12847. Montezuma Trust Company (Albuquerque, NM)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
April 1, 1915*
Location
Albuquerque, New Mexico (35.084, -106.651)

Metadata

Model
gpt-5-mini
Short Digest
93c3acea46b6462c

Response Measures

None

Description

Articles from April–May 1915 describe Harry P. Owen as receiver of the Montezuma Trust Company and lawsuits by the receiver against former directors alleging mismanagement and bad loans. No articles describe a depositor run; the bank had been placed in receivership (i.e., suspended) and appears to be closed with a receiver appointed.

Events (3)

1. April 1, 1915* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Alleged negligence and mismanagement by directors; large insider/undercollateralized loans and overdrafts (e.g., Gillenwater overdrafts, loans to Globe Store Co. and Del Rio Electric Light & Ice Co.).
Newspaper Excerpt
Harry P. Owen, receiver for the Montezuma Trust company
Source
newspapers
2. April 4, 1915 Receivership
Newspaper Excerpt
Harry P. Owen, receiver for the Montezuma Trust company, said ... (court business noted Apr 4, 1915).
Source
newspapers
3. May 9, 1915 Other
Newspaper Excerpt
Receiver Alleges Affairs of Trust Company Were Mismanaged; Wants to Recover Alleged Losses. Harry P. Owen, receiver for the Montezuma Trust company, yesterday afternoon brought suit against the former directors ... asking that an accounting be taken ... judgment be entered against the defendants for the amount.
Source
newspapers

Newspaper Articles (2)

Article from Albuquerque Morning Journal, April 4, 1915

Click image to open full size in new tab

Article Text

# TWO DIVISIONS OF # DISTRICT COURT IN # SESSION AT SAME TIME The district court was in session in two divisions yesterday, Judge H. F. Raynolds presiding in the district court room upstairs in the court house and Judge E. L. Medler in the Judge's chambers downstairs, Judge Medler heard the Fernandez company's petition for an injunction against Elias Frances, whom the petitioner charges with allowing stock to trespass on its land. The damage suit of Francisco Gomez against the Santa Fe railway was on before Judge Raynolds. The plaintiff asks $2,000 damages because, he says, he was ruptured while lifting a heavy pushcar. He was employed as a section laborer for the railway. The jury was selected. The jurors are: J. R. Riviera, Frank Ralph, A. W. Hayden, William Kieke, Serafin Garcia, Higinio Montoya, Andres T. Chavez, Mariano Garcia, C. E. Boldt, Ysidro Lopez, Pedro Elwell and Benito Perea. Harry P. Owen, receiver for the Montezuma Trust company, said the Del Rio Electric Light & Ice Co. of Del Rio, Tex., offered to pay 10 per cent on a $4,000 note, executed by W. H. Wolff to the company and secured by Del Rio bonds. He asked that the court order the acceptance of the Del Rio company's offer. Wolff was declared a bankrupt and the note listed in his schedule as a liability, the receiver said. The Southwestern Brewery & Ice Co. brought suit against Charles Grande, asking judgment for $296.40. District Attorney Manuel U. Vigil filed a petition asking that the assessment of the Charles Ilfeld company's stock be reduced from $180,000 to $120,000 and that the assessment on its improvements be cut from $50,000 to $36,000. The district attorney found the assessment was unjust.


Article from Albuquerque Morning Journal, May 9, 1915

Click image to open full size in new tab

Article Text

# OLD DIRECTORS # OF MONTEZUMA # SUED BY OWEN Receiver Alleges Affairs of Trust Company Were Mis- managed; Wants to Recover Alleged Losses. Harry P. Owen, receiver for the Montezuma Trust company, yester- day afternoon brought suit against the former directors and Pres. W. H. Gillenwater, asking that an account- ing be taken: that the amounts lost by stockholders be ascertained, and that judgment be entered against the defendants for the amount. Burk- hart & Coors and M. E. Hickey, act- ing for Owen, filed the complaint with District Clerk Thomas K. D. Maddi- son. W. H. Gillenwater, Frank A. Hub- bell, J. C. Baldridge, A. B. McMillen and W. R. Whitney, directors of the trust company, are named as defen- dants. At the time of its incorporation the trust company had assets of more than $100,000 invested in first mort- gages on improved real estate, and the value of its stock was at least $81,000, according to the complaint. Negligence Is Alleged. The complaint alleges that by rea- son of the negligence and mismanage- ment of the directors, a portion of the assets of the corporation was lost. The complaint alleges that Gillen- water lent himself, "under the guise of overdrafts," amounts which imme- diately before suspension amounted to $41,014.25. He gave himself credit on the company's books by cancelling certificates of stock in the corpora- tion, "which were of less value than the amount of said overdraft," it is said. Gillenwater is charged with lending $26,000 to the Globe store company, of which he is alleged to have been principal stockholder without ade- quate security; with lending $5,730.56 to the Del Rio Electric Light & Ice Co., of which he is said to have been a stockholder. It is said the loan was not repaid.