7373. Farmers & Traders Bank (Maysville, KY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 28, 1927
Location
Maysville, Kentucky (38.641, -83.744)

Metadata

Model
gpt-5-mini
Short Digest
68fa09d1

Response Measures

None

Description

The Farmers & Traders Bank of Maysville voluntarily placed its assets and management in charge of the Kentucky Banking Commissioner and suspended payment on February 28, 1927. A receiver was later appointed (April 1927) and the institution proceeded to liquidation; later litigation against the bonding company is noted. No run is described in the articles.

Events (5)
1. February 28, 1927 Suspension
Cause
Voluntary Liquidation
Cause Details
Board of directors voluntarily placed assets and management in charge of the State Banking Commissioner and suspended payments as part of voluntary liquidation.
Newspaper Excerpt
the Farmers & Traders Bank, of Maysville, Kentucky, on the 28th day of February 1927, by action of its board of directors, voluntarily placed the assets, property and management of said bank in charge of the Banking Commissioner of the State of Kentucky, closed the doors of said bank and suspended payment.
Source
newspapers
2. March 3, 1927 Other
Newspaper Excerpt
Deputy State Banking Commissioner Phillips, here in charge of the affairs of the Farmers & Traders its business affairs, has requested that all persons having savings accounts with the bank bring in pass books at once so that they may be balanced.
Source
newspapers
3. April 1, 1927 Other
Newspaper Excerpt
The first suit in the settlement of the affairs of the defunct Farmers and Traders Bank was filed... by W. L. Coons, acting receiver of the bank, against C. C. Mathews.
Source
newspapers
4. April 7, 1927 Receivership
Newspaper Excerpt
Mr. White F. Varden... arrived in Maysville Wednesday evening... to take charge of the affairs of the Farmers and Traders Bank... which was closed for liquidation on Monday, February 28th last. Mr. Varden was formerly assistant cashier... and former State Bank Examiner. This announcement will no doubt be received as good news to the many depositors of the bank who desire to realize on their deposits as soon as possible.
Source
newspapers
5. March 13, 1929 Other
Newspaper Excerpt
The United States Fidelity & Guaranty Company... was held liable as surety on the bond of the defunct Farmers and Traders Bank of Maysville for $11,692.20 due the Board of Education.
Source
newspapers

Newspaper Articles (14)
1. March 3, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, March 3, 1927

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BOARD WILL TRY TO COLLECT SCHOOL FUNDS Attorney Gardner K. Byers, Retained To Aid In Getting $11,636.20 On Deposit In Farmers And Traders Bank Mr. Gardner K. Byers, former Attorney-General of the state, with law offices now in this city met with the City Board of Education at their regular session Wednesday evening to give legal advice in the matter of securing the school funds totaling $11,636.20, tied up in the Farmers and Traders Bank by reason of its voluntary liquidation. The following resolution, drafted by Attorney Byers and introduced by Mr. C. C. Calvert was unanimously adopted by the Board: WHEREAS, the Farmers & Traders Bank, of Maysville, Kentucky, on the 28th day of February 1927, by action of its board of directors, voluntarily placed the assets, property and management of said bank in charge of the Banking Commissioner of the State of Kentucky, closed the doors of said bank and suspended payment, and WHEREAS, at the time of the State Banking Commissioner took charge of the affairs of said Farmers & Traders Bank there was on deposit in said Bank to the credit of the Board of Education of the City of Maysville, the sum of $11,636.20 or thereabouts. and WHEREAS, said funds so deposited were secured by a bond executed by the said Bank as principal and by the United States Fidelity & Guaranty Company as surety in favor of the Board of Education of the City of Maysville and conditioned upon the repayment on demand of all moneys on deposit in said Bank, which said bond, by reason of extensions of the term thereof, was at the time herein above mentioned in full force and effect, and upon the faith of and in reliance upon the terms of such bond this Board permitted the fund belonging to it to remain on deposit in said bank, now therefore be it, RESOLVED, that Mr. Duke White and Mr. J. B. Orr, President and Secretary respectively of this Board be and they are hereby authorized and directed to prepare proper proof of loss against said surety on said bond, and to take such other and further steps as in their judgment may be necessary to collect from said surety the full amount on deposit to the credit of his Board as aforesaid, or any such amount lawfully due this Board under the terms and conditions of said bond or any other bond which may have been substituted therefor. JUST ASK YOUR FRIENDS About "Peter Grimm" and see It tonight at Hollywood.

2. March 3, 1927 The Daily Independent Maysville, KY
Article from The Daily Independent, March 3, 1927

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Pass Books Wanted & Bank Deputy State Banking Commissioner Phillips, here in charge of the affairs of the Farmers & Traders its business affairs, has requested that all persons having savings accounts with the bank bring in pass books at once so that they may be balanced. A notice to this effect elsewhere in this issue.

3. March 3, 1927 The Daily Independent Maysville, KY
Article from The Daily Independent, March 3, 1927

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BOARD PASSES RESOLUTION TO COLLECT FUNDS $11,636.20 City School Money In Farmers & Traders Bank When Closing For Voluntary Secured By Bond of United States Fidelity & Guananty Company. The Maysville Board of Education meeting in regular monthly session last evening faced the problem of operating the city school while its funds were tied up in the Farmers Traders Bank, which is closed for voluntary liquidation. The Board had on deposit in the bank at the time of its close, and the bank was under bond for the safety of this deposit. The matter was thoroughly discussed at the meeting last night and Attorney Gardner K. Byers, who was procured by the Board following the close of the bank, presented several fine legal points which assured the members that the school funds were safe. Mr. Clint Calvert. chairman of the Finance Committee introduced a resolution drafted by Mr. Byers which should take care of the situation. It was unanimously adopted by the Board and follows: WHEREAS. the Farmers & Traders Bank, of Maysville, Kentucky. on the 28th day of February, 1927. by. action of its board of directors. voluntarily placed the assets, property and management of said bank in charge of the Banking Commissioner of the State of Kentucky. closed the doors of said bank and suspended payment. and WHEREAS, at the time of the State Banking Commissioner took charge of the affairs of said Farmers & Traders Bank there was on deposit in said Banw to the credit of the Board of Education of the City of Maysville, the sum of $11.or thereabouts, and WHEREAS. said funds so deposited were secured by a bond executed by the said Bank as principal and by the United States Fidelity Guaranty Company as surety in favor of the Board of Education the City of Maysville and conditioned upon the repayment on demand of all moneys on deposit in said Bank. which said bond. by reaof extensions of the term thereof. was at the time herein above mentioned in full force and effect, and upon the faith of and in reliance upon the terms of such bond this Board permitted the funds belonging to it to remain on deposit in said bank. now therefore be it, RESOLVED that Mr. Duke White and Mr. Orr. President and Secretary respectively of be and they are hereby authorized and directed to prepare proper proof of loss against said surety on said bond. and to take such other and further stes as in their judgment may be necessary to collect from said surety the full amount posit to the credit of this Board as aforesaid. or any such amount lawfully due this Board under the terms and conditions of said bond or any other bond which may have been substituted therefor.

4. March 12, 1927 The Courier-Journal Louisville, KY
Article from The Courier-Journal, March 12, 1927

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MARVIN TO PICK BANK RECEIVER Agent for Defunct Maysville Institution to Take Charge Next Week. AUDIT ALMOST FINISHED to The Maysville, Ky., March 11.-A to make settlement of the affairs of the Farmers Traders Bank, went liquidation will named by C. E. er, to out by in charge of affairs yesterday The will as of auditing the books and balancing the accounts be next Thursday according W. State Bank Examiner Mr. Coons, those in work of straightening out the affairs S. W Eskew and Mr. Bowling the firm of Cotton & Eskew, Louisville, public accountMr. Coons stated yesterday that before completing their the auditors will to the ceiver list the assets and liabilities the bank. The audit and work at the bank is being by Phillips Deputy State Banking Commissioner. The school teachers of Mason County will hold the meeting morning. The address made by Jaggers, head the DeRural Education at Eastern State Gardner K. chief counsel the Board of he had proof the failure the board obtain money from the Farmers Traders Bank, in here, to the Md. The Athletic Chairman, Fitzgerald in asked for track team equipment for it. The request was by the information that if team organized would action or for for athletics. The and grounds commit board was to of the commitand the committee was given power to act by the Athletic board employ athletic director for next year. This ferred to the Committee, to report at the next regular meeting the board April. The board ordered that all unpaid checks left the Farmers Traders Bank be taken up and paid by the secretary. Henry S. Hughes, Maysville, has been ordered appear before the Federal grand April by H. United States Commissioner at Covington. Hughes before Roetken on charge of having lated the prohibition laws. Business men and bankers here met in the State National Bank day to make for the visit to the special train to be sent out by the State Bankers' Association. The train is to run in with the Louisville & Nashville Railroad to encourage progressive ideas among the farmers an effort to promote agricultural deL. M Dorsey, secretary of the State Bankers' Association, and R. W. Scarce, secretary of the Kentucky be here with the train to advise farmers any subject they may bring before meeting. of County Wednesday camp the Chesapeake on sidetrack and Concord. had information that and arrested the name Pool of possessThe who acSheriff the some tered poured some spilling who that entrance. Pool fined and given Another negro Orin Ramsey was fined $100 for Both were taken to the Vanceburg James Presley, wanted in Lewis County, was by H. P. Boots on Kirk Gilbert's farm Charleston Bottom yesterday. He was to Vanceburg yesterday afternoon

5. March 28, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, March 28, 1927

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MONTH PASSES WITHOUT BANK RECEIVER NAMED Polities Believed To Be Responsible For Unnecessary Delay. Chas. H. Newman Already Chosen, It Is Understood. On Monday morning, February 28 last, the Farmers and Traders Bank, of this city, was closed by order of the State Banking Commissioner. Today marks the passing of a full month since the closing of the institution, but apparently nothing has been done toward the appointment of a receiver in order that a settlement of the bank's affairs might be brought about. It is understood that for some two weeks everything has been in readiness for the naming of the liquidating agent but depositors have watched in vain and wondered how much longer the expense incurred by each day's employment of four or five persons to hand out pass books and execute other duties to which any one person could attend must be borne by them. many of them being in dire financial straits and needful of realizing at the earliest time possible on their deposits There only one reason to which we can attribute this unnecessary delay and that is TOO MUCH POLITICS. Incidentally, Mr. S. Albert Phillips, of Corbin, Assistant State Banking Commissioner, who has been in active charge of the bank's affairs since its closing, is a candidate for the nomination of State Treasurer subject to the action of the Democratic party in the August primary. It would seem that he is furthering his own interests by delaying the appointment of receiver until he finds the man who is strongest with the Democratic party and one who is capable of delivering the most votes. Mr. Phillips arrived here Monday morning for a couple of days. We understand from very reliable sources that Charles H. Newman. a member of City Council and quite a prominent local farm owner and business man. has already been agreed upon for the receivership and why he is not appointed we cannot understand, unless it is to take more time in which to make certain that he is the best choice among the prospective candidates. It is not only to the best interests of the depositors that action be taken immediately, but to every merchant and citizen of the community as well. Instead of the matter having been settled with precision, as those involved would liked to have seen it done and as it should have been done, it appears that it is being regarded as a vote getting proposition with plenty of time being used that no mistakes might be made. Is politics to be considered before the interests of the people?

6. April 1, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, April 1, 1927

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FIRST SUIT FILED BY ACTING BANK RECEIVER The first suit in the settlement of the affairs of the defunct Farmers and Traders Bank was filed Thursday afternoon with Clerk James B. Key of the Mason Circuit Court by W. L. Coons, acting receiver of the bank, against C. C. Mathews. The suit was filed to recover $199.57. the amount due on a $200 promissory note on which forty-three cents interest had been paid, which is alleged to have executed and delivered to the bank by the defendant on July 13, 1926. Plaintiff states that the defendant is about to remove his property out of the state, not leaving enough to satisfy the claim. Wherefore, the defendant prays judgment and for a general order of attachment. which was issued by Clerk Key. In the matter of the estate of P. H. Thomas, deceased, a petition ex parte was filed for the sale of certain securities in seeking the settlement of said estate.

7. April 7, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, April 7, 1927

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W.F. VARDEN OF PARIS NAMED BANK RECEIVER Affairs of Farmers and Traders Bank Placed In Hands of Mr. White F. Varden. Former State Banking Examiner. Mr. White F. Varden, of Paris, Ky., arrived in Maysville Wednesday evening, with Mr. S. Albert Phillips, Deputy State Banking Commissioner, to take charge of the affairs of the Farmers and Traders Bank, of this city, which was closed for liquidation on Monday, February 28th last. Mr. Varden was formerly assistant cashier of the First National Bank of Paris and former State Bank Examiner. This announcement will no doubt be received as good news to the many depositors of the bank who desire to realize on their deposits as soon as possible.

8. April 7, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, April 7, 1927

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SCHOOL BUDGET IS INCREASED BY $14,000 Raise Is Necessitated By Closing Of Board's Depository. Prof. Payne Re-Elected To Superintendency. The City Board of Education met Wednesday evening for its regular April meeting." Business transacted at the session included the naming of a superintendent and the fixing of the school budget. Professor J. Howard Payne was reelected to the superintendency of the city schools for another year, to serve at the same salary as paid for the last school term. The Board adopted the budget for the coming year. to be presented to City Council for allowance, asking for $71,011.20. Last year's budget was about $58,000. approximately $14,000 less than the new one calls for The increase results from the closing of the Farmer's and Trader's Bank. the Board's depository, which tied up in its fund in the amount of $11,696.20. Should this money be fully recovered, it is practically lost to the Board. inasmuch as it was compelled to put up this sum as collateral on $10,000 borrowed from the Bank of Maysville and State National Bank, in amounts of $5,000 each, for the purpose of paying salaries and meeting compulsory obligaThe Board rejected a resolution, or preamble to the budket, submitted by Prof. Payne. The Athletic Committee of the Board of Education was instructed to take up the lease on the Forest Avenue ballpark. if possible. from Mr. M. C. Russell, and others, to be used as an athletic field. The Board adjourned to meet next Tuesday evening when the election of teachers for the 1927-28 school term will take place.

9. June 2, 1927 The Public Ledger Maysville, KY
Article from The Public Ledger, June 2, 1927

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HOSPITAL NOTES At the regular monthly meeting Wednesday evening of the City Board of Education, held in the reception room in the high school building. the attorney for the board, Mr. Gardner K. Byers, was instructed to institute mandamus proceedings against City Council. The action was taken as the result of Council's failure to vote a raise in the tax levy of the city to provide for an increase in the school budget. which was asked for by the board. The matter grew out of the failure of the Farmers and Traders Bank. closed in February, the School Board having approximately $11.00 in the defunct institution at the time it was closed for liquidation. The increase in the school budget presented to council was approximately 14,000, to take care of an increase in the expense of operating the schools. The board authorized the Finance Committee. with the president and secretary acting conjunctively, to borrow $20,000 on the school asMrs. John Collopy, Sutton street, sessment. to take care or current exunderwent a minor operation this penses morning. The resignation of Miss Dorothy Henry Moore, colored. underwent Kimbley home economics teacher. a minor operation Thursday mornwas presented to the board and acing. cepted Supt. Payne recommended Miss Ritchie Stevenson, daughter of NOTICE Mr. and Mrs. J. Stevenson, to fill All persons having claims against the vacancy. The matter was referthe estate of Mrs. Margaret L. Parry, red to the Teachers Committee. to deceased. will present same duly verbe reported back to the board. ified to the undersigned, and all perAll members were present at the sons knowing themselves indebted to meeting except Members C. C. Calthe estate will please pay same. vert and W. E. Hord.

10. March 13, 1929 The State Journal Frankfort, KY
Article from The State Journal, March 13, 1929

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MAYSVILLE BOARD OF EDUCATION WINS SUIT TO COLLECT $11,696 The United States Fidelity & Guar anty Company yesterday was held liable as surely on the bond of the defunct Farmers and Traders Bank of Maysville for $11,692.20. due the Board of Education of the city 0: Maysville, by the Court of Appeals. In 1924 the bank was designated as depository for the board and fur nished hond in the sum of $40,000 to pay all claims of the Board of Educa tion. The bond was furnished by the guaranty company It was renewed each year until 1927. when it was re duced to $15,000 The reduced bond became effective February 21, 1927. but the premium was not paid until The bank closed its doors Februar 28, 1927 The bank suspended payment on all claims February 28, 1927 Demand was made for the payment due the Board of Education and was refused. The board sued the guaranty com pany, on its bond. to recover the amount due it. The lower court granted a judgment to the board against the company. The appellate court upheld the

11. March 14, 1929 The Daily Independent Maysville, KY
Article from The Daily Independent, March 14, 1929

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WINS OPINION IN COURT OF APPEALS Holds That Bonding Company Is Liable As Surety on Bond of Defunct Bank for Deposits of Board Sentenced to Two Terms Of of Education Finding of Lower Two and One-Half Years, One Of Eighteen Months Court Upheld The Board of Education of the city of Maysville won a victory in the Court of Appeals at Frankfort when that body handed down an opinion holding the United States Fidelity & Guaranty Company. of New York, as liable as surety on the bond of the defunct Farmers & Traders Bank, of this city, for $11,696.20. In 1924, the bank was designated as depositary for the board and furnished bond in the sum of $40,000 to pay all claims of the Board of Education. The bond was furnished by the guaranty company. It was renewed each year until 1927, when It was reduced to $15,000. The reduced bond took effect February 21, 1927. but the premium was not paid until March. The bank suspended payment on all claims February 28, 1927. Demand was made for the payment due the Board of Education and was refused. The board sued the guaranty company, on its bond to recover the amount due it. The lower court granted judgment to the board against the company. The Appelate Court upheld the decision.

12. March 15, 1929 Winchester Democrat Winchester, KY
Article from Winchester Democrat, March 15, 1929

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Bank Surety Liable For School Fund, Rule The United States Fidelity Guaranty Company, Tuesday was liable the bond held as surety on of the defunct Farmers & Traders Bank of Maysville for due the Board of Education of the City of Maysville, by the Court of Appeals. In 1924 the bank was designated as depository for the board and furnished bond in the sum of $40,000 to pay all claims of the Board of Education. The bond was furnished by the guaranty company. It was renewed each year until 1927, when it was reduced to $15,000. The reduced bond took effect February 21, 1927, but thepremium was not paid unMarch. The bank suspended payment on all claims February 28, 1927. De mand was made for the payment due the Board of Education and was refused. The board sued the guaranty company, on its bond, to recover the amount due it. The lower court granted judgment to the board against the company. The Appellate Court upheld the decision.

13. March 28, 1931 The Winchester Sun Winchester, KY
Article from The Winchester Sun, March 28, 1931

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HELD NOT BANK ASSET Tranaction at Maysville Institution In Good Faith, Is Ruling. March ment of the Mason Circuit Court holding that an $8,000 note charged off and the assets of the TradBank, in 1924, almost three years before the bank closed, was considered as an asset of the institution, was upheld Friday by the Court Appeals. Mrs. On October 1922, an tion by represetatives of the State night Banking revealed shortpard. of the accounts of the Farmers Traders Bank, Maysville. The bank was capitalized day had surplus of ents, The Department insisted reduction the surplus of the institle tution take of the discrepancy, and change in the of personnel the bank directorate. directors were loath to make change, fearing run the bank. Believing there shortage. the directors of the bank hired group of, expert accountants with the bank and determine if there Betty shortage, and, if there one, who responsible it. The shortage was discovered. who responsible could not be determined.

14. July 26, 1932 The Daily Independent Maysville, KY
Article from The Daily Independent, July 26, 1932

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Mrs. John D. Filson and son, John Leslie Filson of Chicago and Mrs. J. Morgan Brown and Mr. Gayle Brown of Richmond, Ky., are the guests of Mr. and Mrs. H. M. Cracraft of East Fourth street. Miss Mildred Varden has returned home from a visit to the Chi Omega camp at Riverside Cabin on the Kentucky River. While there Miss Varden attended the Chi Omega dance held on last Friday evening. Mr and Mrs. Ed Lalley and son, Mr. Eugene Lalley, of Mayslick, will motor to Covington this morning for the day. They will be accompanied home by Mrs. T. E. Lalley and sons, Donny and Edward Vernon, who will visit with them for two weeks. Miss Sue Hopper, of Mayslick, had as her guest over the week end, Mr. Harry Collier, of Liberty, Ky Miss Hopper left yesterday morning for Lexington to enter the University of Kentucky for the second summer term. The Independent was misinformed that Mrs. W. J. Foster of Silver Grove, Ky., spent the day Sunday at Mr. and Mrs. Tom McNutt's home on the Point. She spent the day with Mr. and Mrs. J. T. Gettes and little Betty Jean Gordon has been visiting her aunt, Mrs. Earl Moran, of Moransburg. Episcopal Church Notice. The Sunday School of the Church of Nativity will have a picnic at Beechwood Park, Tuesday afternoon, July 26, to which all members of the Church are invited. Those who expect to go, phone Miss Gill, and meet at the church promptly at 4:30 m. III At Camp. George H. Fishter, Jr., who is spending the month of July at the Citizens Military Training Camp, near Louisville, has been confined to the army hospital for the past ten days with a very severe cold. The young boy, whose condition is not serious however, will remain at the hospital until next week when he will be brought to his home here by his parents who will motor to Louisville for him. Varden Family To Leave Maysville, The many friends of Mr. and Mrs. White F. Varden and their daughter, Miss Mildred Varden, will regret to learn that they are leaving this city and moving back to Paris, from which city they came to Maysville several years ago. The Vardens, who have been substantial citizens of this city since 1927 when Mr. Varden came here to serve as special deputy banking commissioner in liquidating the Farmers and Traders Bank, will move to their new home early in August. Mrs. Varden's mother, Mrs. Minnie Leslie, who makes her home with them, will also be greatly missed by her admiring friends. Mr. Varden, since retiring from the capacity as cashier of the Security Bank and Trust Company, this city, has been located in Nashville, Tenn., Pineville and Corbin, Ky., as national bank receiver. At present, he is settling bank affairs and Rev. Mr. Snider. which will be quietly celebrated August 22 at the home of the bride's father, Mr. L. daughter, Margaret Russell, to Rev. L. Childress, in Erlanger, will unite two of Kentucky's oldest and most prominent families. "The bride is the daughter of Mr. Leonard L. Childress and the late Mrs. Mollie Susan Hawes Childress. She is also the grandulate him upon his engagement. daughter of the late General Leonard L. Stephens, who came over to Kentucky from Virginia in the latter part of the eighteenth century and located near Erlanger, where his handsome old homestead was one of the first erected in Northern Kentucky. Covington in honor of her sister, "Mr. Snider, who is brilliant young Baptist minister, is the son Mr and Mrs. Courtney Scott Snider whose families have been in Kentucky for many "He was graduated from Georgetown College with an A. B. degree He has received his Th. M. degree at the Southern Baptist Seminary in Louisville and within a few months will be graduated from that noted institution with Ph. degree."