Oswego State Bank (Oswego, KS)

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Oswego Bank Closes. (By the Associated Press.) Topeka, Kans., April 18.—Inability to collect on loans caused the closing of the Oswego, Kansas, State Bank today, according to information received at the state bank commissioner's office here from Commissioner Carl J. Peterson at Wichita. The Oswego State had $30,000 capital and an equal amount of surplus. Deposits amounted to $411,000 and loans aggregated about $519,000, it was stated. Fred Perkins is president, and J. W. Marley, cashier.

Had Staved Off Crisis. Parsons, Kans., April 18.—Recently the Oswego State Bank, one of the oldest banking institutions in Labette county, survived a heavy run by depositors. To stop the run a mass meeting of citizens and depositors was held in that city. The run started shortly after the Farmers National Bank of this city was closed after a three-day run on its resources.

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OSWEGO, KAS., BANK CLOSES.

Inability to Realize on Loans After Run Causes Failure.

TOPEKA, April 18.—Inability to collect on loans caused the closing of the Oswego State Bank today, according to information received at the state bank commissioner's office here from Commissioner Carl J. Peterson at Wichita. The Oswego bank had $30,000 capital and an equal amount of surplus. Deposits amounted to $411,000 and loans aggregated about $519,000, it was stated. Fred Perkins is president, and J. W. Marley cashier.

PARSONS, KAS., April 18.—Recently the Oswego State Bank, one of the oldest banking institutions in Labette County, survived a heavy run by depositors. To stop the run a mass meeting of citizens and depositors was held. The run started shortly after the Farmers' National Bank here was closed after a 3-day run.

Rummage Sale at Swope Settlement.

A rummage sale for persons in the neighborhood and those interested in the welfare of the Thomas H. Swope Settlement will be at the settlement house, 1608 Campbell street, Saturday, April 26. The women's auxiliary will be in charge. Persons having clothing or articles to give are asked to deliver them at the settlement, or call Mrs. Frank A. Baker at Westport 1208.

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"Run" Closes Bank.

OSWEGO, Kan., April 19.—The heavy run of depositors on the Oswego State bank during the past month, which resulted in the closing of the bank amounted to $84,000, it was announced Saturday by officials of the institution. The bank had a capital of $30,000, surplus of $30,000 and deposits of $318,000.

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MARLEY AND THE OSWEGO STATE BANK

For forty-three years J. W. Marley had been directly interested and associated with the Oswego State Bank. J. W. Marley was known and recognized by the Labette County Bankers' Association as the father of banking institutions in this county. For forty-three years he had been one of the guiding hands in a financial way among the citizens of his county and right on the verge of the sun set of life, the unavoidable misfortune overtook the institution which J. W. Marley had fostered all these years, and the doors of the Oswego State Bank were closed from further banking business by the state banking department Friday morning.

The closing of the doors of this old established bank in the county seat of Labette, has caused untold regrets. J. W. Marley has been a man with exceptional ability. His heart has been kind and generous, yet the bigness of his heart has been confined within the walls of high ideals, with the ambition to serve his people and community in a business way that would lend ambition to his creditors and build his community and the county to a better and higher financial standing.

J. W. Marley has spent the best years of his life to serve the people of Oswego and surrounding country in the banking business. All these years he has been wrapped mind and soul to serve and do the best he possibly could to give service in keeping with the principles of sane banking.

But the war period of prosperity followed by the after war depression, so depreciated the value of chattels, real estate, and other securities that brought forth a calamity situation of frozen credits to such extent that life time depositors became alarmed with the result the deposits declined beyond endurance and the bank was suspended from further business at the close of Thursday's activities.

J. W. Marley was not to blame for the situation. It was one of the unavoidable circumstances that is liable to befall the best regulated business enterprises under such trying circumstances.

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Charged With False Report. (By the Associated Press.) Parsons, Kans., Apr. 24 — John Grant of Chetopa, Kans., was free on bond today following his arrest last night on a charge of circulating a rumor against a sound bank. Grant was arrested when officials of the Chetopa State Bank complained Grant was circulating untrue reports of their institution because of a personal dislike for the bank. The Chetopa State Bank is one of the oldest and strongest banks in southeastern Kansas.

The Farmers National Bank of this city closed its doors a few weeks ago after a heavy run on its resources and the Oswego State Bank of that city went to the wall last week after a vain effort to recover from a run.

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PEDDLED RUMORS ON BANK, ARRESTED

John Grant of Chetopa—Accused of Circulating Untrue Reports.

Parsons, Kan., April 24.— John Grant of Chetopa, Kan., was free on bond today following his arrest last night on a charge of circulating a rumor against a sound bank. Grant was arrested when officials of the Chetopa State Bank complained Grant was circulating untrue reports of their institution because of a personal dislike for the bank. The Chetopa State Bank is one of the oldest and strongest banks in southeastern Kansas.

The Farmers National Bank of this city closed its doors a few weeks ago after a heavy run on its resources and the Oswego State Bank of that city went to the wall last week after a vain effort to recover from a run.

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BANK "GOSSIPER" OUT ON BOND

Parsons, Kan., April 25.—John Grant of Chetopa, Kan., was free on bond today following his arrest last night on a charge of circulating a rumor against a sound bank. Grant was arrested when officials of the Chetopa State Bank complained Grant was circulating untrue reports of their institution because of a personal dislike for the bank. The Chetopa State Bank is one of the oldest and strongest banks in southeastern Kansas.

The Farmers National Bank of this city closed its doors a few weeks ago after a heavy run on its resources and the Oswego State Bank of that city went to the wall last week after a vain effort to recover from a run.

The Parsons Republican says of the case: Starting a rumor about a bank which is apt to cause trouble with its depositors threatens to become serious business in Labette county.

Yesterday a small run started on the Chetopa State Bank at Chetopa, one of the strongest banks in the county, but the cooler heads checked it before closing time. County Attorney Ratner was notified of the rumor that had been started in Chetopa which resulted in a small run, and his deputy, Chas. Cory, hurried from Oswego to Chetopa and made an investigation.

Late yesterday, he caused a warrant to be issued out of Justice Mullenhour's court in Chetopa, charging John Grant with responsibility for the rumor. Grant was arrested by Constable Lancaster and gave bond in the sum of $1,000 for appearance Friday morning.

"We traced the report to one man and ordered his arrest," was Cory's explanation last night.

The law provides severe penalty for persons guilty of malicious and slanderous reports that result in loss of confidence in any bank.

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DEPOSITS SECUR'D

State Bank Commissioner C. J. Peterson, Here Tuesday, Had Good News for Oswego State Bank Depositors.

RECEIVER HAS BEEN NAMED.

R. T. Krieppe, of Topeka, Receiver, and Certificates on State Guaranty Fund to All Depositors Prior to March 15.

State Bank Commissioner C. J. Peterson, of Topeka, was in the city Tuesday on business concerning the defunct banks of this section. His visit had a particular interest and significance for the folks of this city and community. He made known the fact that he is holding that all deposits in the bank up to March 15 or at the time he issued his order, were covered by the State Bank Guaranty Fund and that he will issue certificates of Deposit for same at once. He also stated that he is submitting the matter of the coverage of the deposits that were made after March 15 to the Board of advisors of the Guaranty Fund and if they are able to show him that the rest of the deposits made after March 15, are covered by it, that he will issue Certificates of Deposit on the Guaranty Fund for them also. This is one of the best pieces of information that has been handed out here for some time and will bring satisfaction and restore confidence to the many depositors of this bank, who have been on the anxious seat for months until this important question could be determined.

R. T. Krieppe, of Topeka, was appointed the receiver for the Oswego State Bank on October 18th, which was the six months limit from the time the bank was closed. John E. Wagner, who has been in personal charge here since the doors were closed, will continue here for the present at least.

Peterson's visit held interest for the folks in the McCune district, also. While here, he and Attorney E. W. Columbia completed arrangements for closing up the affairs of the bank there by the first of the year. He expects to have 25 of the defunct banks of the state closed up and paid out soon after the first of the year.

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INTO COURT RULING

GUARANTY FUND DECISION HITS

Only One Million Dollars Available Now To Meet Claims of Five Millions. the Associated Press) Topeka, Kans., April state bank fund guaranty dealt two serious blows by the Kansas supreme court in its decision late In test case brought by ber of state banks to determnie their responsibility to the fund afttheir withdrawal from its protection, the court held the banks could be considered liable only the extent of bonds deposited them with the state second case brought by the Labette county cost the guaranty fund more than because failure Carl as state bank commissioner notify depositors the Oswego state bank that was longer protected by the state fund before its failure 1924. Claims aggregating nearly five million dollars are pending against guaranty fund. The decision court, ruling that banks from the guaranty fund are liable only to the extent of their deposited bonds. mákes available only one million dollars meet these claims. The court pointed out that bank may months notice its from the protection of the fund. These blows made impossible the payment claims against the fund and renprobable legislation amending repealing the guaranty law the next legislative session.

More than $300,000 in deposits was stake the mandamus suit brought against the state bank the Labette counThe action aftermath the failure of the Oswego State bank April 1924. The county treasurer, believing the bank the protection the state bank guaranty fund. had county funds deposit in the institution closed doors. Private depositors had in the In suing Roy Bone, bank County Payne Ratner sought to fix rather his Carl for the Mr Peterson had notified bank about month before its collapse that its membership the fund canceled of repeated lations of the banking The county contended the missioner did far enough. Instead merely instructing the bank officers "remove the guarenty reference guaranteed deposits from the windows and stationery, he also should have posted the bank card showing the depositors that their funds longer protected by the Security to the depositor, not curity to the bank, was the pose the Mr. Ratner quoted the title the law act for the security in the banks of Kansas, the bank depositors guaranty fund. "Membership the guaranty, fund, said county attorney made by state bank the state bank benefit of third party, depositor The has no more right to revoke the contract than fire insurance has right to cancel the agent policy when he sees building Counsel to defend the commissioner was employed the state bankers association. torneys contended the commissioner's duty was to protect the against bad banking guaranty law contract the fund and member banks by which the fund of the bank,' they first ment the guaranteed banks must stand rigid and must be solvent and properly managed."