other
Newspaper Excerpt
The American National purchased notes amounting to $80,000 and received $20,000 in cash ... balance of the assets of the Union State Bank will stand as a guarantee for the collection of the notes purchased.
Source
newspapers
2. October 3, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by state banking department due to inability of officers to eliminate bad paper; large unsecured deposits and possible connection to county treasurer embezzlement losses.
Newspaper Excerpt
A deal has been completed in which the American National bank of Muskogee will take over the deposits of the Union State bank which was closed by the state banking department recently.
Source
newspapers
3. November 2, 1913 Other
Newspaper Excerpt
The county has already lost, however, $17,000 which amount was up as deposits in the Union State bank of this city ... (story links bank losses to county treasurer embezzlement).
Source
newspapers

Newspaper Articles (2)
1. October 3, 1913 The Liberal Democrat Liberal, KS
Article from The Liberal Democrat, October 3, 1913

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Article Text

OKLAHOMA CAPITAL NEWS ASSETS OF DEFUNCT MUSKOGEE INSTITUTION AMPLE FOR GUARANTEE FUND. STATE WILL NOT BE THE LOSSER American National of Muskogee Arranges to Take Over the Deposits and Wind Up the Affairs of Union State Bank A deal has been completed in which the American National bank of Muskogee will take over the deposits of the Union State bank which was closed by the state banking department recently. W. R. Samuels, state bank examiner for the east side, stated that the stockholders of the defunct bank would probably lose their investment but that the deposits for which the guaranty fund was responsible would be paid if the assets were properly handled under the agreed arrangement. Unsecured deposits for which the banking board was responsible amounted to approximately $100,000. These deposits will be taken over by the American National bank of Muskogee. The American National purchased notes amounting to $80,000 and received $20,000 in cash. In addition thereto the balance of the assets of the Union State Bank will stand as a guarantee for the collection of the notes purchased. According to Examiner Samuels, the banking board did not put up either cash or notes and will not lose. George W. Allison, president of the Union State bank will become affiliated with the American National bank as vice-president and will devote his attention to the collection of the notes turned over to the American National. The assets purchased by the Americah National were passed on by G. M. Fink, president of the Commercial National bank, J. H. Ogden, president of the First National bank and the clearing house examiner. Inability of its officers to eliminate bad paper is the cause assigned by bank examiners for the closing of the Union bank. The total deposits amounted to $226,000 in round numbers, of which $126,000 was public money. These deposits were as follows: County treasurer, $64,000, secured by $46,000 in stocks and bonds and $10,000 in security bonds; school land department, $29,000, secured by $30,000 in building bonds; state treasurer, $17,000, secured by $20,000 in public building bonds; city treasurer, $15,000, secured by security bonds for the same amount, and Agency township treasurer, $1,600with no security.

2. November 2, 1913 Tulsa Daily World Tulsa, OK
Article from Tulsa Daily World, November 2, 1913

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Article Text

COUNTY TREASURER ALREADY CHECKED UP OVER $50,000 SHORT AN EMBEZZLEMENT CHARGE State Auditors Have Not Nearly Com. pleted an Examination of County's Books. MUSKOGEE Okla., Nov. 1.-(Spe. cial.)-Fifty-five thousand dollars, the amount set forth in the warrant upon which W. H. Wainwright, removed only a few hours before as county treasurer, was arrested yesterday afternoon charged with embezzlement. may be merely a "acratch upon the surface," It was said last night. In addition to the $55,000. money drawn upon two checks for $5,000 each has not been accounted for and yesterday afternoon citizens began presenting tax receipts purported to have been signed by W. H. Wainwright for the payment of taxes upon property which has been advertised for sale because the records show taxes upon the land have not been paid While many of the larger banks have made reports to the auditors there still remain to report several of the smaller Institutions. These reports may swell the alleged shortage. If the sum total of these amounts however, does not exceed $75,000. the amount of Mr. Wainwright's bond, the county will not be loser on these accounts The county has already lost, however, $17,000 which amount was up as deposits in the Union State bank of this city and the Bank of Wainwright in which Mr. Wainwright was a heavy stockholder. The state guarantee fund does not protect public monies, it being the duty of the countv treasurer to require bonds and surieties from the banks to protect deposits of all county monies in their vaults It is said that in the Instance of these two banks. Mr. Wainwright did not exact this guarantee Mr. Wainwright's bond specially exempts liability for money lost in bank failures. Where the scandal that involves the county treasurer's office will end those in authority last night did not dare predict. It is thought that at least one other and perhaps several II ore might become involved. Sever. al of th banks of Muskogee and surrounding country are not coming out of the muddle with clean skirts, A either, it was declared last night. very peculiar transaction is said to in. volve one of the leading banks of Muskogee Mr. Wainwright apparently. so the investors believe, presented a check made out contrary to all ethics for $5,000 upon this bank and It was honored The check, it is said, was not written upon a county treasurer's check but upon an ordinary blank bank check It was made payable to "cash" and was signed by Mr. Wainwright, All checks drawn on the county funds ordnarily state to whom the money was paid and for what purpose Another check for $5,000 made out to W. H. Wainwright and paid by another bank, it is said, bears only the endorsement "paid" made by a rubber stamp No endorsement upon the face or back of the check Indicates to whom the money was paid. The examination by the auditors of Mr. Wainwright's books is not nearly completed in fact it has been little more than begun. It will be fully three weeks It is believed, before it is finished and for that reason Mr. Wainwright's preliminary hearing was set for December 1. Auditors will immediately be set to work checking the long county land list. If it be true that money has been paid in for taxes, receipts given and no record made on the county books the treasurer's office is in pitiful shape. If this practice has been in vogue sums accounted for may run into enormous figures The shortage has been covered for many months. it is alleged. by clever manipulation The basic principle was simple. The county's books showed the proper amount of money in the banks when in reality the money was not there. Mr. Wainwright it Is said, managed to have It reported. He worked this. it is charged. through a manipulation and exchange of paper using the defunct Bank of Wainwright 8.8 a clearing house The auditors are said to have found one case in which a $5,000 check drawn on the Bank of Wainwright was deposited in a local bank a certificate of deposit being issued to Mr. Wainwright for the check. It was not until three weeks later. it is said. that the check came back to the local Institution marked "no funds. Dur Ing that time, however, and during the its report. which have made time bank the might check on easily was decarried by the bank as money vosit.