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THEFT WRECKS A BANK Special to the Jersey City News. FORT SCOTT, Kas., Oct. 14, 1895.-The State Bank of this city suspended today because of the defalcation of Cashier Coleman, who is said to have stolen $30,000.
6629. State Bank (Fort Scott, KS)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- October 14, 1895
- Location
- Fort Scott, Kansas (37.840, -94.708)
Metadata
- Model
- gpt-5-mini
- Short Digest
578de3a5
Response Measures
None
Description
The State Bank of Fort Scott suspended in mid-October 1895 after the cashier J. R. Colean's large defalcations were discovered. A receiver (C. W. Mitchell) was later appointed and the bank is described as 'wrecked' with receivership proceedings and dividend payments underway, indicating permanent closure rather than reopening.
Events (2)
1.
October 14, 1895
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Discovery of large embezzlement/defalcation by cashier J. R. Colean (shortage reported $30,000–$35,000), forcing closure by state bank commissioner.
- Newspaper Excerpt
- This bank is closed subject to the order of the state bank commissioner. Depositors will be paid in full. The failure to open is caused by the defalcation of the cashier.
- Source
- newspapers
2.
November 13, 1895
Receivership
- Newspaper Excerpt
- C. W. Mitchell, receiver of the State bank of this city, which was wrecked by the heavy defalcations of its cashier, J. R. Colean, ... made a statement of the assets and liabilities of the bank, which is most encouraging to the depositors and creditors. (Nov. 13, 1895).
- Source
- newspapers
Newspaper Articles (19)
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Bank Suspended. KANSAS CITY, Oct. 14.-The State bank at Fort Scott closed today by order of the state commissioner. The failure was caused by the cashier defaulting.
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COLEAN BROUGHT BACK. The Defaulting Ft. Scott Cashier Reaches Home-His Shortage about $30,000. FORT SCOTT, Oct. Cashier Colean, of the State bank, who Saturday confessed to having embezzled $13,000, arrived in the city this morning accompanied by his wife and children. He was so weak he had to be assisted to a carriage and was driven to his home where he is now in bed very sick and cannot be seen. Colean is believed to be penniless. State Bank Commissioner Breidenthal is here in charge of the bank, and is now making an examination of the books. It is expected a receiver will be appointed in a few days. Mrs. Colean has surrendered her diamonds, her husband's paid up life insurance of several thousand dollars and all she possesses to the bank. It now appears that Colean's shortage cannot be less than $30,000. Vice President Stewart this morning said he did not think the bank would prosecute Colean, but that Bank Commissioner Breidenthal would cause his arrest when an examination of the institution's affairs is completed. The bank's resources are placed at $172,000 and the deposits at $94,000.
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THE CASHIER STOLE. State Bank of Fort Scott, Kan., Compelled to Close. A CANADIAN BANK SUSPENDS. Big Failures at Omaha and Altoona, Pa.-The Pittsburg Municipal Scandal. Fort Scott, Kan., Oct. 14.-A sensation was created this morning when Vice President J. J. Stewart, of the State bank, posted the following notice: "This bank is closed subject to the order of the state bank commissioner. Depositors will be paid in full. The failure to open is caused by the defalcation of the cashier. A large crowd of excited depositors gathered. Cashier J. R. Coleman has had the utmost confidence of all. He had been cashier since the bank was organized in 1883. Last Wednesday he left town, saying he was going to his old home at Jerseyville, III., where his wife was visiting. Cashier Coleman confessed to President D. F. Coon, of the bank, in St. Louis last Saturday night, that he had lost about $25,000 in stock and bond speculations. The theft had been systematically practiced for over ten years and covered up by manipulation of the books. In a statement issued by the bank today, the officials say the loss will fall wholly on the stockholders, as the assets are amply sufficient to pay all the depositors. When Coleman left Wednesday he had no intention of returning. He was under a specialist's care for nervous trouble. On Friday he wrote to President Coon that he had become a wreck. Coleman's irregularities up to that time had not become known. Coon telegraphed to Coleman to remain in St. Louis, and went on to meet him there. On Saturday night, in the presence of his wife and brotherin-law and President Coon, Coleman made a confession. He broke down and cried piteously.
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COLEAN CAN'T LIVE. The Ft. Scott Defaulting Banker is a Physical Wreck. Is Thought He Can Live but a Short Time. HIS DEFICIT GROWS. It Amounts to $35,000 and May Go Higher. Ten Thousand Dollars of the Best Notes, Missing. KANSAS CITY, Oct. 16.-A special to the Star from Fort Scott says: Cashier Colean's shortage has grown to $35,000, and may go higher yet, Bank Commissioner Breidenthal completed the examination of the State Bank's condition today and reported to the attorney general that the bank is insolvent. It has been found that $10,000 of the best notes held by the bank, and which are almost due, are missing. Colean is in such a mental condition that he can give no account of their disposition. A $6,000 shortage in the St. Louis Bank of Commerce is also reported. Judge Thornton Ware of Chicago, the largest stockholder in the bank and an especial friend of Colean, arrived today and may take an active part in settling the bank's affairs. The depositors are petitioning for the appointment of Charles Nelson, vice president of the Bank of Fort Scott, as receiver for the defunct institution. Bank Commissioner Breidenthal thinks the receiver can make the first payment to depositors within sixty days. Colean's condition is precarious and it is believed he will live but a short time,
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THE FORT SCOTT BANK WRECK. Cashier Coleman Stole $30,000-The Bank Won't Prosecute. Fort Scott. Kan. Oct. 15.-Cashier Coleman. of the State bank. who on Saturday confessed to having embezzled $13,000, arrived in the city this morning, accompanied by his wife and children. He was so weak that he had to be assisted to a carriage, and was driven to his home. where he is now in bed very sick. Coleman is believed to be penniless. State Bank Commissioner Breidenthal is here in charge of the bank. It is expected a receiver will be appointed in a few days. Mrs. Coleman has surrendered her diamonds, her husband's paid-up life Insurance of several thousand dollars, and all else she possesses to the bank It now appears that Coleman's shortage cannot be less than $30,000. Vice President Stewart today said he did not think the bank would prosecute Coleman, but Bank Commissioner Briedenthal would cause his arrest when the examination of the institution's affairs is completed. The back's resources are placed at $172,000. and the deposits at $94,000. Delicious butter-took first prize in Yak-
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A THIEVING CASHIER. The State Bank at Fort Scott, Kan., Forced to suspend. FORT SCOTT, Kan., Oct. 15.-This morning Vice President J. J. Stewart, of the state bank of this city, posted the following notice at the hour of opening: This bank is closed, subject to the order of the state bank commissioner. Depositors will be paid in full. The failure to open is caused by the defalcation of the cashier. J. J. STEWART, Vice President. A large crowd of excited depositors gathered around the bank doors and discussed the situation. The cashier, J. R. Colean, has had the utmost confidence of all. He had been cashier since the bank was organized in 1883. Last Wednesday he left town, saying that he was going to his old home in Jerseyville, III., where his wife is visiting. Colean confessed to D. F. Coon, president of the bank, in the West End hotel in St. Louis last Saturday night that he had lost $25,000 in speculation in stocks and bonds. An investigation showed that the theft had been systematically practiced for a period of over two years, and covered up by a manipulation of the bank books.
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Si ck, but Under Guard FORT SCOTT. Kan., Oct. 17.-J. R. Colean, cashier of the wrecked state bank of this city, whose defalcations caused the bank's suspension, was arrested by Sheriff Allen onjistate warraant charging him with embezzling $9000 in cash from the reserve fund of the bank. Colean is still in a very critical condition and it was impossible to have him moved. A guard Irom the sheriff's office was left at his bedside.
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FORT SCOTT, Kan.-J. R. Colean, cashier of the wrecked state ibank of this city, whose defalcations çaused the bank's suspension, was arrested by Sheriff Allen on a state warrant charging him with embezzling $9,000 in cash from the reserve fund of the bank. Colean is still in a very critical condition and it was impossible to have him moved. A guard from the sheriff's office was left at his bedside.
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A THIEVING CASHIER. The State Bank at Fort Scott, Kan., Forced to Suspend. FORT SCOTT, Kan., Oct. 15.-This morning Vice President J. J. Stewart, of the state bank of this city, posted the following notice at the hour of opening: This bank is closed, subject to the order of the state bank commissioner. Depositors will be paid in full. The failure to open is caused by the defalcation of the cashier. J. J. STEWART, Vice President. A large crowd of excited depositors gathered around the bank doors and discussed the situation. The cashier, J. R. Colean, has had the utmost confidence of all. He had been cashier since the bank was organized in 1883. Last Wednesday he left town, saying that he was going to his old home in Jerseyville, Ill., where his wife is visiting. Colean confessed to D. F. Coon, president of the bank, in the West End hotel in St. Louis last Saturday night that he had lost $25,000 in speculation in stocks and bonds. An investigation showed that the theft had been systematically practiced for a period of over two years, and covered up by a manipulation of the bank books.
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FORT SCOTT CASHIER ARRESTED. J. R. Colean Charged With Embezzling $9,000 In Cash From the Bank, FORT Scott, Kan., Oct. 18.-J R. Colean, cashier of the wrecked state bank of this city whose defalcations caused the bank's suspension, has been arrested by Sheriff Allen on a state warrant charging him with embezzling $9,000 in cash from the reserve fund of the bank. The complaint was sworn out and signed by Vice President J. J. Stewart, J. N. Meade, one of the directors, and F. J. Strode, one of the stockholders and a heavy creditor. Colean is still in a very critical condition and it was impossible to have him moved. A guard from the sheriff's office was left at his bedside. It was at first thought that the bank officials would not prosecute Mr. Colean, but in the last few days rumors have connected the officials with the failure and in order to protect themselves they were forced to swear out a warrant for his arrest. It is very probable that Judge West will appoint a receiver for the bank some time next week, but it is impossible to forecast who will it be. There are many applicants.
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THE NEWS EPITOMIZED Washington Items. Spain backs down and restores diplomatic functions to United States Consul-General Williams of Cuba. Assistant Secretary McAdoo decided to turn over at once to the State of Massachusetts the old receiving ship Minnesota. now lying at New York, without making further repairs to her. Secretary Carlisle and Assistant Secretary Hamlin returned from Boston and resumed their duties at the Treasury Department. Secretary Hoke Smith has taken steps to protect gilsonite deposits in Utah. The Supreme Court of the United States has reassembled. J. Zell Hoover, a well-known Washington character. related how he secured $2100 from Lord Sackville-West, then British Minister to the United States. on a fictitious letter telling him that the Fenians were about to blow him up with dynamite. O. J. Carroll. United States Marshal for the Eastern District of North Carolina, arrived at Washington. having been summoned by Attorney-General Harmon. and had an extended conference with the Attorney-General in regard to the activity of filibustering expeditions in North Carolina waters, supposedly destined for Cuba. A new $10 counterfeit silver certificate, with the portrait of the late Vice-President Hendricks. series of 1891, check letter D. has been discovered. Its general appearance is very deceptive. The note has been "doctored" to give it an aged look. General Miles has leased for his residence in Washington the house at the corner of Twentieth and G streets owned by Medical Director Kindleberger. of the Navy. It is near the War Department and one square above the residence of Secretary Herbert. Spain has been warned from Washington. by her Minister there, it is presumed, that if she doesn't crush the revolt in Cuba forthwith Congress will recognize the insurgents as belligerents. Attoney-General Harmon said that the Corbett-Fitzsimmons fight could not take place on the Hot Springs Government reservation. Domestic. Women delegates to theSocial Purity Congress in Baltimore, Md., visited the slums of that city. Mrs. Miner, living south of Magnolia, Ark., locked her two children. age six and four, in a room while she went to a neighbor's home. While she was gone the house caught fire and the children were cremated. The Rev. Frank Hyatt Smith. of North Cambridge, Mass., was arrested in Denver, Col., accused of sending scurrilous postal cards through the mails. Morris Schoenholz was convicted in New York City of arson, first degree, second offence. making himself liable to a sentence of from forty to eighty years. General Taylor, Commander of the Arkansas State Guard, arrived in Hot Springs to prevent the proposed Corbett-Fitzsimmons prize fight. The Grand Jury of Monroe County, New York. indicted Rev. John M. Fitzgerald, pastor of the Holy Cross Church, Charlotte, for arson in the second degree. The National Association of Bankers held their twenty-first annual session in Atlanta, Ga. P. J. O'Connor, thirty years old, and P. McKellar, twenty-nine years old. were run over by a train at the Lawrence street crossing, Newark, N. J., and killed. The Farmers' National Congress at Atlanta. Ga., declared for the free coinage of silver at the ratio of sixteen to one. Ethel Oliver, a nurse in Seney Hospital, Brooklyn, confessed that she had stolen jewels and money from sister nurses and from patients. At Fort Scott, Kan., the State Bank closed its doors. Its cashier stole $30,000. Major Moreland, City Attorney of Pittsburg, resigned; he and his assistant will be prosecuted criminally for retaining interest on city moneys. The converter in the Frankstown Steel Works of Jones & Laughlin, Pittsburg, Penn., burst, throwing the liquid metal in all directions. Seven men were severely burned, one fatally and perhaps two mortally. Frederick K. Kelham, a young lawyer, was found dead on an elevated road track, New York City. He is supposed to have been killed by falling from a station platform, or by a passing train. Secretary Carlislespoke to the Massachusetts Reform Club, of Boston, Mass., in favor of a "sound currency."
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COLEAN ISN'T CRAZY. The Defaulting Cashier's Mind is SoundA Missing $3,590 Note Found. FORT SCOTT, Oct. 31.-At the instigation of County Attorney Corey, Doctors J. B. Carver and W.S. McDonald today visited J. R. Colean, the defaulting cashier of the State bank, for the purpose of examining into his mental and physical condition. They report that they found him in a very weak condition, caused by nervous prostration, but that his mind was clear and he was improving. It is authoritatively reported that Colean, who has since his arrest been guarded at his home, will be taken to the county jail some time this week. Two of the missing notes amounting to $3,500 were found by Receiver Mitchell today, hidden in Colean's private papers.
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MORE THAN ENOUGH ASSETS. Condition of the Ft. Scott Bank is Encouraging to Creditors. FORT SCOTT, Nov. 13.-C. W. Mitchell, receiver of the State bank of this city, which was wrecked by the heavy defalcations of its cashier, J. R. Colean, who is now a prisoner in the county jail, made a statement of the assets and liabilities of the bank, which is most encouraging to the depositors and creditors. He savs that after a careful personal examination he finds the assets to be $134,341.66, instead of $93,482.70, as reported by Bank Commissioner Breidenthal, and instead of the $109,536.32 liabilities as reported by Breidenthal, Mr. Mitchell's report shows that they are but $98,787,78. Mr. Mitchell stated that $25,000 at the outside would cover the bank and doubtful paper, and after that was deducted from the assets more than enough would be left to cancel the liabilities and pay the cost of settlement without having to assess the stock.
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Colean's Attorney Fees. FORT SCOTT, Dec. 23,-Judge Biddle has filed a motion asking the conrt to require Receiver Mitchell of the State bank, to pay to L. C. Boyle $2,150 which J. R. Colean, the defaulting cashier assigned to him as attorney's fees. Colean claimed to have that amount in the possession of D. F. Coon.
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has fallen heir to a fortune estimated at about one million dollars. The Humane society of Kansas City has appointed a committee to investigate cruelty to animals at the stock yards. Judge J. S. West, who has just re signed as judge of the Sixth district will move to Kansas City, Mo., and practice law. James R. Colvin, who wrecked the State bank at Fort Scott waived a hearing and was remanded to jail under a bond of $10,000. Three young boys, Johnnie Hannon, Thomas Cahill, and Fred Garker were arrested Wednesday for burglarizing the cigar store of S. A. Renz at Kansas City. John Olson had both bones of his leg broken below the knee and his foot badly smashed by being caught in a hay press, at Fort Scott Thursday afternoon. Barre Wyatt a, farmer living near Scranton, was marshal of Bloomington, Ill., early in the fifties. Adlai Stevenson, new vice president, was Wyatt's deputy. C. W. Mitchell, receiver of the defunct State bank at Fort Scott, has commenced payment of the first dividend and all depositors will receive 25 per cent of their deposit. Napoleon Adkins was instantly killed by the bursting of the band wheel on a wood sawing machine at Hiawatha on the 28th. The entire top of his head was blown off. Wellhouse, the big apple raiser of Leayenworth county, has placed seven hundred rabbit traps in his orchards to prevent damage to the trees by the rabbits gnawing off the bark. Two tramps entered the residence of Squire Carelton, a mile north of Devon, and "ransacking the house, stole a silver watch. The squire's son pursued them, and recovered the watch after a struggle. A grocery drummer, who has been selling in Kansas towns for many years says Atchison eats side meat and cat fish, while Lawrence is given over to oat meal and dried prunes. Topeka likes tea and canned goods. J. T. Barker, a farmer near Kansas City, was arrested Thursday, on complaint of a negro peddler. While Barker was applying some bright green paint to his domicile the complaintant wanted to sell him some Christmas goods, and Barker applied a liberal coat of green paint to him. A man named Green from McCune, who got drunk and boisterous at Pittsburg the other day, after he had sobered up went before the county attorney and swore out a warrant for himself for disturbing the peace, was arraigned, pleaded guilty and was fined. His name and his nature are certainly well matched. Fred Myers and family of Lebanon, had an auction and sold out their personal property in order to go to Palestine to take up their abode. These people are of Jewish descent and are preparing to get in on the ground floor when the Jews are called home. Their religious faith is not like that of the Jews of to-day but more like the old first familes and tribes. They join a community there which will hold all property in common and in many other respects copy after the Oneida community in New York. A farmer appeared before county Attorney McWilliams of Chase county last week seeking to swear out a warrant for the arrest of a neighbor whom he charged with stealing a calf. "How much is the calf worth," asked the county attorney. "Five dollars," replied the farmer. "Let's see," argued the officer; "It would cost the county $100 to prosecute the case. Are you after money or revenge?" The man said he wanted the calf or the pay for it. "Well here is five dollars," said MeWilliams, putting out the money. "I guess the county can't afford to take your case." Silk flags were presented in public Thursday night of last week to each class in the public schools of Atchison, by the G. A. R. Sometime ago a wholesale whisky house sent a letter to the postoffice at Seammon, with the instructions to the postmaster that if the party to whom it was addressed could not be found, to hand it to some other responsible person. The postmaster handed it to his wife and thereby learned the contents. Governor E. N. Morrill built and operated the first saw mill in Kansas.
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JUDGE BIDDLE OF FORT SCOTT Judge Biddle of Fort Scott has filed a motion asking the court to require Receiver Mitchell of the State bank, to pay to L. C. Boyle $2,150 which J. R. Colean, the defaulting cashier assigned to him as attorney's fees. Colean claimed to have that amount in the possession of D. F. Coon. A young Oklahoma couple, who had just been married and were on their way north, applied at the police station at Lawrence, for a place to sleep, saying that their money had given out and they wanted some place to stay, and were given it. They were in the best of spirits, and the young man was hopefully looking forward to next spring, when he could get a claim somewhere and begin farming. His bride was in a very happy mood, and entertained the prisoners at the station by singing them a number of songs. They left Tuesday morning for Nebraska. Fred Walters, a stranger, went crazy on the street at Atchison Monday. His hallucination is that he brought a bottle of whisky over from East Atchison and offered an Atchison man a drink and that since then everybody in Atchison has been after him in a threatening manner. The steamer Helen, laden with 170,000 bushels of Kansas corn, sailed from Galveston for Belfast last week. That probably is about all the corn that has been shipped out of Kansas since the new crop. The idea seems to be finally fixed that corn is a good thing to
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Bank Wrecker Colean Sued. FORT SCOTT, Jan. 25.-Receiver C. W. Mitchell of the State bank of this city, which was wrecked by the speculation of Cashier J. R. Colean, today brought suit against Colean for his shortage. The receiver is convinced that Colean did notlose all the money gambling, but that after losing beyond what he had hopes of replacing he took the reserve fund.
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FORT SCOTT-Receiver C. W. Mitchell. of the State bank, yesterday received an old draft that is something of a curiosity. It was for $70 and was issued by the State bank on a New York bank by Cashier Colean about two weeks before the bank closed, yesterday-over a year later the draft turned up with this expressive notation on it: "Bank busted; cashier in pen."