Citizens & Farmers State Bank (Arkansas City, KS)

Episode Information

Episode UID
7256770991307
Episode Type
Suspension โ†’ Closure
Bank Type
state
Bank ID
725677099 hash
Start Date
November 6, 1908
Location
Arkansas City, Kansas (37.062, -97.038)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ba3f476877a64e28

Response Measures

None

Description

Closed by state bank commissioner and wound up by appointed deputy/receiver; failure due to bad loans to Wells Produce Co.

Events (1)

1. November 6, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank taken into custody after discovery of large bad loans to the C. T. Wells Produce Company (about $80,000 short).
Newspaper Excerpt
This bank is closed pending an investigation of its affairs. The bank commissioner has been notified and is in full-charge.
Source
newspapers

Newspaper Articles (20)

Article from Santa Fe New Mexican, November 6, 1908

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KANSAS BANK CLOSES ITS DOORS Suspension of State Institution at Arkansas City Causes a Sensation. Arkansas City, Kans., Nov. 6.-The Citizens and Farmers State Bank has closed its doors, The first information of its suspension was a notice posted on the locked door signed by all the officers this morning. The notice read: "This bank is closed pending an investigation of its affairs. The bank commissioner has been notified and is in full-charge. Full particulars will be given out at the earliest possible moment after his arrival." William A. Allison, president of the bank. resides in Kansas City and the c'osing of the bank this morning followed the return of Cashier Sanders from a visit to that city.


Article from The Vinita Daily Chieftain, November 6, 1908

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CLDSED PENDING AN INVESTIGATION Bank at Arkansas City Closes its Doors-President and Several Officials in Kansas City By Associated Press Arkansas City, Kans., Nov. 6-The Citizens and Farmers State bank closed it's doors here this morning. The first information of the suspension of business was the notice, posted on the locked door of the 'sank, reading as follows: "This bank is closed pending an investigation of it's affairs. The bank commissioner has been notified. and is in full charge. The full particulars will be given out at the earliest possible moment after his arrival." A. F. Thomason. vice-president, N. D. Sanders cashier, G. Luther Brown, C.L. Thurston. Thomas Baird, directors and William A. Wilson president of the bank reside in Kansas City,


Article from Palestine Daily Herald, November 6, 1908

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ANOTHER BANK CLOSED Prosperity Following Election of Taft Had Not Reached Kansas Institution. Special to the Herald. Arkansas City, Kas., Nov. 6.-The Citizens and Farmers' State Bank closed its doors this morning. The officials posted a note saying the bank was closed for an investigation of its affairs. The bank commissioner is in charge. The closing followed the return of Cashier Sanders from Kansas City, where President Wilson lives. No information has been given out and the people who had deposits in the bank are almost in a panic.


Article from The Chickasha Daily Express, November 7, 1908

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KANSAS BANK IS CLOSED Arkansas City, Kan., Nov. 6.-The Citizens and Farmers' State Bank closed here this morning. The first intimation of a suspension of business was a notice posted on the locked door of the bank, which read as follows: 1001 "This bank is closed pending an investigation of its affairs by the bank commissioner, who has been notified and is in full charge charge. Full particulars will be given out at the earliest possible moment after his arrival." The notice is signed by A. F. Thompson, vice president: N. D. Sanders, cashier; G. Luther Brown, C. T. Thurston and Thomas Baird, directors. William A. Wilson, the president of the bank, resides in Kansas City, Mo.


Article from Los Angeles Herald, November 7, 1908

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ARKANSAS CITY BANK IS CLOSED PENDING INQUIRY Kansas Institution Suspended Suddenly, and Commissioner Is Placed in Charge to Investigate Affairs ARKANSAS CITY, Kas., Nov. 6.The Citizens and Farmers State bank closed its doors here this morning, the following notice being posted: "This bank is closed pending an investigation of affairs. The bank commissioner has been notified and is in full charge. Full particulars will be given out at the earliest possible moment after his arrival." William A. Wilson, president of the bank, resides in Kansas City, and the closing of the bank this morning followed the return of Mr. Sanders, the cashier, from a visit to that city.


Article from Omaha Daily Bee, November 7, 1908

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Arkansas Bank Closed. ARKANSAS CITY, Kan., Nov. 6.-The Citizens and Farmers State bank closed ts doors here this morning, the first inormation of its suspension of business being a notice posted on the locked door of the bank.


Article from Palestine Daily Herald, November 7, 1908

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BANK MAY PAY IN FULL Believed the Arkansas City Citizens and Farmers' Bank Will Make All Obligations Good Special to the Herald. Arkansas City, Kas., Nov. 7.-It is now believed that the Citizens and Farmers' Bank, which was closed yesterday for an investigation, will pay the depositors in full. The directors announce that the bank has much cash and available assets. It is announced by Cashier Sanders that heavy loans to the Wells Produce Plant caused the suspension of the bank.


Article from The Topeka State Journal, November 9, 1908

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ROYCE NAMES MORSE. Phillipsburg Man Will Take Charge of Arkansas City Bank. John Q. Royce, state bank commission, performed his last official act today by appointing J. R. Morse of Phillipsburg as special deputy to take charge of the Citizens' & Farmers' bank at Arkansas City, which was found to be $80,000 short on account of bad loans to the Wells Produce company. The bank was taken charge of by the state department several days ago, and W. T. Bates, a regular deputy, placed in charge. Mr. Morse is president of the Phillips County State bank, and has been a banker for 30 years. He will not resign his position with the Phillipsburg bank, but will hold it during the time he is straightening out the Arkansas City tangle. Under the new banking law, the state appoints a special deputy bank examiner on a regular salary to wind up closed banks, and the law gives three months for this work. This system saves an expensive and tedious receivership. The bank is wound up in three months, and the depositors paid off as far as the assets will permit. On November 10, Mr. Royce's resignation as state bank commissioner takes effect, and he says: "I appointed Mr. Morse because I believe he will be a fine man to handle this work, and because I wanted to get this bank wound up in the best shape possible. It is my last official act, and I wanted it to be my best. Many applications for the position of special deputy were received from Arkansas City people, but I wanted an outside man SO that he would be able to act absolutely without prejudice, fear or favor."


Article from Abilene Weekly Reflector, November 12, 1908

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To Wind Up a Kansas Bank. Topeka, Kan., Nov. 10.-J. F. Morse of Phillipsburg, Kan., has been named by the bank commissioner, J. Q. Royce, to settle the affairs of the Citizens' & Farmers' bank of Arkansas City, Kan. Under the new law Mr. Morse is not known as a receiver although his duties are the same. He will be paid the same salary as a deputy bank examiner.


Article from River Falls Journal, November 12, 1908

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An express train was derailed near Grisolles, France, and ten persons were killed and many were injured. An explosion at the mine of Col. W. P. Bond, three miles west of Benton, Ill., wrecked the shaft, and as a result four shot firers were entombed and probably killed. Vice-President-elect Sherman forwarded to Albany for filing with the secretary of state, a statement of his expenses in the campaign just closed. It showed his expenditures to have been $2,800. The second squadron of the American battleship fleet left Amoy for the Philippines. The freight steamer B. M. Whitney of the Metropolitan Steamship line was sunk in the East river while on her way to Boston. The loss on vessel and cargo is about $800,000. The Union Telephone & Telegraph Company, having a telephone system in Rock Island and Moline, Ill., and at Davenport, Ia., and capitalized $550,000, went into the hands of a receiver on an application filed by the American Trust and Savings bank of Chicago. A small steamer carrying 600 passengers from Amoy to Tungan, China, sank and 200 of the passengers were drowned. Thrilling escapes and heroic work by a Costa Rican student, Rubena Herrera, marked a fire which burned to the ground the Bliss Electric school in North Takoma, a suburb of Washington. James T. Mulhall was sentenced to 15 months at the federal prison at Leavenworth, Kan.; Edgar McConkey to one year and one day at Leavenworth, and Felix Nathanson to six months in the county jail by Judge Milton Purdy at Minneapolis for fraudulent operation of the Nicollet Creamery Company. Talk of the election of Theodore Roosevelt to the United States senate to succeed Senator Platt of New York was revived in Washington. The Japanese steamer Taish Maru sank in a storm and 150 persons were drowned. The general committee of foreign missions of the Methodist Episcopal church, at its session in St. Louis, began the work of itemizing the appropriations for the year 1909, after voting to appropriate a total of $1,060,578. John Cooper, a student at the University of North Carolina, and a member of the 'varsity football eleven, who was injured during the preliminary practice of the team in September, is dead. Two women and five children perished in a burning farmhouse near Swan Lake, Man. Chancellor E. Benjamin Andrews of the University of Nebraska resigned, to take effect January 1. The people of Plauen, Germany, were terrified by a violent earthquake shock. The Citizens' and Farmers' State bank of Arkansas City, Kan., closed its doors. The suit to oust the Western Trust and Savings bank of Chicago as trustee of the $10,000,000 bond issue of the Chicago & Milwaukee Electric Railroad Company was begun in Milwaukee by Alexander Beaubien, a bondholder. Boston's park system fund has been increased by more than $4,000,000 by the terms of George F. Parkman's will, made 30 years ago. Mount McCulloch, which last year thrust its head up from the center of Bogaslov island, 60 miles west of Unalaska, has disappeared in the throes of another volcanic change. Many mills and factories that have been running on half time have begun operating on full time. While attempting to arrest Jesse Rice, a negro, at Riverside, Pa., Constable George Brown shot him dead and was himself fatally shot in the abdomen by the negro. Phil Short, one of the best known newspaper men in North Dakota, was shot and killed by Clayton Yeakins while they were hunting deer in Mc-


Article from Perrysburg Journal, November 13, 1908

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four shot firers were entombed and probably killed. Vice-President-elect Sherman forto Albany for filing with the of state, a in the campaign secretary warded expenses statement just closed. of his It showed his expenditures to have been $2,800. The second squadron of the American battleship fleet left Amoy for the Philippines. The freight steamer B. M. Whitney of the Metropolitan Steamship line was sunk in the East river while on her way to Boston. The loss on vessel and cargo is about $800,000. The Union Telephone & Telegraph Company, having a telephone system in Rock Island and Moline, Ill., and Ia., and capitalized went into the a re$550,000. Davenport, hands filed of by the at ceiver on an application American Trust and Savings bank of Chicago. A small steamer carrying 600 passengers from Amoy to Tungan, China, sank and 200 of the passengers were drowned. Thrilling escapes and heroic work Costa Rican student, Rubena marked a fire by Herrera, a Electric which burned school to the ground the Bliss in North Takoma, a suburb of Washington. James T. Mulhall was sentenced to 15 at the federal Kan.; Edgar Leavenworth, months prison McConkey at to and one day at Leavenand Felix worth, one year Nathanson by to Judge six months in the county jail at of the fraudulent Milton Purdy operation Minneapolis Nicollet for Creamery Company. Talk of the election of Theodore Roosevelt to the United States senate to succeed Senator Platt of New York was revived in Washington. The Japanese steamer Taish Maru sank in a storm and 150 persons were drowned. The general committee of foreign missions of the Methodist Episcopal at its session in St. Louis, bework of itemizing approfor the year 1909, priations church, gan the the after voting to appropriate a total of $1,060,578. John Cooper, a student at the Uniof North Carolina, a ber the 'varsity football versity of and eleven, memwho was injured during the preliminary practice of the team in September, is dead. and five children perished in a Two women burning farmhouse near Swan Lake, Man. Chancellor E. Benjamin Andrews of the University of Nebraska resigned, to take effect January 1. The people of Plauen, Germany, were terrified by a violent earthquake shock. The Citizens' and Farmers' State bank of Arkansas City, Kan., closed its doors. The suit to oust the Western Trust and bank of as tee bond of Savings the $10,000,000 Chicago issue of Rail- trus- the & Milwaukee Electric road was begun Chicago Company in Milwau- bondkee by Alexander Beaubien, a holder. Boston's park system fund has been increased by more than $4,000,000 by the terms of George F. Parkman's will, made 30 years ago. which last year its head up from the thrust Mount McCulloch, center of of Bogaslov island, 60 miles west the Unalaska, has disappeared in throes of another volcanic change. mills and factories that have on half time been Many running time. have begun operating on full While attempting to arrest Jesse Rice, a negro, at Riverside, Pa., ConBrown shot himself fatally stable and was George shot him in dead the abdomen by the negro. Phil Short, one of the best known newspaper men in North Dakota, was shot and killed by Clayton Yeakins while they were hunting deer in McKenzie county, N. D. John Hagen, a hotel keeper at Scranton, N. Y., killed his wife and son and attempted suicide. Nine laborers were killed by a premature blast on the Grand Trunk Pacific road near Louis Prince Dryden, d'Orleans-Braganza Man. Bourbonand Princess Maria-Pia of Sicily, were married at Cannes, France. Business property valued at $500,000 was destroyed by fire in Pembroke, Ont. Near Jefferson City, Tenn., Victor McMahon, a prominent farmer, probably fatally shot Mrs. John Wilkes, the wife of a tenant on his farm, while shooting at her husband. Wilkes then emptied the contents of a shotgun into McMahon's breast. Israel Janesson, former cashier of in Lindersburg, bank Sweden, Yankee who a was arrested by a detective at Bush Pa. has it is alleged made a


Article from The Ely Miner, November 13, 1908

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P. Bond, three miles west of Benton, III., wrecked the shaft, and as a result four shot firers were entombed and probably killed. Vice-President-elect Sherman forwarded to Albany for filing with the secretary of state, a statement of his expenses in the campaign just closed. It showed his expenditures to have been $2,800. The second squadron of the Amer ican battleship fleet left Amoy for the Philippines. The freight steamer B. M. Whitney of the Metropolitan Steamship line was sunk in the East river while on her way to Boston. The loss on vessel and cargo is about $800,000. The Union Telephone & Telegraph Company, having a telephone system in Rock Island and Moline, Ill., and Davenport, Ia., and capitalized at $550,000, went into the hands of a receiver on an application filed by the American Trust and Savings bank of Chicago. A small steamer carrying 600 passengers from Amoy to Tungan, China, sank and 200 of the passengers were drowned. Thrilling escapes and heroic work by a Costa Rican student, Rubena Herrera, marked a fire which burned to the ground the Bliss Electric school in North Takoma, a suburb of Washington. James T. Mulhall was sentenced to 15 months at the federal prison at Leavenworth, Kan.; Edgar McConkey to one year and one day at Leavenworth, and Felix Nathanson to six months in the county by Judge Milton Purdy at Minneapolis for fraudulent operation of the Nicollet Creamery Company. Talk of the election of Theodore Roosevelt to the United States senate to succeed Senator Platt of New York was revived in Washington. The Japanese steamer Taish Maru sank in a storm and 150 persons were drowned. The general committee of foreign missions of the Methodist Episcopal church, at its session in St. Louis, began the work of itemizing the appropriations for the year 1909, after voting to appropriate a total of $1,060,578. John Cooper, a student at the University of North Carolina, and a member of the 'varsity football eleven, who was injured during the preliminary practice of the team in September, is dead. Two women and five children perished in a burning farmhouse near Swan Lake, Man. Chancellor E. Benjamin Andrews of the University of Nebraska resigned, to take effect January 1. The people of Plauen, Germany, were terrified by a violent earthquake shock. The Citizens' and Farmers' State bank of Arkansas City, Kan., closed its doors. The suit to oust the Western Trust and Savings bank of Chicago as trustee of the $10,000,000 bond issue of the Chicago & Milwaukee Electric Railroad Company was begun in Milwaukee by Alexander Beaubien, a bondholder. Boston's park system fund has been increased by more than $4,000,000 by the terms of George F. Parkman's will, made 30 years ago. Mount McCulloch, which last year thrust its head up from the center of Bogaslov island, 60 miles west of Unalaska, has disappeared in the throes of another volcanic change. Many mills and factories that have been running on half time have begun operating on full time. While attempting to arrest Jesse Rice, a negro, at Riverside, Pa., Constable George Brown shot him dead and was himself fatally shot in the abdomen by the negro. Phil Short, one of the best known newspaper men in North Dakota, was shot and killed by Clayton Yeakins while they were hunting deer in McKenzie county, N. D. John Hagen, a hotel keeper at Scranton, N. Y., killed his wife and son and attempted suicide. Nine laborers were killed by a premature blast on the Grand Trunk Pacific road near Dryden, Man. Prince Louis d'Orleans-Braganza and Princess Maria-Pia of BourbonSicily, were married at Cannes, France. Business property valued at $500,000 was destroyed by fire in Pembroke, Ont. Near Jefferson City, Tenn., Victor McMahon, a prominent farmer, probably fatally shot Mrs. John Wilkes, the wife of a tenant on his farm, while shooting at her husband. Wilkes then emptied the contents of a shotgun into McMahon's breast. Israel Janesson, former cashier of a bank in Lindersburg, Sweden, who was arrested by a detective at Yankee Bush, Pa., has, it is alleged, made a complete confession, admitting he abstracted 127,000 kroners of the bank's funds. Mrs. Catherine Louis Lynn of Chicago, while mentally deranged, killed her baby girl and cut her own throat. While 10,000 spectators were loudly cheering his successful flight with a glider, when 70 feet in the air, Lawrence J. Lesh, the 16-year-old areonaut, fell to the ground with terrific force


Article from The Taney County Republican, November 26, 1908

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Personal. William Arnold Shanklin, president of Upper Iowa university of Fayette, la., has been elected president of Wesleyan university, Middletown, Conn. Col. George H. Torney has been ap. pointed surgeon general of the army to succeed R. M. O'Reilly. Judge Jackson L. Smith, for 16 years a member of the Kansas City court of appeals, and a former attorney general of the state, is dead at his home in Kansas City. He was born in Callaway county, Mo., in 1837. L. C. Crittenden, probate judge of Franklin county, Kan.. is dead at his home in Ottawa. He organized the first Masonic lodge along the border at Paola and took part in the border warfare. He was 78 years old. Secretary of the Navy Victor H. Metcalf has tendered his resignation , to the president on account of iii health. Assistant Secretary Newbor: ry will be named to succeed him. Rear Admiral James M. Miller, governor of the United States Naval home at Philadelphia, is dead after a brief illness. He was a native of Liberty, Mo., and was 61 years old. T. B. Gerow, director of the Kansas free employment bureau for the past eight years, is dead at his home in Atchison after an illness of nine weeks. He was born in New York in 1846, and came to Kansas in 1856. In an interview in Boston Secretary Root declared that he was not a candidate for the United States senate. The Daily Nebraskan, the leading publication of the University of Ne. braska, advocates the election of William J. Bryan to the position of chancellor of the university to succeed E. Benjamin Andrews, who recently re' signed. Dr. David D. Thompson, editor of the Northwestern Christian Advocate, published in Chicago, was run down by a motor car in St. Louis and fatal: ly injured. He was a native of Cin) cinnati and was 56 years old. J. F. Morse of Phillipsburg, Kan., has been appointed to settle the af: fairs of the Citizens' and Farmers' bank of Arkansas City, Kan. The engagement of Miss Anna e Hoch, youngest daughter of the gov: ernor of Kansas, to James W. Ried, an attorney of Chanute, Kan., has been announced. Gen. Samuel Chamberlain, a veteran of the Mexican, Indian and Civil wars, is dead at Worcester, Mass. He was 81 years old. Emperor William of Germany has personally decorated Count Zeppelin, the aeronaut with the order of the Black Eagle. Rev. Dr. Alfred H. Harding, for the past 22 years rector of St. Paul's Episcopal church of Washington, has been elected bishop of that diocese. Justice S. S. Calhoun of the supreme court of Mississippi is dead at Jack son. He was born in Brandenburg, Ky., in 1838.


Article from The Hays Free Press, March 5, 1910

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Depositors Get Dividend. Arkansas City.Receiver Jeffries of the Citizens and Farmers' State bank, which suspended business November 6, 1908, began the payment of dividend No. 5 to depositors of the instivition. The dividend amounts to 7 per cent of the deposits and Mr. Jeffries paid out between $8,000 and $10,000 in receiver's checks. Only 8 per cent of the deposits now remain unpaid. The bank failed because it could not realize on security given by the C. T. Wells Produce company.


Article from Tulsa Daily World, October 15, 1910

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HAD MANY CAUSES FOR ACTION. A Bank Receiver at Arkansas City Would Recover from Officers. Arkansas City Kan., Oct. 14.-Merritt Jeffries, receiver for the Citizens and Farmers State Bank, filed suit in the district court at Winfield today to recover $98,000 which he says the C. T. Wells Produce company owed the bank at the time it failed. C. Luther Brown, Thomas Baird and C. T. Thurston, directors of the bank, are made defendants in the suit. The petition probably is the largest ever filed in the district court of Cowley County. It sets forth twentyfour thousand causes of action in the case. A similar suit is to be filed by Mr. Jeffries's attorneys in the federal court at Kansas City against William A. Wilson and N. D. Sanders, former president and cashier of the bank.


Article from The Chanute Times, October 28, 1910

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Asks $98,000 From Directors. Arkansas City, Kan.-W. L. Cunningham. attorney for Merrill Jeffries, who is receiver for the Citizen's and Farmer's State bank of this city, filed in the district court at Winfield a civil suit against the local directors of the bank, G. Luther Brown, Thomas Baird. G. T. Bacastow and C. T. Thurston, for the recovery of $98,000, which amount was due the bank from the C. T. Wells produce company at the time the bank failed on November 6, 1908. In other words, that is the amount of C. T. Wells' indebtedness to the bank.


Article from The Topeka State Journal, November 4, 1910

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BANK SUIT CLOSED. Final Testinmony in Arkansas City Case Sumbitted. Arkansas City, Kan., Nov. 4.-Several witnesses testified Thursday, the last day in the preliminary hearing of officers and directors of the Citizens and Farmers' State bank that failed November 6, 1908. Among them were A. F. Thomasson. former vice president; Merritt Jeffries, receiver; Ralph Brown, a former bookkeeper; A. H. Denton of the Home National bank; J. Mack Love, an attorney; George S. Hartley, trustee in bankruptcy for the Wells Produce company, and Edward Ray, manager of the Arkansas City Produce company that purchased the Wells property from the trustee. The plant was appraised at $31,000. the trustee said, The testimony related to notes held by the bank. The officers and directors are charged with having received deposits when they knew the bank was not solvent. With the exception of William A. Wilson of Kansas City, former president of the bank, who was not here when the bank closed in 1908, all also are accused of signing false statements regarding the condition of the bank. This was sent to the state bank commissioner. The other four men are N. B. Sanders


Article from The Topeka State Journal, December 25, 1911

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# BROWN FOUND NOT GUILTY. Director of Defunct Kansas Bank Cleared by Jury. Winfield, Kan., Dec. 25.-G. Luther Brown, a director of the defunct Citizens' and Farmers' State bank of Arkansas, charged with illegal complicity in the failure of that institution, was acquitted by a jury in the district court here. The case was brought by Merritt Jeffries, receiver for the defunct bank, to force payment of money due depositors. Two similar cases pending against W. A. Wilson and T. B. Sanders, also directors, are expected to come to trial soon.


Article from Albuquerque Evening Herald, December 27, 1911

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KANSAS BANKER ACQUITTED. Winfield, Kan., Dec. 37.-G. Lother Brown. a director of the defunct Citizens' and Farmers' State bank of Arkansas City, charged with illegal complicity in the failure of that ink stitution, was acquitted by a jury in the district court here today. The case was brought by Merritt Jeffries. receiver for the defunct bank, to force payment of money due depositors. Two similar cases pendIng against W. A. Wilson and N. B. Sanders, also directors, are expected to come to trial soon.


Article from Tulsa Daily World, May 12, 1912

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Depositors May Be Paid. ARKANSAS CITY, Kan., May 11.There are rumors afloat here that claims against the old Citizens' and Farmers' State bank are about to be settled. There is yet about $15,000 due depositors. The bank closed its doors in the fall of 1908, since when about 90 per cent of the deposits have been repaid. Criminal charges were filed against officers and directors, but after the acquittal of one of the directors in the district court here, other cases were dismissed. A civil action for the recovery of $98,000, said to be due the bank from the Wells Produce company is still pending. Two officials of the bank, William A Wilson and N. D. Sanders, were Kansas City men. It is claimed Wilson on several different occasions has been willing to make a settlement with depositors, but other directors refused to act. Depositors are now circulating a petition to be presented to Governor Stubbs and Bank Commissioner Dolley, requesting them to hasten the action of the courts or of the receiver in remimbursing the mfor deposits in the bank at the time it sus, pended payment. The bank closed four years ago, following the failure of the Wells Produce company.