6074. Niotaze State Bank (Niotaze, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 13, 1917
Location
Niotaze, Kansas (37.074, -96.014)

Metadata

Model
gpt-5-mini
Short Digest
d4cc5d3a99a4c0a6

Response Measures

None

Description

Articles report the Niotaze State Bank was closed after an examination found it insolvent due to large shortages by cashier F. J. Erhart; a receiver was expected and property was turned over to the state. No run is mentioned. Later (1919) Erhart sued seeking return of property turned over to the receiver.

Events (3)
1. March 13, 1917 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Examination found nearly $20,000 shortages by cashier F. J. Erhart, loose bookkeeping; bank insolvent and closed by examiner; not under guaranty act.
Newspaper Excerpt
Special examination last week showed that the bank was insolvent...the doors were closed here last week.
Source
newspapers
2. March 20, 1917 Receivership
Newspaper Excerpt
It is probable that a receiver will be appointed for the bank. Property turned over to the state, however, is expected to meet all shortages and to pay the depositors in full. (Topeka State Journal 1917-03-20).
Source
newspapers
3. November 6, 1919 Other
Newspaper Excerpt
Erhart now seeks the return of his money and property amounting to $32,000. He asks an accounting and a judgment against the bank and its directors...Property owned by Erhart had been turned over to the receiver for the bank. (Topeka State Journal 1919-11-06).
Source
newspapers

Newspaper Articles (2)
1. March 20, 1917 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, March 20, 1917

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Article Text

BANK SHORT $20,000? Loose Business Methods Responsible for Closing Niotaze Institution. Shortages of F. J. Erhart, cashier of the Niotaze State bank may aggregate $20,000, according to statements in Topeka today by Examiner Hemphill, who has been in charge of the Chautauqua county bank since its doors were closed here last week. Erhart has not been arrested. He has turned over to the state bank examiner property sufficient to cover all losses, it is believed. Loose methods of bookkeeping and handling banking accounts may have been responsible for the shortages of the bank. The leaks have been growing almost since the establishment of the bank eight years ago. A special examination last week showed that the bank was insolvent. "I don't believe Erhart has profited a dollar by the shortages," said Hemphill. "It was just a loose sysem in a one man bank and I don't think he realized the leaks." Erhart's records and the books of the bank failed to tally. It was found thru an examination by Hemphill that the bank had nearly $30,000 in deposits. Records by the cashier, tho, showed about $9,000 in deposits. It is probable that a receiver will be appointed for the bank. The institution is not under the bank guaranty act. Property turned over to the state, however, is expected to meet all shortages and to pay the despositors in full.

2. November 6, 1919 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 6, 1919

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Article Text

# STATE FIGHTS ERHART Action Follows Former Cashier's Suit Against Bank Officials. The state of Kansas will represent the state banking department in defense of an action brought this week in the Chautauqua county district court by Forest J. Erhart against the Niotaze State bank. Erhart was formerly cashier of the bank and was prosecuted on a charge of wrecking the institution. Property owned by Erhart had been turned over to the receiver for the bank. Twice Erhart was tried on a criminal charge. Each time the jury disagreed. Then the case was dismissed. Erhart now seeks the return of his money and property amounting to $32,000. He asks an accounting and a judgment against the bank and its directors. C. J. Hemphill, a state bank examiner, is named one of the defendants. Because of his relations as a state official, Hemphill will be represented by the attorney general's office.