18134. Columbia Bank (Oklahoma City, OK)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 28, 1909
Location
Oklahoma City, Oklahoma (35.468, -97.516)

Metadata

Model
gpt-5-mini
Short Digest
819a4682

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: State banking board paid depositors from guaranty fund and continued payments despite federal restraining order; legal conflict with federal court over receivership.

Description

Columbia Bank suspended business in late September 1909; depositors withdrew funds from the suspended bank while the State Banking Board (and Commissioner Young) paid depositors from the guaranty fund despite a federal restraining order. The board then turned the bank back to its officers and it reopened in early October 1909. The run/withdrawals are described repeatedly; cause appears to be bank-specific failure/embarrassment rather than a rumor or isolated misinformation.

Events (4)
1. September 28, 1909 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank is described as having failed and suspended with large deposits; insolvency/embarrassment of the institution led to suspension.
Newspaper Excerpt
The Columbia Bank which suspended business on Tuesday with $3,000,000 in deposits
Source
newspapers
2. September 30, 1909 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals by depositors from the suspended/failed bank after suspension; depositors drew funds from state banking board payments.
Measures
State Banking Board/Examiner Young paid depositors from state guaranty fund; opened bank and paid out large sums; later proposed transfer back to officers.
Newspaper Excerpt
Steady streams of depositors of the suspended Columbia bank filed past the cashiers' windows this afternoon, drawing out accounts.
Source
newspapers
3. October 1, 1909 Reopening
Newspaper Excerpt
Conditions were normal when the Columbia bank opened its doors for business this morning ... the bank would be returned to its own officers possibly next Monday. The Columbia bank ... will be turned over to its officers by the state banking board Monday.
Source
newspapers
4. October 4, 1909 Other
Newspaper Excerpt
Notwithstanding the restraining order issued by the federal court at Guthrie, Bank Commissioner Young, under direction of Governor C. N. Haskell, continued payments to the depositors of the failed Columbia Bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the Bank Commissioner is in contempt.
Source
newspapers

Newspaper Articles (13)
1. September 30, 1909 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, September 30, 1909

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NEW LAW WORKING DEPOSITORS RECEIVE THEIR MONEY AFTER BANK FAILURE. Confidence Was Perfect and No I order of Any Kind is V Evidenced. OKLA MA CITY, Okla., Sept. 30. The entire state of Oklahoma today is watching the first practical working of the bank guarantee, when 400 depositors of the Columbia bank were paid the amount of their deposits from the funds of the state banking board. The depositors were confident the board would make good their deposits that there wasn't a sign of disorder. The condition of the Columbia bank was not made public. Steady streams of depositors of the suspended Columbia bank filed past the cashiers' windows this afternoon, drawing out accounts. Examiner Young in charge, paid out $150,000 from the state bank board funds this morning, and announced he still had plenty of money on hand.

2. October 1, 1909 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, October 1, 1909

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SUSPENDED BANK MAY RESUME BUSINESS State Board Proposes to Turn Iustitution Back to Its Officers on Monday. Oklahoma City, Okla., Sept. 30.The Columbia Bank which suspended business on Tuesday with $3,000,000 in deposits, will be turned over to its officers by the state banking board Monday. At four o'clock today no more depositors were in line to withdraw their funds. The total amount paid out since the suspension is less than $200,000.

3. October 1, 1909 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, October 1, 1909

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Special to the Daily Leader Oklahoma City, Okla Oct. the Conditions were normal when the Columbia bank opened its doors for business this morning and it was the general feeling that the big institution, thanks to the Oklahoma guarany deposit law, had been safely guided over its financial difficulties and that the bank would be returned to its own officers possibly next Monlay, Governor Haskell gave out the following statement, expressive of his satisfaction over the present status of the involved banks affairs: "The Oklahoma banking law is complete success, even against the persistent opposition of a strong ele ment of other classes of bankers We adjust the affairs of an embar rassed state bank with perfect ease in a very few days, and with ne public clamor whatever. Everybody is in good humor and conditions are normal. Depositors money was not tied up a single hour. Other state banks are quiet and gaining in de posits. "We are proud of the state of Ok'ahoma. The frantic criticisms of the opposition do not worry us-the will know better in time "The national plan of handling an embarrassed bank is barharism and embarrasses the whole community The Oklahoma plan does not occasion disturbance nor embarrass other business. The new bank. in a few days, will be better and stronger than ever. What Woods Thinks. Yesterday afternoon Governor Has kell received the following telegram from Kansas City, and it pleased the governor and his colleagues very much: "Kansas City, Mo. Sept. 30, 1909 "Governor €. N. Haskell, Oklaho xa City, Okla. Just home. Glac to see you handling situation sc well. You are all right Principle Oi guaranteeing deposits is sound. No jecasion in the world for any alarm, but to the contrary, this melee should and will, under your management, terminate in much good to you per sonally and to the law You and the law have our confidence and best wishes. Please command us If need ad. Don't look anywhere else for any assistance needed. We are able and willing to furnish all the money needed DR. W S WOODS Dr. Woods is well known to the business men of the Southwest as a multimillionaire, a conservative bank er, and the head of the largest bank ing institution in Kansas City, Many other similar tejegrams were received during the day, an all were an swered with thanks and the assurance that assistance is not needed. as there is no withdrawal of funds from any other banks. and only a few of the total number of depositors in the Columbia have asked for can cellation of their accounts. State Treasurer Menefee, who was supervising operations in the bank complained naively that business was "net 38 brisk as expected. We hope

4. October 1, 1909 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, October 1, 1909

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Oklahoma Bank to Resume. Oklahoma City, Okla., Oct. 1.-The Columbia bank, which suspended on Tuesday with $3,000,000 in deposits, will be turned over to its officers by state banking board Monday.

5. October 2, 1909 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, October 2, 1909

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BANK GUARANTEE LAW SEVERELY TESTED Oklahoma City, Oct. 1.-The bank guarantee law was given a severe test when thousands of dollars were paid to depositors of the suspended Columbia bank from the funds of the state banking board. Financiers today are declaring the law has proved its worth. Today the directors of the institution submitted a proposition looking forward to reopening the bank.

6. October 5, 1909 New-York Tribune New York, NY
Article from New-York Tribune, October 5, 1909

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DISOBEY FEDERAL ORDER. Governor Haskell Instructs Bank Commissioner to Pay Depositors. Oklahoma City, Okla., Oct. 4.-Notwithstanding the restraining order issued by the federal court at Guthrie, State Bank Commissioner Young, under direction of Governor C. N. Haskell, continued payments to the depositors of the failed Columbia Bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the Bank Commissioner is in contempt. Commissioner Young and the other members of the State Banking Board declared to-night that the restraining order does not apply to them, because, they assert, it enjoins them from preferring one creditor above another, which they deny having done. President Norton of the bank and his associates have offered $800,000 to the State Banking Board for a return of the bank to their hands, and the Banking Board members said to-night that the bank probably would be transferred to its original officers to-morrow. Guthrie, Okla., Oct. 4.-C. B. Ames, representing the National Life Insurance Company of Chicago, which has a $25,000 claim against the failed Columbia Bank, of Oklahoma City, filed two motions with the Federal Court to-day, one asking for a receiver for the bank and the other asking for a citation for contempt against Bank Commissioner Young. Judge Cotteral announced that he would not knowingly permit any man to ignore the orders of the court and go unpunished, and therefore invited the submission of proofs. Action on the first motion was postponed until to-morrow.

7. October 5, 1909 Daily Press Newport News, VA
Article from Daily Press, October 5, 1909

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NEWPORT NEWS. VA., TUESDAY, OCTOBER 5. 1909. OKLAHOMA COMMISSIONER ROOSEVELT'S POLICIES STILL PAYING DEPOSITORS OKLYN GRAND JURY Federal Court's Restraining Order Ignored, According to Governor WILL BE CONTINUED TRAIL OF BOOKIES Haskell's Instructions. (By Associated Press). OKLAHOMA CITY, OKLA., Oct. 4. President Taft Intimates More Returned Against Clubs, Notwithstanding the restraining order issued by the federal court at Trouble is in Store For "MalefacGathrie, State Bank Commissioner Officials, Detectives and Young, under direction of Governor U. N. Haskell, continued payment to tors of Great Wealth". Bookmakers. the depsositors of the failed Columbia Bank through the day. Judge Cotterell will come to Oklahoma City tomorrow and hold court TWENTY-FiVE HOURS ON TRAIN to ascertain if the bank commissioner PROMINENT MEN INVOLVED is in contempt. President Norton, of the bank and his associates have offered $800,000 to During Longest Jump of His Trip the Vandersbilt Owns Controlling the state banking board for a return of the bank to their hands and the Executive Enjoys Himself Viewing crest in Coney Island Jockey Club, banking board members said tonight Snowclad Mountain Peak and Playthat the bank probably will be transof Two Organizations Charged ferred to its original officers tomoring Bridge-Speaks from Car-end at Conspiracy to Allow Bettingrow. Sacramento. Attorneys for the state today offerAmong Turf Followers. ed Judge Cotterell certified checks for the amounts claimed by the petioners for a receiver, but asked tifat SACRAMENTO, CAL, Oct. 4-After (By Associated Press). the checks remain with the court unmaking one of the longest jumps of YORK, Oct. 4.-After two til it can be shown that the bank has his trip and traveling for twenty-five of agitation against rack track hours through Oregon and the northoffsets against these deposits. in this state, marked by ern half of California, President Taft Commissioner Young and the other assage of the drastic anti-betting arrived here tonight at 7:10 o'clock. members of the state banking board Tomorrow morning he will proceed to enerally refered to as the Hartdeclared tonight that the restraining Oakland and San Francisco. The law, it remained for the King order does not apply to them because President was entertained at dinner. Brooklyn, grand jury to write they assert it enjoins them from prewas taken for an automobile ride chapter in the crusade today ferring one creditor above another, through the city and made an address there were handed up in court which they deny doing or having done in the State capitol grounds. ments against the two big King's in the past. The President selected for the princinal feature of his speech the con race tracks. three police offi-

8. October 5, 1909 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, October 5, 1909

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OKLAHOMA OFFICIAL MAY BE IN CONTEMPT Bank Commissioner Continues Paying Depositors in Defiance of Federal Court Order. Oklahoma City, Okla. Oct. 4.-Notwithstanding the restraining order issued by the federal court at Guthrie, Bank Commissioner Young. under direction of Governor C. N. Haskell continued payments to the depositors of the failed Columbia Bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the bank commissioner is in contempt. President Norton of the bank and his associates have offered $800,000 to the state banking board for a return of the bank to their hands and the banking board members said tonight that the bank probably will be transferred to its original offices tomorrow, Attorneys for the state today offered Judge Cotteral certified checks for the amounts claimed by the petitioners for a receiver, but asked that the checks remain with the court until it can be shown that the bank has offsets against these deposits. Commissioner Young and the other members of the state banking board declared tonight that the restrain in order does not apply to them because they assert it enjoins them from preferring one creditor above another. which they deny doing or having done in the past.

9. October 5, 1909 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, October 5, 1909

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STATE BANK OFFICIAL DISREGARDS COURT Oklahoma City, Okla. Oct. 4.-Notwithstanding the restraining order issued by the federal court at Gutbrie Bank Commissioner, Young, under JIrection of Governor C. N. Haskell, : continued payments to the depositors of the failed Columbia Bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the bank commissioner in in contempt. President Norton of the bank, and his associates have ogered $800,000 to i the state banking board for a return of the bank to their hands and the banking board members said tonight ) that the bank probably would be 1 transferred to its original officers toI morrow. Attorneys for the state today offered Judge Cotteral certified checks for the amounts claimed by the petitioners for a receiver but asked that the checks remain with the court until it can be shown that the bank has offsets against these deposits. Commissioner Young and the other members of the State banking board declared tonight that the restraining order does not apply to them because. they assert, it enjoins them from preferring one creditor above another, which they deny doing or having done in the past. :

10. October 5, 1909 Wausau Pilot Wausau, WI
Article from Wausau Pilot, October 5, 1909

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GUARANTEE OF BANK DEPOSITS. EDITOR PILOT: The following is taken from Saturday's Record-Herald of this city There was but $300,000 in the bank guaranty fund in Oklahoma, when the Columbia bank failed at Oklahoma City with $3,000,000 of deposits, and the state can pay but ten per cent. without making an assessment upon all the other banks in the state. How would the people here like such a condition, as the business interests must pay this shortage, and the consumer pays it eventually. Oklahoma too had the most radical law of this kind, and its failure now will show the absolute fallacy and weakness of this plan to protect wild cat speculators by making honest bankers pay for their delinquencies.-Record-Herald. The above barefaced misrepresentations would not be worth an answer except to show the sample of the lies the Record-Herald is continuously dishing up to its readers, through a combination of partisanship, egotism and ignorance. The Record-Herald knows that while the guarantee fund is only $300,000, there are items of cash cn hand and in all probability a large amount of first class negotiable paper in the bank in question. Also that the stockholders are held for double the amount of their stock and that the press reports say the bank will probably resume business. According to the Record-Herald's way of figuring, none of our Wausau banks could pay over 15 or 20 per cent of their liabilities, as it would only figure the actual cash on hand, as their assets. Sensible citizens all over the country are watching the test which the guarantee of bank deposits is going through, with great interest. If it stands this admittedly severe test, swarms of honest opponents will go over to its support and if it fails, swarms of honest friends will admit its failure. The course of the Record-Herald is similar to the course pursued by the partisan republican press during the panic of 1893, when every bank failure was heralded to the country, in large black type, as a result of democratic "free trade" and further calamities predicted. How different the course of the democratic press led by W.J. Bryan during the last panic. Withmany bank failures and wholesale failures only prevented by the illegal issue of scrip, the democratic press, mindful of the welfare of the country, urged confidence in our banks and did all they could to stop the panic. Just at the worst, Wm. J. Bryan visited every part of the country and the great weight of his influence and eloquence was given to prevent a further spread of the panic. His confidence in the honesty of our banks as a whole, did much to restore confidence. Less than two years have passed since the time of which we speak and the Record-Herald has hardly missed a day without a slur for Mr. Bryan. If it has no sense of fairness, some of the real owners of the paper should gag it, at least for a few months beFAIR PLAY. tween elections.

11. October 6, 1909 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 6, 1909

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PAYMENTS MADE AGAINST ORDER Oklahoma City, October 5.-Notwithstanding the restraining order issued by the federal court at Guthrie, Bank Commissioner Young, under direction of Gov. C. N. Haskell, continued payments to the depositors of the failed Columbia bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the bank commissioner is in contempt. President Norton of the bank and his associates have offered $800,000 to the state banking board for a return of the bank to their hands and the banking board members said tonight that the bank probably would be transferred to its original officers tomorrow. Attorneys for the state today offered Judge Cotteral certified checks for the amounts claimed by the petitioners for a receiver but asked that the checks remain with the court until it can be shown that the bank has offsets against these deposits. Commissioner Young and the other members of the state banking board declared tonight that the restraining order does not apply to them because, they assert, it enjoins them from paying one creditor above another which they deny doing or having done in the past.

12. October 14, 1909 The Mena Weekly Star Mena, AR
Article from The Mena Weekly Star, October 14, 1909

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IGNORED A FEDERAL JUDGE'S INJUNCTION Oklahoma State Banking Board May be in Contempt in Failed Bank Case. Oklahoma City, Ok., Oct. 6. - Notwithstanding the restraining order issued by Judge Catteral of the Federal court at Guthrie, Bank Commissioner Young, under direction of Gov. C. N. Haskell, opened the Columbia bank and continued payments the same as last week. Judge Cotteral will come to Oklahoma City to-day and hold court in the Hotel Threadgil! to ascertain if the bank commissioner is in contempt. President Norton, of the bank, and his associates have offered $800,000 to the state banking board for a return of the bank to their hands. Commissioner Young and the other members of the state banking board take the position that the restraining order issued by Juge Cotteral last Saturday does not apply to them be. cause, they assert, it enjoins them from preforring one creditor above another, which they deny doing or having done in the past. Attorneys for the state offered Judge Cotteral certified checks for the ar ounts claimed by the petitioners for a receiver, but asked that the checks remain with the court until it can be shown that the bank has offsets against these deposits.

13. December 30, 1909 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, December 30, 1909

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# Guaranty Deposit Games. Buffalo News: Guaranty deposit is running its course in Okalahoma in the way predicted by those who are fairly good judges of human nature and have also acquaintance with proper methods of running banks. A few more results like that of the Columbia Bank of Oklahoma City is likely to break up the whole business in that state. The president of the bank ran a chain of banks, so that when the Columbia bank failed depositors in one of the other banks withdrew about half the money and that bank fafled. Of the four other banks, one has already suspended and no one knows how long the others will keep afloat. Under the laws of the state the governor is pretty nearly the whole government. When the case of the failed banker was taken to the grand jury revelations came out so damaging to the whole scheme that the governor interposed and took the case away from the grand jury-an impossible proceeding in this state or any other that is genuinely civilized. The governor held that the revelations before the grand jury looked to him like an attack on the law and on that account he stopped the proceedings. The Columbia Bank failed in September but no statement of iis affairs was given out until a few days ago. The bank had been running but a comparatively short time and yet its unliquidated liabilities exceed million, so that guaranty of instant payment to depositors on demand was on its face an absurdity since the state invests about 80 per cent of whatever money is held as security for depositors and it is impossible to handle any such large sum of money promptly. The state treasurer had a large block of the bank stock. He had placed $180,000 of the state money in it beside $75,000 as treasurer of the state banking board. He was an individual bo-rower to the extent of $20,000 of which they found $10,000 unpaid when the bank closed. They found, further, that heavy losses were made on doubtful security and that the bank had a vast amount of other bank paper on hand Every business man familiar with banking habits will understand how this bank was dealt with and find it equally clear as to the general conditions of banking in the state. It must be absolutely bad. Every evil predicted about the system at the time of its adoption has come to pass. The failures of banks have been more numerous even than were predicted. In that respect the prophets have been outclassd by events. Men have drummed up business on the ground that no matter what happened the depositor could not lose. They have loaned money in the most reckless fashion on the same ground and the whole system has been conducted as if run by a set of irresponsible children while the temptation to public officials to profit on their own account has been irresistible in many cases.