State Savings Bank (Leavenworth, KS)

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TO TAKE OVER ALL ASSETS Leavenworth Banks to Assist in Liquidation of State Savings. Liquidation of the affairs of the State Savings bank of Leavenworth, which was closed Tuesday, will be undertaken by the local association of banks at Leavenworth, it was announced today by State Bank Commissioner Frank H. Foster, upon his return from that city. The other banks are arranging to take over all assets of the Savings bank, under which arrangement it is understood, all liabilities will be met. Mr. Foster reiterated that the cause of the failure was over loans and loans on which it was impossible to make collections. B. V. Curry, state bank examiner who recently has been appointed receiver for a number of state banks, has been placed temporarily in charge by Mr. Foster. The commissioner declined to give any estimate as to the aggregate amount of bad paper held by the institution.

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Leavenworth, Kan., May 24.-The State Savings bank was closed at | noon today upon order's of the state banking commission. inability to realize on "frozen" credits was the reason assigned for the closing. P

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LEAVENWORTH

Kan... May 23.-The State Savings bank was closed at noon today upon orders of the state banking commission. Inability to realize on "frozen" credits was the reason assigned for the closing.

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SAVINGS BANK GOES TO WALL [Associated Press] Topeka, May 23.-The State Savings Bank of Leavenworth was closed today. Frank H. Foster, state bank commissioner, is temporarily in charge. Its capital was $100,000, loans $1,000,000, deposits $1,123,000. Bad paper is assigned as the cause. Its deposits are guaranteed

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Leavenworth, Kan, May 29.-It was a check for $14,000 that "broke the bank" in the case of the Leavenworth State Savings bank which recently closed its doors here. The bank having been heavily loaned up on-its more than a million deposits, difficulty was encountered in making sufficient collections to meet demands of depositors. Since the closing of the bank it has been authentically stated that a "silent run" had been made on the bank, more than $200,000 having been drawn out since January 1. Funds were available for checks of nominal sums, but when the local light company presented a check for $14,000, the bank could not meet it. More than half of the notes held by the bank were given by farmers, it was stated, many of them being unable to pay them off. No charges of misappropriation of funds have been made against the officers. The day the bank closed, F. M. Potter, vice president, resigned as president of the Lansing State Bank. The depositors will not lose, the bank being guaranteed by the state depositors' guaranty law. Certificates on the state will be issued to the depositors at once. These certificates draw interest.

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LOSS MAY REACH $150,000 Efforts to Reorganize State Savings Bank at Leavenworth Fails. Losses of the State Savings bank of Leavenworth-recently closed by the state banking department-may reach $150,000. Efforts to reorganize the institution and underwrite losses by Leavenworth institutions have failed. Announcement of the probable losses of the bank was made here today by Frank H. Foster, state bank commissioner. Commissioner Foster said exact amounts of losses would not be known for some time. The bank operated under the state bank guaranty law. Numerous bad loans by the institution caused the recent failure, according to statements, from the banking department. The institution has been in charge of B. V. Curry, a state bank examiner, who is now receiver for six banks closed under directions of Commissioner Foster.

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SUES FIVE FOR $120,000. Leavenworth Bank Stockholders Are Asked to Make Up Deficit. Leavenworth, Kan., July 25.-Five stockholders in the State Savings bank, Leavenworth, which closed its doors May 23, by order of the state bank examiner, have been sued by the bank's receiver under the double liability clause of the state bank guaranty law According to allegations made in the bank's petition, the assets of the institution are insufficient by $120,000 to pay claims of the depositors.

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IS COLLECTING BANK'S ASSETS

State Savings at Leavenworth May Pay Dividend About Nov. 1. Leavenworth, Kan., Aug. 19.-The first dividend payment of the State Savings bank of Leavenworth, closed some time ago, will be delayed unless some 1,800 depositors who have not yet made proof of their elaims do so, according to M. L. Bishop, assistant to the receiver of the bank. So far the receiver has collected about $150,000 of the bank's assets, it was said. In the event as good progress can be made during the next three months and the 1,800 delinquent depositors make their claims, the first dividend would be declared about November 1, it was thought.

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STATE CONTROLS TEN BANKS B

V. Curry Is Official Receiver for All Institutions. Ten state banks are now closed and under control of the state bank commissioner. B. V. Curry, an assistant bank commissioner, is the official receiver of all ten of these institutions. In addition to the ten, there are nine banks in the state now operating under individual receivers. The ten banks under state control and of which Mr. Curry is receiver: Farmers' State bank, Washington. State Savings bank, Leavenworth. Farmers' State bank, Quenemo. C. M. Condon & Co., State bank, Oswego. Traders' State bank, Arkansas City. Citizens State bank, Geuda Springs. Exchange State bank, Wichita, State bank of Hope. Citizens' State bank, Harper. Farmers State Bank, Belmont. Mr. Curry has just been appointed receiver of the Citizens State Bank of Harper, the last bank to be closed by State Bank Commissioner Foster. Following -are the institutions now operating under private receivers: Citizens State Bank, Manhattan. People's State Bank. Salina. Broeker-Lefferdink Bank, Salina. Farmers and Merchants Bank, Pawnee Rock. Farmers State Bank, McCune. Viola State Bank, Viola. Aulne State Bank, Aulne. Hanover State Bank, Hanover. Farmers State Bank, Spring Hill.

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NEW BANK RECEIVER

Lewis Wilson, Hutchinson, Is Successor of B. V. Curry—In City Today.

IS GOING OVER ACCOUNTS

M. L. Bishop Will Continue as Manager for Receiver of Local Defunct Bank.

Lewis Wilson, Hutchinson, Kan., has been appointed receiver of the State Savings bank here succeeding B. V. Curry who has resigned. Mr. Wilson and Mr. Curry, the former receiver, arrived here this morning and were going over the accounts today preparatory to Mr. Wilson assuming control. He is expected to complete the work at the local bank tomorrow.

Mr. Wilson was appointed by the new bank commissioner for Kansas, C. J. Peterson. He has had many years experience as a banker and also as a National bank examiner. He stands high in the esteem of the bankers over the state.

Under the policy adopted by F. H. Foster, former state bank Commissioner, Mr. Curry was appointed receiver for all of the defunct banks in Kansas which failed after January 1, 1922. Up to the time he sent in his resignation Mr. Curry was receiver for nineteen banks, and it is now necessary for his successor to check over all of these banks in order to give Mr. Curry a receipt and release him from responsibility.

Curry Well Known Here.

Mr. Curry is quite well known in this city, and has made a great many friends on account of the manner in which he has conducted the affairs of the bank since its failure. He is an experienced banker, and expects to again engage in the banking business, but so far has not made any definite arrangements as to his future.

Bishop in Charge.

It is reported that there will be no change in the management of the bank here and that M. L. Bishop will continue as manager for the receiver, the same as he was acting under Mr. Curry. This will be very pleasant news for the many friends Mr. Bishop has made in Leavenworth as he is very well known both in the city and Fort Leavenworth, where at one time he had charge of the Army National bank.

"It gives me great pleasure to say that Mr. Bishop's services have been most satisfactory," said Mr. Curry to a reporter today. "He has had a very perplexing and aggravating position and should be congratulated on the manner in which he is collecting the assets of the Bank. My experience enables me to judge the results

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LAW GETS ARTHUR MOSSE.

Former K. U. Coach and Hog Breeder Held on Coast.

Leavenworth, Kas.—Arthur St. Leger Mosse, former Kansas university football coach and nationally known breeder of Chester White hogs, has been arrested at Sawtelle, Cal., according to a telegram received from M. L. Bishop, assistant to the receiver in charge of the defunct State Savings Bank of Leavenworth.

Mosse is wanted in Leavenworth to answer three counts charging fraud in his statement of financial resources made in connection with applications for loans from the bank in July 11, 1921.

It is not known where Mr. Mosse's family is at present.

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LAW GETS ARTHUR MOSSE.

Former K. U. Coach and Hog Breeder Held on Coast.

Leavenworth, Kas.—Arthur St. Leger Mosse, former Kansas university football coach and nationally known breeder of Chester White hogs, has been arrested at Sawtelle, Cal., according to a telegram received from M. L. Bishop, assistant to the receiver in charge of the defunct State Savings Bank of Leavenworth.

Mosse is wanted in Leavenworth to answer three counts charging fraud in his statement of financial resources made in connection with applications for loans from the bank in July 11, 1921.

It is not known where Mr. Mosse's family is at present.

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Exerpts the Extreme.

RECEIVER IS NOT of LeavenDetailed Custodian Denies worth Bank Were Wasted. Funds

Kans., Aug. charge of the receiver bank here funct State detailed statemade today which he branded ment, extracts from report the auditors, recently examined bank which alleged irregular books, transactions the receivership. In statement Mr. Bishop contradicted several the tracts from auditors' report and that had failed to explain several nection with liquidation of the bank's assets charged by auditing company. purported from report that filed of the condition of the State Savings exceedingly Bishop the first place surprised think that auditors have peatedly referred me the ceiver this bank. The only position have that the The manager auditors state the facts simply pertaining some sales made by bank, but there Inferthat these were given proper. "Not only the two sales ferred but sale made every any the were and that petition signed the and the bank addressed the judge the Leavenworth county, asking authority the court to them make sale In every instance compromise. and beginning with first receiver, under bank commisFuster, every and receiver have every presented these applications the judge, and applications have been duly filed record and the court has approved the continued. stated that the statement the clated Press dispatch that barn built on farm near Valley Falls had been sold. and paid for ceivers The barn built almost before property sold, and paid for before the of farm that these would inform Mr. Bone that not explained them the this. the matter them when they made the and of the formation and my authority for making charge not only shown them, also the bank the statement clared. Replying to the auditor's that certificates deposit accepted in satisfaction certain against the Schalker Packing company which into bankruptcy. Mr. Bishop explains follows: simply means that cepted company certain certificates of deposit, that has been duly signed offsets claims the hank had against the packing this way collectabout all the packing company owed the bank. short time after this company went into date they have paid their creditors cents the dollar. This what the bank would have realized claim had these certificates been bis charge that had swers failed collect judge(Continued Page Two)

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Bank Receiver Thinks Auditor Report Unfair

(Continued from Page One.) had to with the of question torney's fees." Bishop emphatically denied accounts that her had been discharged. fact that told Mr. Docking some time ago that wanted relieved on August About the last Topska and at the earnest request Mr. Docking, agreed to remain my present position until August

WILL INQUIRE RECEIVERSHIPS. Topeka, Kan., Aug. Revelations alleged irregulariin the receivership of the State Savidgs Bank of Leavenworth will bring more thorough Inquiry into other receiverships, declared Roy Bone,state bank commissioner to. day. Probably three score bank failures within the last four or five years were included under the sweeping investigation order of the the legislature, and likely that the state bank department will pro. ceed to have some of them audited. Attorney General Griffith handed the voluminous record of the bank audit to. and' immediately began study of the evidence and of the laws to fraud, to determine whether prosecution is warranted. Mr. Griffith Brookens, Topeke police judge, special assistant attorney general to take charge of the legal inquiry into the alleged Irregularities. The examination of the audit and of pertinent statutes will probably quire more than week, the attorgeneral said. Other Irregularities.

New facts were coming to light today as the study of the audit continued. In the case the Bankers' Investment Company, which bought $181,524.71 worth "book value" assets of the bank for $15,000, the audit shows Malo, who arranged the sale, celved not only commission $500 for selling the property to but his own note for $5,500 included in the assets taken over. The report shows that Bishop, acting for the ceiver, paid off more than $1,100 back due taxes on real estate Main's company. In the face of Bishop's denial certain contained in the audit. the report shows that be not only paid $1,373 for new barn on farm sold Hayden, Topeka lawyer, but also spent $62 for porch on the house. He also paid from the bank's assets nearly $7,500 in delinquent taxes before the transfer to Hayden was effect. ed, the audit declared. These were included in the sale of of book assets the Topeka attorney, for which Hayden is declared to have paid $48,000.