Abilene State Bank - Abilene, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: *
Location: Abilene, Kansas (38.917, -97.214)

Metadata

Model: gpt-5-mini
Short Digest: 82e0ac67

Response Measures

None

Description

Article (1919-04-26) describes the failure of the Abilene State Bank due to bad speculations/shortage by President John A. Flack (embezzlement/insolvency). The piece discusses the bank being more than $100,000 short and that state banks paid an assessment to protect insured depositors under the state guaranty act. The article does not describe a depositor run; it describes a bank failure/closure resulting from bank-specific adverse conduct. No explicit reopening or receiver assignment is mentioned in the article.

Events (1)

1. * Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank president John A. Flack made bad speculations/embezzlement that left the bank over $100,000 short, causing the bank's failure.
Newspaper Excerpt: Made Bad Speculations. Speculations by Flack resulted in the failure of the Abilene bank, which was found to be more than $100,000 short.
Source: newspapers

Newspaper Articles (1)

1. April 26, 1919 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, April 26, 1919

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Article Text

Abilene Banker Pardoned From Prison May Not Leave. John A. Flack Wants To Help Other Prisoners. PAROLE HELD AS EXONERATION Bank Failure Was One of Most Sensational of State. Flack, Caught After Long Pursuit, Admitted His Guilt. John A. Flack, Abilene bank wrecker, may stay in the Kansas state penitentiary on his own motion. Flack was paroled recently by Governor Allen and this action kept secret until several days ago. Now, it is reported, Flack is seriously considering remaining in the penitentiary that he may do personal work among the convicts. For some time Flack has been engaged in prison reform work. He has taken a deep interest in this work and according to state officials may ask permission to remain. In fact, he may be given a position in connection with the prison management. For more than two years Mrs. Flack has been employed at the prison as matron of the women's ward. Both Flack and his wife would remain at the penitentiary under the plan now being considered. Help Other Convicts. "It is quite probable that even tho he has been paroled Flack may ask permission to remain at the prison," said E. W. Hoch, former governor and member of the state board of administration. "Flack has for some time been active in prison reform work. He seems anxious to continue in this work and believes he can be of service to the men now serving sentences. While no final action has been taken, it i3 not at all improbable that he may ask permission to remain at the penitentiary. He has shown unusual ability to do effective work among the men and on several occasions he has indicated a desire to stay once he was given a parole." Flack is said to look upon the parole by Governor Allen as an exoneration of his offense when he was at the head of the Abilene State bank. With the stigma of his crime removed, it is probable that he may go before the state board and the governor and ask to be assigned some special service that he may engage in prison reform work. Made Bad Speculations. f. t Speculations by Flack resulted in e the failure of the Abilene bank. which 1 was found to be more than $100,000 a short. When his bank was wrecked, h Flack fled. After a prolonged pursuit, he was arrested and taken to Dickinson county, where he entered a plea of guilty to three of the twelve counts in the complaint. Efforts were made to secure a parole for Flack during the administrations of Governors Hodges and Capper. Not until Governor Allen entered office, tho, was sufficient pressure brought to bear to win executive clemency. Flack's parole has been bitterly opposed by S members of the Kansas Bankers' association. For the first time in the history of the state the banks of the e state paid an assessment in order to d protect the funds of the Abilene State, which had been insured under the state bank guaranty act.