11231. Aetna Banking and Trust Company (Butte, MT)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 19, 1906
Location: Butte, Montana (46.004, -112.535)

Metadata

Model: gpt-5-mini
Short Digest: 1e951d90

Response Measures

None

Description

The Comptroller of the Currency closed the Aetna Banking and Trust Company in mid‑October 1906 and appointed a receiver; articles describe it as 'defunct' with deposits largely stolen or worthless assets. No articles describe depositor runs; the bank was put in receivership and remained closed.

Events (2)

1. October 19, 1906 Suspension

Cause: Government Action
Cause Details: Closed by the Comptroller of the Currency because deposits were allegedly used to finance speculative mining concerns and funds appear stolen; institution found insolvent.
Newspaper Excerpt: the Washington branch, which was closed October 19 last by his order.
Source: newspapers

2. October 25, 1906 Receivership

Newspaper Excerpt: the controller has taken charge of the main concern in Butte, and it is now in the hands of a receiver whom he appointed.; The receiver found only $9,000 of cash in the bank.
Source: newspapers

Newspaper Articles (12)

1. October 26, 1906 The Washington Herald Washington, DC

Article from The Washington Herald, October 26, 1906

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AETNA BANK CASHIER GONE. Examiner Can Find No Officials of Butte Concern. Butte, Mont., Oct. 25. - The grand jury to-day returned an indictment against F. E. Garside, late cashier of the defunct Aetna Banking and Trust Company, but it was found that he had disappeared. He left his hotel one evening and has not been seen around the town since. Though the sheriff and his deputies have been searching for him, Garside's stenographer said she knew that the cashier was still in the city, but the officers do not believe it. It has been discovered that Garside paid out a lot of money after the bank suspended, but Examiner Wilson has recovered most of it. Four hundred dollars was sent to Boston to pay salaries of several men there who appear to be on the pay roll of the bank. but Mrs. Foster. Garside's stenographer, sent an equal sum to the examiner when the latter took proceedings to obtain the money. So far authorities have been unable to find who owned the bank, or who was president and director of it. It appears that after the bank was found to be on the verge of collapse, the officials drew out and their interests passed to unknown persons. A number of suits have been begun against the bank by depositors. The Butte Smeltermen's Union is suing for $10,000.

2. October 27, 1906 The Times Dispatch Richmond, VA

Article from The Times Dispatch, October 27, 1906

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# BANK FAILURE IS # CHARGED TO THEM Prominent People to Be Arrested in Connection With Suspension of Aetna Company. WASHINGTON, October 26.-Warrants for the arrest of several persons in con-nection with the failure of the Aetna Banking and Trust Company, a branch of a Butte, Montana, institution, which was closed a few days ago by the Comptroller of the Currency, were issued to-day by the Police Court. The warrants charge conspiracy, and are for E. W. McCormick, engaged in the business of forming corporations; Raymond S. Donaldson, real estate dealer; Miss Barbara E. Kritsch-mann and John T. Hoag, the latter as-sistant cashier of the company. Mc-Cormick, Donaldson and Miss Kritsch-mann were directors of the Illinois Se-curities Company, and Hoag made an affidavit that this concern had a deposit in the bank. Hoag was arrested to-night in Chicago on information from Chief of Police Sylvester. Hoag, accompanied by his wife and daughter, was passing through Chicago en route to Spokane, Wash.

3. October 31, 1906 Evening Star Washington, DC

Article from Evening Star, October 31, 1906

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AETNABANKCONDITION STATEMENT ISSUED BY CONTROLLER OF THE CURRENCY. W. B. Ridgely, controller of the currency, has given out the following statement relative to the defunct Aetna bank of this city and Butte, Mont.: "A report received at this office from the receiver of the Aetna Banking and Trust Company at Butte, Mont., indicates that the condition of affairs there is nearly as bad as that at the branch bank in this city. "The deposits, including those representLed by certificates, exceed $350,000; other liabilities indicate that the total will be nearly $400,000. "The receiver found only $9,000 of cash in the bank. An asset appearing on the books as a liability of the New York office for $197,000 is wholly 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. Alleged Worthless Securities. "The branch bank at Washington, D. C., 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 $46,439.69. "The Aetna Banking and Trust Company is a corporation organized under the laws of West Virginia, and during the past few years there have been frequent large transfers of its stock. That the money of the depositors has been 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 cooperating with the receivers to apprehend and punish the guilty." Case in Police Court. John T. Hoag, assistant cashier of the Aetna Banking and Trust Company, which was closed by the controller of the currency about two weeks ago, and who is charged jointly with E. W. McCormick, R. S. Donaldson and Miss Barbara Kretschmann with conspiracy to defraud the United States, was arraigned in the Police Court this morning on the conspiracy charge. He pleaded not guilty and waived the preliminary hearing, as was done by all the others charged in the warrant. He was then held for the action of the grand jury, giving bond late this afternoon in the sum of $2,000 for his appearance in the higher court when required. Mr. Hoag was arrested in Chicago and was brought back to this city yesterday by Detective Burlingame. He was held in the first precinct station last night. His Statement. In regard to the charge against him, Mr. Hoag told a Star reporter today that he was not guilty of any criminal acts, but added that, as he was not yet familiar with the specific act with which he is charged, he could not make any statement at the present time. "I guess it is the men back of me that you want," commented Mr. Hoag to Detective Burlingame, according to the detective's statement. He stated that he knew of some transactions between the western office of this company and the local bank which he objected to at the time, but he denied that he was a party to anything criminal.

4. October 31, 1906 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, October 31, 1906

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LIABILITIES $600,000; CASH IN SAFE ONLY $9,000 Where Butte Bank's Money Went to is a Mystery-Assets Are Worthless and Comptroller Says the Money of Depositors Was Stolen. By Associated Press. abilities are nearly $400,000 while the Washington, Oct. 30.-A report rereceiver found only $9,000 in cash in the bank. The other assets are pracceived by Comptroller Ridgely to-day tically worthless. The comptroller from the receiver of the failed bank says that the money of the depositof the Aetna Banking and Trust Comors was stolen is apparent but where pany, of Butte, Montana, indicates it is gone is not so easy to decide. conditions there nearly as bad as at The cases in Washington and in Butte the branch in Washington. The liwill be vigorously pushed.

5. October 31, 1906 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, October 31, 1906

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MANY BUNKOED BY BUTTE SHARPS. Comptroller of Currency Discovers That Securities Are Nothing But Myths ARRESTS TO FOLLOW WASHINGTON, Oct. 30.-Comptroller of the Currency Ridgely today made the following statement of the affairs of the defunct Aetna Banking and Trust Company of Butte, Mont.: A report received at this office from the receiver of the Aetna Banking and 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 libabilities indicate that the total will be nearly $400,000. The receiver found only $9,000 in 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 has been 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 at Butte and in this city and are co-operating with the receivers to apprehend and punish the guilty.

6. October 31, 1906 Los Angeles Herald Los Angeles, CA

Article from Los Angeles Herald, October 31, 1906

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SOME ONE STOLE FROM BUTTE DEPOSITORS By Associated Press. WASHINGTON, Oct. 30.-Comptroller of the Currency Ridgeley today made the following statement of the affairs of the defunct Aetna Banking and Trust company of Butte, Mont.: "A report received at this office from the receiver of the Aetna Banking and Trust company at Butte, Mont., indicates that the condition of affairs there is nearly as bad as at the branch in this city. "Deposits, including those represented by certificates, exceed $350,000; other liabilities indicate that the total will be nearly $400,000. "The receiver found only $9000 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 38 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 has been stolen is apparent. Where it has gone is not so easy to discover. "The officers whose duty is to prosecute criminals has been notified both at Butte and in this city, and they are COoperating with the receiver to apprehend the guilty."

7. November 3, 1906 Evening Star Washington, DC

Article from Evening Star, November 3, 1906

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NEWS. FINANCIAL LOCAL The examination of the institutions doing a banking business in this District, and placed under the supervision of the controller of the currency by the act of Congress of June last, has been completed. With the exception of the cases already published, the examination has shown a satisfactory condition of the affairs. There were fourteen of these institutions, and the inspection which they have been subjected to by one of the most competent bank examiners in the force of the controller's office was most thorough in character. Pnder the terms of the law such examinations may be made at any time by the sontroller, and, in addition, regular reports are to be made, just as is done by the national banks and trust companies. It may be said in this connection that the usual examination which was made of the institutions belonging to the last-named class, and which was completed during the last few months, was also most thorough in character, so that in general it may be noted that the banking institutions of the District are being conducted in accordance with the best ideas of what constitutes good banking. The authority given to the controller by the laws above referred to was more complete than is generally supposed, for after the condition of the branch in this city of the Aetna Banking and Trust Company was discovered it was found that the law gave to the Treasury Department control over the parent company located in Butte, Mont., simply for the reason that it was a banking concern incorporated under a state law, but having a branch in this District. This latter circumstance brought the company under federal control. Under this law, which was supposed to relate only to banks in this District, the controller has taken charge of the main concern in Butte, and it is now in the hands of a receiver whom he appointed. There was nothing of special moment occurred at the meeting today of the stock exchange. The market continued to be listless and bare of orders. The tendency toward higher figures in the case of some of the securities was noticeable. There was not a great deal of trading.

8. November 19, 1906 Evening Star Washington, DC

Article from Evening Star, November 19, 1906

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AETNA BANK AFFAIRS. Controller Receives Reports of Butte Institution and Local Branch. The controller of the currency has recelved the reports from Eugene T. Wilson, receiver of the Aetna Banking and Trust Company, at Butte, Mon.. and from Robert Lyons. receiver of the Washington branch. which was closed October 19 last by his order. According to the reports the value of the assets of the institution are valued at $153,603. while the liabilities reach the sum of $469,655. The receivers do not believe the depositors will receive more than 32 per cent. The controller closed the institution because, it is alleged, the deposits were used for the purpose of financing speculative mining concerns in the west. The assets as classified in the reports are as follows: Butte office, good, $18,779; doubtful, $195,357; worthless, $203,374; total, $417,510. Washington branch. good, $8,499; doubtful, $2,000; worthless, $107,328; total, $117.827. Grand total of classified assets, $535.338. The liabilities of the Butte office amount to $389,437. and of the Washington branch to $89,498, the total being $478,935.

9. November 24, 1906 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, November 24, 1906

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DEPOSITORS DISAPPOINTED BUTTE, Mont, Nov. 23.-Depositors of the defunct Aetna Banking and Trust Company will not receive more than 10 to 12 per cent dividends, although it was announced in Washington Saturday by the Comptroller of the Currency that the prospective dividends had been estimated at 32 per cent. The conclusion of the Comptroller was arrived at because of the clerical error made by the receiver of the Butte bank in transcribing his report.

10. November 24, 1906 The Washington Times Washington, DC

Article from The Washington Times, November 24, 1906

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# AETNA BANK DEPOSITORS # WILL GET IO PER CENT Mistake in Report of Receiver Reduces Amount From 32 Per Cent Expected. Depositors of the defunct Aetna Bank- ing and Trust Company will not receive more than 10 per cent or 12 per cent dividends, although it was announced last week by the Comptroller of the Currency that the prospective dividends had been estimated at 32 per cent. The conclusion of the Comptroller was arrived at because of a clerical error made by the receiver of the Butte bank in transcribing his report to the Comptroller, the estimated losses on doubtful assets being given instead of the estimated value, as required in the report.

11. December 1, 1906 The Washington Times Washington, DC

Article from The Washington Times, December 1, 1906

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HEINZE'S DONATION MAY REACH HERE Butte Bank's Local Creditor May Get Portion of Plum. is The Washington creditors of the Aetna Banking and Trust Company may or may not profit by the donation of $100,000 made in Butte yesterday by F. Augustus Heinze. Dispatches from there state that Heinze, convinced that many people gave their confidence to the bank because they believed him connected with it, had sent a check for $100,000 to the receiver for the benefit of depositors. In fact, Heinze was not connected with the bank and had not been for, three years. He was in no way liable. It was pure donation "We can't tell anything about it till we hear from the receiver at Butte," said Assistant Comptroller Kane this morning. "No, we do not know whether Heinze intended it for pro rata distribution among all creditors of the bank, or merely for those in Butte." "But could the make such a gift, through the comptroller, without subjeeting it to the claims of all creditors, whether in Butte or in Washington? Mr. Kane was asked. "That would depend on its terms Doubtless the money will be distributed on the terms on which it was given and accepted." Which means that if Heinze has given his $100,000 for the benefit of his unfortunate neighbors and friends in Butte, they will get all of it and the Washington depositors will get none. If given to all the depositors, pro rata, It would produce something less than 30 cents on the dollar of claims.

12. August 25, 1911 The Searchlight Culbertson, MT

Article from The Searchlight, August 25, 1911

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# NEWS OF MONTANA Important Happenings of the Week Briefly Told. # HEINZE DODGES OFFICERS. Papers in $250,000 Suit Ready for Him When He arrives in Butte. Butte.-F. Augustus Heinze, one time copper king in Montana who, single handed, forced the Amalgamated Copper Company to suspend for a time all its mines and smelters in one of the most memorable industrial struggles in the country, played hide and seek with process servers, who were seeking to serve him with papers in a criminal conspiracy suit, brought by Robert Lyons, receiver of the Aetna Banking and Trust Company, to recover a quarter of a million dollars. Tips Sent Off to Heinze. Mr. Heinze arrived in Butte unexpectedly. It is his first visit to the city for more than a year. Mr. Lyons had expected to spring the suit as a surprise, but some official tipped it off and Mr. Heinze went into hiding. Not a trace of the former copper king's whereabouts could be learned. Receiver Lyons has been waiting for three years to get a personal service upon Heinze in this action which abounds in sensational claims. It is alleged that Heinze had secured $250,000 through a criminal conspiracy as result of which the stockholders had been defrauded. An involved series of high finance deals, through notes given for cash and the securing of control of the Aetna Banking and Trust Company by means of juggled paper, backed only by personal guarantees, are recited in the complaint in connection with a number of sensational allegations involving the disbursement of the Aetna bank's money. Claim $250,000 is Still Due. The Butte Evening News was given $23,715 upon the guarantee of Mr. Heinze; the Montana Ore Purchasing Company, a Heinze concern, $87,117, also upon the sole guarantee of Heinze. Heinze, himself, took $29,203 and gave his note to the bank as a guarantee. The United Copper Company secured $40,000 through drafts Indorsed to Cashier Clements. Heinze in 1906 voluntarily paid over to the receiver $100,000 for the benefit of stockholders, but the receiver refused to accept it. The money was finally accepted by E. T. Wilson, then receiver of the Aetna bank, as due upon Heinze's double liability as a stockholder. Besides this it is alleged that $250,000 is yet due.