14396. First Savings Bank & Trust Company (Albuquerque, NM)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: July 1, 1933*
Location: Albuquerque, New Mexico (35.084, -106.651)

Metadata

Model: gpt-5-mini
Short Digest: 5d80028b

Response Measures

None

Description

The bank was placed on restricted withdrawals in April 1933 after the sudden death of J. Ed Cox and was closed in July 1933. Receivers (Cooper & Powell) were appointed and have been liquidating assets and paying dividends; litigation over the receivership occurred but the bank remained closed and in receivership (i.e., permanent closure/liquidation). Defalcations by the late J. Ed Cox are repeatedly cited as the cause.

Events (3)

1. July 1, 1933* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Defalcations and shortages dating back to 1924 by the late J. Ed Cox led to insolvency; restricted withdrawals in April and final closure in July 1933.
Newspaper Excerpt: the bank was placed five per cent restricted withdrawal basis April after the sudden death Ed Cox, The bank was closed last ...
Source: newspapers

2. September 1, 1933* Receivership

Newspaper Excerpt: Cooper and William H. Powell took charge as receivers Sept. after their appointment by Judge Helmick.
Source: newspapers

3. January 23, 1934 Other

Newspaper Excerpt: State Supreme Court made absolute writ of prohibition, ruling co-receivers Powell and Cooper will remain in full charge of affairs of the bank (appointment of examiner voided).
Source: newspapers

Newspaper Articles (11)

1. September 13, 1933 The Albuquerque Tribune Albuquerque, NM

Article from The Albuquerque Tribune, September 13, 1933

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Town Talk J. D. Cameron, 500 W. Crom well, and Nash Sanchez, 702 W. Coal. charged with speeding, will get hearings in police court at p. m. Wednesday Sena obtained permit from building department for re roofing at 415 N. Fifth to coat $140. Rev. Hugh A. Cooper, superintendent the Presbyterian sanatorium, left Wednesday for Chicago attend the institute for hospital administration at University of Chicago, Hugh A. Cooper Jr., accompanied him A mortgage deed on five lots in block G of Atlantic and Pacific addition was foreclosed Wednesday in district court in suit of the First Savings Bank and Trust Co. and William Powell and Lester Cooper, the bank' receivers. Judg ment entered against R. L. McNeil and Blanche McNell. The Atrisco Housekeepers club will hold its regular monthly meet ing at Thursday at the Atrisco club huose School lunches and health the schools will be discussed Mrs. Maud Doty, county home demonstration agent C. A. Doty, 720 North Twelfth, will leave for Springfield, III., to attend the annual convention of the Soveregn Grand lodge of the Odd Fellows. He also will visit the Chicago World's fair with relatives in Indiana before returning to Albuquerque.

2. October 17, 1933 The Albuquerque Tribune Albuquerque, NM

Article from The Albuquerque Tribune, October 17, 1933

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ASKS $58,000 BE TAKEN FOR LOSS OF BANK Receivers of First Savings Petition Court Here to Accept It BOND WAS INADEQUATE Insufficient to Cover All Shortages for Year When Incurred Receivers of the closed First Savings Bank and Trust company Tuesday asked authority district for $58,claims panies the bank. Audits made by experts vary widely the actual defalcations. running as approximately celvers Powell and Leester Cooper stated. Judge Helmick ting Santa Tuesday and the petition of Exact amount shortage and defalcation of Cox, bank's time his death in April known the receivers, according to the "Carelessly Kept" Competent they books and records insolvent bank carelessly Shortages and defalcations be identified far back 1924 and extend through April, 1933, and is ble definitely flx the time first in bank, the alleged. Audits in attempts allocate to specific years, the "Indirect Loss" One alleged shortage repre due the bank cannot be shown have lected by and actually to the bank and sified by any surety bond. Surety sued for the years to part classified and Excess los are excess of the the existing bond Can't Recover "By reason defalcations large number each the amount the primary for year, said tive under any of loss bonds, that under primary bonds, the Prior and Including primary in the amount and their terms recovered defalcations for the period. For period of would be an additional In 1932 primary bonds of 000 were effect terms the vious years' bonds and viously mentioned $25,000 maximum recovery would have to deducted from the 1932 primary By of the excess bond in force in 1932 would be liable only loss excess provable 1932. Defalcations not eliminating any covery under the excess bond for of beBond effective January 1933. but there is approximately shortage There of placed audit in 1932 another 1933. attempt these Any would cost occurring amount for litigation, according to the receivers.

3. October 18, 1933 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, October 18, 1933

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RECEIVERS ASK SETTLEMENT OF BANK SURETY Would Collect $58,033 From the Bonding Companies for Shortages at the Closed First Savings Settlement with surety companies of the shortage at the closed First Savings Bank and Trust company for is sought by the bank's receivers in petition filed Monday in district court. Reports of auditors on defalcations at the bank vary from $68,000 to about 4,000. according to Receivers William H. Powell and Lester Cooper, who said they do not know the exact amount Defalcations Back to 1924 Defalcations by the late J. Ed Cox. extend back to 1924, and it is practically impossible to set the precise time shortage first occurred. the receivers alleged. Audits vary in attempts to allocate the specific years One alleged shortage of about $19,000 represented collections. but

4. November 22, 1933 The Albuquerque Tribune Albuquerque, NM

Article from The Albuquerque Tribune, November 22, 1933

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20 Per Cent Dividend "Appears in Prospect" Is Statement PREPARE FOR RELEASE All Secured Deposits Taken Care of; Loans Being Repaid Prospects of first dividend of cent depositors closed First Savings Bank and Trust company New by Lester Cooper and William H. Powell. Payment of dividend of that would depositors. The district court has given December 1933, prove their against the bank. All claims filed by that time will be cancelled. Now the time for persons bank to begin paying their indebtedness. the Those who ignore their debtedness will sued, they warned. The receivers said they are ing to avoid filing suits against anyone. $75,000 Paid loan the RFC by the bank has been paid the receivers and they have collected about notes, was vealed. Teh receivers paid secured claims. 1,129 claims of depositors had been filed Wednesday Five per cent of the deposits made available spring the bank placed on basis after the sudden death Ed Cox, The bank was closed last and Cooper and Mr. Powell took charge as September All Disposed or. The Wednesday deposits have been posed They possesbank's assets, free all All trust funds, which must paid full, are expected taken care by the first the year, according to the receivers. stockholders their ments, will add materially possible increase in the the first dividend. The receivers stated they did not they had pressed stockholders unduly for their Prepare Suits. Suit against delinquent stockholders being prepared and will be filed before the end of vember, Mr. Cooper and Mr. Powell declared. The receivers said they believed of New Year's be liquidating New state bank, especially in of fact been file against single whom are progress their indebtedness the bank. To Continue. District Judge Milton Helmick Tuesday Mr. Cooper and Mr. Powell will continue the bank. His ruling with motion filed State Bank John Bingham, asked that the aside that he be named The motion of the bank exambased the 1933 for the him as closed state banks. hearing the motion held some ago.

5. December 5, 1933 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, December 5, 1933

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JUDGE OTERO'S ORDER HOLDS LAW OF 1933 IS EXCLUSIVE Decree Makes Void and Without Effect Actions of Cooper and Powell as Joint Receivers HEARING HELD IN SANTA FE Attorney for Receivers Named by Helmick Uncertain as to Any Further Legal Move SANTA FE, Nov. 4 (SpeBank Examiner John Bingham Monday was appointed receiver for the First Savings Bank and Trust company of Albuquerque in a district court order issued by Judge M. A. Otero Jr. which set aside the appointment of Lester Cooper and William Powell as of the institution. The order makes void and without effect everything that has been done toward liquidating the affairs of bank by Cooper and Powell. The who were pointed by the Bernalillo county district ordered to to Bingham the assets of the Ruling that chapter of the session and Judge Otero that the way which for banks be appointed for the state bank aminer report the attorney general and for the torney general to institute suit to receiver appointed. did not rule the must then appoint the state bank examiner However, was that the of and and void since the did not follow the Powell had been pointed by District Judge Milton Helmick the filing of cause by four depositors of the Joint Receivers Acts Invalid The that and result of placthe institution the conof the co-receivers are and without effect because lack of jurisdiction in said court to proceed in said Judge Otero's order came following hearing entitled "State Mexico VS. First Bank and Trust Hugh Woodward, attorney for certain of the bank, presented for the assisted by Attorney General Former Judge R. Ryan represented the bank hearing. District Judge Milton Helmick had been disqualfied from hearthe following the filan affidavit plaintiff plaintiff did not beHelmick could rule imparthe Ryan attorney for the bank agreed the of that the not be placed the hands other action the attorney general and he merely sented the hearing review of what had the courts already Ordered to Return Assets In ordering the state bank aminer charge of all sets the institution order that any persons now in possession any assets property the bank by virtue action taken by Powell and Cooper under court orders their co-receivership "hereby required upon service upon them of certified copy this yield, deliver surrender all said assets to the receiver herein appointed." The banking law empowers the examiner to appoint special deputy assist him In liquidating affairs the institution for the benefit of depositors. Judge Otero, in his findings of fact the said that suit of four depositors against the bank which resulted in the the after the bank examiner had closed the institution and taken charge. July before prepared or make port the condition of the

6. January 24, 1934 El Paso Times El Paso, TX

Article from El Paso Times, January 24, 1934

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Albuquerque Bank Receivers Upheld Santa Fe, Jan. 23 (AP).W. H. Powell and Lester Cooper, co-receivers of the First Savings Bank and Trust Co. of Albuquerque, will remain in full charge of affairs of the bank under decision of the state supreme court today, making absolute writ of prohibition against Judge M. A. Otero, Jr., in litigation concerning the bank. The two co-recelvers were appointed by Judge Milton J. Helmick and Otero in subsequent decision named State Bank Examiner John Bingham as receiver. Under the decision today, the co-receivers continue and Bingham's appointment is voided.

7. February 14, 1934 The Albuquerque Tribune Albuquerque, NM

Article from The Albuquerque Tribune, February 14, 1934

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TO DEPOSITORS DIVIDENDS First Trust and Savings Receivers Place Checks In the Mail MEANS 10 PER CENT Another Similar Hoped for in Next Days Depositors in the closed First Savings Bank and Trust Co. Wednesday receiving Valentine in the form of per cent dividend, the first paid by receivers. The dividend will release approximately of the bank's deposits and $50,000 in checks was in the Wednesday morning. Receiver Lester Cooper said checks for the remaining amount will be mailed before the end of the week. Most of the amount, represented by about 2,300 checks, will go small depositors, Mr. Cooper said. Protect Trust Funds are holding out enough to protect all trust funds money which may be preferred claims and, 80, must be paid in full," George C. Taylor, attorney for the receivers, said. "Future dividends will be paid as fast as sufficient money ceived to 10 per cent divipay dend. We think there will be enough money for another 10 per dividend within 30 days less the state bank examiner and the attorney general are successful in their efforts to stop Judge Milton Helmick has ordered the to liquidate bank's assets fast as possible, Mr. Taylor said. $900,000 in Deposits of the bank totaled $1,200,000 when the institution closed, but they were cut to approximately secured public money, which had to paid. The bank was placed five per cent restricted withdrawal basis April after the sudden death Ed Cox, secretarytreasurer, and was finally closed July Mr. Cooper and William H. Powell charge of the bank receivers Sept. after their pointment by Judge Helmick. Planned Dividend The receivers had planned 20 per cent dividend before Jan. payment of first dividend delayed by litigation over the receivership, according to Mr. Taylor. "One result of the litigation was prevent collection of enough to make 20 per cent dividend at this time," he said. large portion of the money for the received since the middle of when court decision left Mr. Cooper and Mr. Powell as the bank's receivers.

8. February 16, 1934 The Coolidge Examiner Coolidge, AZ

Article from The Coolidge Examiner, February 16, 1934

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Southwestern Briefs Probably a dozen new liquor bills will be presented at the special session of the New Mexico Legislature if one is called. Civil works administration officials the Arizona dis Jan. 20 totaled announced tributed payroll $317,107.77 the largest of record in the state. Motor vehicle accidents on Arizona highways during 1933 brought death the State announced in a re partment to 155 persons, detailed Health De port to the United States bureau of census. The New Mexico Federation of Tax Associations, meeting at Albutook formal on a program by payers' querque, posed legislative action prepared prothe organization's special legislative committee. Residents of Albuquerque reperted seeing a falling star burst into a bril liance lasting several seconds, recent ly. The falling object. believed to have been a meteor, was seen direct ly south of the city. Assistant Attorney General John Francis Connor of Arizona has com brief which he will present State Supreme state's minimum wage pleted ing to the the a Court, declar law is legal and enforceable. Herman E. Hendrix, state superin tendent of public instruction in Ari zona. has apportioned a total of $66. 674.98 to thirteen counties from fees collected in national forests in the state during the past year. Harry M. Moore, Maricopa county sources Ariz., from all treasurer, reported received amounted by revenues Mariduring 1933 to while $5,368,728.10 copa county disbursements totaled for all purposes during the year $5,551,065.81. Winslow, Ariz., will have only three places where liquor can be bought by the drink unless other applications come in later, according to Chief Rube Neill, who reported that thus far only three have signified their intention to take out the $400 a year license. New Mexico has the smallest aumber of closed banks and the smallest amount of money tied up in defunct institutions of any state in the Union, R. L. Olson, special representative of the United States Home Owners Loan Corporation, announced recently A back to the land movement, op erated by the government and primarily outlined as an auxiliary meas ure in continuing livelihood, has been placed in operation here by P. V. Ful 1er, field representative for the De partment of the Interior in Arizona. Out of $1,562,500 for new Indian hos pitals and sanatoriums, $305,000 will go to two reservations adjacent to Gallup. N. M., it was announced by Commissioner John Collier. Zuni is to receive a $125,000 hospital and Eastern Navajo $180,000 building at Crown Point. Despite the fact it was unable to reach an agreement on a proposal to consolidate counties, the New Mexico Federation of Taxpayers' Associations adopted a fifteen-point legislative program calling for a business tax and delinquent tax collection law similar to that in force in Arizona. Clinton P. Anderson, New Mexico state treasurer, who sent his resigna tion to Gov. A. W. Hockenhull, said he was willing to continue as treas urer, at $1 a year salary if necessary, under the same conditions as in the past if it is in the interests of the of fice that he remain in charge. The city of Williams, Ariz., overwhelmingly approved an $87,000 bond issue to permit construction of a $119, 000 water improvement program. A total of 105 votes was cast in favor of the proposal, with 32 opposed, out of a total registration of 167 property owners, according to official tabulations. W. H. Powell and Lester Cooper, co-receivers of the First Savings Bank & Trust Co. of Albuquerque, will remain in full charge of affairs of the bank under a decision of the State Supreme Court, making absolute a writ of prohibition against Judge M. A. Otero, Jr., in litigation concerning the bank The fight over the suspension of the New Mexico department of the American Legion went into the courts again recently, when the department asked the court of the first judicial district to declare the suspension null and void. The plea also asked that the national headquarters of the Legion be ordered to recognize the New Mex ico department and officers as being in good standing. Scenes of frontier days were re-enacted in Clayton, N. M., for three nights, January 25, 26 and 27, when the American Legion's Old Western for the Old a time. Dance The was staged Western Dance fifteenth where is three day and night attraction plannell

9. March 21, 1934 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, March 21, 1934

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DAILY RECORD Marriage Licenses Rose Montoya and Candido Garcia, A1- New Car Buyers Albuquerque Gas and Electric company, Ford truck. Swift & Co., Albuquerque, Plymouth District Court Rosalia Carrillo John Carrillo, plainLiff divorce, failure support ACBeulah Kahnt vs. Louis Maldonado for $1,000 filed asked cross complaint for judgment $1,000 dismissal Emily White Pearl suit. Zapf et foreclosure at request Jack Moore Central Meat Market Moore awarded under stipulation for injuries incurred in accident Mr. and Mrs. Joseph Gagner vs. Mr and Mrs. John Major perpetually dite) from use certain irrigation Mamie Hodge vs. Roland H. Hodge plaintiff and cruelty. Alla Boyce Van Cleve vs. C. O. Van Bertha Leona Randall William E. Randall, divorce suit filed, failure port means minor by his father. Telesfor Mirabal city $2, 500 suit for injuries, defendant filed demurrer Carmelita D. Montano vs. Toribio Mon. tano tate of Melquiades Montano authorized to sell certain property the Lucinda Garcia, Sandoval county Ernest Hodson, justice court appeal from Sandoval county, dismissed. vera April set aside supreme mandate given against Mr and Jose C. Rivera and Matter Angus Ian McGillivray Robert M. Ruoff guardian Angus Ian McGillivray bond Mrs. First Savings Trust receivers authorized pay $620.74 preferred Jessie Ann Ethel Jane and Robert as guardian Ian Mrs. Corinne Jameson Frist Savings Bank and Trust company named trustees and trust the bank three and ordered trust fund each case paid preferred claim. Real Estate Transfers Mr. and Coral Dunlap Mr. Highland addition: also block Lewis Highland addition No. warranty Mrs. Charles Zapf to Mr Mrs 20, Country Club addition: warranty deed. The Valley Growers, Inc., F. Whitman Valley Inc., addition: deed warranty Trust and Savings Bank and Elsie jarito trustee's deed. First Title Guarantee and Trust com- in the metal and that certain persons were hoarding it.

10. March 23, 1934 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, March 23, 1934

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ROGERS OFFERS SETTLE FIRST SAVINGS DEBT Would Pay Receivers $2,500 Cash and Put Up Dairies Stock for $27,500 Note; Court to Consider Guy L. Rogers, former vice president of the defunct First Savings Bank and Trust company Thursday told the district court he is insolvent and If a settlement he offered to make with the bank's receivers on $27,500 he had borrowed from the institution and $1,500 due now on a stock assessment are not accepted he will have to go into bankruptcy and the bank would get nothing Through loans from friends Rogers said he was able to offer in full settlement of his indebtedness 100 shares of Valley Gold Dairies Inc., cumulative preferred stock, fully paid and non-assessable, and the sum of $2,500. District Judge Milton Helmick, after hearing testimony of Rogers on his financial condition, took acceptance of the offer under advisement. Getting Loan The prefe stock certificates of the dairy company, with par value of $5,000, and $2,000 in cash was being loaned him by friends and he raising $500 of his own money was brought out in Rogers testimony His settlement offer was in the form of petition. If he went into bankruptcy would have nothing to pay the bank his only creditor. Rogers testified In his petition Rogers said he had placed with the First Savings bank as collateral to his indebted. ness 200 shares of stock in the old First National bank of Albuquerque. At the time the loan was made the stock was worth more than as he paid for the stock he said He did not wish to file voluntary bankruptcy petition. Rogers stated The home occupied by his famfly is the separate property of Mrs. Rogers. who paid for her equity from money received from her father's estate, according the petition, which also stated there is a $6,000 mortgage on the place Rogers' petition said he is using the cash surrender value on life insurance policy to borrow money to make the settlement with the receivers All Savings Was In Stock While the witness stand, Rogers testified all his life savings had been in bank stock. now Rogers, now assistant to the president of the re-organized First National bank, said his present salary is month. Rogers said had conferred with attorneys and they advised him that if he went into bankruptcy It would be "no asset" and he would be under no obligation to pay any of his obligation to the First Savings bank. He has assets except his salary and that would be exempt under the law he stated

11. September 20, 1934 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, September 20, 1934

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HEIRS SEEK $20,000 OF RECEIVERS Allege First Savings Bank Negligent; Excessive Expense Whether the First Savings Bank and Trust company, through its receivers, should be required to pay back between $20,000 and $30,000 in the guardianship of children of Angus Ian McGillivray, late cattleman of Estancia valley, was the question argued before District Judge Joseph Dailey Wednesday afternoon. Hearing was continued to Thursday afternoon. Attorneys for the three heirs, Angus, 20; Jessie Ann, 25, and a married daughter, Ethel Jane Ruoff, have filed exceptions to the final report of guardianship by Lester Cooper and W. H. Powell, bank receivers. The heirs claim the bank was negligent in retaining $9,000 worth of shares in the old First National bank, as the shares were described as complete loss. Expenditures totalling $10,000 for university tultion, fraternity dues, automobiles and summer vacations for the children were alleged as unjustified on the ground they ate into the principal and reduced the estate from $53,000 in 1922, to approximately $25,000 when the guardianship was turned over to the Albuquerque National bank about year ago.