Abilene bank - Abilene, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 12, 1919
Location: Abilene, Kansas (38.917, -97.214)

Metadata

Model: gpt-5-mini
Short Digest: f9611003

Response Measures

None

Description

The article discusses the 'Abilene failure' and references embezzlement/defaulter John A. Flack and existence of a receiver (Fitzpatrick). No run or depositor panic is described; depositors protected by the state guaranty fund. Therefore this is a suspension/closure due to bank-specific malfeasance.

Events (2)

1. July 12, 1919 Receivership

Newspaper Excerpt: Commissioner Wilson and Receiver Fitzpatrick had planned to arrest Broeker after the money was paid.
Source: newspapers

2. July 12, 1919 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Failure linked to embezzlement/defaulter John A. Flack and related malfeasance in the bank; references to alleged defaulters and restitution efforts.
Newspaper Excerpt: As was the case with the Abilene failure... not one of its legitimate depositors will lose a dollar or either principal or interest.
Source: newspapers

Newspaper Articles (1)

1. July 12, 1919 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, July 12, 1919

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Article Text

Kansas Bankers Ask Allen Rather Ticklish Question. Wonder Why He Paroled Abilene Bank Defaulter. SALINA CASE IS DISCUSSED Broeker Refused a HearingW. E. Wilson Is Endorsed. State Committee Favored the Course Hopkins Didn't Take. Friday wasn't exactly a lucky day for R. J. Hopkins, attorney general. The executive committee of the Kansas State Bankers' association came to Topeka to talk over the Salina bank case and endorsed every course which the attorney general had nót taken. Governor Allen WS asked why he paroled John A. Flack and a generally pleasant day was spent in Topeka by some twenty state bankers. In the probe of the Kansas State bank trouble at Salina, there were all manner of sidelights. The committee took the view that since the bankers were paying the bills which might accumulate as a result of the Salina trouble that the general public should leave most of the worrying to the bankers. They endorsed the action of Walter E. Wilson, state bank commissioner, in trying to force alleged defaulters to restore the funds of the bank before arrests were made. Approval was given as to the workings of the bank guaranty fund and demand was made that the law be strengthened The action of the bankers in approving the Wilson plan of handling the situation verified reports that the state bank commissioner had kept his action before committee members. On the other hand the bankers forgot entirely to mention the work of R. J. Hopkins, attorney general. It was Hopkins who had caused the arrest of Felix Broeker in Kansas City, which blocked a payment of $200,000 into the bank fund by Broeker's associates. Comm ssioner Wilson and Receiver Fitzpatrick had planned to arrest Broeker after the money was paid. Why Parole Flack? Governor Allen and Attorney General Hopkins attended the conference of the executive committee. Hopkins did not speak before the committee, altho Governor Allen asserted that he proposed an investigation of the SaTna failure and the method of handling its affairs after the bank commissioner had completed his work. One of the first questions asked of the governor was his reason for paroling John A. Flack, Abilene bank defaulter, without discussing the matter with the Kansas bankers. The governor replied that he thought the conference was to discuss the Salina situation. He said that Flack might be returned if such a course would aid in meeting the Salina trouble. have discussed the Salina bank situation with the bank commissioner several times and I have criticised his actions in it." Governor Allen is reported to have said. "When the bank failed Mr. Wilson had the natural reaction of the bankers. This was to get the money. He did everything he could to get the money back into the bank and the guilty persons who had stolen the money got away. Hanna, Cobb and Macferran. A committee composed of Geo. W Hanna. of Clay Center: S. E. Cobb and William Macferran, of Topeka, will co-operate with the bank commissioner in the handling of the affairs of the Salina bank. They will represent the state banks and banks interested in the guaranty fund. Felix Brocker, arrested recently in connection with the closing of the Salina bank, paid $10.000 to Commissioner Wilson a short time before the committee CC nference. Broeker said he was willing to make a statement before the committee. In executive session, however, the committee refused to hear the alleged bank wreeker. Committee's Statement. A formal statement, issued by the bankers and approving methods of the handling the bank situation, folJows: After a full discussion, we were of the opinion that the bank commissioner acted in absolutely good faith In deferring arrests while the parties concerned in the wreeking of the bank were making restitution of a part or all of the embezzlement. Our faith in the guaranty law is unshaken, and we congratulate the legislature that passed the bill. and also the depositors caught in this, the second failed bank under its protection. As was the case with the Abilene failure. not one of its legitimate depositors will lose a dollar or either principal or interest. and as was the ense at Abilene. not a depositor in the other banks of either city or any other city in the state was in the slightest disturbed or uneasy Notwithstanding this deplorable event, perfect tranquility reigns among depositors of the guaranteed banks of the state, and business goes right on as isual. a strong indication that this law has stabilized the banking business in Kansas, and It would be so if a dozen such failures were to occur tomorrow There is over $25,000,000 back of this guarantee fund. The bankers pay the bill and the people are letting them do the worrying We indorse the law more strongly than ever the we are fully convinced it. needs some amendment