The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-25
'COx'S BANK SHUT.
Kansas City State Does Not
Open Its Doors.
Notice That It Has Gone Into
Voluntary Liquidation.
s567,OOO CITY MONEY.
On Deposit in the Institution
When It Closed.
Trouble Brought on by Loan to
Salmon & Salmon.
s567,OOO CITY MONEY.

Kansas City, Sept. 25.-The Kansas
City State bank, Wiley o. Cox, presi-
dent. failed to open its doors today,
having gone into voluntary liquidation.
The bank has loaned S16s, 900 to the
Bank of Salmon and Salmon & Co.,
which failed last July. catching deposi-
tors for several hundred thousand dol
lars.
The Kansas City state bank was
organized in 1888, and had a capital Of
100000. The last statement showed
| loans oe $4,0OO.0Oo deposits s4,750 600;
surplus $4,000.
The following was posted on the door
| at the opening hour today:
This bank has gone into voluntary
| liquidation through the Fidelity Trust
company. Checks drawn against the
bank will be paid on presentation by
the Fidelity Trust company, at Ninth
and Walnut streets. (Sigfied).
WILEY o. cox President"
The Fidelity Trust company, which is
capitalized at 81, 100000 is considered one
of the strongest banking institutions in
| the southwest.
The Kansas City State bank holds
$567, 900 of the city's money.
Wiley o. Cox, president of the Kansas
City State bank is one of the oldest and
best known men in Missouri. He mas
lived in Missouri since 1853. In 1872 he
w n
at Springfield, Mo-, coming to Kansas
City in 1881. From 1884 to 1888, he was
engaged in a general financial and loan
brokerage business. He organized the
Kansas City State bank in 1883 and has
always been it's president. In 1896 he
bought the Kansas City Times, ven
ture that did not pay and in 1899. he
sold the paper.
At the Fidelity Trust companys bank
checks on the Kansas City State bank
were honored as fast as presented.
There was no show of commotion and
Charles Campbell. vice president of the
Fidelity Trust company, stated that all
checks drawn on the closed bank would
be paid on demand
Cox;s Statement.
Wiley o. Cox, president of the Kan
Sas City State bank, made the following
statement to the Associated Press:
1.-THE retirement of the Kansas City
State bank from active business is vol-
untary.. Our business has been growing
less until it is hard to hold our own
with the larger institutions. In fact, it
looks as if the banking business, as well
as all other lines. is consolidating into
the large ones
saThe condition of the business was
thoroughly gone over by the board of
directors and the conclusion was reach
ed that it was not pFOSpering as 1T ought
to do in order to be profitable, and it
was determined to go into voluntary
liquidation. One plan, which might have
been adopted was to do our own liaui-
dating, paying depositors on demand,
| and taking no new business. This
would have proved very expensive, as 1t
would have involved borrowing a large
sum of money from the banks paper, in
order to pay depositors at once, while
the force required to handle it would
| cost us a large sum.
Accordingly, y,negotiationsf for the liqui-
dation by the trust company banking
| institution, was made, resulting in the
making recently. of an entirely satisfac-
| tory arrangement, whereby the Fidelity
Trust company, one of our strongest
banking houses, has taken over the bus
| mess of the bank and is paying our de-
positors, in the ordinary way, on de-
nand, the same as we would be doing,
| if still running.
ION retiring from the banking busi-
ness. for the present, after an active ca
reer of many years, l cannot help feel
| ing extremely proud that no depositor
has ever failed to have his checks hon
ored and paid on presentation at any
bank with which I have connections
| The Fidelity Trust company volunteered
| to pay the city treasurer the amolxt OF
| the city's funds on deposit in the Kansas
! City State bank, but the money was not
! withdrawn.