Multiple contemporaneous articles (Sept 23–24, 1927) report the Citizens State Bank of Council Grove asked the state banking department to begin receivership and closed because of bad or frozen loans. No run or depositor panic is described. Subsequent articles (late 1927–1929) document a receiver, liquidation, asset sales, and lawsuits, consistent with permanent closure.
Events (4)
1.September 23, 1927Receivership
Newspaper Excerpt
asked the state banking department to begin receivership ... was placed in the hands of the state bank commissioner, Roy Bone of Topeka, who has a representative here checking over affairs of the institution. Receiver's later reports show collections and dividends being processed and assets sold in 1928–1929. (Council Grove Republican, Sept 23, 1927; Dec 29, 1927; 1928–1929 articles).
Source
newspapers
2.September 23, 1927Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank directors closed the bank and asked for receivership due to frozen/bad loans and inability to realize on collateral; loans exceeded realizable value (face value ~$161,000 reported).
Newspaper Excerpt
At Council Grove the Citizens State bank, having deposits of about $150,000, asked the state banking department to begin receivership ... Bad loans, the banking department announced, compelled the Council Grove bank to close.
Source
newspapers
3.July 27, 1928Other
Newspaper Excerpt
C. Johnson, state bank receiver, has brought suit in the district court against the National Surety company for the collection of $10,000 bond in connection with the closing of the Citizens bank here. The bond, if paid will be added to the assets of the bank and apportioned among depositors dividend. (1928-07-27).
Source
newspapers
4.March 19, 1929Other
Newspaper Excerpt
The Citizens bank building and fixtures sold at auction today ... The sale was conducted by the receiver ... The bank building ... was sold ... final purchaser paid $8,200. (1929-03-19).
Source
newspapers
Newspaper Articles (15)
1.September 23, 1927Council Grove RepublicanCouncil Grove, KS
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Frozen Assets Accountable for Action of Loss May be Nominal
The Citizens State Bank did not for business this morning. cision to close its doors was reached by the directors in meeting held last night. was immediately placed in the hands of the state bank commissioner, Roy Bone of Topeka, who has representative here checking over affairs of the institution. Until the ledgers have been thoroly checked by accountants, no decision can be made regarding its future. Whether it is re-organized or liquidawill depend largely upon the directors and present stockholders and the extent of its frozen assets. Inability to continue business was due, officers stated, to frozen loans on which the bank was unable to realize. Slow or "iced" collateral, has been responsible for most of the bank suspensions which have occurred in Kansas during the deflation period. There was no adverse comment over the situation along the street this morning and absolutely no criticism or censure of the bank officers. It generally understood that those actively connected in the management of the instituation made superhuman efforts to maintain its stability against conditions which have caught far larger banks over the state. Confidence is expressed that liquidation is decided upon sufficient assets will be collected to make any loss to depositors very nominal. Its last statement made to the bank commissioner on June 30 showed loans of and deposits of $155,248.89. The Citizens has capital and surplus of Stockholders and the number of shares controlled by each at recent statement are: Gabriel Frank, 127; E. Pirtle estate, 40; Morris 31; W. Clark, Rees, Cahill, Hanson, 2; Hugh Stewart estate E. Leatherwood, Alfred Richards, 10; Wilson, N. Dilley, Jr., 5; Sam Illk estate, Elva Illk, 5; Minnie Loop, Marburg,
2.September 23, 1927The Iola RegisterIola, KS
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CASHIER BANK HELD
Sam King Of Zarah State With ing By Bank Is Closed.
Olathe, Sept. 23. Sam cashier of the Zarah King, State Bank Zarah, Kan., arrested midnight last night on counts after investigation the bank's and was placed in jail here fairs, today. charges were filed by Johncounty authorities after the Kansas bank thorities, which lasted until late last night.
Largest Loss $3,000.
According authorities, the largest alleged embezzlement The bank was ordered closed day by its board of directors. The charges alleged false finan statements the banking department June 30 and that false entries made consisting of credits to accounts where deposits were record Board Closes Bank. Topeka, Sept. Zarah State Bank Zarah Johnson county was closed today by its board of directors. The banking withheld comment action pending the Kennedy, assistant state bank has Zarah to investigate the bank's affairs. The bank $10,000 capital stock. When Kennedy arrived he nounced that Sam King, cashier and principal stockholder of the was placed in jail Olathe o'clock this morning. The sistant bank commissioner clared that King falsified cash items and overdraft Kennedy that King took overdrafts of depositor, whose not revealed. Parents Heartbroken. King years old. He ried and the father of two children. aged parents living They Kennedy said when they learned their trouble Deposits in the bank taled Loans amounted Rediscounts Park Mettee is president the bank but only minority stockholder. Accusations of irregularities made King following of the bank yesterday by Carson, deputy bank Two Banks Closed. Topeka, Sept. banks closed today by their boards of directors At Council Grove the Citizens State Bank having deposits of about $150,000 asked the banking and the Zarah State Bank suspendbecause of the arrest Sam King, cashier, on charges of loans, the banking partment the Council Grove bank to close.
Cashier Held In Jail Bank Closed
Sam King. cashier the Zarah State Kas., midnight last night on six counts after an of the affairs, and was placed in jail here The charges were filed by Johncounty after investigation by Kansas bank which lasted until late last According authorities the largest alleged embezzlement was Directors Close Bank. The was closed today by its board of directors.
Kas., Sept. Zarah State bank of Zarah county was closed today by its board directors banking withheld comment the action pending the return Kennedy. assistant state bank comhas gone Zarah investigate the bank's affairs The bank $10,000 capital stock.
Kas. Sept state banks closed today by their boards directors. Council Grove the Citizens State having deposits about $150,000. asked the state banking department begin and Zarah the Zarah State bank suspended busibecause the arrest Sam King. cashier on charges of bezzlement
Bad "Bad" loans, the banking announced compelled Grove bank to close All had face value the last quarterly The bank's capital and the surplus Gabriel Frank president of the bank and M. Leatherwood cashier deputy bank placed charge of the Grove institution When Kennedy arrived he Sam King. cashier and principal of the was placed in jail Olathe o'clock this The assistant bank clared King falsified overdraft records. Kennedy said that took of overdrafts of whose not revealed Parents King years is married the father of two children aged parents are living They heartbroken Kennedy said, when learned their son's trouble Deposits the bank totaled $46,191 Loans to $52,366. RePark Mettee is president the bank only minority holder Accusations irregularities made against following bank terday deputy bank
4.September 24, 1927The Austin AmericanAustin, TX
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PREACHERHELD ON CHARGE
San Quentin Man Hanged for Murder.
GRAND RAPIDS.-The Rev. Willis J. Jordon, Columbus, Ga., preacher, was arrested here on telegraphic advices from the sheriff at Charlotte, N. He was taken into custody at the home of Mrs. Ella Thomas, whom he said he came here a week ago to marry The telegram from the Charlotte sheriff did not specify the charge on which the Rev. Jordon was sought.
CHARLOTTE.W. c. Dowd Sr., publisher of the Charlotte News, died suddenly at his home here. KINSLEY, Kan-Harold Dewitt, accused slayer of Sheriff Govan C. Mills of Hamilton county, was captured here. He was found in a railroad coal chute, where he had taken refuge when rain began falling. following his escape from jail at Dodge City.
SAN QUENTIN.-Earl J. Clark, convicted of murdering Charles Silva, San Pedro sailor, in April, 1925, was hanged here. The trap was sprung at 10:01 and Clark was pronounced dead 13 minutes later
TOPEKA.-Two state banks were closed Friday by their boards of directors. Council Grove, the Citizens State bank, deposits of about $150,000, asked the state banking department to begin receivership, and at Zarah, the Zarah State bank suspended business because of the arrest of Sam King, cashier, on charges of embezzlement.
NEW YORK.-Mrs. Alice Ardis, 28, wife of J. T. Ardis, wealthy broker, either jumped or fell from 15th floor window of her apartment on Fifth avenue at 84th street and was killed. maid said Mrs. Ardis had been 111 and under docto: care for nervous trouble for some time.
5.September 24, 1927The MercuryManhattan, KS
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TWO BANKS ARE FORCED TO CLOSE THEIR DOORS
Citizens State at Counell Grove Un. der--King Charged With Six Embezzlement Counts
Topeka, Sept. 23. (AP)-Two state banks were closed today by their boards of directors. At Council Grove the citizens state bank, having deposits of about $150,000. asked the state banking department to bezin receivership and at Zarab the Zarah state bank suspended business because of the arrest of Sam King. cashier on charges of embezzlement. "Bad" loans, the banking department announced, compelled the Council Grove bank to close, All of the loans had a face value of $161,000. at the time of the last quarterly
Two Kansas State Banks Are Closed By Officers
The Associated Press) TOPEKA, Kans., Sept. state banks were closed today by their boards of directors. At Council Grove, the Citizens State bank. having deposits of about $150,000 asked the state banking department to begin receivership and at Zarah the Zarah State bank suspended business because of the arrest of Sam King. cashier, on charges of embezzlement.
7.September 24, 1927The Daily OklahomanOklahoma City, OK
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Two Kansas State Banks Are Closed
Sept. state banks were closed Friday by their boards of directors At Couneil Grove the Citizens' State bank. having deposits of about $150,000, asked the state banking department to begin receivership. and at Zarah, the Zarah State bank suspended business because of the arrest of Sam King. cashier, on charges of
COUNCIL GROVE BANK CLOSES
The Citizens' State bank Councilhaving deposits of about asked the state banking to last the banking departannounces, compelled the bank The captial stock was and the surplus GabFrank the president and the An share on the bank stock been called for by the bank mission. At Zarah. Kansas. the Zarah State bank business the past week because of the arrest cashier, no charges of
9.December 29, 1927Council Grove RepublicanCouncil Grove, KS
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RECEIVER HAS OVER $65,000.00 HAND
Dividends May be Delayed by Court Suits Outsanding De$175,936
Except for priority suit filed in district court, depositors of the Citizens State bank could be paid dividend of approxmately 30 per cent once. detailed financial report made today by E. Snyder, receivis the first statement of the bank's condition since it closed last September.
The statement shows available cash hand of about which is on third of the unpaid deposits. Of this cash, however, about $16,000 tied up in district court suit recently filed with the object of establishing priority payment for one depositor. Total cash shown represents collections made during 90 days by the receiver plus the bank's own cash of $11,000 when the bank closed. The receiver's statement quotes unpaid loans still totaling with overdrafts, which are really loans, of $5,066. Stockholders' liabilites are given as $9,580, which is indicated that more than $15,000 has already been paid in to the receiver under the double liabiliyt law affecting the stockholders of bank. Resources of in real estate equities are shown, in addition to the bank building. During the month just closed loans totaling $3,081 were collected. The state banking repartment has told Receiver Snyder that it was highly gratified at the dispatch with which collections of notes are being made here. One item of disbursement shows that the total liquidation expense since the bank suspended has amounted to only $1,204. Deposits for which the bank is liable are given $175,936.
BROWN DEAD
J. N. Brown, aged resident of White City died last night following long illness. He was 86 old years and had lived in White City since retiring from the farm many years ago. Mr. Brown survived by his widow and three children, Al of White City, Mrs. Bunning and Mrs. Minnie Whitehead of Liberal. He was veteran of the civil war and one of the half dozen remaining members of G. A. in that community. Funeral services will be conducted from the Methodist church at 2:30, o'clock Friday afternoon. Rev. Cray James will have charge of the service and interment will be made in the White City cemetery.
10.July 27, 1928Council Grove RepublicanCouncil Grove, KS
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SUES FOR
C. Johnson, state bank receiver, has brought suit in the district court against the National Surey company for the collection of $10,000 bond in connection with the closing of the Citizens bank here. The bond, if paid kill be added to the assets of the bank and apportioned among depositors dividend.
PLAY KID FINALS
Finals in the state base ball games of the juvenile league sponsored by the American Legion are being played this afternoon at poria between that town and Salina. Yesterday Emporia fought its way to the finals by defeating Norton while Salina trimmed Kansas City.
ABANDONS COTTONSEED
Herington which experimented with cottonseed greens two years ago its golf course, has abandoned them for sand. The ton seed cost around thousand dollars but proved unsatisfactory to most golfers and will removed
VIEW ON SEPT.
The board of county commission. will go to Clark's Creek on Sept. to view the new road titioned for by Geo. Parker and others in that community. Yeserday the board spent afternoon inspecing road graders.
PROSPERITY ITEM George Speer has purchased new Chrysler coach from the son agency. Delivery was made today.
11.August 4, 1928Council Grove RepublicanCouncil Grove, KS
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MORE BANK SUITS
Three more suits for the recovof funds on deposit in the Citery izen's state bank were filed in the distret court today. The plantiff all Mexicans. H. Alvardo are he had balance of alleges on which was paid a idend of $428.30. Patricia Alvardo claims balance of which she has received Martin Alvardo had and has been paid posit bank receiver. Each asking the against Gabriel Frank judgement M. Leatherwood for the and Pirtle is the balance due. local attorney.
12.March 19, 1929Council Grove RepublicanCouncil Grove, KS
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WHITE PURCHASES DR. CITIZENS AND FIXTURES
He Paid $8,200 After Savings Loan Bidders Dropped Snyder Auctioneer.
The Citizens bank building and fixtures sold at auction today for Dr. White was the $8,200. The sale was conductpurchaser. E. Snyder, assistant ed by ceiver, under instructions from the banking department. shortly afThe auction opened 10 o'clock with sale of each ter individual item of equipment separAuctioned in this way the ately. The oak fixtures marble counters which grill cost $700 was knocked originally Haucke on an initial down to bid of $25. An electric adding and machine that originally posting sold for $750 purchased by for $50. A wicked lookH. White .45 caibre revlover went to Fred for $2.50. The bank buildBrown ing auctioned separately was sold to Lowe for $4,100. However, bank instructions reto be sold in bulk quire all property al well as separately, the highest offer to Sold separately govern. the Citizens property brought auctioned in bulk $4,513.35, but bids mounted rapidly to final ure of $8,200. The contest for the building with its splendid vault and burglar safe developed into bidding proof duel between the Morris County Loan Association and the Savings final purchaser. Rhodes, repthe former, dropped out of the bidding at $8,100. The sale drew large crowd including number of bankers. the latter were W. H. White, mong Beck C. Haucke and Most of the bankers Prater. were merely interested spectators and seldom bid on the equipment went up for sale.
DREW THREE FINES
Oscar Riegel of Wilsey drew three separate fines on as many charges when arraigned in county court today. He entered pleas guilty to three counts of being intoxicated, resisting an officer and having liquor in his possession. Loomis fined hm imbibJudge ing to the stage of being pickled, and $40 for resisting arrest. Reigel to have put stiff is alleged up when Constable Tom Melvin fight of Wilsey attempted to take him in custody pénding the arrival or officers Soturday. On the county of having liquor in woodcharge the prisoner received fine keg, of $100 and 90 days in
HELD ALFALFA MEET to the A meeting encourage of more alfalfa in Morris growing held at Burdick high county was school last night by the county Willoughby from the agent. agricultural college was the prinspeaker. The agricultural cipal class of Burdick with 30 farmers, heard ods and alfalfa problems
13.March 19, 1929Council Grove RepublicanCouncil Grove, KS
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WILL APPROVE SALE is likely the state banking dewill the receivers partment approve sale of Citizens bank holdings made here The total realized today. the sale telephoned Chas. from was Johnson, bank receiver at Topeka. instructed the local receiver to ward formal report of the procertified check for ceedings. A purchase price was posted by White immediately after the sale.
14.October 9, 1929Council Grove RepublicanCouncil Grove, KS
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GETS STOCK RELEASE
C. W. Johnson, state bank receiver, has filed with the district clerk release to Rees, showing that the latter has paid his double liability assessment caused by the failure of the Citizens State bank here.
CLOSE DWIGHT STORES Dwight merchants have decided to support the high school football team there by closing all stores from to on days when there is home This week game played. Strong City plays on the Dwight field.
CHESTNUT CROP James Sharpe, orchardist, has fair crop of Chestnuts along with Jonathan and other apples this year. He has chestnut tree near his house which bearing crop of good sized nuts.
NOAH MATKINS HERE Noah Matkins here on short business Idaho where he trip from located after Council Grove. leaving
15.November 5, 1929Council Grove RepublicanCouncil Grove, KS
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TELLS
Appraisers In Informs Senate He Saw Row of SilJudge Appoints Fones Gilmore Divorce Flasks Behind Curtin at Plaintiff. Hotel Dinner.
The current term of district court adjourned yesterday and Judge Clark will not return here until it is time to the Decemopen ber term. was made of Disposition several minor cases yesterday. The court the appointment of approved Jaillite, Brown and Parker as appraisers in the partition suit brought by Mamie Fones against Elsie Fones. If no election made within 10 days after the appraisers report an order of sale will issue. Pirtle is the attorney. The divorce suit of Jasper Gilmore Iva Gilmore was tried again before the court yesterday and decree given to the plaintiff who is to have the custody of two boys. The girl is given into the custody of her mother, and the plaintiff ordered to pay $10 per month for the child's support. The father is to have the daughter for days during school vacations, at which time the monthly maintenance is to be remitted. Henry geson and Pirtle are the torneys. Witnesses who testified were subpoened were Ida Maelzer, Mrs. Jo Armstrong, Young, Iva Reed, Lydia Rader, Mr. and Mrs. O. Kirk. The suit to break will filed by Viola Cady against Florence Schlumbohm was dismissed cost of the plaintiff. Judgment in the Thomas Mortgage company foreclosure against Bashor was fixed at $583.65. Judgment given Black in his suit against the Citizens bank receivers was fixed at by the court. Pirtle was the attorney. A demurrer to the evidence was sustained in the action of Miller against the Agricultural company and motion for new trial was overruled. Snyder was the attorney. The suit of Ina Borman against C. Prater, administrator, was dismissed at the plaintiff's cost.
Washington, Nov. story of street booze party dinner" in was told senate today by Senator Brookhart of Iowa, who said he sat between Otto Kahn and Loomis of the Morgan firm. Brookhart declared the first person he saw at the hotel meeting place was Kahn. occur me that he was such friend of Norris and LaFollette," Brookhart said, "but went The Iowan then picked up program of the dinner containing list of the guests. However he did not read merely commenting that "there were number of Wall streeters Senator Thomas of Idaho reachover Brookhart's desk to look at the and the program speaker paused in his address to to say Thomas "Get away from there." In the reception room at the dinner which Brookhart said he was urged to attend by Senator Moses, someone lifted and there row of silver flasks. He was told to help himself. Both Senator Smoot and himself diswere gusted, he said.
LIVING MORE COMFORTABLE
Lawrence, Nov. provements have increased maially in Kansas in the past four years, according to the League of Kansas Municipalities. With the exception of municipal bands elecservice, nearly all municipally owned utilities have increased and the privately owned light plants nearly doubled in four years. Of the 570 incorporated cities of the state, 562 had electric light and power plants in 1929, whereas 45 did not have such service in 1925. Comparatively few cities have private water plants, number of municipal water plants increased from 256 to 294 in Public libraries increased from 161 to 186 and city halls 267 to 292.
