gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
83a1f124b482d398
Response Measures
Public signal of financial health, Full suspension, Books examined
Receivership Details
Depositor recovery rate
91.3%
Date receivership started
1925-11-07
Date receivership terminated
1934-07-03
OCC cause of failure
Economic conditions
Share of assets assessed as good
62.1%
Share of assets assessed as doubtful
16.1%
Share of assets assessed as worthless
21.8%
Description
Directors closed the bank to avoid preferred depositors amid a rumor-driven run; receiver appointed later.
Events (5)
1.November 23, 1922Chartered
Source
historical_nic
2.October 16, 1925Run
Cause
Rumor Or Misinformation
Cause Details
Irresponsible gossip and circulating rumors about trouble at the bank triggered heavy withdrawals beginning the prior Friday.
Measures
Directors called bank examiners, closed doors to prevent preferred withdrawals and to protect depositors; sought reorganization including possible merger.
Newspaper Excerpt
Run on the bank, begun last Friday and growing to serious proportions
Source
newspapers
3.October 20, 1925Suspension
Cause
Rumor Or Misinformation
Cause Details
Board of directors (not examiners) closed the bank because the run fueled by rumors had reached alarming proportions; closure intended to prevent preferential withdrawals and allow reorganization.
Newspaper Excerpt
Muskogee Security National bank closed its doors here at noon today.
Source
newspapers
4.November 7, 1925Receivership
Source
historical_nic
5.November 7, 1925Receivership
Newspaper Excerpt
R. Kershaw of Muskogee was Saturday appointed receiver for the Muskogee Security-National Bank, which closed its doors three weeks ago when a 'run' was begun by depositors.
Source
newspapers
Newspaper Articles (16)
1.October 21, 1925Drumright Weekly DerrickDrumright, OK
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Article Text
NATIONAL BANK AT MUSKOGEE CLOSES DOORS
Deposits are Accepted up to Last Minute, City-County Funds on Deposit. the Muskogee Security National bank was closed Tuesday noon will receive dollar for dollar on funds in the care of that institution. Milton G. Young. president of the bank, de clared Tuesday night. The president said that the doors were closed at the request of direc and not at the order of national tors bank examiners who were on the Rumors of trouble in the affairs caused a slight run late Friday he said The requests withdrawals until they for reached alarming proportions Tues day morning because determination that therew be no preferred that the bank was Young "Had come at the time it did would have had time to complete a reorgani zation that would have prevented the bank from ever closing We were attempting to reorganize. secure a new and more active president, when the run on the bank made closing necessary."
2.October 21, 1925Muskogee Daily NewsMuskogee, OK
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Article Text
NO CAUSE FOR ALARM is no cause for alarm through today's suspension of the Muskogee-Security National bank. THE DAILY NEWS is reliably informed and THE DAILY NEWS has every confidence in the source of its information that the bank will be reorganized and that depositors will not lose. Whatever embarrassment the suspension of the Muskogee-Security has or will cause will be of short termination. the bank never does business again it But even though will not affect the stability of Muskogee as a whole. Muskogee has weathered more ticklish situations than that caused by the Muskogee-Security's suspension and there should be no excitement now. Muskogee is built of the stuff that does not become discouraged over an affair of this kind.
3.October 21, 1925Okmulgee Daily TimesOkmulgee, OK
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Article Text
DIRECTORS CALLED BANK EXAMINER TO SAVE DÉPOSITORS
Run Started Last Friday and Was Growing When Doors Swung Shut
DEPOSITS TOTALED 2 MILLION DOLLARS
President Announces Bank Will Be Re-Organized and Depositors to Receive 100 Cents on Dollar.
MUSKOGEE Oct. 20 Muskogee Security National bank closed its doors here at noon today. Business was discontinued In order to make sure that there would be no preferred depositors. President Milton Young declared tonight. "The doors were closed at the request of the bank's board of directors, not because of an order from the bank examiner." Young said. "The examiners were requested to come here by the board of directors. They had made no investigation at the time the bank closed." Run Began Friday A run on the bank. begun last Friday and growing to serious proportions this morning was given as by the president. About $1,000,000 in cash and liberty bonds 18 on hand to meet withdrawal requests, he said. Depositors are credited with slightly more than $2,250,000 in statement made public by bank officials October 6. The run which resulted In the closing of the doors was caused by rumors of trouble which have circulated for the past month. Young said.
Talk of Reorganization. "Depositors will receive 100 cents on the dollar," he added. "Had the run come a few days later we would have been entirely re-organized and able to meet the demands. We were determined that no depositors would be shown preference, however, so lecided that the door should swing --- more active president will probably be named in the re-organization and am certain that the bank will re-open within a few days."
4.October 21, 1925The Enid Morning NewsEnid, OK
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Article Text
BANK AT MUSKOGEE IS CLOSED TUESDAY
MUSKOGEE, Okla., Oct. -The Muskogee Security National bank closed its doors here at noon today. Business was discontinued in ord. er to make sure that there would be no preferred depositors, President Milton Young declared tonight. "The doors were closed at the request of the bank's board of directors; not because of an order from the bank examiners," Young said "The examiners were requ to here the board 0 fdirectors.
5.October 21, 1925Muskogee Daily Phoenix and Times-DemocratMuskogee, OK
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Article Text
COUNTY FUNDS ARE SAFE
Treasurer Explains That Deposits in Closed Bank Are Secured by Collateral
County Treasurer Bert Pitts declared yesterday that county funds on deposit with the Muskogee Security National bank here which was closed following were "amply frotected' and that no possible loss could to the county as the result of bank failure. Under state law, he explained, banks accepting deposits of county funds must furnish collateral to Against about $8000 deposits the Muskogee Security institution, some $20,000 liberty bonds stand collateral in another bank.
6.October 21, 1925Muskogee Daily Phoenix and Times-DemocratMuskogee, OK
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Article Text
BANK'S DIRECTORS AND EXAMINER CLOSED 'SECURITY'
Doors Locked to Protect Smaller Depositors in Face of Run, President Young Says
MANY CIVIC INSTITUTIONS HAD MONEYS ON DEPOSIT
Girl Scouts' Balance at $750, Chamber of Commerce at More Than pled Newsy $200 in the Muskogee Security National bank which was closed yesterday noon will receive dollar for dollar on funds in the care of that institution Milton G. Young, president of the bank, declared last night. The president said that the doors were closed yesterday at the request of the board of directors and not at the order of the national bank examiners who were on the scene. Rumors of trouble in the bank's affairs caused slight run late Friday afternoon, he said. The requests for withdrawals increased until they reached alarming proportions yesterday morning.
No Preferred Depositors
"It was because of determination that there would be no preferred creditors that the bank was closed,' Young declared. "Had the run not come at the time did we would have had time to complete and the bank would never have closed. We were attempting to new and more active presidentwhen the run on the bank made closIng "The directors were called together yesterday morning. They decided that the run continued the bank must close in order to protect all depositors. "You may be depositor. Your interests will be protected. Large and small creditors will receive exactly the same treatment.
Bank to Reopen-Young
"There is no question but that the bank will be reorganized, reopened and every depositor paid 100 cents on the dollar with days time. public of the City of Muskogee and Muskogee countyare protected by surety bonds. "The stockholders of the bank are
7.October 21, 1925Muskogee Daily Phoenix and Times-DemocratMuskogee, OK
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Article Text
BANK'S LATEST STATEMENT
Statement condition the Muswhich was public October
Resources
Loans Reserve bank Banking house, furniture estate resources Liberty bonds AND SIGHT EXCHANGE
$2,885,795.03
Liabilities Capital stock Reserve DEPOSITS liable for double the amount of their investments SO that the depositors are protected regardless of what may come. There are about 90 holders of Muskogee Security stock." No examination of the bank's books had been made by the national bank examiners here at the time of the closing, the president said The action entirely at the request of the bank's own An of the records will probably be made today, he declared.
Rumors Caused Trouble
Young's explanation of the run on the bank was that of trouble had been circulating for more than month and that some large depositor evidently alarmed and spread reports of an crash. About $200,000 in restricted Indian funds is on deposit at the closed bank, officials at the Indian here said yesterday. This amount protected by surety bonds and Liberty bonds. that approximately $1,000,000 in cash and Liberty bonds is available to meet demands of depositors when the bank is reopened. Loans constitute the other main source of assets. At the present time deposits total slightly more than $2,250,000, Young declared. When the order for closing of the
CONTINUED ON PAGE TWO
8.October 21, 1925Nowata Daily StarNowata, OK
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Article Text
GOSSIP CAUSED RUN ON BANK
By United Press. Muskogee, Oct. -Officers of the Muskogee-Security National Bank today were closeted in conference with H. H. Ogden, president of the First National Bank here, and bank examiners. No word was given out as to future plans of the bank, but it was stated on good authority that the First National Bank was interested in a possible merger re-organization. Milton C. Young said that no one will lose by the closing. The run on the institution yesterday causing closing of the doors. was attributed to irresponsible gossip engendered by much night work in the institution.
9.November 8, 1925Okmulgee Daily DemocratOkmulgee, OK
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Article Text
KERSHAW NAMED BANK RECEIVER
Republican Leader Named to Conduct Affairs of Muskogee Security National. the Muskogee Security National by J. Mr officials porary been collect 100 from the and then the opening new bank uminer in the tenth federal reserve Under the plan. if the depositors agree shrinkage deposits of from the receiver the to and new crediting Muskogee Security National with accounts in the new bank.
10.November 8, 1925Okmulgee Daily TimesOkmulgee, OK
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Article Text
BANK RECEIVER NAMED. MUSKOGEE Nov. R. Kershaw of Muskogee. was today appointed receiver for the Muskogee Security National bank. which closed its doors three weeks ago when "run" was begun by depositors.
11.November 8, 1925Morning ExaminerBartlesville, OK
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NAME BANK RECEIVER Associated Press MUSKOGEE, Okla., Nov., 7L R. Kershaw of Muskogee was Saturday appointed receiver for the Muskogee Security-National Bank, which closed its doors three weeks ago when a "run" was begun by depositors.
12.November 8, 1925Shawnee News-StarShawnee, OK
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Bank Receiver is Named
(By the Associated Press) L. R. Kershaw of Muskogee, was tolav appointed receiver for the Muskogee Security National Bank. which closed its doors three weeks ago when a "run" was begun by depositors.
13.November 8, 1925The Ponca City NewsPonca City, OK
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COUNTESS IS AGAIN DENIED PASSPORT
Washington, Nov. state refused to grant renewed request of Karolyi, wife the former president the republic for admission to the United States.
Bank Receiver Appointed Muskogee, Nov. Kershaw Muskogee was today appointed received the Muskogee Security National bank, which closed its doors three weeks when begun depositors.
14.February 6, 1926The Chickasha Daily ExpressChickasha, OK
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Article Text
LOCKED
Doors Closed Following Run on stitution Yesterday; Former President in Capital: Bank to Be Reopened.
Muskogee, Okla., Feb. National bank of Hascurity kell deposits of $275,000 failed its doors today as the to open result of in Muskogee between Cook, the bank's president E. Allen, national bank examiner. Today's action followed yesterday's the bank, said to have been run by the arrest in Oklaprecipitated homa City of Hayes, vice president the Arkansas Valley State Fort Smith, Ark., and former bank, president of the Stigler bank. Hayes. 50-years charged with having taken from safety deposit box of the Fort Smith bank and following his arrest Oklahoma City, was returned to according to advices here. Hayes had been relieved of his connection with the Stigler bank. This the national bank in state to close its doors within the past few months. Cook and Stigler citizens declare the bank vent, and the institution will be re-opened, if possible, business. The Muskogee Security National bank. having failed last fall, now the process of liquidation while the opening bank to replace to be announced this week.
POLAR FLYERS TO SEATTLE Kansas City, Feb. members of the Wilkins party which to attempt to fly the North pole left here last night for Seattle, Wash., make final before the start Alaska and the
15.July 16, 1926Muskogee Daily Phoenix and Times-DemocratMuskogee, OK
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SECURITY BANK RECEIVER HAS TWO RIGS TO SELL
Five Autos and House and Lot Also Will Be Offered at Auction Shortly
L. R. Kershaw, receiver for the Muskogee Security National bank, announced yesterday that he had several oil drilling outfits for sale, together with various other arti which will be put up for auction. Two of the drilling machines, one Star and the other National, will be sold to satisfy judgments or foreclosure taken by the receiver. Among other articles to be sold are new truck, five cars, and one house and lot.
16.March 11, 1927Muskogee Times-DemocratMuskogee, OK
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BANK RECEIVER SEEKS TO COLLECT TWO NOTES
Suits to collect two notes. totalHng more than $13,000, were filed by L. R. Kershaw, receiver for the Muskogee Security National bank, in district court here today. J. C. Culbertson and E. Tomm doing business as Culbertson and Tomm. were sued for $7,184.69 and the Spotless Cleaners and Dyers, Inc., for $6,864.57. Attorneys fees are also asked.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
