gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
39beba387a2dacbe
Response Measures
None
Description
Closed by state bank commissioner; subsequent receiver appointed and officers convicted of embezzlement.
Events (3)
1.January 20, 1921Suspension
Cause
Government Action
Cause Details
Closed by state bank commissioner due to inability to realize on paper, low cash reserve, and heavy loans on local securities; insolvency linked to embezzlement and misappropriation revealed later.
Newspaper Excerpt
The Peoples State bank of this city closed its doors this morning. State Bank Commissioner Walter Wilson is in charge.
Source
newspapers
2.January 26, 1921Other
Newspaper Excerpt
Saturday a forged note of $1,500 showed up for collection. That was the beginning of a series of revelations that ended in confession of guilt by embezzlement and misappropriation of funds. ... Two officers of the defunct bank are now serving terms in the state penitentiary.
Source
newspapers
3.February 1, 1921Receivership
Newspaper Excerpt
Frank Organ ... was today appointed by Walter E. Wilson, state bank commissioner, as receiver for the People's State bank of Coffeyville ... to take charge of the bank affairs February 1.
Source
newspapers
Newspaper Articles (12)
1.January 20, 1921The Topeka State JournalTopeka, KS
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Article Text
Peoples State of Coffeyville Closed by Walter Wilson. Could Not Realize on Paper Due to Depression. Coffeyville, Kan., Jan. 20. 1 -The People's State bank of this city closed its doors this morning. State Bank Commissioner Walter Wilson is in charge. Mr. Wilson issued a statement saying he had not delved deep enough into the bank's affairs to give an estimate of the probable loss. He said the inability of the bank management to realize on its paper account of the business depression caused him to close its doors as the bank's cash reserve was too low to permit of its continuing in business. He said a receiver would be named to take over the bank's affairs. In the last statement published the People's bank had deposits of $650,000 and published assets totaling $710,000. A. S. Newman is president of the bank and D. M. Cahill is cashier, both men of highest integrity. Local conditions in the Coffeyville oil field and trouble of the bank in handling of its securities was responsible for closing of the institution, according to reports from the state banking department this afternoon. Based on partial examinations, there was a belief that it might not be necessary to close the doors of the insti tution except temporarily. No steps have as yet been taken looking to appointment of a receiver, altho an examiner is in charge. Walter E. Wilson. state bank commissioner, is in Coffeyville today. W. W. Bowman, secretary of the Kansas Bankers' association, will go to Coffeyville tonight and will confer with Wilson and his assistants. Heavy loans on local securities which encountered big market slumps are declared to have caused the bank trouble. When markets broke borrowers were in some instances unable to clean up their paper. So far as reports sent to Topeka state, no charges of irregularities or defalcations by the Coffeyville banking officials have been made.
2.January 21, 1921The Morning Tulsa Daily WorldTulsa, OK
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Article Text
COFFEYVILLE BANK CLOSES Kansas State Bank Commissioner in Charge of Institution. COFFEYVILLE, Kan, Jan. 20. The Peoples State bank of this city closed its doors this morning. State Bank Commissioner Walter Wilson is in charge. Mr. Wilson issued a statement saying he had not delved deep enough into the bank's affairs to give an estimate of the probable loss. He said the inability of the bank management to realize on its paper on account of business depression caused him to close its doors as the bank's cash reserve was too low to permit of its continuing in business. He said a receiver would be named to take over the bank's affairs. In the last statement published the bank had deposits of $650,000 and published assets totaling $710,000. Dr. W. D. Ownby, Osteopathic Physician, 310 Daniel Bldg. Osage 1344.-Advt.
3.January 24, 1921The Topeka State JournalTopeka, KS
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Article Text
BANK SMASH IS SERIOUS Coffeyville Failure May Mean Loss to Many Patrons. Failure of the People's State bank of Coffeyville may prove one of the biggest bank smashes. in Kansas in several years, according to rumors today in the state house. Appointment of a receiver to take over affairs of the defunct bank may be made in a few days, it was reported. Several thousand patrons of the Coffeyville, bank are due for losses, according to statements. There is also a report that several large corporations which borrowed heavily from the bank's funds, may encounter embarrassment in meeting their obligations. No definite statement regarding detailed conditions of the Coffeyville institution has been made thru the state banking department. Walter E. Wilson state bank commissioner, spent the week-end in Topeka. He returned to Coffeyville today. The bank has been closed and is in charge of the state department.
4.January 26, 1921The Topeka State JournalTopeka, KS
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Article Text
NOT UNDER GUARANTY LAW Coffeyville Bank Did Not Take Advantage of Kansas Act. The People's State Bank of Coffeyville is not under the state bank guaranty law, according to announcement from the state banking department. The bank was examined four times during the last year, but the failing conditions of the institution was not discovered until recently. No report has been given as to the exact losses of the Coffeyville institution. Examiners are now checking the books of the bank. A receiver will probably be appointed in a few days.
5.January 26, 1921The Topeka State JournalTopeka, KS
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Article Text
THEY'RE IN MINES Coffeyville Men Were Bankers Just Week Ago. Today They're Facing ThirtyYear Stay in Leavenworth. Lansing, Kan., Jan. 26.-Bankers in good standing a week ago-prischers today with prospects of mining coal for thirty years. That was the transition of Allen S. Newman, president of the defunct People's State Bank of Coffeyville, and Rufus Newman, brother and vice president. The bank was closed last Thursday. Saturday a forged note of $1,500 showed up for collection. That was the beginning of a series of revelations that ended in confession of guilt by embezzlement and misappropriation of funds. Before the men pleaded guilty, they assigned all of their property in trust for their creditors.
6.January 27, 1921The Topeka State JournalTopeka, KS
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Article Text
ORGAN IS BANK RECEIVER To Take Charge of Coffeyville Bank Affairs February 1. Frank Organ, for the last three years head of the blue sky department and for six years assistant state auditor, was today appointed by Walter E. Wilson, state bank commissioner, as receiver for the People's State bank of Coffeyville, which failed about ten days ago. Dallas Knapp, of Coffeyville, representative from Montgomery county, was appointed as attorney for the receiver. Knapp will resign his present position February 1 to take charge of the affairs of the bank.
7.March 10, 1921The Topeka State JournalTopeka, KS
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Article Text
CLAIMS PREFERRED PLACE. Coffeyville Man Declares Defunct Bank Did Not Own Forfeit Bond. Coffeyville, Kan., March 10.-The question whether a sum of money place in a bank as a forfeit in case of failure to carry out a contract should be considered the bank's property, has been raised in the suit brought by C. H. Lamb.against the receiver of the defunct People's State bank of this city. Lamb recites in his peition that the money was placed in the bank, to be paid to him in the event an oil well contractor failed to comply with certain drilling and other obligations in an oil deal. He demands that the full $500 be delivered to him.
8.April 5, 1921The Topeka State JournalTopeka, KS
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Article Text
TAXES LOST WITH BANK? Coffeyville Failure Involves $52,000 Belonging to Taxpayers. Taxes amounting to $52,000 were in the People's State bank of Coffeyville when that institution closed its doors. Property owners who had paid the money to an unauthorized agency today sought relief in the supreme court. Mandamus proceedings to compel the Montgomery county treasurer to issue receipts for the money were argued before the court this afternoon. Last fall the Weaver Realty company of Coffeyville collected large sums in taxes from persons in southern Montgomery county. The money was deposited to the credit of the county treasurer, altho neither the collections nor making of deposits had been authorized. Then the real estate agency sent to the treasurer deposit tickets for $52,000. When the county treasurer attempted to withdraw the money from the Coffeyville bank his three drafts were protested. At the same time the bank notified the state department that it was insolvent and turned the institution over to the bank commissioner. Two officers of the defunct bank are now serving terms in the state penitentiary. But the property owners who paid their taxes to the Weaver Realty company have been unable to secure tax receipts. Mandamus proceedings to compel issuance of the receipts were argued this afternoon. Unless the writ is issued the taxpayers must make a second payment.
9.May 25, 1921The Topeka State JournalTopeka, KS
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ARCH L. BELL IS NAMED Great Bend Man Appointed Special Deputy Bank Commissioner. Frank H. Foster, state bank commissioner, today announced the appointment of Arch L. Bell of Great Bend, as special deputy bank commissioner. He will be in charge of the blue sky department in the state bank commissioner's office. Bell succeeds Frank Organ, who was recently appointed receiver for the Peoples State bank of Coffeyville. The appointment of Bell is effective immediately.
10.August 26, 1921The Topeka State JournalTopeka, KS
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FRANK ORGAN RESIGNS Former Topekan Quits as Receiver Coffeyville Bank. Frank Organ, receiver for the People's State bank of Coffeyville, today announced his resignation. He was appointed by Walter E. Wilson during his term as state bank examiner. Organ was head of the state blue sky department for several years. He was formerly assistant state auditor. No action has been taken regarding appointment of Organ's successor. F. H. Foster, state bank commissioner, expects to go to Coffeyville Saturday to arrange for selection of a new receiver.
11.November 18, 1921The Topeka State JournalTopeka, KS
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ORGAN WILL LEAVE KANSAS Former Assistant State Auditor to Move to Minneapolis, Minn. Frank Organ of Coffeyville, former assistant state auditor and later in charge of the blue sky department in the state bank commissioner's office, will move to Minneapolis, Minn., next month. He will be associated with a large trust company. Organ came to Topeka in 1911 from Howard, Elk county, where he was appointed assistant state auditor under W. E. Davis. He had previously served as county attorney of Elk county. In 1916 Organ was a candidate for the Republican nomination for state auditor and was defeated by Fred W. Knapp of Beloit by a few votes. Organ later was placed in charge of the state blue sky department under Walter E. Wilson, state bank commissioner. Nearly a year ago Organ was named as receiver for the People's State bank of Coffeyville. He has since made his home in that city. He is widely known in state politics and has been active in public affairs during the last fifteen years.
12.September 14, 1923Lexington Herald-LeaderLexington, KY
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In several cases the accused bank officials are missing. Only five of the accused bankers have been sent to prison. Five are awaiting trial. One man killed himself.
Here is a list of Kansas State banks which have been closed by the State in the last five years because of alleged embezzlement of funds:
Kansas State Bank, Salina; H. J. Lefferdink, cashier, missing.
Aulne State Bank, Aulne; Volney Johnson, cashier, sent to prison.
Homewood State Bank, Homewood; cashier missing.
People's State Bank, Coffeyville; A. Newman and R. P. Newman in prison.
Banking Trust Co., Kansas City; H. C. Bedel in prison.
Lake State Bank, cashier missing.
Citizen's State Bank, Manhattan; president awaiting trial.
Farmers' State Bank, McCune;
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.
