6898. Farmers State Bank (Neosho Falls, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 9, 1933
Location
Neosho Falls, Kansas (38.006, -95.557)

Metadata

Model
gpt-5-mini
Short Digest
abc9867e

Response Measures

None

Description

Bank was closed by the Kansas state bank commissioner after the discovery of forged municipal bonds connected to Ronald Finney. The commissioner ordered the bank closed for examination/protection of depositors and a receiver (Charles W. Johnson) was directed to take over; later suits seek double liability from W. W. Finney. No run/withdrawal episode is described in the articles.

Events (3)
1. August 9, 1933 Suspension
Cause
Government Action
Cause Details
State bank commissioner ordered the closing of the bank for examination and protection of depositors after discovery of a municipal bond forgery scandal involving bonds securing deposits.
Newspaper Excerpt
They are the Fidelity State and Savings bank of Emporia, of which Finney's father is president, the Eureka bank Eureka and the Farmers State bank. Neosho Falls.
Source
newspapers
2. August 24, 1933 Receivership
Newspaper Excerpt
Koeneke, state bank commissioner, said he had directed Charles W. Johnson, general bank receiver, to take over the affairs the Fidelity State and Savings bank of Emporia and the Farmers State bank at Neosho Falls.
Source
newspapers
3. June 23, 1934 Other
Newspaper Excerpt
Charles W. Johnson, receiver for the closed Farmers State bank Neosho Falls, has filed suit in the Lyon county court for ... against Finney, former of the bank ... The amount asked covers Finney's double liability as stockholder.
Source
newspapers

Newspaper Articles (9)
1. August 9, 1933 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, August 9, 1933

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Article Text

BOND FORGERY CLOSES BANKS Kansas Governor Reveals Municipal Swindle municipal bond forgery, which authorities believe may have been a million dollar swindle, caused the closing of three state banks Tuesday and the arrest of one man. Ronald Finney bond broker and son of W. W. Finney, Emporia, Kan banker surrendered after being charged with uttering $20,000 in forged bonds to the National Bank of Gov Alf M. Landon revealed that eight issues of Kansas municipal bonds totaling $329,000 purchased by the state school fund and held in the state treasury vaults had been forged in duplicate, making $658,000 in spurious bonds The three banks whose deposits were secured by the forged bonds, immediately were ordered closed by H W Koeneke state bank commissioner. "for examination and for protection of the depositors They are the Fidelity State and Savings bank of Emporia, of which Finney's father is president, the Eureka bank Eureka and the Farmers State bank. Neosho Falls.

2. August 24, 1933 Kansas City Journal Kansas City, MO
Article from Kansas City Journal, August 24, 1933

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W. FINNEY'S BANKS IN HANDS OF Aug. state bank sioner. announced Thursday that he had placed the banks of W. Finney, father of Ronald. in the hands the general bank ceiver. Charles Johnson. the same he said. the banking department had filed lien on the real property of Finney and stockholders the Fidelity State and Savings bank. of Emporia, and the Farmers State bank of Neosho Falls. The elder Finney was president of the banks and was the largest stockholder in them. Mr. Koeneke not estimate the losses to the depositors in the banks but intimated they might go to $500,000, or higher.

3. August 24, 1933 The Chillicothe Constitution-Tribune Chillicothe, MO
Article from The Chillicothe Constitution-Tribune, August 24, 1933

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More Against The Bond Broker and Manager, Leland Caldwell, Today. TOPEKA, Kas., Aug. Ronald Finney, unable to $50,000 bond to answer to charges issuing forged bonds, was sent to today shortly after the state banking commissioner placed two of the Finney banks into receivership. the first time the broktwice arrested, had been put hind bars. Koeneke, state bank commissioner, said he had directed Charles W. Johnson, general bank receiver, to take over the affairs the Fidelity State and Savings bank of Emporia and the Farmers State bank at Neosho Falls. A record of $20,000 check from Young Finney to Tom Boyd, state treasurer, has been discovered by Fred Harris, special prosecutor directing the investigation of the fraudulent securities. TOPEKA, Kan., Aug. Ronald Finney, Emporia bank and his Topeka office Leland Caldwell, were arrested today on sixty additional charges in connection with the Kansas forged bond scandal. Finney was arrested Emporia and brought to the Shawnee county here at the direction of county attorney Lester Goddell. Caldwell Was taken in custody here. Each of the men arrested previously on charges uttering forged bonds and released on $25,000 bail. Goddell's move today regarded calculated to increase the bond requirements of the pair, crash of whose financial skyrocket closed three banks and led to the arrest state treasurer Tom Boyd and martial law for the treasury. Doctor Makes Jackets VERONA, Wis., Aug. Sharpe, who his pharmacist, also raises Cheviot sheep from whose wool he manufactures jackets to be worn by pneumonia patients. Congestionbreaking vests of wool from these full-blooded Cheviot sheep are less irritating than others, he said.

4. August 24, 1933 Jefferson City Post-Tribune Jefferson City, MO
Article from Jefferson City Post-Tribune, August 24, 1933

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Article Text

FINNEY TO Kansas Probers Claim A $20,000 Transfer from Financier to Official TOPEKA, Kan., Aug. record of $20,000 check from Ronald Finney, central figure in the Kansas bond scandal, to Tom Boyd, state treasurer, has been was announced today by Fred Harris, special prosecutor directing investigation of the fraudulent securities. The announcement came as Finney was being arraigned after his rearrest on counts charging suance of fraudulent bonds. the bond for his release was set at $50,000. Harris, state senator named by Gov. Landon to prosecute the bond scandal cases, said that Finney's check ledger listed $20,000 check made payable to Boyd. He said no further details of the reported transaction had yet been obtained. Boyd is at liberty on $25,000 bail charges of allowing private dividuals to remove securities from treasury vaults. Lester Goodell, Shawnee county attorney, last night drove to Em poria and at m. routed young Finney from bed and returned him here face additional charges based on the Hutchinson bond for geries. Goodell also ordered the arrest of Finney's office manager, Leland Caldwell, who was held under $15,000 additional bail. He was returned to jail default of bond. Finney offered to make bail, and pending an investigation of the financial responsibility of his bondsmen was held the sheriff's office. M. H. Koenke, state bank commissioner, said he had diercted Charles W. Johnson, general bank receiver, to take over the affairs of Fidelity State and Savings Bank Emporia and the Farmers State Bank of Neosho Falls. He said he had filed lien on the real property of W. W. Finney, father Ronald and president of the two hanks, together with liens on the real property of other stockholders of the institutions. Meanwhile, court officials from Topeka were in Emporia to investigate the financial responsibility of persons offering to sign the $50,000 bond required of Ronald Finney at his arraignment.

5. August 24, 1933 Sapulpa Herald Sapulpa, OK
Article from Sapulpa Herald, August 24, 1933

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Article Text

ORDER RONALD FINNEY ARREST SIXTY ADDITIONAL CHARGES LODGED AGAINST KANSAS BROKER AND MANAGER TOPEKA, Kan., Aug. 24. (LP)-Ronold Finney, Emporia bond broker, and his Topeka office manager, Leland Caldwell, were arrested today on 60 additional charges in connection with the Kansas forged bonds scandal Finney arrested at Emporia and brought to the Shawnee county jail here at the direction of county attorney Lester Goodwell Caldwell was taken in custody here, Each of the men arrested previously on charges of uttering forged bonds and released on $25,000 bail. Goodell's move today was regarded as calculated to increase the bond requirements of the pair, crash of whose financial skyrocket closed three banks and led to the arrest of state treasurer Tom Boyd and martial law for the treasury County authorities said Finney and Caldwell would be arraigned later today. TOPEKA, Kan., Aug. 24. (LP)-Lester Goodell, Shawnee county prosecutor today ordered the arrest of Ronald Finney, Emporia broker, and his Topeka office manager, Leland Caldwell. on 60 counts of forgery Each of the men previously was arrested and released on bail on charges growing out of the Kansas forged bonds scandal. TOPEKA Kan., Aug. 24. (LP)Ronald Finney, unable to make $50,000 bond to answer charges of issuing forged bonds, was sent to jail today shortly after the state bank commissioner put two of the Finney banks in receivership. It was the first time the young Emporia broker. twice arrested, was put behind the bars. H. W. Koeneke, state bank commissioner, said he had directed Chas W. Johnson, general bank receiver, to take over the affairs of Fidelity State and Savings Bonk of Emporia and the Farmers State Bank of Neosho Falls. He said he had filed a lien on the real property of W. W. Finney, father of Ronald and president of the two banks, together with liens on the real property of other stockholders of the institutions. Meanwhile, court officials from Topeka were in Emporia to investigate the financial responsibility of persons offering to sign the $50,000 bond required of Ronald Finney at his arThe young broker and his office manager, Leland Caldwell, were arraigned today on a joint complaint against them. Each was at liberty on bond on earlier separate charges. While Finney was being arraigned, Sen. Fred Harris, special prosecutor appointed by Gov. Alf M. Landon, announced that Finney's check ledger listed a $20,000 check payable to state treasurer Tom Boyd. Harris said details of the transaction had not been learned as yet.

6. August 24, 1933 Pawhuska Journal-Capital Pawhuska, OK
Article from Pawhuska Journal-Capital, August 24, 1933

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BROKER JAILED IN KANSAS BOND DEAL Ronald Finney Unable to Raise $50,000 Bail on Forged Bond Charge TOPEKA, Kan., (U.P.)-Ronald Finney, unable to make $50,000 bond to answer charges of issuing forged bonds, was sent to jail today shortly after the state bank commissioner put two of the Finney banks in receivership. It was the first time the young Emporia broker, twice arrested, was put behind the bars. H. W. Koeneke, state bank commissioner, said he had directed Charles W. Johnson, general bank receiver, to take over the affairs of Fidelity State and Savings Bank of Emporia and the Farmers State Bank of Neosho Falls. He said he had filed a lien on the real property of W. W. Finney, father of Ronald and president of the two banks, together with liens on the real property of other stockholders of institutions. Meanwhile, court officials from Topekaywere in Emporia to investigate the financial responsibility of persons offering to sign the $50,000 bond required of Ronald Finney at his arraignment. The young broker and his office manager, Leland Caldwell, were arraigned today on a joint complaint against them. Each was at liberty on bond on earlier separate charges. While Finney was being arraigned, Sen. Fred Harris, special prosecutor appointed by Gov. Alf M. Landon, announced that Finney's check ledger listed a $20,000 check payable to State Treasurer Tom Boyd. Harris said details of the transaction had not been learned as yet.

7. September 3, 1933 The Wichita Eagle Wichita, KS
Article from The Wichita Eagle, September 3, 1933

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FINNEY SURETIES ARE VOID New York Bonding Company Denies Ever Having Heard of Bonds (Continued from Page agency had terminated number years ago." In records showed the bonds had in the treasury and that the had Harris said he unwilling to admit the claims were correct. simply tell you the claims, but not they are said. Only one of the four surety bonds was supposed to be in effect at the present time. Records showed, Harsaid, that was put up on July 1933, of the Emporia State Teachers college and allied organizations deposit in the Fidelity State & Savings bank. Three of Bonds Out The other bonds, for $15,and $40,000 were posted in the treasury 1931, and had run been for At M. Harger, chairof the board of regents, that the board July the bond to protect the coldeposit in the Emporia bank expired, furnished the "instead, bond Harger said Tom B. Boyd, state treasurer under arrest federal charge mail fraud and charge alleging $150,Donald Finney's wrote July 20 advising that the Fidelity bank had renewed surety bond to secure funds deposited by the Emporia. Teachers college and again on July 25 that the bond would expire 1934. Scores State Officials At Emporia, the state banking department taken to task by Clarence V. Beck, Lyon county torney, after an attorney for three companies which W. Finney president property recover $40,435.08, posits the had in the Fidelity State and bank. Beck said if the telephone companies judgment, would prior lien on Finney's real estate other satisfy the "Thus this money not dumped into the bank to be shared the Beck said. Charles W. state to bring similar actions for the ever appointed receiver for the Fidelity. The suits filed in behalf of Emporia Telephone the Paola Telephone company Telephone company, by Hudson, Fort Scott lawyer. At the time the Fidelity and the Farmers State bank Neosho Falls, which Warren W. Finney also president, were placed receivership on August Koeneke, notices liens were being filed against the stockholders the amount of their liability under the double liability statute.

8. June 23, 1934 Council Grove Republican Council Grove, KS
Article from Council Grove Republican, June 23, 1934

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NEW FINNEY SUIT Emporia, June Johnson, receiver for the closed Farmers State bank Neosho Falls, has filed suit in the Lyon county court for against Finney, former of the bank and fathFinney, central figure in the Kansas scanThe amount asked Finney's double liability stockholder, according the petition. similar suit already has been filed for the Fidelity state bank Emporia, another Finney bank which suspended when the scandal broke.

9. June 23, 1934 The Kansas City Times Kansas City, MO
Article from The Kansas City Times, June 23, 1934

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BANK RECEIVER SUES FINNEY. A Judgment of $14,800 Is Asked of Ex-Banker. The Star's Service.) EMPORIA, KAS., June 22.-Charles W. Johnson, receiver for the closed Farmers State Bank of Neosho Falls, has filed suit in the Lyon County district court for $14,800 against W. W Finney former president of the bank and father of Ronald Finney, central figure in the Kansas bond scandal. The amount asked covers Finney's double liability as stockholder, according to the petition. A similar suit already had been filed for the Fidelity Bank of Emporia another Finney bank closed when the bond scandal broke.