Leon Exchange Bank (Leon, KS)

Episode Information

Episode UID
5793481691190
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
579348169 hash
Start Date
February 20, 1899
Location
Leon, Kansas (37.690, -96.782)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
eeed46a4349f1af6

Response Measures

None

Events (3)
1. February 20, 1899 Receivership
Newspaper Excerpt
Mr. Breidenthal has notified Attorney General Godard of his action, and steps will be taken to wind up the affairs of the bank.
Source
newspapers
2. February 20, 1899 Suspension
Cause
Government Action
Cause Details
Commissioner revoked the bank's authority after the cashier refused to permit an examination by the state bank examiner.
Newspaper Excerpt
Bank Commissioner Breidenthal has revoked the authority of the Leon. Exchange Bank, a private bank at Leon, Butler county.
Source
newspapers
3. February 19, 1900 Other
Newspaper Excerpt
Among the banks that have settled with the creditors and gone out of liquidation are: ... the Leon Exchange bank.
Source
newspapers

Newspaper Articles (2)
1. February 20, 1899 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 20, 1899

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Article Text

A BANK CLOSED UP By Commissioner Breidenthal For Refusing to Permit Examination. Bank Commissioner Breidenthal has revoked the authority of the Leon. Exchange Bank, a private bank at Leon, Butler county. Mr. Breidenthal sent one of his examiners, Frank Osborn, down there to make the annual examination of the bank, and the cashier, G. H. Kenoyer, refused to allow the examination to be made. Mr. Osborn at once notified Bank Commissioner Breidenthal and the latter revoked the authority of the bank by wire. This was one of the very few banks of the state which has been slow about complying with the banking laws, and appearances indicated that there might be something crooked with regard to its management. The banking law says that "whenever any officer of any bank shall refuse to submit the books, papers and concerns of such bank to the inspection of the commissioner, deputy, or examiner appointed as aforesaid, or shall in any manner obstruct or interfere with him in the discharge of his duty, or refuse to be examined on oath touching the concerns of the bank, the commissioner may revoke the authority of such bank to transact a banking business, and may, with the concurrence of the attorney general, institute proceedings for the appointment of a receiver for such bank to wind up its business." Mr. Breidenthal has notified Attorney General Godard of his action, and steps will be taken to wind up the affairs of the bank. If the bank transacts any further business after its authority is revoked its owners are criminally liable and will be prosecuted under the state laws.

2. February 19, 1900 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 19, 1900

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Article Text

# BANK RECEIVERSHIP. Effort Being Made to Make Them Short and Less Expensive. The state bank commissioner has delivered to the attorney general a list of banks that have been placed in the hands of receivers since the creation of the banking law in 1893. The list includes 62 banks and so far as the bank commissioner has been informed, 50 of them are still in the hands of receivers and it is the purpose of Attorney General Godard to investigate the present condition of the receiverships and to require the receivers to show cause why they have not closed up their trusts and distributed the assets among the creditors. Attorney General Godard is opposed to the expense of long receiverships. He believes that with industry and good business methods receiverships in this day of prosperity and debt paying ought to be wound up speedily. It has been the custom of attorney generals heretofore to neglect this important duty to the depositors of liquidating banks and in consequence the receivers and their paid attorneys have by long delay not only consumed the assets largely, but have kept the funds on deposit in favorite banks and drawn the interest as their personal perquisite. Among the banks that have settled with the creditors and gone out of liquidation are: The Banks of Greensburg, the Bank of Hutchinson; the Northrup Banking Co., of Kansas City, the Pawnee County bank of Larned, B. F. Harpster's bank at Severance, C. H. Sawyer's bank of Scottsville, and the Leon Exchange bank. Of the Bank of Ness City, G. A. Borthwick, receiver, the bank commissioner in his letter to the attorney general, makes this interesting comment: "This receivership is in a peculiar condition. Mr. Borthwick was the cashier and principal owner of the bank. At the time the bank was closed the assets would not have paid 25 cents on the dollar, but Mr. Borthwick is engaged in the milling business and has been doing a profitable business and has applied every dollar of his earnings to the settlement of these claims. The court has permitted him to proceed in his own manner and as a result he is gradually paying off the entire indebtedness of the bank, and, in my judgment, will in time settle every dollar of the indebtedness."