Merchants National Bank (Topeka, KS)

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Episode Information

Episode UID
390901267
Episode Type
Run Only
Bank Type
national
Bank ID
39090 national
Charter Number
3909
Start Date
July 3, 1905
Location
Topeka, Kansas (39.048, -95.678)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7f23c0368c09acb5

Response Measures

Accommodated withdrawals

Description

Only small withdrawals reported; bank paid depositors who requested funds.

Events (2)
1. July 14, 1888 Chartered
Source
historical_nic
2. July 3, 1905 Run
Cause
Local Banks
Cause Details
Run triggered by failure/closure of the First National Bank of Topeka and resulting local panic; withdrawals were small and depositors who requested funds were paid.
Measures
Paid depositors who requested funds; displayed reserves/paid withdrawals to calm panic.
Newspaper Excerpt
Other runs of a lesser degree were started on the Merchants' National Bank.
Source
newspapers

Newspaper Articles (10)
1. July 4, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, July 4, 1905

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Article Text

IT LOANED TOO MUCH BIG BANK FAILURE OCCURS AT TOPEKA, KAS. The First National Holds Papers of C. J. Devlin, Principal Stockholder, for $1,000,000-WIII Probably Pay Out. Topeka, July 3.-No definite statement was obtained up to a late hour today regarding the condition of the First National Bank, controlled by C. J. Devlin, the big coal mine owner, which closed its doors this morning. Colonel W. H. Rossington, vice-president of the bank, locked the institution's books in the vault to await the arrival of J. T Bradley, the national bank examiner, whom the comptroller had appointed receiver of the failed bank, and he would only say: "The bank's trouble has not been caused by dishonesty on the part of any one, but by lending too largely to one borrower. There has been no stealing." This borrower is, of course, Mr. Devlin, and the bank is said to hold the capitalist's paper to the amount of a million dollars. Mr. Devlin, whose sudden illness brought about the tangle in the big coal mining and railroad properties, valued, It is estimated, at close to seven millions of dolars, is still under the care of a physician and no statement could be secured from him. All that came from his home during the day or could be secured from other sources, was that the stricken coal operator had turned over to the bank nearly $700,000 in life insurance and about the same amount in Topeka real estate. Business assistants of Mr. Devlin gave it as their opinion that, if properly handled, this would allow the bank to pay out. Elmer Ames, bank examiner for the northern district of Kansas, who took charge pending the arrival of Receiver Bradley, would say nothing additional that would throw any light on the subject. Aside from the temporary flurry that the failure of the First National Bank caused upon the other banks of the city, probably the most interesting phase of the situation was the statement of State Treasurer Kelly that the bank held $547,000 of the State's funds and the knowledge that Mr. Devlin was one of three of Mr. Kelly's bondsmen. The statement was made that Treasurer Kelly had exceeded his authority in placing more of the State's money in the bank than the law allowed, but Mr. Kelly declined to discuss the matter at this time. Following the announcement of the failure a lively run was started on the Central National Bank and before closing time today it was known that something more than $100,000 had been withdrawn from this institution. The Central National also held some of Devlin's paper, but he likewise owns fifteen twenty-eighths of the capital stock of $250,000 of this institution. But it developed that the Central National Bank held but little of Devlin's paper and when its officers displayed $700,000 in cash and made every effort to pay the depositors as fast as they made demands, the excitement died down and at closing time only a few small depositors remained at the teller's window. Other runs of a lesser degree were started on the State Savings Bank, the Bank of Topeka and on the Merchants' National Bank. At none of the banks, however, was the demand for withdrawal great, only the small depositors taking their money and there was little excitement during the day.

2. July 4, 1905 New-York Tribune New York, NY
Article from New-York Tribune, July 4, 1905

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TOPEKA BANK SHUTS DOOR LARGE LOANS TO ONE MAN. C. J. Devlin, One of the Wealthiest Men in Kansas City, Involved. Topeka, Kan., July 3.-The First National Bank of Topeka, of which C. J. Devlin is the principal stockholder, failed to open its doors to-day. The government officials are making an examination of the bank's affairs, but gave out no statement to-day. On the door of the bank appeared this notice: This bank is closed by orders. The Controller of the Currency has been communicated with and will send an examiner, who will make a statement. W. H. ROSSINGTON, Vice-President. No definite statement was obtainable to-day regarding the condition of the First National Bank, controlled by Charles J. Devlin, a wealthy coal mine owner, which closed its doors this morning. Colonel W. H. Rossington, vice-president of the bank. locked the institution's books in the vault to await the arrival of J. T. Bradley, national bank examiner, whom the Controller had appointed receiver of the failed bank. Colonel Rossington would only say: "The bank's trouble has not been caused by dishonesty on the part of any one, but by lending too largely to one borrower. There has been no stealing." The borrower, it is said, is Mr. Devlin, and the bank is said to hold the capitalist's paper to the amount of $1,000,000. Mr. Devlin, whose sudden illness brought about the tangle in the big coal minrailroad valued, at close to $7,000,000. is still under care ing and properties, it the is estimated, from of a physician, and no statement can be obtained him. All that came from his home to-day was that coal had over in life insurance the bank stricken nearly $700,000 operator turned and about to the the same amount in Topeka real estate. Business associates of Mr. Devlin expressed their opinion that if properly handled this would allow the bank to pay out. Aside from the temporary flurry that the failure of the First National Bank caused on the other banks of the city, the most interesting phase of the situation was the statement of the State Treasurer, T. T. Kelly, that the bank held $547,000 of the State's funds. Mr. Devlin was one of the Mr. Kelly's bondsmen. Following the announcement of the failure, a lively but not disastrous run was started on the Central National Bank. Other runs of a lesser degree were started on the State Savings Bank, the Bank of Topeka and on the Merchants' National Bank. At none of these banks, however, was the demand for withdrawals great. Following the closing of the First National Bank there was a slight run on the Central National Bank, in which Mr. Devlin also is a large stockholder, and there were small runs later in the day on the Merchants' National Bank, the Bank of Topeka and the State Savings Bank. At each of these institutions all depositors who requested their money were paid and confidence was expressed in the ability to meet any demands of the depositors. Cash to the amount of $300,000 was deposited in the Central National to offset the run. J. W. Gleed stated that $700,000 worth of real estate -$300,000 unencumbered Topeka property, the other $400,000 in coal lands in Southeastern Kansas-had been turned in by Mr. Devlin, together with $700,000 life insurance. Mr. Gleed asserted that the Central National was in a perfectly solvent condition. He further stated that nothing more would be done with the Missouri organization of the Devlin property until after the report of the Controller here. In the First National Bank the State of Kansas has over $500,000 in deposits, the city of Topeka. $39,000, and the county of Shawnee about $30,000. Mr. Devlin, who has been under the care of a physician, was unable to leave his home to-day. He was up and around, however. He was in the best of spirits, and in reply to questions, said that he expected to be able to go to the bank in another week.

3. July 4, 1905 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, July 4, 1905

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Article Text

FAILURE OF THE TOPEKA FIRST NATIONAL BANK NO DEFINITE STATEMENT AS TO ITS CONDITION. Institution Controlled by Charles Devlin, a Wealthy Mine Owner, Whose Paper It Holds for a Million-Closing of the Bank Causes Small Runs on Other Banking Houses-All Depositors Paid Who Appeared. Topeka, Kan., July 3.-No definite statement was obtainable to-day regarding the condition of the First National bank, controlled by Charles J. Devlin, a wealthy coal mine owner, which closed its doors this morning. Col. W. H. Rossington, vice president of the bank, locked the institution's books in the vault to await the arrival of J. T. Bradley, national bank examiner, whom the comptroller had appointed receiver of the failed bank, and the colonel would only say: "The bank's trouble has not been caused by dishonesty on the part of anyone, but by lending too largely to one borrower. There has been no dishonesty." The borrower, it is said, is Mr. Devlin, and the bank is said to hold the capitalist's paper to the amount of $1,000,000. Aside from the slight run begun on the Central National bank immediately after the failure of the First National, there were small runs later n the day on the Merchants National bank, the Bank of Topeka and the State Savings bank. At each institution all depositors who requested their money were paid and confidence was restored in the ability to meet all demands.

4. July 4, 1905 The Times Dispatch Richmond, VA
Article from The Times Dispatch, July 4, 1905

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TOPEKA BANK CLOSES DÓORS Failure Due to Too Extensive Loans to Charles J. Devlin, Millionaire Mine Owner. CRASH HITS MANY PLACES Liabilities of Bankrupt Estimated at $2,500,000 to $4,000,000. Run on Banks. (By Associated Press.) TOPEKA, KAS., July 3.-No definite statement was obtainable to-day regardIng the condition of the First National Bank, controlled by Charles J. Devlin, a wealthy coal mine owner, which closed Its doors this morning. Col. W. H. Rossington, Vice-president of the bank, locked the institution's books in the vault to await the arrival of J. T. Bradley, National Bank Examiner, whom the comptroller had appointed receiver of the failed bank, and the Colonel would only say: "The bank's trouble has not been caused by dishonesty on the part of anyone, but by lending too largely to one borrower. There has been no stealing.' The borrower. it is said, is Mr. Devlin, and the bank is said to hold the capitalist's paper to the amount of $1,000,000. Mr. Devlin, whose sudden Illness brought about the tangle in the big coal mining and milroad properties valued, It is estimated at close to $7,000,000. is still under the care of a physician, and no statement could be secured from him, All that came from his home during the day or could be secured from other sources was that the stricken coal operator had turned over to the bank nearly $700,000 in life insurance and about the same amount In Topeka real estate. Business associates of Mr. Devlin gave It as their opinion that If properly handled this would allow the bank to pay. Aside from the flurry that the failure of the First National Bank caused on the other banks of the city, the most interesting phase of the situation was the statement of State Treasurer T. T. Kelly that the bank held $547,000 of the State funds, and the knowledge that Mr. Devlin was one of Treasurer Kelly's bondsmen. Following the announcement of the failure a lively but not disastrous run was started on the Central National Bank. Other runs of a lesser degree were started on the State Savings Bank, the Bank of Topeka and on the Merchants National Bank. At none of these banks, however, was the demand for withdrawals great. Devlin was generally credited as being one of the wealthiest men in Kansas City. He was at the head of twentysix different companies, coal mining enterprises and mercantile establishments, and owned stock in twenty-five banks. His liabilities are stated to be from two and a half to four millions, principally due to fourteen banks. The First National has a capital of $300,000 and owes depositors a million and a half.

5. July 4, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 4, 1905

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Property Turned Over. Cash to the amount of $300,000 was deposited in the Central National to offset the sum, J. W. Gleed stated today that $700,000 worth of real estate, $300,000 in Topeka property and $500.000 in coal lands in southeast Kansas had been turned in by Mr. Devlin: also $700,000 in life insurance. Mr. Gleed says the Central National is perfectly solvent. In the closed bank the state of Kansas has over $500,000 in deposits, the city of Topeka $39,000, and the county of Shawnee about $30,000. Runs on Other Banks. Aside from the slight run begun on the Central National bank, immediately after the failure of the First National, there also were small runs later in the day on the Merchant's National bank, the Bank of Topeka and the State Savings bank. At each of these institutions all depositors who requested their money were paid, and perfect confidence was expressed in the ability to meet any demands of the depositors. It is stated that the First National bank holds $547,000 of the state's money. T. T. Kelly, the state treasurer, declined to make a statement regarding the state's funds. Mr. Devlin is on Treasurer Kelly's bond for $500,000. The remainder of his bond is secured by a security company. The Central National bank is said to hold only a small amount of Devlin paper, which it is stated, is amply secured. Loans Were Too Heavy. Vice-President Rossington, who declined to make a statement at this time regarding the affairs of the First National Bank, said: "The trouble has been brought about purely through loaning too largely to one borrower." Major William Sims, president of the First National, has not been in charge of the bank for several years because of illness, and C. E. Hawley, the cashier, is confined at his home, ill with some nervous disease. A large amount of securities, it is said, have been brought into the bank within the past few days, as it was anticipated that enough cash would be on hand this morning to pay off depositors. The money did not materialize. however. Mr. Devlin, who has been under a physician's care, was unable to leave his home today. He was upand around, however, and in the best of spirits. His physician thought that Mr. Devlin would be able to return. to the bank in about a week.

6. July 6, 1905 Arizona Republican Phoenix, AZ
Article from Arizona Republican, July 6, 1905

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CREDITORS OF DEVLIN'S They Move That the Top:ka BanHer Be Declared Bankrupt. Topeka, Kan., July 5.-Affairs in the failure of the First National Bank as-. sumed a different phase today when the Kansas City creditors petitioned the United States circuit court to declare C. J. Devlin bankrupt. The petition was made returnable on July 20, and its effect is to prevent any further attachments of the Devlin property and to set aside real estate valued at $700,000, which Mr. Devlin had transferred to the failed bank. Today's action thus reduces the bank's assets. at least temporarily, to just that extent. The action does not affect the life insurance, which is in Mrs. Devlin's name. and which she insists be left among the assets of the bank. Mr. Devlin's business associates declare that he is far from a bankrupt and still insist that the bank will be enabled to pay dollar for dollar. Receiver Bradley, who began delving into the books of the bank today, announced that it would be ten days before he could make a statement of its condition. He announced that it was doubtful if the state, which had a half million dollars in the bank, would be considered a preferred creditor. Governor Hoch later announced that the executive council would tomorrow consider the action of State Treasurer Kelly in placing so much of the state's money in the bank. There was no show of a run today on any of the other banks, all fear apparently having been allayed. It was estimated today that $346,000 had been withdrawn on Monday by frightened depositors from the Central National, the Bank of Topeka, the State Savings and the Merchants' National banks. Of this amount 90 per cent was in checks of less than $100 and was distributed among 1,800 depositors.

7. July 6, 1905 Iowa County Democrat Mineral Point, WI
Article from Iowa County Democrat, July 6, 1905

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NATIONAL BANK FAILS. Too Much Loaned to One Speculating Capitalist. Topeka, Kas., July 4. - No definite statement was obtainable up to a late hour yesterday regarding the condition of the First National bank, controlled by Charles J. Devlin, the big coal mine owner, which closed its doors yesterday morning. Colonel W. H. Rossington, vice president of the bank, locked the institution's books in the vault to await the arrival of J. T. Bradley, national bank examiner, whom the comptroller appointed receiver of the failed bank, and he would only say: "The bank's trouble was not caused by dishonesty on the part of any one, but by lending too largely to one borrower.' The borrower is, of course, Devlin. and the bank is said to hold the capitalist's paper to the amount of $1.000.000. Devlin, whose sudden illness brought about a tangle in big coal mining and railroad properties, valued, it is estimated, close to $7,000.000, is, still under the care of a physician, and no statement could be secured from him. Following the announcement of the failure, a lively run started on the Central National bank, but the officers made every effort to pay the depositors as fast as they made demands. The excitement died down, and at closing time only a few small depositors remained at the teller's window. Another run of lesser degree started on the State Savings bank, the Bank of Topeka and on the Merchant's National bank. At none was the demand for withdrawals great.

8. July 6, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 6, 1905

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TWO ILLINOIS BANKS GO DOWN Suspension Due to the Failure of C. J. Devlin. AFFAIRS BADLY TANGLED KANSAS CITY CREDITORS FILE BANKRUPTCY PETITION. OPEKA, Kan., July 5.-Affairs in the failure of the First T National bank assumed a different phase today, when Kansas City creditors petitioned the United States district court to declare Charles Devlin a bankrupt. The petition was made returnable on July 20, and its effect is to prevent any further attachments of Devlin property and to set aside real estate valued at $700,000. which Mr. Devlin on Monday had transferred to the failed bank. Today's action ties up the bank's assets, at least temporarily, to just that extent. The action does not affect the life insurance, which is in Mrs. Devlin's name. and which she issists be left among the assets of the bank. Far From Bankrupt. Mr. Devlin's business associates declare that he is far from a bankrupt and still insist that the bank will be enabled to pay dollar for dollar. Receiver Bradley, who began delving into the books of the bank today, announced that it would be ten days before he could make a statement of its condition. He announced that it was doubtful if the state, which had half a million dollars in the bank, would be considered a preferred creditor. Governor Hoch late late night announced that the executive council would tomorrow consider the action of State Treasurer Kelly in placing SO much of the state's money in one bank. There is 'no sort of a run today on any of the other banks. all fear apparently having been allayed. It was estimated today that $346,000 had been withdrawn on Monday by frightened depositors from the Central National. the Bank of Topeka, the State Savings and the Merchants' National banks. Of this amount 90 per cent was in checks of less than $100 and was distributed among 1,800 depositors. Of Doubtful Legality. Receiver Bradley of the First National bank says there is some doubt as to the legality of the action of the officers of the bank in making special deposits of all money paid in on Friday and Saturday and not turning it in with the regular accounts. This action was taken in order to save the depositors and at the same time not create alarm by refusing to receive deposits. The law makes it a criminal act for officers of a bank to receive deposits when they have reason to suspect that the bank is unsafe. On Friday and Saturday all deposits received were laid aside to be returned to the depositors untouched if the bank should fail. "This matter has been submitted to the department at Washington," Mr. Bradley said tonight. "The officers there will have to decide whether or not' the officers of the bank had the right to do as they did, and whether or not this action releases them from responsibility for taking the deposits." There is little more talk of the First National bank opening again for business. The opinion of business men is that the bank will be able to pay nearly if not quite 100 cents on the dollar, but that there is little possibility of its being able to resume business. There is already some talk of forming another banking company for Topeka.

9. July 7, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, July 7, 1905

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TOPEKA BANK CLOSES DOORS First National Loaned Too Much Money to One Borrower--Runs Started on Other Institutions. Toneka. Kas.. July 3-No definite statement was obtainable todav reearding the condition of the First National Bank. controlled by Charles J. Devin. a wealthv coal mine owner which c'osed its door this morning. Colonel W. H. Rosington. vice president of the bank. locked the institututions books in the vault to await the arrival of J. T. Bradley. national bank examiner. whom the comptrolled had appointed receiver of the failed bank. the colonel would only sav: "The bank's trouble has not been caused by dishonesty on the part of anv one. but by lending too largely to one borrower. There has been no stealing." The borrower. it is said. is Mr. Devlin. and the bank is said to hold the capitalist's paper to the amount of $1,000,000 Mr. Devlin. whose sudden Finess brought about the tangle in the big coal mining and railroad properties valued. it is estimated. at close to $7,600,000. is still under the care of a physician and no statement could be secured from him. All that came from his home during the day or could be secured from other sources was that the stricken coal operator had turned over to the bank nearly $700.000 in life insurance and about the same amount in Topeka real es. tate. Business associates of Mr. Devlin gave it as their opinion that if properly handled this would allow the tank to Day. Aside from the flurry that the failure of the First National Bank caused on the other banks of the city the most interesting phase of the situation was the statement of State Treasurer T. T. Kelly that the bank held $547,000 of the state funds and the knowledge that Mr. Devlin was one of Treasurer Keily's Bondsmen. Following the announcement of the failure. a lively but not disastrous run was started on the Central National Bank Other ions of a lesser degree were started on the State Savings Bank. the Bank of Topeka and on the Merchants National Bank. At none of these banks however. was the Jemand for withdrawals great. Devlin was generally credited as being one of the wealthiest men in kansas City. He was at the head of twenty sir different companies. coal mining enterprises and mercantile establishments. and owned stock in tweny-fve banks. His liabilities are stated to be from two and a half to four millions. principally due to fourteen banks. The First National Pank has a capital of $300.000 and owes depositors a million and a half.

10. July 10, 1905 Vilas County News Eagle River, WI
Article from Vilas County News, July 10, 1905

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ton, vice president of the bank, locked the institution's books in the vault to await the arrival of J. T. Bradley, national bank examiner, whom the comptroller appointed receiver of the failed bank, and he would only say: "The bank's trouble was not caused by dishonesty on the part of any one, but by lending too largely to one borrower." The borrower is, of course, Devlin. and the bank is said to hold the capitalist's paper to the amount of $1,000.000. Devlin, whose sudden illness brought about a tangle in big coal mining and railroad properties, valued, it is estimated, close to $7,000,000, is, still under the care of a physician, and no statement could be secured from him. Following the announcement of the failure, a lively run started on the Central National bank, but the officers made every effort to pay the depositors as fast as they made demands. The excitement died down, and at closing time only a few small depositors remained at the teller's window. Another run of lesser degree started on the State Savings bank, the Bank of Topeka and on the Merchant's National bank. At none was the demanu for withdrawals great. In Debt for Millions. Kansas City, July 4. - The Journal says: The Kansas City bank last night received an inquiry from Baltimore indicating that Devlin owes $710,000 to a Trust company of this city. It is known that Devlin and his corporations owe the First National of Topeka $1,100,000; other banks of Topeka something like $500,000; Kansas City banks nearly $1,000,000; St. Louis $300,000, and Chicago about the same amount.