Midwest Reserve Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust
Start Date: January 1, 1921*
Location: Kansas City, Missouri (39.100, -94.579)

Metadata

Model: gpt-5-mini
Short Digest: 8b8183900d9d0677

Response Measures

None

Description

Article (1926-11-13) recounts historical closing of the Midwest Reserve Trust Company after a 1920 merger; states It closed a year later. Depositors were paid... No contemporaneous run is described. Exact closure date not given; contextual timeline implies closure in 1921 after the 1920 merger.

Events (1)

1. January 1, 1921* Suspension

Cause Details: Article does not specify a triggering cause for the suspension/closure beyond a prior merger in 1920; insolvency or business failure implied but not detailed.
Newspaper Excerpt: It closed a year later. Depositors were paid, but directors and stockholders lost investments.
Source: newspapers

Newspaper Articles (1)

1. November 13, 1926 New Britain Herald New Britain, CT

Article from New Britain Herald, November 13, 1926

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Article Text

KANSAS CITY BANK RUN CLOSES DOORS Federal Trust Deposits Thought by Officials to Be Sale Kansas City, Nov. 13 (A))-The state finance commissioner today was in charge of the Federal Trust Company of Kansas City which suspended business yesterday following recent heavy withdrawals. The bank was organized under the state banking laws with a capital of $200,000 and a surplus of $40,000. Deposits totaled approximately $2,000,000 and resources were listed at nearly $3,000,000. The institution was accorded privileges of the federal reserve system but had withdrawn its membership in the local Clearing House Association a year ago and had cleared its city checks through the Federal Reserve bank. P. E. Laughlin, president, and a former deputy Kansas bank commissioner, said he thought the deposits were safe. A city deposit of $300,000 was protected by government bonds in the First National bank. Funds of the state of Missouri were covered by a surety bond. On presentation of items calling for $100,000 at the Federal Reserve clearance yesterday, the Trust Company board voted to suspend. It was understood the company had presented all eligible paper for rediscount through the Federal Reserve system. The rediscounts were estimated at approximately $400,000. Laughlin organized the Midwest National Bank and Trust company here 10 years ago. This institution was merged in 1920 with the national reserve bank under the name of the Midwest Reserve Trust company. It closed a year later. Depositors were paid, but directors and stockholders lost investments. A short time later Laughlin became head of the Federal Trust company. Martin F. Ryan, for twenty years general president of the brotherhood of railway carmen and a vice president of the American federation of labor. who was listed as chairman of the Federal Trust company board, last night said he resigned several weeks ago because other duties kept him out of the city.