11234. Aetna Banking and Trust company (Butte, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 30, 1906
Location
Butte, Montana (46.004, -112.535)

Metadata

Model
gpt-5-mini
Short Digest
a6eb8a18

Response Measures

None

Description

Newspaper articles from Oct–Dec 1906 describe the Aetna Banking and Trust company as defunct, placed in the hands of a receiver, with deposits far exceeding assets and apparent theft/fraud. No article describes a depositor run prior to suspension; the bank was in receivership and declared defunct. Later items describe reduced dividends and a $100,000 contribution by former president F. Augustus Heinze to increase assets.

Events (4)
1. October 30, 1906 Receivership
Newspaper Excerpt
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 bank in this city. ... That money of the depositors has been stolen is apparent. 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 (Omaha Daily Bee, Oct. 31, 1906).
Source
newspapers
2. October 30, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank found essentially insolvent: deposits ~$350,000, only $9,000 cash; large worthless claims against New York and Washington branches; apparent theft/fraud by officers.
Newspaper Excerpt
Comptroller of the currency Ridgely today made the following statement regarding the affairs of the failed Aetna Banking and Trust company 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 at the branch bank in this city.
Source
newspapers
3. November 23, 1906 Other
Newspaper Excerpt
Depositors of the defunct Aetna Banking and Trust company will not receive more than 10 or 12 per cent dividends ... (Butte, Nov. 23).
Source
newspapers
4. November 30, 1906 Other
Newspaper Excerpt
Receiver Wilson today announced that he had received a check from F. Augustus Heinze for $100,000 ... he contributes one hundred thousand dollars toward the bank's assets, and forwards his check for that amount. (Butte, Nov. 30).
Source
newspapers

Newspaper Articles (5)
1. October 31, 1906 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, October 31, 1906

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Article Text

IN BANK FAILURE FRAUD Butte Concern with Branches in the East Practically Without Assets. WASHINGTON Oct. 30.-Comptroller of the currency Ridgely today made the following statement regarding the affairs of the failed Aetna Banking and Trust company 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 at the branch bank in this city. The deposits, including those represented by certificates, exceed $350,000; other lialbilities 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 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. 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 worth less. 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 That 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 co-operating with the receivers to apprehend and punish the guilty

2. October 31, 1906 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 31, 1906

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Article Text

BAD STATE OF AFFAIRS. Butte Bank In Almost as Bad Condition as That In Washington. Washington, October 30.-Comptroller of the Currency Ridgley today made the following statement regarding the affairs of the failed Aetna Banking and Trust company of this city and Butte, Montana: "A report received at this office from the receiver of the Aetna Banking and Trust company at Butte, Montana, indicates that the condition of affairs there is nearly as bad as at the branch bank in this city, "The deposits, including those represent-

3. November 24, 1906 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, November 24, 1906

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Article Text

Depositors Hold Sack By Associated Press. BUTTE, Nov. 23.-Depositions of the defunct Aetna Banking and Trust company will not receive more than 10 or 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 to the comptroller.

4. November 27, 1906 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, November 27, 1906

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Article Text

Dividend Is Cut Down. Butte, Mont., Nov. 24.-Depositors of the defunct Aetna Banking and Trust company will not receive more than 10 or 12 per cent. dividends, although it was announced in Washington 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 doubt. ful assets being given instead of the estimated value as required in the repart.

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

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Article Text

Heinze's Generous Gift. BUTTE, Nov. 30. --- F. Augustus Heinze, prior to his departure for the east, prepared is most acceptable Thanksgiving gift for depositors in the defunct Aetna Banking and Trust company, the facts in the case not becoming public until today, however. Mr. Heinze is now in Salt Lake. Receiver Wilson today announced that he had received a check from F. Augustus Heinze for $100,000. Mr. Heinze was formerly president of the bank, but withdrew in 1903. Believing, however, that many depositors had not known of his withdrawal. although it was widely advertised at the time, and that through confidence in his reputation, many of his friends may have lost their money, Mr. Heinze says in his letter to Mr. Wilson, that he contributes one hundred thousand dollars toward the bank's assets, and forwards his check for that amount. The contribution should increase the bank's assets thirty per cent. Receiver Wilson, in replying to the letter highly commends Heinze's mag. nanimous act.