6639. Bank of Garnett (Garnett, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 1, 1897*
Location
Garnett, Kansas (38.281, -95.242)

Metadata

Model
gpt-5-mini
Short Digest
abd1ee31

Response Measures

None

Description

Articles describe the Bank of Garnett failing/closing in 1897 due to large losses on loans and shrinking asset values, followed by receivership and missing bank books. No contemporaneous bank run is described; the bank is defunct and a receiver was appointed and later replaced.

Events (2)

1. March 1, 1897* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large losses (about $50,000) on Kansas City dealings, bad loans to farmers/feeders and shrinkage in farm product values forced the bank to close; mismanagement cited as well.
Newspaper Excerpt
the Bank of Garnett forced to close its doors
Source
newspapers
2. October 25, 1897 Receivership
Newspaper Excerpt
defunct Bank of Garnett; Judge Briggs has removed the old receiver and appointed George W. Iber to the position. The bank books are missing and a judicial investigation will be ordered to inquire into the matter.
Source
newspapers

Newspaper Articles (5)

Article from Kansas Agitator, March 5, 1897

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Article Text

bank failurers, with best business men and nnected with them: as have been a very sepon the people of Ander Kansas. We hear it stated that banks and must be more careful noney to take more and sufficient to make Anderson county is county, and condenher farm products into Lately, sheep have and returned to mareamery industry is also in the country, show that the agriculturforth alarge amount of energy, and is entitled prices. The interest the business man all depends upon of the farmer, and yet that the basis of the inovement in this county closely watched, and securities taken, so loaners and bankers The writer takes ex. the allegations that the were caused by the county industries, and the Bank of Garnett lost filty thousand dollars ealing in Kansas City the stock of said fifty thousand dollars, its charter. The bank i exist up to the panic it called in its loans t farmers amd feeders of to the amount of sevenof cattle and hogs, values causing a loss hundred to five hundred S At the lowest figure on seventy five ca S I on the market oun of $150,000 to the farm of the Ct u try, thus . terating the working indvstry. Shrinkage in, and the Bank of forced to close its same thing may be said National Bank. About resident of the bank, c ontrolled a large porstock of said bank I i chase of Kansas City I up or lost $80,000; or a $5000 more than its and a still further value caused a continof deposits, and it to close its doors on Either of these banks, lucted its business on


Article from The Topeka State Journal, October 19, 1897

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Article Text

defunct Bank of Garnett, praying that all creditors be enjoined from bringing suit from individual stockholders and that the receiver be ordered to bring suit against all stockholders to recover double liability to be used as assets of the bank for payment of creditors. Judge Riggs granted the injunction and made the order prayed for. This insures the equitable distribution of all liabilities and protects the small depositors.


Article from Abilene Weekly Reflector, October 28, 1897

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Article Text

THE Bank Books Missing. TOPEKA, Kan., Oct. 25.-In an interview here District Judge Briggs said the affairs of the defunct Bank of Garnett were greatly tangled. Judge Briggs has removed the old receiver and appointed George W. Iber to the position. The bank books are missing and a judicial investigation will be ordered to inquire into the matter.


Article from Kansas Agitator, October 29, 1897

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Article Text

BANK BOOKS MISSING ! AFFAIRS OF THE RECEIVER OF THE BANK OF GARNETT IN A TANGLE. A New Receiver Will be Named. SEVERAL PARTIES MAY GO TO JAIL. So Says Judge Riggs, Who Declares that Under Proper Management, the Depositors Would Have been Paid in Full, Instead of On ly a Paltry Five Per Cent.


Article from Kansas Agitator, October 29, 1897

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Article Text

KANSAS AGITATOR, GARNETT, KANSAS THAT BANK OF GARNETT AFFAIR. PEOPLE'S I The special dispatch to the Kansas City Journal (Rep.) which appears on our first page For this week caused a good deal of excitement in J. W. Garnett, among people of all political parties, Fc and the fellows who are trying to force upon JAS. the people a ticket composed of, or backed by, F the (in our opinion) bank-wrecking crew, were H. H jumping sideways all day Monday, and nearly all day Tuesday, endeavoring to make the peoFor Reg ple believe there was nothing whatever in the L. D. telegram. Fred Trigg, the "girl" editor of the For Eagle, who is the Topeka Capital's correR. S. E spondent here, rushed to the telegraph office Fo and sent a dispatch to the Capital, saying DR. R. there was nothing 111 the Journal's relegram; For Commissi that it had been published to defeat the J.J.A Republican ticket; that J. G. Johnson was not removed from the receivership of the bank, but he had resigned, etc. Mr. Champe, the marks that a "certai As the Kansas City Journal is a Republican to elect Herriman paper, and the telegram was sent to that paper give Champe that 11 from Topeka by its regular correspondent, tablish the truth of Freddy must have given his imagination a terTwigg in the Eagle. rible stretch to make it cover that lie. The Eagle dosn't The matter contained in that telegram may so we will not under not have been ALL true, but there is a great referred to. We wil deal of truth in it, as those who have dealt with not make the assertio the bank know. We were of the opinion that ed to pay $1,000 to e Judge Riggs was too shrewd a man to tell the er," and Trigg well public, through an interview, or in any other such assertion. We manner, what he was doing or intended doing, that a Republican (1 as an official. Judges are not in the habit of a gold-bug) boasted doing such things. The fact is, Judge Riggs would be elected con was talking with Bank Commissioner BreidenBrown would spend thal, in the latter's office, and the Journal reown" money in or porter overheard the conversation. He may this boastful gold-bu have colored it up a little and sent it to the help it. We do not Journal. can get $1,000 of ra Judge Riggs did not say he had removed to elect his tool, J Johnson, but he did say he would appoint Geo. the railroad bonds; 1 W. Iler in Johnson's place. Trigg says Johnbuying the tax-pay son resigned. It is no uncommon thing for an different things. B official or receiver to be allowed to resign ingirl items and almar stead of being removed. When it was found itics is too heavy for what extent J. G. Johnson and others with whom he was connected owed the bank, Judge THE fight betwe Riggs told him he was not the man for receiver, Leland goes merrily and it became necessary to appoint another. in the family. Besides, it is of record that Deputy Bank Commissioner Waterman recommended Johnson's BE SURE removal, Any doubting Thomas can see that RIGHT of the nar for himself if he will examine the records. dates, instead of at As to the missing books, we have heard comballot law was chang plaints about this before we read the Journal to your neighbor. telegram. We learn that one merchant here WE are in receip furnished boxes to put the books in. Why Duty, a magazine were they not kept in the vault, where they bethe interest of good longed? Of course, they were produced when forms, municipal, st they saw a probability of going to jail. If is a most excellent there was notning in the Journal dispatch, why accorded a good pati did Judge Riggs come down to Garnett, Tues$1.00 per year. Se day, and appoint Geo. W. Iler to take Johnson's place? THE gang who " In the conversation between Judge Riggs and nett are circulating Bank Commissioner Breidenthal, the latter said Riggs came to Garn that if the affairs of the bank had been proptown denying the K erly managed, the bank would have paid 50 or This is in keeping v 60 per cent. of its debts. It looks evident that circulating Judge little or no effort was ever made to pay the decourt room, trying t positors anything. Everybody knows that, made by the bank-w while John Johnson was the nominal receiver of the bank, John Herriman is the one who VOTER, if our cot pretended to be settling up affairs. It is two refunded, wouldn't years since this bank failed, and only a paltry liable business mai 5 per cent. has been paid. There is no doubt than a man who has that, with the assets of the bank, much more affairs, and was cont could have been paid. Why was it not paid? stitution, as cashier, In less than a year, the receiver of the First of our people have National Bank has paid EIGHTY-FIVE per There would be no cent. John Anderson on tl After the Bank of Garnett started up the second time, thousands of dollars were depositFWEDDY TWIGG, ed in the bank, we are informed. A prominent citizen-a stock man-informs us that he asked Eagle, devoted a go to the AGITATOR an for a small accommodation, and was told that the bank was not loaning a dollar. Where is dently believes that he should tell one so that money? We are aware that there were honorable men lieve it. Even the connected with that bank, who did all in their ers don't believe tha power to have matters properly adjusted, and wants to see a com they promptly paid what they were liable for, there is a chance f (at least we are so informed, and we believe it), knew better, himself and they are not to be blamed for the condition of the bank. and he just lied-tha Now reader do vou want the business affairs