Peoples State Bank (Coffeyville, KS)

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Peoples State of Coffeyville Closed by Walter Wilson. Could Not Realize on Paper Due to Depression. Coffeyville, Kan., Jan. 20. 1 -The People's State bank of this city closed its doors this morning. State Bank Commissioner Walter Wilson is in charge. Mr. Wilson issued a statement saying he had not delved deep enough into the bank's affairs to give an estimate of the probable loss. He said the inability of the bank management to realize on its paper account of the business depression caused him to close its doors as the bank's cash reserve was too low to permit of its continuing in business. He said a receiver would be named to take over the bank's affairs. In the last statement published the People's bank had deposits of $650,000 and published assets totaling $710,000. A. S. Newman is president of the bank and D. M. Cahill is cashier, both men of highest integrity. Local conditions in the Coffeyville oil field and trouble of the bank in handling of its securities was responsible for closing of the institution, according to reports from the state banking department this afternoon. Based on partial examinations, there was a belief that it might not be necessary to close the doors of the insti tution except temporarily. No steps have as yet been taken looking to appointment of a receiver, altho an examiner is in charge. Walter E. Wilson. state bank commissioner, is in Coffeyville today. W. W. Bowman, secretary of the Kansas Bankers' association, will go to Coffeyville tonight and will confer with Wilson and his assistants. Heavy loans on local securities which encountered big market slumps are declared to have caused the bank trouble. When markets broke borrowers were in some instances unable to clean up their paper. So far as reports sent to Topeka state, no charges of irregularities or defalcations by the Coffeyville banking officials have been made.

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COFFEYVILLE BANK CLOSES Kansas State Bank Commissioner in Charge of Institution. COFFEYVILLE, Kan, Jan. 20. The Peoples State bank of this city closed its doors this morning. State Bank Commissioner Walter Wilson is in charge. Mr. Wilson issued a statement saying he had not delved deep enough into the bank's affairs to give an estimate of the probable loss. He said the inability of the bank management to realize on its paper on account of business depression caused him to close its doors as the bank's cash reserve was too low to permit of its continuing in business. He said a receiver would be named to take over the bank's affairs. In the last statement published the bank had deposits of $650,000 and published assets totaling $710,000. Dr. W. D. Ownby, Osteopathic Physician, 310 Daniel Bldg. Osage 1344.-Advt.

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BANK SMASH IS SERIOUS Coffeyville Failure May Mean Loss to Many Patrons. Failure of the People's State bank of Coffeyville may prove one of the biggest bank smashes. in Kansas in several years, according to rumors today in the state house. Appointment of a receiver to take over affairs of the defunct bank may be made in a few days, it was reported. Several thousand patrons of the Coffeyville, bank are due for losses, according to statements. There is also a report that several large corporations which borrowed heavily from the bank's funds, may encounter embarrassment in meeting their obligations. No definite statement regarding detailed conditions of the Coffeyville institution has been made thru the state banking department. Walter E. Wilson state bank commissioner, spent the week-end in Topeka. He returned to Coffeyville today. The bank has been closed and is in charge of the state department.

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NOT UNDER GUARANTY LAW Coffeyville Bank Did Not Take Advantage of Kansas Act. The People's State Bank of Coffeyville is not under the state bank guaranty law, according to announcement from the state banking department. The bank was examined four times during the last year, but the failing conditions of the institution was not discovered until recently. No report has been given as to the exact losses of the Coffeyville institution. Examiners are now checking the books of the bank. A receiver will probably be appointed in a few days.

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THEY'RE IN MINES Coffeyville Men Were Bankers Just Week Ago. Today They're Facing ThirtyYear Stay in Leavenworth. Lansing, Kan., Jan. 26.-Bankers in good standing a week ago-prischers today with prospects of mining coal for thirty years. That was the transition of Allen S. Newman, president of the defunct People's State Bank of Coffeyville, and Rufus Newman, brother and vice president. The bank was closed last Thursday. Saturday a forged note of $1,500 showed up for collection. That was the beginning of a series of revelations that ended in confession of guilt by embezzlement and misappropriation of funds. Before the men pleaded guilty, they assigned all of their property in trust for their creditors.

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TO PREVENT - LOSS All State Banks May Be Forced Into Guarantee Law. Proposed Bill Is Result of Coffeyville Failure. As a result of the failure of the People's State bank of Coffeyville with a loss of approximately $300,000, a bill will be introduced in the legislature Friday or Monday requiring all state banks to come under the bank guarantee law. Representative Knapp of Coffeyville announced today he is drafting such a bill. The defunct bank was nct guaranteed. To Make Failure Impossible "I want to make it impossible for another financial catastrophe like this to occur," Knapp declared. "I believe if all state banks are under the law the whole banking fabric will be strengthened because bankers will watch each other for mutual protection. Of the eleven hundred state banks. 683 have voluntarily come under the guarantee law. The Knapp measure will also contain a section to strengthen the present laws requiring that banks maintain adequate cash reserves. A receiver for the Coffeyville bank probably will be appointed by Saturday. Walter E. Wilson, state bank commissioner, said today. The appointment was offered to Judge George W. Wark of the industrial court. whose term expires soon. but he declined, Wilson said.

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ORGAN IS BANK RECEIVER To Take Charge of Coffeyville Bank Affairs February 1. Frank Organ, for the last three years head of the blue sky department and for six years assistant state auditor, was today appointed by Walter E. Wilson, state bank commissioner, as receiver for the People's State bank of Coffeyville, which failed about ten days ago. Dallas Knapp, of Coffeyville, representative from Montgomery county, was appointed as attorney for the receiver. Knapp will resign his present position February 1 to take charge of the affairs of the bank.

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CLAIMS PREFERRED PLACE

Coffeyville Man Declares Defunct Bank Did Not Own Forfeit Bond. Coffeyville, Kan., March 10.-The question whether a sum of money place in a bank as a forfeit in case of failure to carry out a contract should be considered the bank's property, has been raised in the suit brought by C. H. Lamb.against the receiver of the defunct People's State bank of this city. Lamb recites in his peition that the money was placed in the bank, to be paid to him in the event an oil well contractor failed to comply with certain drilling and other obligations in an oil deal. He demands that the full $500 be delivered to him.

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TAXES LOST WITH BANK? Coffeyville Failure Involves $52,000 Belonging to Taxpayers. Taxes amounting to $52,000 were in the People's State bank of Coffeyville when that institution closed its doors. Property owners who had paid the money to an unauthorized agency today sought relief in the supreme court. Mandamus proceedings to compel the Montgomery county treasurer to issue receipts for the money were argued before the court this afternoon. Last fall the Weaver Realty company of Coffeyville collected large sums in taxes from persons in southern Montgomery county. The money was deposited to the credit of the county treasurer, altho neither the collections nor making of deposits had been authorized. Then the real estate agency sent to the treasurer deposit tickets for $52,000. When the county treasurer attempted to withdraw the money from the Coffeyville bank his three drafts were protested. At the same time the bank notified the state department that it was insolvent and turned the institution over to the bank commissioner. Two officers of the defunct bank are now serving terms in the state penitentiary. But the property owners who paid their taxes to the Weaver Realty company have been unable to secure tax receipts. Mandamus proceedings to compel issuance of the receipts were argued this afternoon. Unless the writ is issued the taxpayers must make a second payment.

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BELL IS NAMED Great Bend Man Appointed Special Deputy Bank Commissioner. Frank H. Foster, state bank commissioner, today announced the appointment of Arch L. Bell of Great Bend, as special deputy bank commissioner. He will be in charge of the blue sky department in the state bank commissioner's office. Bell succeeds Frank Organ, who was recently appointed receiver for the Peoples State bank of Coffeyville. The appointment of Bell is effective immediately.

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FRANK ORGAN RESIGNS Former Topekan Quits as Receiver Coffeyville Bank. Frank Organ, receiver for the People's State bank of Coffeyville, today announced his resignation. He was appointed by Walter E. Wilson during his term as state bank examiner. Organ was head of the state blue sky department for several years. He was formerly assistant state auditor. No action has been taken regarding appointment of Organ's successor. F. H. Foster, state bank commissioner, expects to go to Coffeyville Saturday to arrange for selection of a new receiver.

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SUPREME COURT OPINIONS

By Johnston, C. J. Sallie Keeton, appellee, vs. Grand Lodge Ancient Order of United Workmen, appel- lant. Appeal from Wyandotte county. Af- firmed.

C. H. Lamb, appellee, vs. Martin Ladd, receiver for People's State Bank of Coffey- ville, appellant. Appeal from Montgomery county. Affirmed. Charles Secrest, appellee, vs. Martin Ladd, receiver for People's State Bank of Coffeyville, appellant. Appeal from Mont- gomery county. Modified. State of Kansas, appellee, vs. Fred Imm and Will P. Imm, appellants. Appeal from Greenwood county. Affirmed.

By Burch, J. C. F. Herman, appellant, vs. S. J. Saw- yer, appellee. Appeal from Lane county Reversal and remanded for further pro- ceedings.

C. B. Hart, appellant, vs. C. C. Corcoran, appellee. Appeal from Reno county. Af- firmed. The Wichita Produce Co., et al., appellees, vs. The City of Wichita, et al., appellants. Appeal from Sedgwick county. Reversed and remanded with directions to deny the injunction. The Stock Yards State Bank, appellee, vs. Charles E. Frank, appellant. Appeal from Sedgwick county. Affirmed.

By Mason, J. I. H. Jenness, appellee, vs. H. C. Jenness, et al., appellants. Appeal from Crawford county. Affirmed. G./H. Bernard, appellee, vs. L. F. David- son, et al., appellants. Appeal from Trego county. Affirmed. Franklin Township, Jackson County. Kan., et al., etc., appellees, vs. Tessa E. Abel, Treas, of Jackson county, etc., ap- pellant. Appeal from Jackson county. Af- firmed. Martin Sweeney, appellant, vs. Ellen Finney, appellee. Appeal from Pottawat- omie county. Affirmed.

By Porter, J. State of Kansas, appellee, vs. Mayme White, appellant. Appeal from Douglas county. Affirmed. Sheldon Petroleum Co., appellee, vs. Em- pire Gas & Fuel Co., et al., appellees, Abe Markus, appellant. Appeal from Butler