6993. Citizens State Bank (Sabetha, KS)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: March 22, 1928
Location: Sabetha, Kansas (39.902, -95.801)

Metadata

Model: gpt-5-mini
Short Digest: 32ee10f3

Response Measures

Full suspension, Books examined

Other: Receiver appointed and criminal charges/embezzlement alleged against president; bank assets sold in liquidation.

Description

Bank closed in March 1928 after heavy withdrawals/run triggered by local propaganda/rumors and the disappearance of President F. Woodbury. A receiver was later appointed (receiver bringing suits by July 1928), indicating permanent closure. Although embezzlement charges were later alleged against the president, contemporary reports attribute the immediate trigger to propaganda/rumors and the president's flight.

Events (4)

1. March 22, 1928 Run

Cause: Rumor Or Misinformation
Cause Details: Newspaper accounts report 'propaganda' and 'excitement' following suits and the disappearance/absence of President F. Woodbury that precipitated heavy withdrawals.
Measures: Bank turned affairs over to state banking department; special examiner arrived; board closed the bank.
Newspaper Excerpt: There appeared general that bank's accounts in good shape... excitement has followed the closing today of the Citizens' State Bank of Sabetha... Miller of Topeka, special examiner ... said that the bank had considerable frozen assets... The major factor contributing to the bank's failure said to been the farm loan
Source: newspapers

2. March 23, 1928 Suspension

Cause: Rumor Or Misinformation
Cause Details: Closure followed the run/withdrawals prompted by local propaganda, legal suits, and the president's disappearance; state banking department took charge of affairs.
Newspaper Excerpt: The condition the bank which turned to the state banking department... the bank was closed and Woodbury disappeared.
Source: newspapers

3. July 26, 1928 Receivership

Newspaper Excerpt: By its receiver, the Citizens State Bank of Sabetha has brought suit against Roy Kistner on four notes aggregating $11,335.78.
Source: newspapers

4. August 1, 1928 Other

Newspaper Excerpt: Former Citizens State President Is Taken Into Custody... Charges against Woodbury alleges that he embezzled ... he voluntarily returned Sabetha ... preliminary hearing set ... He said 'When the bank bad condition ... started propaganda that led run on the bank.'
Source: newspapers

Newspaper Articles (6)

1. March 22, 1928 St. Joseph News-Press St. Joseph, MO

Article from St. Joseph News-Press, March 22, 1928

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AFFIRMS Supreme Court Upholds City in curity Case. "Richard TO OPEN TODAY. received word from City the effect that the Board of Directors Orders Citizens supreme court has affirmed the judgment County State to Close Because of Frozen circuit court the case the Assets-No Run or Excitement City Joseph against Mary William Veach Previous to Failure. Wilson, E. Holme and The defendants were bondsmen SABETHA March the city's fund the defunct doors the Citizens' State Security Bank. When the city Bank failed brought suit last year, change notice on the venue taken the case tried of the institution. by before Judge Guy Park Savanboard directors. saying the The city won and bank has placed in the the appealed. The tried last and This first bank failure judgment awarded ever and.

2. March 23, 1928 The Kansas City Post Kansas City, MO

Article from The Kansas City Post, March 23, 1928

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WOODBURY NOT FOUND Absence of Closed Bank's President Mystery. KAS., March president of the Citizens State bank, remained mystery here today. Mr. Woodbury Kansas City several He then probably would sanitarium because breakdown his due the condition the bank which turned to the state banking department. Representatives the state partment today they had found criminal the bank's affairs. foreclosed number estate loans and had unable collect others take straighten out its condition, run the bank began after trial note used Sabetha his he did not know he signing note.

3. March 23, 1928 St. Joseph Gazette St. Joseph, MO

Article from St. Joseph Gazette, March 23, 1928

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TONIGHT'S CARD HAS 29 EVENTS 400 Public School Athletes Will Compete in Carnival at Auditorium. RIGID SCHEDULE ARRANGED Meet to Be Speeded Up, With Preliminaries Beginning at 6:30 'Clock. The bigget track and field event of the year fifth annual Public School Athletic Carnival- which more than 400 young athletes will compete for prizes, is scheduled for tonight at the Auditorium The first call for preliminary heats echo' through big hall and if plans do not awry, athletes will ready that an task for those in charge of the meet to event in its proper order that time utilized to the Speed cision running off events in the meet are otherwise might be performing until the hours. events will speeded through between the More 400 athletes will have given best efforts in this length of time and more than sixty medals and have award ed. they have their to In other years the meet has been on with and there is no rea. why not be this year are against the records, six of which stood 1924 the meet first was held broken with abandon by athletes last year and might not be surprising to see more records bettered to night. There will be four special events the program high school athletes. While track practice the high schools has been slow getting under account season, three high schools will have They will com pete the dash, 1,000-yard run, relay and hurdles. excitement has followed the closing today of the Citizens' State Bank of Sabetha although there had no inkling of the meeting last There appeared general that bank's accounts in good shape and that funds any way would brought There on the bank preceding the closappeared doubtful however whether the depositors could be paid in full. Miller of Topeka, special examiner who arrived here today took the affairs of the bank, refused make stateas to the bank's condition, but it was that the bank had considerable frozen assets, making unlikely that the bank its The major factor contributing to the bank's fhilure said to been the farm loan Deposits $575,000 The statement showed déposits $575,000 and loans $480,000. The capital was $50,000 and the surplus $20,000. Chief interest centered in the whereabouts of F. Woodbury, president of the bank, who to be out of town. His son, Hilton Woodbuty was the bank, said that his father had gone to Kansas City, at the bank and was said have of the board directors last night First Bank Failure. The the State Bank was the first failure the of Sabetha The Sabetha Pawnee Rock Neb., purchased the controlling interest 1913. The vice-president. of the bank Burke, and the cashier, Jack Fisher Both are have indicated that the closing solely frozen assets There two other banks here the National Bank Sabetha and Farmers' State Bank The Citizens State Bank the second largest Sabetha To: day's failure had no apparent fect on the two other banks

4. March 25, 1928 Kirksville Daily Express and Kirksville Daily News Kirksville, MO

Article from Kirksville Daily Express and Kirksville Daily News, March 25, 1928

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REPORTS MISSING BANKER HAD BEEN THREATENED Sabetha. Kas. Mar 24 (UP) Threats made against F. Woodbury. missing president of the defunct citizens State Bank here, it was learned from friends as search for the banker continued unsuccessfully today Men whose farms had been the objeet of bank foreclosures were said to have threatened the life of Wood bury when the bank lost suit on note in Falls City, Neb. recently Immediately after the law suit was lost the bank was closed and Woodbury disappeared. He was known to have gone to Kansas City from here early this week and since then his whereabouts has been unknown Bodies of Family of Found. Lake Victor. Tex Mar 24 (UP) The bodies Mr and Mrs. Marshal Schelbin and their two small children. were found at their farm home near here today They had been shot to death After an investigation, authorities expressed the belief that Schelbin had shot and killed his wife and children and then committed suicide.

5. July 26, 1928 The Goffs Advance Goff, KS

Article from The Goffs Advance, July 26, 1928

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County Seat News (From The Courier Tribune) THE BANKERS URGE STATEMENTS FROM ALL Necessary to Establish Credit and Show Results of Operation Every business man-which includes farmers, of course-should make out a financial statement for his banker. This was the substance of tae talk by H. H. Mohler, cashier of the Stockyards Bank of St. Joseph before members of the Nemaha County Bankers Association at the Sabetha Country Club Thursday night. Mr. Mohler pointed out that such statements are not only required by the state and federal banking law on the part of customers who wish to borrow, but they are vital to every man who is prudent and wants to know whether he is doing business or farming at a profit or loss. Members of the Seneca Panks who attended the Sabetha meeting said that it was more of a social nature than a discussion of banking policy. The bankers of Nemaha county have adopted a hog sanitation project for the work of the agricultural committee this year. John McCoy for Senator from the Nemaha-Pottawatomie District. Be careful when you go to vote for congressman. There are eight candidates. Ewing Herbert's name in Nemaha county appears in seventh place, near the bottom of the list. 12tf RECEIVERSHIP SUES ROY KISTNER ON NOTES Three More Suits Added to Heavy Court Docket. By its receiver, the Citizens State Bank of Sabetha has brought suit against Roy Kistner on four notes ag. gregating $11,335.78. Roy Kistner, Sabetha minister and auctioneer, became in later years, proprietor of a produce business. Kistner became indebted to the bank in March 1, 1926 for $6,000. To secure this sum he gave a mortgage on 15.45 acres of real estate, and it was also agreed, according to the petition on file in court, that the mortgage should also cover an additional $4,000 of advancements made by the bank. The receiver tells the court that on September 7, 1927, the bank loaned Kistner $800 on which he is entitled to a credit of $64.22; on September 10. 1927, loaned him $1600; on March 1, 1926 loaned him $1,000 and on May 23, 1927 $2,000. N. Rasmus, Topeka, who bought the remaining assets of the Wetmore State Bank in the final liquidation, has bro't action against Emil Hanni on a note for $1060, dated January 23, 1926. The defendants are credited with a pay. ment of $325.68. Ed. Weyer of the Centralia vicinity sues James Prokop for a cancellation of contract and right to take possession of the northeast quarter of 11-5-11. On Sept. 30, 1925, Mr. Weyer made a deal with Mr. Prokop in which he traded the land involved to Mr. Prokop for a farm in Howell county. Mo. and a further cash consideration of eight payments of $400 each. Mr. Weyer informs the court the defendant has not complied with the terms of the contract which calls for punotual payments and for payment of taxes. He asks that the contract be set at naught and possession of the premises restored to him.

6. August 1, 1928 St. Joseph News-Press St. Joseph, MO

Article from St. Joseph News-Press, August 1, 1928

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WOODBURY TAKEN Former Citizens State President Is Taken Into Custody. TWO CHARGES ARE ALLEGED Preliminary Hearing Is Set for Aug. and Bond Is Fixed at $3,000. Special Kan., Aug. Woodbury, former president of the Citizens Bank of Sabetha, voluntarily returned Sabetha Sunday night after absence four spent, reported, the coast. mained his for When Sheriff Charles heard return rested the bank officer last night charging under The come plaint signed by Harry Lan. ning, attorney of Ne. County Woodbury brought before Justice Ellis of fixed of the preliminary hearing for Aug. and bond $3,000. furnished sureties. The Charges. The against Woodbury alleges that his $1,284 from the Shintafthe other that he embezzled the bank the night he hastily left his and with his Hilton Today told that he all his the bank. He matter up faces the He that check the $2,000 which the the night left This check, the celver of the bank and the county never has been found. face crimundisguised by Sheriff Carman County Lanning. For they have under by Sabetha people who demanded effort effect the return of missing banker. cause they obliged to keep Woodbury from knowing been issued his rest they found It. necessary to work under cover. Says He Didn't Run Away. his own part detoday that did run said "When the bank bad condition and shape the situaaway and rest sick Then when ready return connectthe delayed Collins, assistant receiver the another glad Woodbury he bank's affairs tangled condition man who holds key to many he would with Collins assist him the civil alleging fraud which been filed the district court of Nemaha County In connection these suits said the plainknow each every that their claims unjust, and that shown the proper Woodbury had employed attorney today but was seek- Cause of Bank's Failure. He talked guardedly. When asked brought about downfall his bank immediate the the W. Williamson in the courts City. Thereupon started propaganda that led run bank which left where felt couldn't continue. be thing clear," Woodbury certain humiliation in being called answer criminal prosecution, take satisfaction in the knowledge that not guilty any and able clear mycourt. would have been home two three weeks sooner know there was a warrant for