6498. Citizens State Bank (Blue Rapids, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 6, 1930
Location
Blue Rapids, Kansas (39.682, -96.660)

Metadata

Model
gpt-5-mini
Short Digest
ff2cae97

Response Measures

None

Description

The bank closed after the cashier (Cummings) shot himself and an audit revealed large shortages attributed to juggling/embezzlement. A receiver was appointed to liquidate the bank. No article describes a depositor run prior to suspension; later (1932) court action concerns claims against the defunct bank.

Events (3)
1. May 6, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Audit discovered large shortage (at least $41,767.57) due to juggling of funds by cashier Cummings; his suicide precipitated closure and discovery of losses.
Newspaper Excerpt
Discovery of the shortage ... the Citizens State bank, which closed late Tuesday after Cummings, the bank's cashier, shot and killed himself
Source
newspapers
2. May 10, 1930 Receivership
Newspaper Excerpt
J. G. Chitty ... was named by commissioner Koeneke, to assistant receiver to liquidate the bank. He will assist the state's general bank receiver, W. Johnson.
Source
newspapers
3. July 21, 1932 Other
Newspaper Excerpt
Claim ... now in the hands District Judge Edgar C. Bennett ... the crash of the defunct Citizens State bank of Blue Rapids upon the death Cummings, defaulting cashier May 1930 ... she asks that transaction established common against the remaining bank ... Receiver Denies Liability
Source
newspapers

Newspaper Articles (2)
1. May 10, 1930 The Springfield Press Springfield, MO
Article from The Springfield Press, May 10, 1930

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Article Text

REVEALS BANK'S LOSSES ARE GREAT BLUE RAPIDS, Kan., May Henry W. Koeneke, state bank commissioner, here to investigate the affairs the Citizens State bank, which closed late Tuesday after Cummings, the bank's cashier, shot and killed himself, declared shortage in the closed institution would be at least $41,767.57 and that there is possibility $17,517.57 will be added to this figure. Discovery of the shortage deputy bank examiners has caused all plans to reorganize the institution to be dropped. J. G. Chitty, retired business man of Irving, Kan., was named by commissioner Koeneke, to assistant receiver to liquidate the bank. He will assist the state's general bank receiver, W. Johnson. The loss in the bank is attributed to juggling of funds by Cummings, according to preliminary report made by the bank shot himself short time after bank appeared to make their regular audit,

2. July 21, 1932 The Marysville Advocate Marysville, KS
Article from The Marysville Advocate, July 21, 1932

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Article Text

Stubborn in Hands of Judge Claim of Mrs. Sophia Vawter, Blue Rapids Widow. Submitted to Judge Bennett The claim of Mrs. Sophia Vawter Blue Rapids school teacher, for which went down in the crash of the defunct Citizens State bank of Blue Rapids upon the death Cummings, defaulting cashMay 1930, now in the hands District Judge Edgar C. Bennett following stubbornly contested hearing here Tuesday and Wednesday that lent the money bank upon oral contract which was by written signed by Cummings and by deceased Institution and she asks that transaction established common against the remaining bank Was Guardianship Account The was the effect that Mrs. Vawter was acting guardian of Vawter minors, the children her sister and that they became she made settlement with them out of her personal account and took their investments, the involved ing from time to time, and the amount due her the bank's postotaling when the the written guarantee signed by Cummings and Thompson and was newed each year until 1922, when Thompson resigned the presidency bank according to testimony Thereafter Kendall and Cummings signed the agreement each year. Testimony was also presented to show that the bank paid the interest on the amount involved twice each year until the bank closed Receiver Denies Liability It the bank's receiver's contention that Mrs. Vawter's negotiations were conducted with Cummings, Thompson and Kendall personally and that no liability attaches to the bank The defendants in the action are the State bank of Blue Rapids; G. VanValCummings, deceased, and Edna Kendall, of of W Kendall, deceas- Eight lawyers participated in the Attorneys Gregg and Gregg represent Attorneys Smith Smith and Smith Crane represent the receiv(Please Turn to Last Page)