6610. Eureka Bank (Eureka, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 8, 1933
Location
Eureka, Kansas (37.824, -96.289)

Metadata

Model
gpt-5-mini
Short Digest
8c6da2f8

Response Measures

None

Description

The Eureka Bank (Eureka, KS) was ordered closed on August 8, 1933 after it held forged municipal bonds as security for state deposits; a state-appointed receiver was later named (appointment dated October 26, 1933). No run is described in the articles. Cause chosen as bank-specific adverse information (forged bonds), though the immediate closure was effectuated by the state bank commissioner (government action ordered the closing).

Events (2)
1. August 8, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State deposits had been secured by forged municipal bonds (duplicate/forged bonds sold by a bond broker), prompting the banking department/commissioner to order the bank closed.
Newspaper Excerpt
All three banks have been closed since the investigation got under the ceiverships...the Eureka bank, Eureka. closed since August 8.
Source
newspapers
2. October 26, 1933 Receivership
Newspaper Excerpt
The Receiver of The Eureka Bank, Eureka, Kansas, was appointed on October 26, 1933. CHARLES W. JOHNSON, Receiver. (also notice that W. H. Hamer ... is now receiver of the Eureka Bank. Appointment was made ... of Charles W. Johnson, state receiver.)
Source
newspapers

Newspaper Articles (8)
1. August 9, 1933 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, August 9, 1933

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Article Text

BOND FORGERY CLOSES BANKS Kansas Governor Reveals Municipal Swindle municipal bond forgery, which authorities believe may have been a million dollar swindle, caused the closing of three state banks Tuesday and the arrest of one man. Ronald Finney bond broker and son of W. W. Finney, Emporia, Kan banker surrendered after being charged with uttering $20,000 in forged bonds to the National Bank of Gov Alf M. Landon revealed that eight issues of Kansas municipal bonds totaling $329,000 purchased by the state school fund and held in the state treasury vaults had been forged in duplicate, making $658,000 in spurious bonds The three banks whose deposits were secured by the forged bonds, immediately were ordered closed by H W Koeneke state bank commissioner. "for examination and for protection of the depositors They are the Fidelity State and Savings bank of Emporia, of which Finney's father is president, the Eureka bank Eureka and the Farmers State bank. Neosho Falls.

2. September 6, 1933 The Emporia Gazette Emporia, KS
Article from The Emporia Gazette, September 6, 1933

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TO ASK CONTINUANCE urday to attend the Legion convenat Salina, Beck recommended Evans that Mrs. Amelia Tucker should accepted manent bondsman. Mrs. Finney's Beck said he had determined that Mrs. Tucker has many liabilities connecwith the closing the Eureka The bond. however. left the hands Judge Evans and he could be reached today. Beck refused to on the answer Charles Johnson, state receiver. to county attorney's charges Saturday against banking department. Beck criticized banking department its alleged failure protect positors the closed bank. He he urged Johnson to file against Finney's property. thereby all Finney's assets into the bank for liquidation. answer, Johnson said the the $35,900 by Finney's double liability the to this, courts may that through the crimiactions all of Mr. Finproperty would be for losses sustained each bankruptcy proceedwould inevitable. The controversy started Douglas Scott came to Emporia Saturday filed recovery against Finney. asking for proximately $40,000 deposits which held for the EmpoSabetha and Paola telephone companies. Hudson does not think time filing suits against Finney's property for back Emporia day levying against other properties. Saturday. Hudson had attachment papers served 133 shares which Finney owns in the Telephone company. he filed blanket order district court structing Sheriff Dailey attach Finney's property to cover amount of his $40,000 suit. These attachment proceedings Finney from disposing the specified property before the trial the recovery suits. CARDS BUY LEFTY HEISE. St. Louis, Sept. (AP) "Lefty" pitcher has record victories five defeats in the American Association season, purchased St. Louis Cardinals from the Columbus club, was announced Heise native of but his home in Scottsdale. He attended school in played the association and the league.

3. September 7, 1933 The Mercury Manhattan, KS
Article from The Mercury, September 7, 1933

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FORGED TO CERTIFICATES OF VALIDITY OF BONDS Attorney General Says Disclosure Shows That Forged Bonds Transcripts Never Submitted His Office Topeka, Sept. Boynton, states attorney general, said today his signature had been forged documents certifying the validity the spurious bonds placed the state treassecurity state deposits the Finney Emporia and Neosho Falls the Eureka bank, Eureka. disclosure shows," the torney general "that forged bonds their transcripts never to the attorney general's department for The attorney general made his during noon his Fred counsel Gov. Alf Landon in the investigation the million bogus issues of municipal bonds and warrants. Attorney General Boynton said he had the matbut that had reached far the formal under way today. State previously had announced that $400,000 bogus bonds had placed the state treasury curity for state deposits in the delity State Savings bank, Emporia, State bank, Falls, and the Eureka bank, Eureka. All Three Closed All three banks have been closed since the investigation got under the ceiverships. Finney, father Ronald Finney, young bond broker speculator under arrest charges forging municipal bonds selling them. president the Emporia Neosho Falls banks. The elder Finney under arrest charges embezzlement. Attorney General Boynton plained that when bonds filed the state treasury security deposits banks, clerk from the treasurer's office sent the torney general's office with sheet which of the bonds, and description of them. assistant attorney general, Ralston, been delegated the task making examination whether the bonds are valid Check Lists Attorney General Boynton plained that Ralston would check the lists see which were covered by transcripts previously examined, assistant would amine the transcripts which been checked before and found correct. Upon completing his examination, explained. assistant torney general would certifiprinted each setting that had the transcripts found the bond valid. Boynton said, would sign attorney general's name certificates. General Boynton said about the sheets all the bonds the three banks. fact that my writing," he said, of Mr. that whoever forged the signatures miliar the practice of this with the approval bonds. the and they are forged. They neither signature, nor Mr.

4. October 31, 1933 The Emporia Gazette Emporia, KS
Article from The Emporia Gazette, October 31, 1933

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News From Neighboring Towns NEW BANK RECEIVER W. H. Hamer, of Madison. Takes Charge of Eureka Bank. Special to The Gazette: Eureka, Oct. 31-W. H. Hamer. of Madison, is now receiver of the Eureka bank, closed since August 8. Appointment was made the latter part of last week from the office of Charles W. Johnson, state receiver, in Topeka. Previous to his appointment Mr. Hamer had been special deputy bank commissioner here for three weeks. ORGANIZED FOR RELIEF. Committee of Nine Chosen for Chase County Charities Drive. special to The Gazette: Cottonwood Falls, Oct. 31--In response to the recent request of the administration that every county organize a local relief committee for the purpose of giving aid to their local people, Chase county has just organized with committee of nine, composed principally of the mayors of towns and cities of the county. This committee plans to carry on their relief drive at the came time the Red Cross drive is put on. Besides cash contributions, the committee has arranged to accept grain, fruits, poultry and also donations of clothing and other things which might be useful. The nine members of the committee are: Dr. Jacob Hinden, of Strong City; L. L. Chandler, of Cottonwood Falls: Guy Linnens. of Cedar Point; F. L. Grimwood, of Saffordville; A. J. Holmes, of Elmdale: R. C. North, of Matfield Green: Dave Nicholson, of Wonsevu; Mrs. J. W. Cope, of Clempnts; C. A. Blackburn, of Bazaar. WIN CALIFORNIA SUPPORT. Programs for Rockne Memorial Fund Will Be Held. Special to The Gazette: Cottonwood Falls, Oct. 31-The raising of funds for the erection of a memorial in this county to the late Knute Rockne who with seven others was killed in an airplane accident near Bazaar in March of 1931, is gaining sponsors in various parts of the country. The Kansas Rockne Association officers. headed by W. C. Austin, state printer, and others of this city and Emporia, have received word from Los Angeles, Calif., of program that city will put on the evenings of November 10-11 to raise Southern California's quota. The Los Angeles Rockne association will put on two separate programs with a big dinner the night of November 10 at the Ambassador hotel and On the following evening there will be 15-act revue, dancing and other diversions. Stanford and the U. S. C. will play football game on the afternoon of the last day, and the sponsors plan to make the event a celebration for the football fans as well as an Armistice night observation. ANNOUNCE HONOR ROLL. Special to The Gazette: Cedar Point, Oct. 31 This has been a full week in the Cedar Point High school. The honor roll was posted, listing 10 names. They are: Cleo Marie Hankins. Exelee Leeder, Beula Heckendorn and Erma Osjunior; Edward Grimwood, Violet Cox and Dorothy Whitcomb, sophomores; Esther Byram and Junior Brickell, freshmen. Thursday the seniors had charge of the weekly assembly program. Exelee Leeder sang a solo, Cleo Marie Hankins gave reading, and some jokes were read. Friday night the High school onjoyed Halloween party. Miss Irene Hansen. Phyllis Meisinger and Exelee Leeder had charge of the games and Mrs. Bliss managed the serving of refreshments. The grammar room had a Halloween party at the Ora Barb home, south of town, Friday night. member of the C. C. C., stationed at Pittsburg, Kan., visited his parents, Mr. and Mrs. Joseph P. Sterbenz, over the week-end. Bob Mangan, of Nowata, Okla., spent the week-end with Oipe friends. O. B. Tilford presented 2 group of his puplls in recital at the Christian church in Emporia Sunday afternoon. Those from Olpe having part in the program were Gettrude Sterbenz, Fred Voeste, jr., Raymond Brown, Francis Specht and Edmund Bolz. Miss Jane Bitler has returned home after a week's visit with friends in Emporia. Emil Rossillon and John Scheve shipped three cars of cattle to Hansas City Sunday evening. Joseph Bergman, of Lang, visited in Olpe Sunday. Miss Helen Thill. of Emporia, spent Sunday with her parents in Mr. and Mrs. H. P Stuttle and daughter Dorothy, and son. Harold, returned Sunday morning from weeks' visit at the World's fair and with relatives in Illinois. The Aid society entertained their and friends with a social and Halloween party at the M. E. church last Friday evening.

5. January 15, 1934 The Emporia Gazette Emporia, KS
Article from The Emporia Gazette, January 15, 1934

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FINNEY NAMED Three Recovery Suits Filed by Bank Receiver. Finney, of named defendant in covery suits filed in district court today Charles Johnson, Eureka bank reka. suits. filed behalf his Edward total due the bank on notes. One the notes, for executed Finney June on 1933. the petition states. Johnalso asks cent interest per note from maturity date. September 1933. The other involve executed by Guy Denney The Denney executed for June 1932, Wilson for May Finney in reka officials July according petition. Interest of per from the maturity also sought the receiv The Eureka bank closed 1933, by the state banking along with the Finneybanks Emporia Neosho Falls. All three banks found to forged bonds in the state treasury for state deposits. officers said. Mrs. Finney officers the Eureka bank.

6. October 4, 1934 The Eureka Herald Eureka, KS
Article from The Eureka Herald, October 4, 1934

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NOTICE The statutes of Kansas provide that all claims of depositors and other creditors must be filed with the Receiver within one year after the date his appointment, and not filed such claims shall be barred from participation in the of such bank. The Receivestate of The Eureka Bank, Eureka. Kansas, was appointed on October 26, 1933. CHARLES Receiver.

7. October 11, 1934 The Eureka Herald Eureka, KS
Article from The Eureka Herald, October 11, 1934

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NOTICE The statutes of Kansas provide that all claims of depositors and other creditors must be filed with the Receiver within one year after the date of his appointment, and if not filed such claims shall be barred from participation in the estate of such bank. The Receiver of The Eureka Bank, Eureka, Kansas, was appointed on October 26, 1933. CHARLES W. JOHNSON, 14-4 Receiver.

8. October 25, 1934 The Eureka Herald Eureka, KS
Article from The Eureka Herald, October 25, 1934

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(First published October 18, 1934.) sentenced from county for Forgery 2nd Degree, present applicaparole Board next regular meeting Lansing, cember Petitioner C. L. 16p6 NOTICE Car owners who have not purchased their 1934 license plates must do Anyone found driving without the proper 1934 registration will arrested. V. Chief Police. M. D. State Vehicle Commission. Starch From Sweet Potato Sweet may be utilized for making starch. The cast of this starch can be removed by alkaline sulphite solutions. 14-4 NOTICE The statutes of Kansas provide that claims of depositors and other creditors must be filed with the Receiver within one year after the date of his appointment, and not filed claims shall be barred from participation in the estate of bank. The Receivof The Eureka Bank, Eureka, Kansas, was appointed on October 26, 1933. CHARLES W. JOHNSON, Receiver. First published October 18, 1934.) NOTICE OF HEARING PETITION TO SELL REAL ESTATE To all Whom may Heirs at Law and Guardian's AdLitem of Heirs of Catherine G. Burk. deceased. late of county, Kansas. You hereby notified that Fred Burk, Administrator of said deceased. did on the 30th day of August, D., 1934, file petition Probate Court of Greenwood County, Kansas, praying that might be authorized empowered to sell an undivided interest and to following described land for the purpose of paying debts costs of administration of said estate, All of Section Twelve the East Half (E½) of Section Eleven the Northeast (NE%) Ten (10): the East Half of the Southeast Quarter (E½ SE%) Section (10): the South Half (S½) Section Two Norhteast Quarter (NE%) of Section Two the North Half (N½) of Section One the Southwest Quarter Section all the above being Township 24, Range South Half of the Southwest Quarter of Section (36), Township Range Eight (8): and South Half of the Southeast Quarter SE%) Section Thirty-six (36), Township Range Eight (8); Greenwood County, Kansas. And said petition will be heard the office of the Probate Judge said County on the 2nd day November, 1934, at o'clock, said day, which time and place of you all others notified be present and show cause if any you have, why an Order of Sale prayed for should be grantDated this 17th day of OctoA. 1934. FRED A. BURK. Administrator. (First published in The Eureka NOTICE OF SHERIFF'S SALE In the District Court Greenwood The Eureka Building and Loan D. Mullen No. 16156 By virtue order sale issued court Kansas, and directed Tuesday, 13th day November, 1934, front door the Kansas, for public highest and bidder for cash hand the real proThree and Four and 4) Block Greenjudgment the the above entitled FRANK Sheriff Greenwood HOMER Attorney for Plaintiff. (First published in Eureka October In the District Court Greenwood The Prudential Company corporation, Claud otherwise known Matie and Independent Company corporation 16,177 SALE By sale issued above Tuesday, 13th day court house County, Kansas, the highest bidder described estate, The Northeast Quarter North Half Quarter Quarter West Half Quarter Section Southeast Quarter and the South Half the NorthSection Nine East the Meridian: land and the South Quarter the SouthThirtyRange Nine East the Sixth Principal County, Kansas; the manner, first for the folsituate Greenwood County, KanHalf the Northwest the Quarter Quarter: the North Quarter Quarter Half Quarter Section and the South Half the South East Sixth Principal and onethird Quarter Quarter, Quarter the South, Range East Principal Meridian: said sufto pay judgment then Northeast Quarter Section Range land thirteen and rods off the the Southeast Quarter South, East, Kansas, not be and the interest shall had brought: said above sell ment, together offer for subject owned Pipe Greenwood County, Quarter of Section Township Range Sixth Meriand one-third rods wide QuarRange of the Sixth Prinmade for said with for real estate above and subject to Pipe Line Company: not made judgment taxes said real offer parfree from said Line the County, Kansas, Quarter and the Quarter North the Southwest Quarter Quarter Half the Southeast east Six Range Nine the Sixth Principal Meridian: thirteen wide the Section Sixth Principal The above described estate taken property defendand ment, order sale. Sheriff Greenwood County, Kansas. Edward Pedroja, Hunt; Attorneys for Plaintiff.