Citizens & Farmers State Bank (Arkansas City, KS)

Episode Information

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

Metadata

Notes

Depositors were reported almost in a panic, but articles describe a suspension and formal wind-up rather than a documented depositor run.

Events (3)

1. November 6, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy/bad loans to the C. T. Wells Produce company left the bank unable to realize on security, prompting suspension.
Newspaper Excerpt
This bank closed pending an investigation of its affairs. The bank commissioner has been notified and is in full charge.
Source
newspapers
2. November 10, 1908 Receivership
Newspaper Excerpt
J. R. Morse ... named as special deputy to take charge of the Citizens' & Farmers bank at Arkansas City; bank was taken charge of by the state department several days ago.
Source
newspapers
3. March 5, 1910 Other
Newspaper Excerpt
Receiver Jeffries ... began the payment of dividend No. 5 to depositors of the institution; the bank suspended business November 6, 1908.
Source
newspapers

Newspaper Articles (20)

Article from Albuquerque Citizen, November 6, 1908

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A KANSAS BANK CLOSED. Arkansas City, Nov. 5.-The Citizens and Farmers' State bank closed its doors this morning, the first intlmation of its suspension being a notice posted on the door, signed by all the officers, which read: "This bank closed pending an investigation of its affairs. The bank commissioner has been notified and is in full charge. Full particulars will be given out as soon as possible after his arrival." William A. Wilson, president of the bank, resides in Kansas City and the closing of the bank followed the return of Cashier Sanders from a trip to that 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 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 Daily Gate City, November 9, 1908

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BANK WILL PAY ALL DEPOSITORS Citizens and Farmers State Bank Will be Able to Pay All of the Depositors. ARKANSAS CITY, Kan., Nov. 9.It is believed the Citizens and Farmers' State Bank, which closed yesterday will be able to pay all depositors in full. The announcement was made today by the directors that a large supply of cash was on hand. Cashier Sanders explains heavy loans to a produce company caused the suspension as the bank was unable to realize on security given.


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 The Free Lance, November 10, 1908

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Arkansas City Bank Closes. Arkansas City, Kan., Nov. 7.-The Citizens' and Farmers' State bank closed its doors. The first information of its suspension was a notice posted on the locked door saying: "This bank is closed pending an investigation of its affairs. The bank commissioner has been notified and is in full charge."


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 The Hope Pioneer, November 12, 1908

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Kansas Bank Closes. Arkansas City, Kan., Nov. 7.-The Citizens' and Farmers' State bank closed its doors here Friday, the first information of its suspension of business being a notice posted on the locked door of the bank.


Article from Greene County Herald, November 13, 1908

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Kansas Bank Closes Down. Arkansas City, Kan., Nov. 6.-The Citizens and Farmers' State Bank closed its doors here today, the first information of its suspension of bus iness being a notice posted on the locked doors of the bank.


Article from Greene County Herald, November 20, 1908

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Kansas Bank Closes Down. Arkansas City, Kan., Nov. 6.-The Citizens and Farmers' State Bank closed its doors here today, the first information of its suspension of business being a notice posted on the locked doors of the bank.


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 Warren Sheaf, January 14, 1909

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Kansas Bank Closes. Arkansas City, Kan., Nov. 7.-The Citizens' and Farmers' State bank closed its doors here Friday, the first information of its suspension of business being a notice posted on the locked door of the bank.


Article from The Topeka State Journal, August 18, 1909

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enced a change of heart, or is this letter simply a ruse for the purpose of acquiring funds to accomplish by a legal technicality that which you are unable to accomplish when it is fairly and openly submitted to the people? This letter of yours, governor, is very smooth and fetching, but it will not fetch much money from the depositors, at least from the depositors of the Citizens' and Farmers' State bank-not yet. Regretting very deeply that I am unable to accommodate myself to your wishes in this matter and renewing my expressions of high personal regard, I am, very respectfully, MERRITT JEFFRIES, Receiver Citizens' and Farmers' State Bank of Arkansas City.


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.