Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-25
KANSAS BANK FAILS
Voluntary Liquidation and
Depositors Will Be Paid.
HELD CITY'S MONEY
FIDELITY TRUST COMPANY TO
PAY ALL CHECKS.
Bank Had Loaned $1es, 900 to Clinton,
NO., Institution That Failed
Last July.
HELD CITY'S MONEY

KANSAS CITY, September 25-The Kan
sas City State Bank, Wiley o. Cox, presi-
dent failed to open it's doors today, having
gone into voluntary liquidation. The bank
had loaned s16s,0oO to the bank of Salmon
& Salmon, at Clinton, Mo-. which failed last
July, catching depositors for several hun
dred thousand dollars.
The Kansas City State Bank was organ
lied in 1883, and had capital of $2e0, 900.
The last tatement showed loans of $4.000,-
o3o; deposits, s4,750,Ga0; surplus, $140oo.
The following notice was posted in the
door at the opening hour today:
This bank has gone into voluntary
liquidation through the Fidelity Trust Com
pany. Checks drawn against the bank will
be paid on presentation to the Fidelity
Trust Company. at 9th and Walnut streets.
(Signed) WILEY o. cox. President"
The Fidelity Trust Company, which is
capitalized at 81 ,ooO,GOe, Is considered one of
the strongest banking institutions in the
southwest.
Half Million Of City's Money.
The Kansas City State Bank holds s567,-
600 of the citys money.
Wiley o. Cox. president of the Kansas
City State Bank, Is one of the oldest and
best-known men in Missouri. He has lived
in Missouri since 1863. In 1872 he was
d
field. Mo-, coming to Kansas City in 1881.
From 1884 to 1883 he was engaged in
general financial and loan brokerage busi-
ness. He organized the Kansas City State
Bank in 1888, and has always served as its
president In 1886 he bought the Kansas
City Times, and in 1880 he sold the paper.
AT the Fidelity Trust Company Bank
checks on the Kansas City State Bank were
no show of commotion. Charles Campbell,
vice president of the Fidelity Trust Com
pany, stated that all checks drawn on the
closed bank would be paid on demand.
Mr. Campbell declined to talk of the
causes leading up to the closing of the
Kansas City State Bank.
Wiley Q. Cox, president Of the Kansas
City State Bank, made the Following state
ment to the Associated Press:
Retirement Not Forced.
'The retirement of the Kansas City State
Bank from active business is voluntary.
Our business has not been growing for
some time and we found It hard to hold our
own with the larger institutions. In fact,
it looks as if the banking business, as well
all other lines, is concentrating into the
larger ones. The condition of the business
was thoroughly gone over by the board of
directors and the conclusion was reached
that 1t was not prospertng as 1T ought to
do in order to be profitable, and 1t was de-
cided to go into voluntary liquidation. One
plan, which might have been adopted was
to do our own liquidating, paying deposit
Ors on demand, and taking on no new busi-
ness. This would have proved very expen-
sive as it would have involved borrowing
a large sum of money on the banks paper,
in order to pay depositors at once, while
the force of clerks, effice rent, etc, would
continue probably the same as if the bank
were running in the usual and ordinary
way. Accordingly negotiat tions looking to
the liquidation of the business through
some other active banking institution were
begun, and have finally reached consumma-
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