Denver State Bank - Denver, CO

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 8, 1921
Location: Denver, Colorado (39.739, -104.985)

Metadata

Model: gpt-5-mini
Short Digest: 8f2f0b1e

Response Measures

None

Description

Article (Omaha Daily Bee, 1921-10-08) reports the Denver State bank 'now is in the hands of the state bank examiner' after admitted shortages and alleged kiting/embezzlement by its president Willard C. Mathews. No explicit run is described; the bank is under examiner control and a partial payment (25%) to depositors is being arranged, consistent with a suspension leading to closure/receivership. I corrected minor OCR spacing/punctuation but did not change names or location.

Events (2)

1. October 8, 1921 Other

Newspaper Excerpt: State Bank Examiner Grant McFerson of Colorado said yesterday the exact amount of the shortage of the Denver State bank had not been determined, but that deposits amounted to $150,000 and that he is arranging to make a 25 per cent payment to depositors as soon as the necessary court order can be obtained.
Source: newspapers

2. October 8, 1921 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Alleged embezzlement, kiting of checks and shortages under president Willard C. Mathews led examiners to take control of the bank; examiner arranging 25% payment to depositors as funds allow.
Newspaper Excerpt: Mathews is president of the Denver State bank, which institution now is in the hands of the state bank examiner.
Source: newspapers

Newspaper Articles (1)

1. October 8, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, October 8, 1921

Click image to open full size in new tab

Article Text

Indicted Dairy Head Arrested Le Roy Corliss, Charged With Embezzlement, Gives Self Up; Refning Co. Man Held. Stickel Out on Bond LeRoy Corliss, president of the Alamito Dairy company, former president of the Waterloo Creamery company and officer in other institutions surrendered to the sheriff yesterday afternoon to face grand jury indictments charing him with conspiracy to commit felony and with negotia tion of sales of stock without a permit. He was accompanied by his at torney with bond of $7 500, all ready, signed by Mrs Mabel H Cornish, pledging the St. Luke's hospital property, Twenty-second and Lake streets. Corliss was released under this bond The negotiation of sales of stocks A charge carries six counts The embezzlement charge consists of one count, having to do with the sale of 8.000 shares of Waterloo Creamery company stock at $100 a share. Other men, not yet arrested, are named on both these indictments Corliss lives at 2333 Hanscom boulevard Bondaman Refused C. E. Heaney, Drake court, for merly secretary and director of the Omaha Refining company, was rested late yesterday afternoon and F was unable to get valid bond, L. Crofoot, wealthy attorney, was ready to sign, but District Judge Troup refused to accept him, it being rule to take no attorneys as signers of bonds The other signer was Mrs. L. M. Proulx, Heaney's mother-inlaw Mrs. L C. Nash will sign bis bond at 11 this morning, Mr. Crofoot promised, and Judge Troup allowed Heaney to go home for the night The judge came down from his home to pass upon the bond Heaney is charged with embezzlement on six indictments of two counts each, as follows $2,150 on Jure 13, 1919; $6,000 on March 4. 1920; $4,500 on March 4. 1920 $700 on August 1920: $2,000 on De cember 31 1920, and $800 on March 25, 1921 President Fox of the Omaha Refining company has disap peared. Man Gives Self Up. Walter A. Stickel came in from Kearney, Neb., gave himself up and was released under a $5,000 surety bond signed by W. Lincoln Byrne agent. Stickel was president of the Colo trial Timber and Coal corporation, in which Thomas H. Matters was interested The charge against Stickel is a'ding and abetting felony Several others, including Matters, were named on the same indictment a Until recently Stickel operated line of grain elevators, coal and lumber yards in Central Nebraska. At one time he was reputed to be millionaire, N P. fcDonald of Kearney, an ex-district judge, represented Stickel. Walter A George of Omaha also accompanied him into court. Mr and Mrs. Robert Levy, who signed the $10.000 bonds under which Roy E. Karls, charged with embezzlement was released last Tuesday, notified the sheriff yesterday that they wish to withdraw Karls will be brought in today and will have to get another bond or stay in jail. Bank Sued. Suit was filed in federal court yes terday afternoon by Robert J. Webb, trustee for the Guaranty Securities company, against the Pioneer State bank and its receiver, Albert A, Schantz. to recover $300,000 Preference towards the now defunct bank by Schantz, in placing of securities delivered following the failure, is charged by Webb Former president of the bank and Guaranty Securities company Willard C Mathers. faced District Judge Troup yesterday to answer charges of embezzlement of $300,000 belonging to bank depositors, and for causing false entries to be made on the books of the bank Judge Troup fixed his bond at $5,000, which was given by C. D. Armstrong, real estate man Charged With Embezzlement. Mathews is charged with embezzlement of $200,000 on November 15 1919: $75,000 on March 18, 1921, and $25,000 on May 18. 1921, all of these moneys being the assets of the Fioneer State bank. Last spring, when the two institutions failed, the state guarantee fund was drawn on for $300,000 to pay the depositors of the bank It is charged that Mathews. in 1920, with intent to deceive the examiners of the state department of trade and commerce as to the assets of the two institutions, caused entriies to be made on the Pioneer State bank books of credits to the Guaranty Securities company in order to swell the apparent resources of the latter company Accused of "Kiting" Checks. Mathews also is president of the Denver State bank, which institution now is in the hands of the state bank examiner. Mathews was charged in the Omaha indictment with "kiting checks between the Omaha and Denver banks of which he is head State Bank Examiner Grant Mc Ferson of Colorado said yesterday the exact amount of the shortage of the Denver State bank had not been determined. but that deposits amounted to $150,000 and that he is arranging to make a 25 per cent payment to depositors as soon as the necessary court order can be ob tained. Homer S. McMillan, special deputy state bank examiner. is in charge of the Denver State bank Mathews was at one time Lincoln (Tera to Page Two, Column Four.)