9413. Security Bank (St Joseph, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 12, 1926
Location
St Joseph, Missouri (39.769, -94.847)

Metadata

Model
gpt-5-mini
Short Digest
aed428619ccf6ea3

Response Measures

None

Description

Security Bank (referred to as Security State Bank in some articles) at St. Joseph, MO, closed May 12, 1926 and was taken into the custody of the State Finance Commissioner and a liquidator appointed. Articles attribute the closing to contagion/fear from other local bank failures and agricultural depression; there is no clear description of a discrete depositor run on this bank itself in the provided items (runs are described for nearby institutions). Thus this is classified as a suspension that became a permanent closure (receiver/liquidation). Dates corrected from OCR where appropriate.

Events (4)
1. May 12, 1926 Suspension
Cause
Local Banks
Cause Details
Closed May 12, 1926 after contagion/fear from failures of nearby institutions (First Trust Co., Fidelity, Bartlett) and depressed agricultural conditions; then placed in hands of State Finance Commissioner for liquidation.
Newspaper Excerpt
when the bank closed May 12. 1926.
Source
newspapers
2. May 13, 1926 Receivership
Newspaper Excerpt
Finance Department Deputy ... George W. Freund to the Security Bank at St. Joseph. ... the four are now the hands of the State Finance Commissioner. ... Robert Orr, liquidator for the Fidelity and E. W. Brennan, liquidator for the Security, also testified and presented books and records of the banks to the grand jury. (articles refer to liquidator E. W. Brennan for the Security).
Source
newspapers
3. April 1, 1927 Other
Newspaper Excerpt
The cashier and five directors of the Security State Bank, which failed May, were arraigned today on indictments returned. ... The grand jury investigation ... presented books and records of the bank to the grand jury. (indictments and criminal investigation of officers following failure).
Source
newspapers
4. September 4, 1931 Other
Newspaper Excerpt
Dividend in Security Bank liquidation anticipated. ... when the bank closed May 12, 1926. ... A dividend of 10 per cent ... was paid to the city Dec. 18, 1926. The receiver to declare an 8% final dividend. (liquidation dividend distributions years later).
Source
newspapers

Newspaper Articles (7)
1. May 14, 1926 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, May 14, 1926

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Article Text

State Banks Closed Since First of Year Total Twenty-Six Failure of Savannah Institution Hastened Action at Nodaway. By Associated Press. JEFFERSON CITY. MO., May 13.Official notice of the action of the Board of Directors of the Farmers' Bank, Nodaway, Mo., yesterday, in closing the doors of the institution, was received at the State Financial Department here today. Finance Department officials said that the Farmers Bank was preparing for voluntary liquidation of assets, but the closing of the First Trust Company, Savannah, Mo., caused the directors to place the bank in the hands of the Finance Department for liquidation. $421,000 Resources. Total resources of the Savannah bank was $421,000. No official notice of the reported closing of the Farmers' State Bank, Rea, has been received at the here, was said. The last official statement of the Farmers' Bank, Nodaway, showed resources at $31,917: loans, $25, 45 deposits, $19,173.89: capital, $10,000; undivided profits, $244. The Security State Bank, St. Jo. seph, with of approximately $323,000. was closed yester day by the Board of Directors, and its failure is thought to have hastened the closing of the Andrew County banks. List Grows. The three failures officially reported to the Finance Department, together with the unofficia report the Farmers' State Bank, Rea, brings the total of state banks to close since the first of the year up to twenty-six. Finance Department Deputy L. J. Mulligan has been sent to the Trust Company. C. L. Stout to the Farmers' Bank at and George W. Freund to the Security Bank at St. Joseph. Depositors Not to Lose. By Associated Press. ST. JOSEPH, MO., May 13.-There were no developments in the suspension yesterday of the Security Bank of St. Joseph and the three Andrew County, Mo., state banks, more or less closely connected with the St. Joseph bank. The Andrew County banks are the First Trust Company Savannah: Farmers' State Bank, Rea, and Farmers' Bank, Nodaway, and the four are now the hands of the State Finance Commissioner No statement has been given out, other than the officers of the St. Joseph bank saying the closing was due to frozen assets. held largely by the Savannah bank by it from the First National Bank which suspended year ago and the business of which was taken over by the First Trust Company, organized soon afterward. The say they do not be. lieve the depositors will suffer any loss, but that the stockholders may.

2. February 23, 1927 St. Joseph Gazette St. Joseph, MO
Article from St. Joseph Gazette, February 23, 1927

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Article Text

SECURITY BANK TO DEMAND PROBE Hold Mass Meeting and Select Committee to Wait Upon Judge H. Utz MORE THAN 150 ATTEND Will Ask That Circumstances Surrounding Closing Be Investigated By Grand Jury MAY DEPUTY Finance Commission Now in Charge Probably Will Be asked to Produce Books Investigation of the surrounding the closing of the Security Bank South Park, May Impends following the action than 150 of the defuner bank, met last night the Copeland Baptist church. Eighteenth and Cedar streets. After discuslasting more than hour an and half the men and women attending mass meeting voted unanimously to take up the matter of thorough probe of the affairs with Judge W. Utz the criminal vision of the circuit court and thereafter with the grand jury which meeting present. comprised of Veregge, Ferdinand MaGiesler and White, appointed Judge ask that the books the bank be turned over the court for spection. They will that in event any Irregularities are found. follow Closed 10 Months Ago that the grand jury will deputy finance commissioner charge Security bank. for the purpose of bringing light any unusual Incidents in nection with the closing the bank. Although has been approximately 10 since bank closed its doors, investigation has been made has been session the grand jury since closing. The grand also will call before Miss Effye Ehret, who was teller the bank when It was operation Miss Ehret employed another bank Others may appear before the body sometime Received One Payment Depositors the Security far have per cent their This made few before Christmas from funds derived from assets Mr. Brenable convert into cash The city had on deposit and the St. Joseph school district had on deposit the time the bank operations Judge Utz his Instructions the grand jury called attention the closing the Bartlett and delity Trust but made no the Security bank The jury the last few days to made study of the banking laws state set out the and this may mean that ready start examining the books these banking Reed was president of the Security Other officers Whitaker cashier: and these with and Beaghler, comprised the board of directors.

3. April 1, 1927 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, April 1, 1927

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Article Text

ARRAIGNED BANKERS Indictments Follow Closing of Two Banks With Heavy Loss to Depositors. JOSEPH Mo., April president the which closed Dec. ity Trust Co., Harold Stewart, his 28, and were arraigned cashier, Criminal Court Buchanan County indictments returned on the grand jury yesterday The father faces nine ments and the son five with the failure of the tion ity The elder Stewart charged with lending more than himself, obtaining signatures notes fraudulently, embezzling and accepting deposits he knew the failing The son is charged with accepting posits when he knew the bank Seven Others Arraigned The president, cashier five directors of the Security Bank, which failed .May were arraigned late on indictments yesterday They W. Reed, president: Paul Holme, cashier, and Holme Veach Wilson, Beale, William Whittaker and Beaghler, rectors. There are eight indictments against each charge cepting they knew bank failing and three lending. Dr. Holme is member of the Missouri State Board of Osteopathy and formerly was member of the St. Joseph Library Board. Beaghler secretary and cashier the First Trust at Savannah which failed last year. He is under indictment in County connection that failure The grand jury has been under since was called by Judge Utz. Cantley, State Finance Commiswas of the and Robert Orr, liquidator for dator for the Security also testified books and records and of the bank to the jury The Security Bank capitalized for and When officers stated that depression in the agricultural area was responsible, but belief was expressed that would lose So positors the dollar has only cents been paid depositors, but the liquidator expects to pay another 10 month. Attributed Failure to Fear. The Trust capitalized for and deposits taled About year American Exchange absorbed the Bank of Joseph. The failure of Fidelity was attributed by its officers psychology of fear. The depository few steps from located which closed Bartlett Trust Co., after heavy earlier in the

4. April 1, 1927 The Sedalia Democrat Sedalia, MO
Article from The Sedalia Democrat, April 1, 1927

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Article Text

BANKERS INDICTED WERE Cashier And Five Directors Accused In Bank Crash Associated ST. Mo., April Stewart, the Fidelity Trust Company which closed cember and Harold cashier of the bank, arraigned in the county criminal court on indictments returned by grand yesterday. The were the first accused appear from list nine indicted. The father faces nine indictments and the son five in connection failure the Fidelity. The elder Stewart charged lending more than $40,000 to him signatures fraudulently, embezzling accepting deposits knew the bank failing. The with accepting posits when he knew the bank failing. The president, cashier and five directors Security State Bank, which failed May 12, arraigned today indictments returned yesterday They W. Reed, president; Paul Holme. cashier, and Dr. Veach Wilson, Beale, William Whittaker and directors. There eight indictments against each man. Five charge cepting money when they know bank failing and three charge them Each gave bond $10,000 for trial in May. Dr. Holme member the Missouri State Board Osteopaand formerly the St. Joseph Library Beaghler of First Trust Company Sayannah, failed He under indictment in Andrew County in connection with that fail The grand jury investigation been under February called by Judge Utz. state finance was one the nesses Robert Orr, liquidator for the and Brennan, liquidator for the security, testified presented books records of the bank the grand jury. The Security Bank capitalizfor $10,000 and deposits When closed May officers stated that depression the agricultural responsible, the belief expressed that depositors would lose little. So far only 10 cents the dollar on have been to depositors, but the expects to pay an other cents next The Fidelity Trust capitalizfor $100,000 and deposits totaled About year ago sorbed the American Exchange Bank St. Joseph. The failure of Fidelity attributed its officers to the psychology fear. The institution located few steps from the Bartlett Trust Company, which closed earlier day, after heavy Fidelity deposithe the Bartlett they began run stitution. The grand jury returned Bart officers blame in nection with that failure. No payments to depositors have made the Fidelity four months for filing claims belief expressed banking circles that finally will between and cents dollar

5. April 1, 1927 Columbia Daily Tribune Columbia, MO
Article from Columbia Daily Tribune, April 1, 1927

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Article Text

Officers and Directors of Two St. Joseph Institutions Make Bond. INDICTED THURSDAY Security State and FidelTrust Failures. ity Involved. By The Associated Press. ST. JOSEPH. Mo., April president Fidelity Trust which closed cember son, cashier of the raigned county criminal court today. returned by the grand jury yesterStewarts were the first from the list of nine appear by bankers indicted. The father faces nine indictments and the five conection with the failure of the Fidelity. The elder Stewart charged with lending than $40,000 to himobtaining signatures with accepting deposits when the bank failing. The charged accepting deposits knew bank failing. The cashier and five directors of the Security State Bank, which failed May raigned today on indictments turned They are W. Seid, president: Paul Holme, cashDr. Veach Wilson, Beale, William Whittaker and Beaghter, directors. There are eight indictments against each Five charges accepting they knew the bank failing and three charge them with over lending. Each bond for $10,000 for trial May. Holme member of the Dr. State board of Osteopathy member of the and Joseph library board. Beaghler secretary cashier of First Trust company at Savannah, failed last He under which year. indictment Andrew county connection that failure. The grand jury has under since February way when called by Judge 14, H. Utz, stae the nance and Sobert Orr, liquidator Fidelity and E. Brenfor liquidator for the Security, testified presented books and and records of the bank to the grand The Security Bank was capitalizfor $10,000 and deposits When closed last May officstated that the area was belief expressed that the would little. So far cents the dollar have only depositors, the been paid liquidator expects pay another 10 next month. The Fidelity Trust was capital$100,000 and deposits totalAbout year ago absorbed the American Exchange Bank Joseph. The failure the Fidelity its officers the attributed by psychology The tion located steps from Bartlett Trust which the earlier the day, after closed When Fidelity deposiheavy Bartlett tors run began their own they The report, stitution Bartreturned lett blame tion with that failure.

6. April 1, 1927 The Daily Republican Poplar Bluff, MO
Article from The Daily Republican, April 1, 1927

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Article Text

Bankers Held In Connection With Bank Crash By Associated Press. St. Joseph, April 1.-J. T. Stewart, president of the Fidelity Trust Company, which closed December 28, and J. Harold Stewart, his son, cashier of the bank, were arraigned in the Buchanan county criminal court today, on indictments returned by the grand jury yesterday. The Stewarts were the first two accused to appear from the list of nine bankers indicted. The father faces nine indictments and the son five in connection with the failure of the Fidelity. The elder Stewart is charged with lending more than $40,000 to himself, with obtaining signatures to notes fraudulently, with embezzling, and with accepting deposits when he knew the bank was failing. The son is charged with accepting deposits when he knew the bank was failing. Dr. Holme is a member of the Missouri State Board of Osteopathy, and formerly was a member of the St. Joseph Literary Board. Beaghler was secretary and cashier of the First Trust Company at Savannah, which failed last year. He is under indictment in Andrew county in connection with that failure. Records to Grand Jury. The grand jury investigation has been under way since February 14, when it was called by Judge W. H. Utz. S. L. Cantley, state finance commissioner, was one of the witnesses, and Robert Orr, liquidator for the Fidelity, and E. W. Brennan, liquidator for the Security, also testified and presented books and records of the banks to the grand jury. The Security Bank was capitalized for $10,000 and deposits were $350,000. When it closed last May officers stated that depression in the agricultural area was responsible, but the belief was expressed that depositors would lose little. So far only 10 cents on the dollar have been paid to depositors, but the liquidator expects to pay another 10 cents next The Fidelity Trust was capitalized for $100,000 and deposits totaled $700,000. About a year ago it absorbed the American Exchange Bank of St. Joseph. Attributed to Fear. The failure of the Fidelity was attributed by its officers to the psychology of fear. The institution was located a few steps from the Bartlett Trust Company, which closey earlier in the day, after a heavy run. When Fidelity depositors saw the run on the Bartlett they began a run on their own institution. The grand jury report, returned yesterday, absolves Bartlett officers of any blame

7. September 4, 1931 St. Joseph News-Press St. Joseph, MO
Article from St. Joseph News-Press, September 4, 1931

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CITY RECOVERS $6,783 Dividend in Security Bank Liquidation Anticipated. Restitution Now Amounts to $77,673.97-City Had $82,223.13 on Deposit. St. Joseph as a city will profit more than any other depositor by the 8% per cent final dividend to be declared by the receiver of, the Security Bank, in which the city had $32,223.1 on deposit, $50,000 in time deposits and $32,223.13 in daily balance account, when the bank closed May 12. 1926. The city will receive a dividend of $6,783.40. A dividend of 10 per cent, amounting to $8,222.31, was paid to the city Dec. 18, 1926. The total through dividends is therefore $15,005.73. However, this does not represent all that the city has recovered of its deposits. From persons who signed the bank's bond to guarantee the city deposits total of has been collected. Also From Bondsmen. Including the amount already recovered from the bank, that which has been paid by the bondsmen, and the proposed dividend, the city will have recovered $77,673.97 in all. This will leave balance from the bondsmen of $4,559.17, not including interest. The city has a judgment against the persons who were on the bank bond and It hopes to recover the remainder of the money While the have actually paid into the city treasury $62,668.25, the city books show that they are credited with only $51,000.43. This is explained by transfer of $11,667.82, which was made from this department of the general fund to the contingent and incidental department the last day of the Stigall administrati Item Is for Interest. This $11,000 Item is for interest which had accumulated at the time the transfer was made on the judgment which the city obtained against the bondsmen. Interest is still accumulating on this judgment at the rate of per cent annually, While the amount actually paid into the city treasury by the bank receiver and the comes within about $4,500 of the amount the city had on deposit when the bank closed, if this interest item is added the amount is $16,215.99, and this is the amount shown on the books of the treasurer as still uncollected. This doesn't take into account any interest which might have accumulated since the transfer was made. The city also had funds in the