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Large Advances to Insolvent Salmon Bank Frightens Depositors. RUN STEADY FOR SEVERAL WEEKS Trust Company Takes Over All Assets of the Bank. DEPOSITORS TO BE PAID ON DEMAND Collateral from Salmon Bank that Caused Trouble Now Said to Be of the Highest Grade. KANSAS CITY, Sept. 25. -The Kansas bank. Wiley O. Cox. president, to its doors today, gone liquidation. The City into failed voluntary State open having bank had $168,000 to the bank of Salmon & at Clinton, Mo., which July, depositors for Salmon loaned catching several failed hun- last dred thousand dollars The Kansas City State bank was organized in 1888 and had a capital of $200,000. $4,000,The last statement showed loans of 000; deposits, $4,750,000; surplus, $14,000. The following notice was posted on the door at the opening hour today: This bank has gone into voluntary company. liquidthrough the Fidelity Trust ation Checks drawn against the bank will be com- paid and on presentation by the Fidelity streets. Trust pany O. COX, at Ninth WILEY Walnut President. which The Fidelity Trust company, of is capitalized at $1,000,000, is considered one the the strongest banking institutions in southwest. The Kansas City State bank holds $567,000 of the city's money. Wiley O. Cox, president of the Kansas State bank, is one of the oldest and has best City known men in Missouri. He lived in Missouri since 1868. In 1872 he was at clerk in the First National bank in a Springfield, Mo., coming to Kansas City in 1881. From 1884 to 1888 he was engaged general financial and brokerage business. bank a He organized the Kansas City State in 1888, and has always served as its president. In 1896 he bought the Kansas City sucTimes, a venture that did not prove cessful, and in 1899 he sold the paper. At the Fidelity Trust company's bank bank checks on the Kansas City State There were honored as fast as presented. Charles was no show of commotion and Campbell, vice president of the Fidelity Trust company, stated that all checks drawn on the closed bank would be paid upon demand. Mr. Campbell declined to talk of the the causes leading up to the closing of Kansas City State bank. Statement of President. O. Cox. president of the Kansas Wiley State bank, made the following state= ment City to the Associated Press: retirement of the Kansas City State The active business is voluntary. has not been growing for our son.e own Our we found it hard to hold time and the larger Institutions. In fact. bank business from well it with If the banking business, as the as looks all other as lines, is concentrating into 1 larger condition ones. of the business was directors thory The gone over by the board of it was n oughly conclusion was reached that to and prospering the as it ought to do in order to go not and it was determined be profitable, voluntary liquidation. One plan which our < into have been adopted was to do on deown liquidation. new business This it f might mand and taking proved on paying no very depositors expensive, as would have involved borrowing a large y would have money on the bank's paper force in order of sum to pay of depositors at once, continuing the pracclerks, the office same rent, as If etc., the bank were running Accordtically usual and ordinary way, liquidation in the negotiations looking to the banking inS ingly business through other reof the were begun, and hav finally entirely d arrangement sulted stitutions in the consummation of whereby an the d satisfactory Fidelity Trust company. one taken of our over strong- the 8. est banking the houses, bank and has is paying its dey business in of the ordinary way on demand, If still positors the same as we would be doing in r running. retiring from the banking career business. of in On present, after an active extremely It for the I cannot help feeling failed to many years, that no depositor has ever pred proud checks honored and paid on I have sentation have his at any bank with which been connected Fidelity Trust company volunteered the N The the city treasurer the amount of City to pay funds on deposits in the Kansha with0 city's State bank, but the money was not drawn. Meeting of Directors. decision to liquidate was reached fol- the The a meeting of representatives Investi- of clearing lowing house banks. A thorough of the accounts of the bank had gation made, a carefully prepared statement in 8 been the resources and liabilities, checked for of detail and the collaterals held g every loans appraised by financial experts. This offdone at the request of the bank's the be was who were seeking a way to close dolcials, without placing in jeopardy one since bank of the depositors' money. Ever lar failure of the Salmon & Salmon bank been at the Mo., the bank's business had Cliniton. decline. Many large depositors with- fact on a their accounts because of the d drew the bank had advanced the Salmons that than $200,000 on collateral that is now the more by bankers to be gilt-edged. At 0 said the value of the collateral was problematical time and timid depositors hastened to n their accounts. This caused a heavy in close the resources of the bank, and the avert trouble the the decided upon as drain institution order on to liquidation officers financial of easiest way out of a perplexing
