State Savings Bank - Leavenworth, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: August 11, 1925
Location: Leavenworth, Kansas (39.311, -94.922)

Metadata

Model: gpt-5-mini
Short Digest: 88ee48a1

Response Measures

None

Description

Articles (dated 1925-08-11) describe the State Savings Bank of Leavenworth as defunct and in receivership with auditors alleging irregularities. No run or depositor panic is mentioned. The bank is in receivership (closure) and under legal inquiry, so classified as suspension_closure. OCR typos in articles ( fragmented text ) were corrected for comprehension.

Events (2)

1. August 11, 1925 Receivership

Newspaper Excerpt: Bank Receiver Thinks Auditor Report Unfair ... assistant to the receiver in charge of the defunct State Savings Bank here ... Revelations alleged irregularities in the receivership of the State Savings Bank of Leavenworth ... Attorney General ... began study of the evidence ... Brookens ... special assistant attorney general to take charge of the legal inquiry into the alleged irregularities.
Source: newspapers

2. August 11, 1925 Suspension

Cause: Government Action
Cause Details: Bank placed in receivership following auditors' report alleging irregular transactions and irregularities in liquidation; state bank commissioner and attorney general investigating.
Newspaper Excerpt: M. Bishop in Statements Defends Acts While Leavenworth Bank. ... assistant to the receiver in charge of the defunct State Savings Bank here, ...
Source: newspapers

Newspaper Articles (3)

1. August 11, 1925 The Emporia Gazette Emporia, KS

Article from The Emporia Gazette, August 11, 1925

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Article Text

Exerpts the Extreme. RECEIVER IS NOT of LeavenDetailed Custodian Denies worth Bank Were Wasted. Funds Kans., Aug. charge of the receiver bank here funct State detailed statemade today which he branded ment, extracts from report the auditors, recently examined bank which alleged irregular books, transactions the receivership. In statement Mr. Bishop contradicted several the tracts from auditors' report and that had failed to explain several nection with liquidation of the bank's assets charged by auditing company. purported from report that filed of the condition of the State Savings exceedingly Bishop the first place surprised think that auditors have peatedly referred me the ceiver this bank. The only position have that the The manager auditors state the facts simply pertaining some sales made by bank, but there Inferthat these were given proper. "Not only the two sales ferred but sale made every any the were and that petition signed the and the bank addressed the judge the Leavenworth county, asking authority the court to them make sale In every instance compromise. and beginning with first receiver, under bank commisFuster, every and receiver have every presented these applications the judge, and applications have been duly filed record and the court has approved the continued. stated that the statement the clated Press dispatch that barn built on farm near Valley Falls had been sold. and paid for ceivers The barn built almost before property sold, and paid for before the of farm that these would inform Mr. Bone that not explained them the this. the matter them when they made the and of the formation and my authority for making charge not only shown them, also the bank the statement clared. Replying to the auditor's that certificates deposit accepted in satisfaction certain against the Schalker Packing company which into bankruptcy. Mr. Bishop explains follows: simply means that cepted company certain certificates of deposit, that has been duly signed offsets claims the hank had against the packing this way collectabout all the packing company owed the bank. short time after this company went into date they have paid their creditors cents the dollar. This what the bank would have realized claim had these certificates been bis charge that had swers failed collect judge(Continued Page Two)

2. August 11, 1925 The Hutchinson News Hutchinson, KS

Article from The Hutchinson News, August 11, 1925

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Article Text

RECEIVER THINKS AUDITOR REPORT UNFAIR M. Bishop in Statements Defends Acts While Leavenworth Bank. Leavenworth, Kan., Aug. Bishop, assistant to the receiver in charge of the defunct State Savings Bank here, day made detailed which he branded extracts from the report the who recently the bank books, which alleged regular transactions in the ceivership. Mr. Bishop tradicted several of the from auditors riod that he had failed to explain the the bank's charged by the auditing company. Everything Regular. purported extracts from the report that the auditors have filed the condition of the State SavBank are exceedingly Mr. Bishop the place surprised to think that auditors have repeatedly red me the receiver this bank, the position occupied that manager the receiver. The additors simply state the facts certaining to sales made the bank. but there inference given that. these sales were not proper. only the two sales made numerous receivers of this Institumade only one and that petition signed the bank commis addressed to the judge the district county, asking for the authority court allow them to make the sale, compromise. every stance was done and beginning with Mr. Curry. first receiver, under Mr. Foster, bank commissioner and every receiver have presented these applications judge, and the applications have been duly filedon record and the court approved the continued. Barn Bullt Prior to Sale. Mr. Bishop stated that the statement appearing the Associated Press dispatch that $1,300 barn built farm near Valley Falls after had been sold, and paid receiver's expenses" quite erroneous. barn almost year before the property and paid for sale of the farm even surprised that these accountants would Bone that not explained them of the surrounding this, the matter gone Into fully them when they made the audit; and of information and my authority for making charge not only shown but also shown the bank the Replying the auditor's report that deposit cepted of claims against the Schalker PackCompany which went bankruptcy, Mr. Bishop explains follows: Claims He Made Big Saving. simply means that cepted from the Schalker Company certain certificates of that been duly assigned offsets to claims the bank against the packing way collected about or the packing com. owed the short time, after this the packing went into bankruptcy they have their creditors cents on dollar. the bank would have realized had these cortificates not been accepted." Bishop, his statement charge he had failed to collect $25,000 judgment against Potter, his liability, "surely not be expectmake collections when there nothing which execution could be Didn't Employ Attorneys, Hishop declares had nothing do employing attorneys. Bond, employed Foster Mr. Curry, came Leavenworth Endres was employed shortly by the same parties. every to services rendered, which On

3. August 11, 1925 The Hutchinson News Hutchinson, KS

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Article Text

Bank Receiver Thinks Auditor Report Unfair (Continued from Page One.) had to with the of question torney's fees." Bishop emphatically denied accounts that her had been discharged. fact that told Mr. Docking some time ago that wanted relieved on August About the last Topska and at the earnest request Mr. Docking, agreed to remain my present position until August WILL INQUIRE RECEIVERSHIPS. Topeka, Kan., Aug. Revelations alleged irregulariin the receivership of the State Savidgs Bank of Leavenworth will bring more thorough Inquiry into other receiverships, declared Roy Bone,state bank commissioner to. day. Probably three score bank failures within the last four or five years were included under the sweeping investigation order of the the legislature, and likely that the state bank department will pro. ceed to have some of them audited. Attorney General Griffith handed the voluminous record of the bank audit to. and' immediately began study of the evidence and of the laws to fraud, to determine whether prosecution is warranted. Mr. Griffith Brookens, Topeke police judge, special assistant attorney general to take charge of the legal inquiry into the alleged Irregularities. The examination of the audit and of pertinent statutes will probably quire more than week, the attorgeneral said. Other Irregularities. New facts were coming to light today as the study of the audit continued. In the case the Bankers' Investment Company, which bought $181,524.71 worth "book value" assets of the bank for $15,000, the audit shows Malo, who arranged the sale, celved not only commission $500 for selling the property to but his own note for $5,500 included in the assets taken over. The report shows that Bishop, acting for the ceiver, paid off more than $1,100 back due taxes on real estate Main's company. In the face of Bishop's denial certain contained in the audit. the report shows that be not only paid $1,373 for new barn on farm sold Hayden, Topeka lawyer, but also spent $62 for porch on the house. He also paid from the bank's assets nearly $7,500 in delinquent taxes before the transfer to Hayden was effect. ed, the audit declared. These were included in the sale of of book assets the Topeka attorney, for which Hayden is declared to have paid $48,000.