6856. First State Bank (McPherson, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 31, 1897
Location
McPherson, Kansas (38.371, -97.664)

Metadata

Model
gpt-5-mini
Short Digest
b19a029b

Response Measures

None

Description

The First State Bank of McPherson closed its doors on Aug 31, 1897 and was placed in the hands of Bank Commissioner John W. Breidenthal. There is no clear evidence of a depositor run in the articles; the closure resulted from insolvency caused by bad paper and the failure of an associated party (W. P. Pierce). A receiver (D. A. Bradley) was later appointed and the bank did not reopen. OCR minor errors corrected (e.g., 'band' -> 'bank').

Events (2)
1. August 31, 1897 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was short in clearings and affected by failure of W. P. Pierce and carrying a large amount of worthless/boom paper; insolvent condition and losses on investments by president Royal Matthews.
Newspaper Excerpt
The First State bank of McPherson has closed its doors. ... a notice was posted on the front door of the bank yesterday stating that the bank was in the hands of John W. Breidenthal, pending an investigation.
Source
newspapers
2. December 27, 1897 Receivership
Newspaper Excerpt
the court has appointed D. A. Bradley receiver, and after a thorough examination of the affairs since taking charge, he states that for the past five years the bank has not been in a solvent condition.
Source
newspapers

Newspaper Articles (11)
1. August 31, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, August 31, 1897

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M'PHERSON BANK FAILS. The First State Bank in Commissioner Breidenthal's Hands. McPherson, Aug. 31.-The First State bank of McPherson has closed its doors. Owing to the difficulty in making their clearings last Saturday evening, when the bank was short about two thousand dollars, a notice was posted on the front door of the bank yesterday stating that the bank was in the hands of John W. Breidenthal, pending an investigation. Royal Matthews is the president. The bank has been considered in a shaky condition for sometime, but it was thought they might pull through all right. It is expected that the bank will open up again in a few days under a new management, and that the depositors will be paid in full. The city of McPherson has something over four thousand dollars on deposit there. The liabilities amount to $28,000. The condition of the bank is a result of the failure of W. P. Pierce of Salina, who was largely interested in the bank here. When he assigned the credit of the First State bank here was affected. There is talk also that Matthews lost money on an investment in Texas.

2. September 10, 1897 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, September 10, 1897

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THE NEWS IN BRIEF. PERSONAL AND GENERAL. A LETTER has been received in New York from Quintin Banderas, the fa mous negro war captain of the Cuban army, announcing hisarrival in Havana province with 12,000 men. GEN. WOODFORD. minister to Madrid, expected to start from Paris to San Sebastian, on the 30th, to present to the queen regent the proposition of the state department for ending the war in Cuba. The result of his mission is awaited with much interest. IT is estimated that in Oklahoma ter ritory, during the year 1897, the stock, grain, fruit. and all other products will amount to $100,000,000. Of this the peo ple at home will consume 60 per cent., leaving $40,000,000 of products for export. SECRETARY GAGE and Attorney-Gen eral McKenna issued a joint circular. on the 30th, to collectors and customs officers and United States attorneys and marshals relative to the enforcement of the Chineseexclusion laws. It is proposed to let the suspects pass on to their destination, and arrest and try them where they are supposed to be known and can be identified if their claims are genuine. HERMAN W. VAN ZANDEN, private secretary to Secretary Carlisle in the last administration, and Dennis J. Canty, formerly a clerk in the interstate commerce commission, were arrested in Washington, on the 30th, on warrants charging them with embezzlement of $4,887 from Wilking & Co., a brokerage firm. They were charged also with maintaining a gambling table. A SPECIAL from Anaconda, Mont., on the 30th, said: "A fierce forest fire is raging a few miles west of here and spreading with alarming rapidity toward this city. The fire has already burned over 10,000 acres of timber. A messenger from the burned district says that Georgetown and Silver Lake are both in the track of the fire". OPERATIONS were resumed at the Atlantic mills at Lawrence, Mass., on the 30th, after a shutdown of four weeks. This gives employment to about 1,200 hands. Work was also resumed in the weaving department of the Methuen company's mills at Methuen, Mass., where nearly all of the 450 operatives employed in those mills are now at work. THE Catholic board of school commissioners of Montreal, Can., having refused to comply with the order of the provincial board of health to refuse entrance to their schools to children without vaccination certificates, the city will station officers at all the Catholic schools to vaccinate the children. THE Great Falls cotton manufacturing mills at Somersworth, N. H., resumed operations on full time. on the 30th, after having run 40 hours a week since May. THE Firststate bank of McPherson, Kas., of which Senator Royal Mat thews is president, failed, on the 31st, with liabilities amounting to $28,000. The bank was placed in charge of Bank Commissioner John W. Breiden thal. THE board of naval officers appointed by the secretary of the navy to exam ine facilities for the manufacture of armor plate investigated the plant o the Illinois Steel and Iron Co., at South Chicago, on the 30th. Three days will probably be spent in looking over the various branches of the works. AT the session of the Zionist con gress, held in Basle, Switzerland, or the 30th. the delegates present unani mously adopted, withgreatenthasiasm the programme for re-establishing th Hebrews in Palestine with publicl recognized rights. THE czar will visit Paris at the en of autumn. MRS. ANNIE KIRK and her husband W. S. Kirk, have sued W. A. Atwood . San Francisco dentist, for $250 dan ages, alleged to have been sustaine because he positively refused to exan ine the lady's teeth after he hadagree to put them in good condition. Th reason for his refusal was that sh went to his office on her bicycle an wore bloomers. AT Harrisburg, Pa., on the 31st, by d vote of 53 to 26, the state democrati committee adopted a resolution declar ing vacant the seat of William F. Ha rity, of Philadelphia, on the Dem cratic national committee. ANXIETY as to the fate of the Yuko steamer P. B. Weare, said to be lade with gold. was set at rest, on the 31s by advices that the Weare was tied u near Circle City, repairing her boile flues. et ON the 31st the Seattle (Wash.) chan ber of commerce received a letter fro miners at Skaguay, warning people e the futility of trying to reach the Y kon by that route this season. ONCE more Paris is singing the Ma seillaise, and accounts from the pro

3. December 2, 1897 Kansas City Journal Kansas City, MO
Article from Kansas City Journal, December 2, 1897

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HAVE FAILED TO SETTLE. Receiver for the First State Bank of McPherson to Be Asked For. Topeka, Kas., Dec. 1.-(Special.) Assistant Attorney General Snelling is preparing a petition to file in the McPherson county district court asking for the appointment of a receiver for the First State bank, of McPherson, which failed on August 31. Bank Commissioner Breidenthal kept a special deputy in charge for ninety days, as he is allowed to do under the law, for the purpose of giving the bank officers a chance to settle the bank's affairs out of court, but the officers could not effect a settlement and he has asked the attorney general to have a receiver appointed. The liabilities of the institution are $36,000, while the resources are $48,000. The failure of the band was due to his carrying a large amount of worthless paper dumped onto it by the old First National bank, of that place. The state bank was a reorganization of the national bank.

4. December 2, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 2, 1897

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SNAP SHOTSAT HOME NEWS Judge. C. G. Foster has sentenced nine with the death penalty. A sneak thief has been robbing cash drawers of the stores in Parkdale. This is the season for the annual elections in Topeka fraternal organizations. Frank Thomas of the Southwestern Fuel company has returned from a trip to Wichita, Police Matron Thorpe will take charge of her new office in the city jail building on Monday. Fireman McLaughlin is looking for a sheepskin overcoat he lost going to a fire yesterday. The Atchison chess club wants a game with some Topeka chess club. Can anyone speak up? A. W. Dana will read a paper on James Russell Lowell at the Unitey club tomorrow night. The city jail addition is now completed. The temperature this morning was 11 degrees above zero. The Shawnee County Horticultural society is holding a session at the court house this afternoon. Mr. Louis Smith of the passenger department of the Santa Fe has returned after a visit in Illinois. In the ladies' tournament last night at the Topeka whist club rooms the "easts and wests" were victorious. Attorney General Boyle is arguing the coal miners' scrip case before Judge Simons at Fort Scott today. Tomorrow evening the local oratorical contest will be held at Washburn college. There are but two contestants. The Northwestern Mutual Insurance company has ad a large safe put in its office in the Columbian building. The planist with the Payton company is the best that has ever been seen in Topeka with a repertoire company. The Cook-Kepley contest court will meet next Tuesday in the G. A. R. hall on the third floor of the court house. Janitor Laptad of the court house says he has a great deal of trouble in keeping people out of the building after dark. The young people who gave the play "A Perplexing Situation" at Library hall will give it this evening at the reform school. Assistant United States District Attorney H. J. Bone helped to convict the first man tried at this term. It was his first case. The fair grounds have been turned over to B. F. Pankey, the stockman, who will feed several hundred cattle in the cattle barns, Governor Leedy has returned from a visit at the State.Soldiers' home at Dodge City and the state reformatory at Hutchinson. The friends of Andrew Folquist say he is not so bad and that his wife is the cause of all the family trouble. Women always get the blame. State Bank Commissioner Breidenthal has decided to ask for a receiver for the First State bank of McPherson, which failed some weeks ago. Edward Boyer has asked the probate court to remove his guardian, F. G. Hentig. He is 18 years old and wants to name his own guardian. Since the order concerning petty criminal cases was made by County Attorney Jetmore there has been very little busi ness in the justice courts. Under Sheriff Bert Lucas and Deputies Larry Sheehan and W. T. McKnight have been subpoenaed as witnesses on behalf of Cook in the Cook-Kepley contest. One man in Philadelphia recruited over 2.600 new members of the L. A. W. last summer. The Kansas division is thinking of inducing him to move to Kansas, State Superintendent Stryker has issued a circular letter to county superintend. ents urging them to attend the State Teachers' association the latter part of this month. Mr. W. G. Nevin, general manager of the Santa Fe Pacific road. passed through Topeka on his way to Chicago yesterday afternoon to attend a meeting of the general officials. Street Commissioner Ramsey has received two new street graders and a half dozen small scrapers. They are what the city received in trade for Jumbo, the big street roller. A case was brought in Justice McClintock's court a few days ago to force the payment of a debt of $1. The constable fees and the fee of docketing the case amounted to $1.05, with more to follow if the case is tried. Since the announcement was made in the State Journal that Smyth & Rice, man. agers of "My Friend From India," wanted a new comedy in which to star Miss May Vokes, they have received over 200 manuscripts of new plays. Edward Wilder says that he thinks he can arrange for an illuminated display for a week at the dedication of the new bridge; and as Mr. Wilder is a large part of the Edison Electric Light company, this means a great deal. Ex-Chief of Police H. C. Lindsey has gone to Chicago to buy a complete equipment of rubber tired vehicles and new harness. He says he will open the finest stable in Topeka in McCurdy's old barns on West Fifth street January 1. H. Ashbaugh, an old man in poor cir cumstances, has been taken to the Salvation Army hospital. He has a large abscess on his knee which was becoming dangerous and careful treatment was necessary to prevent blood poisoning. Today a colored man named Lewis Mason tried to sell a box of cigars to a groceryman in the western part of the city. The latter notified the police and the man was arrested. It was found that the cigars came from Parker's store on Tenth and Kansas avenue. Mason claimed that a man named Hiser had given him the cigars to sell and he was to divide with him. The charge of larceny was placed against Mason.

5. December 27, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 27, 1897

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BAD BANK FAILURE. Royal Matthews' Institution Said to Have Been Insolvent For Five Years. McPherson, Dec. 27.-When the First State bank of McPherson, of which Royal Matthews is president, failed in September, it was reported that the depositors would be paid in full inside of the 90 days limit allowed by law. This time has elapsed and the court has appointed D. A. Bradley receiver, and after a thorough examination of the affairs since taking charge, he states that for the past five years the bank has not been in a solvent condition. The assets of the bank when the doors were closed were given at $37,000, and resources a little over $24,000, comprising notes and overdrafts from Mr. Matthews and his wife to the amount of over $10,000, Matthews' wife's, indicidual note for $5,000, Mr. Matthews' note for $11,000 and an overdraft for $3,779.35, and a lot of other boom paper, such as Lew Roberts' note for $440.15, that of A. C. Wilcox for $5,000, W. P. Pierce $3,000 and A. E. Dwelle, the cashier of the bank, $1,000. The receiver will make his report today. Proceedings are about to be commenced against the stockholders of the First National bank, which the First State bank succeeded, on their guarantee of the resources turned over to the First State bank. It is said the depositors will not realize 5 cents on the dollar.

6. December 30, 1897 Hutchinson Gazette Hutchinson, KS
Article from Hutchinson Gazette, December 30, 1897

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QUEER BANK FAILURE. First State, Which Falled at McPherson Insolvent for Five Years. McPHERSON, Kan.. Dec. 27.-When the First State bank of McPherson, of which Royal Matthews is president, failed in September, it was reported that the depositors would be paid in full inside of the ninety days allowed by law. This time has elapsed and the court has appointed D. A. Bradley receiver, and after a thorough examination of the affairs since taking charge, he states that for the past five years the bank has been in an insolvent condition. It is said the depositors will not realize 5 cents on the dollar.

7. December 30, 1897 The Globe-Republican Dodge City, KS
Article from The Globe-Republican, December 30, 1897

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QUEER BANK FAILURE. First State, Which Failed at McPherson Insolvent for Five Years. McPHERSON, Kan.. Dec. 27.-When the First State bank of McPherson, of which Royal Matthews is president, failed in September, it was reported that the depositors would be paid in full inside of the ninety days allowed by law. This time has elapsed and the court has appointed D. A. Bradley receiver, and after a thorough examination of the affairs since taking charge, he states that for the past five years the bank has been in an insolvent condition. It is said the depositors will not realize 5 cents on the dollar.

8. January 18, 1898 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 18, 1898

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MATTHEWS IN MEXICO. Absence of the McPherson Bank President Causes Alarm. McPherson, Jan. 18.-The depositors who are friendly to Senator Royal Matthews, president of the First State bank that failed a few months ago, were considerably chagrined this morning when it was reported that when last heard from he was in Old Mexico. The bank's affairs are being settled up very rapidly, the receiver having been authorized by order of the court to pay a dividend on trust claims of 75

9. January 19, 1898 The Advocate and News Topeka, KS
Article from The Advocate and News, January 19, 1898

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Criticism of Breidenthal Discussed. A McPherson Republican paper finds fault with Bank Commissioner Breidenthal because he did not advise the public in advance that the First State bank of that city was not absolutely safe. It is doubtless true that Mr. Breidenthal knew long in advance of the closing of that bank that it was not in the condition it should be. According to the McPherson paper's idea he should have advised the public of the state of affairs at once. This would have caused a run on the bank, and its failure would have been inevitable. It would have been the case with any bank, with the possible exception of a few of the largest and strongest in the State. Mr. Breidenthal, by reason of his experience and position, is a good judge of a bank's ability to pay out and gets its affairs in good condition. In this, as in other cases, he believed that in a few months, with judicious management, its condition could be materially improved and eventually the institution would be placed on a firm and permanent basis. In this case his expectations were not realized. If, however, one could go through the records of the Bank Commissioner's department it would be discovered that Mr. Breidenthal has been the means of putting a very large number of weak banks on their feet without loss to anybody. His records show that this has been a wise policy and that it has been beneficial to both stockholders and depositors of banks.

10. January 20, 1898 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, January 20, 1898

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Banker Matthews Is in Mexica McPHERSON, Kan. Jan. --- Those depositors who were friendly to San. afor Royal Matthews, president of the First State bank that failed a few months ago, were considerably cha grined this morning when it was reported that when last heard from he was in Old Mexico. The bank's affairs are being settled up very rapidly, the receiver having been authorized by order of the court to pay a dividend on trust claims of 75 per cent and common creditors 10 per cent

11. April 7, 1898 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, April 7, 1898

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MPHERSON BANK FAILURE. Original Directors of the First National Bank Sued by Receiver of First State. McPherson, April 7.-D. A. Bradley, who was appointed receiver for the First State bank, which failed last September, has brought suit against the original directors of the First National bank. from which the former concern was organized in 1892. The suit is to recover $30,000, almost the entire amount of liabilities. The old directors guaranteed to the new bank a lot of bad paper which ultimately caused its failure. The directors of the original institution met Tuesday to take steps for a compromise of the lawsuit.