Kemper State Bank (Boonville, MO)

Episode Information

Episode UID
80176671547
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
8017667 routing
Routing Number
80-1766
Start Date
November 1, 1928
Location
Boonville, Missouri (38.974, -92.743)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0f962a711fd26196

Response Measures

None

Description

The run and initial suspension were against the predecessor Old Trails Bank, which was reorganized and reopened under the Kemper State Bank name.

Events (3)
1. November 1, 1928 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals depleted ready cash; loss of confidence in management cited as possible reason.
Measures
Officials later arranged reorganization and new capitalization led by Col. T. A. Johnston and Kemper interests.
Newspaper Excerpt
Old Trails Bank which closed November 1st, last, following a heavy run.
Source
newspapers
2. November 1, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after heavy run; ready cash was cleaned out and it was impossible to keep open.
Newspaper Excerpt
The Old Trails Bank which closed November 1st, last, following a heavy run.
Source
newspapers
3. November 26, 1928 Reopening
Newspaper Excerpt
Kemper State Bank is now open and ready for business, Col. A. Johnston ... announced this morning at nine o'clock, as he stepped out of the bank building at 401 Main Street, and with this simple statement Boonville's newest financial institution began business under most favorable auspices. (Nov. 26, 1928).Kemper State Bank ... takes over the Old Trails Bank which closed its doors on November (Nov. 26, 1928).He reopened the Old Trails Bank and the institution reopened 13 days later as the Kemper State Bank. (AP, Feb 6, 1934).
Source
newspapers

Newspaper Articles (5)
1. November 26, 1928 The Boonville Daily News Boonville, MO
Article from The Boonville Daily News, November 26, 1928

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Article Text

MISS MATTIE KESTERSON IS MUCH IMPROVED Miss Mattie Kesterson, chief operator of the Southwestern Bell Telephone Co., here, who was taken to St. Joseph's Hospital Friday morning is reported to be very much improved. Physicians at the hospital think that she will be able to be removed to her home in a few days if she keeps on improving as she is doing new. New Boonville Institution Starts Off With $50,000 Capital ONLY FEW WITHDRAWALS Deposits and Flowers Greet Col. T. A. Johnston and Associates This Morning "Kemper State Bank is now open and ready for business," Col. A. Johnston, chairman of the board of directors of the new bank, announced this morning at nine o'clock, as he stepped out of the bank building at 401 Main Street, and with this simple statement Boonville's newest financial institution began business under most favorable auspices. The new bank takes over and guarantees all the deposits of the Old Trails Bank which closed its doors on November and despite the hardships and inconveniences that the temporarily closing of the bank worked on the hundreds of depositors, there was no rush this morning on the part of depositors to withdraw their accounts. Instead many new accounts were opened and very few withdrawals were made. It vas a demonstration of a well known trait in human nature: that soon as it was an established fact that the deposits were safe and subject to check the desire to withdraw them was greatly diminished. However, had there been rush on the part of depositors to withdraw their savings, the funds would have been available, as the officials had taken the precaution to have on hand thousands of dollars in cash ready to be paid out. The first deposit made this morning was a substantial one by Prof. A. H. Sauter, one of Boonville's leading citizens. It was quickly followed by many more and at noon the new deposits far exceeded withdrawals. The lobby of the bank building was a bower of flowers, many Boonville business firms and other Cooper county banks having sent floral expressions of good will toward the new institution. All the officers of the bank were present to welcome customers. In discussing the opening of the bank, R. Kemper expressed himself as delighted at the reception given the oflicials. "We certainly appreciate the fine spirit manifested on every hand," he said. "While we naturally anticibated a manifestation of cordiality, we vere not prepared for the unusual evilence of good will accorded us. The people of Boonville and its territory have certainly given us fine start in good wishes and new business, and we are going to strive to give them worthwhile banking service. We want to make our bank an integral and important part of the business life of the community. We will always welcome any suggestions as to improving our service, as our previous experience has taught us that we often receive very valuable ideas from our patrons as to improving our service." Has Adequate Capital The Kemper State Bank has a captal of $50,000 and a surplus fund of $10,000. Col. T. A. Johnston, who was chairman of the Board of directors in the Old Trails Bank, holds the same position in the new bank. Kemper, Jr., is president; C. H. Schupp, former cashier of the Cooper County State Bank at Bunceton, is vice-president and cashier; Ross H. Rheem, cashier of the City Bank of Kansas City, and H. Miller, former cashier of the Old Trails Bank, are vice-presidents, and R. C. Kemper, president of the City Bank of Kansas City, and Rea A. Johnston, of Kemper Military School, are directors along with the other officials. Employees of the new bank include Miss Mary Margaret McKinley, Henry Oswald, Miss Bernardine Garthoffner and Arthur Michels. Dance At K. P. Hall There will be dance at Knights of Pythias Hall tonight at nine o'clock. Music will be by Martin's Varsity Ramblers. Admission $1.50. 63-1t Boonville ladies you have seen house frocks before you thought were pretty, now let us show you some real Three days special price 99 ter Mercantile Co. 63-2t. Car Stolen Stolen: Ford Roadster 1926 model, license No. 239-828. Finder please notify Pohl, Phone 173. 63-2t. DANCE! Martin's Varsity Ramblers, Columbia, will play for a dance at the Boonville Country Club Wednesday evening. 63-2t. Free paper for all social Lompany, phone (tf)

2. November 26, 1928 The Boonville Daily News Boonville, MO
Article from The Boonville Daily News, November 26, 1928

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Article Text

FINANCE HEAD LAUDS JOHNSTON State Commissioner Declares Director Saved Community With Personal Fortune CHARTERS NEW BANK Starts Kemper State With Capital Of $50,000 Which Takes Old Trails Liabilities JEFFERSON CITY, Nov. 26 ing almost his entire personal fortune [Col. A. Johnston, 80, head of Kemper Military School at Boonville, is given full credit by S. Cantley, state finance commissioner for the reorganization and reopening of the Old Trails Bank at Boonville. The commissioner today chartered the Kemper State Bank at Boonville with $50,000 capital stock and it takes over the Old Trails Bank which closed November 1st, last, following a heavy run. Col. Johnston, a director in the Old Trails Bank came forward to save the community's financial standing and put up $200,000 to make the reorganization possible, Cantley said. Directors of the Old Trails Bank closed the institution which had total resources after the heavy run. No reasen for the run was known. Loss of confidence in the management may have been responsible, according to the finance commission. Its ready cash was cleaned out and it was impossible to keep open. Col. Johnston, a director. did not stand for the ultimate result which would have been a blow to the community's financial stability the "com29 missioner said, and so came forward with his personal fortune to make the reorganization possible. Wm. T. Kemper, Jr., of Kansas City, of Wm. T. Kemper, prominent Kansas City banker and Democratic leader in Missouri is president of the new bank. The only officers from the organization of the defunct Old Trails Bank are Col. Johnston. who comes into the new institution as director, the same position he held in the o'd. and H. J. Miller.

3. November 30, 1928 The Boonville Daily News Boonville, MO
Article from The Boonville Daily News, November 30, 1928

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Article Text

DR. BOONVILLE BANKER NELSON, CITY, Nov. Modern business competition generally supposed to be ruthless, but chivalry dead in the commercial according to Cantley, state who points to the reorganization of broken bank Boonville for his example. The already has praishighly Col. Johnston, head of Kemper Military school coming forward, bank director, and putting up almost entire personal fortune, than $200,000, reopen and rebuild the funct Old Trails Bank the Cooper county city. He now adds that considerable credit should also to Dr. president of the BoonNational Bank, and Democratic ncminee for in 1924. Dr. Nelson, whose bank competitor the reorganized Old Trails Bank, which closed after heavy run recently, was instrumental in bringabout the reorganization the stitution, now known as the Kemper State Bank of Boonville. Dr. Nelson persuaded Wm. Kemper, Sr., Kansas City, prominent banker and Democratic leader, to take interest in the new institution, Cantley said. Wm. Kemper, his heads the new bank. In letter Dr. Nelson the commissioner said: want to thank you personally and most sincerely for the part you had in bringing about the reopening the Old Trails Bank and its subsequent acquirement by the Kemper interests Kansas City. men would have done what did for the benefit of the that invite and encourage strong competition with your interests to save others whom you had only passing interest, to speak. It one those oustsanding deeds of real one who looks higher and nobler things than sordid gain realized by selfish If had more of your abroad in the state there would fewer financial troubles and less heartache than we find

4. June 25, 1929 The Boonville Daily News Boonville, MO
Article from The Boonville Daily News, June 25, 1929

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Article Text

Col. T. A. Johnston Holds Full Esteem of Boonville City Enshrines 81-Year-Old President of Kemper Military School, Who Gave Fortune to Save Bank Crash Victims Editor's Note: The following storv. written by a member of the Star's staff, appeared in the Kansas City Times this morning. It was illustrated with a picture of Col. Johnston and with a double-column headlinc. The Star has been generous with promotion stories of Boonville (specially this last week. No less than four tin es this week has the Star and Times contained illustrated double-cclumn stor. ies about Boonville, three of them written by the Star's representatives here who are members of the Advertiser and Daily News' staffs. BOONVILLE, Mo., June 24.-Picture a man, in his eighty-first year, born and reared within eleven miles of Boonville, a cavalryman at 16 under Gen. Sterling Price in the Civil War, a Greek scholar, civic leader, bank president, college professor and philanthropist, and then visualize a man who would rather lose thousands of dollars than lose the admiration and respect of his friends. Such a man is Col. T. A. Johnston, president of the Kemper Military academy and until financial reverses last fall, the city's wealthiest citizen. Inquire of almost any resident of Boonville of the reputation of Colonel Johnston. The consensus is that he is Boonville's greatest citizen-that he has done more for the city, for its surrounding territory and for its residents than any other person in Cooper County's history. His Fortune to Save Bank Possibly it will cost the veteran militarist dearly to maintain this high position for he has personally borrowed the money to make good notes held by the Old Trails Bank when it failed here last November. Not held liable by the state bank commissioners for the failure of the bank, Colonel Johnston put his private fortune into circulation so farmers and Boonville residents who had offered only mortgages on their property for loans might not be forced into bankruptcy. Sincere in his desire to lend personal service to the community, Colonel Johnston entered the banking business, not for financial reward, he pointed out recently. His friends were constantly asking his advice regarding investments and he believed he could best serve them if he was officially connected with a bank. When a person here wishes to buy or sell house they consult the "colonel." When another desires to play the stock market he usually is advised against it. In all these years, so they say here, only one man has ever been able to "advise" Colonel Johnston and this adviser. a former officer of the Old Trails Bank, was more or less responsible for the colonel's hcavy losses in recent years. Poor judgment and carelessness of the assistant are blamed. The First in State's History Last November 1, when the Old Trails Bank was closed after a heavy run, the colonel went to Jefferson City to consult S. L. Cantley, state bank examiner. Cantley later announced Johnston's act in giving his private fortune to save other bank depositors and stockholders from heavy losses was the first of its kind in Missouri history. Reputed at the time to be worth more than 1-2 million dollars, Colonel Johnston borrowed on his property, sold many shares of Kemper Military Academy stock. and obtained enough ready cash to square accounts with the bank commissioner and the Kemper banking interests of Kansas City. who took over the Old Trails Bank at the time of the crash and now operate it as the Kemper State Bank, Johnston's to take air son-in-law, Col. A. M. Hitch, superintendent of the military school, his two sons, Rea and Harris Johnston and others connected with the school, bordrive swiftly. rowed money with which to buy some of the Johnston stock. Those actively associated with the veteran educator say he is hard to excite and that no one has ever witgets better. nessed a lapse of his stability. With little hesitancy he signed a check for said recently. $150.000 that gave Kemper a new gymnasium several years ago. And with the same ease he has given freely to the Presbyterian church here, the Boonville bridge and the municipal airport. In fact, his contribution usually heads the list when some new civic enterprise is started. A Heavy Reader An omnivorous reader, Colonel Johnston is said to read thirty magazines each month besides prose, fiction and history. He often reads Latin for pleasure and is a devoted student of Greek. Mathematics, religion, science and philosophy share his time when he is not occupied with business. His alma mater, the University of Missouri, in 1924 conferred on him the degree of doctor of laws. Like degrees have been received by Colonel Johnston from Missouri Valley college of Marshall, Westminster college of Fulton and Kenyon college at Cambier, O. Colonel Johnston knows as much about the world as the most profound globe trotter. He has made a thorough study of the geography, history and economic conditions of every country. Only on one occasion has he wandered from the confines of the United States. That was several years ago when he went to Panama to visit his daughter. While there he flew from the Atlantic to the Pacific and back in the same day. And they say on hot summer afternoons the "Colonel" slips away from his desk here rides. At the age of 75 he learned to drive a motor car. He has never figured in an accident, although he delights to Sees Progress in Youth A believer in the youth of today, Colonel Johnston is of the opinion that with each generation the world "They continue to go up hill," he Today one can find the educator, for he prefers "call that his vocation, seated at his desk in his home, which housed the original Kemper academy. He has many interests. He is apt to be in conference with his son-in-law, Col. A. M. Hitch, or with Col. J. B. Barnes, his military chief, or he may be romping around with his grandchildren. And if he isn't doing one of these things he may be at the Kemper Bank, where he still goes once or twice each day to at-

5. February 6, 1934 Evening Star Washington, DC
Article from Evening Star, February 6, 1934

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KEMPER PRESIDENT DIES Dr. Thomas Johnston Reopened Bank After Run. BOONVILLE, Mo., February 6 (AP).Dr. Thomas A. Johnston, 85, banker, president of Kemper Military School of Boonville and a Confederate veteran, died at his home late yesterday. A graduate of the old Kemper Family School, Dr. Johnston became associated with the military academy when it was founded by Frederick T. Kemper in 1872. In the Fall of 1928, Dr. Johnston staked his personal fortune to rehabilitate the Old Trails Bank, of which he was president, after it was closed by a run. He assumed frozen assets and the institution reopened 13 days later as the Kemper State Bank. Patrons did not lose a cent. The bank now has deposits of more than $1,000,000.