Lafayette Bank - Lafayette, CO

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: January 23, 1915
Location: Lafayette, Colorado (39.994, -105.090)

Metadata

Model: gpt-5-mini
Short Digest: 349c2a2d

Response Measures

Full suspension, Books examined

Description

Article (1915-01-23) reports union withdrew deposits from Lafayette Bank after an injunction related to miners' deposits, which affected the bank and brought about a consolidation of assets with the Louisville bank. Officers turned over its affairs to the state banking department, implying suspension/administrative takeover; article mentions possible outside capital to reorganize but outcome is not definite, so classified as run → suspension with uncertain final status.

Events (2)

1. January 23, 1915 Run

Cause: Bank Specific Adverse Info
Cause Details: United Mine Workers' deposits were enjoined in litigation; union leaders withdrew funds in anger, causing heavy withdrawals from Lafayette Bank.
Measures: Consolidation of assets with the Louisville bank; officers turned affairs over to the state banking department.
Newspaper Excerpt: This made the district organization leaders of the miners angry and they withdrew their funds from the Lafayette bank.
Source: newspapers

2. January 23, 1915 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was affected by the withdrawals tied to the injunction and disputes over the miners' deposits, prompting consolidation of assets and turning affairs over to state banking department.
Newspaper Excerpt: the officers of the bank turned over its affairs to the state banking department Wednesday.
Source: newspapers

Newspaper Articles (1)

1. January 23, 1915 United Labor Bulletin Denver, CO

Article from United Labor Bulletin, January 23, 1915

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Article Text

$125,000 OF UNION MINERS FUND ARE TIED UP IN BANK MAY BE FORCED TO TAKE OVER PROPERTY FOR PROTECTION. Deposit Made to Insure Employment of Men by American Fuel Co. Jeopardized by Closing of Lafayette Bank. Funds approximating $125,000 of the United Mine Workers of America are tied up in the closing of the Louisville bank of Louisville, Colo., and if the injunction granted against the organization withdrawing its certificates of deposits, granted last July, is made permanent the miners may be forced to take over several mining properties and operate them or lose the sum above given. The $125,000 was deposited in four northern Colorado banks when the United Mine Workers, in order to provide work for the men out on strike in the north, deposited with the Lafayette and Louisville and two other banks sums sufficient to guarantee the operation of the American Fuel Company and the mines it controlled. The promoters tried to obtain a loan from the United Mine Workers, but the officials had no authority to lend money in that manner. The contract then was signed by which the miners deposited the various sums with the banks acting as agent in the loan making. When the banks refused to take more deposits of this nature the union advanced $55,000 to the American Fuel Company. George M. Williams, receiver of the fuel company, enjoined the miners from getthig their deposits because it was declared the funds were held as security for the American Fuel Company loans and other obligations. This made the district organization leaders of the min. ers angry and they withdrew their funds from the Lafayette bank. This fact, together with the injunction suit, af. feeted the banak and brought about a consolidation of assets with the Louis. ville bank. Asserting that the elimination of the dispute will permit a speedy reorganization, or liquidation, the officers of the bank turned over its affairs to the state banking department Wednesday. It is said outside capital will become interested with local men in putting the bank on its feet again. The liabilities are approximately $250,000. and it is said there are assets worth twice that much. If the miners are forced to take over the properties of the American Fuel Company they will have equities in the mine at Parkdale, the Centennial at Louisville, the Fort Lupton at Fort Lupton, the Willoughby Coal and Land Company at Lafayette and smaller, undeveloped properties.