5804. State Bank (Fort Scott, KS)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
state
Start Date
January 1, 1896*
Location
Fort Scott, Kansas (37.840, -94.708)

Metadata

Model
gpt-5-mini
Short Digest
fba1b8b2d611bf7b

Response Measures

None

Description

The State Bank at Fort Scott was compelled to suspend following a large embezzlement by cashier J.R. Colean (defalcation of roughly $48โ€“52k). A receiver (C. W. Mitchell) was appointed; the institution remained closed (defunct), assets were auctioned by the receiver (1900), and litigation continued. No explicit contemporaneous depositor run is described in the articles, so this is a suspension that resulted in permanent closure with receivership.

Events (4)

1. January 1, 1896* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large defalcation/embezzlement by cashier J. R. (or James R.) Colean (around $48,000โ€“$52,000) that wrecked the bank and forced suspension
Newspaper Excerpt
the State bank of this place, which was compelled by the theft of $50,000 by Cashier Colean to suspend
Source
newspapers
2. January 1, 1898* Receivership
Newspaper Excerpt
Receiver Mitchell, of the State bank at Fort Scott ... has called upon the solvent stockholders to make up $19,000 to pay the balance due depositors and other creditors. Receiver C. W. Mitchell (mentioned in later litigation).
Source
newspapers
3. July 25, 1898 Other
Newspaper Excerpt
Depositors of Defunct Bank at Fort Scott Are Tired Out. ... demand that the court require the receivers to sell all securities and realty ... proceed against the stockholders under the double liability law to compel them to pay the depositors in full by September 15. Receiver Mitchell, of the State bank at Fort Scott, which was wrecked two years ago by a steal of $52,000 by Cashier Colean, has called upon the solvent stockholders to make up $19,000 to pay the balance due depositors and other creditors. (combined reporting)
Source
newspapers
4. September 17, 1900 Other
Newspaper Excerpt
The assets of the State bank of this city were sold at auction Saturday by the receiver, upon order of the court. ... Ex-Cashier J. R. Colean, who wrecked the bank by the defalcation of $48,000 now lives in St. Louis. The cashier served five years for the theft.
Source
newspapers

Newspaper Articles (11)

Article from The Topeka State Journal, July 25, 1898

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Article Text

DEMAND CASH. / Depositors of Defunct Bank at Fort Scott Are Tired Out. Fort Scott, July 25.-The depositors of the State bank of this place, which was compelled by the theft of $50,000 by Cashier Colean to suspend, had a mass meeting and demanded that the court require the receivers to sell all securities and realty at auction and that he proceed against the stockholders under the double liability law to compel them to pay the depositors in full by September 15.


Article from Phillipsburg Herald, December 8, 1898

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Article Text

KANSAS STATE NEWS. At present there are 238 children in the state orphan's home at Atchison. There are now about 120 inmates the industrial school for girls at Be= loit. At Hiawatha the town marshal has orders to arrest all children found out of school during school hours The four-year-old daughter of E. to Wilson, of Coffeyville, was burned death while playing with matches. Olathe's new high school building, a handsome two-story brick, with accommodations for 600 pupils, was dedicated recently. The safe of the United States Express company at Almena, Norton county, was blown open and robbed of over $3,000 in gold. Gov.-elect Stanley and the Wichita Commercial club-are pushing for hibit of corn and its cooked products at the Paris exposilion. Ex-Sheriff J. L. Brower, of Kingman, has been appointed government land inspector. His headquarters will be at Springfield, Mo. Thomas Moody, a postal clerk whose home is in Leavenworth county, and J. L. Bliss, of Ottawa, have been ap pointed post office inspectors. The Kansas State Temperance union is laying plans to defeat any attempt to secure a resubmission resolution at the coming legislative session. Ex-Senator Ed M. Hewins, a former stockman of Chautauqua county,die recently in Douglas, Wyo. His wife is a sister of ex-United States Senator Edmund G. Ross. George E. Cole, state auditor-elect, says the present assessment and taxation laws are wholly inadequate and he is preparing an entirely new law covering the subject. Privates in the Twentieth Kansas at Manila and in the Twenty-third (negro) regiment at Santiago are writing home that they are weary of army life and want to come back. Edward Roe, a stockman of Woodward, was "seeing the sights" in Kansas City the other night when two women who were with him robbed him of a gold watch and $1.0 in cash. A Topeka dispatch said Chairman Riddle, of the populist state committee, would call a state conference of populists at Topeka in January, when the talk of party reorganization will be discussed. The probate judge of Wyandotte county performed a juvenile marriage recently, the contracting parties being Willie McShane and Lizzie Uptmore, each 17 years of age. Their parents consented to the marriage. The news that the two first battal ions of the Twentieth Kansas regiment had reached Manila on the 1st without single death and with very little sickness, was received with great satisfaction throughout Kansas. The charity bazar at Wichita closed with the auction sale at which Gov.elect Stanley served as auctioneer. Among the things sold was a Cuban machete, found on the Santiago bat tlefield and sent to the ladies by Gen. Shafter. Receiver Mitchell, of the State bank at Fort Scott, which was wrecked two years ago by a steal of $52,000 by Cashier Colean, has called upon the solvent stockholders to make up $19, 000 to pay the balance due depositors and other creditors. Representative Campbell, of Fort Scott, is being urged by a constituent to introduce a bill in the next legislature which will exempt the parent o ten children from taxation of every character, with a view of rewarding the parentage of numerous progeny. Lewis Rhoades, a former employe of the Rock Island railroad at Phillipsburg, has sued the company for $10,000 damages because he is no longer able to masticate. Rhoades alleges that last April his head was crushed by a locomotive in such a way as to deform jaws. While returning home from Troy the other night Harry Ellis, a schoolteacher, was held up 11/1 miles north of Troy by two highwaymen and robbed of $70. Ellis was tied and gagged in his buggy and his horses tied to a fence, where he was found next morning almost frozen. The Kansas school fund has received $1,000,000 from borrowers in the past two years. Most of the borrowers were country school districts where the taxes for buildings fall heavily. In some instances the bonds had not matured, but the school fund commis sion accepted the money because they could easily lend it again. A member from Atchison county will introduce a bill in the next legislature making it a criminal offense for any person to knowingly garnishee wages known to be exempt. The present law provides that wages earned by the head of a family, which are necessary to the support of that family, shall be exempt, but there is a class of lawyers who embarrass debtors with garnishment suits until they lose ther positions. The cost of running the various state charitable institutions during October was as follows: Winfield imbecile asylum, $6,120; industrial school for girls at Beloit, $1,413.23; Osawatomie insane asylum, $13,110.95; Topeka in sane asylum, $15,627.79; school for blind at Kansas City, $1,731.50; state reform school at Topeka, $2,459.23: Olathe deaf and dumb asylum, $8, 657.01; soldiers' orphans' home at Atchison, $2,704.71. Henry Reeman and Mary Randall, inmates of the Osborne county poor-


Article from The Kinsley Graphic, December 9, 1898

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Article Text

Bank Stockholders Must Pay. Receiver Mitchell, of the State bank at Fort Scott, which was wrecked two years ago by a steal of $52,000 by Cashier Colean, has called upon the solvent stockholders to make up $19,000 to pay the balance due depositors and other creditors.


Article from The Topeka State Journal, February 9, 1899

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Article Text

# Big Fees Allowed. Fort Scott, Feb. 9.-Although the State bank here closed its doors over three years ago, owing over $100,000, there promises to be much more litigation before the business of the institution is finally closed up. In the district court Judge Simon allowed the claim of Receiver C. W. Mitchell for $3,300 and that of Perry & Crain, his attorneys, for $1,500, in spite of the protests of the stockholders, who claimed the amounts asked where exorbitant.


Article from The Topeka State Journal, February 21, 1899

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Article Text

Colean Denies a Charge. Fort Scott, Feb. 21.-James R. Colean, ex-cashier of the State Bank of this city, who is now in the penitentiary, publishes a statement in this city, written at Lansing, denying that he took a large amount of the bank's money to St. Louis and has it on deposit there now, as is suspected by the bank officials, according to disclosures recently made by Attorney J. H. Crain while testifying as to his claim for legal services for the bank receiver.


Article from The Topeka State Journal, September 17, 1900

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Article Text

BANK ASSETS SOLD. Affairs of Ft. Scott Institution Closed Up. Fort Scott, Sept. 17.-The assets of the State bank of this city were sold at auction Saturday by the receiver, upon order of the court. The bank was organized by Jacksonville and Jerseyville, III., people, and much of the assets consisted of their paper. The judgments and notes sold very cheaply. A $4,500 judgment against Judge Thornton Ware of Chicago, the original president of the bank, sold for $20. Ex-Cashier J. R. Colean, who wrecked the bank by the defalcation of $48,000 now lives in St. Louis. The receiver had secured a judgment against him for the amount of his shortage, and though the court ordered all the assets sold, he refused to offer this judgment, in order to prevent Colean or his friends from buying it in for a pittance. The cashier served five years for the theft.


Article from Abilene Weekly Reflector, February 14, 1901

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Article Text

Holds President Responsible. Fort Scott, Kan., Feb. 13.-D. F Coon. who was president of the State bank here when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by C. W. Mitchell, the receiver, for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from Phillipsburg Herald, February 21, 1901

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Article Text

# Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalca-tion of its cashier, J. R. Colean, has been sued by the receiver for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from Barton County Democrat, February 22, 1901

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Article Text

# Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by the receiver for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from The Topeka State Journal, September 4, 1901

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FRAUD IS CHARGED. Big Suit Filed Against Fort Scott Banker. Fort Scott, Kan., Sept. 4.-One of the most sensational civil suitsever brought in this county was filed in the United States court yesterday afternoon against C. W. Mitchell, receiver of the State Bank of this city, who is accused by Mrs. Annie Milne Chase, a wealthy Boston woman, of defrauding her by illegal methods out of $9,660. The suit was brought to recover this amount with interest and the petition is filed with sensational allegations against the defendant and Henry McKey, his sonin-law, whom the petition avers was


Article from The Wichita Daily Eagle, September 5, 1901

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CHARGED WITH FRAUD. Wealthy Boston Woman Causes Trouble for Ft. Scott Bank Receiver. Fort Scott, Kan., Sept. 4.-One of the most sensational civil suits ever brought in this country was filed in the United States court this afternoon against C. W. Mitchell, receiver of the State bank of this city, who is accused by Mrs. Annie Minnie Chase, a wealthy Boston woman, of defrauding her by illegal methods out of $9,660. The suit was brought to recover this amount with interest and the petition is filed with sensational allegations against the defendant and Henry McKey, his son-in-law, whom the petition avers, was used as a straw man by the defendant to defraud the plaintiff out of the money derived from the sale of some $18,000 worth of Long Island improvement certificates. Mr. Mitchell is accused of having sold the improvement certificates amounting to $18,540, and appropriating the money to his own use and pretended to Mrs. Milne Chase that he had traded them for town lots in the city of La Porte, Texas, valued at $350; and that later he secured possession of them and sold them to Henry McKey, his son-in-law, for $350. so recites that about The petition August 20, the plaintiff in action discovered that Mr. Mitchell had disposed of the certificates to James Kennedy for $9,600 and immediately wrote to the defendant requesting an accounting for the $9,000; that on August 23, 1901, in order to defraud her out of the certificates he falsely and fraudulently represented to her that during the winter of 1901 he had traded the certificates for Texas land and that he had obtained $500 in April of 1901 for the land and that he intended to surprise her with the money when she arrived in Fort Scott. Owing to its sensational nature the case will be hard fought,and the attorneys for Mrs. Chase intimate that they will bring criminal proceedings against. Mitchell. The defendant has resided in this city for years and this is the first time any scandal has been connected with his name, although he has held many positions of trust. Henry McKey who is mentioned in the petition as being a straw man in the alleged fraudulent transaction, was married to Miss Fannie Mitchell on August 21, and is now on his wedding tour. He is employed by a Kansas City wholesale house. Woman's Body Found in Maine. Kittery, Me., Sept 4.-The body of Sarah Waldron, 30 years old, was found today near the old fort at City Point. The woman apparently had been strangled to death and there were indications that the body had been dragged to the spot where it lav.