9357. Sedalia Savings Bank (Sedalia, MO)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
July 22, 1885
Location
Sedalia, Missouri (38.704, -93.228)

Metadata

Model
gpt-5-mini
Short Digest
df39fe8c821ca770

Response Measures

None

Description

Multiple contemporaneous articles (July 1885) report embezzlement by bookkeeper Emmett (R. E.) King, discovery of large defalcations (~$38,000–$48,000 plus $10,000 returned), a heavy run by depositors while the bank was paying out, and the board's decision to suspend/close and put business in process of liquidation while assuring depositors they could be paid. OCR variations of the clerk's initials (Emmett / R. E. King) appear across articles; I normalized to Emmett King as named. The coverage indicates the bank moved to close and liquidate rather than resume normal operations; no reopening is reported.

Events (2)
1. July 22, 1885 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery of systematic embezzlement/defalcations by bookkeeper Emmett (R. E.) King totaling roughly $38,000–$48,000 plus an earlier $10,000, undermining confidence in the bank's solvency.
Measures
Bank paid depositors on demand; published notice arranging to meet every obligation; aided by an expert from Kansas City; permitted depositors to call and receive their deposits.
Newspaper Excerpt
Yesterday there was a big run on the bank by depositors, but it was paying promptly, and no loss is feared.
Source
newspapers
2. July 22, 1885 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors announced suspension/closing of the bank after discovery of large embezzlements by the bookkeeper and resultant losses; business affairs to be put in process of liquidation without assignment.
Newspaper Excerpt
The board of directors ... determined to pay all depository on demand in full and to close the bank.
Source
newspapers

Newspaper Articles (5)
1. July 28, 1885 The Sedalia Weekly Bazoo Sedalia, MO
Article from The Sedalia Weekly Bazoo, July 28, 1885

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Article Text

FOR LARCENY. Emmett King is Arrested for Grand Larceny. He is Charged With Taking $10,000 of Bank Funds. Last night about 10 o'clock Emmett King, son of Dr. Willis P. King, was arrested by Constable Carnes on a warrant sworn out by John J. Risler, one of the directors of the Sedalia Savings bank, charging King with the grand larceny of $10,000 of the bank's funds. Young King was at once taken before Judge P. B. Riffe, and gave bonds for his appearance. For some time past Sedalia has been rife with a thousand rumors concerning young King's disappearance, and fabulous stories as to his shortages at the bank for which he was a clerk have been bandied from mouth to mouth, but because of the persistent denials of the direc ors that they had suffered any loss and upon their EARNEST SOLICITATIONS, backed by the high standing and honorable name of his father whose reputation is al most national, together with an honest desire to prevent any injury to the bank, the matter has been studiously kept out of print in the city papers. But last night the board of directors met, and as will be seen by their notice in another column determined to pay all depository on demand in full and to close the bank. Had the matter stopped here probably nothing more would need to be said, but as stated this was followed by the arrest of Emmett King on the charge of the larceny of money which it has been publicly proclaimed he had returned to the bank, and under these circumstances It would be simple injustice to all the parties concerned not to speak the facts as they can be learned. It is authoritatively stated that when Emmett King left Sedalia he took with him this $10,000 pickage, and that through the influence of his father, who went after him, it was returned intact. YOUNG KING took his arrest very coolly, and remarked he expected to go to the penitentiary, that he was fully convinced when he came home that would be the result, but that he would rather do so than be a fugitive from justice. He seems keenly to fed the great mistake which fast living has caused him to commit, and it is to be hoped nne EO young and so able will be saved from too harsh a punishment, and that by proper restitution of the losses caused he may yet have an opportunity to regain his sphere of usefulness.

2. July 30, 1885 Dodge City Times Dodge City, KS
Article from Dodge City Times, July 30, 1885

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Article Text

A FESTIVE CLERK. By False Entries He Succeeds in Wrecking a Bank. SEDALIA, Mo., July 22.-The reports of the defalcations of. Emmett King, the bookkeeper of the Segalia Savings Bank, which have been current for nearly a week, were doubted by many and denied by the bank, though known to be true by a few. The following card published yesterday told 'the tale which could no lönger be suppressed: "To the public: At a meeting of the Board of Directors of the Sedalia Savings Bank this day held, it was deemed just alike to the bank and the public to state that the bank has sustained serious losses in having its funds abstracted. The Directors have perfected arrangements by which the bank is prepared to meet every dollar of its obligations. Its business affairs will be put in process of liquidation without making an assignment. Depositors can call at the bank at their pleasure and receive their deposits." The bank officials, with the aid of an expert from Kansas City. have examined the books and found that there have been systematic detalcations for the last five or six years to the amount of about $28,000 over and above the $10,000 returned, or nearly the capital stock of the bank, $50,000. It is believed that more will be discovered. False entries were made on the daily balance sheets, sometimes to the amount of $1,000. How it escaped the observation of the cashier SO long is a surprise to all, as is King's retention when his habits must have been known to the officers. Yesterday there was a big run on the bank by depositors, but it was paying promptly, and no loss is feared. The deposits amounted to $130,000. Late Monday night King was arrested on a State warrant sworn out by John J. Risler, one of the directers.

3. July 30, 1885 The Abilene Reflector Abilene, KS
Article from The Abilene Reflector, July 30, 1885

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Article Text

A FESTIVE CLERK. By False Entries He Succeeds in Wrecking a Bank. SEDALIA, Mo., July 22.-The reports of the defalcations of Emmett King, the bookkeeper of the Sedaha Savings Bank, which have been current for nearly a week, were doubted by many and denied by the bank, though known to be true by a few. The following card published yesterday told the tale which could no longer be suppressed: "To the public: At a meeting of the Board of Directors of the Sedalia Savings Bank this day held, it was deemed just alike to the bank and the public to state that the bank has sustained serious losses in having its funds abstracted. The Directors have perfected arrangements by which the bank is prepared to meet every dollar of its obligations. Its business affairs will be put in process of liquidation without making an assignment. Depositors can call at the bank at their pleasure and receive their deposits." The bank officials, with the aid of an expert from Kansas City. have examined the books and found that there have been systematic detalcations for the last five or six years to the amount of about $28,000 over and above the $10,000 returned, or nearly the capital stock of the bank, $50,000. It is believed that more will be discovered. False entries were made on the daily balance sheets, sometimes to the amount of $1,000. How it escaped the observation of the cashier SO long is a surprise to all, as is King's retention when his habits must have been known to the officers. Yesterday there was a big run on the bank by depositors, but it was paying promptly, and no loss is feared. The deposits amounted to $130,000. Late Monday night King was arrested on a State warrant sworn out by John J. Risler, one of the directers.

4. July 30, 1885 The True Northerner Paw Paw, MI
Article from The True Northerner, July 30, 1885

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Article Text

A Book-Keeper Wrecks a Bank. A Sedalia (Mo.) special says th at "an examination of the books of the Sedalia Savings Bank. from which R. E. King, the bookkeeper, embezzled $10,000 on July 3 and absconded, revealed that there had been systematic defalcations during the last five years, amounting to about $38,000, besides the $10,000 returned, making $48,000, or nearly the capital stock of $50,000. King was arrested on a warrant sworn out by one of the directors and placed under bond of $1,500, which was to-day raised to $5,000. Officers of the bank have published a card saying that on account of serious loss by having their funds abstracted it would be necessary to suspend, but arrangements had been made to pay every dollar of the deposits with interest, and all depositors could call and get their money at pleasure. The matter had been kept quiet by the bank, which had denied the reports that had gotten out, and the announcement created quite a sensation. Nearly all concerned censure the bank officers for retaining King when his bad habits were well known.

5. July 31, 1885 The Iola Register Iola, KS
Article from The Iola Register, July 31, 1885

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Article Text

A FESTIVE CLERK. By False Entries He Sacceeds in Wrecking a Bank. SEDALIA, Mo., July 22.-The reports of the defalcations of Emmett King, the bookkeeper of the Sedalia Savings Bank, which have been current for nearly a week, were doubted by many and denied by the bank, though known to be true by a few. The following eard published yesterday told the tale which could no longer be suppressed: "To the public: At a meeting of the Board of Directors of the Sedalia Savings Bank this day held, it was deemed just alike to the bank and the public to state that the bank has sustained serious losses in having its funds abstracted. The Directors have perfected arrangements by which the bank is prepared to meet every dollar of its obligations. Its business affairs will be put in process of liquidation without making an assignment. Depositors can call at the bank at their pleasure and receive their deposits." The bank officials, with the aid of an expert from Kansas City. have examined the books and found that there have been systematic detalcations for the last five or six years to the amount of about $28,000 over and above the $10.000 returned, or nearly the capital stock of the bank, $50,000. It is believed that more will be discovered. False entries were made on the daily balance sheets, sometimes to the amount of $1,000. How it escaped the observation of the cashier S0 long is a surprise to all, as is King's retention when his habits must have been known to the officers. Yesterday there was a big run on the bank by depositors, but it was paying promptly, and no loss is feared. The deposits amounted to $130,000. Late Monday night King was arrested on a State warrant sworn out by John J. Risler, one of the directers.