The Birmingham age-herald., 1905-09-26
B|G KANSAS C|TY
 BANK IS CLOSED Wiley 0. Cox Was President of
 Institution BUSINESS WAS FALLING OFF Loan of $16s,ooo to Salmon & Salmon, Who Failed Last Week, Is Said
 to Have Fastened
 Matters.
BUSINESS WAS FALLING OFF

Kansas City, Mo-, September 25.-The Kansas City State Bank, Wiley o. Cox president, failed to open it's doors today, having gone into voluntary liquidation. The bank had loaned $16S,OO0 to the bank of Salmon & Salmon at Clinton, Mo-. which failed last July, catching depostors for several thousand dollars.
 The Kansas City State bank was or ganized in 1888, and had capitol of $20O,- O00 The last statement showed loans Of s4,OOO,OO0, deposits $1475O,O0O. surplus s14,OOO.
 The following notice 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 to the Fideli- ty Trust company at Ninth and Walnut streets. Wiley O. Cox, president"
 The Fidelity Trust company, which is capitalized at $1,OO0,0O0, is considered one of the strongest banking institutions in the southwest.
 The Kansas City State bank holds $567,- GOO of the city's money. Wiley o. Cox, president of the Kansas City State bank, Is one of the oldest and best known bank CTS in Missouri. He has lived in Missouri since 1868. In 1872 he was a clerk in the First National bank at Springfield, Mo-, coming to Kansas City in 1881. From 1854 to 1888 he was engaged in a general finan- cial and loan brokerage business. He or ganfzed the Kansas City State bank in 1888, and has always served as Its presi- dent. In 1896 he bought the Kansas City ,ttrf.a cessful, and in 1899 he sold the paper.
 C.. ccks Were Honored.
 At the Fidelity Trust company bank checks on the Kansas City State bank were honored as far 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.
 MT. Campbell declined to talk of the causes leading up to the closing of the Kansas City State bank.
 Wiley O. Cox, president Of the Kansas City State bank, made the following state ment to the Associated Press:
 '0rhe retirement of the Kansas City State bank from active business Is vol untary. Our business has not been grow ing for some time, and we round II hard to hold our own with the larger in- stitutions. In fact, 1t looks as if the bank ing business as well as all other lines' is concentrating in the larger ones.
 The condition of business was thor oughly gone over by the board Of direc- tors. and the conclusion was reached that it was not prosperng as it ought 10 Tn order to be profitable, and it was decided to go into voluntary liquidation. one plan which might have been adopted 10 do our own liquidation was paying depos- itors on demand and taking no new busi- ness. This would have proved very ex- pensive, as 1t would have involved bor- rowing a large sum of money on the banks paper in order to pay the depos- itors at once, while the force of clerks office rent, etc, would continue probably the same as though the bank was running in the usual and ordinary way. Accord ingIy negotiations looking to the liquida- ton of the business through some other active banking institution were begun and have finally resulted In the consum- nation of form whereby the Fidelity Trust company has taken over the busi- ness of the bank and Is paying our depos- itors In the ordinary way"
 Plan Carefully Worked Out.
 The decision to liquidate was reached following a meeting of representatives oi the public banks The investigation of the accounts ndu DteH d SetitAuiy prepared statement of the resources and liabilities, checked in every detail. and the collaterals held for loans appraised by financial experts. This was done at the request of the banks officials. who were seeking a way to close the bank without placing in jeopardy one dollar of the de- positors' money. Ever since the failure Of the Salmon & Salmon bank at Clin- ton, Mo, the banks business had been on a decline. Many large depositors with dr>w their accounts because of the fact that the bank had advanced the Salmons more than $2O0.OOO on collateral that is now said by bankers to be gilt-edged At that time the value of the collateral was problematical and timid depositors had tended to curtail the accounts.