Columbia Bank & Trust Company (Oklahoma City, OK)

Episode Information

Episode UID
9806986191317
Episode Type
Suspension → Reopening
Bank Type
trust
Bank ID
980698619 hash
Start Date
September 29, 1909
Location
Oklahoma City, Oklahoma (35.468, -97.516)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
76dd1f6eae0b16f7

Response Measures

None

Description

Suspension taken by state banking board with state guaranty fund paying depositors; directors sought to reopen and transfer to private control.

Events (3)
1. September 29, 1909 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank carried large loans and overdrafts, heavy oil-paper loans and inadequate cash; examiner found loans excessive and cash insufficient.
Newspaper Excerpt
State Bank Commissioner Young yesterday paid about 400 depositors of the Columbia Bank and Trust Company, which suspended Tuesday.
Source
newspapers
2. September 30, 1909 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors withdrew following suspension and reports of the bank's insolvency and heavy loans; state guaranty fund used to pay depositors.
Measures
State Bank Commissioner Young paid depositors from state guaranty fund and cash on hand; assessment levied on state banks.
Newspaper Excerpt
At noon today a steady stream of depositors was making its way to the paying tellers' windows of the suspended Columbia Bank and Trust Company, withdrawing savings and closing accounts.
Source
newspapers
3. October 6, 1909 Reopening
Newspaper Excerpt
the transfer of the Columbia Bank and Trust Company from the state banking board to President W. L. Norton and his associates will be delayed a short time longer, probably until Thursday. ... President Norton and his associates have furnished $600,000 in cash, and securities with which to resume business.
Source
newspapers

Newspaper Articles (22)
1. September 30, 1909 Evening Star Washington, DC
Article from Evening Star, September 30, 1909

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STATE PAYS BANK DEPOSITS OFFICIALS IN CHARGE OF OKLAHOMA INSTITUTION. Other Banks Called Upon for New Assessment Will Not Resist Collection at Present. OKLAHOMA CITY, Okla., September 30.-With a supply of money received from the state guaranty fund, supplemented by the cash on hand in the banks, State Bank Commissioner Young yesterday paid about 400 depositors of the Columbia Bank and Trust Company, which suspended Tuesday. Commissioner Young refused to make a statement as to the bank's condition, pending a thorough investigation. Securities to the amount of $250,000 have been offered the bank officials by local capitalists, but these have been refused on the advice of the bank commissioner, who expresses confidence that there will be no difficulty in paying the depositors dollar for dollar. Reserve of Many Banks. Interest throughout the state is intense. The Columbia Company was the reserve for perhaps 150 other state banks, and had on deposit $1,300,000 of their money. Roy Oakes, secretary of the banking board, in an official statement, said: "The bank has loaned far too great a proportion of its funds, and its supply of cash unreplenished is inadequate to meet the requirements of law." Fifty thousand dollars of the state bank guarantee fund was in the bank April 30, 1909. On that date the state's bank guarantee fund amounted to $302,500. The banking board has levied an additional assessment on the state banks to replenish the guarantee fund. The last statement of the bank showed it to have deposits of $2,800,000, a capital stock of $200,000 and 40 per cent in reserve and surplus and undivided profits amounting to $20,000. Banks Will Not Resist. GUTHRIE, Okla., September 30.-The Oklahoma bankers will not resist for the present the collection of the proposed assessment of three-fourths of 1 per cent imposed on Oklahoma banks to recoup the state bank guarantee fund, make necessary by the failure of the Columbia Bank and Trust Company of Oklahoma City. The matter will be held in abeyance, it was stated last night, pending the double liability assessment of $200,000 against the stockholders of the Columbia concern. L. A. Wilson of El Reno, president of the Oklahoma Bankers' Association, last night withdrew the official call for a meeting of the executive committee to be held at El Reno next Saturday to consider the matter. KANSAS CITY. Mo., Sept. 30.-Kansas City banks have shipped about a half million dollars in currency to Oklahoma City, and shipments were made from Wichita and St. Louis to prepare the banks of that city for any emergency that may arise as a result of the failure of the Columbia Bank and Trust Company.

2. September 30, 1909 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, September 30, 1909

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BANKS WILL NOT RESIST Oklahoma's Guaranty Law Is Given Severe Test. Oklahoma City, Okla., Sept. 30.With a supply of money received from the state guaranty fund, supplemented by the cash on hand in the bank, State Bank Commissioner Young paid about 400 depositors of the Columbia Bank and Trust company, which suspended. No excitement prevailed, the people apparently trusting the state's guaranty. The report started that a number of state banks would resist an assess. ment by the state to protect the Columbia company depositors was dispelled when the officials announced they had been assured of the support of the state bankers. Interest throughout the state was intense. The Columbia company was the reserve for perhaps 150 other state banks, and had on deposit $1,300,000 of their deposits. The failure in the application of the guaranty law would mean ruin to many of these and a financial panic in the state.

3. September 30, 1909 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, September 30, 1909

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First Test of Oklahoma Bank Guaranty Act Receiver Begins Paying Depositors of Columbia Company-Banks May Resist Extra Assessment. KLAHOMA CITY, Okl., Sept. 29.a supply of money received from tate guaranty fund, supplemented cash on hand in the bank, State Commissioner Young today paid 00 depositors of the Columbia d Trust company which susvesterday. No excitement preVi e people apparently trusting th S guaranty. Commissioner Young refused to make a statement as to the bank's condition tonight pending a thorough investigation of its assets. Securitie to the amount of $250,000 have been offered the bank officials by local capitalists, but these have been refused on the advice of the bank commissioner, who expresses confidence that there will be no difficulty in paying the depositors dollar for dollar. Interest throughout the state today was intense. The Columbia company was the reserve for perhaps 150 other state banks and nad on deposit $1,300,000 of their deposits. The failure in the application of the guaranty law would mean ruin to many O fthese and a financial panic in the state. GUTHRIE, Okk, Sept. 29.-Oklahoma bankers will not resist, for the present, the colection of the proposed assessment of three-fourths of 1 percent imposed on Oklahoma banks to recoup the state bank guaranty fund made necessary by the failure of the Columbia Bank and Trust company of Oklahoma City. The matter will be held in abeyance, it was stated tonight, pending the double liability assessment of $200,000 against the stockholders of the Columbia concern. L. A. Wilson of El Reno, president of the Oklahoma Bankers' association, withdrew the official call issued earlier in the day for a meeting of the executive committee to be held at El Reno next Saturday, to consider the matter.

4. September 30, 1909 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, September 30, 1909

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RUN ON BANK Depositors Hasten to Withdraw Savings from Oklahoma City Institution. (Special from United Press.) Oklahoma City, Okla., Sept. 30.-At Doon today a steady stream of depositors was making its way to the paying tellers' windows of the suspended Columbia Bank and Trust Company, withdrawing savings and closing accounts. It is said that Bank Examiner Young, in charge since Tuesday, is paying depositors from funds furnished by the State Banking Board and from the cash on hand when he took over the bank. The amount withdrawn from the State Bank guarantee funds at noon, according to Governor Haskell, ex-officio member of the State Banking Board, amounted to about $150,000. The other State banks here are in a scramble to pick up the $3,000,000 business of the failed concern, and a number of bankers have been endeavoring to interview the Governor today. Partitioning off the Columbia's business is determined by drawing checks against the guarantee fund of various State banks and covering them by sight drafts on State banks throughCat the State having guarantee fund ton deposit. None of the $1,000,000 deposits in checks or drafts has yet been made good. Criminal and civil proceedings have been threatened against the bank and its officials but have not yet materialized.

5. September 30, 1909 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, September 30, 1909

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given tne city police instructions to enforce the ordinance against speeding. / Storm sewer connections are being made on West Oklahoma avenue preparato'y to the paving of that street from the Santa Fe depot to Fifth street. The street and alley committee of the city council is daily expecting the arrival of a carload of the 'white wing" street cleaning apperatus from New York. The city will at once place men on all the paved streets III both the business and residence districts to keep the streets clean Mrs. Anna B. Dodson is erecting a modern $2,500 residence on South Cap itol boulevard. facing Capi ol square. The Farmers' Union cotton oil mill 's now running night 2nd day. The W. H. Coyle and the Houghton and Douglas mills are also in full operation. The local fight for cotton seed still continues. Seed sold today as high as $30 a ton. Mayor Farquharson on October 16th will issue his proclama ion submitting C the Guthrie property owners the $100,000 bond issue proposition. The effect of the bank failure in Oklahoma City was not felt in Guthrie. All Guthrie state banks will be more than glad to pay an assessmen to pay the unfortunate depositors of the Columbia Bank and Trust company. The story that Guthrie state banks will oppose the collection of an) her levy for the guaranty fund is untrue. Building activity in the capital city still continues. Fhre Chief Gruber is kept busy writing permits for modern dwellings and ecttages. I Victor Houston is erecting a modern $2,500 residence on East Cleveland avenue facing Capitol square. S J. A. McElheney, of the firm of Dawson and McElheney, commenced the erection of a $6,500 residence at 720 East Noble avenue today. The Southwestern Iron foundry is now doing work for every railroad operating within the state. The foundry is crowded with orders and the branch office at Ft. Worth, Texas is doing a thriving business. Guthrie's Pioneer Cotton mills, the only textile mills in the Southwest, is manufacturing twenty-five bales of Logan county cotton into rope and wine daily. The alley in block 50, East Guthrie,

6. October 1, 1909 The Vinita Daily Chieftain Vinita, OK
Article from The Vinita Daily Chieftain, October 1, 1909

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) SEES VINDICATION FOR KANSAS LAW Bank Commissioner Pleased With Result of Oklahoma Law in Bank Failure. Topeka, Kans., Oct. 1.-J. N. Dolley, state bank commissioner sees a vindication for the Kansas bank deposit guaranty law in the Columbia Bank & Trust company affairs in Oklahoma City. When a Kansas guaranteed bank fails, Mr. Dooley says, there will be no more disturbances and no more of a run than was experienced in Oklahoma City. In discussing the failure and the guaranty law, Mr. Dolley said: "No fianacial disturbance was caused in Okiahoma on account of this failure. The banking conditions there are very satisfactory and have been entirely normal from the moment the announcement of the failure of the bank was given to the public. There was no rush of depositors clamoring for their money. In fact, I am informed that the depositors are indifferent as to whether they receive the amounts due them daily or one week from today, as they have explicit confidence in the Oklahoma guaranty law. Under the old way of doing things when the bank failed the federal government, the state government the county, the city the township, the school district, boards of education. fraternal and beneficiary associations would all/walk out of the bank smiling as guaranteed depositors receiving 100 cents on the dollar for their deposits. The farmer, the laboring man, the wasawoman, and the widow were left to pay the loss. But under the guaranty principle and law every depositor is treated fair, one with another and each and every one of them receive 100 cents on the dollar for their deposits which is just, honest and equitable. C "The Oklahoma bank failure shows a also that the big strong institution, owned and managed by the influential men of Oklahoma, is the first bank to fall. This failure scatters the more arguments that are presented to the B people by those opposed to the guaranty principles and I say again that si not an opponent of guaranty princith ple has presented to the American i people one sound, sane or reasonable of argument why all of the people should P not have their bank deposits guarre anteed in lieu of only a part of them." a

7. October 1, 1909 Evening Journal Wilmington, DE
Article from Evening Journal, October 1, 1909

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COMMEND BANK GUARANTEE LAW Say That the Oklahoma Plan Has Proven Its Worth By United Press Leased Special Wire. OKLAHOMA CITY, Okla., Oct. 1Chat the Oklahoma bank guarantee law has been severely tested and has proved its worth is the opinion expressed by many bankers to-day following a statement that the directors of the suspended Columbia Bank and Trust Company have submitted a proposition to the State banking board looking to a re-opening of the concern. The private depositors who had funds in the bank have withdra wn them and the only large deposits now held according to a statement generally credited to-day, are reserve funds of smaller Oklahoma State banks. The drain on the guarantee funds of the State banking board has been heavy, but it is declared there is still sufficient sums on hand to meet any demand on any of the smaller banks forced to call for the reserve held by the Columbia. Among National bankers throughout the State there has been considerable criticism of the law and since the suspension of the Columbia there has been a revival of the prediction made when the guarantee law was suggested that it would lead to loose banking methods. The officials of that institution stoutly maintain there has been no overdraw by the officers. State bankers in spite of a possible emergency assessment are taking a more optimistic view. They declare the test given the new law has been the severest that could be imagined. The bank involved is one of the biggest in the State and one whose failure would mean the crash of other banks. They say that the fact that all the other banks have been able to weather S the storm also through the trouble is proof that the law is effective. Had the trouble they say come a little later after the fund had been given a chance to grow from a regular assessment, there would have been no strain on the banks at all. The State bankers point also to the fact that the thing which bankers fear most in a case of such trouble-runshave practically been absent.

8. October 1, 1909 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, October 1, 1909

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BANK GUARANTEE LAW PROVES WORTH (Special from United Press.) Oklahoma City, Okla., Oct. 1.-That the Oklahoma Bank Guarantee law has been severell tested and has proven its worth is the opinion expressed by many bankers to-day following a statement that the directors of the suspended Columbia Bank & Trust Company have submitted a proposition to the state banking board looking to a re-opening of the concern. The private depositors who had funds in the bank have withdrawn them and the only large deposits now held according to a statement generally credited to-day are reserve funds of smaller Oklahoma state banks. The drain on the guarantee funds of the state banking board has been heavy, but it is declared there is still sufficient sums on hand to meet any demand on any of the small banks forced to call for the reserve fund of the Columbia concern. Among bankers throughout the state there has been considerable criticism of the law and since the suspension of the Columbia there has been much speculation regarding the guarantee fund. State bankers in spite of a possible emergency assessment are taking a more optimistic view. They declare the test given the new law has been the severest that could be imagined. The bank involved is one of the biggest in the state and one whose failure would mean the crash of other banks. They hold that the fact that all the other banks have been able to weather the storm with so little trouble is proof that the law is effective. Had the trouble, they say, come a little later or after the fund had been given a chance to grow from regular assessment there would have been no strain on the banks at all. The state bankers point also to the fact that the thing which bankers fear most in a case of such trouble-runshave practically been absent.

9. October 2, 1909 Pine Bluff Daily Graphic Pine Bluff, AR
Article from Pine Bluff Daily Graphic, October 2, 1909

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GUARANTEE LAW IS VALUABLE Oklahoma City, Okla., Oct. 1.-The Oklahoma bank guarantee law proved its worth in the suspension of the Columbia Bank and Trust Company, when a director submitted a proposition today to the state banking board to reopen the institution. Sufficient funds in the state banking board will be used to meet the demands of all small banks and leave enough for a reserve fund.

10. October 4, 1909 Las Vegas Optic Las Vegas, NM
Article from Las Vegas Optic, October 4, 1909

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MILLIONAIRE MAY RE-OPEN FAILED OKLAHOMA CITY BANK Oklahoma City, Oct. 4.-While the is violating the injunction of this suspended Columbia Bank & Trust court by using state funds to pay off company is still in the hands of the the depositors of the Columbia Bank Oklahoma state banking board, it is & Trust company at Oklahoma City. understood that it will shortly be Evidence for Young's citation for conturned over to President Norton and tempt of court will be introduced late his associates, among whom are said this afternoon. to be John T. Stickler, a millionaire edT BRYAN WILL TOUR mine owner of Mexico City, and F. A. McPherson, of the Standard Oil comPACIFIC NORTHWEST pany. The depositors continue to be paid off with state guaranty funds. Lincoln, Neb., Oct. 4.-Wm. J. Bryan starts Wednesday for a trip Charge Contempt of Courts: through the northwest. He will speak Guthrie, Okla., Oct. 4.-It was stated before Judge Cotteral here today in Montana and Wyoming and visit that State Bank Commissioner Young, the Seattle exposition on October 12.

11. October 6, 1909 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, October 6, 1909

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BANK NOT YET OPENED Oklahoma City, Oct. 6.-Owing to the serious illness of Bank Commissioner A. M. Young, the transfer of the Columbia Bank and Trust Company from the state banking board to President W. L. Norton and his associates will be delayed a short time longer, probably until Thursday. There is no hitch in the transfer, the delay being due to the vast amount of checking and clerical work, and to verification of securities and commercial paper which must suit the bank commissioner before Governor Haskell will sanction the return of the big financial institution to private ownership. As stated yesterday, President Norton and his associates have furnished $600,000 in cash, and securities with which to resume business, but the simple laying of this amount in the hands of the bank commissioner does not suffice. Every note, every bond and piece of chattel must be separately assigned its valuation, and the state officers are giving this acceptance the minutest attention. Governor Haskell last night gave out a statement, in which he pays his respects to the national bankers and urges the advisability of the state bankers at once paying the threefourths of one per cent assessment levied a couple of days ago.

12. October 7, 1909 New-York Tribune New York, NY
Article from New-York Tribune, October 7, 1909

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BANKS WILL RESIST ASSESSMENT. Result of Oklahoma Failure-Suits Against Columbia Bank Withdrawn. Enid. Okla., Oct. 6.-Interviews with local bank officials to-day indicate that Enid's five state banks will resist an assessment of 3/4 of 1 per cent on average deposits to replenish the guarantee fund now being used to re-establish the Columbia Bank and Trust Company, of Oklahoma City. Notice of the assessment was received to-day. On motion of attorneys representing the National Life Insurance Company, of Chicago, and S. W. Smith. of Missouri, the injunction suits against A. M. Young, State Bank Commissioner, and the State Banking Board brought to prevent the preferential payment of depositors of the Columbia Bank and demanding the appointment of a receiver, were dismissed by Federal Judge Cotteral at Lawton to-day. By request also of the plaintiff the information asking that the State Banking Board be cited to appear for contempt of the temporary restraining order issued last Saturday was withdrawn.

13. October 7, 1909 The Butler Weekly Times Butler, MO
Article from The Butler Weekly Times, October 7, 1909

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AMERICAN CLOTHING HOUSE ing cared for may, however, cause OK. BANK GUARANTY trouble with the others. The guarFUND IS EXHAUSTED. anty law has apparently had the effect of causing greater confidence among the public generally than is usually the case at a time of financial stress. Columbia Run Leaves Only Few There has been no excitement and Dollars to Meet Another nothing in the nature of a panic as Failure. regards bank deposits in Oklahoma City or elsewhere. Governor Haskell and other friends LAW PREVENTS PANIC. of the guaranty law claim that attacks by national banks were largely reGuthrie, Ok., October.-Practically sponsible for the closing of the Columall of the State bank guaranty fund bia Bank, but admit that the direct was exhausted in paying off the decause was the fact that the bank was positors of the Columbia Bank and carrying a large amount of paper, Trust Company at Oklahoma City, which the Bank Commissioner deemand only a few dollars would be imed insecure. mediately available if another bank Some of the old-established nationshould fail. Even the assessment of threeal banks in Oklahoma City were undoubtedly jealous of the rapid growth fourths of 1 per cent, authorized by the Banking Board, has not been leviof the younger institution and were probably not sorry to see its progress ed yet, and possibly will not be if it suddenly checked, though they may can be avoided, as the temper of some of the State bankers is rather uncernot have contributed actively to its downfall. tain, and it is considered highly desirable to avoie all frictions as far as Since its close they are claiming possible in an important crisis like that the bank-guaranty law encourthis. aged loose banking methods. While If another failure should occur an there may have been some losses of emergency assessment would, of deposits to guaranteed banks as a result of the failure, they have not so course, be necessary. Present indications are that the far been large or numerous.

14. October 7, 1909 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, October 7, 1909

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Unless Oklahoma City Bank Pays Out Panic Will Follow. NATIONAL BANKS RESPONSIBLE With Guaranty Fund Assessments And Cash on Hand All Deposits May Be Paid In Full. Oklahoma City, Ok., Sept. 30.-With a supply of money received yesterday from the state guaranty fund, supplemented by the cash on hand in the bank, State Bank Commissioner Young began paying depositors of the Columbia Bank and Trust company who made demands upon him. During the day probably 400 depositors received their money. Officers were on guard early and no excitement prevailed. Commissioner Young refuses to make a statement as to the bank's condition pending a thorough investigation of its assets. Securities to the amount of $250,000 have been offered the bank officials by local capitalists but these have been refused. The bank commissioner is confident that there will be no difficulty in paying the depositors dollar for dollar. The rumor started that certain state banks, to a considerable number, would resist an assessment by the state to protect the depositors of the Columbia company, was dispelled by Gov. Haskell, who during the day has been assured of the support of the state bankers. That a concerted effort by national bankers, both within the state and without, to defeat the bank guaranty law has come to a head through the failure of this institution is the belief of Gov. Haskell. Interest throughout the state has been intense. The Columbia company was the reserve for perhaps 150 other state banks and had on deposit $1,300,000 of their deposits. The failure in the application of the guaranty law would mean ruin to many of these and a financial panic in the state. According to figures compiled by C. A. Taylor, state examiner and inspector, the state has on deposit with the Columbia Bank and Trust Company $490,359, which is protected by approved securities valued at $500,000, consisting of state, county and district warrants and bonds, security company bonds and other collateral. The state school land commission has on deposit $190,000 which is protected by approved securities valued at $198,000. The state had on deposit there September 1, $171,953 of general revenue funds which is protected by securities valued at $180,000. On June 1 the bank held $50,512 of the bank guaranty fund which was protected by securities valued at $50,000. Guthrie, Ok., Sept. 30.-While State Bank Commissioner Young declines to make a detailed statement as to the t exact status of the Columbia Bank & Trust company's funds, until a more thorough investigation has been made, it is pointed out on official authority that the crash was chiefly due to heavy loans and overdrafts. It develops that among other items $250,000 of the bank's funds is loaned on oil securities in eastern Oklahoma, and $120,000 to one man, I. M. Putman, with Oklahoma City suburban real estate as collateral; while overdrafts of bank officials total $100,000. Investigation discloses that when the bank was examined about 70 days ago by two employes of the state bank examiners office the institution was pronounced to be in a safe and prosperous condition. From reliable sources it is learned the bank's resources on Tuesday evening at the time of suspension ranged around $2,500,000, a shrinkage of about half a million in less than a month. The amount of cash on hand this morning when liquidation began was fixed at $213,000. It is estimated that In addition to the semi-annual assessment of onefifth of 1 per cent payable October 1, into the state guaranty fund and the S extra levy of three-fourths of 1 per cent made by the state banking board

15. October 8, 1909 Watertown Leader Watertown, WI
Article from Watertown Leader, October 8, 1909

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ENID'S BANKS RESIST. Oklahoma State Institutions Object to Assessment to Re-establish Columbia Company. ENID, Ok., Oct. 6.-Interviews with local bank officials today indicate that Enid's five state banks will resist efforts to collect an assessment of three-fourths of 1 per cent. on average deposits. The assessments is to replenish the guaranty fund now being used to reestablish the Columbia Bank and Trust company of Oklahoma City. LAWTON, Okla., Oct. 6.-On motion of attorneys representing the National Life Insurance company of Chicago and S. W. Smith of Missouri, the injunction suits against State Bank Commissioner A. M. Young and the state banking board, brought to prevent the preferential payment of depositors in the matter of the Columbia Bank and Trust Company of Oklahoma City, and demanding the appointment of a receiver for the institution, were today dismissed by Federal Judge J. H. Cotteral. By request also of the plaintiff the information asking that the state banking board be cited to appear for contempt of the temporary restraining order issued last Saturday was withdrawn. An effort had been made to show that Commissioner Young in continuing to pay depositors was ignoring the court's order.

16. October 9, 1909 The Hays Free Press Hays, KS
Article from The Hays Free Press, October 9, 1909

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PLANS FOR SUSPENDED BANK. Oklahoma Institution to be Turned Back to Officers. Oklahoma City, Ok.-Although the suspended Columbia Bank and Trust company of this city was still in the hands of the state banking board, plans, it was said, have been consummated by which the bank will be turned over to the president, W. I. Norton, and his associates. It is understood that President Norton has the financial support of John T. Stickler, a millionaire mine owner of the City of Mexico, and John P. Murray and F. A. McPherson of the Standard Oil company of New York. Bank Commissioner Young continued to pay off depositors with the state guaarnty funds. It is said that the application for a receiver for the bank will be withdrawn and that the restraining order against Commissioner Young, enjoining him from paying off the depositors, which was granted by Judge Cotteral in the federal court on Saturday last, will be dismissed.

17. October 14, 1909 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 14, 1909

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KANSAS COMMENT ORGANIZATION NEEDED. The automobile enthusiasts of Kansas, as in other states, are forming clubs and associations, the chief end and aim of which is to win zinc loving cups which are frequently offered as prizes to the winners of pathfinding tours and endurance runs, but it never seems to occur to anybody that an organization for the purpose of detecting and punishing speed maniacs and others who bring motoring into disrepute, would be a good thing. When horse stealing became such a properous industry in the west that the sheriffs and other officers of the law couldn't cope with it, the farmers formed an organization for the special purpose of dealing with the thieves, and the latter became so discouraged that they practically went out of business. The Anti-Horsethief association is said to have lost some of its efficiency in recent years because the members devoted too much attention to its picnic features, but whenever the association does show signs of activity, the thieves take to the woods. The auto owners should have some organization for their own protection. Every accident that occurs increases the prejudice against the gasoline wagon, and emphasizes the demand for legislation that will make motoring seem like riding on a hearse. The other day a young man was run down in Emporia, and it was merely a bit of good luck that he wasn't killed. The man who was running the machine had important engagements somewhere else, and didn't wait to see what happened to the victim. He kept in the middle of the road, and is possibly making fast time yet. All efforts to discover his identity failed, and unless he dies of a guilty conscience, he will never be punished. If the autoists had the sort of an organization suggested, that man would be apprehended somewhere, and brought to punishment, regardless of expense. When they demonstrate that they have as little use as anybody for the reckless chauffeur, they will have accomplished something that will lessen the growing prejudice against the whole automobile business. And such work is surely as important as winning tin cups for running a machine a thousand miles through a swamp.—Emporia Gazette. TAKE OFF THE HIGH SPEED. Governor Haskell must have been speaking politically when he said, if he is correctly quoted, that the national banks of Oklahoma broke the Columbia bank and Trust Co. An examination of the records has shown that reckless banking broke the institution. It is not surprising that in Oklahoma City a catastrophe like this has happened. Oklahoma City has made marvelous speed in commercial growth, and high speed commerce in a new country always has a wreck somewhere along the way. Oklahoma City has had the high speed clutch on all along the line, and the one wreck may serve as a sufficient warning to other fast drivers in the business world down there. Oklahoma City is bound to be a great city, but the follies of impulsive youth are inevitable; no city can escape them.—Wichita Beacon.

18. November 2, 1909 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, November 2, 1909

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BANK GUARANTEE FUND IS TESTED Oklahoma City, November 1.-More than $500,000 contributed by the state banks under the deposit guaranty law has been used in paying depositors of the insolvent Columbia Bank and Trust company, which failed more than a month ago, and there remains more than $400,000 in deposits to be paid, with only $1123 in cash on hand to pay them, though sufficient assets, apparently, are available to provide for the remaining deposits. This condition is shown in a preliminary statement issued today by A. M. Young, state bank commissioner. When the bank 'failed it had $1,165,747 of individual deposits and $1,293,385 of deposits of other banks. Liabilities remaining amount to $1,125,000, and for this purpose the bank commissioner has total assets of $1,763,000, including $563,000 assigned after the failure by W. L. Norton, the bank's president, and others. Apparently no money has been received from the assessment of 100 per cent on the $200,000 of capital stock of the bank. Guthrie, November 1.-Suit asking the appointment of a receiver for the Co-

19. November 12, 1909 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, November 12, 1909

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# Surety Company and Land Board Test Suit Guthrie, Okla., Nov. 11.-The National Surety company which has a bond securing $50,000 of state deposits in the defunct Columbia Bank and Trust company of Oklahoma City, has decided to join with the school land board in a suit on agreed statements of facts to determine the statute of the claims of the guaranty companies. The suit will be filed in the superior court here in a few days. The surety companies contend that when they pay bonds securing state funds, the state deposits thus indemnified should be assigned to them and that these should be considered secured by the state guaranty fund the same as other classes of deposits and surety. shrdlu shrdlu shrdl shrdlur the surety companies claim they should have first rank along with other deposits against the assets of the bank.

20. December 10, 1909 The Weekly Chieftain Vinita, OK
Article from The Weekly Chieftain, December 10, 1909

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HASKELL SUDDENLY STOPS BANK PROBE Grand Jury Must Wait for Records of State Banking Board Declares Governor. Oklahoma City, Okla., Dec. 8.-By summarily cancelling the authority of Attorney General West to represent the state before the Oklahoma county grand jury, Governor Haskell yesterday brought to a sudden termination the investigation the attorney general was making into the cause of the fail. ure of the Columbia Bank & Trust company of Oklahoma City. The attorney general was not permitted to sign the three indictments and two accusations reached by the jury before that body was discharged. \ The reason assigned by Governor Haskell for this action was that it is not to the best interest's of the state that an investigation of the Columbia's affairs be made at this time. He declared that when the state banking board has concluded its accounting the bank's affairs all records of the institution will be turned over to the grand jury, if the district court should demand it. W. L. Nor 94. president of the Columbia, and 1.2 wife were to have appeared before the grand jury today and were waiting in the jury lobby when the order came from the governor.

21. December 22, 1909 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, December 22, 1909

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DEPOSITS MUST BE PRO RATED Oklahoma City, Dec. 22.-In the matter of the petition of United States Fidelity & Guaranty company and the Southern Surety company, intervenors, asking that Bank Commissioner Young be compelled to recognize the land office deposits as of the same value and standing as the deposits of individuals or private corporations, Judge George W. Clark, of the district court says: "The office of the commissioner was created, as I believe, for the purpose of closing a failed bank and the guaranty fund was created by law that depositors having money in state banks, with the privilege of withdrawing, should be protected in the amounts deposited. I cannot see why a distinction should be made between the state deposits and those of any other class of deposits. The state requires that institutions give not only securities, but a bond for the amount of funds deposited in a state bank by the state. This is done, in the intent of the law, I think, in order that the state may have the money at any time it may call upon the bank for the amount. Every amount placed in a bank by an individual or state is in my opinion entitled to equal consideration in the liquidation of the institution in the event that the institution fails. The distribution of the funds on hands should act pro rata in all instances and none should be given precedence over the other. All depositors, whether state or individual, should share in the refunding and the distribution by the bank commissioner. "I therefore order that Commissioner Young be restrained from repaying to the state gnaranty fund from which he drew large sums of money to repay certain depositors until he has repaid to the land commissioner's office its pro rata deposits in the Columbia Bank & Trust company."

22. January 20, 1910 Iowa County Democrat Mineral Point, WI
Article from Iowa County Democrat, January 20, 1910

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# SPECIAL LEGISLATIVE COMMITTEE ON BANKING DISCUSSES GUARANTY PLAN. HAS A TENDENCY TO INVITE INFERIOR MEN INTO BUSINESS. WOULD SEGREGATE SAVINGS FROM COMMERCIAL DEPOSITS. Madison, Jan, 17. The report of the special legislative committee on banking, making its report to the legislature, proclaims at the very opening that no absolute preventive or bank failures can be provided by legislative enactments. "If the depositor, therefore, is to be made absolutely safe and secure," says the committee, "it is essential that some method be found by which his money may be restored to him in the event of the failure of a bank in which his money may happen to be deposited. Living, as we do in this day, in the light of the twentieth century civilízation, no scheme has yet been developed and proved which affords to the depositor absolute security. The most recent suggestion looking to this end is the plan commonly designated the "guaranteeing of bank deposits" after the manner exemplified by legislation enacted in a number of states. This was one of the subjects which was most diligently and exhaustively considered by this committee." The committee discusses at length the question of guarantee of bank deposits, taking for its text the Oklahoma law which has been the source of much discussion. Speaking upon that question the committee concludes: "We are of the opinion that the guaranty law has a tendency to invite men into the banking business of inferior banking ability, and the extent to which men of such inferior ability will be able to secure the control of banks and secure the management and control of the funds belonging thereto, depends to a considerable extent, on laws tending to discourage men of inferior qualifications from entering the business and on the strength and character of the commissioner of banking or other officer who administers the banking law." The committee made a careful investigation of the causes of the failure of the Columbia Bank & Trust company of Oklahoma City, which suspended and was taken over by the banking board on the day of the arrival there of the committee upon the occasion of its visit to that state. "The closing of the bank caused no riffle in the business world of Oklahoma City," says the report, "the public was not excited, there was no run on any other bank, state or national. Depositors apparently had confidence that they would get their money. They acted in an orderly and well behaved fashion. They drew their money out of the defunct bank and placed it in other banks. As a matter of fact, at the close of business on the day after the failure, the books of every other bank in the city showed an increase in deposits. While the lobby of the bank was quite well filled with depositors, there was no excitement or disorder, and so far as the street was concerned, there was nothing to raise the suspicion on the part of any one that he was passing by a bank whose doors had just been closed. No business interests in the city were disturbed, compromised or embarrassed in any manner. "The committee came in contact with a great many of the people who had money on deposit in the bank, some of whom appeared before the committee, and all gave expression to the sentiment that they were in no particular hurray for their money, that they knew it was safe and that they would call for it after the rush was over." A tabulated statement of the growth of Oklahoma banks, state and national, is given, covering a period of four months, and an analysis of the statement indicates that the total deposits of the state of Oklahoma, during the time, increased 43.3 per cent. in both state and national banks; that the increase in state banks, during that time, was 137 per cent., while the loss in national banks was one-half of one per cent.; that during the period the capital of both state and national banks increased approximately 10 per cent., and the increased capital stock in state banks was 75 per cent., while the decrease in stock of national banks was 20 per cent. February 29, 1908, the capital stock in the state banks, was 32 per cent. of their deposits, and on February 14, 1908, the capital stock of National banks was also 32 per cent. of their deposits. On June 28, 1909, the capital stock of the state banks was 24 per cent. of their deposits, while the capital stock of national banks, was 25½ per cent. of their deposits. The Oklahoma guaranty law went into effect February 14, 1908, since which time 165 state banks have been chartered, 73 of which were conversions of national banks, with $7,300,000.00 capital, Clearing House Association. "The suggestion was made to this committee by a number of bankers, that country clearing house associations could be established for that purpose with equally as good results, and it may be said that a number of prominent bankers have written papers on this subject in which the position is taken that the country clearing house association may be successfully formed and conducted and that it will serve a very useful purpose, but not so much for the purpose of afford-