Farmers & Merchants National Bank (Merced, CA)

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NAMED BANK RECEIVER

Sept. Hilliard of Santa Rosa bas been the Farmers and Merchants National Bank of Merced. which suspended last Notice appointment received this afternoon by Chorpening national bank examiner who has been in charge of the bank's affairs. Appointment was made by the comptroller of the currency Washington and the chief national bank examiner of the 12th federal district at San Francisco. Mr. Hilliard expected to take charge tomorrow. The statement of the closed gave and total assets of Hart was president and A. Keck

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SHORTAGE FOUND IN MERCED CITY TREASURY FUNDS

Bonds Worth $27,000 Missing; City Treasurer Also Short $2,600 in Current Account

MERCED Sept. 23 shortage $27,000 bonds supposedly on deposit with B. Hart, city treasurer, as security for city funds deposited by him in of the Mer. ced banks, was brought to the atten tion of the city trustees last night aftermath the closing of the Farmers' National bank, of which Mr. Hart is also The the trustees were formed, Involves bonds alleged have been sold by Mr. Hart to the First Bank of Fresno, which had been deposited security for city funds reduced to 500 at the time of the closing of the bank. In addition, according to the statement to the trustees by Fred Henderson, attorney, who made the investigation, there shortage of approximately $2,600 in city rent fund account. Mr. Hart is under bond, and the city trustees plan no legal action, was explained. the matter rests with the bonding company. which continue the investigation.

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SHORTAGE FOUND MERCED CITY TREASURY FUNDS

Bonds Worth $27,000 Missing; City Treasurer Also Short $2,600 in Current Account

MERCED, Sept. shortage in deposit with city treasurer, 25 security for city funds deposited by him lu one of the Merced Lanks, was brought to the attention of the city trustees last night the closing of the Farmers' and Merchanis' National of which Hart is bank, The shortage, the trustees formed, involves boads alleged sold by 10 the have been First National Bank of Fresno, which had been security city funds reduced to the time of the closing of the at bank. lu addition, according to the stateby Fred to the who made city the there to of approximately rent tund and the Mr. is under boud. trustees plan legal city explained. the matter which with the bonding company. will continue the investigation.

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$27,800 BONDS MISSING FROM MERCED FUNDS

City Treasurer, Head Of Closed Bank, Said To Be Short

MERCED, Sept. Appointment of a receiver for the Farmers and Merchants National bank of this city and the discovery of an alleged shortage of $27,800 in bonds on deposit with J. B. Hart, city treasurer and president of the Farmers and Merchants bank, were today's developments arising from investigation of the tangled affairs of the closed bank, which suspended business last Monday. The alleged shortage. brought to the attention of the city trustees at their meeting last night by City Atorney Fred W. Henderson, involves bonds deposited with Mr. Hart as city treasurer as security for city funds on deposit in another bank and which Hart is alleged to have sold to Fresno bank. In addition, according to City Attorney Henderson's statement to the trustees, there is a shortage of approximately $2,600 in current city fund account, representing the dif. ference between a total of $8,200 and receipts held by the city treasurer for bills paid of approximately $5,600. No deposit to cover this was found on the books of the Farmers and Merchants bank, Mr Henderson said. Hart, as city treasurer, is under bond for a sum more than sufficient to cover any shortage, it was stated, and action in the matter rests with the bonding company. The city trustees plan no legal action. Henry P. Hilliard of Santa Rosa has been named by the federal of administer the affairs of the Farmers and Merchants bank, according to information received today by I. Chorpening, national bank examiner, who has been in charge since the bank closed Monday Appointment of the receiver followed failure of negotiations herein another Merced barik offered to take over the affairs of the closed institution, provided its officers would post a guarantee to make good any loss that might result. It was the discrepancy between the available assets and the liabilities of the suspended bank proved too great to be overcome and the negotiations were called off last night and naming of the receiver followed today. The last statement of the closed bank, published July 14, gave total deposits of $1,525,326 and total assets of $1,916,493. No statement of the bank's present condition has been made by those in charge since the closing, but it is thought the amount of deposit had been materially reduced by steady withdrawals in the last few months. Among the heavy deposits in the closed bank that of the Merced irrigation district, for which the bank was depository. No statement on the affairs of the bank or those of Hart's accounts as city treasurer has been made by Hart, who has been confined to his home, threatened with a nervous breakdown following the closing of the bank

VISITS IN PATTERSON PATTERSON, Stanislaus 23.-Mrs. H. Raymont of Modesto was a Patterson visitor on Wednesday.

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Hilliard Named Bank Receiver at Merced

Colonel Henry Hilliard has been named the national comptroller the currency as receiver of Farmers Merchants National Bank of Merced. which failed the extent of $2,000,000 Monday He left Thursday night to take over the bank's afHilliard has been receiver number occasions, having capacity when the Rosa National Bank failed

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Merced Bank Awaits Probe

Merced, Sept. 24.-With the tangled condition of affairs of the Farmers and Merchants National Bank of Merced rapidly becoming more involved, the arrival of Henry P. Hilliard of Santa Rosa, appointed receiver for the bank yesterday by I. Chorping. national bank examiner, was awaited today. The bank suspended business Monday. At the same time, it was announced today, city officials have opened an Investigation of charges by City Attorney Fred W. Henderson that a shortage of $30,400 in city funds entrusted to J. B. Hart, city treasurer of Merced and president of the bank, exists. Action in this matter, it was indicated. would rest with the bonding company sponsoring Hart as city treasurer.

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Treasurer of Merced Is Declared 'Short'

MERCED Sept. alleged shortage of $27,000 in bonds supposedly on deposit with J. B. Hart as city treasurer as security for city funds deposited by him in one of the Merced banks was brought to the attention of the city trustees today as an aftermath of the closing' of the Farmers and Merchants National bank. of which Hart is president The shortage. the trustees were informed. Involves bonds alleged to have been sold by Hart to the First National bank of Fresno. deposited as security for $25,000 of city funds, reduced to $14,500 at the time of the closing of the bank Fred W Henderson. city attorney. asserted today that there is also shortage of approximately $2600 In a city current fund account. Henry P. Hilliard of Santa Rosa has been appointed receiver for the bank, which suspended last Monday Appointment was made by the comptroller of the currency

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Merced Bank Awaits Probe

Merced, Sept. 24.-With the tangled condition of affairs of the Farmers and Merchants National Bank of Merced rapidly becoming more involved, the arrival of Henry P. Hilliard of Santa Rosa, appointed receiver for the bank yesterday by Chorping. national bank examiner, was awaited today. The bank suspended business Monday. At the same time, It was announced today. city officials have opened an Investigation of charges by City Attorney Fred W. Henderson that shortage of $30,400 in city funds entrusted to J. B. Hart, city treasurer of Merced and president of the bank, exists. Action in this matter, It was indicated. would rest with the bondIng company sponsoring Hart as city treasurer.

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Second Petition Counters First In J. B. Hart Estate

F. K. Silviera Of Merced Would Administer November 13th And 14th Set Estate Of Late Banker; Barrage Of As Dates; Novel Display Lawsuits Forecast In Action; Will Be Staged Run On Bank Revealed

ERCED (Merced Co.), Oct. second petition for letters of administration of the estate of the late J. B. former president of the Farmers and Merchants' Hart, Bank, whose alleged suicidal death followed revelation of alleged misappropriation of funds, was filed in superior court here by K. Silviera Merced. petition for adminfiled her husband's estate Both petitions named Hart, the hearing Mrs. Hart's to November was by Judge Rector. Silviera's petition also will be heard on date. Attorney's Statement attorney for explaining the petition, said: filed this petition behalf behalf other own similarly and the reason that they do not the business competent handle assets consist part interest prop. erty in this munity silent partner Law suits will have be Instituted order to obtain for the credItors the of such Interests, aside that shortly before his which might have been set aside he lived been declared bankrupt. The effect the transmade which are plained of, left his would sufficient to pay Henderson said Silviera's claim for and was upon note given Silviera to Hart. Henderson said he for other creditors had the Hart The total claims sort, he said, was about

RUN ON BANK TOLD

MERCED (Merced Co.), Oct. half million dollars in deposits in the Farmers and Bank Merced, 20th, in two shown prepared to-day by Henry HilHard, attached to the the institution. flatly refused to discuss matters pertaining the bank. The statement shows that on July 1st, when the last there deposits Two months later deposits dwindled to Rumors that the bank was in bad straits said have been the cause the wholesale and While against liabilities of $1,300.the "cash on hand" of $7,760.11 the only one in the asset column known The item, 'bills receivable," repand the third "assets other and cash real furnture fixtures by the bank. Both are artificially established figures subject siderable change. Bills receivable, according to statement, amount and other $280,273.17.

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WILL ASSESS DEFUNCT BANK STOCKHOLDERS

Acting Comptroller Of Currency Makes Announcement

MERCED, Nov. 2,-An assessment of 100 per cent upon the stockholders of The Farmers and Merchants' National bank, suspended September 20, is officially announced today by Charles W. Collins, acting comptroller of the currency. The assessment, aggregating $100,000, becomes payable on or before December 1. "It appears to my satisfaction that in order to pay the debits of such association It necessary to enforce the individual liability of the therefore. to the extent mentioned.' reads the official statement of Mr. Collins, following with the information that Henry P. Hilliard, receiver, is instructed to take any necessary proceeding by suit or otherwise to enforce the stockholders' liability. While the official order requires payment not later than December Mr. Hilliard explains that under the of the treasury department the stockholders, by meeting certain stipulations, may obtain extension of time. To do this, how. ever, each shareholder must pay 25 per cent of the assessment by December and provide written obligation satisfactorily guaranteed to pay 25 cent additional on or be. fore January 1, 1927, 25 per cent on or before February 1, 1927, and the remaining 25 per cent on or before March 1927. The notice of assessment issued today through the office of Mr. Hilliard accompanied by any other explanation, nor was the condition of the defunct bank otherwise discussed. The office of T. A. Mack. county sheriff, has been asked by Mr. HilHard to endeavor to locate certain chattels held by the bank and thought to been or sold illegally, The also is advertising rewards for recovery, reading as follows: "One hundred dollars reward-I will pay above reward for information that will convict any person or persons of stealing or illegally taking, concealing or disposing of any COWS, horses or other chattels or any other property formerly owned by The Farmers and Merchants' National Bank of Merced, now vested in me," signed, Henry Hilliard, receiver. Six head of cattle had been recovered this afternoon through the efforts of county officers, it was announced at the bank.

LAST RITES HELD CLOVIS, Fresno Co., Nov. Funeral were held this afternoon for -months Angelina La Cava, daughter of Mr. and Mrs. Jene La Cava, died in Fresno yesterday. Burial in Clovis cemetery. Arthur Boice had charge of arrangements.

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LIBEL SUIT FOR $20,000 FACES INDEMNITY CO.

Merced Agent Also Made Party to Action for Damages proprietor of a loan and business in Merced. through his attorney Edward Bickmore. filed libel action the Superior Court against the International Indemcorporation of Los Angeles. ad Evans. as agent. asking for $20,000 damages. The recites that since September 15. 1925. Brown had been representing the defendant corporation. that and A. Evans circulat and libelletter. reciting in effect that paid by policy holders not paid and that paid within five days from the date of the service of the notice the policies be that the defendants intended letters mean that Brown had embezzled money received by him the premium for policies and not warded or paid it corporaThe action indirectly arose from the late failure Farmers Merchants bank of this city.

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NATIONAL BANK AT BUSINESS TO-DAY

Friends Visit Institution And Greet Officials; Bishop Man At Head

MERCED (Merced Co.). Jan. 14.Opening its doors to-day the First National Bank in Merced welcomed many depositors and visitors in the quarters occupied by the Farmers Merchants' Bank which closed nearly four months

Many prospective depositors hand and the visitors called extend wishes to the the project. The headed by George, formerly with the First National Bank Bishop On the who to to the of the bank associated the PacificSouthwest Bank of Los Angeles managing officer the Main Street office Others the directorate Emmitt McNamara. member family Merced and for past engaged estate business here, and Ford. comes from Owens Valley where he large land owner The remaining director, member law firm at Bishop.

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Bank Receiver Sues Stockholder MERCED

Hilfor the Farmers and Merchants bank, has filed suit superior against Josephine Bird. one of the The defendant. to the complaint, shares of stock assessed $100 The plaintiff asks for $8000 and cost of suit.

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RECEIVER FOR

MERCED, June to Henry P. Hilliard, receiver the Farmers Merchants Bank, were filed in the Superior Court yesterday M. Peck to recover $32,620.25, said to be deposit, and Allan B. Ruddle, to recover $4681.25 on deposit. According th: petitions filed W. B. Bunker of Peck. Bunker & Peck, San Francisco attorneys, the plaintiffs presented Hilliard with claims against the bank for the money, but the claims were rejected.

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NAME BANK RECEIVER

Co., of Henry P. Hilliard to the receivership of the First National Bank of Riverbank was made last night. Hilliard sucbeeds Charles A. Labree who resigned to accept the receivership of Inyo county banks which failed recently, due alleged fraudulent operations of W. W. and M. Q. Watterson. Hilliard is now receiver of the Farmers and Merchants National bank Merced and formerly served in the same expacity at Newman It is rumored that be also will be appointed the First National Bank of Chowchilla of which Labree has been receiver since its failure In the early summer. Labree, who has been an employe of the Federal Government for seven years is now leaving to enter the employ of the banking department. Four of five Inyo county banks which failed are state banks and he will have charge of them. He left yesterday with his wife for the southern part of the state.

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New Receiver Chosen To Serve At Riverbank

Henry P. Hilliard Appointed Successor to Charles La Brea; Acted in Similar Capacity at Newman; Now at Merced

Oct. Hilliard has been appointed receiver of the First Na. tional bank of Riverbank, to succeed Charles A. LaBree, whose resignation was accepted at the same lime by the comptroller of the currency at Washington, C.

From Merced Hillfard is now received of the Farmers' and Merchants' National bank at Merced and formerly was receiver at Newman. LaBree has resigned in order to take over the receivership of the Tayo county hanks, which TOcentiy closed their doors. A nafiocal bank receiver for seven years gast, he is nuw leaving the federal service to enter the employ of the state banking depart. ment. Four of the five Inyo county banks which falled are state banks and be will have charge of these. The fifth, nntional bank, will be in other hands.

La Bree Leaves LaBree, with his wife, left 305 terday for the southern part of the state. Hilliard, It Is rumored, will also be appointed receiver of the First National bank of Chow chilla, from which position La Breo resigned at the time he gave up the Riverbank receivership.

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Bank Receiver Pays New Dividend

MERCED. Dec. Merchants National bank dend checks aggregating representing second dividend of 10 per cent and also supplemenfirst dividend for those who filed their claims were being distributed from the First National bank. will make total of paid the creditors the and chants' bank since Sep tember 20. 1926. the date of fail-in collected to date more than $762.which paid back rowed and deposits, secured excess The interest collected the receiver more than met expenses of the trust to date.