1300. Globe National Bank (Denver, CO)

View Charter #11623 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
11623
Charter Number
11623
Start Date
September 19, 1925
Location
Denver, Colorado (39.739, -104.985)

Metadata

Model
gpt-5-mini
Short Digest
a8574220

Response Measures

Full suspension, Books examined

Other: Placed in hands of national bank examiner and later receiver appointed.

Receivership Details

Depositor recovery rate
62.5%
Date receivership started
1925-10-01
Date receivership terminated
1935-04-18
OCC cause of failure
Fraud
Share of assets assessed as good
51.8%
Share of assets assessed as doubtful
28.5%
Share of assets assessed as worthless
19.7%

Description

Contemporary press reports (Sept. 19, 1925) state a run precipitated by false rumors forced officers to close/suspend the Globe National Bank of Denver; bank examiners took charge and a receiver (L. B. Bromfield) was appointed in early October 1925, indicating permanent closure. Random misinformation here is general false rumors (not a single corrected misreport), so random_run is False.

Events (5)
1. February 27, 1920 Chartered
Source
historical_nic
2. September 19, 1925 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of false rumors regarding the bank's condition led depositors to withdraw funds; reports say approximately $30,000 paid out in first half hour and directors closed the bank when heavy withdrawals threatened reserves.
Measures
Officers closed the bank for the day, issued statements asserting solvency, paid out some withdrawals (about $30,000 reported), and telegraphed the chief national bank examiner requesting an examiner take charge.
Newspaper Excerpt
This action was taken, the officers said, because of a run on the bank, precipitated by the circulation of false rumors concerning its condition.
Source
newspapers
3. September 19, 1925 Suspension
Cause
Rumor Or Misinformation
Cause Details
Officers suspended payments/closed doors in response to the run caused by false reports about the bank's condition; placed in hands of national bank examiners to take charge thereafter.
Newspaper Excerpt
The Globe National Bank of Denver was closed by its officers today. ... This action was taken, officers said, because of a run on the bank precipitated by the circulation of false rumors concerning its condition.
Source
newspapers
4. October 1, 1925 Receivership
Source
historical_nic
5. October 1, 1925 Receivership
Newspaper Excerpt
Appointment of Lawrence B. Bromfield of Denver as receiver of the Globe National which was closed here was announced today.
Source
newspapers

Newspaper Articles (24)
1. September 19, 1925 Santa Cruz Evening News Santa Cruz, CA
Article from Santa Cruz Evening News, September 19, 1925

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DENVER BANK, HIT BY RUMORS, CLOSES DOORS DENVER. Colo., Sept. The Globe National bank of Denver was closed by its officers today. It was capitalized for $200,000. This action was taken. the officers said, because of a run on the bank. precipitated by the circulation of false rumors concerning its condi- tion. Herman B. Gates, former state treasurer of Wyoming. president of the bank, is in New York City, officers, say, completing financial details of the recent merger wth the Home Savings and Trust company. In a telegram sent the chief examiner of national banks of the tenth federal reserve district, with headquarters in Kansas City. Missouri, the officers ask the national bank examiner be sent to take charge.

2. September 19, 1925 Tucson Citizen Tucson, AZ
Article from Tucson Citizen, September 19, 1925

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GLOBE BANK OF DENVER CLOSES ITS DOORS DUE SUDDEN RUN Circulation of Rumors Regarding Its Condition Is Cause DENVER, Sept. Globe National bank Denver was closed by its officers today after run, due, bank officers said, to the circulation false rumors of condition. Herman Gates, formerly state treasurer of Wyoming. was president the He now is York City. The bank was merged with the Home and Trust company July last. Rumors, officers said, to the effect that the Globe unstable: that merger had been fully their officials of the announced they forced "for the present" because the run this morning had depletion of cash hand. telegram sent the chief examiner of national banks for the tenth federal reserve district, in Kansas City, the local federal reserve bank notified to charge. the Denassociation. there and hand to back up claims. Herman Gates, president. in New officers completing details financing the newly mergBank officials said financing been completed and money but that the this came late prevent run today. the They declared to class was made protect depositors, view the which promised and cash out of the bank today

3. September 19, 1925 Los Angeles Evening Express Los Angeles, CA
Article from Los Angeles Evening Express, September 19, 1925

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Globe National Bank Of Denver Closed Sept. 19 (By Associated Globe National Bank of Denver was closed by its offitoday. It was capitalized at This action was taken, officers because of run on the bank precipitated by the circulation of false rumors concerning its condition. Herman B. Gates, former state treasurer of Wyoming. president of the bank, is in New York City, offisaid, completing details for financing the institution. which recently merged with the Home Savings and Trust Company. In telegram to the chief examiner of national banks of the Tenth federal reserve district, with headquarters at Kansas City, Mo., the officers asked that national bank examiner be sent to take charge.

4. September 19, 1925 The Sacramento Bee Sacramento, CA
Article from The Sacramento Bee, September 19, 1925

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Globe National Bank Of Denver Closes Its Doors DENVER (Colo.) Sept. The Globe National Bank of Denver was closed by its officers to-day. It was capitalized at $200,000. This action was taken, officers said. because of run on the bank precipitated by the circulation of false rumors concerning its condition. Herman B. Gates, the former state treasurer of Wyoming, the president of the bank, is in York City, completing details for financing the institution which recently was merged with the Home Savings and Trust Company. In telegram sent to the chief examiner of national banks of the Tenth Federal Reserve District. with headquarters at Kansas City, Mo., the officers that national bank examiner be sent to take charge.

5. September 19, 1925 The Belleville News-Democrat Belleville, IL
Article from The Belleville News-Democrat, September 19, 1925

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Denver Bank Closes Doors Globe National Bank of Denver closed by its officers today It was capitalized at $200,000. The action was taken, officers said, because of run on the bank precipitated by the circulation of false rumors concerning its condition. BUS DRIVER FINED. Herman Koch, a bus driver, was fined $15 and costs by Justice Gerking in Lebanon Friday night following his arrest on the Lincoln Trail east of O'Fallon by State Motorcop Walter Nichols on charge of driving 17 miles an hour

6. September 19, 1925 Record Searchlight Redding, CA
Article from Record Searchlight, September 19, 1925

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LATEST FLASHES off WIRES FOUND GUILTY Calif., Sept. 19.Holbano, who July shot and killed Vicenti Rincon, Chilcoot, Plumas county, was found guilty of manslaughter and given an indeterminate sentence at San Quentin. BANK CLOSES Sept. 19. The Globe National bank of Denver was closed by its officers. was capitalized at $200,000. The action was taken. officers said, because run on the bank precipitated by circulation of false rumors concerning its condition.

7. September 20, 1925 The Houston Post Houston, TX
Article from The Houston Post, September 20, 1925

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DENVER BANK CLOSES DOORS Officers Say Action Follows Run Caused by False Rumors of Condition. DENVER, Colo., Sept. Globe National bank of Denver was closed by its Saturday It was at $200,000 This action was said, because of run the bank precipitated by the circulation false ruits condition. Herman Gates, former state treasurer of Wyoming. president the bank, in New York City, completing for financing the institution, which cently was merged with the Home Savings and Trust In telegram sent to the chief aminer of national banks the Tenth federal reserve district with headquarters Kansas the ficers that bank ex. aminer be to take charge

8. September 20, 1925 The Houston Post Houston, TX
Article from The Houston Post, September 20, 1925

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DENVER BANK CLOSES DOORS Officers Say Action Follows Run Caused by False Rumors of Condition. Sept. 18.-The Globe National bank of Denver by its Saturday. capitalized at This said because the bank tated by the false its Herman R. Gates, farmer stat president bank. is in New City, ficers completing details for financing the institution, cently with the Home Savings and Trust company. telegram the chief aminer national banks Tenth federal reserve district with headquarters at Kansas the officers asked that national bank ex aminer be sent to take charge

9. September 20, 1925 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, September 20, 1925

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DENVER BANK CLOSED BY Believe There Be No Officials in Charge. Lovely By DENVER, Colo., Sept. Globe National Bank of which closed its doors today when show many depositors started run on placed teeth may in bank aminers. bank, from decay, but they capitalized in danger unless are belief that depositors would firm your gums receive 100 cents on the dollar. healthy. The and detectives how the engaged Ray shows which District Attorney Foster W. root sockets, teeth, Cline. launched of support your when rumors bank oficials led the Officers the tacks or must be bank issued statement declaring promptly checked. institution to be solvent.

10. September 20, 1925 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, September 20, 1925

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WILD RUMORS START RUN ON DENVER BANK Denver, Col., Sept. 19.-(P)-The Globe National bank of Denver, which closed its doors today when many depositors started a run on the institution, tonight was placed in the hands of national bank examiners, officials of the bank, capitalized at $200,000. announced that depositors would receive 100 cents on the dollars. Meanwhile, ctives engaged thy District Attorney Foster W. Cline launched an investigation of the source of the rumors which bank officials said led to the run and subsequent closing of the institution. Approximately $30,000 was paid out to depositors who withdrew theirwaccounts during the first half hoursof business today. Directors closed the bank when it became apparent that the run would mean that $250,000 or more would be taken out of the cash reserve within few hours. They issued statement declaring the institution to be solvent.

11. September 20, 1925 The Billings Gazette Billings, MT
Article from The Billings Gazette, September 20, 1925

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AVERT RUN TAX REDUCTION OFFICERS SHUT LOOKS EASIER FOR CONGRESS Globe National of Denver Taken Over by Federal Examiner; Solvency Is Claimed. Denver, Sept. Globe National of closed by officers Saturday after run. due officers said, the false rumors of its condition. Herman Gates, formerly state treasurer Wyoming. is president of the bank. He York The merged with the Savings July Rumors. officers said, were that the Globe unstable that the merger had fully completed. statement officials the institution announced they were to discontinue operations "for the because the had caused serious cash reserves hand. telegram sent to the chief aminer national banks for the Tenth federal reserve district, with headquarters in Kansas City, the local federal bank commissioners were noticharge. The bank member of the Denficers said between and $400,000 hand back up statements. Herman Gates, president. New York, officers said. completing details financing merged Bank said these financial pleted and the but that the came too prethe Officials said the bank was solvent. the the take tween and $300,000 in cash out of bank. the bank. capitalized $200,000 announced depositors 100 cents the dollar. engaged District Cline launched into the source the bank of ficials said led quent closing of the institution. CAUSE OF FAILURE, SAYS EXAMINER Kansas Sept. K. Roberts, national bank examiner for the Tenth said he had placed H. Campbell, national bank charge the Globe National was closed by its Mr. Roberts stated that the closing the bank was occasioned by its recently having taken over the Savings and he asserted "was in an extremely precarious con dition, The bank, he said. total of between and Loss in Revenue on Previous Cut Is Not As Large by $80,000,000 as Was Expected. By DAVID LAWRENCE Washington. Sept time the treasury of statistics the income tax the fiscal ending June there and more evidence that tax réduction in not possible, but When the in made, the experts figured total loss in revenue around when the were into The total now appears to have been around experts were not their much rate would in, basing their on vious they by calculate the due to better well as the opportunity the investor business expand his enterprises under tax Making up estimate probable income can fairly using past figures and allowing for in conditions. Now the gov. ernment knows what can and there doubt congress will optimistic about tax reduction than is treasury Figures Tell Story. Figures theories mitting the leak out as the returns are tabulated alyzed designed to show congress the probable limits tax reduction bill can be. fact that dropped only $80,000,000 the preceding is regarded the about the statement just issued by Blair of the internal enue The loss due to miscella neous taxes. Incidentally this the class which there is the greatest pressure for further tax changes. "which federal tax added to their selling most to see repealed which the has Two Schools Congress. While the consumer feels this indirectly. total amount the tax is widely distributed that in congress two schools think just and equitable and who thing the more millions people than those pay income taxes. Congress leaned toward the repeal of indirect taxes and big cut in this group may be the session. the depends to large what will left income But the fact that individual dropped relatively negligible amount, namely when was figured that the loss would be twice three times great. especially the business depression to have and will the basis the argument surtax and individual keep their productivity under low rates. tax scale can come down materially. Some Getting It begins the contest between higher but the and congress in their optimism going possible And some below the treasproposals already. side the surtax proposal, the latest figures will tend develop sentiment for greater further indirect and heritance tax problem will to the brunt compromises number of senators and sentatives voting for will argued by the treasury tirely

12. September 20, 1925 Hanford Morning Journal Hanford, CA
Article from Hanford Morning Journal, September 20, 1925

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PROBE RUMORS CAUSING ON A DENVER BANK Wire] DENVER Sept The Globe National Bank of Denver, which closed its doors today when many depositors started run on the stitution. tonight was placed in the hands of National Bank examiners. Officials of the bank, capitalized at announced their belief that depositors would receive 100 on the dollar Meanwhile, detectives engaged by District Attorney Foster W Kleine launched an investigation to determine the source of rumors which, bank officials said. led to the run and closing of the institution

13. September 20, 1925 Wichita Falls Times Wichita Falls, TX
Article from Wichita Falls Times, September 20, 1925

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GLOBE NATIONAL BANK AT DENVER IS CLOSED DENVER Colo., Sept. 19. (P)-TEe Globe National Bank of Denver It was capitalized at $200,000 This action was taken, officers said, because of a run on the bank precipitated by the circulation of false reports converning its con dition. Herman B. Gates, former state trensurer of Wyoming, president of the bank, is in New York City, officery said, completing details for financing the institution which recently was merged with the Home Savings and Trust Company. In telegram sent to the chief examiner of national banks for the tent hfederal reserve district with headquarters nt Kansas City, the officers asked that national bank examiner be sent to take charge.

14. September 20, 1925 Times Record News Wichita Falls, TX
Article from Times Record News, September 20, 1925

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DENVER BAN KCLOSED Say Action Due to Run Caused by Circulation of False Reports. DENVER. Colo., Sept. 19 (AP) -The Globe National bank of Denver was closed by its officers today. It was capitalized at $200,000 This action was taken, officers said. because of run on the bank precipitated by the circulation of false reports concerning its condition.

15. September 20, 1925 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, September 20, 1925

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False Rumors Close Bank. Globe National Bank of Denver closed by its officers today It was capitalized at $200,000. The tion was taken, officers said, because of run on the bank precipitated by the circulation of false rumors concerning its condition. Herman B. Gates, former State treasurer of Wyoming, president of ficers said completing details for financing the institution which recently was merged with the Home Savings and Trust Company.

16. September 20, 1925 Bozeman Daily Chronicle Bozeman, MT
Article from Bozeman Daily Chronicle, September 20, 1925

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RUN ON DENVER BANK FORCES IT TO CLOSE Denver, Sept. the Asso ciated Globe National Bank Denver, closed its doors today when many depositors started run the tonight in the hands national bank placed officials of the bank, talized $200,000, that would receive 100 cents on the positors dollar. Meanwhile, detectives engaged District Foster Cline, launched investigation to the bank led the run and quent closing of institution. $30,000 paid depositors who withdrew their counts during first half hour business Directors closed the bank when became that the run would apparent that more would taken out of the within They issued statement the institution solvent.

17. September 20, 1925 The Morning Press Santa Barbara, CA
Article from The Morning Press, September 20, 1925

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Doors Are Closed, But U. Officials Say Sound DENVER. Sept. The Globe National bank of Denver, which closed its doors today when many depositors started run on institution, tonight placed the hands tional bank examiners. Officials the bank. capitalized $200, 000. announced their belief that depositors would receive 100 cents on the dollar Meanwhile detectives engaged District Attorney Foster Kline launched an investigation to determine the source of mors which, bank officials said. led the run and consequent closing of the institution. Approximately $30,000 was paid out to depositors who withdrew their accounts during the first half hour of business today Directors closed the bank when became apparent that the run would mean that more would taken out of the cash reserve within few hours, and asked national bank examintake charge. Officers the bank issued statement claring the institution to vent.

18. September 21, 1925 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, September 21, 1925

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National Bank in Denver Forced to Close Doors Denver, Sept. Globe National Bank of this city has pended payments charge of an the Federal Bank merged last the Home Savings and Bank. then that the surcapital bank amounted to nearly deposits totaled Officials of bank claim that the surplus and capital sufficient meet Rumors the bank in caused the bank suspend payments.

19. October 1, 1925 The Carbon County News Red Lodge, MT
Article from The Carbon County News, October 1, 1925

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DENVER BANKER IS ARRESTED. FORMER TREASURER OF WYO. Cheyenne, Wyo. Sept. 29-Herman B. Gates, arrested Monday in connection with the suspension of the Globe National bank in Denver, was state treasurer of Wyoming from 1915 to 1919. He was engaged in banking at Worland when elected state treasurer, but during his term became interested in the oil business and upon his retirement from office, moved to Denver because his oiil interests might be more advantageously directed from the Gates Oil company, of which- he was president, and had other oil interests. Mr. Gates was born in 1884 at Auburn, III, He came to Wyoming in 1902, locating at Thermopolis, where he was employed in a bank. In 1906 he assisted in the organization of the First National Bank of Worland, became its cashier and moved to Worland. He was mayor of Worland for four years (1910-1914), and represented Washakie county in the house of the legislature from 1914 to 1915. During his service as state treasurer, Mr. Gates was exofficio a member on the state land board, which, during that period, granted many highly valuable leases on state-owned oil lands, including the Midwest's lease in the famous section 36 in the Salt Creek field, oftimes referred to as the "richest square mile on earth."

20. October 2, 1925 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, October 2, 1925

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COOK AT ARION, IA., HELD FOR MURDER OF ANOTHER NEGRO Arion. Ia., Oct. (Special) A Negro named Joe about 25 years whose last name address could not be learned. was stabbed to death construetion camp near here at 30 o'clock tonight Manuel Brown, 22 years of St. Louis, Mo. a Negro for the camp cook, in jail Denison charged with the crime. Sheriff Green of Denison ran Brown down in corn field shortly after the crime Interviewed in jail at Denison tonight. said Joe had been pestering him, and tonight had threatened hit crutch he was using following an accident Brown said he picked up butcher knife and started to chase Joe and in the melee they fell over bench and the knife accidentally went into Joe's Joe's body is at local undertaking parlor. An investigation is being made to learn his identity Sheriff Green says he be lieves the crime was murder Brown claims it was an accident He talked freely and admitted quarrel. Name Denver Bank Receiver Oct pointment of Lawrence B. Bromfield of Denver as receiver of the Globe National which was closed here was announced today

21. October 2, 1925 Beatrice Daily Sun Beatrice, NE
Article from Beatrice Daily Sun, October 2, 1925

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DENVER BANK RECEIVER Oct. Assoclated of Lawrence Broomfield of Denver receiver the defunet Globe National which closed here announced tochief national examiner the Tenth Reserve district, appointment by the currency. Broomfield take over tomorrow.

22. February 7, 1929 Chappell Register Chappell, NE
Article from Chappell Register, February 7, 1929

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SERVICE BY PUBLICATION In the District Court of Deuel Coun ty, Nebraska. Frank Strasser, plaintiff, versus Carl H. Peterson, Jessie M. Peterson, his wife, Wheeler & Motter Mercantile Co., A Corporation, The Public Trustee of Deuel County, Nebraska, L. B. Bromfield, Receiver of the Globe National Bank of Denver, Colorado, Aden-Kampfe Mercantile Co. partnership doing business in the State of Nebraska, and all persons having or claiming any interest in Lots Thirteen (13) and Fourteen (14) in Block Nineteen (19) in the Original Town of Chappell, Deuel County, Nebraska, real names unknown, Defendants To Carl H. Peterson, Jessie M. Pet erson, his wife, Wheeler & Motter Mercantile Co., A Corporation, The Public Trustee of Deuel County, Nebraska, L. B. Bromfield, Receiver of the Globe National Bank of Denver, Colorado, Aden-Kampfe Mercantile Co., a partnership doing business in the State of Nebraska, and all persons having or claiming any interest in Lots Thirteen (13) and Fourteen (14) in Block Nineteen (19) in the Original Town of Chappell, Deuel County, Nebraska, real names unknown, defendants. You and each of you are hereby notified that on the 26th day of December, 1928, Frank Strasser, Plaintiff, filed his petition in the District Court of Deuel County, Nebraska, against you and each of you, the object and prayer of which petition are to foreclose one certain mortgage given on the 23rd day of May, 1925 by Carl H. Peterson and Jessie M. Peterson to Frank Strasser on Lots Thirteen (13) and Fourteen (14) in Block Nineteen (19) in the Original Town of Chappell, Deuel County Nebraska. You are required to answer said petition on or before the 25, day of February, 1929. Frank Strasser, Plaintiff. By A. J. Luebs, his attorney. 38-4 will sell at foreclosure sale, Lots One (1) and Two (2) in Block Twen ty-seven (27) Original Town of Chappell, Nebraska, with all appurtenances thereunto belonging. The sale will be at public vendue to the highest bidder for cash, at the south door of the Deuel County Court House at Chappell, Nebraska, on the 18th day of February 1929 at 10 o'clock m. 38-5 A PETERSON, Sheriff Deuel Co. Nebr.

23. March 9, 1930 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, March 9, 1930

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One Question Takes Half Mour to Read; Court Bars Answer Special Denver, Colo., March half an hour today Ralph Hartzell, represents L. Bromfield, receiver for the defunct Globe National bank of Denver, read question to K. Roberts of Kansas City, Mo., chief national bank examiner, was on the stand in the 675 thousand dollar damage suit Bromfield brought against 11 directors the bank. The ceiver charges their negligence caused bank to fail. The question was all in one sentence, contained nine typewritten pages. It was the longest hypothetical question asked in this state, summary of conditions which led to collapse of the bank. In effect, it asked whethdirectors were to blame for crash. Defense attorneys protested, and Special Master Caldwell Martin, hearing the testimony, refused to allow Roberts to answer.

24. February 4, 1934 Fort Collins Coloradoan Fort Collins, CO
Article from Fort Collins Coloradoan, February 4, 1934

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Six Move Here In Shift of Bank Receiver's Office With the establishing in Fort Collins of headquarters of F. Kokrda. receiver for nine Colorado banks two in Larimer county, an interesting former Denver residents was added to Fort Collins during the past week. Mr. and Mrs. Kokrda have established themselves at 1437 West Mountain avenue, rented the residence at that address. Coming with them from Denver office to make their residence here are Mrs. Dunn, bookkeeper, and Miss Edna Mrs. Dunn accompanied by her husband, disabled war veteran wh oserved as captain with Ráindivision. Mrs. Dunn formerly studied at the Conservatory of Music at the Colorado Agricultural college, and was accompanist for DIAlexander Emalie in his pubHe appearances at that time. She planist of ability, prominent in all musical circles of Fort Collins. The Dunns are located at 431 West Oak street. Miss Backloup, mother lives with has located at the Scott apartments. From life Fort Colline office in the Fort Collins National bank building, Mr. Kokrda will administer the receiverships of nine banks: The Fort Collins National bank. the First National bank of Wellington, the First National bank of Lafay ette, the First National bank of Brighton, the First National bank Yuma, the First National bank of Deetrail, the Limon bank, the Glbe National bank of Denver and the Broadway National bank of Denver. The two latter are bases in which disposition of suits against depositors is being awaited. Ten receiverships been completed by Mr. Kokrda in recent years, of which one was in in Wy. oming and the Colorado.