Bank of Telluride - Telluride, CO

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: September 1, 1929*
Location: Telluride, Colorado (37.937, -107.812)

Metadata

Model: gpt-5-mini
Short Digest: 9786c34d

Response Measures

Full suspension

Other: Bank closed by directors and placed in hands of state banking commissioner after president's fraud was discovered; arrests followed.

Description

Articles describe heavy withdrawals after mine closures and rumors, followed by the bank's failure to open and its affairs being placed in the hands of the Colorado state banking commissioner after Waggoner's swindle was exposed. No reopening is reported; state authorities took charge and the president was arrested.

Events (2)

1. September 1, 1929* Run

Cause: Local Shock
Cause Details: Closure of large Telluride mines and resulting local losses plus spreading rumors led depositors to withdraw funds.
Measures: Directors scrambled to obtain funds; Waggoner attempted to cover obligations through forged/coded telegrams and drafts to New York banks; directors telegraphed the state banking commissioner asking him to take charge.
Newspaper Excerpt: These rumors went from mouth to mouth and resulted in heavy withdrawals from the bank.
Source: newspapers

2. September 7, 1929 Suspension

Cause: Government Action
Cause Details: After Waggoner's swindle and the bank's deteriorating condition were revealed, the directors asked the state banking commissioner to take charge and the state commission took control.
Newspaper Excerpt: failed to open its doors A notice on the door said the institution's affairs had been placed in the hands of the state banking commission.
Source: newspapers

Newspaper Articles (6)

1. September 7, 1929 Nebraska Daily News-Press Nebraska City, NE

Article from Nebraska Daily News-Press, September 7, 1929

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COLORADO BANK HEAD HUNTED Institution Closed When President Suspected in Swindle Colo., Sept. bank of Tellurite, whose president. Waggoner. sought by police connection with swindle in New York, failed to open its doors A notice on the door said the institution's affairs had been placed in the hands of the state banking commission. Directors of the bank met this morning and after considering all information in their possession concerning Waggoner's activities, sent telegram the state banking commissioner asking him to take charge. officials said Waggoner frequently was absent from Tellurite for two or three months at time and they thought nothing of his departure week. Early this week however. when dectectives began make inquiries about Waggoner's whereabouts they became suspicious After the swindle operations in New York became public Thursday the directors decided that on the bank might prove fatal so acted in order to save depositors. Was in Nebraska. Neb., Sept. Waggoner, president of the bank of Tellurite, Colorado, wanted for questioning in connection with New York bank swindle was in Grafton Wednesday afternoon and visited for more than an hour with old friends. About Wednesday he driving out of town to the east. Accompanying him was his The two here for about hour and

2. September 11, 1929 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, September 11, 1929

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STOLETOPAY DEPOSITORS: BANKER SAYS InPresident of Admits Colorado New. stitution York Fraud. FOLKS HOME SAVED to Debts $200,000 'Paid' Prevent Ruin: Calm at Arrest. 11.sept. By United press Wyo., of a modern Tellu- Rob the whose Hood, bank cost Assuming C. the D. Waggoner president. Wall in (Colo.) confessed ride street Shrewdness $500,000, and alone New Main Street's today wizards he gigantic conceived depositoris York for executed here the to repay through bank swindle they sustained mines, owned and by eastern of deposits ing losses down and of large English interests, by owners of arhis those withdrawal properties. few hours Park, after a resort Within a night, Wagrest at here, Chamberday assumed manners for north of goner the of dropped suave eastern his of the financier small town knew when the business "Im simplicity glad man. it's it all was over, coming Waggoner Officers and said. not "I surprised for jail was found me. I shall The go to way I shall feel a hire even now the "I rest suppose I don't of my lawyer know life. whether when I I get to Got Denver. Nothing Personally he had real- the declared from was ized and his bank transactions Waggoner personally at only Telluride aim losing. and the 54 years. after he to prevent save man the of depositors Waggoner, from slight and "working A worried changed tired and He told by clothes," had unprepossessing appeared back hunt to for his him. possible. ten-day one "My the his bank story had as rapidly deposits The as mining at wanted in$1,750,000. bad. I bank that time dustry to get of some went the money to the New for York the Telluride banks be couldn't get back. would "It was my belief banks it of New of better to have the the people their lives Telluride, York to lose save who than the had money worked which all was in my bank. I sent the coded York telegrams and and "First, then the went drafts to New which the trans- Chase National presented ferred the bank I oney to the from credit of the Bank of Telluride. Tells of Swindle which described the swindle telegrams, He Wall Street. The wrote and amazed Waggoner said he bankers' which himself, written in to New filed were sent from Denver for trecode, banks asking credits York amounts. On Aug. 31, iden- Wagmendous appeared in New York, York goner tified himself, and the New from accepting the telegrams authentic, Denver them and Waggoner honored the banks, banks as drafts. collected $490,000 in certified he dined alone Tuesday night a two As officers entered and he was prisoner. The officers were ready for any emergency that might be expected and a desperate westerner, cool enough to take dollars away from calculating from million mannered, financiers. half a But they found a mild smiling man who yielded to arrest and said: "Sit down and eat with me." paid $260,000 of Waggoner Paid Bank's Debts debts with the bogus while York The his in New bank collateral Central credit of Han- this over bank released and mailed it to the TelluWhen the a ride amount was bank. revealed, swindle scramble scheme was started immediately for these "spoils." The federal government was enbecause the package sent listed lateral was through the of mails. colstate of because it of collateral boost The stability Colorado the would wanted Telluride greatly the Federal authorities ordered the to to the town after bank. Colorado package postal be delivered aid of Colorado's senators, Waterman and Phipps had been enlisted. State Bank Commissioner Grant said save the for the McPherson ride to bank while funds he the would New endeavor Tellu- York banks, it is indicated, will endeavor to recover losses through the courts.

3. September 12, 1929 The San Bernardino County Sun San Bernardino, CA

Article from The San Bernardino County Sun, September 12, 1929

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Small Town Banker Admits Plotting to Swindle Banks Confesses He Was 'Chump' to Think That He Could Get Away With Half Million United Press) Wyo., Sept. mining town banker whose nancial exploits equaled anything ever evolved by Robin Hood, Ponzi, Wallingford and Midas, awaited here tonight charging him with use of the mails fraud in with his most successful swindle of six New York banks. Upon his arrest here, Wagpresident of the Bank goner, Telluride, tiny mining town high in the southern Colorado mountains, confessed that he alone conceived and executed the gigantic swindle his depositors for losses repay they had sustained through the closing of large mines the Telluride district, owned by eastern and British interests, and the withdrawdeposits by the owners of the properties. Confesses He Was Chump to Do It was chump to think could away with said Waggoner changed from the fashionably tailored suit he had worn his New York expedition old work suit, one he had worn about his bank in Telluride "I'm glad its he continued wearily. knew coming and not surprised when officers found suppose that shall go to jail for the rest of my life. "There one blame but myself. The bottom had dropped things Telluride and considered that desperate move the "My bank had deposits at one time $1,750,00. The mining industry in Telluride went the bad. wanted get some money for the Telluride bank that the bankers couldn't get back. was my belief that would be better have the banks New York lose than the people of Telluride, who had worked their lives to save the money which was in my bank. "First, sent the coded telegrams to New York and presented the drafts which transferred the money from the Chase National bank the credit of the Bank of Telluride. Amazing Swindle Is Termed Simple had been doing business with the New York banks for many years. known there and believed they would accept the drafts. This idea of evading all the time beginning to get on swindle which amazed Wall street was termed "simple enough" by He said he wrote the telegrams in code and filed them himself. All directed to New York banks asked credit in large amounts. Then on Aug. with the regular and the Labor day holiday just before that he could up" while the banks were closed, Waggoner (Continued on Page Three)

4. September 12, 1929 The Fillmore Chronicle Fairmont, NE

Article from The Fillmore Chronicle, September 12, 1929

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he gave no indication during visit at Grafton, Neb., last week, Judge James Fitzgerald, who talked with the Colo., banker, says. Waggoner told Judge Fitzgerald that the city of Telluride, Colo., was in bad way because eastern capitalists had purchased the largest mine in the Telluride district and closed down, evidently to stop competition with other mining properties they owned in Colorado. This threw 1,500 out of work he said, predicting that the town would be almost repopulated by spring if mining is not resumed. Large losses suffered by the men also led to Telluride's, plight he said. WAGGONER CAPTURED Newcastle, Waggoner, the small town banker, who jolted financial powers in New York with execution of his scheme to half million dollars to protect depositors of his tottering bank in Telluride, Colo., expressed confidence Wednesday that he had complished his and anpurpose nounced he was ready to face criminal charges growing out of the transaction. Held in jail here after his arrest Tuesday night, Waggoner freely admitted victimizing the New York banks. The swindle he perpetrated, he declared, had placed the disposal of the bank of Telluride, sufficient credit, so that if the money were properly handled, none of his positors would lose any mony in the crash of his institution. The bank of Telluride is in the hands of the Colorado state banking missioner, having been closed days ago, when Waggoner's manipulations came to light. Waggoner said he rested Tuesday night after his arrest better than he had for weeks. Prior to the transaction worried because assets of the Telluride bank had decreased from to less than $500,000. He said crash was inevitable and he took "the only possible method" to protect his depositors. He showed little sympathy for the New York banks he victimized. The banker asserted that if the government would give him ten months time he would return to Telluride and clean Waggoner was arrested touriist park here after he had registered under the name of Barnett of Minturn, Colo. shall be compelled to forfeit my freedom. New York on the Saturday appeared there no ficulties. Bankers with whom had done business recognized me and the checks which presented at the Chase National were certified without hesitation. after they had been certified cluded my business with the Central Hanover, and Saturday night left New York and headed west. "There is mistake that any Chicago bank was used in conveythe draft to the First National bank of Pueblo. mailed that draft myself, later sending instructions as to how the money should be divided and making sure that the instructions were clear to send $50,000 in currency to the Bank of Telluride. want to repeat that whatever have done, did for the depositors. would rather see the New York banks lose than my people and friends at Telluride. have no particular affection for New Yorkers, but have great deal for the people with whom have worked and associated for

5. September 18, 1929 Evening Star Washington, DC

Article from Evening Star, September 18, 1929

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By the Associated Press. DENVER, Colo., September 18.-S. D. Crump of Denver, attorney for C. D. Waggoner, president of the Bank of Telluride, Colo., under arrest on a charge of defrauding six New York banks of $500,000, said in a statement today that his client, obsessed with but one idea—to protect his friends and neighbors—had become a confirmed paranoiac as the result of worry over the condition of his bank. The attorney, who gave his version of Waggoner's condition after questioning him for many hours, said the banker still believes he did the right thing. ### In Business 33 Years. "Waggoner came to Telluride 33 years ago," Crump's statement said. "After years of labor he built up a banking institution, in what was at that time a thriving mining camp, surrounded by prosperous grazing and stock ranches. During the near-panic of 1907 Waggoner's bank was so strong that he was able to ship to urban banks gold coin in large amounts, reaching at times into six figures, and this at a time when many banks were closed and many more refused to pay out cash. He kept a large balance at these city banks; his business was sought after as a valuable asset. He built up deposits exceeding $1,500,000 and had loans aggregating more than $1,000,000 secured by what in those times were regarded as gilt edged securities. When the slump came after the World War inflation, good securities were not so good. "Mines were being closed, the cattle industry suffered severely and collections became exceedingly difficult. Then came a time when, instead of loaning money, the bank was compelled to borrow. Among other harassing conditions, certain enemies at home began whispering that the bank was in a failing condition. These rumors went from mouth to mouth and resulted in heavy withdrawals from the bank. ### Saw Financial Storm. "Waggoner saw the financial storm gathering ahead of him, unless he could secure more funds to tide him over. He rated himself to be worth, including a $200,000 deposit in the bank of

6. September 18, 1929 The Butte Daily Post Butte, MT

Article from The Butte Daily Post, September 18, 1929

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TWO TEACHERS CALLED BANK CASE Nieces of Waggoner Asked to Relate Part They in Aiding Uncle to Put Over "Fraud" Scheme. NEW Sept. pretty young school teachers from Rocky Mountain region Colorado, went before federal grand jury today tell what part they played aiding their uncle, banker, defrauding six New York financial institutions million dollars. The and Amelia Jones, nieces Charles president of the Bank Telluride, Colo. IS CONFIRMED PARANOIAC COLO., Sept. Waggoner, according to torney. Crump Denver, obsessed one protect friends had come "confirmed paranolac" result worry the condition the Bank of Telluride the press today, Crump, retained by Waggoner following the arrest the banker charge defrauding banks version the bankcondition after many The attorney describes his client did believe Poing in his expense the New believes, his attorney that right thing. came Telluride years labor built banking that thriving rounded near large many refused balances deposits gating more than one million dollars, secured by what in those times regarded When the slump after the World war good securities were not good. Compelled Borrow. being closed, the tle industry suffered severely and lection became exceedingly difficult. Then time when instead loaning money the bank was compelled borrow. Some secured applications denied. Among other harassing ditions, certain home whispering that the bank failing These and heavy, withdrawals from the bank. the financial storm gathering ahead unless secure funds tide him He rated himself to be including deposit bank own, better than million dollars. He became obsessed idea, protect his friends and neighbors third became sole mission in life. spent York Denver an effort secure loans, and he denied where he had carried Insured for sought to insuring attorney security for thought ride could protect everybody, thought then was he bank until the suicide the there would to his and him more the attorney he big that banks York for