Brookfield Trust Company - Brookfield, MO

Episode Information

Episode UID: 80015371500
Episode Type: Suspension → Closure
Bank Type: trust
Bank ID: 8001537 routing
Routing Number: 80-0153
Start Date: December 1, 1924*
Location: Brookfield, Missouri (39.784, -93.074)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 9dc7391d7243a038

Response Measures

None

Description

Article states the institution failed in December (Jan 23, 1925 article implies December 1924 failure).

Events (2)

1. December 1, 1924* Receivership

Newspaper Excerpt: There was more than $100,000 of state moneys on deposit when the institution failed in December, but it has been an easy matter for L. D. Thompson... to dispose of the bonds which were offered by the trust company as collateral for the deposits.
Source: newspapers

2. December 1, 1924* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Institution failed in December (insolvency/liquidation indicated); had state funds on deposit secured by bonds
Newspaper Excerpt: The failure of the Brookfield Trust company in Linn county. . . the institution failed in December
Source: newspapers

Newspaper Articles (1)

1. January 24, 1925 Kansas City Journal Kansas City, MO

Article from Kansas City Journal, January 24, 1925

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Article Text

STATE HAS NEW BANK REQUISITES Institutions Which Obtain Deposits Must Live Up To Strict Rules. By R. E. HOLLIWAY, of Journal-Post Jefferson City Bureau. JEFFERSON CITY, MO., Jan. 23.—Banks and trust companies which receive state money on deposit this year are expected to be required to furnish all bonds as collateral instead of real estate mortgages and agree not to receive more than 10 per cent of their deposits from one source. It is believed this will be the policy of the new state fund commissioners in an effort to throw an absolute safeguard around state funds which are deposited in the banks. The fund commissioners are Gov. Sam A. Baker, Atty. Gen. Robert W. Otto and C. Eugene Stephens, state treasurer. The fund commissioners will receive bids February 10 for the state money. Springfield Case Cited. The failure of the Holland Banking company in Springfield more than a year ago, with more than $1,000,000 of state funds, caused a bad situation. The depositors have been reduced to approximately $400,000 through the liquidation of the bank. However, a special committee of the senate has found there has been a great shrinkage in real estate on which mortgages were placed with the state treasurer as collateral for the deposits. Governor Baker and Attorney General Otto believe no real estate mortgages should be accepted by the state in securing the state funds. They believe gilt edge bonds should be placed with the treasurer as a guarantee of the payment of all funds. Governor Baker, in his inaugural message to the general assembly, dwelt at length on the financial situation in the state. He declared a bank's deposits should be from diversified sources and that not more than 10 per cent should be from one source. Baker Wants Law. The governor recommended the passage of such a law and in the absence of such a measure he is of the opinion banks which want to bid for the state money should agree not to receive more than 10 per cent of their deposits from one source. The wisdom of a bank furnishing bonds in receiving deposits from the state was shown recently in the failure of the Brookfield Trust company in Linn county. There was more than $100,000 of state moneys on deposit when the institution failed in December, but it has been an easy matter for L. D. Thompson, former state treasurer, and the present state treasurer to dispose of the bonds which were offered by the trust company as collateral. The car you want to sell is sought by many buyers through Journal-Post Want Ads.—Adv.