6722. Commercial National Bank (Independence, KS)

View Charter #4499 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4499
Charter Number
4499
Start Date
March 13, 1930
Location
Independence, Kansas (37.224, -95.708)

Metadata

Model
gpt-5-mini
Short Digest
ecbfb9c9

Response Measures

None

Receivership Details

Depositor recovery rate
76.4%
Date receivership started
1930-03-14
Date receivership terminated
1935-05-28
OCC cause of failure
Governance
Share of assets assessed as good
66.5%
Share of assets assessed as doubtful
24.4%
Share of assets assessed as worthless
9.1%

Description

The Commercial National Bank of Independence, KS suspended in mid-March 1930 after national bank examiners found a shortage; the bank did not reopen and a receiver (M. E. Murray) was appointed/handled assets. Subsequent federal embezzlement charges were filed against President George T. Guernsey. Multiple articles report offers to reorganize/reopen (Harry Sinclair) but the bank remained closed and entered receivership. Dates derived from article dates (closure reported as March 13, 1930; transfer/receiver reported March 22 and late April actions on receiver).

Events (6)
1. January 14, 1891 Chartered
Source
historical_nic
2. March 13, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
National bank examiners found a shortage in the books of President George T. Guernsey; later alleged embezzlement and large shortages (~$183,000 cited in charges; total losses reported $500,000 to $1,000,000).
Newspaper Excerpt
Commercial National bank closed March by order of its board of directors after national bank examiners had found irregularities
Source
newspapers
3. March 14, 1930 Receivership
Source
historical_nic
4. March 22, 1930 Other
Newspaper Excerpt
transfer by George T. Guernsey, Sr., to M. E. Murray, receiver, of certain property ... and attempts to reorganize the Commercial National Bank which suspended business last week when the books ... revealed shortage.
Source
newspapers
5. April 29, 1930 Other
Newspaper Excerpt
George Guernsey ... pleaded not guilty ... on charge of embezzlement ... in connection with the closing of the Commercial National Bank
Source
newspapers
6. April 29, 1930 Receivership
Newspaper Excerpt
state treasury board today granted receiver the defunct Commercial National Bank of Independence ... given 30 days which dispose bonds valued deposited the bank with the state and the Kansas fund
Source
newspapers

Newspaper Articles (13)
1. March 17, 1930 The Fresno Bee Fresno, CA
Article from The Fresno Bee, March 17, 1930

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Article Text

PROUD FAMILY IN KANSAS BROKEN IN BANK FAILURE Guernseys Of Independence Lose Fortune, Examiners Seek Reorganization Plan INDEPENDENCE (Kan March glory of the house of Guernsey which built bank, gov. sion in this Middle West oll center rested with group of men who examine bank Meanwhile George Guernsey, Sr. president of the Commercial National Bank here, and his wife whose social activity brought her to the presidency of the Daughters of the American during the world their fortunes collapse in the failure the bank While the captain finance and his commander of clubs who years ago split the town wide open in her fight over her command of the French language were hoping realize their dictum that "the Guernseys never run. a group of bank examiners and tried to breathe new life into Guernsey's The bank has falled. the first such failure In the history Inde pendence. and the first failure in the history of the Loses Near Million "Guernsey Bank was known with losses reported variously $500,000 to $1,000,000. proposal that deposit ors. who had several millions in the bank, accept 25 per cent loss was said to be the keynote of the bank directors This was not confirmed and "dollar for dollar" reorganization plans proposed by W S. Fitzpatrick head of the Prairle Oil and Gas Comhad large deposits in the bank, were not definitely spurned. The Guernseys have promised to sacrifice everything to satisfy debositors. If they do, will not be the first time the banker And his wife have triumphed over difficult The family feud harkens back to trip abroad in 1897. when Mrs. Guernsey was traveling France with her friend Mrs. Adolph Stich wife of then friendly rival banker of Their talk turned to their lug gage. Mrs. Guernsev spoke of It as "In baggage Mrs. her said the proper form was "le haggage in good French Mrs Guernsey suggested Mrs. Stich mind her own promunciation. They came home separately For twenty years thereafter. the women never spoke Conflicting invitations for their rival social funetions smlit the town into factions. The husbands entered the hattle Stich was elected mavor. Guernsev's faction put through the commission form of government. So If went until 1917. when. after figure as the A. R. leader. the familles were brought together seain by the attendance of Louise Rtich, daughter, at Guernsey lawn

2. March 22, 1930 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, March 22, 1930

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Article Text

SINCLAIR AIDS HOME BANK Offers Million to Cover Heavy Shortage. Kas., March who rose from drug clerk here to aire oil man, was reported today have offered part his millions reopen bank, closed when shortage was found by national bank examiners. Sinclair's offer, said to be 000, reported have been made Fitzpatrick, chairman of board of the Prairie Oil and Gas who has been active in Company, attempts reorganize the Commercial National Bank, which suspended business last week when the books of George Guernsey, president and financial pillar of the town, revealed shortage. Prevented Panic. Interest of the Sinclair family in the welfare of their former home first was revealed the community day after the Commercial National Bank closed. when Earl brother of Harry, telegraphed $500,000 deposit Citizens Bank, the other large bank in town, safety precaution in the event citizens of Independence became panicky. Harry Sinclair's reported offer comes on the heels of the transfer George Guernsey, Sr., to Murray, to certain in 4,000 acre tract which situated famous where entertained his friends lavishly, and othholdings, said by George Guernsey, Jr., of the closed National, to worth $175,000.

3. March 22, 1930 Daily Republican-Register Mount Carmel, IL
Article from Daily Republican-Register, March 22, 1930

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Article Text

SINCLAIR WOULD OPEN A BANK IN OLD HOME TOWN (United Press) Kas., March Sinclair. who rose from drug clerk to multioil man, reported today to have of his to reopen shortage found by National bank examin- Sinclair's offer. said to be $1. was have been made chairman the board of the Prairie Oil Gas company. who has been active attempts réorganize the Commercia tional bank, suspended business last week when the books of Guernsey, president and financial pillar the town, revealed Interest of the Sinclair family in the welfare their former home community first was revealed the day after the mercial National bank closed, when Earl Sinclair, brother Harry de the Citizens' National bank the other large bank in town. as precaution event citizens of Independence came panicky.

4. March 23, 1930 The Owensboro Messenger Owensboro, KY
Article from The Owensboro Messenger, March 23, 1930

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Article Text

Offers $1,000,000 To Reopen Institution At Independence, Kansas. Independence, Kan., March Harry Sinclair, who rose from drug clerk here to multimillionaire oil man, was reported today to have offered part of his millions to reopen a home-town bank, closed when shortage was found by national bank examiners Sinclair's offer, put $1,000,000 was reported to have been made to W. Fitzpatrick, chairman of the board of the Prairie On Gas company, who has been active tempts to reorganize the Commercial National bank, which suspended business last week when the books of George T. Guernsey, Sr., president and financial pillar of the town, revealed shortage. Interest the Sinclair family in the welfare of their former home community first was revealed the day after the Commercial National bank closed. when Earl Sinclair, brother of Harry, telegraphed $500,000 deposit in the Citizens National bank, the other large bank in town, as a safety percaution in event citizens of Independence became panicky. Harry Sinclair's reorted offer comes on the heels of the transfer by George T. Guernsey, Sr., to M. E. Murray, receiver, of certain property in Independence, 4,000acre tract on which is situated Guernsey's famous "shack," where he entertained his friends lavishly, and other holdings, said by George T. Guernsey, Jr., vice president of the closed Commercial National, to be worth $175,000.

5. March 23, 1930 Wisconsin State Journal Madison, WI
Article from Wisconsin State Journal, March 23, 1930

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Article Text

Sinclair Offers Million to Reopen Home Bank INDEPENDENCE. Kas. - (U.P.) Harry Sinclair, who rose from drug clerk here to a multi-millionaire oil man, was reported Saturday to have offered part of his millions to reopen hometown bank. closed when a shortage was found by national bank examiners. Sinclair's offer, said to be $1,000,000, was reported to have been made to W. S. Fitzpatrick. chairman of the board of the Prairie Oil and Gas company, who has been active in attempts to reorganize the Commercial National bank, which suspended business last week when the books of George T. Guernsey, president and financial pillar of the town, revealed a shortage. Interest of the Sinclair family in the welfare of their former home community first was revealed the day after the Commercial National bank closed, when Earl Sinclair. brother of Harry. telegraphed $500.000 deposit in the Citizens' Nation-

6. March 23, 1930 Evansville Press Evansville, IN
Article from Evansville Press, March 23, 1930

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Article Text

SINCLAIR COMES TO AID OF HOME TOWN BANK By United INDEPENDENCE Kas. Mar. 22 Harry Sinclair. who rose from drug clerk to multi-millionaire oil man. was reported today to have offered part of his millions to reopen a hometown bank, closed when shortage was found by national bank examiners. Sinclair's offer, said to be $1,000,000. was reported to have been made to the Commercial National bank, which suspended business last week when the books of George T. Guernsey, president, reyealed stortage Interest of the Sinclairs in the welfare of their former home community first was revealed the day after the Commercial National bank closed, when Earl Sinclair, brother of Harry, telegraphed $500,000 deposit in the Citizens National bank, the other large bank in town, as a safety precaution.

7. April 29, 1930 Joplin Globe Joplin, MO
Article from Joplin Globe, April 29, 1930

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Article Text

GUERNSEY PLEADS GUILTY TO FEDERAL BEZZLEMENT CHARGE. Fort Scott, Kan., April After surrendering himself to marshal, George Guernsey, president of the defunct Commercial National bank of Independence, Kan., pleaded not guilty late today before United States here to charge of embezzlement, waived preliminary hearing and was released under $25,000 bond. Accompanied by his attorney, Kirk Veeder of Independence, the banker arrived here late ernoon after warrant had been issued in on complaint signed by Erskine Wyman, sistant United States district torney, charging him with embezzlement of $183,000 of the money, funds credits of the bank, closed March by order of its board of Set for November Term. banker was ordered to pear before the United States trict court at the term convening November 10. Wyman announced at Topeka today the probably would present the case to federal grand jury Fort Scott at that time effort obtain indictment. He said, however, that could presented to federal grand juries the state prior to that time, but that this not likely. There was likelihood, he said, the being presented to the grand jury convening at Fort Scott week. Guernsey is nearly 70 years old. The bank's statement prior to its closing showed deposits

8. April 29, 1930 The Iola Register Iola, KS
Article from The Iola Register, April 29, 1930

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Article Text

STATE GIVES BANK TIME TO MAKE Month Granted To Receiver of the Independence Institution To Return $430,000 April state treasury board today granted receiver the defunct Commercial National Bank of Independence days ment for $430,000 deposit carried state in bank the time closing. Murray of the bank given 30 days which dispose bonds valued deposited the bank with the state state and the Kansas fund This action announced Reed after meeting the with the bank and his Scoville. to the was taken order to the find market the securities, which held by state until the amount the state deposit turned.

9. April 29, 1930 The Iola Register Iola, KS
Article from The Iola Register, April 29, 1930

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Article Text

ARRAIGNED Banker To in the Appear Federal Court Next November Fort Apr. George Guernsey, banker Kans., day under order to appear the United States district here next November charges embezzling from the funct National bank he Arraigned here late vesterday fore United States aged banker pleaded the charge and under bond signed by Truby and Eleanor both Independence. Commercial National bank closed March board directors after National Bank they had found irregularities affairs. Erskine assistant United district signed complaint Topeka yesterday said the government probably would present the federal grand jury effort obtain Both United district grand jury here November Wyman said not likely that the grand jury convening here next week.

10. April 30, 1930 Council Grove Republican Council Grove, KS
Article from Council Grove Republican, April 30, 1930

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Article Text

TALKS TO ROTARY Lawrence, April Kreek, who has returned from spent as United States years minister Paraguay, gave an interesting talk to the Rotary club yesterday. He told of the organization of Rotary Paraguay and the Latins the altruof the Rotary slogan. Manhattan, Apr. Kansas wheat queen will be ected the wheat festival at Hutchinson, August 13, with scholarship to the State Agricultural college the honor. Each wheat county must have seven or more entries. These girls will present themselves before the judges who travel the wheat festival train over the network of Santa and Rock Island railroads between Juyl 21 and August 13. FOR HIGH SCHOOL GIRLS Winfield, Apr. Kancounties the annual high school girls' tournament which held at Southwestern college Saturday April 26. High schools which entered teams in the competition were: Wellington, Ox ford, Belle Plaine, Atlanta, Sun City, Winfield, Arkansas City, Geuda Springs, Medicine Lodge, Burden and Dexter. RECOVER HALF MILLION Topeka, Apr. state of Kansas has taken steps to recovit had on deposit in Commercial National at dependence when it failed recentGov. Reed has instructed the bank receiver to within 30 days the securities given bond for state deposits and turn the sum realized over to the state treasurer. WOLVES KILL STOCK Medicine Lodge, Apr. pair wolves which have been killing livestock and poultry in Lasswell have caused parents to keep their children at home until the have been The wolves are of unusual size according to Will Angell, who rescued calf from them.

11. May 12, 1930 Carthage Evening Press Carthage, MO
Article from Carthage Evening Press, May 12, 1930

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Article Text

WAYSIDE, KANS, BANK FAILS Believed to Be Echo of Crash at Independence (By The Press) Independence, Kans., May 12.-The Wayside State bank, at Wayside, a small town near here, did not open for business today. E. R. Beesley, cashier, said the bank could not continue in business because most of its funds were tied up in the Commercial National Bank at Independence, Kans., which closed March 13. John R. Emery, deputy state bank examiner, said examination made so far indicated there should be little loss, if any, following the bank's suspension of business.

12. November 11, 1930 The Springfield News-Leader Springfield, MO
Article from The Springfield News-Leader, November 11, 1930

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Article Text

DEFER BANKER'S CASE AT FORT SCOTT, KAN. FORT SCOTT. Kan., Nov. 10. (AP)-The case of George T. iarities in connection with the closing of the Commercial National Bank of Independence, Kan., last March. was continued until March, 1931 by Judge Richard J. Hopkins in federal court here today, at the request of Kirke Veeder, defense attorney.

13. October 8, 1931 Bartlesville Examiner-Enterprise Bartlesville, OK
Article from Bartlesville Examiner-Enterprise, October 8, 1931

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Article Text

RESIGNS Jeff H. Hooker. Dallas, Texas, Named Receiver for Central National National and Four Others Jeff H. Hooker of Dallas Texas has been named receiver for Central National bank well receiver for four other banks cated in this state, Kansas and Ar kansas. He succeeds Irving Page. resigned the first of the month to accept position manager the Federal Intermediate Credit bank Wichita, Kan Mr. Hooker has had wide perience bank receiver for government in the southwest. particularly this state and Texas. In addition to his duties with the local bank. Mr. Hooker will have charge of the affairs of the First National bank in the First National bank Siloam Springs, the Montgomery County National bank of Cherryvale, Kan., and Commercial Na. tional bank. Independence, Kan.,