Butler County State Bank (El Dorado, KS)

Episode Information

Episode UID
83018571479
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
8301857 routing
Routing Number
83-0185
Start Date
March 30, 1923
Location
El Dorado, Kansas (37.817, -96.862)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0ae2c9faba670644

Response Measures

None

Events (3)
1. March 30, 1923 Suspension
Cause
Government Action
Cause Details
Closed by order of Carl J. Peterson, Kansas state bank commissioner.
Newspaper Excerpt
which was closed Friday morning under orders of Carl J. Peterson, state bank commissioner.
Source
newspapers
2. April 2, 1923 Receivership
Newspaper Excerpt
W. F. Benson of El Dorado, today announced that he would accept the appointment as receiver of the Butler County State Bank, which was closed Friday morning under orders of Carl J. Peterson, state bank commissioner.
Source
newspapers
3. May 17, 1928 Other
Newspaper Excerpt
Kansas supreme court...ruling...in the Butler County Bank case upheld the judgment...The El Dorado bank failed in 1923. It had been in shaky condition for several years and this fact was known to the directors, as well as the state banking department.
Source
newspapers

Newspaper Articles (3)
1. April 3, 1923 The Wichita Eagle Wichita, KS
Article from The Wichita Eagle, April 3, 1923

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Article Text

BENSON IS NAMED BANK RECEIVER Officers Balancing and Verifying Accounts Before Issuing Certificates EL DORADO, KAN., April 2.— W. F. Benson of El Dorado, today announced that he would accept the appointment as receiver of the Butler County State Bank, which was closed Friday morning under orders of Carl J. Peterson, state bank commissioner. Louis Wilson, assistant bank commissioner in charge of the failed bank's Department, arrived today in El Dorado to take charge. J. S. McMann, an examiner, also is here. The first task facing the officers is to balance and verify accounts. This job should be completed by the end of this week. "I see no reason," stated Mr. Wilson today, "why it will not be possible to begin to issue guaranty certificates of deposit early next week. As soon as accounts are verified, showing no deductions against them, we should be in a position to issue these certificates to depositors." The department officials are making every effort to collect all loans that the bank has made. It was reported today that some of the depositors in the Butler County State Bank have been approached by speculators offering to pay cash for balances; taking a liberal discount. Twenty percent was the amount quoted in one instance. Local bankers are unanimous in discouraging such practices.

2. April 3, 1923 The Wichita Eagle Wichita, KS
Article from The Wichita Eagle, April 3, 1923

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Article Text

Addressing his first American audience, Lord Robert, who has come to the United States for a series of speeches on behalf of the league declared it was essential for world safety to "turn the minds of nations from force as the only remedy." "Take the question of reparations," he said, "What is it that makes the question so intractable? It is, that though the French are anxious for the Germans to pay, they are also anxious lest if they are allowed to get on their feet sufficiently to pay, they will become again a danger to the security of France. "Do not think I am attacking the French on that account. No one who has read the history of these countries even cursorily, will say the fears of France are unreasonable—or for the matter of that, the fears of Germany either. "There is a long history behind the reparations questions of the present day, and if we are to bring some remedy to this state of things, the first thing we have to do is to allay international fear and suspicion. "We have to get a new spirit among the nations of the world. We have got to turn their minds from force as the only remedy. We have got to teach them that persuasion and public opinion are of far greater potency than mere physical compulsion." Lord Robert declared he believed the covenant of the League now operating was adequate to the purpose, but that if America would devise a better plan or suggest alterations in the organization of the present league, he would favor them. ROBBERS USE BRICKS KANSAS CITY, April 2.—Rings and watches valued at $2,000 were taken from the display windows of a jewelry store at 1104 Main street last night after the window had been broken with a brick. Officers Balancing and Verifying Accounts Before Issuing Certificates EL DORADO, KAN., April 2.—W. F. Benson of El Dorado, today announced that he would accept the appointment as receiver of the Butler County State Bank, which was closed Friday morning under orders of Carl J. Peterson, state bank commissioner. Louis Wilson, assistant bank commissioner in charge of the failed bank's Department, arrived today in El Dorado to take charge. J. S. McMann, an examiner, also is here. The first task facing the officers is to balance and verify accounts. This job should be completed by the end of this week. "I see no reason," stated Mr. Wilson today, "why it will not be possible to begin to issue guaranty certificates of deposit early next week. As soon as accounts are verified, showing no deductions against them, we should be in a position to issue these certificates to depositors." The department officials are making every effort to collect all loans that the bank has made. It was reported today that some of the depositors in the Butler County State Bank have been approached by speculators offering to pay cash for balances, taking a liberal discount. Twenty percent was the amount quoted in one instance. Local bankers are unanimous in discouraging such practices. WOMAN AIDS POLICE Mysterious Person Causes Booze Peddlers To Flee From City MARION, OHIO, April 2.—An alleged mysterious woman, who is said to be using both the telephone and the

3. May 17, 1928 The Milan Standard Milan, MO
Article from The Milan Standard, May 17, 1928

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Article Text

Liable for Kansas Directors Deposits Accepted in Period of Insolvency. Kansas Washington, May law, under which directors of state banks are held liable for deposits received after their banks become insolvent, was sustained today by the supreme court in twelve cases arising out of the failure of the Butler County State Bank at El Dorado, Kansas. H. Ferry, one of the directors, and the executor of A. Kramer another, contested judgments awarded Alice M. Ramsey and other depositors. They contended the law was invalid because it was based on the presumption that the directors, under all circumstances. knew whether the bank was insolvent, and could therefore be held individually liable for all deposits received after the bank should have been closed. The ruling of the United States supreme court today in the Butler County Bank case upheld the judgment of the Kansas supreme court February 12, 1927, under which it was held that officers and directors of state banks in Kansas were liable for deposits after the banks became insolvent. The El Dorado bank failed in 1923. It had been in shaky condition for several years and this fact was known to the directors, as well as the state banking department. The late J. B. Adams, for years prominent Republican leader and former state senator, was the principal stockholder and officer. He died in 1921 managing while an examination of the bank was in progress. Suits were filed by several depositors, after the failure, against the directors and officers. It was alleged the defendants became individually liable when they approved acceptance of deposits after it was known the bank was in an unsound condition.