Citizens Bank - Mound City, KS

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: September 1, 1894*
Location: Mound City, Kansas (38.143, -94.814)

Metadata

Model: gpt-5-mini
Short Digest: ddff80f9

Response Measures

None

Description

Contemporary articles state the Citizens Bank of Mound City 'recently failed' and is in the hands of a receiver; multiple pieces cite large withdrawals by directors and insolvency (liabilities exceeded assets). No article describes a depositor run prior to closure; therefore classified as a suspension/closure (failure leading to receivership). Date of failure approximated to 1894 from Sept. 1894 articles; receivership still active by Feb 1895.

Events (2)

1. September 1, 1894* Receivership

Newspaper Excerpt: the receiver now holds his worthless notes for that amount. The depositors will receive little or nothing for their hard earned money. ... both of which are in the hands of receivers (Feb. 1895).
Source: newspapers

2. September 1, 1894* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank insolvent due to misconduct/large withdrawals by directors (R. W. Blue drew out over $9,000; receiver holds worthless notes); insolvency and fraudulent operations are cited as reasons for failure.
Newspaper Excerpt: an institution which recently failed with liabilities far exceeding its assets.
Source: newspapers

Newspaper Articles (5)

1. September 26, 1894 The Advocate Topeka, KS

Article from The Advocate, September 26, 1894

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MORRILL AND BLUE OUGHT TO FORM A PARTNERSHIP AND HANG OUT A SIGN: Redeemers and Dealers in Fraudulent Titles and Mortgages-Conduct a General Skinning Business-Oustomers Robbed on Short Notice. In this the most important political campaign of Kansas' history the People's party papers have made no attempt at sensations, and no attempt to injure personal character without cause. The republican state convention, in order to keep up its reputation of standing by the interests of the money power nominated nine state candidates, seven of which are either bankers or corporation lawyers or both. The most notorious of these are R. W. Blue for Congressman at large and E. N. Morrill for Governor. These two men have business records so foul that they are even denounced by members of their own party while their leaders undertake to berate the official character of Populist officials. Most of our readers have some knowledge of the swindling operations of E. N. Morrill and they will find something in this artiele to add to their knowledge. We wish first to say a word about that other combination of fraud an egotiem, R. W. Blue. This R. W. Blue is a stockholder in the Citizens Bank of Mound City, Kansas, an institution which recently failed with liabilities far exceeding its assets. The bank was 8 swindle from start to finish. Blue paid $800 for stock in this bank and thereby, it seems, established a credit of twelve times that amount, something he never had in his life before. But this credit was used to the dire detriment of the depositors of the concern, for Blue drew out over $9,000 of the bank's funds and the receiver now holds his worthleas notes for that amount. The depositors will receive little or nothing for their hard earned money. This accounts for all this "standing up for the credit of Kansas," which fellows of the Blue stripe talk SO much about. They believe in credit and confidence, for it may enable them to repeat their confidence games in the future. There is still more to Blue's record. He was vice-president of the Kansas Land, Loan and Trust Co., organized in Mound City in 1885, and here is a sample of their manner of doing business, as :published by the Mound City Torch of Liberty: They had a mortgage given by Rv. C. Casida for $700, which they sold to an eastern party named Louisa Miller. Casida paid the amount of this mort-

2. September 26, 1894 The Advocate Topeka, KS

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large, and his connection as director with the Citizen's bank of Mound City, Linn county, wherein he took out nearly $10,000 of the people's money, and the bank holds his note for the amount. Tell me how much said note is worth on the dollar. Ask the president of the Creditor's Protective association, an organization of the creditors of said defunct bank. Tell me about your notorious, drunken republican judge, Botkin, whose impeachment trial by $the senate cost the state $38,837.58. Tell me about your republican dynamite plot at Coffeyville, which almost resulted in serious loss of life. Then explain why your republican courts say that it is all right and legal for the Topeka club to run, but that all other smaller clubs, composed of poor men, and less influential, shall be closed, although operated on exactly the same system. It appears"to me that you and your prohibition friends should look into this matter. Tell me about the bribery and corruption in the senatorial elections of 1867 and 1871 as shown by the report of your republican investigating committee, which reported February 24, 1872, in which Pomeroy and other prominent republicans figured. Tell me about the useless expenditure of state money by Governor Humphrey when he was a candidate for congress in the Third district, referred to by the Topeka Capital of April 27, 1892, as follows: "For six months he has had a playedout politician, a lazy, political loafer, acting as his? personal roustabout. This barnacle is borne on the rolls of the adjutant general as Lewis Hanback, at $100 per month, and has not in the past six months done an hour's work in the adjutant general's office. He has been kept traveling about looking after the governor's political fences, for which services the governor has drawn orders on the contingent fund, which is under his personal control, for $280. These orders given by the governor may be examined by any tax-payer in the state auditor's office, as they are among the public records open to all citizens. From December 15, to April 25, 1892, Mr. Hanback drew on five vouchers of the governor, $280 for 'special services,' 'extra $ services," etc., to each of which vouchers I was attached the following certificate s signed by Governor Humphrey: | "I do certify that the within was I contracted by me for the state under 1 authority of law, and that the amount ) therein claimed is correct according to ) such contract, and is unpaid.' ) "When Governor Humphrey signed 1 those vouchers he know Low Hanback i was receiving $100.00 per month from : the state, not one dollar of which he 3 earned. He knew also that the private l political work Lew Hanback was doing , and 18 doing to-day for him on the $50 he drew on Monday, April 25th, was not an expenditure of the money of the state 7 warranted by exigencies of the public service or contemplated by law." 1 Then tell me about the overlasting I diagrace on Kansas, at the Osawatomie Income canlum in 1877 an account of

3. October 3, 1894 Barbour County Index Medicine Lodge, KS

Article from Barbour County Index, October 3, 1894

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contractors, and persons interested? By the way, did not the legislative investigation in 1891 show a shortage on statehouse contracts of $80,000? What became of it? Then tell me about the $14,576.77 of worthless school bonds purporting to be from Norton and Rice counties purchased by the republican board of school fund commissioners, a history of which is found in the republican attorney general's report for 1876, to the governor. Then tell me about the Comanche county school bond fraud of 1872 and 1873, the buffalo hunt, Mr. Mowry, the forged tally sheets of imaginary school district bond elections said to have been held, location of imaginary school district No. 1, and the $2,500 in bonds voted to build the school house (see House Journal, page 450 of 1876) the mapping out of other fraudulent school districts, and in repiy to the question, where the fictitious bonds could be disposed of, the answer came: "There is just as good market for fraudulent school bonds in Topeka as there is for legal bonds. There is only a difference in price." Then tell me about the many thousands of dollars due the state from N. Y. Firse Insurance companies on account of insurance written by them in Kansas cities and towns having paid fire departments. This matter has been running for years, and until the records of insurance written are lost, so that now it is impossible to determine the exact amount due the state from this source. This outstanding indebtedness is about to be compromised by the payment of a large sum of money into the state treasury, but in the future every eent of this tax will be collected, especially it we have a populist state superintendent of insurance. Then tell me about R. W. Blue, your candidate for congress man-at-large, and his connection as director, with the Citizen's bank of Mound City, Linn county, wherein he took out nearly $10,000 of the people's money, and the bank holds his note for the amount. Tell me how much said note is worth on the dollar. Ask the president of the creditors Protective Association, an organization of the creditors of said defunct bank. Tell me about your notorious, drunken republican judge, Botkin, whose impeachment trial by the senate cost the state $38,857.58. Tell me about your republican dynamite plot at Coffeyville, which almost resulted in serious loss of life. Then explain why your republican courts say that it is all right and legal for the Topeka Club to run, but that all other smaller clubs, composed of poor men, and less influential, shall be closed although operated on exactly the same system. It appears to me that you and your prohibition friends should look into this matter. Tell me about the bribery and corruption in the senatorial elections of 1876 and 1871 as shown by the reports of your republican investigation committee, which reported February 24, 1872, in which Pomeroy and other prominent republicans figured. [Concluded next week.]

4. October 3, 1894 Barbour County Index Medicine Lodge, KS

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R. W. BLUE is a stockholder in the Citizens' bank of Mound City, Kansas, an institution which recently failed with liabilities far exceeding its assets. The bank was a swindle from start to finish. Blue paid $800 for stock in this bank and thereby, it seems, established a credit of twelve times that amount, something he never had in his life before. But this credit was used to the dire detriment of the depositors of the concern, for Blue drew outover $9,000 of the bank's funds and the receiver now holds his worthless notes for that amount. The depositors will receive little or nothing for their hard earned money. This accounts for all this "standing up for the credit of Kansas," which fellows of the Blue strip talk so much about. They believe in credit and confidence, for-it may enable them to repeat their confidence games in the future.

5. February 7, 1895 Abilene Weekly Reflector Abilene, KS

Article from Abilene Weekly Reflector, February 7, 1895

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HOUSE PROCEEDINGS. The house adopted a concurrent resolution calling upon the Kansas delegation in congress to labor for an appropriation to improve the Neosho river so as to prevent overflows and consequent damage to farmers. The house passed a resolution calling upon the special committee appointed to investigate the stock yards at Kansas City, Kan., to also inquire into the manner of disposal of dead hogs at the yards. BOTH WANTED COLLATERAL. Suit Between Receivers of Failed Banks for Possession of Assets. FORT SCOTT, Kan., Feb. 6.-Judge West, of the district court, decided a very important case resulting from the failure of the Citizens' bank of Mound City, and the Hood & Kincaid bank of Pleasanton, both of which are in the hands of receivers. A very intricate condition of affairs was found to exist as a consequence of the reciprocal business carried on between the banks before they failed, when in control of Robert Kincaid, the in. solvent financier of Linn county. Both the receivers laid claim to certain collateral, which was eagerly sought after by the depositors of the two banks, The Mound City bank sued the Please anton bank for possession of the securities, but lost the case. The amount involved would pay a good proportion of the deposits of either bank. how