The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-06
TAKE CHARGE OF BANK.
Arkansas City Institution Closed by
the State Department.

The state banking department today
took charge of the Citizens & Farm
ers' State bank of Arkansas City, and
placed w. T. Watson, one of the state
bank examiners, in charge.
The bank is said to hold about
SS0,O00 worth of unsecured debts of
the Wells Produce company of
Arkansas City. The capital of the
bank is $4,000, with $4,000 surplus
and undivided profits. Its deposits
are $3S5,176
Among bankers the institution is
generally known as Sanders bank"
N. d. Sanders, former assistant state
auditor under Geo. E. Cole, is cashier.
VIM. A. Wilson is president and A. F.
Thomasson is vice president.
The bank got into trouble, it is said,
through lack of careful business
methods in dealing with the Wells
Produce company, a concern which
bought poultry. butter, and eggs, and
sold them in the east in car load lots.
1t was the custom of this firm to ship
the goods, and draw draft for the
amount due 1t then was allowed by
the bank to deposit this draft the
same as cash, and draw checks
against the deposit. Sometimes these
drafts were a little slow in payment
by eastern banks, but they had always
come out right. Recently the parties
to whom the Wells Produce company
shipped goods refused to pay the sight
drafts, on account of the fact that the
Wells company owed them money,
and they protected themselves by
holding the goods and refusing pay
ment. This action left the account of
the Wells company about $4,000
overdrawn. The bank at once bonded
the Wells warehouse for $4,000, and
hung onto whatever else security it
could get for the debt. which wasn't
very much. 1t then proceeded to hold
its breath and wait for the Wells busi-
ness to pay itself out. The bank COM
missioner was informed of the con-
ditions, and Immediately notified the
bank that it must close up pending an
examination. w. T. Watson was at
once sent to take charge.
w. S. Albright, assistant state bank
commissioner, who in a few days will
succeed John @. Royce as bank COM
missioner. said today:
The bank did not suspend payment.
This department learned the condi-
tions existing, and decided that the
safest plan for all concerned would be
to take charge of the bank pending an
investigation of all its affairs. Aside
from this Wells commission house
situation, the affairs of the bank seem
to be in good shape If the investiga-
ton shows that the bank can pay out,
it will be allowed to continue in busi-
ness. If not, then receiver Will be
asked for.'
Arkansas City. Kan, Nov. 6.-The
Citizens and Farmers State bank
closed its doors here this morning, the
first information of its suspension of
business being a notice posted on the
locked door of the bank signed by all
the officers. The notice read:
'The bank is closed pending an in
vestigation of it's affairs. The bank
commissioner has been notified and is
in full charge. Full particulars will
he given at the earliest nOSsible mo
ment after his arrival"
William A Wilson, president of the
bank. resides in Kansas City and the
closing of this bank this morning fol-
lowing the return of Mr.. Sanders, the
cashier, from visit to that city.