1458. Peoples Home Bank (Rocky Ford, CO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 26, 1926
Location
Rocky Ford, Colorado (38.053, -103.720)

Metadata

Model
gpt-5-mini
Short Digest
3b6b2da7

Response Measures

None

Description

Articles (Apr 1926) state the People's Home Bank of Rocky Ford, CO closed two weeks ago (relative to Apr 9, 1926). There is no mention of a depositor run — coverage links the Colorado bank's closing to irregular transactions with the Farmers' Exchange Bank of Gallatin, MO. I infer permanent closure/suspension (likely receivership) — hence suspension_closure. Bank type set to state based on naming; if uncertain, could be unknown.

Events (1)
1. March 26, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed after irregular transactions surfaced (records and deposits involving Farmers' Exchange Bank); examiner investigated and closure occurred about two weeks before Apr 9, 1926. Exact formal cause not stated in articles but irregularities implicated.
Newspaper Excerpt
the Colorado bank, which closed two weeks ago.
Source
newspapers

Newspaper Articles (3)
1. April 10, 1926 The Kansas City Times Kansas City, MO
Article from The Kansas City Times, April 10, 1926

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Article Text

IN GALLATIN EXCHANGE DEPOSITORS FARMERS ONLY ON MAY Reveals bility Amazed Irregularities Being Revealed. Mo., April 9.-Depositors the Farmers' Excustomers change Bank of by its directors ago "frozen beginning to find out that there are in fact some particularly spots that have managed to "burn" depositors. Instead depositors ultimately getting all their $621,572 back as they at first they may get as low as cents on the dollar even The of them retired business men and widows who trusted their investments the are discovering that instead good first mortgage notes the bank has sold them second mortgages in many cases and in other cases merely unsecured and worthless paper. SETTLEMENT STILL Settlement of the bank's affairs by Martin Princeton, resigned bank examiner to become receiver, has not progressed to the point where he can make an estimate where the affair will but he frankly admits he amazed irregularities coming light, tending to erase whatever chances depositors stomers had realizing much. The indorsed and sold notes uncovered to date total more than $300,000 and liability against the bank that appeared in published statements Even correspondent banks in KanCity are finding their loans to the Farmers' Exchange Bank cured collateral the quality they thought. Notes by the bank here and In Kansas City were accompanied the the assets and liabilities the notes' makers. ASSETS NOT AS REPRESENTED But who are calling makers the being their assets great and their are although the signed farmers and business men and attested by the bank Attorneys for the said today they expected earn far more than fee they would the indications that would be file and defend Mr suits four attorneys. but only one divided them. The attorneys Arthur former Lewis Gillihan. prosecuting attorney County Joshua and Dudley Homer Feurt president of the de funct today did any would found that any irregularities could explained. CASHIER Dr the city Rumors persisted that had fled Canada Mexico Mrs. Thompson questioned today. said had never been asked before whereabouts and that she had not thought worth while gossip letters from her Texas and which told loca tion said would immediately put the touch ask might clear up the seeming Mr. Gillihan. prose said nothing had put him looking toward any criminal proseattorney for the that knew there were some unexplained circumstances PROBE COLORADO One thing that studied the brought Colorado bank and the People's Home Bank Rocky Ford. Col. Thompson's Victor Thompcashier the Colorado closed two weeks bank's have been showing $20,000 deposit in the Farm Bank here, according Colorado examiner Queries sent returned with the deposit verified. the examiner added Gallatin bank showed more than $300 on de Martin TO TODAY. Be ExpectConnor The clouds would play return today Connor the program would the between and may April shower Temperature would in the

2. April 10, 1926 Linn County Budget-Gazette Brookfield, MO
Article from Linn County Budget-Gazette, April 10, 1926

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Article Text

LOSS BANK FARMERS EXCHANGE DEPOSITO MAY GET ONLY TEN CENTS ON REVEALS A $300,000 LIABILITY IN INDORSED AND SOLD NOTES-RECEIVER AMAZED AT IRREGULARITES BEING REVEALED Gallatin, Mo., April tors and customers of the Farmers' Exchange Bank of by its directors a because of "frozen beginning to find out all was not "ice," that there are in fact some particularly hot spots that have managed to "burn" depositors. Instead of depositors ultimately getting all of their back as they at first believed, they may get as low as ten cents on the dollar or even less. The bank's of them retired business men and widows who trusted their investments to the discovering that instead of good first mortgage notes the band has sold them second mortgages in many cases and in other cases merely unsecured and worthpaper. Settlement of the bank's affairs by J. N. Martin of Princeton, who resigned as a bank examiner to be come receiver, has not progressed to the point where he can make an adequate estimate as to where the affair will end, but he frankly admits he is amazed at irregularities coming to light, all tending to erase whatever chances depositors or customers had of realizing much. The indorsed and sold notes uncovered to date total more than $300,000 and constitute a liability against the bank that never appeared in published statements. Even the correspondent banks in Kansas City are finding their loans to the Farmers' Exchange Bank are not secured by collateral of the quality they thought. Notes owned by the bank here and put up in Kansas City were accompanied by the usual statements showing the assets and liabilities of the notes' mak+ ers. But investigators who are calling in makers of the notes are being told, in many cases, that their assets are not as great as they were represented, and their liabilities are more, although the statements purported to be signed by farmers and business and attested by the men bank officials. Attorneys for the receiver said today they expected to earn far more than the fee they would get, as the indications were that there be would an avalanche of suits to file and suits to defend. Mr. Martin, the receiver, has four attorneys, but only the one fee will be paid, to be divided among them. The Arattorneys are thur M. Hyde, former governor; Lewis B. Gillihan, prosecuting attorney of Daviess county; Joshua W. Alexander and Boyd Dudley. Homer Feurt, president of the defunct bank, said today he did not believe any criminal acts would be found in the bank's transactions and that any irregularities could be explained. Dr. R. B. Thompson, cashier, is not in the city. Rumors have persisted that he had fled to Canada or to Mexico. Mrs. Thompson, questioned today, said she had never been asked before as to her husband's whereabouts and that she had not thought it worth while to stop the gossip that she knew was afloat. She showed letters from her husband, written in Texas and Oklahoma, in which he told of his search for location for the practice of medicine. Mrs. Thompson said she would immediately put the bank receiver in touch with her husband to ask questions that might clear up some of the seeming irregularities. Mr. Gillihan, speaking as the prosecutor, said nothing had been put before him looking toward any criminal prosecutions, but added, as attorney for the receiver, that he knew there were some unexplained circumstances. One think that is being studied by the bank's which brought a bank examiner here from Colorado, is a transaction between this bank and the People's Home Bank of Rocky Ford, Colorado. Dr. Thompson's son, J. Victor Thompson, was cashier of the Colorado bank, which closed two weeks ago.

3. April 15, 1926 The Pattonsburg Call Pattonsburg, MO
Article from The Pattonsburg Call, April 15, 1926

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Article Text

Big Loss In Galletin Bank. GALKATIN, Mo., April 9 Depositors and customers of the Farmers' Exchange Bank of Gallatin -closed by its directors a month ago be cause of "trozen assets"-are beginning to find out all was not "iee," that there are in fact some partic ularly hot spots that have manage to "burn" depositors. Instead of depositors ultimately getting all their $521,572 back as they first believed, they may get as low as 10 cents on the dollar or even less. The bank's customers-many of them retired business men and widOWS who trusted their investments to the bank-are discovering that instead of a good first mortgage notes, the bank has sold them second mortgages in many cases, and in other cases merely unsecured and worthless paper. SETTLEMENT STILL UNDER WAY Settlement of the banks affair's by J. N Martin. of Princeton, who resigned as bank examiner to become receiver, bas not progressed to the point where he can make an ad equate as to where the affair will end, but he frankly admits he is amazed at irregularaities coming to light, all tending to erase whatever chances depositors or customers had of realizing much. The endorsed and sold notes un covered to date total more than $300,000. and constitute a liability agaist the bank that never appeared in published statements Even the corresponding banks in Kausas City are finding their loans to the Farmers' Exchange Bank are not secured by the collateral of the quality they thought. Notesowned by the bank here and put up in Kansas City were accompanied by the usual statement showing the assets and libilities of the notes makers. ASSETS NOT AS REPRESENTED But investigators who are calling in makers of notes are being told in many cafes. that their assets are not aa great as they were represont ed, and that their libilitiesare more. although the statement purported to be signed by farmise and business men and attested by the bank officials. Attorneys for the receiver said today they expected to earn far more than the fee they would get, as the indications were that there would be an avalanche of suits filed and suits to defend Mr. Martin, the receiver, has four attorneys, but only one fee will be paid, to be 01vided among them. The attoreys are Arthur M. Hyde, former guvernor; Lewis B Gilliban, prosecuting attorney of Daviess County; Joshua W. Alexander and Boyd Dudley. Homer Feurt, president of the defunct bank, said today he did not believe any criminal acts would be found in the bank's transaction, and that any irreguiarities could be explained. CASHIER STILL OUT OF CITY Dr. R. B. Thompson, cashier, 18 not in the city. Rumors have persisted that he bad fled to Canada or to Mexico. Mrs. Thompson, ques tioned today, said she had never been asked before as to her hus band's whereabouts, and she had not thought it worth hile to stop the gossip that she knew was afloat. She showed letters from her husdand, written in Texas and Oklahoma, in which he told of his search for a location for the practice of medicine. Mrs. Thompson said she would immediately put the bank receiver in touch with her husband to ask questions that might clear up some of the seeming irregularities. Mr. Gilliban, speaking as the prosecutor, said nothing had been put before him looking toward any criminal prosecutions. but added, as attorney for the receiver. that he knew there were some unexplained circumstances. PROBE A COLORADO TRANSACTION One thing that is being studied by the bank's receiver and which brought a bank examiner here from Colorado, is a transabtion between this bank and the People's Home Bank. of Rocky Ford, Col. Dr. Thempson's sou, J. Victor Thomp son. was cashier of the Colorado bank, which closed two weeks ago. The Colorado bank's records have been showing a $2,000 deposit in the Farmers Exchange Bank here, according to the Colorado examiner Queries sent here were returned with the deposit verified, the Colo rado examiner added. yet the records of the Gallatin bank never showed more than $300 on deposit, Martin said.