5688. Burlington State Bank (Burlington, KS)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
April 1, 1927*
Location
Burlington, Kansas (38.194, -95.743)

Metadata

Model
gpt-5-mini
Short Digest
5d53ae8ef676502e

Response Measures

None

Description

Newspaper reports from April 1927 describe a run (heavy withdrawals over about a week) that prompted the board to close the bank as a precaution and notify the state banking department. Later (Oct 1929) a state bank receiver is paying a dividend for the Burlington State Bank, indicating it ultimately entered receivership/was closed permanently. OCR errors in articles corrected (e.g., 'McCleland's Mkt.' and fragmented sentences).

Events (3)
1. April 1, 1927* Run
Cause
Rumor Or Misinformation
Cause Details
Steady heavy withdrawals over about a week prior to April 7, 1927; articles describe nervousness/run but do not cite specific bank insolvency or other banks' failures.
Measures
Directors decided to close the bank temporarily to properly protect depositors; notified state banking department.
Newspaper Excerpt
a run on the bank, which started a week ago, with heavy withdrawals
Source
newspapers
2. April 7, 1927 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank closed by directors after a week's run and heavy withdrawals; president stated bank was solvent and closing was precautionary to protect depositors.
Newspaper Excerpt
The Burlington State bank here ... failed to open its doors today. The decision to close ... was reached by directors at a meeting Wednesday night.
Source
newspapers
3. October 1, 1929 Receivership
Newspaper Excerpt
10 per cent dividend will be paid the Burlington state bank. It is $12,600 and makes total of 80 per cent. (state bank receiver will pay dividend...)
Source
newspapers

Newspaper Articles (5)
1. April 7, 1927 The Orange Leader Orange, TX
Article from The Orange Leader, April 7, 1927

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Article Text

KANSAS BANK per pound Lots of fresh strawberries CLOSES DOORS BURLINGTON, Kan., April ?The Burlington State bank here, McCleland's Mkt. with total resources of $208,051. failed to open its doors today The decision to close, It is believPork Chops ed. was reached by directors at a 25c meeting Wednesday night. A run per pound on the bank. which started a week ago, (with heavy withdrawals, was blamed. by A. J. Sanders, president. Veal Chops 20¢ The closing was the only way in which depositors could be protected per pound properly, Sanders declared. The bank is solvent and today's action was only precaution, he said.

2. April 7, 1927 The Emporia Gazette Emporia, KS
Article from The Emporia Gazette, April 7, 1927

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Article Text

BURLINGTON STATE SHUTS DOWN TO STOP RUN. Assets Could Be Cashed in and Depo-itors Paid Full, Says President Sanders. Burlington, April Ungton State bank closed this morning its board Notice the closing the banking audit bank's of depositors given the cause bank's closing. The bank from the state fund, many other banks Kansas. bank capital, surplus, loans and payable Sanders presithe bank and Mattie Hutchings cashier. Depositors not lose by the closing, the president could to Kansas City pay the Sanders closed stop steady that had been days. run every could the bank that flood last did not the floods. that from the closed after flood March: 1922. from bank crippled another September.

3. April 7, 1927 Council Grove Republican Council Grove, KS
Article from Council Grove Republican, April 7, 1927

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Article Text

BURLINGTON BANK FAILS Had Lost $100,000 in Deposit With drawals Topeka. Apr. Burlington state bank of that city closed its doors today. Heavy withdrawals which shrunk its cash from $297,000 few weeks ago to given as the reason for suspending business. The Burlington state was organized in 1919 with $25,000 capial. It has loans of Sandis president, A. Stone vice president, and Mattie Hutchins, cashier. The failure leaves Burlington with but one bank.

4. April 8, 1927 The Wichita Eagle Wichita, KS
Article from The Wichita Eagle, April 8, 1927

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Article Text

KANSAS BANK FAILS TO OPEN State Institution at Burlington Remains Shut After Week's Run Eagle KAN., April The Burlington State bank did not open its doors this as result decision made by Sanders, D. Harreld and Norris, of the board of directors in meeting Wednesday night. Mr. Sanders, of the institution, said that the temporary closing was made necessary because of on the bank about week ago, and that because of the many this the way to properly protect depositors. "It does not appear probable that the depositors will lose anything for the bank entirely solvent. The closing only precaution, said the president this morning. The bank's statement of March 23, 1927, shows total deposits of $171.loans cash and change $19,054.67 and total $208,051 The state banking department has been notified, and representative will be sent here.

5. October 1, 1929 Council Grove Republican Council Grove, KS
Article from Council Grove Republican, October 1, 1929

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Article Text

TO PAY DEPOSITORS Topeka, Oct. Johnson, state bank receiver will pay dividend to depositors of the Farmers bank of Bird City on Oct. 15. will be 20 per cent or A findividend of per cent will be paid for the Fidelity state of Chanute, amounting to $32,900. 10 per cent dividend will be paid the Burlington state bank. It is $12,600 and makes total of 80 per cent. The Citizens of Claflin will receive their first dividend of 69,000, or 50 per cent on Oct. 25.