The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-20
BANK GOES UNDER
City National Bank in Kansas
City Closes Its Doors.
Could Not Make Good 100000
Bad Paper.
ONE OF THE NEW ONES.
Bank Had Been in Existence
Five Years.
Devlin Indebtedness to the Bank
Was 100000.
Receiver Bradley Says This Fail.
ure Was Anticipated.

" 00 AL RG1OOOS
Kansas City, July 2o.-The City Ma |
tional bank failed to open its doors
today. The bank held paper of c. ].
Devlin of Topeka to the amount of up
ward of 100000, and the failure is |
the direct result of the closing of the |
First National bank of Topeka. of |
which Mr.. Devlin was the principal |
Some time ago the comptroller of |
the currency at Washington instructed |
the officers of the City National to re-
pair its capital. This was done by |
borrowing from local capitalist. Fol-
lowing the failure of the First Nation
al at Topeka, the Kansas City capitalist |
became insistent upon repayment of
his loan and this demand caused the |
officers of the City National to decide |
upon closing their institution.
The only other bank in Kansas City
which was caught in the failure of the
American National Bank of Kansas
City, which is said to hold upward of
100000 Devlin paper. 1t was stated
positively today to the Associated Press
by leading banker that the other
Kansas City institutions would not per-
nit this bank to fail.
There was no appearance of a run on
other Kansas City banks at the opening
hour today
The City National bank was organ
lied in 1900, and is one of the youngest
of the national banking institutions in
the city. Its capital is 100000, and it
has deposits of $1,476,64S. Its officers
are: Edward Crebo, president; James
@. Stream, cashier; John Moore, vice
president; Charles A. Loomis, second
vice president.
Ior tot - he ie
sued on May 90, 1905, showed the fol-
lowing:
Resources: Loans and discounts, 81
036. .545.70.
premiums, 1886, ,937.30.
Cash and sight exchange. sss55s7. 80
Total, 1883, ,720.12.
Liabilities: Capital stock, 100000.
Undivided profit, $3,071.1S 4
Circulation $210,000.
Deposits, $1,476, ,64S. 94.
Total, 1889, ,720.12.
Examiner Anes in Charge.
The bank was closed by E. E. Ames,
bank examiner, under instructions
from the comptroller of currency. The
comptroller yesterday, it is said, in
formed the officers of the bank that
it must take up 100000 bad paper
Immediately or they would not be per-
mitted to open today. The bank was
examined last night by a committee
of local bankers who reported at
meeting early today that the affairs of
the bank were in such shape that they
would not feel justified in extending
assistance.
Although the City National was not
a member of the local clearing house
association, that association, it was
stated by one of its officers today,
would have extended aid had they not
found so much bad paper.
Although the holding of Devlin pa
per upon which no immediate realiza-
ton could be made, was the prime
cause of the failure, it is stated that
the knowledge that the bank held 9TH
er bad paper and was in a weakened
condition, led to a gradual withdrawal
of deposits. At no time had a run of
any big proportions been on, but, it is
said, Withdrawals had been made
quietly for several months and that
within sixty days $500, 900 had been
taken out.
The majority of the banks de-
positors are persons in medium cir
cumstances. two-thirds of whom live
outside Kansas City.
There was no excitement at the
doors of the bank when the notice was
positors appearing to withdraw their
money.
Aside from the notice placed on the
bank door by Examiner Ames, which
simply states that the bank was in
charge of the comptroller, the follow
ing unsigned notice was posted up
later:
present all drafts drawn by the fol-
lowing banks on the City National
bank of Kansas City, Mo-, to the Ma
tionaI Bank of Commerce, Kansas City,
Mo-, for payment:
'.Bank of Greeley. Greeley, Kansas;
Citizens State bank, BellepIain, Kan
sas; Citizens State bank, Usage City,
Kansas; Citizens State bank, Edna,
Kansas; Citizens State bank, Paola,
Kansas
The posting of this second notice
developed the fact that other Kansas
City banks, knowing the City National
was to fail, wired certain of the lat
ter's outside customers. principally
small nearby banks. that they would
pay certain drafts drawn on the City
National. Later in the day other no.
tees, from other Kansas City banks,
designating different outside institu-
tions whom they offered to protect
on drafts drawn through the City
National, were posted.
The City National has had a varied
experience. In its five years exist
ence it has had four sets of officers,
and upon numerous occasions the
called upon its officers to repair its
capital. It was organized in 1900
with capital of S250.000. Last win
ter the capital was reduced to $780,
s100 600 to $4,000 900, charging off all
their surplus and $4,000 of their
original capital It now develops that
this did not take out all the bad paper
Loaned by New Workers.
From another source it was assert
ed that when the City National bank
was ordered to repair ITS capital sew
eral months ago, the needed funds
were borrowed not from a local cap
italist but from certain New York
banks, but what institutions it was
not disclosed. Examiner Ames said