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BANK FAILS TO OPEN DELTA. Colo., Sept. 21-(U.P.)The First National bank of Delta failed to open its doors today after the suicide last night of Walter G. Hillman. 42. vice president Hillman shot himself to death at his ranch home near here, leaving no note of explanation.
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Delta, Colorado, Banker Ends Life With Rifle Bullet DELTA, Colo., Sept. vice president cashof the First national bank Delta, suicide night with rifle. The bank failed to open this morning Dr. A. H. Stockman, president of the First national bank, announced that the bank be closed temporarily, pending further investigation of an apparent shortage. He refused to make any statement concerning the condition of the bank. Hillman killed himself in an isolated shack at remote spot on his ranch. His brother went in search him after he had disappeared, and made the discovery Dr. G. E. Shaffer, acting coroner, decided that an inquest was unnecessary. KANSAS CITY, Sept. 21 K. Roberts. chief national bank aminer here, announced today that evidence defalcation had been uncovered an examination of the First national bank of Delta, Colo., which was closed this morning, following the suicide of Walter Hillman, vice president and cashier the institution The amount of the shortage had not been determined, Roberts said.
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DELTA BANK SHORTAGE MAY REACH $120.000 ACTUAL FIGURE UNKNOWN UNTIL EXAMINERS REPORT; MANY WILD RUMORS HEARD Prosperous Slope Town Seriously Affected Both by Money Stringency Resulting from Bank Failure and Broken Confidences; Examiners Complete Work and Depart; Grand Jury Indictments Looked For. By FRANK H. REEDS failure of the First National Bank of Delta, two weeks ago, following the suicide of Walter Hillman, vice president and cashier of the has not only seriously affected the business interests Delta and the sursounding territory, but the morale of the city as well, the general feeling of depression existing over that otherwise prosperous little city, probably having as deterrent effect on its business interests has the actual financial stringency. While this condition is gradually improving, under the guiding hand of those of sound. sober judgment, cannot be wiped away until actual within the bank are known, and the people of Delta begin the rehabilitation of their financial structure just as other eities have been called upon to reconstruct in material way following fires *and other devastating disasters. Just when an authentic report the bank's condition will be made public, remains in doubt today as much as on Saturday two weeks ago, when the doors of the Institution were closed. W. N. Male, national bank examiner and his assistant, Murray, completed their labors and departed from Delta Wednesday evening. Their findings will be reported to the of the currency in Washington and is from that official the first actual report must come, Assurances have been given by the comptroller that such report be given at the earliest possible moment. There is wild speculation as to the actual condition within the bank. ranging from the estimates of "not to exceed made public by Stockham on the day the bank closed. to rumors that the bank will be able to pay little If anything to those who had their funds to calm review of the situation in the most thorough manner possible, leads the belief that the shortage will be in the neighborhood of $120.000. and that in the final adjudication of the affairs of the bank. dividends may total fifty per cent even alightly above that figure. These estimates are not based upon any actual knowledge of facts found by the examiners, and may be greatly at variance with facts, but they are based upon such an investigation as is now possible. Bank Closes Following Suicide Of the Cashier The bank closed Its door Saturday morning. September 21st, following the finding of the dead body the vice president and cashier, Walter G. Hillman, at his ranch near Cedaredge, late Friday night. N. Male, national bank examiner, had arrived in Delta for an examination of the books and records of the bank. Mr. Hillman is said to have told A. H. Stockham, president of the bank, and Seth Kyffin, assistant casheir. that he would never go to the Friday morning Mr. Hillman did not report at the bank as usual. Later in the day his brother. E. Hillman, was notified of his absence, and search was begun. Late that evening this search led to the Hillman ranch several miles from Delta, where the dead body was found, Hillman having fired shot from rifle through his head. The Delta county coroner was notified of the finding of the body. and Edward Martin, Delta undertaker, was called to take charge of the body News of the death was kept secret Friday night. but It leaked out early Saturday morning. and was general knowledge over Delta early in the day. With the arrival of the hour for the opening of the bank, formal notice was posted on the door, that it was closed and in the hands of the bank examiner. Statement Issued By the President Early Saturday statement was issued by A. H. Stockham. president of the bank and pioneer Delta county financier, that an examination of the bank had disclosed that some $22,000 of the funds of the bank had been taken by the vice president, and that in addition "there is about of paper in the bank due to the of Walter G. Hillman." Further down in the statement it was said "at the present time would seem that the total loss would not exceed including any possible losses on real owned by the bank. This ought upon liquidation of the bank, save something for the of the bank as well as pay the depositors in full." It had been matter of general over Delta for some time past that Mr. Hillman was involved financially. and the general opinion at the time was that the amount of the shortage would grow. and that the loss to the depositors would probably be heavy one. Mr. Male advised the national department of the affairs at the bank, and H. O. Murray ordered to Delta to assist in check of the affairs of the bank. Later James G. Hammond, experienced bank receiver, was named to that capacity. and he now in charge of the bank. The examiners completed their examination late Wednesday, and departed from Delta. but without making any statement there as to conditions. Hammond Silent On Conditions Receiver James G. Hammond no statements to make as to affairs within the bank. advising that the examination was made by the examiners, and that he would not have their complete report until was received from the comptroller. In the meanwhile K. H. Woodward, representative of the Kansas City Federal Reserve bank of Kansas City, had arrived in Delta to check over the rediscount paper in which his bank is interested. Leniency Promised Bank's Creditors Thursday Mr. Woodward, while refusing to discuss the details of the notes in which his bank interested, stated that he was "very well pleased with conditions" as he found them. He stated further that leniency in the settlement of indebtedness, will be shown to the bank's creditors whose notes had been rediscounted by the bank. He commented on the favorable crop conditions existing over the Delta district. and expressed the belief that much this indebtedness would be liquidated this fall and winter when receipts from crops are Mr. Woodward commented on the excellence of much of the paper held by his bank, remaining silent. however, on the general report that numerous fraudulent notes had been found in the bank, placed there apparently to cover shortages. "Those good notes are good today the day they were taken by this bank. and those who gave them will be given every by the bank represent." he declared. Forged Notes Found In Bank Soon after the bank closed, It had been disclosed through very made by Mr. Male, that number of forged notes were in the bank. From the best informatime tion available, is now believed these notes total $30,000. and that they bear the signatures of two Delta business men and four well known and wealthy livestock men and farmers of that county It is fault. possible that still other forgeries disclosed. increasing County Funds Were Withdrawn That the affairs of the bank had been in condition for some time, is shown by the withdrawal early in August of the Delta county funds on deposit in the bank. A. Bowle, county treasurer, had some $15,000 in county funds on deposit in the bank on August bond issued by 1st, secured by Surety comthe August he was adEarly in pany. vised by this bonding company, of Continued on Page 6)
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DELTA BANK RECEIVER MAKES FIRST REPORT Statement Given Out as to the Assets and Liabilities On Defunct Bank on Date of Closing But No Esitimate as to the Actual Value of Notes And Collaterals. brief summary of made by the federal receiver the defunct First National Bank of Delta, United States Senator Lawrence Phipps sent the following telegram under Tuesday's date to the editor of The Daily Sentinel: Nov Walter Walker Editor Daily Sentinel. Grand Junction Colo The receiver's preliminary port just checked over in Wash ington statement of dition of First National bank Delta as of date of its suspension September follows Assets. bills receivable four dred seventeen thousand twenty two dollars Cash on hand twenty thousand three hundred eighty eight dollars dred sixty six thousand one hun dred eighty three dollars totaling hundred three thousand hundred ninety bilities unsecured four hundred six thousand eighty hundred fifty seven Deposits pledge and dollars as five hundred ninety seven dollars rediscounts secured by pledge of bank's assets aggregating thirty two thousand two hundred dollars, collateral ninety one thousand six hundred twenty five dollars total ties five hundred forty and eighty dollars. Trust this in. formation prove of value and benefit to local interested LAWRENCE PHIPPS. Theron Francis Drake of Palisade through the city this morning San Diego, where will begin training the hospital corps of the United States navy He was enlisted hospital apprentice, recruiting office application the local office in the post Sickenberger for Denver spend friend Denver
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Delta Bank Depositors Are To Be Protected Denver Post Denver, said today that negotiations which, successful, will result in an adjust ment of whatever shortage exists in the First National bank of Dolta 60 that depositors will incur no losses are under way The are being carried on by Kyffin, one of the three men federal charges in connection with the closing of the bank, Kyffin's attorney, John R. Charlesworth, of Delta. Charles Moynihan, attorney for the federal bank receiver aild others, said that neither nor Kyffin would discuss the negotiations length. He said, however, they admitted were conference with representatives of the bonding com. pany.
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NEGOTIATIONS UNDER WAY FOR PAYING TOTAL DEBTS OF DEFUNCT DELTA BANK Seth J. Former Assistant Cashier and One Of the Three Indicted for Failure of the Bank, Reported Negotiating for Complete Settlement of Affairs of the Institution, Paying Depositors in Full. (Associated Press Leased Wire.) Denver Post said today that negotiations which, if successful. will result in an adjustment of whatever shortage exists in the First National bank of Delta. Colo., S0 that depositors will incur no losses, are under way here. The negotiations are being carried on by Kyffin, one of the three men facing federal charges in connection with the closing of the bank. and Kyffin's attorney, John R. Charlesworth of Delta. Charles J. attorney for the federal bank receiver and others, said that neither Charlesworth nor Kyffin would discuss the negotiations at length. He said. however, they admitted they were in conference with representatives of a bonding company The bank closed in November the day after W. G. Hillman, vice president, committed suickle. It was said at that time the shortage might reach $100,000. In addition to Dr. A. H. Stockman. president, and Carey B. Adams, former cashier of the bank, are facing federal charges. Adams is believed to be in Mexico, it was said today.
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THE STOCKHAM CASE IS SET FOR WEDNESDAY Several Witnesses to Be Summoned from Delta; Carey Adams and Seth Kyffin to Testify expected that several Delta residents will be in Denver much of this week. summoned wit. nesses for the and for the defense, in the case against Dr. president the defunct First National bank. which closed its doors something over year ago. The Stockham case been set for trial fore Judge Symes in the federal court on Wednesday, November 19. In addition to the witnesses. probable that number interested spectators will be ent from Delta, to of the case. Seth Kyffin. former teller. and Carey former cashier the bank. both serving sentences in the federal penitentiary Leavenworth connection with the failure the bank, both be Denver. appear as witnesses for the ernment The government claims $80.000 was lost to the depositors the bank through the manipulations Adams and The latter two pleaded guilty when arraigned before court. and both are now serving prison sentences Stockham is charged with conspiracy violate the national banking laws. making false ports to comptroller the currency and misapplication funds the bank
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UNPROFITABLE DIVIDENDS Col. (UP) - --Dividend Delta, checks, mailed recently to depositors of the First National bank, in several instances, proved to be liabilities. The final dividend, paid by the receiver of the bank, / was one per cent and, in many cases, amounted to only two cents. The checks were drawn on a Denver bank and, under the banking rules, it cost five cents to cash each one. Therefore, if a depositor took advantage of the final dividend it would cost him three cents. Argentina's present oat crop is 35 per cent greater than that of 1934.