6630. State Bank (Fort Scott, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 1, 1898*
Location
Fort Scott, Kansas (37.840, -94.708)

Metadata

Model
gpt-5-mini
Short Digest
7d11a26b

Response Measures

None

Description

The State Bank at Fort Scott suspended after a large cashier defalcation (~$48–50,000 by J. R. Colean). A receiver (C. W. Mitchell) was appointed; assets were later auctioned (1900) and extensive litigation followed, indicating the institution remained closed permanently.

Events (4)

1. July 1, 1898* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was compelled to suspend after theft/defalcation of about $48,000–$50,000 by Cashier J. R. Colean.
Newspaper Excerpt
Fort Scott, July 25.-The depositors of the State bank of this place, which was compelled by the theft of $50,000 by Cashier Colean to suspend, had a mass meeting...
Source
newspapers
2. February 9, 1899 Receivership
Newspaper Excerpt
Although the State bank here closed its doors over three years ago, owing over $100,000, there promises to be much more litigation... the claim of Receiver C. W. Mitchell ... was allowed by the court.
Source
newspapers
3. September 17, 1900 Other
Newspaper Excerpt
BANK ASSETS SOLD. Affairs of Ft. Scott Institution Closed Up. Fort Scott, Sept. 17.-The assets of the State bank of this city were sold at auction Saturday by the receiver, upon order of the court.
Source
newspapers
4. September 4, 1901 Other
Newspaper Excerpt
FRAUD IS CHARGED. Big Suit Filed Against Fort Scott Banker... a suit was filed ... against C. W. Mitchell, receiver of the State Bank of this city, who is accused by Mrs. Annie Milne Chase of defrauding her...
Source
newspapers

Newspaper Articles (11)

Article from The Topeka State Journal, July 25, 1898

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Article Text

DEMAND CASH. / Depositors of Defunct Bank at Fort Scott Are Tired Out. Fort Scott, July 25.-The depositors of the State bank of this place, which was compelled by the theft of $50,000 by Cashier Colean to suspend, had a mass meeting and demanded that the court require the receivers to sell all securities and realty at auction and that he proceed against the stockholders under the double liability law to compel them to pay the depositors in full by September 15.


Article from The Topeka State Journal, February 9, 1899

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Article Text

# Big Fees Allowed. Fort Scott, Feb. 9.-Although the State bank here closed its doors over three years ago, owing over $100,000, there promises to be much more litigation before the business of the institution is finally closed up. In the district court Judge Simon allowed the claim of Receiver C. W. Mitchell for $3,300 and that of Perry & Crain, his attorneys, for $1,500, in spite of the protests of the stockholders, who claimed the amounts asked where exorbitant.


Article from The Topeka State Journal, September 17, 1900

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Article Text

BANK ASSETS SOLD. Affairs of Ft. Scott Institution Closed Up. Fort Scott, Sept. 17.-The assets of the State bank of this city were sold at auction Saturday by the receiver, upon order of the court. The bank was organized by Jacksonville and Jerseyville, III., people, and much of the assets consisted of their paper. The judgments and notes sold very cheaply. A $4,500 judgment against Judge Thornton Ware of Chicago, the original president of the bank, sold for $20. Ex-Cashier J. R. Colean, who wrecked the bank by the defalcation of $48,000 now lives in St. Louis. The receiver had secured a judgment against him for the amount of his shortage, and though the court ordered all the assets sold, he refused to offer this judgment, in order to prevent Colean or his friends from buying it in for a pittance. The cashier served five years for the theft.


Article from Evening Times-Republican, February 12, 1901

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Article Text

Brings Suit for $110,000. Fort Scott, Kas., Feb. 12.-D. F. Coon, a wealthy member of the St. Louis Merchants' Exchange and president of the State Bank of this city, was last evening sued by the receiver of that bank for $100,000 for the benefit of the creditors and the stockholders of the bank, among whom are Judge Thornton Ware of Chicago, Judge G. W. Herdman of Jacksonville, Ill., and a number of other prominent Illinoisane. The bank was wrecked by J. R. Co-


Article from Abilene Weekly Reflector, February 14, 1901

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Article Text

Holds President Responsible. Fort Scott, Kan., Feb. 13.-D. F Coon. who was president of the State bank here when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by C. W. Mitchell, the receiver, for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from Phillipsburg Herald, February 21, 1901

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Article Text

# Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalca-tion of its cashier, J. R. Colean, has been sued by the receiver for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from Barton County Democrat, February 22, 1901

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Article Text

# Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by the receiver for $110,000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from The Kinsley Graphic, February 22, 1901

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Article Text

Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by the receiver for $110, 000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from Barbour County Index, February 27, 1901

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Article Text

Holds the President Responsible. D. F. Coon, who was president of the State bank at Fort Scott when it was wrecked by the $50,000 defalcation of its cashier, J. R. Colean, has been sued by the receiver for $110, 000. He holds Coon blamable for the bad condition of the bank's affairs.


Article from The Topeka State Journal, September 4, 1901

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Article Text

FRAUD IS CHARGED. Big Suit Filed Against Fort Scott Banker. Fort Scott, Kan., Sept. 4.-One of the most sensational civil suitsever brought in this county was filed in the United States court yesterday afternoon against C. W. Mitchell, receiver of the State Bank of this city, who is accused by Mrs. Annie Milne Chase, a wealthy Boston woman, of defrauding her by illegal methods out of $9,660. The suit was brought to recover this amount with interest and the petition is filed with sensational allegations against the defendant and Henry McKey, his sonin-law, whom the petition avers was


Article from The Wichita Daily Eagle, September 5, 1901

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Article Text

CHARGED WITH FRAUD. Wealthy Boston Woman Causes Trouble for Ft. Scott Bank Receiver. Fort Scott, Kan., Sept. 4.-One of the most sensational civil suits ever brought in this country was filed in the United States court this afternoon against C. W. Mitchell, receiver of the State bank of this city, who is accused by Mrs. Annie Minnie Chase, a wealthy Boston woman, of defrauding her by illegal methods out of $9,660. The suit was brought to recover this amount with interest and the petition is filed with sensational allegations against the defendant and Henry McKey, his son-in-law, whom the petition avers, was used as a straw man by the defendant to defraud the plaintiff out of the money derived from the sale of some $18,000 worth of Long Island improvement certificates. Mr. Mitchell is accused of having sold the improvement certificates amounting to $18,540, and appropriating the money to his own use and pretended to Mrs. Milne Chase that he had traded them for town lots in the city of La Porte, Texas, valued at $350; and that later he secured possession of them and sold them to Henry McKey, his son-in-law, for $350. so recites that about The petition August 20, the plaintiff in action discovered that Mr. Mitchell had disposed of the certificates to James Kennedy for $9,600 and immediately wrote to the defendant requesting an accounting for the $9,000; that on August 23, 1901, in order to defraud her out of the certificates he falsely and fraudulently represented to her that during the winter of 1901 he had traded the certificates for Texas land and that he had obtained $500 in April of 1901 for the land and that he intended to surprise her with the money when she arrived in Fort Scott. Owing to its sensational nature the case will be hard fought,and the attorneys for Mrs. Chase intimate that they will bring criminal proceedings against. Mitchell. The defendant has resided in this city for years and this is the first time any scandal has been connected with his name, although he has held many positions of trust. Henry McKey who is mentioned in the petition as being a straw man in the alleged fraudulent transaction, was married to Miss Fannie Mitchell on August 21, and is now on his wedding tour. He is employed by a Kansas City wholesale house. Woman's Body Found in Maine. Kittery, Me., Sept 4.-The body of Sarah Waldron, 30 years old, was found today near the old fort at City Point. The woman apparently had been strangled to death and there were indications that the body had been dragged to the spot where it lav.