Shawnee National Bank (Shawnee, OK)

Article Text

SIX BANKS CLOSE IN STATE OF OKLAHOMA

OKLAHOMA CITY, Nov. 14-(/P) of Oklahoma banks, the largest the Shawnee National, with combined deposits of over $3,000,000, was announced today by the state banking department State Bank Commissioner W. Barnett said affiliated banks were closed following inability of H. T. Douglas, Shawnee, their owner, to collateralize approximately 000 in loans as demanded by eastern creditors.

DIVIDEND DECLARED

ATLANTA, Nov. (AP) The board of of the Coca Cola Public Square Company here today declared the ATTORNEY regular quarterly dividend of Stoeckel Advocate Bldg and announced plans to continue advertising activities for 1933 at the Room Belleville Bank highest level in the history of the Trust Bldg company. The directors said the EMPLOYMENT 1933 advertising appropriation had ben materially over the Help 1932 expenditure, which the largest in the concern's history. experience. Apply Main

Article Text

GROUP OF BANKS IN OKLAHOMA CLOSES

OKLAHOMA CITY (Okla.) Nov. six Oklahoma banks, the largest the Shawnee National, with combined deposits announced toover the State Banking Department.

Article Text

TECUMSEH BANK IS LATEST TO CLOSE

SHAWNEE, Nov. 15. Tecumsch National Bank, the only bank in Tecumseh, five miles of here, closed its doors today The action was taken by the board of directors to allow reorganization, Cashier W. W. Gilbert said. A run caused by the closing of the Shawnee National Bank here and the failure of five other area was blamed yesterday difficulties.

Article Text

New Bank Suspensions

Nebraska: George W. Woods, Bank Commissioner, has announced: Bank of Raymond, Raymond, closed.

South Dakota: E. A. Ruden, Supt. of Banks, has announced: First State Bank, Bowdle, closed.

National banks suspending Nov. 18, as reported to the Comptroller of the Currency and made public Nov. 18, were:

National banks suspending Nov. 14, as reported to the Comptroller of the Currency and made public Nov. 14 were:

Shawnee National Bank, Shawnee, Okla.; resources, $2,359,264; First National Bank of Allen, Okla., resources $119,771; First National Bank of McLoud, Okla.; resources, $130,272; Park National Bank of Sulphur, Okla.; resources, $213,651.

Diamond National Bank of Pittsburgh, Pa.; resources, $15,849,950.

United States National Bank and Trust Co. of Kenosha, Wis.; resources, $1,812,553.

National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were:

Nov. 21: Ayers National Bank, Jacksonville, Ill., resources, $8,285,998.

Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.

Article Text

Failed Bank Head's Sons Are Arrested On Federal Charge

Donald, Assistant Cashier, of Embezzlement of $2,550: Tom, Not Official of Institution, Held for Benefitting Through of $8,400: Another Officer Sought: to be Arraigned Today

Donald and Tom Douglas, sons of Douglas, pioneer Oklahoma banker and president of the defunct Shawnee National bank, late Monday night were arrested on federal warrants charging of funds of the bank. They were arrested by W. Smith, deputy United States marshall, from Oklahoma City and lodged in the city jail where they were held incommunicado. Smith said they would be taken to Oklahoma City Tuesday morning for arraignment before George J. Eacock, United States commissioner. Donald assistant cashier of the bank, was Douglas, charged specifically with embezzlement of $2,550 of bank funds. Tom Douglas, although not an official of bank, was charged benefitting through the misappropriation of $8,400 bank funds. drawn by Herbert K Hyde, United States district attorney City. Further details the cases against were not learned in Shawnee Monday night

Official the brothers signed by special of agent, who has been working the weeks. has been aided his by George Embry of the Shawnee National receiver bank. Another official of the bank, the mother institution the Douglas chain of four and two state banks, also was named the combut not taken into custody plaint here Monday night. arrested their The homes late night by Smith and Sam of the department Both the young about 30 years age, and are ried and live Donald sides 2129 North Beard street and Tom, charged in the complaint Henry Thomas Douglas, "alias Tom Douglas," 102 West Midland street Douglas controlled banks closed November 14, last year more than in deposits. The elder Douglas, banker since territorial days, was president four of the banks, the Shawnee National, Park National, Sulphur: and the CanaFirst National, dian Valley, Asher His brother, Newton Douglas, headFirst National, McLoud, Bert Harris president of the Maud State bank. The Tecumseh National bank, the financial institution the oldest county, closed its doors 15, the day following failure of the Douglas chain. Its closing was attributed the fact the Shawnee National bank was correspondent. Bankruptcy Petitions Filed First rumor of irregularities in the came with from Embry, several the bank's closthat shortage of $150,000 had Since that however, indication of further irregularities has been although department of justice agents spent considerable time records of the Douglas, and Newton Douglas filed petitions in shortly after the closing the banks. The former listed of 023.03 and of The listed of liabilities $24,070.85 and claimed exemption. Their join petition listed liabilities and assets.

Article Text

HEARING MONDAY ON BANK CHARGE

Examining Trial For Three Former Employes set By Commissioner

Preliminary hearings for Donald Douglas, Shawnee banker, and his brother, Tom Douglas, will be held Monday in Oklahoma City Monday before George J. Eacock, United States commissioner, it was announced Thursday when the case was continued following agreement of Cecil Wright, also charged in the investigation of the defunct Shawnee National bank, waived preliminary hearing January 10 when he was arraigned.

Bankruptcy Hearing Tuesday Personal bankruptcy hearings of H. T. Douglas, pioneer Oklahoma banker, and his brother, Newton, head of the McLoud bank, are scheduled for Tuesday before Paul G. Darrough, referee in bankruptcy. The two bankers filed joint petitions of bankruptcy, following the closing of the bank, listing no assets and liabilities of $402,000. The Douglas brothers and Wright face criminal charges which were filed following prolonged investigation into the affairs of the bank which closed November 14, 1932. Donald Douglas is charged with embezzlement of $2,550; Tom Douglas is charged with benefiting through a misappropriation of $8,400; and Wright is charged with the misappropriation of funds for Tom Douglas' benefit. The trio was arraigned January 10 at Oklahoma City following their arrest the night of January 9. Five Other Banks Close The crash of the Shawnee bank took with it five other Douglas controlled banks at Asher, M Sulphur, McLoud, and Allen, and the Tecumseh National bank, which although not part of the Douglas chain, experienced run following the Shawnee bank failure. Irregularities in the Maud and Asher banks also have been hinted by investigators

Article Text

Favorable Progress Made In Liquidating Assets Of Shawnee National

Favorable progress in the task of liquidating assets of the defunct Shawnee National bank was indicated Wednesday by statement of condition released by George C. bry, receiver.

According the report, total cash collected from assets, interest, miums and rents, totals In addition to this figure Embry explained that had been paid to the federal reserve system deem collateral held against the institution, bringing most notes, into the stitution collection. Expenses Disbursements made Embry since taking receivership of the institution include expenses of $10,864.22. Most this understood. has been paid in salaries for the workers quired untangle the complex fairs of the bank. Assets the institution the time its listed at Embry that the figure doubtful the bank building set in far in excess of its present salable value.

Uncollected assets remaining this time include large amount of uncertain paper which boost the figure statement's showed. Unsecured liabilities the time the bank's closing

Staff Reduced Liquidation the institution has progressed sufficiently far permit further trimming the clerical staff duty the bank and two more assistants will be let out Saturday Embry said. No statement was made by the ceiver to the date when the dividend payment be declared, it that there was likelihood of the currency dividend bursement before some time in June.

Article Text

BANK RECEIVER EARNING PROFIT

Liquidation Expenses Are Partially Paid From Firm's Income

Accumulations cash depositors defunct Shawnee National have passed the $300,000 mark, of George Em receiver, showed this week. The bank has cash circulation of $270,000 and rediscounts the federal reserve bank of $62,000 notes outstanding It met payment of $20,000 secured leposits, public funds, now is in the process of liquidation securities in the possesof public treasurers guaranty purposes. Expenses liquidation during the five months the bank has been closed totals $11,000, the report showed. Of this sum, for the audit and does constitute part of the actual expenses. Profits receiver has been able to earn for the bank during the period of liquidation grown about $5,000, leaving $3,900 of the bank funds spent at this time for the five months. This to be one one of the most inexpensive liquidation records

Date for payment of the first dividend to depositors has not been determined. Reports must be sent to the comptrolled of the currency and orders issued from Washington before the funds can be paid.

Post graduate courses for doctors are sponsored by University of Oklahoma extension division.

More than 2,000 persons attendcourses spensored by Oklahoma University last year.

Article Text

LOCAL BANKING SITUATION SOON CLEAR UP

Proposal to Reorganize Shawnee National Is Being Studied

COMMITTEE NAMED

State National Awaiting Federal Orders After Filling Demands

Pottawatomie county's banking had improved officials National awaiting word the comptroller of permit to leopen 65 percent basis.

In the meantime, depositors of the Shawnee National meeting Wednesday night and named committee to reorganizati plan can be affected.

Committee Named

The Shawnce National closed

November, sinking chain of banks. The reorganization ommittee composed of M. Neale, B. Hanimons, Ed Sittel and Roebuck. Fred Reily presided at He pointed out that since it would be impossible for depositors receive their full amounts thru liquidation, it might be better for the depositors and the city whole to take the losses on deposits in order to permit the bank reopen. Investigation of the condition of the bank at this time as well as letermining what steps would have to be taken to have it reopen will be the luties of the committee.

Waivers Signed

Depositors of the State already have signed waivers on percent of their deposits, the amount specified by the federal government. The bank has been -examined and no reports made as to any irregularities of any kind. Every demand has been and those who have been working hard to speed up reopenloss to know why the present delay. The State Bank at McLoud repened some time ago and during the last week, the Bank of Meekresumed normal business.

Article Text

State Review Of Evidence Against Douglases And Three Others Near End

Progressing steadily through technical details, prelimihearings of officials and others nary named state charges in connection with the failed Canadian Valley bank Asher well under way the peace court of Tully Darden Monday Starting 10 o'clock Monday morning after nearly Scott Ferris. state the legal wheels in by calling James M. Fitz, banking department official, the witness stand.

Fitz Testifies Fitz. aided department officials checked small mountain of documentary evidence nearby, testified throughout the morning. his questioning Ferris attempted trace the gress an alleged accommodation note between the Shawnee National bank and Asher institution, both which failed No.ember 14 with the collapse of the Dauglas chain.

Douglas Newton Douglas were specifically named in nection the note, which was by Click, on charges of signed embezzlement. Evidence concerning the alleged misapplication $1,500 from note purported signed Massad allegedly converted the use Douglas, Newton Massad, also brought out by Ferris through questioning of Fitz.

Hearing Near End It evidence by late Monday afternoon that the review dence nearing an end. All but was the six charges had been one viewed and was possible that the hearing might completed by an session Monday night. Defendants in to Newton Douglas, and Massad. are Walker and Ross Walker. implicated in an alleged accommodation note.

Article Text

Bank Receiver On Washington Trip

No word had been received Thursday by assistants at the defunct Shawnee National bank from George Embry, receiver, who in Washington on business connected with the institution.

Door Being 'Closed' Although there was no statement released to that effect, was May sumed that Embry made the trip to British firms doing business in Manchoukuo are about to close their Washington for conference with businesses there because of obstacles the comptroller of currency. created by the Manchouquoan It likely that unless reorganizaernment against movement tion plans approved by the compBritish trade, the United Press troller, declaration of told today by the directors of one of was authorized for the Tecumseh the firms involved National bank this may be The foreign affairs department of proved for some time in the immed!Manchouquo told the United Press ato future. yesterday that Manchoukuo would Several weeks ago, Embry expressed the open door policy the opinion that affairs the bank preserve were shaping up in such way that Withdrawal of the British firms the comptroller might declare diviassent the month of June. had the WEWOKA, as early as May

Article Text

BANK ON WASHINGTON TRI.

No word had been received Thursday by assistants the defunct Shawnee National bank George Embry, receiver, who Washington on business connected with the Although there was no statement released that effect, was presumed that Embry made the trip to Washington for conference with the comptroller of currency likely that unless reorganization plans are approved by the comptroller, declaration of dividend such was authorized for the Tecumseh National bank this week, may proved for some time in the immediate future. Several weeks ago Embry expressed the opinion that affairs of the bank shaping up in such way that the comptroller might declare dend as early the month of June.

Article Text

New Institution Is to Be Formed If State National Fails to Reopen that Shawnee would two banks the near future was Monday committhe National bank new bank would be take of the assets of the failed providing the bank not opened reports federal aminer are submitted. The fedbegan investigatthe bank tailed report be to the federal department. and Neale the depositors committee made public the following statement been working quietly but persistently approximately since we have been serve committee for the The chairman and George Emdepositors on proposition open Shawnee National bank. organize bank take over the eligible assets of the Shawnee National made trip to Washington and received all the data and which brought back report would be necessary organize and the bank could from the receiver the Shawnee Na. tional bank which the examiners would allow into the bank, and depositors would receive their share of the purchase price thereof. The assets would held liquidated the ceiver. This would made large amount the money available to the committee, after considerable negotiation, an agreement with bankers undoubted financial strength acceptable to the banking and willing put up the necessary capital and surplus for the bank. All arrangements completed, the for the capital for surplus vided and new bank could have been opened days. The committee meeting Saturday evening and discussed the proposition that made the assets of the State National bank determine could open. We have been advised all along that would be permitted to operate The department undoubtedly thinks, this from the we that two can meet all the mands of trade Charter Sought "Those in the new bank project to the best not to urge issuance charter for bank, which has applied for, check up can made the State National bank whether or not the partment would permit to open. So with end view await (CONTINUED ON PAGE

Article Text

DOUGLAS IS SUED BY BANK RECEIVER

Judgment of $18,500 against Douglas was asked in district court Friday by George C. Embry, receiver of the defunct Shawnee National Embry's cited an order from the comptroller of currency levying 100 cent stock ment and decreeing individual liability necessity liquidation the institution. The petition charged individual liability on the part of stockholders of the bank had been ordered to the extent $150,000. alleging Douglas was liable for $18,500.

Appropriations for development of mail service in Canada have been increased $136,500.

Article Text

Loans to Oklahoma Banks nee Among Others on List WASHINGTON June Reconstruction Corp. loans authorized during May, 1933. to Oklahoma banks were McCloud First National bank. $6,000 Reydon, First State bank Shawnee. Shawnee National bank (receiver) Shidler, American Exchange bank, $5,020.67 Sterling. Farmers & Merchants Texola. Guaranty State bank $6,007 Security State bank, $14,500

Article Text

LOANS TO STATE BANKS

R. F. C. Releases Names of Oklahoma Institutions Getting Funds.

WASHINGTON June 26 Finance loans authorized during May, 1933 to Cheyenne, First State bank, $5. McLoud First National bank of Paoli, Bank of Paoli, $4 420.67 Reydon, First State bank, $2.490.91 Shawnee Shawnee National bank (receiver) Shidler, American Exchange bank, $5,020.67 Sterling Farmers' and Merchants' bank, $2,843.94 Texola, Guaranty State bank, $6,007 Wetumka, Bank of Commerce, Wewoka, Security State bank,

Article Text

Ben Johnson To Succeed Embry As Head Of Defunct Shawnee National veteran state banker Ben Wednesday will over his new duties receiver for the defunct Shawnee National bank, one time the institution ofthe chain Donuglas banks which stretched throughout central Okla-

Johnson, president of the First otinal bank for years, will succeed George Embry, named receiver local institution shortly its collapse in NovemEmbry said Tuesday night would remain here about week assist Johnson, insisted he no longer connected with the federal banking The receiver also take charge closed national banks and both under the management Embry since they closed with the Johnson said he was notified of appointment Monday The change was made the United States comptroller of rency Embry came here receiver efforts have made deposinee National and its doors reopen depositors. Details the reorganizahad not been worked the time the change in ceivers, however, and no final decision has been made.

Article Text

Bank Receiver Confers With County Heads

County commissioners and Ben Johnson, receiver for the Shawnee National bank, Thursday conferred on the county's participation in the recent 15 per cent dividend declared by the institution. The conference was called to discuss possible offset of county warrants and bonds held in the defunct bank by the dividend payment to the county, officials said. They agreed to study the matter further and map out program which would serve the best interests of both parties. Information was being awaited from the comptroller of the currency at Washington, it was said. Rulings formerly procured from the state attorney general's office ruled against possible offset, officials said. The county's dividend was esti. mated at about $18,000. Records of Orville C. King, county treasurer, showed Thursday the county's deposits in the bank at present were about $88,000 for which about $100,000 worth of security was posted. When the bank failed the county had deposits of $122,000 secured by $127,000 of bonds and warrants, according to records, thus showing the process of liquidation.

Article Text

TREASURER TO BUY WARRANTS

Purchase Of $5,300 Worth Of Warrants Authorized By Commissioners

County commissioners have authorized purchase by Orville King, county treasurer, of county warrants held in the defunct Shawnee National and Tocumseh National banks totaling $5,300 as move to save the county interest charges on the warrants Warrants remaining unredeemed in the Shawnee National bank total $2,900 while $2,400 in warrants are held in the closed Tecumseh institution. By purchasing these warrants. from the county's sinking fund, further payment of the six per cent interest on them will be saved, King pointed out. Inasmuch county deposits re. turn only two per cent interest, the savings will amount to four per cent. The step would have been taken sooner, but the status of the warrants was not clear until after negotiations with the comptroller of the currency which made it evident that lawsuit would be necessary if the county was to avoid having the warrants offset against its deposits. Rather than go to the expense of a lawsuit and to save the interest charges, direct purchase of the warrants has been decided upon.