6842. First State Bank (Marion, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 11, 1898
Location
Marion, Kansas (38.348, -97.017)

Metadata

Model
gpt-5-mini
Short Digest
4fe90ddf

Response Measures

None

Description

No run or depositor panic is described. The banking commissioner took charge of the First State Bank of Marion as hopelessly insolvent after discovery of large forgeries and shortages; a receiver was appointed. Classified as suspension_closure (government action leading to permanent closure/receivership). OCR corrections: none significant.

Events (2)

1. May 11, 1898 Suspension
Cause
Government Action
Cause Details
Banking commissioner took charge after discovery of massive forgeries and a shortage of $25,669.34; commissioner declared the bank hopelessly insolvent and recommended a receiver.
Newspaper Excerpt
the First State bank of Marion, which was taken charge of by the banking department a week ago
Source
newspapers
2. May 25, 1898 Receivership
Newspaper Excerpt
E. R. Burkholder ... has been appointed receiver of the First State bank of Marion by Bank Commissioner Breidenthal. The bank was taken charge of by Commissioner Breidenthal two weeks ago in a hopelessly insolvent condition.
Source
newspapers

Newspaper Articles (3)

Article from The Topeka State Journal, May 18, 1898

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Article Text

HEAVY FORGERIES. How the State Bank of Marion Was Wrecked. According to a report filed by Bank Commissioner Breidenthal with the attorney general, Harry E. Mason and H. C. Blum, respectively president and cashier of the First State bank of Marion, which was taken charge of by the banking department a week ago, are forgers. The report shows a shortage of $25,669.34, and Commissioner Breidenthal says there are a number of forged checks outstanding that will increase the liabilities. Both Mason and Blum are now under arrest. Commissioner Breidenthal expresses the opinion in his report that Brown Corby, county treasurer, was in collusion with his brother-in-law, Harry Mason,in several of the shady transactions of the bank. In concluding his report Commissoner Breidenthal says: "I am advised that on the morning of May 6, several attachments were levied on the bank building. Since the closing of the bank I have learned of a number of forged checks outstanding that will increase the liabilities of the bank. Both the president, Harry E. Mason, and the cashier, H. C. Blum, have been guilty of numerous forgeries, the extent of which it is impossible to determine at this time. The bank is hopelessly insolvent and I recommend that a receiver be appointed to wind up its affairs."


Article from The Topeka State Journal, May 25, 1898

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Article Text

Receiver for Marion Bank. E. R. Burkholder, mayor of the city of Marion and representative from Marion county in the last legislature, has been appointed receiver of the First State bank of Marion by Bank Commissioner Breidenthal. The bank was taken charge of by Commissioner Breidenthal two weeks ago in a hopelessly insolvent condition. Give Jones your ice trade. New ice plant. Tel. 430.


Article from The Advocate and News, June 1, 1898

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Article Text

THE STATE GOVERNMENT. Secretary Greef of the Kansas exposition commission has gone to Omaha to take charge of the Kansas exhibit. Private Clarence Bush, son of the Secretary of State, has been appointed battalion adjutant in the Twenty-first regiment. Representative E. R. Burkholder, of Marion county, has been appointed receiver of the defunct First State Bank of Marion. Applications for places began to come in by telegraph to Governor Leedy within a few hours after the President's proclamation was issued. The Secretary of State receives many calls for blanks for nomination papers for candidates for office. These are supplied by the County Clerks. Galena school bonds will have to be voted on again. Six bonds of $1,000 each were voted. Under the law these bonds should be in denominations of $500. The Governor announces that while every letter arriving at his office will receive attention, yet the deluge is so great that all of them cannot be answered immediately. Elder Harrington, who is a retired minister who is now serving as guide at the State house, is anxious to become chaplain of a Kansas regiment. He is 60 years old but is an unusually active man considering his age. Attorney General Boyle holds that there is no Kansas law which prohibits boards of county commissioners from donating or loaning money to the Omaha exposition commission. He also holds that there is no law authorizing such action. Governor Leedy was thoroughly worn out after organizing the first three regiments of Kansas troops and decided to take a few days' vacation and rest. He did this just in time, as his time to return had just arrived when the second call came. The Executive Council let contracts for stationery, paper and binding supplies last Wednesday. S. B. Brett got the stationery contract, Graham Paper Co. supplies the paper and Gane Bros. & Co will continue to furnish the binding material. Each of these contracts went to the lowest bidder, who in each case happens to be the same persons who have had the contract during the past year.