Salina State Bank (Salina, KS)

Episode Information

Episode UID
1907359291434
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
190735929 hash
Start Date
June 1, 1919*
Location
Salina, Kansas (38.840, -97.611)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
efab19196c9d7533

Response Measures

None

Description

Failure occurred several years before 1923 (articles reference receiver and dividend after ~4.5 years).

Events (3)

1. June 1, 1919* Receivership
Newspaper Excerpt
Col. Fred Fitzpatrick, receiver for the Salina bank, may be called to the witness stand late this afternoon.
Source
newspapers
2. June 1, 1919* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had failed and was in receivership; affairs being closed by receiver (insolvency indicated).
Newspaper Excerpt
Col. Fred Fitzpatrick, receiver for the Salina bank, may be called to the witness stand... the defunct Kansas State bank.
Source
newspapers
3. December 27, 1923 Other
Newspaper Excerpt
The depositors of the Salina bank thus are receiving in the 81 per cent dividend approximately the entire amount of the deposits...
Source
newspapers

Newspaper Articles (3)

Article from The Topeka State Journal, November 23, 1920

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Article Text

ORDERLY DAY OUSTER CASE Nothing Damaging Erought Out Against Wilson Today. Lengthy correspondence in the Salina bank case was introduced today in support of the state's ouster suit against Walter E. Wilson, state bank commissioner. The letters dealt almost entirely with work of examiners, the bank commissioner and persons in touch with the bank's affairs. They generally indicated much activity on the part of Commissioner Wilson and his assistants in collecting on the bank's securities and in closing up the affairs of the defunct Kansas State bank. None of the testimony before J. M. Challis, commissioner for the supreme court, was regarded as especially damaging to Wilson. The entire morning was spent in the reading of letters and copies of letters. It was a quiet, orderly half-day session. Attorneys from the attorney general's office seemed satisfied with their progress. Attorneys for Wilson made no protest against admittance of the testimony. Failure of Attorney General Hopkins to produce damaging testimony against Wilson when Frank Sponable testified at the opening of the hearing was regarded by attendants as the most important feature of the case to date. Sponable was expected to testify that coercion was used in the sale of Bank Holding Corporation stock and that promises of use of confidential state information were made to prospective investors. There was nothing in Sponable's testimony to support such charges. Col. Fred Fitzpatrick, receiver for the Salina bank, may be called to the witness stand late this afternoon.


Article from The Topeka State Journal, December 11, 1922

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Article Text

FIRST FILED, FIRST PAID Attorney General Makes Ruling on Guaranty Fund Settlements. Depositors in defunct Kansas state banks protected by the state bank guaranty law, will 1. paid in accordance with the date of certificates issuca by the bank commissioner. That is the position taken by the attorney general's department in ruling on the issuance of certificates against the guaranty fund. Date of a bank failure, the state department holds, does not control the priority claim of a depositor. If the affairs of a bank are not closed promptly, depositors in the bank must wait until the receivership is concluded and are not protected by prior claims because of an early failure. The question arose in the dispute over rights of Kansas state bank depositors of Salina, Affairs of the bank have not been disposed of and no certificates against the guaranty fund have been issued to depositors. On the other hand creditors of the Homewood and LeLoup banks which subsequently failed, are being paid because their receiverships are terminated.


Article from The Bushton News, December 27, 1923

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Article Text

vestments, depositors in the guaranty banks receive interest on their deposits from the day the bank failed," State Bank Commissioner C. J. Peterson said. "The depositors of the Salina bank thus are receiving in the 81 per cent dividend approximately the entire amount of the deposits from the guaranty fund, plus the 19 per cent they already had received direct from the assets of the bank. That is, the interest that has accrued in the four and a half years since the bank failed added about 20 per cent to their original deposits." Commissioner Peterson said no special assessment against the 900 banks belonging to the guaranty fund membership will be required because of the record disbursements from the fund to meet the obligations at the Salina bank. The annual guaranty fund assessment falls due next month. It is one-twentieth of one per cent of the total deposits in each bank. This will add approximately $300,000 to the guaranty fund which was reduced to approximately $500,000 by the Salina payment, according to Commissioner Peterson. "The guaranty fund has proven to be a wonderful asset to banking and business interests generally during the last year," said Mr. Peterson. "In additions to securing depositors against loss it serves as a security for the state at large, for all business—in this state especially agriculture—is closely related to the banking business. There is no occasion for such a thing as a run on a bank nor a financial depression in a community, or in the state, as long as the guaranty fund operates."