Farmers State Bank (Kingman, KS)

Episode Information

Episode UID
2419702891489
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
241970289 hash
Start Date
January 16, 1924
Location
Kingman, Kansas (37.646, -98.114)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ee185309b90ac2e6

Response Measures

None

Description

Chronology in local paper gives Jan. 16, 1924 as date the bank failed to open and receivership actions followed.

Events (3)
1. January 16, 1924 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after frozen credits and large notes/defaults (heavy loans to E. M. Haile and others) left assets impaired.
Newspaper Excerpt
Jan. 16—Farmers State Bank of Kingman failed to open for business. John E. Wagner, special deputy bank commissioner, in charge.
Source
newspapers
2. January 22, 1924 Other
Newspaper Excerpt
Jan. 22—Banking department files suit for $80,935.00 against Elster M. Haile, on notes owed Farmers State Bank.
Source
newspapers
3. February 1, 1924 Receivership
Newspaper Excerpt
Feb. 1—E. L. Allen of western part of state, appointed receiver.
Source
newspapers

Newspaper Articles (11)
1. January 25, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, January 25, 1924

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Article Text

BANK RECEIVER SUES E. M. HAILE JUDGMENT FOR $80,935 IS ASKED FOR BY FARMERS STATE BANK PROPERTY IS TIED UP Eleven Notes, the First Ones Made in 1921, Figure in the Transactions With Kingman Oil Man Now in Fort Worth. Tying up a large amount of real estate, 1970 acres of farm land all situated in Kingman county, and 17 parcels of town property in the city of Kingman, the filing of a suit in district court, here, Tuesday, to recover a judgment in excess of $80,000.00 from Elster M. Haile, formerly of this city but now residing in Fort Worth, Texas, where he is in the oil business, marks the beginning of action on the part of the receiver of the Farmers State Bank, John E. Wagner, to recover some of the frozen credits of the failed institution. This first suit was filed by Chas. C. Calkin, attorney for the plaintiffs, the Farmers State Bank of Kingman, and John E. Wagner, a special deputy bank commissioner of the state of Kansas, who is now in charge of the big Kingman county bank which closed its doors last week. The petition sets forth the financial dealings through which Haile became indebted to the bank, and recites the various notes, together with their interest payments. The first item is a note for $10,000.00, a demand note, dated August 12, 1921, made to the Farmers State Bank of Kingman. The next entries are a series of five notes, all made on Dec. 5, 1921, signed by E. M. Haile, and made in favor of J. E. Callahan and W. P. Callahan. One note, for $4,000.00, was due Sept. 20, 1922; the second, for $4,000.00, was due Oct. 8, 1922; the third, for $4,000.00, was due Nov. 20, 1922; the fourth, for $4,000.00, was due Dec. 20, 1922, while the fifth, for $5,500.00, was to become payable Jan. 20, 1923. The petition cites that these notes were later taken over by the Farmers State Bank, as an incorporated institution, the endorsement of J. E. Callahan appearing on their backs. On April 14, 1922, according to the recital of facts contained in the petition, two notes for $6,000.00 each, totaling $12,000.00, each due in sixty days from their date, were made to the Messrs. Callahan, and these were also endorsed and turned to the bank. On July 1, 1922, a note for $9,000.00 was made direct to the bank, this note being made for sixty days. The largest note of the lot was one for $16,000.00, made for sixty days from date, this note being also made to the bank. The last item of borrowed money was a note for $5,000.00, made Nov. 21, 1922, which was a demand instrument, due one day after its date. All these notes, which were the property of the bank, totaled the sum of $73,500.00, the interest due on this principal running up the total due the bank to $80,935.00. Interest payments are scheduled in the filed papers as having been made as follows: $646.66 on Jan. 1923; $1,000.00 on March 24, 1923, and $1,000.00, paid on April 23, 1923. These are the only interest payments having been recorded. The property mentioned in the suit includes 120 acres in section twelve, 240 acres in section 13, and 90 acres in section 14, all in township 30, range seven, on which there is a first mortgage of $10,000, and a second mortgage of $5,000 on the 450 acres. The town property is all of blocks or lots A, E and F in Frazer's addition to the town of Kingman, on which there is a mortgage of $4,000.00. In addition to this property, other real estate mentioned in the suit is Mr. Haile's undivided half interest in his father's estate, left to him under the will of his father, J. F. Haile. All of this land is subject to the life estate of his mother, Mattie E. Haile. The farm land comprises 1520 acres in Kingman county and 14 lots in the city of Kingman. This suit will, in all probability, be but the first of several which will be put through the courts in an effort to realize on some of the assets of the failed bank.

2. January 25, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, January 25, 1924

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REORGANIZATION OF BANK MAY BE TRIED BANK COMMISSIONER SAYS DEFINITE WORD CAN BE GIVEN SOON Plan for Re-Opening of Failed Farmers State Bank is Being Worked On, and Few Days More Will Tell the Story. Announcing that a plan of reorganization is now being worked on for the Farmers State Bank of Kingman, which closed its doors last week, John E. Wagner, special deputy bank commissioner for the banking department of the state of Kansas, stated, Wednesday, that in a few days definite announcement could be made regarding the future of the institution. Work of checking up the records and accounts of the bank has been going steadily forward during the past several days, and within a day or so it can be definitely determined just what is the status of the assets and liabilities. Mr. Wagner says that the further investigation bears out the statement that there can be no criticism of the local management of the bank, that all the accounts and records are straight and balance to the last dot, that everything is square and all right, and that this was one "honest bank failure." In saying that definite announcement may be expected within the next few days concerning the reorganization of the bank, Mr. Wagner declares that he believes in giving all the facts to the public, and that the depositors and everyone concerned are entitled to know the exact situation. And for that reason, Mr. Wagner says, he will make a definite statement for next week's Journal, saying whether or not the bank will be able to re-organize. From a news standpoint, there is nothing new to report in regard to the bank. Business men, citizens and farmers are anxious that the institution be re-opened. Several plans and rumors have been circulated in this regard, but nothing tangible has as yet developed, and nothing can be done until the final details of the investigation are worked out.

3. January 26, 1924 The Hutchinson News Hutchinson, KS
Article from The Hutchinson News, January 26, 1924

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Article Text

BANK RECEIVER SUES OIL MAN Judgment for $80,215 is Sought by Receiver for Closed Bank. Kingman, Kan., Jan. 26.—Tying up a large amount of real estate, 1970 acres of farm land all situated in Kingman county, and 17 parcels of town property in the city of Kingman, the filing of a suit in district court, here, Tuesday, to recover a judgment in excess of $80,000.000 from Elster M. Haile, formerly of this city but now residing at Fort Worth, Texas, where he is in the oil business, marks the beginning of action on the part of the receiver of the Farmers State Bank, John E. Wagner, to recover some of the frozen credits of the failed institution. This first suit was filed by John E. Wagner, a special deputy bank commissioner of the state of Kansas, who is now in charge of the big Kingman county bank which closed its doors last week.

4. March 7, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, March 7, 1924

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KABLER RECEIVER? Presenting an application for a charter for a new bank in Kingman, bearing the names of thirty petitioners who would be stockholders in the new institution, their aggregate worth representing approximately one and a third million dollars, a group of local business and professional men and interested citizens are endeavoring to secure approval of the state charter board in organizing an entirely new financial institution. The application for the charter was presented to the state charter board the first of the week by Clark Wallace, who was informed by the bank commissioner, Mr. Peterson, that another charter had already been asked for by a different group of men, and that a hearing on both the applications would be held on March 19th, at which time both groups might be present and put forth their claims for consideration. Following the publication of the article in last week's Journal telling of the rumored application presented by the Callahan interests for a new bank in Kingman, an article printed in the Saturday issue of the Wichita Beacon, denied the report that a new bank was being formed at Kingman. The denial was as follows: "Dan F. Callahan and Dr. W. F. Callahan, both of Wichita are interested in aiding in the reorganization of the Farmers State Bank, at Kingman, which was closed a number of months ago. Dan Callahan said today the report that a new bank is being formed at Kingman is not correct. "'We are merely interested in having the old bank reorganized,' said Mr. Callahan. "Stock to the amount of $25,000 has been fully subscribed for the reopening of the bank. The Wichita men denied that they have taken a lease on the building formerly occupied by the defunct bank." The first charter application, according to information secured by Clark A. Wallace, was made on February 7th, four weeks ago. It was sent to Mr. Peterson at Topeka by W. P. Callahan, who accompanied the application with a letter asking that a hearing and consideration be made on the day following, February 8th. It was not taken up by the charter board, however, and it will also come up for hearing on March 19th, according to Mr. Peterson. As set forth in that first application, five men were given as stockholders, each subscribing for fifty shares of stock in a $25,000 institution. These proposed stockholders were H. C. Leach, W. P. Callahan, E. C. Crowe, Chas. C. Calkin and E. L. Allen. Mr. Crowe, who is the receiver of the defunct bank at Cunningham, and Mr. Allen, receiver for the Farmers State bank of Kingman, are both appointees of Mr. Peterson, bank commissioner, and Mr. Calkin has been, for several years, attorney for the Kingman bank and, at various times, for the Callahan interests. In this connection, it is stated that the charter application presented by the group of thirty Kingman men, is also for a $25,000 bank, and that the proposed stockholders are all reliable substantial men of the community, who would undoubtedly conduct an up-to-date banking institution. The two applications, it is understood, are all that have been presented to the charter board. The charter board is composed of the banking commissioner, the secretary of state, and the attorney general. Mr. Wallace states that at the hearing to be held on the 19th, it is the intention of this local group to be present, and push their claims in favor of granting the charter to the local group, rather than to those who made an application early in February. In discussing the case, Mr. Peterson, bank commissioner, advised Mr. Wallace that he would come to Kingman next week and go over the entire matter very carefully, and that he would also investigate the proposition of having L. W. Kabler appointed as receiver for the defunct Farmers State bank. Some few weeks ago, petitions were presented to the commissioner asking that H. W. Freeland be appointed receiver instead of E. L. Allen, who is now in charge, but Mr. Peterson stated that it was not the inclination of the department in the case of failed banks to appoint as receiver any person who had been connected with a defunct institution. Following this, petitions representing approximately $315,000 worth of deposits and claims against the bank were prepared and presented, asking that L. W. Kabler be appointed receiver. This petition has not yet been acted upon. Mr. Wallace points out that the law provides the appointment as receiver of any one for whom more than 50 per cent of the claimants, in writing, declare their preference. Mr. Peterson, on his visit to Kingman next week, has promised to look into this matter, as well as inquiring into the status of the two applications for charters.

5. March 14, 1924 The Cunningham Clipper Cunningham, KS
Article from The Cunningham Clipper, March 14, 1924

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KINGMAN FIGHTING OVER BANK CHARTER KINGMAN CITY WILL HAVE ANOTHER BANK SOON. Two Charters Have Been Applied For—Cunningham Man Interested in One Charter. According to an article in last week's Kingman Journal someone is going to start another bank there in the near future. A part of the article is as follows: Presenting an application for a charter for a new bank in Kingman bearing the names of thirty petitioners who would be stockholders in the new institution, their aggregate worth representing approximately one and a third million dollars, a group of local business and professional men and interested citizens are endeavoring to secure approval of the state charter board in organizing an entirely new financial institution The application for the charter was presented to the state charter board the first of the week by Clark Wallace, who was informed by the bank commissioner, Mr. Peterson, that another charter had already been asked for by a different group of men, and that a hearing on both the applications would be held on March 19th, at which time both groups might be present and put forth their claims for consideration. Following the publication of the article in last week's Journal telling of the rumored application presented by the Callahan interests for a new bank in Kingman, an article in the Saturday issue of the Wichita Beacon denied the report that a new bank was being formed at Kingman. The denial was as follows: "Dan F. Callahan and Dr. W. F. Callahan, both of Wichita are interested in aiding in the reorganization of the Farmers State Bank, at Kingman, which was closed a number of months ago. Dan Callahan said today the report that a new bank is being formed at Kingman is not correct. "'We are merely interested in having the old bank reorganized,' said Mr. Callahan. "Stock to the amount of $25,000 has been fully subscribed for the reopening of the bank. The Wichita men denied that they have taken a lease on the building formerly occupied by the defunct bank." The first charter application, according to information secured by Clark A. Wallace, was made on February 7th, four weeks ago. It was sent to Mr. Peterson at Topeka by W. P. Callahan, who accompanied the application with a letter asking that a hearing and consideration be made on the following day, February 8th. It was not taken up by the charter board, however, and it will also come up for hearing on March 19th, according to Mr. Peterson. As set forth in that first application, five men were given as stockholders, each subscribing for fifty shares of stock in a $25,000 institution. These proposed stockholders were H. C. Leach, W. P. Callahan, E. C. Crow, Chas. C. Calkin and E. L. Allen. Mr. Crow, who is receiver of the defunct bank at Cunningham, and Mr. Allen, receiver for the Farmers State Bank of Kingman, are both appointees of Mr. Peterson, bank commissioner, and Mr. Calkin has been, for several years, attorney for the Kingman bank and, at various times, for the Callahan interests. In this connection, it is stated that the charter application presented by the group of thirty Kingman men, is also for a $25,000 bank, and that the proposed stockholders are all reliable substantial men of the community, who would undoubtedly conduct an up-to-date banking institution. The two applications, it is understood, are all that have been presented to the charter board. The charter board is composed of the bank commissioner, the secretary of state and the attorney general. Mr. Wallace states that at the hearing to be held on the 19th, it is the intention of this group to be present and push their claims in favor of granting the charter to the local group, rather than to those who made an application early in February. In discussing the case, Mr. Peterson, bank commissioner, advised Mr. Wallace that he would come to Kingman next week and go over the entire matter very carefully, and that he would also investigate the proposition of having L. W. Kabler appointed as receiver for the defunct Farmers State Bank. Some few weeks ago, petitions were presented to the commissioner asking that H. W. Freeland be appointed receiver instead of E. L. Allen, who is now in charge, but Mr. Peterson stated that it was not the inclination of the department in the case of failed banks to appoint as receiver any person who had been connected with a defunct institution. Following this, petitions representing approximately $315,000 worth of deposits and claims against the bank were prepared and presented, asking that L. W. Kabler be appointed receiver. This petition has not yet been acted upon. Mr. Wallace points out that the law provides the appointment as receiver of any one for whom more than 50 per cent of the claimants, in writing, declare their preference. Mr. Peterson, on his visit to Kingman next week, has promised to look into this matter, as well as inquiring into the status of the two applications for charters. E. C. Crow, cashier of the First State Bank of this city, and E. L. Allen, a director in the same bank, are the people from Cunningham who are interested in the first bank charter application which was presented to the bank commissioner.

6. March 28, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, March 28, 1924

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INVESTIGATING COMMITTEE CHOSEN TO PROBE AFFAIRS OF FAILED BANK Depositors Meeting Saturday Resulted in Decision to Act Carl Peterson, State Bank Department Head, Declares Future Course of Action Up to Depositors, Who Are Now Bank's Owners. COMMITTEE ACTIVE THE COMMITTEE S. S. Alexander Sam LeFuze A. E. Dutton Chauncey Sparks Henry Isley Attended by a crowd of approximately five hundred persons, the meeting of depositors of the failed Farmers State Bank of Kingman, held in the court room last Saturday night, was addressed by Carl Peterson, state bank commissioner, who, in a lengthy address touching several phases of the bank's failure and the plan for re-organization, reiterated his former declaration that the bank now belongs to the depositors and that they can do with it what they will. After discussing events leading up to the closing of the bank, and stating that it would be better to re-organize the old bank than to issue any charters for new institutions here, Mr. Peterson stated that his only plan for re-organization would be for the depositors to purchase stock on the two-and-a-half for one plan, previously told of in these columns, suggesting, however, that it might be better to re-open the institution with a capitalization of fifty thousand dollars rather than a hundred thousand, which would make the purchase of stock come on a higher basis. Under this proposition, the county commissioners, Mr. Peterson suggested, could donate half of their deposits, sacrifice money coming from the people as a whole rather than a small number, into the liquidating fund to take up the frozen assets of the failed bank. Mr. Peterson did not go into great length on this phase of the plan, hesitating, he said, in making suggestions before an investigating committee could determine just what course of action should be pursued by the depositors. The commissioner declared that the entire plan pivoted on the action of the county commissioners, who represent the largest deposit in the failed bank, and that if they did not see fit to come in on the plan of re-organization that so far as he was concerned the entire idea would have to abandoned, and that the institution would go ahead under the receivership and eventually liquidate the affairs and clean up the business of the closed institution. In this connection, Mr. Peterson went into detail, quoting figures to show that the state guaranty fund would pay out every dollar that was required, not only in this bank, but in all other failed banks of the state, in order to fully protect the depositors. He stated that under the receivership no single depositor would lose a cent, and that the guaranty fund is in shape to pay all claims, and that no one need be afraid of eventually getting their money, in full. After various persons had asked several questions concerning details, methods, plans, policies, etc., Mr. Peterson asked the assemblage what their wishes were in the matter, and S. S. Alexander, local attorney, prefacing his remarks with the statement that he was not aligned with any faction on either side of the bank controversy, was not directly interested, and had not formed a decided opinion in regard to the future of the bank, made a motion that a committee be appointed to go into the bank, delve into the exact situation, investigate the real facts surrounding the bank failure and the conduct of its business prior to its closing, and then report back to the depositors at some future meeting, making such recommendations as they see fit. Mr. Alexander suggested that Mayor Fieser, Paul Woods of the First National bank, and Ben Welch of the State Bank of Kingman, be appointed as a committee to choose this committee of five who would represent the depositors in the investigation. Mr. Alexander, in making his motion, which was carried, suggested as qualifications for the members of this investigating committee that they be depositors in the failed bank, not aligned with any faction regarding the bank situation, that they be persons who had made no decided stand regarding the future of the bank, that they be men in whom the community had the utmost confidence, that no officers of CHRONOLOGY Jan. 16—Farmers State Bank of Kingman failed to open for business. John E. Wagner, special deputy bank commissioner, in charge. Jan. 22—Banking department files suit for $80,935.00 against Elster M. Haile, on notes owed Farmers State Bank. Jan. 31—Dan and Dr. W. P. Callahan, with endorsement of state bank commissioner, propose plan to re-organize bank on fifty-fifty basis, depositors to purchase stock with half of deposits. Feb. 1—E. L. Allen of western part of state, appointed receiver. Feb. 5—Kingman county commissioners, with deposit of $108,000, fail to endorse plan for re-organization. Feb. 7—State charter board asked to issue charter for a new $25,000 bank in Kingman, application being made by Dr. Callahan, E. L. Allen, and others. Feb. 13—Petition asking appointment of Henry Freeland, president of failed bank, as receiver, denied by banking department. March 3—Charter application for $25,000 bank asked for by group of 30 local men. Hearing set for March 19th. March 3—Petition asking for appointment of L. W. Kabler as receiver filed with bank department following word that Freeland was not eligible to appointment. March 13—Carl Peterson, state bank commissioner, talks to group of depositors in directors room at bank, urging re-organization. March 19—State charter board postpones hearing of applications for the two charters for new banks in Kingman. March 22 — Announcement made by Commissioner Peterson that an application had also been made for a charter for a national bank here. March 22—Approximately 500 depositors of bank meet in court room for discussion with Peterson of re-organization plan. Motion carried choosing Mayor Geo. W. Fieser, Paul S. Woods and Ben Welch to appoint committee to probe affairs of failed bank. March 26—Investigating committee, consisting of S. S. Alexander, Sam LaFuze, A. E. Dutton, Chauncey Sparks and Henry Isley, appointed. First committee meeting held, in conference with E. L. Allen, receiver.

7. March 28, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, March 28, 1924

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CHRONOLOGY Jan. 16—Farmers State Bank of Kingman failed to open for business. John E. Wagner, special deputy bank commissioner, in charge. Jan. 22—Banking department files suit for $80,935.00 against Elster M. Haile, on notes owed Farmers State Bank. Jan. 31—Dan and Dr. W. P. Callahan, with endorsement of state bank commissioner, propose plan to re-organize bank on fifty-fifty basis, depositors to purchase stock with half of deposits. Feb. 1—E. L. Allen of western part of state, appointed receiver. Feb. 5—Kingman county commissioners, with deposit of $108,000, fail to endorse plan for re-organization. Feb. 7—State charter board asked to issue charter for a new $25,000 bank in Kingman, application being made by Dr. Callahan, E. L. Allen, and others. Feb. 13—Petition asking appointment of Henry Freeland, president of failed bank, as receiver, denied by banking department. March 3—Charter application for $25,000 bank asked for by group of 30 local men. Hearing set for March 19th. March 3—Petition asking for appointment of L. W. Kabler as receiver filed with bank department following word that Freeland was not eligible to appointment. March 13—Carl Peterson, state bank commissioner, talks to group of depositors in directors room at bank, urging re-organization. March 19—State charter board postpones hearing of applications for the two charters for new banks in Kingman. March 22 — Announcement made by Commissioner Peterson that an application had also been made for a charter for a national bank here. March 22—Approximately 500 depositors of bank meet in court room for discussion with Peterson of re-organization plan. Motion carried choosing Mayor Geo. W. Fieser, Paul S. Woods and Ben Welch to appoint committee to probe affairs of failed bank. March 26—Investigating committee, consisting of S. S. Alexander, Sam LaFuze, A. E. Dutton, Chauncey Sparks and Henry Isley, appointed. First committee meeting held, in conference with E. L. Allen, receiver.

8. March 28, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, March 28, 1924

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CLEARING THE ATMOSPHERE During the past weeks the Journal has purposely refrained from commenting on the bank situation in Kingman for the simple reason that there did not appear to be much that could be said with any degree of certainty, and for the further reason that the more that was said the more confusing the issues became. However, since the public meeting last Saturday night the atmosphere shows signs of clearing. For the first time since the bank suspended, a really constructive step was taken in the appointment of a local committee to make a thorough investigation of the situation and to formulate a plan of action. The idea was to get a committee of five men who were absolutely unbiased, and who would approach the job with open minds, ready and willing to be convinced that the bank can be re-opened, if they find that such are the facts, and at the same time honest and courageous enough to advise against any re-opening plan if in their judgment the facts do not warrant such action. Three men were chosen to select this committee under certain restrictions. The job will be in the hands of the committee thus selected. It will be their business to go into the affairs of the bank and determine from first hand information what is what. After that the plan of action, if any, will be formulated. If it should do nothing else, the work of this committee should at least have the effect of silencing the various and divers rumors that have kept the air murky for the past few weeks. When these men have determined exactly what is true and what is false, there will then be no excuse for the further peddling of promiscuous stories about this or that, or the making of charges and counter charges, many of which have had little back of them save personal animosities and political prejudices. Now, the question arises, what will the people do? Are the citizens of Kingman big enough and fair enough to get back of their own committee for the best interests of the community? Only a few days after the closing of the bank in January the Journal had occasion to express a few ideas in regard to the situation. In a front page editorial the following language was used, "It (the bank failure) has produced a situation that calls for clear thinking, courage, and faith in the resources of the community to stand a blow and still 'carry on'." And continuing, the article stressed the necessity of every citizen standing shoulder to shoulder and pushing as they had never pushed before. And, unfortunately, these are the things that up to recently have been signally lacking. There has been a dearth of "clear thinking." Courage has been at a low ebb, and the citizens of Kingman and community have utterly failed to pull together. Now, however, as intimated at the beginning of this article, the atmosphere is beginning to clear. There is every reason to believe that in a few days we shall know all we need to know about the affairs of the bank in order to act intelligently. And with that information at hand, it certainly ought to be expected that a united effort will be made to pull the bank out of the hole. For it is generally conceded that the town needs nothing worse than the reorganization of the Farmers State Bank if such a thing be within the realm of possibilities.

9. April 25, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, April 25, 1924

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BANK COMMITTEE FINISHES REPORT General Meeting of Depositors Planned for Sat., May Third Carl J. Peterson, State Banking Commissioner, Met With Committee Monday and Will Be Here Next Week. Announcing that they have completed their investigation into the affairs of the defunct Farmers State bank, the committee recently appointed for this purpose, consisting of Messrs. Alexander, LaFuze, Dutton, Sparks and Isley, have called a general meeting of the depositors of the failed bank, to meet at the court room in the court house on Saturday night, May third, at which time they will make their report in full. Carl J. Peterson of Topeka, state bank commissioner, was in Kingman last Monday afternoon in conference with the committee and the board of county commissioners, but nothing was accomplished at this conference, as the committee had not yet completed their work. Mr. Peterson, however, told the Journal that he would be back in Kingman on next Monday afternoon, when he would meet with the committee, go over their report, verify their figures, and submit to them his plan for a re-organization of the bank, based on the findings of the committee. "You may say," stated Mr. Peterson to the Journal, "that everything is coming along nicely, and that I have a very favorable opinion of the final outcome. It is the desire of the department to do the very best possible thing for Kingman and community, and all our work is towards that end." Final work of checking the figures obtained by the committee was completed at a meeting late Wednesday. A very few little details yet remain to be worked out, but nothing official has been given out for public information concerning their report as yet. The Journal, however, will present the report in full in next week's paper, in time for the general public and the depositors to study the figures before the general meeting is held Saturday night. "We have found the affairs of the bank in surprisingly good condition, outside of the notes and obligations of stockholders and 'close-ins' of the bank," states one of the members of the committee. "Our report will go into detail rather extensively, and will show just what the true facts and figures are. We have had good co-operation from the banking department, and from Mr. Allen, the bank receiver, and we believe we have a report that will be welcomed by the depositors." The committee will not recommend a re-organization, nor will they advise against it. The plan is for Mr. Peterson to submit his plan for re-organization, based on the figures as found by the committee, and it is for this purpose that Mr. Peterson is coming to Kingman next Monday. The Journal will present the complete report, in detail, in next week's issue.

10. May 30, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, May 30, 1924

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Late News of the Bank Situation Word was received in Kingman last week that the application had been approved for the issuance of a national bank charter to a group of Kingman men who are seeking to organize the Home National bank. Their charter application, which had been made several weeks ago, at practically the same time they had asked for a state charter, had been investigated by national bank examiners, who were in Kingman several weeks ago. The Home National bank, in case it is organized and put in operation in Kingman, will be conducted by a group of men headed by Henry Freeland and Ralph Collins, former president and cashier of the Farmers State Bank of Kingman, and having for its stockholders some thirty local men. A meeting of the proposed stockholders has not been held since the communication was received from Washington advising of the approval of the charter application, so that nothing definite is known as to just when the new bank will be put in operation, if at all. The proposed officials of the new institution have not as yet made any steps towards commencing the operation of the new bank, though it is known they are investigating the availability of several business houses in which to start the bank. The proposed bank would start out with a $25,000 capital stock. Meeting of Depositors A gathering of several of the depositors of the failed Farmers State Bank was held at the Chamber of Commerce rooms on Thursday night of last week, the meeting being called by Messrs. Eggleston and Dutton. Some 25 or 30 persons were present, and a permanent organization was formed, Alva Dutton being chosen president and F. D. Eggleston secretary. The purpose of this new organization, according to the men backing it, is merely to form the nucleus around which the depositors may institute further action, and to assist the committee recently appointed to look after the interest of the depositors. Nothing has been heard in Kingman during the past few days indicating what the state charter board will do in the matter of granting a state charter to the Citizens State Bank. The board was to have announced its decision several days ago, but no official action has yet been taken, and probably will not be until their regular meeting the first Wednesday in June. Just what effect the granting of a national bank charter to the Home bank group will have on the action of the state charter board is not known. The depositors' committee recently appointed held a short meeting Tuesday morning with E. L. Allen, bank receiver, and C. C. Calkin, attorney for the receivers. A discussion of various business affairs was had, several matters concerning the receivership being talked over.

11. June 13, 1924 The Kingman Journal Kingman, KS
Article from The Kingman Journal, June 13, 1924

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PETERSON APPROVES Committee of Fifteen Works to Furnish Prompt Relief to Depositors and Entire Community. Embodying a simple, yet detailed plan for the handling of the liquidation of the defunct Farmers State Bank of Kingman, and outlining a method which, its backers say, will provide for the prompt winding up of the bank's affairs with a consequent cutting down of the receivership expense, a group of interested persons of the community, following the submission of such a proposal by S. S. Alexander, local attorney, are quietly working to put through a plan to form a local liquidation company, which will take over the assets of the bank and handle the liquidation themselves. Following the working out of the plan by Mr. Alexander, it was presented to a number of interested Kingman men, who were in close touch with the situation, and this group, after conferences with Bank Commissioner Carl J. Peterson and A. R. Wallace, president of the association of the state guaranteed banks, have announced the approval of the banking department and the state bankers of Kansas, of the proposal. After this approval had been secured, a meeting of the heavy depositors of the bank, those with an account of $1,000 or larger, was held in Kingman last Friday afternoon, at the Chamber of Commerce rooms. The committee had attempted to get in touch with every depositor in this class, but not all of them were reached. However, approximately fifty people were present at the meeting. Mr. Alexander outlined his plan to the gathering, and after its explanation in detail the depositors present unanimously adopted the proposal as a future course of action, passing a resolution, which is as follows: The Plan in Detail "The heavy depositors of the Farmers State Bank of Kingman recommend to the depositors of said bank and the Kingman community, the following: 1. We believe it will be for the best interest of the depositors and the community at large, for the bank to be liquidated as quickly as possible. We believe that the plan of the depositors appropriating in the neighborhood of 40% to 60% of their deposits in stock of a liquidation corporation, to be sound finance. "2. The general outline of the plan is as follows: "A. The bank commissioner, in connection with the executive committee of the state or guaranteed banks, proposes to appoint a committee of about three persons, to meet with a committee of our number for the purpose of going over the assets of the Farmers State Bank, closed, and determining the fair value of such assets. "B. A corporation, trust company, or what is known as a Massachusetts Trust, is to be organized, possibly using the name of the Farmers Liquidation Loan Company. The capital of such company shall be approximately the amount of the value of such assets. Every depositor is then to be requested to take out stock in such company to the amount of approximately 40% to 60% of their deposit. The company then is to purchase the assets of the bank at fair value. The purchase price of the assets will be paid to the receiver and the receiver will promptly pay the amount (Continued on Page 6)"