Nogales National Bank (Nogales, AZ)

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Due to heavy withdrawais of deposits the Nogales National Bank closed its doors Monday morning. Shortly after closing, A. M. Gillespie, president of the bank, gave the Nogales International the following statement: "Due to persistent heavy withdrawals of deposits and inability to collect in loans sufficient to overcome this loss of funds, for the best interest of its loyal depositors the Nogales National Bank has been ordered closed by its board of directors." Officers of the Nogales National are A. M. Gillespie, president; E. K. Cumming, vice-president; A. F. Kerr, cashier; and Alan Gillespie, assistant cashier. The directors are the above named officers and Duane Bird and Victor J. Wager. The bank opened as usual at 9 o'clock Monday morning and three quarters of an hour later closed. Deposits made during the 45 minutes will be returned to depositors, it was said Monday. A national bank examiner is expected here tomorrow to take charge of the institution and it is the concensus of opinion that depositors will not lose much, if any. The Nogales National was founded in 1917. The September 29th statement of the Nogales National Bank showed it had deposits of $488,223.17 and surplus of $50,000. Resources then amounted to $731,664.61. With the closing of this bank, and the Sonora Bank & Trust Company ten days ago, Nogales now has but one bank, the First National Bank, which withstood a run Monday in fine shape, and has ample resources to withstand any kind of an onslaught. Business firms, former depositors

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THE NOGALES NATIONAL BANK CLOSES ITS DOORS (Wednesday's International) Due to heavy withdrawals of deposits the Nogales National Back closed its doors Monday morning. Shortly after closing, A. M. Gillespie, president of the bank, gave the Nogales International the following statement: "Due to persistent heavy with drawals of deposits and inability to collect in loans sufficient to overcome this loss of funds, for best interest of its loyal deposi tors the Nogales National Bank has been ordered closed by its board of directors." Officers of tne Nogales Nation al are A. M. Gillespie, president; E. K. Cumming, vice-president; A. F. Kerr, cashier; and Alan Gillespie, assistant cashier. The directors are the above named officers and Duane Bird and Vic tor J. Wager. The bank opened as usual at o'clock Monday morning and three quarters of an hour later closed. Deposits made during the 45 miuutes will be returned to depositors, it was said Mon day. A national bank examiner is expected here tomorrow to take charge of the institution and it is the concensus of opinion that depositors will not lose much. if any. The Nogales National Bank was founded in 1917. The September 29th statement of the Nogales National Bank showed it had deposits of $488. 223.17 and surplus of $50,000. Resources then amounted to $731,664 With the closing of this bank, and the Sonora Bank & Trust Company ten days ago, Nogales now has but one bank, the First National Bank of Nogales, which withstood a run Monday in fine shape, and has ample resources to withstand any kind of an on slaught. Business firms, former depositors in the Sonora Bank and the Nogales National, are now depositing in the First National and no apprebensbion is felt whatever so far as Nogales' lone bank is concerned. The First National yesterday received $200,000.00 in currency to be added to funds on hand in paying depositors desiring their money. The public has great confidence in the First National because it is widely known as one of the strongest banks in the entire Southwest.

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Robert Smith, government ciai, has returned from a vaca tion trip to California. Upon be the team of the his Bobcat return found Elks that bowling cellar tournament was in the in the league standing of position Bob is captain the Bobcats. The Texaco Super Service at the corner of Grand Eim street, been Del station, avenue leased to and Moslander, has accord for ing to Charles T. Fraizer, mer operator. Del Moslander well known in Nogales and has had over ten years of automobile experience. Tony Hervatin of the Concor dia Club has given up the lease to Al Sands, formerly of the old Anchor Bar, Nogales, Sonora, and has gone to Agua Caliente, a he engage in ing B.C., which for month's will rest, follow business in Nogales, Sonora. The Circle (Z) guest ranch polo team is scheduled to play the U. of A. picked team at Tucson to day, at 3 p. m. Tomorrow the University team will. come to Circle (Z) for the second game the at m. on the of 2.30 the series, p. play ranch to start polo ranch near Nogales. Wong Sai Chong, who was taken into custodoy after fleeing heee from Mexico, and held as since October 23, died was 64 years at Chong prisoner the armory Tuesday of evening. age his was for a of the many time of years death, resident and Hermosillo, Sonora. W. L. Sibbley, national bank ex of Texas, arrived and of National recently the aminer Nogales Dallas, assumed bank charge which doors here said was pro 30. closed Sibbey its that it November a within The appointed bable appointment that receiver several will would be days. made be by the comptroller in Washigton. Harry Noon Renshaw, son of Harry R. Renehaw, has again been honored at Randolph field, is a cadet in near Harry San Antonio, Texas, the aviation out where at present. Harry, of 212 was one of to make a soto corps the class first of 20 cadets, fight been cadet and captain He has also president elected of the 1931 cadet class. Morris Newman, representing S. Gumpert Co., Inc., baker's specialties of Los Angeles, was a visitor this week. He was on of the Arizona Nogales accompanied by company's his tour B. Los Ma Angeles manager, Percy yer and wife, whose home is in New Jersey. All were delighted with ambos Nogales, especially John Hughes' famous Cave club, Nogales, Sonora. The remains of Mrs. P. S. Thomas, formerly of Nogales, who died at Phoenix recently, were shipped to Torono,Canada, She a re burial in for questing burial. left Toronto. will Mrs. was the of 20,000 Thomas English pounds lucky winner in the Free State Hospital Sweep Stake races held at Manchester, England, November 28. She survived by her husband and 2 sons. The first carlot of tomatoes to be shipped through Nogales from the West Coast of Mexico during the 1931-32 season arriv ed here last Saturday. It was from the was shipped district, Sonora, and Huatabampo shipped by Al Burnand. The tomatoes were of very good quality. The first carload of string beans from the West Coast will arrive here about the 8th of Dacember. It will come from the Rosario district. The fund of the Associated Charities, amounting to approx is tied up National imately Nogales $1,100, Bank, accord in the ing to Rev. O. A. Smith, mana ing director of the local organi zation. 'It is very unfortunate, especially at this particular time with so much need for funds, that the funds of the organization are tied up by the closing of the bank," said Rev. Smith.

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BANK RECEIVER FROM BISBEE C

L. Ezell of El Paso, recently William Beam and Burr Lillynamed by the comptroller of curwhite of Bisbee, spent the week-end rency at Washington, as receiver in Nogales visiting with friends and of the Nogales National Bank, arattending to business matters. rived here Monday.

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HARDY NAMED ATTORNEY FOR BANK RECEIVER Charles L. Hardy, member of the law firm of Hardy & Hardy, has been appointed attorney for the receiver of the. Nogales National Bank, which closed its doors a few weeks ago. Notice of his appointment was received by Hardy from Congressman L. W. Douglas at Washington, the appointment having been made by the Comptroller of Currency.

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WITH BANK Gien Nevius, formerly with the Nogales National Bank, accepted A postion with the reciver of the bank the first of the week.

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Bonsal Noon has been named attorney for the Nogales National Bank. Instructions to appoint Noon were received from the Comptroller of Currency at Washington by W. J. Donald, receiver of the bank.

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SANDBAGGING THE BANKERS An insight into the probable cause of the failure of the No gales National Bank in Nogales, and other banks in Arizona, is given in the May "Plain Talk" by Congressman Wright Patman of Texas, the man who forced the resignation of Andrew Mel lon as Secretary of the Treasury. is entitled "Sandthe of for foreign put to of bagging out The the worthless at huge "rigging" story commissions Bankers" the bonds, and market J. tells P. Morgan and other Wall Street international bankers, Currency by and the Comptroller of the his force of bank examiners. A specific case of the wrecking of the First National Bank of Luray Virginia, which was "sandbagged" into calling a of local loans, ruining man nearly number every business in town, and buying $210,000 worth of worthless foreign bonds, is given. Following the "suggestion," which, coming from the Comptroller's office is tantamount to an order, by the bank exami ner that loans be called and the proceeds invested in foreign bonds, high pressure salesmen from Wall Street bond bouses appeared in Luray a few days later. Plain Talk magazine, which is from Washington, D. no words C., published minces in charging Mr. Mellon with causing nine tenths of the present business depression in wrecking so many banks and so many local busi nessesses. The loss from local loans over a period of years has been 1%, Plain Talk says, while the loss from Morgan's foreign bond issues has been from 50% to 75% According to Plain Talk. the condition which exists in Luray, Virginia, and the action of the Comptroller's office with refer. ence to that bank, is general throughout the United States, especially in cities of 50,000 and under. Bank presidents and officials are afraid to complain for fear of by the Congressman reprisals partment, Treasury Patman De. says, as the Comptroller's office has unjust power to close any bank it wants to by alleging that any collateral it has is worthless. Mr. Patman's article urges that the so called Reconstruction Finance Corporation, which he calls the "Two Billion Dollar International Bankers' Dole Cor poration," pay back to every bank which has been swindled in this foreign bond racket. the amount of money it has been swindled out of. He further urges that the Dole Corporation then collect this stupendous sum, which he estimates as in the billions, from those who did the swindling. He declares that the Dole Cor poration can save its face by do. ing that, as it is now being run to make good all the bad loans put out by J. P. Morgan and Company, and cites the Missouri Pacific Railroad deal in proof thereof.

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BANK DIVIDEND PROMISED SOON A dividend will shortly be paid to creditors of the insolvent No gales National Bank, according to a letter received here this week by the Nogales Chamber of Commerce from the office of Comptroller of Currency. Recently the Nogales chamber of commerce telegraphed the comtroller requesting that in view of serious economic condi tions in this vicinity that a divi dend should be authorized. J. L Proctor, deputy comp troller, in answering the tele gram said that if application had not been made for a loan from the Reconstruction Finance Cor poration that a dividend would be paid from funds now in trust. The letter follows: Washington, D. C, July 12, 1932 Chamber of Commerce Nogales, Arizona. We have your telegram of to day requesting this office to in struct the receiver of the No gales National Bank to pay a dividend to creditors of his trust, and advising conditions in your city are extremely serious due to floods, strikes and general eco nomic conditions. We had previously forwarded the receiver of the Nogales Na tional Bank forms for bis use in applying for a loan from the Re construction Finance Corpora tion, the proceeds of which would be added to the cash now avail able and a substantial dividend paid to creditors. Upon receipt of your telegram we immediately wired the receiver to recommend a dividend payment from funds now available, providing the an plication for a loan from the cor poration had not been completed and forwarded to this office. You may be sure we will do every thing possible to expedite the distribution of funds to creditors of this closed bank. Yours very truly, J. L. PROCTOR, Deputy Comptroller.

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DIVIDEND CHECKS TOTALING $100,000 TO BE ISSUED TODAY BY NOGALES NATIONAL BANK Twenty Seven Percent Dividend To Be Paid By Receiver Of Nogales National; Checks Come From Washington claims are invited to come to the Here's some real good news, the kind that's needed during bank. and get "theirs." Receiver Donald said the dividthese days of the Hoover deend payment would mean that appression. One hundred thousand dollars proximately $100,000 will be turned loose in this community. It is the of greatly needed cash will be first dividend to be paid by the bank placed in circulation in Nogales and another dividend is expected to today. A 27 percent dividend is be ready within the next few to be paid by the Nogales Namonths. tional Bank which closed its doors on November 30 last year. On August 9 the dividend checks, properly made out by Receiver W. County Board J. Donald, were mailed to the Comptroller of Currency at Washington for his signature. To Get Primary On last Monday evening Receiver Donald sent a night letter to the Ballots Today Comptroller asking when the checks would be returned here. Carrying the names of approxiThe next night-Tuesday-the mately 150 candidates, ballots for Comptroller replied in a night letthe primary election September 13 ter received early Wednesday mornwill be delivered today to the office ing by Donald advising that the of the Santa Cruz County Board of dividend checks were forwarded Supervisors. Tuesday and instructing Donald to Of the candidates represented on proceed with delivery of same upon the ballot, the big majority are receipt of the checks. seeking nomination for various Donald told the Nogales Internastate, county and national offices. tional Wednesday that the checks The remainder are candidates for should reach Nogales by this mornprecinct committeemen. ing and that they should be ready About 2,400 official ballots were for delivery not later than some ordered by the county for use in the time today. All persons who filed primary. There also will be several

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Donald, receiver of the bank. It was the first dividend and is expected to be followed by another dividend within the next few months. Concensus of opinion is that the bank will pay a total of approximately 70 percent in dividends before liquidations ends. Publication in Saturday's International that the dividend checks would be received here that day from the Comptroller of Currency at Washington was the best news that Nogales had received in many months. If you were a depositor in the Nogales National call at the bank for your dividend check.

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SUMMONS W

J. Donald, Receiver of The Nogales National Bank, an insolvent national banking association, Plaintiff,

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SUMMONS W

J. Donald, Receiver of The Nogales National Bank, an insolvent national banking association, Plain. tiff,

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SUMMONS W

J. Donald. Receiver of The Nogales National Bank, an insolvent national banking association, Plaintiff, vs. Fernando E. Priego, Defendant. Action brought in the Justice Court of Nogales Precinct, in and for the County of Santa Cruz, in the State of Arizona. IN THE NAME OF THE STATE OF ARIZONA: To Fernando E. Priego Defendant, GREETING YOU ARE HEREBY SUMMONED and required to appear in an action brought against you by the above named Plaintiff in the Justice Court of Nogales Precinct, in and for the County of Santa Cruz, in the State of Arizona, and answer to the Complaint filed in said Justice Court at Nogales, in said County, within five

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LEGAL NOTICE IN THE JUSTICE COURT Of Nogales Precinct, County of Santa Cruz, State of Arizona. SUMMONS. W. J. Donald, Receiver of The Nogales National Bank, an insolvent national banking association, Plaintiff,

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reary The new hospital at the camp was and 71 patients were transient day opened assign Moned beds, 49 in the tuburcular ward and 22 in the general ward. The hospital is under the super vision of Dr. Zenas Noon, who and has a corps of assistants curses. Every attention will be given to the patients and mod hospital facilities are being is ern provided. The camp hospital is equipped for 117 patients. It of located at the western end Camp Little. The State Industrial Commis sion held a hearing at the city ball here Monday in connection with the application for compea gation of Pete Bejarano against Knight's Garage. According to Bejarano sustained 88 burns at reports vere midnight, when he Feb at ruary 14th, 1933, tached an air bose to a gasoline heater. Toose in the commis sioner's party consisted of How. ard Keener. commissioner; Don Babbit, legal referee and W. A. Walsh, reporter. Approximately 300 delegates expected to attend the five day are convention of Alianza His. Americana lodge here start next Monday. various points in ing pano from Delegates Arizona, Sonora, New Mexico and west in Texas will commence arriving ho Nogales tomorrow and local tels will be packed to capacity and during all of next week will the "convention city" bustl see ing with activity. The large fraternal-insurance order bas leased the fine Eks club rooms where sessions will be held dar. ing the five days. H. M. Ciagett, E. M. Mather and Harold C. Wayte, at the so oual meeting Tuesday night of the St. Andrew's Episcopal parisb were elected vestrymen for three-year term. The outgo. a ing members were I. Burgoon, Allan Watkies and W. C. Wine The siz members continu gar. ing on the vestry are Fred W. Hannah, N. W. Pomeroy, J. R. Curry, W. G. Simontoo, Haroid W. L. Stiles and Ralph Moory. G. Simonton was elected senior warden; J. R Curry, junior war. den; Ralph Moery. treasurer and H. L. Stiles. secretary. G. W. Arnett, piopeer mining m&n of Arizona and Sonora; is a business visitor in Nogalea from his splendid gold mining prop erty located near Opodepe. So nora. Mexico. He is accompan ied by W. H and S. A. Selle, mining partners. who with Ar nett, plan operating their Opo depe mines on an extensive scale just 29 soon as their permanent passports arrive from Mr. in this section old Mexico timer City. Arnett and is has an many friends in Nogalee. all of whom hope be and the Selig boys will make a pile of money out of their gold mine in Old Mexico. Dividend checks. amounting to approximately $40,000, were received here Tuesday by the insolvent Nogales National Bank from the comptroller of currency and are now available to creditore of that closed institution, it has been announced by W. J Donald, receiver. The dividend is 10% and is the second to be paid since the bank closed No vember 30, 1931. The first divi dend amounting to 26% was paid 17, 1932. Receiver asks that to the bank on or Donald mail August creditors their bring re ceiver's certificate which was given them when the first divi dand was paid in order to collect

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$35,000 PAID TO DEPOSITORS OF DEFUNCT BANK Nogalians who were depositors in the Nogales National Bank when it closed its doors on November 30, 1931, received a real Christmas present Saturday morning. Dividend checks were received that morning by Receiver W. J. Donald from the comptroller of currency in Washington, the checks totaling in the neighborhood of $35,000. The dividend was for eight percent and makes a total of forty five percent paid by the bank.

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Stockholders Are Assessed $44,000 Sames Orders Payment To Receiver Of Nogales National Bank TUCSON, June 14.-U.S. District Judge Albert M. Sames Tuesday declared three stockholders of the defunct Nogales National Bank liable for assessments tataline $44,200. The suits were brought by W. J. Donald. receiver of the bank. A. M. Giliespie, Alan Gillospie and A. F. Kerr were ordered to pay respectively $32,000. $1.000 and $12,000 as their-share under the double lia bility law for stockholders. In three other suits brought by Donald, against former stockholders, to colleet money equal to the value of their stock. Judge Sames sustained defense demerrers and dismissed the actions. Defendants TO those suits were Dunane Bird, E. K. Cumminb and Victor J. Wager. Defendants against whom judgment was found did not contest the cases. The bank closed Nov. 30. 1931 It had a capital of $50,000, divided into 500 shares of $100 par value each. Donald, upon instruction from fedcral authorities, first attempted to collect the double liability in Feb. ruary, 1932. Judge Sames ruled that the stockholders must pay e per cent interest from then until the judgment is satisfied. The receiver was represented by attorney

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NEW RECEIVER AT THE NOGALES NATIONAL BANK C. E. Hull of Phoenix, prominent in Arizona banking circles for the past quarter of a century, has succeeded W. J. Donald, resigned, as receiver of the Nogales National Bank. Mr. Hull, for the present, will be here the first four days of each week, and the other two days at Florence and Mesa until trusts in banks in Florence and Mesa that he is liquidating are closed, which will be about September 1. Mr. Donald, who has been receiver since shortly after the Nogales National closed its doors on November 30, 1931, is leaving soon to join his mother in Texas. The Nogales National since closing, has paid 45 percent in dividends.

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Court Approves Sale Of Bank Sale of the building and furnishings of the defunct Nogales National Bank to the First National Bank of Nogales for a cash consideration of $14,000 was approved in Tucson Monday by Federal Judge Albert M. Sames. Affairs of the Nogales National, closed since 1932, have been in the hands of the receiver acting under supervision of the court. S. D. Monahan, Nogales attorney, presented the petition for confirmation of the sale. Several suits involving former stockholders in the bank are still pending in U. S. District court.