6690. Bank of Highland (Highland, KS)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 4, 1904
Location
Highland, Kansas (39.860, -95.267)

Metadata

Model
gpt-5-mini
Short Digest
92f623c6

Response Measures

Full suspension, Books examined

Other: Receiver appointed; criminal prosecution of cashier; attachments on directors' property.

Description

Cashier J. E. Marcell committed extensive forgeries and losses in wheat speculation; publicity of the forgeries produced a run (articles report the run Monday was the result) and the bank closed in early January 1904. The state bank commissioner took charge and a receiver was later named; Marcell pleaded guilty and was sentenced, and legal actions and attachments followed. Dates drawn from articles: failure referenced as Jan 5, 1904; commissioner in charge reported Jan 7, 1904.

Events (4)

1. January 4, 1904 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery and publicity of extensive forged notes and the cashier's heavy losses in wheat speculation led depositors to withdraw funds.
Measures
None reported other than attempts by outside banks to demand payment and the bank later closing; cashier took up some forged notes with cash but run continued.
Newspaper Excerpt
This transaction became noised about and the run Monday was the result.
Source
newspapers
2. January 5, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Arrest of cashier J. E. Marcell on numerous forgery charges and discovery of forged notes and large shortages forced the bank to close and the state commissioner to intervene.
Newspaper Excerpt
The bank's doors were closed. ... The closing the bank was taken on account of the arrest of J. E. Marcell, the cashier, on the charge of forgery.
Source
newspapers
3. January 7, 1904 Receivership
Newspaper Excerpt
The deputy bank commissioner is now making a list of the assets and liabilities of the bank. ... The bank's doors were closed. Marcell has been a speculator in wheat on the Chicago board of trade. He has lost heavily in wheat of late.
Source
newspapers
4. April 25, 1904 Other
Newspaper Excerpt
Two suits asking for judgments, one aggregating $63,650 and another $12,403.38, were this morning filed in the federal court against J. E. Marcell, the man who is accused of wrecking the Bank of Highland, Kansas.
Source
newspapers

Newspaper Articles (8)

Article from The Topeka State Journal, January 7, 1904

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Article Text

LOST HEAVILY IN WHEAT. Officer of Highland Bank Causes Institution to Suspend. St. Joe, Mo., Jan. 7.-Cashier J. E. Marcell of the Bank of Highland, Kansas, charged with forgery, was released Wednesday on bond, and last night was again arrested on a charge of uttering forged paper which it is said will aggregate $60,000. He is under guard at his home in Highland. The bank's doors were closed. Marcell has been a speculator in wheat on the Chicago board of trade. He has lost heavily in wheat of late. The closing the bank was taken on account of the arrest of J. E. Marcell, the cashier, on the charge of forgery. The paper was forged on B. D. Williams and some other big mule men of that place. The deputy bank commissioner is now making a list of the assets and liabilities of the bank. The institution has a capital of $20,000 and deposits.aggregating $100,000. It is impossible to tell what condition affairs are in at this time. A banker at St. Joseph showed up late Wednesday with guaranteed paper amounting to $40,000 and demanded its payment. Crummer is investigating the matter. He does not know whether the guaranteed paper is forged or genuine. If it should prove to be genuine, Marcell will be caught for violating the state law because he failed to list the guaranteed paper in his statement to the bank commissioner.


Article from The Topeka State Journal, January 9, 1904

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land had no railroad. Up to date he has not succeeded in fetching one in. A railroad into Highland would do a thriving business these days hauling in creditors of Marcell's bank. Marcell is great on display. He likes to stick a feather in his hat and go on dress parade. He was grand marshal of the Fourth of July celebration last year. Widows seemed to be Marcell's special prey. If there was one in this section of the country who was not caught in the bank failure it was because she had no money to deposit. Several of them lost every cent they had. Two or three churches lost their surplus cash. The Christian church, of which Marcell was treasurer, lost $900. However. it has not much room for complaint, as Marcell gave it $1,500 a short time ago for a new building. As evidence of Marcell's boldness, one instance is here given. D. B. Williams, a grain buyer, was a heavy patron of the bank. His office was right across the hall from that of Mr. Overlander, a capitalist. Marcell is said to have forged Williams' name to a lot of paper and sold it to Overlander. Williams and Overlander were regular chums and were almost constantly together, yet Marcell worked his scheme right under their noses. Last week a cattle buyer bought about $8,000 worth of cattle and hogs of farmers near Severance. He gave them checks on the Bank of Highland. He shipped the stock to St. Joseph and sold it. All of his checks are back protested and the farmers are holding the bag. He has failed to put in an appearance up to date. St. Joseph, Atchison and Kansas City banks dealt liberally with the Bank of Highland. Whenever they would demand more security, Marcell would say "certainly," and turn over a few more notes to them. Now it has been found that these notes were forged. Most of the forged notes held by outside banks bear Marcell's guaranty as cashier of the bank. This binds the bank. Wednesday forenoon Deputy Bank Commissioner Crummer drove from Denton to Highland. A mule buyer, who was a heavy creditor of the bank started at the same time. When they reached Severance, Marcell had just arrived from Troy. He got a team and the three rigs raced clear to Highland. Marcell beat Crummer there and was fixing up some accounts when the latter arrived. The mule buyer was third in the race. Crummer stopped all proceedings when he reached the bank and took charge of everything. Marcell showed his nerve when he started for the Troy jail accompanied by the sheriff. Without any display et feeling, he kissed his wife and children and lighted a cigarette and started off As the buggy started his little boy threw him a kiss and told him to come back soon. The forgeries were discovered by accident. The Atchison Savings bank, which held three $10,000 notes of Hutt & Shonyo, mule dealers at Highland, sent an inspector to look after the paper. The inspector found that two o the notes were forgeries. He went straight to Marcell's bank. Marcell said there had been some mistake made and without quivering, went to the safe, go $30,000 in cash and took up all three notes. This transaction became noised about and the run Monday was the result. It is now estimated that the amount of forged notes will reach a quarter of a million dollars. Representatives of va rious banks are appearing daily with Marcell's forged notes. A representa tive from Atchison brought a bundle amounting to $55,000, and another from the Mechanics' bank of St. Louis ar rived today with an even larger budget Nearly all the forged paper is held by parties away from Highland, yet a little was floated even here at home The persons whose signatures have been used most frequently on the forged notes, and the approximate amounts SO far turned up agains them ,are: B. D. Williams, $90,000; Hut & Shonyo, $40,000; Bottiger & Hutt $30,000; Mrs. V. M. Johnson, $35,000; o D. and G. W. Moore, $7,000; J. H Lynds, $15,000; Cas Winkler, $13,000; W H. Noble, $1,400; W. R. Gilmore, $1,400 H. C. Pierce and J. B. Muzum, $2,000 W. S. Gaust, $1,000; Mr. and Mrs. J F. Bottiger, $2,000. B. D. Williams and Hutt & Shony are mule firms doing an extensive bus iness. Bottiger & Hutt were mule buyers but have dissolved partnership Mrs. V. M. Johnson is the widow o the late Highland banker, J. P. John


Article from Meade County News, January 14, 1904

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education nau soncien VLDO for through his brother, L. H. Rose, the former's re-appointment sapublic school teacher. The money was refused, it was stated and Rose failed to receive the appointment. PRICE DOUBLED.- A half section farm purchased eight years ago for $7,000 was sold at Abilene for $14,000 cash. It is located east of town on the bottom lands and has during all the eight years paid a big rent. It was bought by northeastern Kansas farmers. They pay large prices and usually cash. NOT ENCOURAGING.-The wheat in Sumner county is beginning to suffer for rain. In the southeastern townships great damage is reported from the Hessian fly, especially to the soft wheat. The crop ontlook for next seasou is net encouraging. WATER FRANCHISE.-The water company of Lawrence has secured an extension of its charter to enable to raise money to make improvements or its plant. The old franchise expiresi 1907, and the extension is for 20 years more. TREATED FOR PNEUMONIA.- J. Woods was shot at Chanute while trying to enter a house. Bullets entered lungs. He was examined by physicians but, as he concealed his wounds. the doctors treated him for pneumonia. COMMERCIAL INTERESTS. - Secretary Resing has issued the official call for the second annual convention of the Kansas federation of commercial interests. The convention will be held in Topeka January 29. CASHIER ARRESTED.- E. Marcell, cashier of the Bank of Highland, has been arrested charged with forging notes to the amount of $30,000. The bank is now in charge of the state bank commissioner. NEW FREIGHT HOUSE.-A building permit has been taken out by theSanta Fe railway for the construction of the new $29,500 freight depot and office building at Topeka. The building is under contract. DORRS OPEN OUTWARD.- The Emporia city school board adopted a resolution to have fire drills in all the schools once a week, and will have all school house doors made to open outward. GLASS WORKS RESUME. -The Midland Glass company has resumed work at Independence after being idle eight months. Glass blowers were brought from Indiana to take the place of strikers. FELL 80 FEET.-George Dobson of Galena, a miner, fell 80 feet to the bottom of the shaft where he was working into three feet of water and was not killed. RESULT OF FLOOD.-Joseph Seagrave, a farmer near Edwardsville, lost heavily in the flood, and has since become despondent and has at last shot himself. DIED AT 107.-Mrs. Elizabeth McLean, who has for the last twentythree years lived with her children at Scammon, died at the age of 107 years. MILL ROBBED.-While the Caldwell mill was running burglars blew open exThe the safe and took about $90. plosion was not heard. PAYING TAXES.-On January 8, the treasurer of Sedgwick county wrote receipts for $80,000 for taxes and received the cash. WANT A HOTEL.-The 3,000 people of La Harpe, Allen county, are strenuously pleading for a hotel, having none now. CARE OF Poor.-Cowley county's poor cost the taxpayer $428 less in 1903 than id 1902. SOLD STOLEN STAMPS.-The federal authorities are looking for a woman who has been offering stumps for sale to merchants and others about Topeka. She is believed to be disposing of stamps stolen from a postoffice in the northern part of the state. EXPOSITION STAMPS.-Several of the suggestions of W. P. Pierce, a Salina merchant, have been accepted for designs on the series of postage stamps to be issued by the government in commemoration of the Louisiana Purchase exposition. DAYHOFF IGNORED.-Superintendent Dayhoff wished to have the county superintendents adopt a course of study as prescribed and arranged by him. The county superintendents refused to consider the proposition and criticised Dayhoff's scheme on the ground that he had copied the course of study used in Illinois and had the books in which the course of study was prescribed, printed in Illinois, and that he wished to sell them to county superintendents and teachers in Kansas at 15 cents each. ONLY THREE T.T.-Sidney Clarke was the only representative of Kansas about 40 years ago. There are only three present members of congress who were members when Clarke was. They are Senator Hoar, John H. Ketchum, of New York, and W. H. Bingham, of Philadelphia. Go WITH CATTLE.-Walter Darlington and L. M. Newbury have started two carloads of cattle for London, England, from Atchison. Several young men accompanied the cattle and worked for their fare. SERVED IN THREE WARS.-On the


Article from Free Press, January 16, 1904

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through his brother, H. Rose, for the former's re-appointment asapublic school teacher. The money was refused, it was stated and Rose failed to receive the appointment. PRICE DOUBLED.-A half section farm purchased eight years ago for $7,000 was sold at Abilene for $14,000 cash. It is located east of town on the bottom lands and has during all the eight years paid a big rent. It was bought by northeastern Kansas farmers. They pay large prices and usually cash. CO-OPERATIVE COMPANY.-The farmers of the vicinity of Navarre, sixteen miles south of Abilene, have united and bought the general merchandise store there. They have formed a cooperative company and will conduct the business themselves after March 1. NOT ENCOURAGING.-The wheat in Sumner county is beginning to suffer for rain. In the southeastern townships great damage is reported from the Hessian fly, especially to the soft wheat. The crop ontlook for next seasou is not encouraging. WATER FRANCHISE.-The water company of Lawrence has secured an extension of its charter to enable it to raise money to make improvements on its plant. The old franchise expires in 1907, and the extension is for 20 years more. TREATED FOR PNEUMONIA.-A. J. Woods was shot at Chanute while trying to enter a house. Bullets entered his lungs. He was examined by physicians but, as heconcealed wounds, the doctors treated him forpneumonia. COMMERCIAL INTERESTS. Secretary Resing has issued the official call for the second annual convention of the Kansas federation of commercial interests. The convention will be held in Topeka January 29. Gov. STANLEY'S SoN.-Harry Stanley, son of ex-Governor Stanley, was badly burned upon the face and hands by a gas explosion in his father's house in Wichita. The burns are not considered serious. AGED 95 YEARS-Roswell W. Acers, of Iola, is dead at the age of 95 years. He drilled the first gas well in Kansas in 1872 and lighted and heated his hotel with gas many years before other gas wells were made. CASHIER ARRESTED.-J. E. Marcell, cashier of the Bank of Highland, has been arrested charged with forging notes to the amount of $30,000. The bank is now in charge of the state bank commissioner. NEW FREIGHT HOUSE.-A building permit has been taken out by the Santa Fe railway for the construction of the new $29,500 freight depot and office building at Topeka. The building is under contract. FELL 80 FEET.-George Dobson of Galena, a miner, fell 80 feet to the bottom of the shaft where he was working into three feet of water and was not killed. RESULT OF FLOOD.-Joseph Seagrave, a farmer near Edwardsville, lost heavily in the flood, and has since become despondent and has at last shot himself. DIED"AT 107.-Mrs. Elizabeth McLean, who has for the last twentythree years lived with her children at Scammon. died at the age of 107 years. MILL ROBBED.-While the Caldwell mill was running burglars blew open the safe and took about $90. The explosion was not heard. CARE OF PooR.-Cowley countyspoor cost the taxpayer $428 less in 1903 than id 1902. FIRST IN 10 YEARS.-A grocer of Leavenworth and his wife are under arrest for selling liquor continuously to a railroad man, until he lost his position. His wife had many times served notice upon the grocer to stop selling liquor to her husband, but he persisted. This is the first arrest in Leavenworth for ten years for selling liquor. WANT A HOTEL.-The 3,000 people of La Harpe, Allen county, are strenuously pleading for a hotel, having none now. SOLD STOLEN STAMPS.-The federal authorities are looking for a woman who has been offering stumps for sale to merchants and others about Topeka. She is believed to be disposing of stamps stolen from a postoffice in the northern part of the state. EXPOSITION STAMPS.-Several of the suggestions of W.P. Pierce, a Salina merchant, have been accepted for designs on the series of postage stamps to be issued by the government in commemoration of the Louisiana Purchase exposition. FOR HIS BABY.-Dennis Mahoney, a blacksmith of Neosho Rapids, with his wife and child. were on the cars going home. He got off to get some candy for the child and was trying to get on the moving train and was thrown


Article from The Topeka State Journal, April 25, 1904

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MARCELL SUITS FILED. Over $76,000 Involved in Federal Court Actions. Two suits asking for judgments, one aggregating $63,650 and another $12,403.38, were this morning filed in the federal court against J. E. Marcell, the man who is accused of wrecking the Bank of Highland, Kansas. The first is brought by the First National bank of St. Joseph, for guaranteeing paper for Marcell, and the second by the Merchants' National Bank of St. Louis on promissory notes. The Merchants' bank has alsoanother suit against Marcell, one for $40,000 on the same cause. It was filed at Leavenworth some time ago. Marcell is in jail at Troy. His codefendants in the suits brought this morning are Charles V. Norman, receiver; H. Dillon, president; C. L. Marcell, cashier, and G. W. Overlander, director.


Article from The Topeka State Journal, May 5, 1904

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THE SHORTAGE OF MARCELL. Claims Against Bank of Highland Aggregate $230,000. Troy, Kan., May 5.-In the bankruptcy hearing of J. E. Marcell, the defaulting cashier of the Bank of Highland, held here last Wednesday, claims of creditors aggregating $176,000 were allowed. The principal creditors are Merchants' National bank of St. Louis, $52,470; First National bank of Buchanan county, St. Joseph, $60,900; National bank of St. Joseph, $15,000; Bank of Highland, $12,000; City National bank of Kansas City, $29,200. Other known claims will raise the total to over $230,000. The assets are $2,200 in cash and about $30,000 worth of real estate claimed by the Bank of Highland. The ownership of this will doubtless be litigated, as was indicated today when the referee, J. G. Slonecker of Topeka, held that C. V. Norman, the receiver of the bank, had left town to avoid producing the bank books, and his attorney, A. Bowers, was told by the referee that he would be cited before Judge Pollock for contempt in attempting to obstruct the process of the court in getting the receiver away. John C. Missee, a retired farmer of Highland, was elected trustee and required to give a bond of $10,000.


Article from The Topeka State Journal, May 26, 1904

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KANSAS NEWS. J. E. Marcell, Former Cashier of the Highland Bank, Talks Says He Has Done Everything in His Power to Settle. CRITICISES DIRECTORS Thinks They Might Have Aided a Settlement ifSo Disposed. Tells of Some Matters Heretofore Secret to the Public. Troy, May 26.-J. E. Marcell, former cashier of the defunct bank of Highland, was seen by a correspondent and talked freely, which he has before refused to do, since his arrest. Although he has been confined in the jail since January 10, he is looking well. In his conversation he said: "Prior to this I have refrained from talking because my attorneys cautioned me to keep still. I have done everything in my knowledge and power to assist the receiver of the bank and his attorney to ferret out the mysteries connected with the wrecking of the bank, and, if the officers and directors had shown a similar disposition no one would be kept in suspense as to the real conditions. I deeded all of my property over to the directors immediately after my arrest, and if they had been so disposed with that $50,000 they could have put the bank in good condition. "I sincerely hope that the depositors will be paid off at a good percentage, and I believe that all of them will admit that I have done all that I could to save them since my trouble began." Prior to this Marcell had never stated where he spent the night after he gave bond and was released, when first arrested. Today he admitted to having spent the night in the bank fixing the books. "Who was with you during the night?" asked the correspondent. 'Howard Dillon, H. C. Marker and G. W. Overlander," he replied. "When did you leave the bank?" "At 3:30 in the morning,' was his answer, "and the other men were there until later in the morning. I left in time to catch the Grand Island train at Severance for St. Joe, and I presume that I'll never be cognizant of what took place after my departure for the train.' By the decision of an interplea in the case of the state versus the Bank of Highland, on trial in the district court, Judge Stuart set $7,962.85 aside as a trust fund, and ordered the receiver of the bank to pay that sum to R. H. Larzelere, treasure of Doniphan county. From the evidence it developed that for several weeks prior to the failure of the bank, on January 5, T. J. Armstrong had a list of the taxpayers around the vicinity of Highland and had been collecting their taxes for them, to be remitted to the county treasurer. As this money was collected by him, he deposited it in the Bank of Highland and, on December 19, last, he bought a cashier's check for the above sum and sent it to the treasurer. By the treasurer it was deposited in the Bank of Troy, and by it sent to its correspondent in St. Joseph, which returned it to the Bank of Highland and received thereafter another draft on a St. Joseph bank. About this time the Highland bank failed and the draft went to protest, the transaction was retraced and the Troy bank checked off the credit formerly given to the treasurer. In the meantime, the treasurer had sent the various taxpayers receipts for their taxes, and had even remitted to. Armstrong a small balance that he had overpaid. The question as to who stood to lose this neat sum has been a puzzle to those interested in the facts. Recently four of the taxpayers, headed by Chas. E. Miller, former county commissioner, filed the interplea, asking that sufficient funds in the hands of the receiver of the bank be set apart to pay the taxes in full, and the order followed as stated. The other taxpayers, about 180 in number, neglected to take any steps in the matter, for fear of prejudicing their rights, and to the four interpleaders is given much credit for risking the payment of their entire tax again in order to bring the matter to a focus. However, the whole number will profit by the order; the treasurer will get the county's money in full without question and the banks here and in St. Joseph will be relieved. In giving his decision the court decided that the Bank of Highland knew of the purpose for which the money was deposited by Armstrong and this


Article from The Topeka State Journal, June 2, 1904

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KANSAS NEWS. A St. Joseph Bank Is After the Highland Bank Directors. Attach Property of Ex-Officials in Sum of $63,000. BOND OF $80,000 GIVEN. Residence of Marcell's Fatherin-Law Is Involved. Other Property a Drug Store and the Odd Fellows Hall. Troy, Kan., June 2.-An attachment was run on all the property of the directors of the Bank of Highland in the sum of $63,000, by the First National bank of St. Joseph, Mo., late Wednesday. The bank gave a bond of $80,000 and attached the following property: Six hundred and forty acres of land and the Highland residence of G. W. Overlander; 340 acres of land and the residence of Harrison Dillon, president of the bank and father-in-law of J. E. Marcell, and the two-story building occupied by the Odd Fellows' hall and L. V. Morton's drug store. The Bank of Highland was wrecked in December by J. E. Marcell, the cashier. Marcell pleaded guilty on five counts to forgery and was sentenced to the penitentiary. The property was appraised at $70,500 by W. S. Faust. C. E. Miller, F. W. Foxell and McGrath. The attachment was levied by a deputy from the office of W. H. Mackey, jr., United States marshal for Kansas.