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A Kansas Bank Suspends. MARION, Kan., Aug. 16.-The First National bank of this place suepended late this afternoon. Bank Examiner Latimer took charge.
First National Bank (Marion, KS)
Episode Information
- Episode UID
301801124- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
-
30180national - Charter Number
- 3018
- Start Date
- August 16, 1893
- Location
- Marion, Kansas (38.348, -97.017)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
1fc2c89fa8a2e86b
Response Measures
None
Receivership Details
- Depositor recovery rate
- 78.7%
- Date receivership started
- 1893-08-22
- OCC cause of failure
- Losses
- Share of assets assessed as good
- 54.7%
- Share of assets assessed as doubtful
- 40.2%
- Share of assets assessed as worthless
- 5.1%
Description
Suspension followed by appointment of a receiver; president E.M. Donaldson charged with embezzlement.
Events (4)
1.
July 28, 1883
Chartered
- Source
- historical_nic
2.
August 16, 1893
Suspension
- Cause
- Government Action
- Cause Details
- Bank Examiner Latimer took charge after discovery of large shortages and alleged embezzlement by president E.M. Donaldson.
- Newspaper Excerpt
- The First National bank of this place suspended late this afternoon. Bank Examiner Latimer took charge.
- Source
- newspapers
3.
August 22, 1893
Receivership
- Source
- historical_nic
4.
August 22, 1893
Receivership
- Newspaper Excerpt
- The controller of the currency today appointed N. C. Morris receiver of the First National Bank of Marion, Kan.
- Source
- newspapers
Newspaper Articles (19)
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A Kansas Bank Suspends. MARION, Kan., Aug. 16-The First National bank of this place suspended late this afternoon. Bank Examiner Latimer took charge.
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DEBTS KILLED IT. Why the Northern Pacific Went Down. COULD NOT MEET LOANS. Then Its Consols Declined in Price and the Company Went to the Wall. Special to THE MORNING CALL. NEW YORK, Aug. 16.-Little news is obtainable about the affairs of the Northern Pacific. A representative of the company said to-day, in discussing the cause for the appointment of receivers. that there was nothing to add to the published statement that there was a falling off in receipts and consequent inability to pay the interest about to fall due on the floating debt. All this had nothing whatever to do with the application. Another person, however, who said he was familiar with the company's affairs, said: "While it is true a falling off in the receipts was indirectly the cause for a receivership, yet the immediate cause was a drop of 5 per cent in the quoted price of the company's consols and the inability to respond to the call for more margin on one of its loans not due until September 1. The failure, however, to put up the required margin made the loan at once due and payable. There were two of these loans." "The one owing to Spfyer & Co., has been adjusted. Theother, which exceeded $2,000,000, was owing to Kuhn, Loeb & Co. They called in that loan before the appointmentof the receiver." At the office of Kuhn, Loeb & Co. it was said the $2,000,000 Northern Pacific loan had not been included in the subscription which had beed-arranged, but declined to give any particulars or state who held the collateral, or whether they would be put upon the market. Applications for the appointment of receivers have been granted in St. Paul, Portland, Helena, Olympia, Milwaukee and New York. George S. Jones, vice-president of the North American, was seen and asked as to the cause for the great decline in the price of stock, but declined to discuss the matter. "I have nothing to say on the subject," he said, "and I warn you to be careful what you say about the company." Subsequently he added it was not to be inferred from the low price of the stock that the company is going into the hands of a receiver. Charles O. Wetmore, president of the North American Company, says there is no truth in the report of a receivership for his company. It is rumored in Wall street to-day that a well-known banking firm is making up a syndicate to take Union Pacific bonds falling due September 1 that are not extended by the present holders. The banking firm alluded to, which has an international reputation and is very close to the Uniou Paci fic management, will succeed it is believed in organizing the proposed syndicate. LONDON, Aug. 16.-Twenty-five thousand pounds in gold was withdrawn from the Bank of England for the United States to-day. WASHINGTON, Aug. 16. Efforts are being made by the stockholders to have the German National Bank of Denver resume. MARION, Kans., Aug. 16.-The First National Bank of this placesuspended late this afternoon. Bank Examiner Latimer took charge. DELAND, Fla., Aug. 16.-The Volusa County Bank closed to-day, owing to inability to realize on its paper. The liabilities are $136,000 and assets $190,000. TROY. N. Y., Aug. 16.-The Sheriff this afternoon took posséssion of the works at
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AT MARION, KAN. I MARION, Kan,, Aug. 16-The First National bank of this place suspended this afternoon. I
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TELEGRAPHIC BREVITIES. A large batch of recess appointments was sent to the Senate yesterday. The copper mines at Copperopolis, Cal., closed down, throwing 300 men out of employment. The Chicago, Burlington & Quincy has declared a dividend of 1½ per cent., payable Sept. 15. The First National bank of Marion, Kan., has suspended. Bank Examiner Latimer took charge. Efforts are being made by the stockholders to have the German National bank of Denver to resume. Twenty-five thousands pounds in gold were withdrawn from the bank of England for the United States yesterday. The Volusio county, Fla., bank has closed owing to the inability to realize on paper. Liabilities, $136,000; assets, $190,000. Senator Frye yesterday reintroduced in the Senate his bill of last Congress providing for a refunding of the Pacific railroad debt. The Union National bank of Racine, Wis., has closed its doors. The capital is $150,000; deposits $243,000. The Commercial and Saving bank also posted & notice.
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THE BUSINESS WORLD. The Hig Oliver Steal Company in Tromble -Denver Banks Resume. PITTSBURG, Aug, 17.-The Oliver Iron and Steel company, one of the largest concerns in this country, went into the hands of a receiver to-day. on the application of the National Tube Works company, of New Jersey, and E. Converse. of New York. The capital of the company is $1,600,000, the apparent indebtedness $600,000, bonded indebtedness $585,000. H. W. Oliver was appointed receiver. DENVER. Aug. 17.-The Union National bank, which suspended Julv 1, resumed this morning. The National Bank of Commerce reopened for business to-day. with almost 100 per cent of its liabilities on hand, Three more of the suspended banks are expected to open by Sept. 1. DUBUQUE, Iowa. Aug. 17.-The First National bank. one of oldest institutions in the city, canital $200.000, usended this morning. The last statement showed deposits of $520,980. Failure is due to withdrawals. NEW YORK, Ang. 17.-T. J. Davis & Co., wholesale dry goods, of this city and Chicago. assigned to-day. Liabilities and assets about $200,000 each. Stringency of the money market caused the failure. CINOINNATI. Aug. 17. -The Standard Wagon company, the largest company of its kind in the United States. assigned this morning to Grant H. Burrows. Assets $1,200,000. liabilities $700,000. MEADVILLE, Pa., Aug. 7.-Considerable excitement was occasioned to-day by the closing of the Farmers Co-operativo bank. Cashier Dean said the suspension is only temporary. HUNTINGTON, Pa.. Aug. 17.-The National Bank of South Pennsylvania, at Wyndham, Bedford county, closed its doors to-day. Liabilities estimated at $350,000, assets at $450,000. MARION, Kan.. Aug. 17.-The First National bank of this place suspended late this afternoon.
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SHORT IN THEIR ACCOUNTS. RETURN OF THREE MEN ANXIOUSLY AWAITED. An Iowa Bank Wrecker Gets Away With About Six Hundred Thousand Dollars. Special to the RECORD-UNION. KANSAS CITY, Aug. 21.-Henry Woolmer, attorney for Special Bank Examiner Latimer, acting as special agent of the First National Bank of Marion. Kansas, filed attachments to-day against George D. Galbraith, Special Bank Examiner in charge of the National Bank of Kansas City, the National Bank of Commerce and the American National Bank, by E. M. Donaldson, President of the First National Bank of Marion, Kansas. It is charged that Donaldson secured loans from the bank of which he was President for personal use, without adequate security. He has since disappeared, and the bank is short $23,013. James Doughty of Sioux City arrived to-day, and after a conference with Attorney Wallman and Bank Examiner Latimer, swore out a warrant for Donaldson's ..rrest for alleged embezzlement, misappropriation and forgery. The facts told by Mr. Doughty made Donaldson's embezzlement from the Marion Bank appear simply a drop in the bucket compared with the ex-banker's transactions in Iowa. Donaldson, in the eighties, besides owning a majority of the stock of the First National Bank of Marion, Kansas, controlled two State banks. His transactions, through them, were not successful, and in 1886 he closed out two small banks, and, securing considerable money from the Marion Bank, started the Union Trust Company of Sioux City, Iowa. As feeders for it he established a chain of banks in Iowa, eleven in number. His ventures, however, did not develop according to expectations, and from subsequent events it became apparent that he was determined to realize what cash he could and leave the country. Accordingly, last winter he opened a branch office hereand disposed of a large amount of securities and assets of the town concern. The Union Trust Company was among the first financial institutions to go under when the financial difficulties began last spring. With it went down the eleven lowa banks. Doughty, who was interested in the Union Trust Company, says an examination of that company's affairs and the affairs of the eleven Iowa banks shows a deficit of at least $600,000. LEFT FOR PARTS UNKNOWN, OGDEN, Aug. 21.-To-day a warrant was issued for the arrest of Alfred H. Nelson, formerly Secretary and Manager of the Ogden Buildings and Savings Association of this city, for embezzlement of funds of the company. His estimated shortage is about $13,000. Nelson and family left for parts unknown early this morning. FATHER AND SONS ARRESTED. INDIANAPOLIS, Aug. 21.-This afternoon Theodore P. Haughey, President of the wrecked Indianapolis National Bank, was arrested at his home near this city, on a warrant sworn out by Receiver Hawkins, charging him with embezzlement and misapplication of the funds and credits of the bank. Simultaneously with the arrest of Haughey. Federal officers arrested his son, Schuyler C. Haughey, President of the Indianapolis Curled Hair Works and Indianapolis Glue Works, and later Francis A. Coffin, President of the Indianapolis Cabinet Company; Percival Coffin, Vice-President of the company, and Albert T. Reed, Treasurer of the same concern. Young Haughey, Coffin and Reed are charged with having aided and abetted the elder Haughey in embezzlements and misappropriation of credits charged against him. The arrested men were taken before United States Commissioner Van Buren, who released them on bonds
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GONE WITH $600,000. E. M. Donaldson, a Western Bank Promoter, Is Mysteriously Missing. KANSAS CITY, Aug. 21.-E. M. Donaldson of Marion. Kan., is missing. He was President of the Union Trust Company of Sioux City. Ia., which failed on June 28, and of the First Nantional Bank of Marion. which was closed by a special examiner last week. Developments to-day show that Donaldson has fled the country and is probably in Mexico, a defaulter to the amount of at least $600,000. He is believed to have most of this money with him. The shortage at the Marion Bank is only $23,000. Most of Donaldson's victims are Eastern capitalists and the people of western Iowa. Donaldson was a school teacher at Marion. and during the real estate boom from 1885 to 1888 made considerable money. He removed to Iowa in 1888 and organized the Union Trust Company. Its stockholders were Eastern capitalists who had been holders of stock in the Kansas concerns and had it transferred. The main object of the concern was to loan money to cattlemen. Donaldson established a chain of eleven banks at different towns in Iowa. He was President of each, and the sole head of the trust company. Assignee Doty of the suspended concerns was here to-day and says that in all the banks and the trust company not a dollar's worth of assets has been found. He says Donaldson ran off with at least $600,000. Donaldson opened an office here last November and until June was engaged in getting rid of the assets of the Iowa concern. He also raised tens of thousands of dollars in the East on paper purporting to be secured by herds of cattle which never existed. It is also charged that he forged notes. and on this charge a warrant has been issued.
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Receiver Appointed. The controller of the currency today apnointed N. C. Morris receiver of the First National 4a Bank of Marion, Kan.
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HE RANKS WITH IVES. A Young Kansas "Financier" a De. faulter to the Amount of $600,000. KANSAS CITY, Aug. 23.-Kansas has produced a young Napoleon of finance, who ranks up well with Ives, in the person of E. M. Donaldson, banker and speculator of Marion. He was president of the Union Trust company of Sioux City, Ia., which failed June 28, and of the First National bank of Marion, which was closed by a special examiner last week. Developments show that Donaldson has fled the country and is probably in Mexico-a defaulter to the amount of at least $600,000. He is believed to have most of this money with him. The shortage at the Marion bank is only $23,000, the bulk of Donaldson's ill-gotten gains having come from Eastern capitalists and the people of Western Iowa. Donaldson was a school teacher at Marion, but during the real estate boom from 1885 to 1888 he branched out in real estate and made considerable money. In 1887 he organized a chain of banks in Kansas, but they All Went to the Wall save the Marion institution. When the bottom dropped out of the boom he removed to Iowa and in 1888 organized the Union Trust company. Its stockholders were Eastern capitalists who were holders of stock in the Kansas concerns and had it transferred, and Iowa people were roped in by the showing made. The main object was to loan money to cattlemen. Donaldson established a chain of 11 banks at different towns in Iowa. He was president of each and sole Western heaad of the trust company. Assignee Doty of the suspended concerns says that in ail the banks and the trust company not a dollar's worth of assets has been found. He says Donaldson got away with $600.000. Donaldson opened an office here last November and until June was engaged in getting rid of the assets of the Iowa concerns. He also raised 'tens of thousands of dollars in the East purporting to be secured by herds of cattle which never existed. Some Favorite Practices. It is also charged that he forged note: and on this charge a warrant has been issued and an officer has been put on his trail. Donaldson left Marion the day the bank examiner put in an ap pearance and is supposed to be in Mex ico. Examiner Lattimer has discovered much crookedness on the part of Don aldson. One of his favorite practices was to obtain notes for considerable amounts from persons who had abso lutely no property. He would pay n them a few dollars for signing the notes, cash them at the bank and pu the money in his pocket. He is only 38 years old.
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Tronbles of the Banks, SAN MARCOS. Tex., Aug. 22.-The First National Bank suspended payment yesterday by order of the directors. Notice is given that the depositors will be paid in full as soon as the bank can realize on paper. of which there is more than two and one-half times the amount required to meet payment. WASHINGTON, Aug. 22-Comptroller Eckels to-day appointed N. F. Morris receiver of the First National Bank of Marion. Kan. LINCOLN. Nob., Aug. 22.-There was filed in the Supreme Court yesterday the case of Nebraska agt. ex-State Treasurer J. E. Hill et al. a case wherein Mr. Hill and his bondsmen are sued for $246,000, sunk in the wrecked Capitol National Bank. CHICAGO, Aug. 22.-Comptroller Eckels has directed Receiver Hopkins to declare a dividend of 50 per cent. to the depositors of the Chemical National Bank. payable on Sept. 30. JERSEYVILLE, ill., Aug. 22.-M. E. Bagley. private banker here. failed to open the bank doors this morning. The following notice was posted on the door: This bank IS closed on account of not being able to make collections to meet my obligations AB they mature. I have assigned all my property to Jett A. Kirby, to protect and pay all my depositors and creditors. My assets largely exceed my llabilities, and creditors will be paid in full." Liabilities are $110,000: assets. $124,000. WATERLOO. Ia., Aug. 22.-The private bank of J. T. Knapp & Co. of Cedar Falls. Ia. failed to open its doors this morning. and an assignment of the affairs of the institution was made later. H. H. Clay of Cedar Falls. assignee of the defunct First National Bank of Cedar Falls. is the assignee.
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STOLE HEAPS OF MONEY. Flight of E. M. Donaldson, Whose Career Is Very Checkered. KANSAS CITY, Mo., Aug. 22.-From school-teacher to Napoleon of finance and thence to a defaulter is the story of E. M. Donaldson, late of this city, secretary and manager of the Union Trust company of Sioux City, la., president of the First national bank of Marion, Kan., and of eleven Iowa banks, who fled Tuesday, presumably sto Mexico, and left behind him a record as an artistic looter of banks that is seldom surpassed All of the institutions he was connected with are in receivers hands. He is supposed to have taken with him about $800,000 of other people's money. From the Union Trust company alone he took $600,000. From the Kansas and Iowa banks $200,000 is a conservative estimate of his stealings. Forgery is one of the many charges against him, and a deputy marshal is now on his trail in Mexico armed with a warrant for his arrest for erasing his indorsement to a note for $5,000.
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THE LATFST. THE world's -fair directory has requested Theodore Thomas to resume charge of the music. THE president has issued his proclamation opening the Cherokee strip to settlement at the hour of 12 o'clock noon, central standard time, Saturday, September 16. THE American Bankers' association has issued a circular calling upon bankers to sign a petition for repeal of the Sherman law and to make energetic effort to influence congress. WALTER SANGER, the bicycle champion, has been expelled from the Milwaukee club for refusing to appear in a race after being advertised. DIXON, the colored pugilist so often successful in light-weight contests, was defeated by Plimmer in a late contest at Madison square garden, New York. JAPAN has made a demand upon the provisional government of Hawaii for suffrage for the Japanese. VOORHEES occupied the attention of the senate on the 22d with a speech defending the administration on the silver question. The discussion continued in the house, at times becoming monotonous. THERE is a report that China will not retaliate for the Geary law until after the next session of congress THE national encampment of the Farmers' alliance opened at Mt. Gretna, Pa., on the 22nd with 10,000 present. An address was delivered by Hon. Ben Terrell, of Texas. CROP bulletins of Illinois and Iowa say that recent rains have been greatly beneficial to corn, though more is needed yet, especially in portions of Illinois. Apples and potatoes will be short in Illinois. AT Caldwell, Id., the house of a family named Brookshire, lately from Missouri, was burned. Two children aged 4 and 2 years were burned to death. THE private bank of J. N. Knapp & Co., of Cedar Falls, Ia., failed to open its doors. THREE men were killed and several seriously hurt by the murderous folly of a militiaman in a track trouble at Gilberton, Pa. E.M. DONALDSON, president of the Marion (Kan.) First national bank, also of a dozen lowa banks and secretary of the Union Trust Co., Sioux City, all suspended institutions, is a fugitive, charged with forgery and embezzlement of over $600,000. THE railroads of South Carolina have won a victory over the dispensary law of that state.
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BANKERS UNDER A CLOUD. One Gives Himself Up and Two Others Are Fugitives. CITY OF MEXICO. Aug. 30.-E M. Donaldson. President of the defunct First National Bank of Marion. Kan.. and Secretary of the suspended Union Trust Company of Sioux City, Ia. who is alleged to be a defaulter to the amount of $600.000, was in this city last week. He left on Sunday and his present whereabouts are unknown. MILWAUKEE. Aug. 30.-T. Day. President of the Plankinton Bank. who disappeared soon after the bank failed. and who has since been indicted for illegal banking and embezzlement. appeared in the Municipal Court this morning and pleaded not guilty. He was released on $15,000 bail. Mr. Day has spent most of his time at a Michigan health resort since he left Milwaukee. CHICAGO. Aug. 30.-Adam W. Jaeger. assignee for Conrad L. Niehoff. the insolvent banker. made a report in the County Court to-day which shows that the banker's cash account is short to the extent of $109.114. The assignee also says that $79,114 has been embezzled by Niehoff's sons, Frank J. and Otto E.. both of whom. together with their father. have left for parts unknown. Jaeger says that the books of the institution are in a bad condition, unposted. improperly and erroneously kept with footings forced. assets increased and liabilities decreased. Jaeger asked Judge Scales to accept his resignation as assignee.
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THE WEST. WALTER SANGER, the bicycle champion, has been expelled from the Milwaukee club for refusing to appear in a race after being advertised. A REPORT has it that Treasurer McCurtain, of the Choctaw nation, has failed with $500,000 of the lease money. E. M. DONALDSON, president of the Marion (Kan.) First national bank, also of a dozen Iowa banks and secretary of the Union Trust Co., Sioux City, all suspended institutions, is a fugitive, charged with forgery and embezzlement of over $600,000. AT Caldwell, Id., the house of a family named Brookshire, lately from Missouri, was burned. Two children aged & and 2 years were burned to death. THE world's fair directory has requested Theodore Thomas to resume charge of the music. IT is said at Denver, Col., that Will R. Perry gutted the county funds to the amount of $22,000 before he absconded.
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Donaldson in Mexico. CITY OF MEXICO, Aug. 31.-M. Donaldson, president of the defunct First national bank of Marion, Kan., and secretary of the suspended Union Trust Co. of Sioux City, Ia., who is alleged to be a defaulter to the amount of $600,000, was in this city last week. He left on Sunday, and his present whereabouts are known,
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A Kausas Man Traveling. CITY OF MEXICO, September 1.-M. Donaldson, president of the defunct First National bank of Marion. Kansas, and secretary of the suspended Union Trust company of Sioux City, Ia., who is alleged to be a defaulter to the amount of $60,000, was in this city last week. He left Sunday and his present whereabouts are unknown.
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WILL LOSE THE FARM. Judge Foster Decides a MortgageCase From Marion County. Judge Foster made a decision today by which Marion Smith, a Marion county man, will lose his farm, and he also decided an important point concerning the homestead exemption law. In 1893 Smith gave the First National bank of Marion a chattel mortgage on some cattle for $1,800 and a short time afterward the bank failed. Smith sold his cattle and bought a farm with the money. Eugene Hagan and H. S. Martin asked that the farm be made subject to the mortgage in behalf of the receiver of the bank. Smith's attorney claimed that as the farm was now a homestead it could not be taken for the debt. Judge Foster held that since the money received for the sale of the cattle had all been put in the farm it would be held liable for the debt of the bank.
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SUIT BY MARION BANK. It Seeks to Recover Land Valued at $50,000. W. P. Morris, receiver of the First National bank of Marion, has commenced suit in the federal court to recover for the bank a large tract of land in Marion county which he charges was fraudulently transferred to E. M. Donaldson, the defaulting president of the bank. The value of the land is placed at $50,000. There are a large number of defendants named in the suit, J. S. Dean being the principal one.