6878. Citizens Bank (Mound City, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 19, 1893
Location
Mound City, Kansas (38.143, -94.814)

Metadata

Model
gpt-5-mini
Short Digest
eaafe83c

Response Measures

None

Description

Contemporary reporting states the Citizens Bank of Mound City failed/was defunct in June–July 1893 due to insolvency and bad/insider paper; reporters explicitly say there was no depositor run. The bank president fled. No reopening is reported; classify as suspension leading to permanent closure.

Events (2)
1. June 19, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Insolvency caused by large amount of bad/related-party notes and inadequate cash; examiner found almost no cash versus large deposits and notes; evidence of insider liabilities and alleged fraud.
Newspaper Excerpt
The bank failed on June 19, 1893, with $120,000 of individual deposits ... when the bank examiner ... found only $1,579.62 in cash, and about $149,000 in notes.
Source
newspapers
2. July 1, 1893* Other
Newspaper Excerpt
Robert Kincaid, president of the defunct Citizen's bank of Mound City, ... has fled the country.
Source
newspapers

Newspaper Articles (3)
1. August 26, 1893 Western Kansas World Wakeeney, KS
Article from Western Kansas World, August 26, 1893

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Article Text

STATE NEWS. McPherson county spent $38,220.16 on the public schools last year. The works of the Western coal company at Fleming are burned. Three hundred miners were thrown out of employment. Washburn college of Topeka has 13 instructors, a membership of over 300 scholars and a library containing over 6,000 volumes. The University of Kansas has fortyfour instructors and last year 739 scholars were entered. The library contains 17,288 volumes. Fort Scott will be given the next state meeting of the Y. M. C. A. of Kansas, which will convene October 19, 20, 21 and 22. This will bring together about 500 delegatesa means a big thing for Fort Scott. On account of recent agitation, the clubs of Lawrence have decided to close up and quit business. All were notified that if they did not, prosecution would be begun by the county attorney under the nuisance clause of the prohibitory law. The Atchison electric street railway is an assured fact. The city council has passed the necessary ordinances, and a site for the power house has been purchased. Work will be commenced at once, and the line will be in operation December 1. Prof. C. A. Boyle, of Ottawa university has been chosen to the chair of music at the Normal school at Emporia. He will be assisted by his wife who has a national reputation as a pianist, having for years been accompanist at Chautauquan assemblies. Olathe Patron: About twenty-five of our young ladies, chaperoned by Mrs. R. E. Stevenson, went into camp at Holliday Tuesday. The camp will be kept open for about ten days and during that time it is expected that about forty will enjoy the pleasure of camp life. Fred Tufts, receiver of the Kansas Trust and Banking company of Atchison, sold a quarter section of land in Phillips county last week for $1,800 cash. The claim of the company was $1,200. A quarter section in Smith county was sold for $2,250. The company's claim against the land was $1,000. Robert Kincaid, president of the defunct Citizen's bank of Mound City, and partner in five other banks, has fled the country. In addition to the money the people will lose through the bank failures, the people of Linn county held his personal notes for about $200,000, all of which it is thought will prove a tótal loss. Thieves entered the home of Rev. W. B. Poinsett, ex-chaplain of the state penitentiary, at Kansas City, Kan., and secured a gold watch and some small change. The watch was the property of Mrs. Lizzie Gamble, the daughter of Rev. Poinsett, presented to her by the prison officials and convicts when she conduced a convict choir. Topeka Capital: City Assessor Oscar Bishoff is making a thorough search of the records in the various courts and elsewhere to discover all the judgments, mortgages, etc., subject to taxation. A list will be compiled and submitted to the board of county commissioners who will see that those not returned by the owners are properly taxed. Thomas H. Cavanaugh, formerly of Topeka, who it has been known has been conducting experiments in raising sunken vessels by means of placing large canvas sacks in the hold and pumping air into them, has made a great success. He raised the Glenola near New York within one hour after the sacks were adjusted. The New York papers contain long accounts of it. From Winona: A tornado destroyed considerable property and killed two children in the northwestern part of Logan county. The tornado formed about fifteen miles northwest of here and first struck the farm house of William Jackson, completely demolishing it and killing his two children, aged 5 and 10 years, respectively. Farm machinery and wagons were carried for a quarter of a mile and twisted out of shape. The storm traveled in a northeasterly direction for about five miles, striking the house of G. B. Yeoman, totally destroying it, together with the stable and other outbuildings, killing a horse, several pigs and chickens. The prairie for a mile and a half wide was covered with debris from the demolished buildings. Jack rabbits were killed by the score. From Goodland: This section has been visited by a most terrible hail storm, covering an area of three miles square. The stones averaged the size of base balls, many of them weighing nineteen ounces and measuring sixteen inches in circumference. The roof of part of the R. W. Finley mill building is covered with corrugated iron, through which the hail tore its way. At over fifty places roofs of shingles and inch boards were crushed and sidewalks were broken in many parts of town. One thousand roof lights of glass, five-eighths

2. October 10, 1894 The Advocate Topeka, KS
Article from The Advocate, October 10, 1894

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Article Text

THIS IS WHAT HELPED BRING KANSAS TO DISGRACE. A Loud-Mouthed Redeemer Whose Business Is Swindling the Public, and Who Ought to Be In Prison. It is now time to acquaint the people of Kansas with the bank and mortgage record of R. W. Blue, candidate for conreasman-at-large upon the republican ticket. Being one of the victims of the alleged "failure" of the Citizens bank of Mound City, Linn county, Kas., I am financially interested in the affairs of that bank, which was claimed to be the very best bank in Linn county, in fact, a particularly bright star in the consteliation of fin ncial institutions which have been persistently pointed to with pride by our republican leaders and press as being "the best banking system on earth." We now find that, notwithstanding the alleged "safe and conservative" character of the institution with which we will show how closely Mr. Blue was connected, it had some peculiar characteristics not get forth in its glittering prospectus. The bank was organized in May, 1887, and failed in July,1893, Mr. Blue being "in on the ground floor" in the start, and safely "over the fence and out" when the failare occurred. I was one of a committee of three appointed to examine the books. and as each of the committee WAS a victim of the crash, we had fairly paid for the information we might obtain, al though we were not aware what the de velopments might be. The bank failed on June 19, 1893, with $120,000 of individual deposits as one item of their liability, in addition to $49,400 paid-up stock, which had also been swallowed up. Now, when the bank examiner walked into this safe and conservative institution on the above date, and put his hand on the money drawer and safe, he found, as a basis for this liability of $169,400, only $1,579.62 in cash, and about $149,000 in notes. We, as depositors, were assured by the president, cashier, and R. W. Blue, director, up to the very day of the failure, that the bank was perfectly safe; and, as one evidence of the confidence we had in their assurances, based, of course, on our belief in their honesty and integrity, we call attention to the fact that there was no run made or the bank by depositors, as the statement of its condition made to the bank commissioner on June 20, 1893, one month previous to the failure, shows $119,000 individual deposits. As evidence of the worse than rotten character of the paper (in general, which is turned over to us as assets by this gang of genteel freebooters and legalized Dal tons, we call attention to the fact that the names of the stockholders of the institution are attached to $103,000 out of the $149,000 in notes, and, as evidence of the share that Mr. Blue had in the transaction, I call attention to the fact that his name as principal is attached to $8,657.64. He had $2,000 in stock, upon which he had paid but $800, leaving him liable as stockholder, for $3,200, making him debtor in the total sum of $12,057.64. Now, no one would imagine for a moment that one of the foremost "redeemers" of Kansas,one of the brightest apostles of "honest dollars," would obligate himself in this manner to the citizens of his own county, his neighbors and friends-some of whom are widow withont dapositing collat-

3. October 24, 1894 The Advocate Topeka, KS
Article from The Advocate, October 24, 1894

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Article Text

BLUE'S CONFIDENCE GAMES. A Victim of the Great Redeemer Tells His Experience. [The following article was published in our issue of October 10, but as the present issue will reach many thousands of new readers, and as this article gives facts which are almost identical with the experience of many other victims, it is reprinted.] It is now time to acquaint the people of Kansas with the bank and mortgage record of R. W. Blue, candidate for congreaman-at-large upon the republican ticket. Being one of the viotims of the alleged "failure" of the Citizens bank of Mound City, Linn county, Kas., I am financially interested in the affairs of that bank, which was claimed to be the very best bank in Linn county, in fact, s particularly bright star in the consteliation of fin recial institutions which have been persistently pointed to with pride by our republican leaders and press as being "the best banking system on earth." We now find that, notwithstanding the alleged "safe and conservative" character of the institution with which we will show how closely Mr. Blue was connected, it had some peouliar characteristics not set forth in its glittering prospectus. The bank was organized in May, 1887, and failed in July, 1893, Mr. Blue being "in on the ground floor" in the start, and safely "over the fence and out" when the failure occurred. I was one of a committee of three appointed to examine the books. and as each of the committee was a victim of the crash, we had fairly paid for the information we might obtain, although we were not aware what the de velopments might be. The bank failed on June 19, 1893, with $120,000 of individual deposits as one item of their liability, in addition to $49,400 paid-up stock, which had also been swallowed up. Now, when the bank examiner walked into this safe and conservative institution on the above date, and put his hand on the money drawer and safe, he found, as a basis for this liability of $169,400, only $1,579.62 in cash, and about $149,000 in notes. We, as depositors, were assured by the president, cashier, and R. W. Blue, director, up to the very day of the failure, that the bank was perfectly safe; and, as one evidence of the confidence we had in their assurances, based, of course, on our belief in their honesty and integrity, we call attention to the fact that there was no run made or the bank by depositors, as the statement of its condition made to the bank commissioner on June 20, 1893, one month previous to the failure, shows $119,000 individual deposits. As evidence of the worse than rotten character of the paper in general, which is turned over to us as assets by this gang of genteel freebooters and legalized Dal tone, we call attention to the fact that the names of the stockholders of the institution are attached to $103,000 out of the $149,000 in notee, and, as evidence of the share that Mr. Blue had in the transaction, I call attention to the fact that his name as principal is attached to $8,657.64. He had $2,000 in stock, upon which he had paid but $800, leaving him liable as stockholder, for $3,200, making him debtor in the total sum of $12,057.64. Now, no one would imagine for a moment that one of the foremost