The Montgomery advertiser., 1905-07-21
TOO MUCH OF Z DEVLIN PAPER Another Bank Has Closed
 Its Doors. FAIL URE AT KANSAS CITY Clearing House is Bravely
 Facing Crisis. Announeed that No Other Local Insti- tutien will Be Allowed to suc-
 eumb h the Case of
 Run.
FAILURE AT KANSAS CITY

Bank of Kansas City Nothing border Ing on a run was experienced at any of the other local banks and according tc the officers at each place. none was ex' pected.
 The City National had been in . weakened condition for some time. Its failure had heen anticipated and there fore no surprise was shown in banking circles today when the announcement was made that 1t had been taken in charge by National Bank Examiner Amea. Neither MT. Ames nor the failed a position to make a definite statement regarding the banks condition. The failure of the City National Bank of Kansas City was due in a great measure to the fact that it held up- wards of $100.000 of c. J. Devlin's pa per. which Is tied up in the recent fall ure of the First National Bank of To- peka. of which MT. Devlin was the prin- cfpa1 stockholder. The only other Kan sas City bank that had held Devlin pa per was the American National c. s. Jobez, president of the American Nation al Bank. stated today that $367.000 of Devlin paper held at the time of the Topeka failure had been purchased since then from the American National Bank by its directors.
 Thus. 1t was stated, there was no cause for a run on the American Ma tional. Indeed 1t was announced by a member of the Kansas City clearing house that no other Kansas City bank would be permitted to fall in case of a run. which was not expected.
 A Direct Result.
 The City National Bank failed to open its doors today. The bank held paper of c. J. Devlin. of Topeka. to the amount of upwards of s1oo.ooo. and the failure is the direct result of the closing of the, First National Bank of Topekaskof which MT. Devlin was sths principal stockholder.
 Some time ago the comptroller of the currency at Washington instructed the officers of the City National Bank to repair Its capital. This was done by borrowing from local capitalist. Following the failure of the First Na- tional Bank at Topeka. the Kansas City capitalist became insistent upon repayment of his loan and this de- mand caused the officers of the City National Bank to decide upon closing their institution.
 From another source it was as- serted that when the City National Bank was ordered to repair it's csp- itaI several months ago the needed funds were borrowed not from local cap italists but from certain New York banks, but which institutions 1t was not disclosed. Examiner Ames said today that 1t would be impossible for him to talk at this time regarding this statement or other affairs of the bank The bank officials likewise de- clined to issue a statement now.
 The only other bank in Kansas City which was caught in the failure of the First National Bank of Topeka was the American National Bank of Kansas City. which is said to hold up wards of $200,00o Devlln paper. It was stated positively today to the As sociated Press by a leading banker that the other Kansas City fnstitu- tions would not permit this bank to fail.
 There was no appearance of run on other Kansas City banks at the opening hour today.
 The City National Bank was organ ized in 1900, and Is one of the young est national banking institutions in the city. It's capital Is $300.000, and 1t has deposits of $1.476.64s. Its officers are:
 Edward Crebo, president; James G. strean, cashier: John Moore, vice pres ident: Charles A. LoonSs. second vice president
 The last statement of the City Na- tional Bank, issued on May 29. 1905. showing the following:
 The Last Statement.
 Resources: Loans and discounts. $1.036.546.
 Overdrafts. S640.
 United states bonds and premiums, $266937
 Cash and sight exchanges. s6S5.597.
 Total. $1,9s9,720.
 Liabilities: Capital stock, s3o0,0o
 Undivided profits. $3.071.
 Circulation. s210.000.
 Deposits, $1,476,641.
 Total. $1,9s9.720.
 The bank was closed by E. E. Ames, Bank Examiner. under instructions from the Comptroller of the Currency. The Comptroller, 1t is stated, informed the officers of the bank that 1t must take up $200,0 bad paper immediately or they would not be permitted to open today. The bank was examined last night by a committee of local bankers who reported at a meeting early to- day that the affairs of the institution were in such shape that they would not feel justified in extending assistance. Although the City National Bank was not member of the local clearing house association, that association. 1t was stated by one of It's officers to- day, would have extended aid had they
 
 Although the holding of Devlin pa per upon which no immediate realiza- ton could be made, was the prime cause of the failure, 1t Is stated that the gem eral knowledge that the bank held other bad paper and was in weaken ed condition had led to a gradual with- drawal of deposits. At no time had run of any proportions been on' but It Is stated withdrawals had been made quietly for several months ana that within sixty days $6oo.Ooo had been taken out.
 The majority of the banks depssitors are persons in medium circumstances' two thirds of whom live outside Kan sas City.
 There was no excitement at the door of the bank when the closing notice was posted today Jess than dozen de- positors appearing to withdraw their money
 Aside from the notice placed on the bank door by Examiner Ames. which simply stated that the bank was in charge of the comptroller of the Cur