11228. Aetna Banking & Trust Company (Butte, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Start Date
October 22, 1906
Location
Butte, Montana (46.004, -112.535)

Metadata

Model
gpt-5-mini
Short Digest
f3ca09ea

Response Measures

None

Description

The Aetna Banking & Trust Company was closed by order of the Acting Comptroller of the Currency in October 1906 and a receiver was appointed. Contemporary reports describe assets as largely worthless and prosecution for alleged theft/fraud; the bank did not resume operations and entered receivership. No contemporaneous run is described in the articles — closure was by government action/receivership.

Events (2)
1. October 22, 1906 Receivership
Newspaper Excerpt
Robert Lyons being appointed receiver for the Butte and Washington houses of the company. ... The receiver found only $9,000 cash in the bank. Assets listed as stocks and securities ... are practically worthless. (Comptroller's statement, Oct. 30, 1906).
Source
newspapers
2. October 22, 1906 Suspension
Cause
Government Action
Cause Details
Closed under order of the Acting Comptroller of the Currency; receiver appointed after discovery of worthless assets and insufficient cash.
Newspaper Excerpt
The Aetna Banking & Trust company's bank has been closed under an order of the acting comptroller of currency, Robert Lyons being appointed receiver for the Butte and Washington, D. C., houses of the company.
Source
newspapers

Newspaper Articles (8)
1. October 23, 1906 Fergus County Argus Lewistown, MT
Article from Fergus County Argus, October 23, 1906

Click image to open full size in new tab

Article Text

BUTTE BANK CLOSED. The Aetna Appears to be in a Very Bad Way. Butte, Oct. 22.-The Aetna Banking & Trust company's bank has been closed under an order of the acting comptroller of currency, Robert Lyons being appointed receiver for the Butte and Washington, D. C., houses of the company. The Aetna was established many years ago by old-time citizens of Butte, who conducted it in a very conservative and able manner, and it was always as solid as the rock of Gibraltar under their management. They sold it some years ago, however, and the old-time founders are not in any way connected with it, nor have they had the slightest interest in it for years. A. B. Clements, the last of the founders to remain with the institution, was succeeded in the management by G. C. Kirkham, who came out from New England. and he later retired in favor of Mr. Garside, who came from Portland, Ore., and has since acted as cashier. In the old days, the bank did a very profitable business, but this fell off greatly, especially during the past year or so.

2. October 24, 1906 The River Press Fort Benton, MT
Article from The River Press, October 24, 1906

Click image to open full size in new tab

Article Text

Butte Bank Is Closed. BUTTE, Oct. 19.-The Aetna Banking & Trust company of this city was compelled to close its doors today under orders of the acting comptroller of the currency, Robert Lyons being appointed receiver for the Butte and Washington houses of the company. The assets and liabilities are approximately $600,000. The loss will fall upon wage earners principally. The institution had been used by F. Aug. Heinze during his mining operations in this city to cash the checks of his miners for those who could not get off work in time to patronize other banking houses. The bank was founded by prominent old-time citizens of the city. The othere banks here are in splendid condition, never before so prosperous. Butte never had a bank failure in its history. The banks here have behind them such millionaires as W. A. Clark, F. A. Heinze, .J ames Murray, Marcus Daly estate and the Davis estate. The Aetna bank was formerly financed by Mr. Heinze, who has had no connection with it for almost four years.

3. October 27, 1906 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 27, 1906

Click image to open full size in new tab

Article Text

BUTTE BANK FAILURE. Aetna Company Has "Nominal' Assets of $461,526.06. Butte, Oct. 26.-Eugene T. Wilson, bank examiner in charge of the Aetna Banking & Trust company, which closed its doors last week, issued a statement to the comptroller today in which the liabilities of the concern are given as $185.828.32 and the nominal assets as $461,526.06. Many of the assets are of a doubtful character. Mr. Wilson was today appointed receiver of the bank. but he believes that the appointment is only temporary, as the press of his other engagements would prevent him from acting

4. October 31, 1906 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 31, 1906

Click image to open full size in new tab

Article Text

PLAIN CASE OF GRAND LARCENY Depositors of the Failed Butte Bank Ruthlessly Robbed by the Bankers. Washington, Oct. 30.-Comptroller of the Currency Ridgely today made the following statement of the affairs of the defunct Aetna Banking & Trust company of Butte, Mont.: "A report received at this office from the receiver of the Aetna Banking & Trust company at Butte, Mont., indicates that the condition of affairs there is nearly as bad as at the branch in this city. "The deposits, including those represented by certificates, exceed $350,000. Other liabilities indicate that the total will be nearly $400,000. "The receiver found only $9,000 cash in the bank. An asset appearing on the books as a liability of the New York office for $197,000 is worthless, as no assets whatever have been found at 88 Wall street, New York, where the bank formerly conducted some sort of a branch bank. "The branch at Washington is charged with $42,400. which is worthless. Assets listed as stocks and securities amounting to $116,700 are practically worthless. "There appears to be nothing among the assets of substantial value, unless it can be found among the installment loans on real estate of the nominal value of $46.639. "That the money of the depositors is stolen is apparent. Where it has gone is not so easy to discover. The officers whose duty it is to prosecute criminals have been notified, both at Butte and in this city, and are co-operating with the receivers to apprehend and punish the guilty."

5. November 7, 1906 The River Press Fort Benton, MT
Article from The River Press, November 7, 1906

Click image to open full size in new tab

Article Text

BUTTE BANK IN BAD SHAPE. Investigation of Its Affairs Shows Assets That Are Worthless. WASHINGTON, Oct. 30. -Comptrol- ler of the Currency Ridgely today made the following statement of the affairs of the defunct Aetna Banking & Trust company of Butte, Montana: "A report received at his office from the receiver of the Aetna Banking & Trust company at Butte, Mont., indicates that the conditions of affairs there are nearly as bad as at the branch in this city. "The deposits, including those rep. resented by certificates, exceeded $350,000; other liabilities indicate that the total will be nearly $400,000. The receiver found only $9,000 cash in the bank. An asset appearing on the books as a liability of the New York office for $197,000 is worthless, as no assets whatever have been found at 88 W all street, New York, where the bank formerly conducted some sort of a branch bank. ''The branch at Washington is charged with $42,000, which is worthlese. Assets listed as stock and securities, amounting to $118,700 are probably worthless. "There appears to be nothing among the assets of substantial value, unless it can be found among the installment loans on real estate, of the nominal value of $46,639. "That the money of the depositors is stolen is apparent. Where It has gone is not so easy to discover. The officers whose duty it is to prosecute the criminals have been notified at Butte and in this city and are co-operating with the receiver to apprehend and punish the guilty."

6. November 17, 1906 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, November 17, 1906

Click image to open full size in new tab

Article Text

(Continued on page 10.) Thirty-Two Cents on Dollar. Washington, Nov. 17.-Reports to the comptroller show that the depositors and creditors of the Aetna Banking & Trust company of this city and Butte will receive about 32 cents on the dollar. At the Butte office out of over $400,000 assets over $200,000 are declared worthless by the receiver, and nearly $150,000 are doubtful. The total liability is placed at $479,000.

7. May 9, 1908 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, May 9, 1908

Click image to open full size in new tab

Article Text

# HEINZE SUED FOR $180,000 Action Brought by Receiver of the Failed Aetna Banking & Trust Company. New York, May 8.-A suit to recover approximately $180,000 from F. Augustus Heinze and A. B. Clements was begun in the supreme court here today by Rob- ert Lyons, receiver of the Aetna Bank- ing & Trust company of Butte, Mont. Heinze formerly was president and Clem- ents manager of the institution. They are asked to account for $100,000 worth of stock, a credit of $37,770 and for an- other amount of $43,000. It is stated in the complaint that in November, 1906, Heinze paid $100,000 to E. T. Wilson, acting receiver of the bank, for the benefit of its creditors. This $100,000, according to the complaint, was distributed among the creditors of the bank, reducing its liability to that extent. The receiver now asks the court that, if this application of the $100,000 was proper, Heinze and Clements be required to ac- count for stock of the bank having a face value of $100,000. They also are asked to account for alleged loss and damages to the company which it is charged were due to their negligence, unlawful acts, misconduct and fraud.

8. May 11, 1908 Coeur D'alene Evening Press Coeur D'alene, ID
Article from Coeur D'alene Evening Press, May 11, 1908

Click image to open full size in new tab

Article Text

SUES F. AUG. HEINZE Mining Man Is Asked to Return $180,000. NEW YORK, May 11.-Suit to recover approximately $180,000 from F. Augustus Heinze and associate, A. B. Clements, was begun in the supreme court here by Robert Lyons, receiver of the Aetna Banking & Trust company of Butte, Mont. Heinze formerly was president and Clements manager of the institution. They are asked to account for $100,000 worth of stock, a credit of $37,770 and for another amount of $43,000. It is stated in the complaint that in November, 1906, Heinze paid $100,000 to E. T. Wilson, acting receiver of the bank, for the benefit of its creditors. This $100,000, according to the complainant, was distributed among creditors of the bank, reducing its liabilities to that extent. The receiver now asks the court that Heinze and Clements be required to account for stock in the bank having a face value of $100,000. They also are asked to account for alleged loss and damages to the company which it is charged were due to their negligence, unlawful acts, misconduct and fraud.