First National Bank (Picher, OK)

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PICHER BANK QUITS BUSINESS SUDDENLY Powerful Business Faction in Mining Town Said to Be Responsible. TWO RUNS MADE RECENTLY Short Time Ago an Attempt Was Made to Assassinate the Cashier. Special to The World. MIAMI, Nov. 15.-The First National Bank of Picher, a nearby mining town, closed its doors at 10 o'clock this morning to await the bank examiner. Less than a dozen persons gathered about the bank all day. Bank officials refused to say what caused the bank to close an hour after it had opened for business. Behind the closing. however, is a fight between two business factions of the town which was responsible for two heavy runs on the First National recently. One official admitted today that only a few weeks ago a run was made on the bank hich sent its deposits down from $700,000 to less than $200,000. The bank is located on Second and Congel avenue, and several attempts have been made by business men on Main street to located a bank there, and the closing of the bank today was said to be the outcome of a squabble between the two rival groups. The bank was capitalized for $100,000. It was the onyl bank in Picher. B. L. Connell is president and C. W. Rogers, vice president: W. B. Bunham is cashier. Until recently C. W. Rogers was cashier. He disposed of his share only recently to Bunham after an attempt had been made to assassinate him while he was sitting in his home in Baxter Springs, Kan.

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First National Bank of Picher Closes Its Doors Early Yesterday

Less Than Dozen Depositors Gather During Day, When News is Learned

NO REASONS GIVEN

Recent Heavy 'Run on Institution and Quarrel Between Two Factions of City Admitted as Probable Factor; Examiner on Way

"Closed" was the single word on a sheet of paper pasted on the door of the First National Bank at Picher about 10 o'clock Saturday morning. W. B. Dunham, cashier, telegraphed for the national bank examiner, it was learned. The closing of the Picher bank was not unexpected by Miami bankers and financiers, some said.

Less than a dozen people gathered at the bank at any one time during the day and depositors refrained from becoming excited. Rumors tending to destroy confidence in the bank had been current for several weeks and business men expressed but little surprise at the closing.

"A statement from me is unnecessary, the bank examiner is on his way here," Mr. Dunham said.

Dr. D. L. Connell, president, was interviewed a few minutes later at his residence, Second and Alta streets. He said:

"Not being active in the management of the bank's affairs, I am unable to state anything about the financial condition as it was this morning."

Recent Run Made

Facts gleaned from various sources indicate that a run was made on the bank several weeks ago that pulled its deposits from $700,000 to less than $200,000.

Bank officials show no disposition to give out any statement concerning the financial status of the institution until the arrival of the bank examiner.

Deposits were accepted by the bank Friday and M. B. Montgomery, town trustee, said he deposited a check for more than $500 after the bank's usual closing hour.

The bank opened its doors at 9 o'clock Saturday morning and apparently nothing unusual was noted in the actions of its patrons. Just what prompted the closing of the doors an hour later has not been explained by its officers.

U. S. Jennings, deputy sheriff, and also director in the bank, stood guard on the outside and gave some encouragement to depositors that everything would be all right as soon as money, which was expected, arrived.

The First National Bank was capitalized for $110,000 and was the only bank in Picher.

Last winter it acquired the business of the Miners State Bank, which was a consolidation of the First State Bank with the Miners State Bank.

Old Factional Dispute

Several attempts have been made since the consolidation by different parties who desired to start a bank on Main street, but each attempt was frowned upon by the board of bank examiners.

The First National Bank was located at Second and Connell avenue. The following were officers: D. L. Connell, president; C. W. Rogers, vice-president; W. B. Dunham, cashier. Each was a director. Other directors were: U. S. Jennings, Dr. I. Phillips and G. McWilliams.

The affairs of the bank were conducted principally by C. W. Rogers, who recently was cashier. He disposed of his interest to W. B. Dunham recently after having been the victim of an attempted assassination at his home in Baxter Springs.

Bond Causes Trouble

A heavy run was said to have been made on the bank during the last week in September, shortly after two of the bank's officers, Dr. Connell and C. W. Rogers went on a bond of $25,000 for Sam Hannan, defendant in a case where he was charged with first degree manslaughter.

Both officials prevailed upon county authorities to let them withdraw from the bond, but Hannan could not be returned to the state at that time, before the date of his trial, and a run continued until the bank examiner expressed surprise that the bank had successfully weathered the storm, according to one of the officials.

Previous to that run a run was started once before, shortly after the bank examiner had refused to charter a bank on Main street and that time the bank sent for two officials from the department of justice in an effort to locate the parties responsible for creating the run. No findings were reported that indicated any conspiracy against the institution.

It has been rumored that two assessments were made at times recently against stockholders in the bank. The reports indicate the assessments aggregated about fifty per cent of the capital stock, but as bank officials have remained silent on this point, depositors are awaiting the report of the bank examiner to determine what per cent can be paid to them and if there is any truth to the assessment rumor and if so, to what extent the stockholders met the assessment.

Business for the first time in Picher's commercial life was without a bank today. Several capitalists have stood ready to establish a bank here as soon as permitted by the state banking board.

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STOCKHOLDERS MAY RUN PICHER BANK Examiner Takes Charge: Depositors sull Wondering What They Will Get. Special to The World. PICHER, Nov. 17.-With Bank Examiner Stephen L. Newn in charge at the First National bank which closed its doors Saturday morning, it was hinted that the bank may open Tuesday. No definite statement from the dio rectors was fortatoming, however, and depositors were-will in a quandary. "By resolution of the board of directors the bank has placed in the hands of the examiner pending a reorganization of its affairs." read a notice posted on the front door today. The stockholders are said to be liable for double the amount of their capital stock and have faced two assessments lately. The first for 18 per cent which was paid in and the second for 48 per cent, which would yet leave an assessment of 36 per cent possible against stockholders in the protection of the depositors. Lloyd A. Danil, attorney. who with the firm of Bennett & Wilson, of Miami, has been representing the bank in collection matters, expressed the belief that much of the paper held by the bank which was considered of small value by the bank examiner, would be collected and that the depositors would not suffer any loss.

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PICHER BANK CLOSES DOORS

Federal Agent Now in Charge and Institution May Reopen—Sarcoxians Interested.

As many Sarcoxians have interests at Picher, Okla., there was a ripple of excitement in town Saturday when it became known that the First National Bank of that town had closed its doors following a run by depositors. Tuesday's Joplin Globe had this to say of the insolvent bank:

Stephen L. Newham of Kansas City, a National Bank examiner, arrived here this morning and has taken charge of the First National Bank of Picher, which closed its doors at 10 o'clock Saturday morning following a run by bank depositors. He is being assisted in his examination by expert accountants.

Officials of the bank referred visitors to a statement hanging on the front door of the bank as the only one they could make at this time.

"By resolution of the board of directors, The First National Bank of Picher has been placed in charge of National Bank Examiner Stephen L. Newham pending a reorganization of its affairs," the statement reads.

Depositors today are seeking information as to the probable result of the bank's failure. Many persons stood before the institution watching the accountants as they examined the bank's books. It was rumored during the day the bank would be re-opened in a building formerly occupied by the First State Bank of Picher.

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BUSTED THE BANK

FIRST NATIONAL OF PICHER, CLOSED ITS DOORS.

SECOND RUN ON BANK DID IT

Sam Hannon a Stockholder.—Rogers Renewed His Bond for Hannon, and Bank Smash Followed.

(From Monday's Daily.)

The troubles of the First National Bank of Picher, of which C. W. Rogers, one of Sam Hannon's bondsmen, is vice president, culminated Saturday in the institution closing its doors Saturday.

An account of the whole affair, which began when Rogers went on Hannon's bond, after Hannon shot Charlie Stewart to death in a Picher pool hall about two months ago, is given under a Picher date line, as follows:

Picher, Okla., Nov. 15.—A run on the First National Bank of Picher, the second within a few weeks, resulted in its doors being closed at 10 o'clock this morning, "Closed", states a sign that hangs at the entrance, the only explanation that has been made by the bank officials since they shut the doors and settled with a few clamoring depositors who were later sent out through a side door.

The bank, opened a year ago, was capitalized for $110,000 and until a few weeks ago was said to have had total deposits of $375,000, but when it closed today its liability to depositors was estimated to be close to $200,000.

Cant' Locate Officials.

Efforts made throughout the day and until a late hour tonight failed to locate any of the bank officials. D. H. Connell, for years a wealthy physician here, is president, and D. H. Dunham, who came here a month ago from Kansas City, is cashier, having succeeded C. W. Rogers of Baxter Springs, now vice president, who also owns a bank at Buffalo, Mo. No one was at the Rogers home tonight. Dr. I. Phillips of Picher, said to be the holder of a large block of stock in the bank, was ill at his home here and could not be seen. Sam Hannon, accused of shooting Charles Stewart to death in a pool hall here a few weeks ago, is another stockholder.

A Run Following Bond Signing.

When Hannon was arrested and charged with killing Stewart, Connel and Rogers signed his bond for $25,000. Withdrawals of deposits from the bank in the following two or three days, it is reported, totaled close to $100,000. The bank had plenty of cash with which to meet the run, and it subsided. Some of the persons who had withdrawn their money later replaced it in the bank. Still later, when Connel and Rogers made application to be released from the Hannon bond, deposits flowed in. Rogers announced to the public that he had severed his connection with the bank and Dunham succeeded him.

Rogers Renewed Bond.

When Hannon was called into court last week at Miami, Rogers and Connell again signed his bond.

It was the custom of mining companies operating in this district to deposit large sums in the Picher bank every Friday to be used in paying miners on Saturdays. Yesterday the companies did not make such deposits and the news spread through the district that their money was being sent to banks in Baxter Springs and Joplin. The run on the bank spread with that news. The bank opened for business this morning to receive a rush of depositors eager to get their money out. The clamoring lasted until 10 o'clock when the doors were closed. The bank settled with the persons inside and sent them out a side door.

All day long groups of men were to be found around the building, all discussing the closing, some threatening to "blow the building up with dynamite" to get their money.

Is Blow to Miners.

Grover Todd, city trustee, said hundreds of miners who had been saving their money since prohibitory laws became effective, had started accounts with the bank.

Interwoven in the history of Rogers, vice president of the bank, are the cases of Charles Negim, who was acquitted three weeks ago by a jury in Columbus, Kans., of having fired through a window a bullet that injured Rogers while he was in his home at Baxter Springs and of Harry S. Fry. The jury that tried Negim reached its verdict after being cut five minutes and in Miami tonight Fry, who had been accused by Rogers of embezzlement of $5,000 was acquitted by a jury that deliberated less than three hours. Fry is manager of the Miners dry goods store here and testified he is the owner. He said he gave Rogers a note for $5,200 on the stock. Many persons had believed Rogers to be the owner of the store.

Fry's trial on a charge of shooting Rogers is set for a January term of court.