7001. Salina State Bank (Salina, KS)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1919*
Location
Salina, Kansas (38.840, -97.611)

Metadata

Model
gpt-5-mini
Short Digest
651502e1

Response Measures

None

Description

Articles describe the Salina State Bank as having failed and been placed in receivership in 1919 because of embezzlement/defalcation. There is discussion of payments to the state bank commissioner and a receiver (Fitzpatrick). No article describes a depositor run; therefore this is a suspension/closure with receivership (no run). A 1922 article references the 1919 receivership in connection with litigation.

Events (2)

1. January 1, 1919* Receivership
Newspaper Excerpt
the Salina institution prior to the receivership of the latter in 1919.
Source
newspapers
2. July 1, 1919* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Embezzlement/defalcation by bank insiders (references to Felix Broeker, alleged defaulters, and efforts to make restitution).
Newspaper Excerpt
Big Salina Failure Discussed... liabilities and assets of the defunct bank... Receiver Fitzpatrick
Source
newspapers

Newspaper Articles (3)

Article from The Topeka State Journal, July 11, 1919

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Article Text

He Brought $10,000 Which He Turned Over to Wilson. Big Salina Failure Discussed Behind Closed Doors. WILSON MAKES A STATEMENT He Believes Losses Will Be Smaller Than Estimated. Broeker Blames Hopkins for Inability To Pay. Felix Broeker-in the spotlight of the Kansas State bank failure at Salina-gave unexpected color to the meeting of the executive committee of the Kansas State Bankers' association today when he walked into the office of Walter E. Wilson, state bank commissioner, and laid down $10,000. The money is to be used to meet deficits of the bank. Members of the committee voted in executive session not to hear Broeker. Committee members came to To- of today to go into the details peka the Salina bank trouble. Practically is atevery member of the committee being tending the meeting which is held behind closed doors. Liabilities and and assets of the defunct bank bethe state bank guaranty fund are Aldiscussed in detail. Governor len ing and R. J. Hopkins, attorney gen- coneral. were invited to attend the reFitzpatrick, ceiver ference. of the Col. Salina Fred bank, called at the state department during the con- the ference but did not participate in discussion. Wilson Before Committee. Walter E. Wilson, state bank commissioner, went before the committee He disthe afternoon session. during the Salina situation in detail. cussed 'Every phase of the Salina situation clear and clean cut from a before legal is standpoint." Wilson said just have he went ta the conference. "I kept every detail before R. J. Hop- the kins, the attorney general. since had day he entered office. He has the counsel and advice of John Hunt, who former assistant attorney general, knows every phase of the situation." Commissioner Wilson stated that in h's-judgment the losses of the Salina institution would be far below estimetes. "It seems certain at this time that assessment must be levied against the an guaranty fund," said the commissioner, "but it will doubtless be much less than the $200,000 or $250,000 estimated Receiver Fitzpatrick, who returned today from Nebraska, has found Lefferdink's land to be worth much more than originally estimated. If we are successful in realizing less on equities in various properties. the will not be nearly as large as originally estimated Make Changes in Law. As a result of today's conference, it is probable that strong efforts will be made to induce the next legislature to make changes in the present guaranty act. Bankers whose institutions are protected by the fund, will doubtless ask that provision be made for appointment of a committee of such bankers to act with the state commissioner and receiver in adjusting affairs of a guaranteed bank when its doors are closed. No such committee is to be asked for the Salina bank. it was stated. There was doubt in the minds of committee members as to the course which would be taken in asking either Governor Allen or Attorney General to talk st the Hopkins afternoon ses- dission. Several bankers opposed a cussion by these officials. George W. Hanna, of Clay Center, president of the State Bankers association, asserted this afternoon that main purpose of today's meeting to to the bottom of was the get the Salina trouble. He said the executive committee has previously discussed the trouble with Commissioner Wilson, but that no meetings have been held since the first of the year. Trouble Inherited. "The trouble at Salina was inherited from the Benson administration," said Hanna. "Thruout last year Commissioner Wilson advised with the com. mittee as to the condition of the bank. During the legislative session it was impossible to hold a meeting and this is the first conference since the first of the year." Immediately following the opening of today's conference the committee went into executive session. It'was a popular move. The committee not only went into executive session-it stayed there. In the meantime Broeker sat in the bank commissioner's office awaiting a call before the committee. He did not request a hearing, but said he would talk if invited to make a statement. Committee members, however, voted not to hear him. That the shortages of the Salina bank would have been protected except for the action of Attorney General Hopkins, was the text of a statement made by Broeker while in Towas arrested Broeker today. peka while in Kansas City, where he had been invited to attend a conference with state officials. Prepared to Pay $200,000. "My attorney was due in Kansas City Sunday and arrived at that time," said Mr. wired Broeker. and called "However, Hopkins me me over the long and to distance telephone urged me (Continued on Page Two.)


Article from The Topeka State Journal, July 12, 1919

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Article Text

Kansas Bankers Ask Allen Rather Ticklish Question. Wonder Why He Paroled Abilene Bank Defaulter. SALINA CASE IS DISCUSSED Broeker Refused a HearingW. E. Wilson Is Endorsed. State Committee Favored the Course Hopkins Didn't Take. Friday wasn't exactly a lucky day for R. J. Hopkins, attorney general. The executive committee of the Kansas State Bankers' association came to Topeka to talk over the Salina bank case and endorsed every course which the attorney general had nót taken. Governor Allen WS asked why he paroled John A. Flack and a generally pleasant day was spent in Topeka by some twenty state bankers. In the probe of the Kansas State bank trouble at Salina, there were all manner of sidelights. The committee took the view that since the bankers were paying the bills which might accumulate as a result of the Salina trouble that the general public should leave most of the worrying to the bankers. They endorsed the action of Walter E. Wilson, state bank commissioner, in trying to force alleged defaulters to restore the funds of the bank before arrests were made. Approval was given as to the workings of the bank guaranty fund and demand was made that the law be strengthened The action of the bankers in approving the Wilson plan of handling the situation verified reports that the state bank commissioner had kept his action before committee members. On the other hand the bankers forgot entirely to mention the work of R. J. Hopkins, attorney general. It was Hopkins who had caused the arrest of Felix Broeker in Kansas City, which blocked a payment of $200,000 into the bank fund by Broeker's associates. Comm ssioner Wilson and Receiver Fitzpatrick had planned to arrest Broeker after the money was paid. Why Parole Flack? Governor Allen and Attorney General Hopkins attended the conference of the executive committee. Hopkins did not speak before the committee, altho Governor Allen asserted that he proposed an investigation of the SaTna failure and the method of handling its affairs after the bank commissioner had completed his work. One of the first questions asked of the governor was his reason for paroling John A. Flack, Abilene bank defaulter, without discussing the matter with the Kansas bankers. The governor replied that he thought the conference was to discuss the Salina situation. He said that Flack might be returned if such a course would aid in meeting the Salina trouble. have discussed the Salina bank situation with the bank commissioner several times and I have criticised his actions in it." Governor Allen is reported to have said. "When the bank failed Mr. Wilson had the natural reaction of the bankers. This was to get the money. He did everything he could to get the money back into the bank and the guilty persons who had stolen the money got away. Hanna, Cobb and Macferran. A committee composed of Geo. W Hanna. of Clay Center: S. E. Cobb and William Macferran, of Topeka, will co-operate with the bank commissioner in the handling of the affairs of the Salina bank. They will represent the state banks and banks interested in the guaranty fund. Felix Brocker, arrested recently in connection with the closing of the Salina bank, paid $10.000 to Commissioner Wilson a short time before the committee CC nference. Broeker said he was willing to make a statement before the committee. In executive session, however, the committee refused to hear the alleged bank wreeker. Committee's Statement. A formal statement, issued by the bankers and approving methods of the handling the bank situation, folJows: After a full discussion, we were of the opinion that the bank commissioner acted in absolutely good faith In deferring arrests while the parties concerned in the wreeking of the bank were making restitution of a part or all of the embezzlement. Our faith in the guaranty law is unshaken, and we congratulate the legislature that passed the bill. and also the depositors caught in this, the second failed bank under its protection. As was the case with the Abilene failure. not one of its legitimate depositors will lose a dollar or either principal or interest. and as was the ense at Abilene. not a depositor in the other banks of either city or any other city in the state was in the slightest disturbed or uneasy Notwithstanding this deplorable event, perfect tranquility reigns among depositors of the guaranteed banks of the state, and business goes right on as isual. a strong indication that this law has stabilized the banking business in Kansas, and It would be so if a dozen such failures were to occur tomorrow There is over $25,000,000 back of this guarantee fund. The bankers pay the bill and the people are letting them do the worrying We indorse the law more strongly than ever the we are fully convinced it. needs some amendment


Article from The Topeka State Journal, July 22, 1922

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Article Text

The Girls Scouts of Wamego, who A is M 'A out been have camp at Maple Hill for the last week, returned home Friday evening. W. Y. Morgan, candidate for governor of Kansas. will speak on good citizenship, Sunday evening, at 8:15 o'clock at St. John's A. M. E. church. Miss Helen Shirk will take twelve members of her Sunday school class of Westminster Presbyterian church to the Y. W. C. A. camp at Maple Hill next Saturday and Sunday. The Rev. W H Leyburn, offce executive of the Kansas Baptist convention, will have charge of the Sunday morning services at the Quinton Heights Baptist church About 1,000 persons attended the picnic of the Fraternal Aid Union held Friday night at Ripley park. A chicken supper, minstrel show and dancing composed the program. Proposed state compensation will be discussed at the next meeting of Capital Post No. 1, American Legion, Thursday evening. A special committee to work for the proposed legislation will be appointed. The First Church King's Heralds are planning to give their annual ice cream festival August 4 on Mrs. B. M. Davies' lawn at the corner of Sixth and Harrison. The proceeds this year will go to the children of Korea. Dan H. Case, a former Topekan and son of Mr. and Mrs. Hib Case, who has been a resident of Maui, Hawaii, for the last twenty years, has been appointed judge of the circuit court for the second judicial circuit of Hawaii territory. The First State Bank of Fredericksburg, Ia., today filed suit in the federal court here to collect $6,202 from the Salina State bank, the amount of a certificate of deposit which the First State claims to have purchased from the Salina institution prior to the receivership of the latter in 1919. A crew of repair men are now engaged in overhauling and repairing the desks in several of the Topeka schools, according to R. W. Elliott, city superintendent of school buildings. The schools which will be visited by the repair crew are: Branner, Garfield, Lafayette, Quinton Heights and State. The pathfinder committee of the Kansas City Chamber of Commerce held a conference this afternoon with Guy C. Sickler, secretary of the Topeka Chamber of Commerce, in regard to trade extension trip thru Kansas the early part of September. The party will probably be in Topeka on "& September E. H Hogueland, commerce counsel of the Topeka Traffic association, returned today from a vacation trip to Minnesota. Charles F Real, secretary of the association, will leave Sun01 dj.n motor weeks OM1 B JOJ day Colorado. His place at the office of the association will be taken during his absence by Willard W. Bowman. A complaint charging Walter Armagost, now under arrest at Winfield, Kan., with violation of the Mann act, was filed in the federal court today by Al F Williams, United States district attorney. Armagost is alleged to have transported Mrs. Grace Celia Battles from Mercer, Penn., to Longton, Kan., for immoral purposes, in February, 1921. Al F Williams, United States district attorney for Kansas, today filed suit in the federal court to deprive Max Kloetzer, formerly of Leavenworth, of his American citizenship. Kloetzer was admitted to citizenship in 1888. A year later, Williams recites, he returned to Germany and has resided there ever since, without any intention of returning to this country. Fifteen Topekans will attend the national convention of Printing House Craftsmen of America, which will ne Septem A 01 82 AnSust Boston up held ber 2. The local delegates are: S. Buttwell, E. N. Rodell, Robert Booth H is H N Waxwell Alfred Ashton, Con Van Natta, Vern Kanatzer, E. H. Happe, E. L. Wharton, A. M. Officer, M. C. Pennekamp, Harry Brockman, Clyde Rowe and Arthur Graham. The offices of the Victory Highway association, which have been located at 630 Kansas avenue, over the Stansfield drug store, are being removed today to the plant of the Imes Motor company at Eleventh street and Kansas avenue. The Imes brothers have donated the use of floor space on the ground floor of the building. for the installation of the office, which includes an information bureau for the benefit of tourists. Mrs. M. A. Brown is in charge of the office and is supervising the moving operations. The annual convention of the KanState Sunday School association for sas 1923 will be held in Wichita during the first week in May. Noted religious and educational workers who have been asked to attend the meeting are: Dr. Hugh S. Magill, general secretary of the International Sunday School council of religious education; Miss Margaret Slattery, W. S. Bovard, general secretary o f the national board of Sunday schools; J. H. Engle, general secretary of the Michigan Sunday School association; Prof. Walter Athearn; Prof. Augustine Smith of Boston university, and Dr. D. W. Kurtz. More than 2,500 persons will probably attend the convention, according to Frank G. Richard, general secretary of the Kansas Sunday School association. A silk flag presented by the Kansas City Star to the Kansas delegates to the International Sunday School convention in Kansas City is now on display in the offices of the Kansas State Sunday School association. The flag was presented for perfect attendance. Five states. one province of Canada and Cuba received attendance flags. Members of the Seymour club who IIIH Malile 'V 'D 'M 'I the attend IIIM camp today and Sunday underthe supervision of Miss Hilda Dyer, directoress, are: Miss Mabel Frost, Miss Price: Miss Oille Eisele, Miss