Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-20
Bank Examiner Takes Charge.

The bank was closed by +. E. Ames bank
examiner, under instructions from the con-
troler of the currency. The controller had
yesterday, It is stated, informed the Of
ficers of the bank that it must take up
100000 bad paper Immediately or they
would not be permitted to open today. The
bank was examined last night by a COM
mittee of local bankers, who reported at a
meeting early today that the affairs of the
| Institution were in such shape that they
would not feel justified in extending as
sstance. Although the City National Bank
was not a member of the local clearing
house association, that association, II was
stated by one of it's officers today, would
have extended aid had they not found so
much bad paper.
Although the holding of Devln paper
upon which no immediate realization could
be made was the prime cause of the fail
ure, 1t is stated that the general knowl-
edge that the bank held other bad paper
and was in weakened condition had led
to a gradual withdrawal of deposits. At
no time had a run of any big proportions
been on, but it is stated Withdrawals had
been made quietly for several months, and
that within sixty days 100000 had been
taken.
From another source 1t was asserted that
when the City National Bank was ordered
to repair its capital several months ago
the needed funds were burrowed, not from
a local capitalist. but from certain New
York banks but what Institutions 1t was
not QlScIOSeU. Examiner AIneS SAID To-Day
that 1t would be impossible for him to talk
at this time either regarding this state
ment other affairs of the bank. The
bank officials likewise declined to issue a
statement now.
The majority of the banks depositOrs are
persons In medium circumstances, two
thirds of whom live outside Kansas City.
There was no excitement at the doors of
the bank when the closing notice was posted
today less than dozen depositors appear
ing TO withdraw their money.
Had Varied Experience.
The posting of this second notice devel-
oped the fact that other Kansas City banks,
wired certain of the latter's outside custom
ers, principally small nearby banks, that
they would pay certain drafts drawn on the
City National. Later in the day other no.
tices from other Kansas City banks, desig-
mating different outside institutions which
they offered to protect on drafts drawn
through the City National were posted.
The City National Bank has had a varied
| experience. In its five years existence II
! has had four sets OF officers, and upon nu-
merous occasions the controller of the cur
rency has called upon its officers to repair
! its capital or to conform in other ways with
! the banking laws. 1t was organized in 1900
| with capital of S250.OO0. Last winter the
| ca pital was reduced to 100000. Later the
ca pital was increased 100000 to $500 900
/ charging off all its surplus and $4,000 of
/ its original capital. 1t now develops that
| this did not take out all the bad paper
Aside from the notice placed on the bank
/ door by Examiner Ames, which simply stat
| ed that the bank was in charge of the con-
| troller OF the currency, the following I'M
| signed notice was pasted up later: Pre-
| sent all drafts drawn by the following banks
| on the City National Bank Of Kansas City
1 No. TO the National Bank of Commerce
! Kansas City. Mo-, for payment:
4 Pa nix Of Grecley Kan
Citizens State Bank, Belle Plaine, Kan
| Citizens State Bank. Usage City. Kan.
| Citizens State Bank, Edna, Kan.
/ Citizens State Bank, Paola Kan"