5793. First National Bank (Fort Scott, KS)

View Charter #1763 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
1763
Charter Number
1763
Start Date
November 18, 1908
Location
Fort Scott, Kansas (37.840, -94.708)

Metadata

Model
gpt-5-mini
Short Digest
04a9dc405add06f7

Response Measures

Accommodated withdrawals, Full suspension

Receivership Details

Depositor recovery rate
77.6%
Date receivership started
1908-11-20
Date receivership terminated
1910-04-16
OCC cause of failure
Fraud
Share of assets assessed as good
54.6%
Share of assets assessed as doubtful
41.9%
Share of assets assessed as worthless
3.5%

Description

Contemporary reports state a two-day run preceded the bank's closing; the president requested a federal receiver (Comptroller appointed J.D. Bradley). President Hornaday attributed the run to malicious reports (rumors). The bank did not resume normal operations; a receiver handled claims and liquidation actions followed through 1909. Dates: run mid-November 1908, suspension/receivership Nov 20, 1908.

Events (5)
1. January 10, 1871 Chartered
Source
historical_nic
2. November 18, 1908 Run
Cause
Rumor Or Misinformation
Cause Details
Two-day run precipitated by malicious reports spread about the bank, according to President Hornaday
Measures
Depositors withdrew large sums over two days; bank president asked Comptroller to appoint a receiver to protect depositors; bank closed its doors to stop further withdrawals.
Newspaper Excerpt
run on the bank which has lasted two days
Source
newspapers
3. November 20, 1908 Receivership
Source
historical_nic
4. November 20, 1908 Receivership
Newspaper Excerpt
appointed James D. Bradley, bank examiner, as receiver of the First National bank of Fort Scott, Kan.; the First National bank ... closed its doors today and the Washington authorities have been asked to send a receiver to take charge . . . deposits $702,000 . . . assets exceed liabilities by $127,000 . . . depositors will be paid in full . . . .,cause:null,
Source
newspapers
5. November 20, 1908 Suspension
Cause
Government Action
Cause Details
President Hornaday requested appointment of a federal receiver after the run; Comptroller of the Currency appointed a receiver and the bank closed by order of its directors/president (suspension and receiver appointed).
Newspaper Excerpt
Comptroller...appointed James D. Bradley, bank examiner, as receiver of the First National Bank of Fort Scott, Kansas
Source
newspapers

Newspaper Articles (22)
1. November 20, 1908 Evening Star Washington, DC
Article from Evening Star, November 20, 1908

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Article Text

FORT SCOTT BANK IN TROUBLE. Receiver Named for First National in Response to Request. Controller of the Currency Murray today appointed James D. Bradley, bank examiner. as receiver of the First National Bank of Fort Scott, Kansas. This action was taken upon receipt of a telegram from President Hornaday asking that a receiver be appointed, owing to a run on the bank which has lasted two days. The bank has a capital of $100,000, and according to the last report had a surplus of $25,000.

2. November 20, 1908 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 20, 1908

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ITS DOORSCLOSED Grant Hornaday's Bank in Hands of Receiver. Malicious Reports Cause Run, Says President. DEPOSITS W ERE LARGE Over Seven Hundred Thousand Dollars the Amount. Had No Connections With Kansas State Banks. Washington, Nov. 20.-Comptroller of the Currency Murray today appointed James D. Bradley, bank examiner, as receiver of the First National bank of Fort Scott, Kan. This action was taken upon receipt of a telegram from President Hornaday asking that a receiver be appointed owing to the run on the bank which has lasted two days. The bank has a capital of $100,000 and according to the latest report had a surplus of $25,000. One of State's Oldest Banks. Fort Scott, Kan., Nov. 20.-The First National bank of Fort Scott, one of the oldest banks in the state, closed its doors this morning. The bank had deposits of $702,000. The closing followed a run on the bank yesterday, when depositors withdrew $56,000. Grant Hornaday, the president, in a statement this morning, stated that the failure was the result of malicious reports spread by enemies of the bank. He said that the bank's assets exceeded the liabilities by $127,000 and that the depositors would be paid in full. The depositors number about 2,000, many of them small merchants. The bank was organized in 1870 and the officers at the time of closing were Grant Hornaday, president; F. A. Hornaday, cashier, and Charles Love, vice president. Its correspondents are the National Bank of Commerce, New York; Central National bank of St. Louis and the First National bank of Kansas City. A crowd of depositors gathered about the bank building this morning, but there was no demonstration. St. Louis Bank O. K. St. Louis, Nov. 20.-At the Central National bank it was said that the amount of the account due was inconsiderable and that it was amply secured.

3. November 20, 1908 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 20, 1908

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RECEIVER CHECKS BANK RUN. Appointed at Request of Ft. Scott, Kas., Bank President. Washington, Nov. 20.-Comptroller of Currency Murray, today appointed James D. Bradley, bank examiner, receiver of the First National bank of Ft. Scott, Kas. This action was taken upon the receipt of a telegram from President Hornaday asking that a receiver be appointed, owing to a run on the bank, which has lasted for two days. The bank's capital is $100,000, according to the last report, and it had a surplus of $25,000.

4. November 20, 1908 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, November 20, 1908

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KANSAS BANK GOES UNDER BECAUSE OF A RUN ON IT Washington, Nov. 20.-The comptroller of the corrency, Mr. Murray, today appointed James D. Bradley, a bank examiner as receiver of the First National Bank of Fort Scott, Kansas, upon receipt of a telegram from the president of the bank, Grant Hornaday, asking that a receiver be appointed owing to a run on the bank for two days. The bank has a capital of $100,000. Malicious Reports Caused Failure. Fort Scott, Kansas, Nov. 20.-The First National Bank of this city and one of the oldest in the state closed its doors today. The depositors number about 2,000. The bank had deposits of $702,000. President Grant Hornaday says the assets exceeded the liabilities by $127,000. The failure was caused, he said, by malicious reports spread by enemies.

5. November 20, 1908 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, November 20, 1908

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NATIONAL BANK IN KANSAS GOES TO WALL [By Associated Press. ] Washington, Nov. 20.-Comptrolher of the Currency Murray today appointed James D. Bradley, bank examiner, as receiver for the First National bank of Fort Scott. Kansas. This action was taken at a telegraphic request of President Hornaday, owing to a run on the bank. which has lasted two days. The bank has a capital of $100,000. The closing of the First National bank was due, according to President Hornaday, to malicious reports spread by enemies of the bank. The bank had deposits of $702,000 and according to President Hornaday the assets exceel the liabilities by $127.000. The depositors will be paid in full.

6. November 20, 1908 Lewiston Evening Teller Lewiston, ID
Article from Lewiston Evening Teller, November 20, 1908

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FORT SCOTT BANK CLOSED PRESIDENT SAYS THAT MALICIOUS REPORTS BY ENEMIES WAS THE CAUSE-RECEIVER APPOINTED. Fort Scott, Kan., Nov. 20.-The First National Bank of Fort Scott closed its doors today, following a run yesterday, when the depositors withdrew $56,000. President Honaday says a malicious report spread by enemies is responsible and that the assets will exceed the liabilities by $127,000 and the depositors will be paid in full. J. D. Bradley has been appointed receiver by the controller of the currency at Washington.

7. November 20, 1908 The Spokane Press Spokane, WA
Article from The Spokane Press, November 20, 1908

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BANK SUSPENDS FORT SCOTT, Kas., Nov. 20.The First National bank of this city closed its doors today by order of President Grant Hornaday. The Washington authorities were requested to appoint a receiver. The liabilities are $662,000 and the assets $789,000. The cause of the failure was not announced. President Hornaday declared his private fortune would protect the depositors.

8. November 20, 1908 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, November 20, 1908

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FT. SCOTT, KAN., BANK GOES UNDER First National with $100,000 Capital Unable to Stand a Two Days' Run. Washington, Nov. 20.-Controller of the Currency Murray today appointed James D. Bradley, bank examiner, receiver for the First National bank of Fort Scott, Kan. Action was taken upon receipt of a telegram from President Hornaday asking that a receiver be appointed owing to a run on the bank which has lasted two days. The bank has a capital of $100,000 and according to the last report had a surplus of $25,000.

9. November 20, 1908 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, November 20, 1908

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Closing of a Bank. Fort Scott, Kas., Nov. 20.-The First Nation al Bank of Fort Scott today closed its doors upon orders of President Grant Horraday, and the Washington authorities have been asked 10 send a receiver to take charge. The liabilities are given at $662,000, and the book assets $789,000; ca bital stock $100,000. It is feared the fa lare will involve other concerns. Hornaday, the president, is reputed to be & millionsire and says all his property will go to pay the loss.

10. November 21, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, November 21, 1908

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NATIONAL BANK OF FORT SCOTT CLOSED OFFICIAL SAYS MALICIOUS RUMORS ARE TO BLAME Two Thousand Small Merchants Had Deposits in Suspended Institution. Crowd Surrounds Building. President Hopeful FORT SCOTT, Kas., Nov. 20.-The First National bank of Fort Scott, one of the oldest banks in the state, closed its doors this morning. The bank had deposits of $702,000. The closing followed a run on the bank yesterday when depositors withdrew $56,000. Grant Hornaday, the president, in a statement issued today stated that the failure was the result of malicious reports spread by enemies of the bank. He said the bank's assets exceeded the liabilities by $127,000 and that the depositors would be paid in full. The depositors number about 2000, many of them small merchants. A crowd of depositors gathered about the bank building this morning, but there was no demonstration. Comptroller of the Currency Murray appointed James D. Bradley, bank examiner, as receiver of the bank. The bank, according to the last report, had a surplus of $25,000.

11. November 21, 1908 New-York Tribune New York, NY
Article from New-York Tribune, November 21, 1908

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KANSAS BANK SHUTS DOOR. Closing Follows Run-President Says Depositors Will Be Paid in Full. Washington, Nov. 20.-Lawrence O. Murray. Controller of the Currency, to-day appointed James D. Bradley, bank examiner, as receiver of the First National Bank of Fort Scott. Kan. This action was taken upon receipt of a telegram from President Hornaday asking that a receiver be appointed, owing to a run on the bank, which has lasted two days. The bank has a capital of $100,000. according to the last report, and a surplus of $25,000. Fort Scott. Kan., Nov. 20.-The First National Bank of Fort Scott. one of the oldest in the state, closed its doors this morning. The bank had deposits of $702,000. The closing followed a run on the bank yesterday. when depositors withdrew $56.000. Grant Hornaday, the president, in a statement this morning, stated that the failure was the rey sult of malicious reports spread by enemies of the bank. He said that the bank's assets exceed the liabilities by $127,000. and that the depositors would be paid in full.

12. November 23, 1908 University Missourian Columbia, MO
Article from University Missourian, November 23, 1908

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SPIRIT OF THE NEWS The First National Bank of Fort Scott, known throughout Kansas as "Grant Hornaday's bank," has closed its doors. The bank has lost in deposits since the panic of last year. There was a run on the bank for two days, which necessitated the closing of the doors. Announcement was made to depositors. that 50 per cent of the dividends would be paid by January 1, and the balance in three or four months. Only the stockholders, it is said, will lose anything. Grant Hornaday was a banker-politician and is a prominent man throughout Kansas. He has been "mentioned" several times as a candidate for governor, and was a candidate for Congress several years ago. He was always known as a member of the "machine." Hornaday has lived in Kansas since 1876. He has done much for the town of Fort Scott, it being full of "Hornadays Institutions." The failure of his bank has caused much surprise in that section of the country.

13. November 23, 1908 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, November 23, 1908

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RECEIVER FOR KANSAS BANK Appointment Follows Run on the Institution. Washington, Nov. 21.-Comptroller of the Currency Murray has appointed James D. Bradley, bank examiner, as receiver of the First National bank of Fort Scott, Kan. This action was taken upon receipt of a telegram from President Hornaday asking that a receiver be appointed owing to a run on the bank which has lasted two days. The bank has a capital of $100,000 and, according to the last report, had a surplus of $25,000. Fort Scott, Kan., Nov. 21.-The First National bank of Fort Scott, one of the oldest banks in the state, has closed its doors. The bank had deposits of $702,000. The closing followed a run on the bank. Grant Hornaday, the president, stated that the failure was the result of malicious reports spread by enemies of the bank. He said that the bank's assets exceed the liabilities by $127,000 and that the depositors would be paid in full.

14. November 25, 1908 The Columbus Journal Columbus, NE
Article from The Columbus Journal, November 25, 1908

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disease in western New York has caused the federal and state officials MeN pus quarantine 01 York. The East Buffalo stock were closed. Several children at Danville, Pa., were reported to have contracted the foot and mouth disease, an outbreak the which among cattle caused of states of New York and Pennsylvania eq 01 Fire in a mine at Red Lodge, Mont., caused the death of nine miners. with Scores of others were rescued great The state having rested its case in trial of Ray Lamphere at Laporte, the the defense opened with a stateInd., ment to the jury by Attorney Worden the hearing of several the witnesses and whose evidence tended to disprove supposition that the body of an adult found in the ruins of the farmhouse was that of Mrs. Gunness. Juniors in the Grand Rapids, Mich., Veterinary college struck because two colored students were admitted in accordance with a court ruling. Robbers in Attica, O., held several of citizens at bay, blew open the safe a store and escaped with $6,000. receive 8 'uns SAEP OM1 B er was appointed for the First Nationat bank of Fort Scott, Kan. Lewis Fletcher was hanged at Charlotte, N. C., for the murder of George Boyd. Both were negroes. One man was killed and five were fatally injured by a dynamite explosion in the Simpson coal mine near Brownsville, Pa. The Cairo (III.) city council granted 50-year interurban franchise and the a a 20-year street railway franchise to McKinley syndicate. An interurban line will be built to connect Cairo with Mounds, Mound City and Villa Ridge. Hugh Thompson, a wealthy be- young farmer living near Danville, Ky., came suddenly insane and shot and killed his nephew, Frederick Garrison, aged 18 years. The boy after being shot seriously wounded his uncle. Eileen Orme, a musical comedy actress, was married in London to Hon. Morris Hood, heir of Viscount Bridport. The greatest transaction in leaf tobacco ever made in America was closed at Louisville, Ky., when the Burley Tobacco society sold to the American Tobacco Company the crop of 1906 and part of that of 1907. The American company pays an average of 201/2 cents a pound for the former and 17 cents for the latter, the total being about $14,000,000. Malcolm Stewart, who was wanted in Duluth on a charge of being short $1,700 in his accounts with the Universal Milling Company, leaped head foremost through a lavatory window on the Omaha's Twilight limited and Mrs. escaped. Mary Harbour, accused of the murder of Miss Rose Adams, her foster daughter, was found guilty of murder in the second degree at Sioux City. Ia. John Krauss, said to have been connected with the Pacific State and Sunset Telegraph Company of San Francisco, committed suicide on the steam er Adriatic as it was entering Queens harbbr... UMO1 The balloon Yankee, which sailed from St. Louis in an effort to win the Lahm cup, failed to do so, landing near Tiger, Ga., after traveling 375 J. miles. B. Walton, representing the Corn Products Company, known as the "starch trust," had a most uncomfortable time trying to answer the questions of the house ways and means committee at the tariff revision hearcompany siq Aqm explain 01 pur Sup sold its products much cheaper in England than here. Herbert Grigg, alleged accomplice Cline Wheeler and Walter Zeller 18 Read jo mander the JO up Vineland, N. J., was arrested in PhilaThe delphia. supreme court of South Dakota granted a new trial to Mrs. Emma Kauffman, wife of the Sioux Falls brewer, who was found guilty in the circuit court of manslaughter on a charge of causing the death of a servant through beating. Mrs. Alphia M. Shevalier, convicted of perjury in connection with the Horn will case, was sentenced to five years in prison by Judge Lincoln Frost at Lincoln, Neb. In view of the fact that an interesting event is expected next spring, Queen Wilhelmina of Holland has been forbidden by her physicians to hold her.customary private audiences. The body of Brent Woodall, secretary of the University of Cincinnati, and former newspaper man of that city, was found in the Ohio river at Louisville, Ky. Fifty state convicts employed in the mines at Pratt City, Ala., formed a conspiracy to set No. 3 mine afire and escape during the confusion, and as a result eight of them were burned to death, one is missing and the other 41 were safely locked in the stockade. At an interview between Emperor William and Chancellor von Buelow the emperor made formal promise to his people that in the future he would not act except through the chancellor and his associate ministers. Two warehouses of the Tom Moore

15. November 26, 1908 River Falls Journal River Falls, WI
Article from River Falls Journal, November 26, 1908

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GENERAL NEWS. The lives of more than 500 persons were imperiled in New York harbor when the fruit steamer Admiral Dewey, inward bound from Jamaica, crashed into the steamer Mount Desert, outward bound from Bay Ridge for the fishing banks. There were no casualties. The Democratic national,committee received in all $620,644.77 and spent $619,410.06 during the recent presidential campaign, leaving a balance in hand of $1,234.71. Fire in a mine at Red Lodge, Mont., caused the death of nine miners. Scores of others were rescued with great difficulty. Juniors in the Grand Rapids, Mich., Veterinary college struck because two colored students were admitted in accordance with a court ruling. Robbers in Attica, O., held several citizens at bay, blew open the safe of a store and escaped with $6,000. Herbert Grigg, alleged accomplice of Cline Wheeler and Walter Zeller in the murder of William Read at Vineland, N. J., was arrested in Philadelphia. Following a two days' run, a receiver was appointed for the First Nationat bank of Fort Scott, Kan. Mrs. Alphia M. Shevalier, convicted of perjury in connection with the Horn will case, was sentenced to five years in prison by Judge Lincoln Frost at Lincoln, Neb. Lewis Fletcher was hanged at Charlotte, N. C., for the murder of George Boyd. Both were negroes. The balloon Yankee, which sailed from St. Louis in an effort to win the Lahm cup, failed to do so, landing near Tiger, Gaw after traveling 375 miles.

16. November 27, 1908 The Ely Miner Ely, MN
Article from The Ely Miner, November 27, 1908

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GENERAL NEWS. The lives of more than 500 persons were imperiled in New York harbor when the fruit steamer Admiral Dewey, inward bound from Jamaica, crashed into the steamer Mount Desert, outward bound from Bay Ridge for the fishing banks. There were no casualties. The Democratic national committee received in all $620,644.77 and spent $619,410.06 during the recent presidential campaign, leaving a balance in hand of $1,234.71. Fire in a mine at Red Lodge, Mont., caused the death of nine miners. Scores of others were rescued with great difficulty. Juniors in the Grand Rapids, Mich., Veterinary college struck because two colored students were admitted in accordance with a court ruling. Robbers in Attica, O., held several citizens at bay, blew open the safe of a store and escaped with $6,000. Herbert Grigg, alleged accomplice of Cline Wheeler and Walter Zeller in the murder of William Read at Vineland, N. J., was arrested in Philadelphia. Following a two days' run, a receiver was appointed for the First Nationat bank of Fort Scott, Kan. Mrs. Alphia M. Shevalier, convicted of perjury in connection with the Horn will case, was sentenced to five years in prison by Judge Lincoln Frost at Lincoln, Neb. Lewis Fletcher was hanged at Charlotte, N. C., for the murder of George Boyd. Both were negroes. The balloon Yankee, which sailed from St. Louis in an effort to win the Lahm cup, failed to do so, landing near Tiger, Ga. after traveling 375 miles.

17. November 27, 1908 The Montgomery Tribune Montgomery City, MO
Article from The Montgomery Tribune, November 27, 1908

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FORT SCOTT BANK CLOSED. President Hornaday Asks for Receiver for National Institution. Fort Scott, Kan. - The First National bank of Fort Scott Friday closed its doors upon the orders of President Grant Hornaday, and the Washington authorities have been asked to send a receiver to take charge. The liabilities are stated at $662,000 and book assets are given at $789,000 and a capital stock of $100,000. Hornaday, the president, is reputed to be a millionaire, and says all his property will go to pay losses if necessary. He is conspicuous in Kansas politics.

18. November 27, 1908 Barton County Democrat Great Bend, KS
Article from Barton County Democrat, November 27, 1908

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Fort Scott Bank Fails. The First National bank of which Grant Hornaday IS pr.s.dent, failed to open its doors riday morning. On the door as posted this notice: By order ofthe board of directors, this bank is closed for the protection of all parties concerned. For the past two days it has suffered from a severe run, caused by malicio is reports, b it will pay every debt It OW in full with interest. The news spread through the city within a few minutes after 9 o'clock when the bank was due to open, it was generally known that it had failed. At 10 o'clock President Hornaday made the following statement: "We have suffered from a run for two days, which ran our cash down $60,000, leaving us about $110.000 cash on hand. The community is scared and there was every indication that the run would increase and would probably exhaust all the cash on hand. For the protection of all parties concerned, the board of directors deemed itwise to suspend.

19. December 3, 1908 Iowa County Democrat Mineral Point, WI
Article from Iowa County Democrat, December 3, 1908

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Milwaukee to Beaver Dam. The party is working eastward. The First National bank of Fort Scott, Kansas, one of the oldest banks in the state, closed its doors. The bank had deposits of $702,000. The closing followed a run on the bank when depositors withdrew $56,000. It is stated on what seems good authority that negotiations are pending for the sale of the lines of the Kenosha Electric Railway company, owned by A. C. Frost of Chicago and Milwaukee fame, to John I. Beggs of Milwaukee. Scarcity of water for the boilers has caused a suspension of three washeries and four collieries of the Lehigh Valley Coal company in the Shenandoah district, throwing over 2,000 men and boys out of employment. The city authorities of Chippewa Falls ordered "Old Billy," a horse employed by the fire department for over twenty years, sent to the poorhouse for the remainder of his life. A special pension fund for the support of the horse has been created by the council. Heavy rail shipments of logs are being received by the Marinette saw mills and within a few weeks it is expected that special trains will be run on the Milwaukee and the Wisconsin and Michigan roads to accommodate the traffic. Following close upon the action of the city council of Fond du Lac ordering the removal of all but two telephones in the city hall, and these two to be on a party line, the board of supervisors ordered the removal of half of the telephones in the county buildings. A raise in rates is responsible for the action.

20. December 19, 1908 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 19, 1908

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A Chance for the Depositors. Fort Scott, Kan., Dec. 19.-John Watts, receiver of the failed First National bank here, has announced that the doors of the bank would be opened Monday, December 21, for the filing of the claims of depositors against the institution. The government allows three months for the filing of these claims. The bank was closed November 18. There was on deposit at that time $490,000. The bank has 2,000 depositors.

21. August 14, 1909 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, August 14, 1909

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If you want to buy or sell, see FOX Rooms 3 and 4, Barrett Bldg. BANK'S CAPITAL ASSESSED. Comptroller Calls On Directors of Defunct Fort Scott Institution for $100,000. FORT SCOTT, Kas., Aug. 14.-An assessment of $100,000 was today made by Comptroller of the Currency Lau? rence F. Murray against the capital stock of the defunct First National bank to be applied on the li quidation of the bank's affairs. The capital stock of the institution was $100,000, and the assessment which is $100 on each share, is only one-half of the amount for which each share is liable under the double liability law which holds each stockholder todouble the amount of his holdings. The assessment orders the money paid to Receiver John, Watts on or before September 4. Sixty-three thousand shares of the stock was owned by ten men of this city, all of whom were directors of the institution, and are now defendants in the $200,000 suit filed recently by Receiver Watts alleging negligence in their duties as directors. The remaining stock is owned by Kentucky capitalists.

22. August 30, 1909 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, August 30, 1909

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A BIG LAWSUIT IS FOR SALE. Hornaday Bank Litigation in Fort Scott May Go to Syndicate. Fort Scott, Kan., Aug. 30.-Literally selling a $200,000 lawsuit, filed in the United States court here a month ago against the directors of the First National bank, is the unique feature contemplated in connection with the proposed sale of the bank assets. Negotiations have been under way for the last few days with the sale of the bank assets as the objective point. The attorneys for the depositors have indicated that the terms submitted them, not yet made public, were satisfactory and that the deal probably would be consummated early this week. The unlooked for deal bringing about this big sale probably is without a precedent in Kansas finance. The purchasers, in the event taht the sale is made, will assume the role of plaintiff against the directors instead of Receiver Watts, and the litigation will be threshed out in the federal court minus such features as the individuality of the depositors now give it. It is forecasted that it will be three or four years before the big suit is finally disposed of and this appears a potent factor in the consideration of the sale. The attorneys for the league of depositors will not divulge the names of the probable buyers of the bank assets, but said that they were representative men of Kansas City and New York. A brother of one of the members of the syndicate has been here making some investigations and will submit a report of his findings early next week to the buyers. The Hornaday bank, some of the directors believe, will pay out another small dividend by October 1, should the present process of closing it out be not disarranged by a sale of the assets. It is the belief of these men that another 15 per cent payment will be forthcoming, making a total payment of 65 cents on the dollar. The idea of a sale of the assets, of course, carries with it the understanding that the syndicate behind the purchase would continue the measures now in operation for the full collection of all moneys due on the alleged bad loans, which loans were the cause of the suits filed against the board.