The articles describe the Bank of Hyder voluntarily suspending business on April 12, 1932 and going into voluntary liquidation; a receiver was requested/appointed and the bank remained closed (insolvent) while receivership distributed dividends over subsequent years. No bank run is reported. Cause for suspension is voluntary liquidation due to depressed local mining conditions and reduced reserves/frozen assets.
Events (8)
1.April 12, 1932Suspension
Cause
Voluntary Liquidation
Cause Details
Directors decided to voluntarily suspend business and go into voluntary liquidation due to depressed economic conditions and the decline in local mining and metal values, which reduced deposits and reserves.
Newspaper Excerpt
The Bank of Hyder ... voluntarily suspended business Tuesday morning ... the board of directors ... go into voluntary liquidation
Source
newspapers
2.April 13, 1932Other
Newspaper Excerpt
The Bank of Hyder, capitalized for $25,000, has been ordered closed by the Territorial Banking Board ... a receiver be named to take it ... H. E. Haddon ... named custodian pending further action by the Banking Department.
Source
newspapers
3.April 13, 1932Receivership
Newspaper Excerpt
the Banking Board ... to ask for the appointment of a receiver ... H. E. Haddon, cashier of the institution, has been named custodian pending further action
Source
newspapers
4.September 3, 1932Other
Newspaper Excerpt
E. D. Haddon, receiver for the defunct Bank of Hyder, commenced this week the payment to depositors of fifty per cent of the deposits in Canadian funds held by that institution ... voluntarily closing its doors on April 12
Source
newspapers
5.October 14, 1932Other
Newspaper Excerpt
Judge Justin W. Harding ... signed an order authorizing the payment of an additional dividend of 15 per cent to the creditors of that institution. This makes a total of 65 per cent paid to the depositors of the Hyder bank.
Source
newspapers
6.January 11, 1933Other
Newspaper Excerpt
The issuance of a dividend of 12 1/2 per cent to creditors of the defunct Bank of Hyder ... This is the third dividend ... making the total to date 77 1/2 per cent.
Source
newspapers
7.June 29, 1934Other
Newspaper Excerpt
Creditors of the defunct Bank of Hyder have received a fourth dividend of five percent, bringing the total returns to depositors to 82 1/2 percent.
Source
newspapers
8.October 27, 1934Other
Newspaper Excerpt
Deposit creditors of the insolvent Bank of Hyder will receive next Monday a Receiver's check representing a payment of 7 1/2 per cent ... bringing to a total of 90 per cent the amount so far returned to depositors under the receivership.
Source
newspapers
Newspaper Articles (16)
1.April 13, 1932The Daily Alaska EmpireJuneau, AK
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BANK OF HYDER CLOSES DOORS RESERVE FALLS Banking Board to Ask for Receiver for Portland Canal Bank The Bank of Hyder, capitalized for $25,000, has been ordered closed by the Territorial Banking Board, it was announced today by W. G. Smith, Territorial Treasurer and Secretary of the Board. Deposits at the time of the bank's latest report were approximately $40,000. The closure was decided upon last night at a special meeting of the Banking Board which was called by Gov. Parks immediately upon his return here from Sitka, to consider a request of the bank for the appointment of a receiver. H. E. Haddon, cashier of the institution, has been named custodian pending further action by the Banking Department. A telegram received by it yesterday from J. A. Hall, President of the bank, said owing to the call of some loans of the bank by outside institutions its legal reserve was reduced below the necessary 20 per cent mark and asked that a receiver be named to take it
2.April 16, 1932Hyder Weekly HeraldHyder, AK
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BANK OF HYDER SUSPENDS BUSINESS The Bank of Hyder, the Hyder district's sole banking institution, voluntarily suspended business Tuesday morning as a result of conditions created by the prevailing economic situation combined with the present depressed state of the local mining industry resulting from the great fall in silver and other metal values in the world markets. The decision to suspend business and go into voluntary liquidation was take by the board of directors at a meeting held Monday evening, after a survey of the bank's position and outlook had revealed assured inability to maintain profitable operation under present conditions and with risk of incurring unwarranted losses to depositors and stockholders. As a result of this timely decision, the bank is in a position to return to depositors a large percentage of their deposits within a short period, according to the bank officials. In addition, there is every prospect that in the final adjustment of the bank's affairs, depositors will be reimbursed in full. Mr. E. D. Haddon, cashier and manager, explains the bank's position in the following statement to the Herald: "Owing to the continued deand gradual shrinkof age pression deposits, combined with to realize on ions inability fast enough, the directors collectof the bank decided that in the interests of depositors and it was advisable stockholders to go into voluntary liquidation and discontinue the business of banking. "As soon as the legal formalities are completed, a substantial dividend will be paid and it is expected that depositors will be paid in full in the very near future." Following the board's decision the Territorial Banking Board was advised of the situation by telegraph and request was made for the appointment of a receiver to take charge of the business pending liquidatthis the ion. To banking adjust board replied that action to the bank's affairs would be taken as soon as possible. Pending appointment of a receiver by the district court at Juneau the banking board appointed Mr. Haddon custodian. It is also desired by a majority of the depositors that Mr. Haddon be appointed receiver and that this the present outlook is may be done. Although the absence of a local banking institution will undoubtedly prove a serious hardship to the business elements, it is believed that the failure will not precipitate further business dissolutions. The Bank of Hyder was established in 1920 with Mr. J. the present president, and as A. president Hall, managing director and has been one of the most important factors in the upbuilding of the camp and advancing local business and industry. Efforts are now being made to arrange for the handling of
3.April 16, 1932Hyder Weekly HeraldHyder, AK
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The Bank Suspension The voluntary suspension of the Bank of Hyder this week under stress of present economic inhibitions was the most regrettable development that has so far occurred in the business life of the community and is deeply deplored by everyone possessing a proper appreciation of the value of such an institution in the growth and progress of the town. The suspension culminated more than a decade of successful operation, during which the bank and its officers were among the most important influences in the district's business and communal advancement. While maintaining throughout its carreer a policy of careful conservatism, the institution has been at all times ready to assist every legitimate and promising enterprise. Indeed it may be said that there is scarcely a business enterprise in the community which does not owe its present existence in some degree to the financial and moral influence of the Bank of Hyder. For this reason alone there is owed to the bank and its officials a vast debt of gratitude and appreciation, which unfortunately can never be discharged. Many may not at once realize that the passing of this pioneer institution will affect in some egree almost every phase of the communal life and the affairs of virtually every individual, nor fully appreciate the fact that the effects of the suspension will extend far beyond the actual communal boundaries of Hyder and that it will tend to seriously curtail the scope of local credit and exchange with the outside world. Among other things, the conduct of local as well as outside business will be made more difficult and numerous activities associated with finance and trade which have heretofore been handled through or with the assistance of the bank will devolve upon the individual. It is probable that until these effects are actually felt the community at large will not realize the real value of the bank's presence and activities
4.April 26, 1932The Daily Alaska EmpireJuneau, AK
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DEPOSITORS IN HYDER BANK TO BE FULLY PAID Freezing of Assets Forced Bank to Close Doors, Smith Declares Depositors in the Bank of Hyder, which recently closed its doors voluntarily, will eventually receive every cent, the Territorial Banking Board has been assured, it was announced today by W. G. Smith, Treasurer of Alaska, who returned home Saturday evening after a trip to the Portland Canal mining camp where he made an examination of the bank's afairs. The bank's books disclose a freezing of sound assets was responsible for the decrease in its legal reserve which led its officers to ask the Banking Board to ask for the appointment of a receiver. Its total liabilities, including deposits, surplus and other items are fixed at $83,418.60 with assets of equal amount. Inability to liquidate securities for some of its loans resulted in the institution's closure. Its loans aggregated slightly more than $42,000 most of which are sound and and can be collected in time. Liabilities to depositors are placed at $39,140.06, Mr. Smith said. It is expected that an initial dividend of 50 to 60 per cent will be paid to them as soon as a permanent receiver can be appointed and make the necessary arrangements for it. A petition signed by the principal creditors of the institution has been received by the Banking Board asking that D. E. Haddon, temporary receiver, be appointed permanently until the affairs of the bank have been straightened out and all claims satisfied. This has been approved by the Board and will be presented to Federal Judge Harding at once. Mr. Smith is confident that the bank's depositors will receive every cent, although it may take some time to clear up the situation.
5.August 19, 1932The AlaskanPetersburg, AK
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The Press--TheTax Bill--The Bank Reserves and Tight Money X One bank in Alaska failed re- sponsible only to a Colorado Sently. Others are worried. This nator. That is what broke the Bank ndition is due directly to two fluences-The Juneau Empire of Hyder. We are not alarmists and add the Territorial Treasurer ded by the Governor of Alaska. vocate no runs on banks-any bank But business men should Keep in mind that the bank see the connection between false serves are now down to 201/2 tests and false leadership. It is r cent. The legal minimum is time for business men to puncper cent. This reserve consists ture the soap bubble that Walmost entirely of Territorial stein G. Smith is a fine treaoney deposited by Mr. Smith in e surer acquainted with sound banks of the Territory. This principles of business. And when oney amounts to $400,000 which our supine governor says nothbeing withdrawn at the rate ing at the right time (or ever) $80,000 per month. to protect the public from the As this $80,000 is withdrawn, ignorance of our expensive book ach bank must make up its rekeeper, (who uses the old singlerve by calling in loans elseentry system), he must take the here, by refusing legitimate blame for what comes. And the ans to business. reputation which the Empire What will happen when the gives nitwits who announce tire $400,000 is withdrawn? proudly "that taxes will not be Here is what has happened. The last legislature increased increased" should be reversed by an outraged public opinion. opropriations about $300,000 The Senator-insurance clerk and hd yet relying on a financial tool of special interests as Chair eet furnished by Treasurer n'an of the Senate Finance mith, which was only $300,000 Committee, was the spokesman rong, and directed by Demoof Treasurer Smith. And right at ratic Senator Allen Shattuck his elbow, afraid to say anything hd Tony Dimond (now candi(if indeed he understands the ete for Delegate to Congress), relation of taxes to expenditures, e legislature refused to in and territorial deposits in banks rease taxes. This has long been he test imposed by the Juneau to the legal reserves required) mpire to prove Alaska's friend- sat Senator Anthony J. Dimond, hip for Capital. This refusal now described as "the ablest as in the face of figures pre- man ever presented to the electnted by Territorial Auditor crs of Alaska as a candidate for ash Cole which showed an in- Delegate to Congress." Leadership! Where is it, dequate revenue bill and deIt may be found in the sancreasing income from the salmtorum of a despised "siwash pah industry. per" and its assistants. It naturally follows that AlasTen years ago, we predicted a has been spending more than these hardtimes-who else did? er revenue. The Territory is During all these years we have herefore compelled to withdraw balances from the various demanded that appropriations s anks. This reduces the bank's be reduced, and failing to secure urplus fixed by the legislature this we have insisted that taxes t 20 per cent. When the reserv- be increased to meet those inS gets lower than 20 per cent, creasing appropriations. Outside of Auditor Cash Cole he bank must close. So the bank as to fight for its life by calling and William L. Paul and their friends, who else has? The Keth its loans. You Mr. Business Man, must chikan Chronicle? The Juneau aise the money for the bank Empire? The Petersburg Press? ven at a great sacrifice. The All due respects to the gentlehoney must be repaid even men of the Fifth Dimension, hough you go broke-all be-they are owned body and soul by ause of the false test of friend-Big Interests or they are SC hip raised by the Empire, sup-damnable ignorant that they acorted by a dumb treasurer intually believe that all the Terrileague with a glorified railroadtory is ignorant save their own cierk, rubber stamp governor re-brainless heads.
6.September 3, 1932Hyder Weekly HeraldHyder, AK
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Bank Pays Canadian Accounts E. D. Haddon, receiver for the defunct Bank of Hyder, commenced this week the payment to depositors of fifty per cent of the deposits in Canadian funds held by that institution at the time of voluntarily closing its doors on April 12 as a result of the long continued depression and resultant decline in local industry and business. Drafts on the Vancouver branch of the Bank of Montreal covering half of the Canadians funds deposits were received by Mr. Haddon from the Juneau depository Tuesday and distribution was commenced immediately. With the completion of this distribution the bank will have returned to depositors fifty per cent of all deposits, a similar distribution of American funds having been made last week.
7.September 10, 1932Hyder Weekly HeraldHyder, AK
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Bank Dividend Over $15,000 With the completion of the first dividend payment of 50 percent authorized by the District Court, the Bank of Hyder will have returned to its depositors $15,489.75 under the order signed by Judge Justin W. Harding, according to Juneau reports. In addition, Receiver E. D. Haddon was also directed to pay one preferred claim to the Hyder Postmaster for $181.51. In addition to these disbursements, bonds worth $15,000 deposited with the Territory of Alaska as security for deposits of Territorial funds, were sold recently for a sufficient amount to reduce to $1,237.35 the claim of the Territory. Fifty per cent of this balance is covered by the dividend ordered paid to creditors. A statement rendered the court by Receiver Haddon of the assets still to be realized upon is said in the reports to consist largely of loans to reputable business firms and individuals and indicates that the creditors will be paid in full when the bank's affairs are finally settled.
8.October 14, 1932The Daily Alaska EmpireJuneau, AK
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NEW DIVIDEND ON HYDER BANK IS AUTHORIZED Harding Approved Payment of Additional 15%, Making Total 65 On the petition of R. E. Robertson, attorney for the receiver of the Bank of Hyder, Judge Justin W. Harding, yesterday afternoon signed an order authorizing the payment of an additional dividend of 15 per cent to the creditors of that institution. This makes a total of 65 per cent paid to the depositors of the Hyder bank. Several weeks ago, a 50 per cent payment was made. It is said that the remaining assets, as soon as they can be liquidated will be sufficient to cover all indebtedness. Judge Harding yesterday admitted a few small claims against the bank, amounting to $55.29, and both dividends were ordered extended to them.
9.October 15, 1932Hyder Weekly HeraldHyder, AK
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Bank To Pay Second Dividend Next Week E. D. Haddon, Receiver of the insolvent Bank of Hyder, announced Friday that a secend dividend, amounting in this instance to 15 per cent, will be paid to depositors next week under an order of the federal district court at Juneau effective October 14th. Under the order approximately $4,700 will be distributed to the depositors, bringing the total amount returned by the receiver to date to 65 per cent of all depositor's claims. Mr. Haddon informed the Herald that checks covering claims for United States funds will be available for distribution next Tuesday morning and those not called for will be mailed to claimants Wednesday afternoon. Payment of dividends on Canadian funds will not be made until about the third of November, as drafts must first be secured from the Juneau depository and requests for them cannot leave here before October 20 under the present mail schedule. The return of 65 per cent of deposits within the past few weeks is not only highly gratifying to depositors but also to the former officials, as it provides undeniable evidence of good management of the bank's affairs prior to going into voluntary insolvency as a result of the depressed business conditions in the camp. Furher returns of depositors' funds are expected to be made as soon as still unliquidated assets are converted into money, with every prospect that depositors will ultimately be reimbursed in full,
10.January 11, 1933The Daily Alaska EmpireJuneau, AK
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DEFUNCT BANK OF HYDER PAYS THIRD DIVIDEND Court Approves 121/2 Per Cent Payment Hope for Full Payment Soon The issuance of a dividend of 12 1/2 per cent to creditors of the defunct Bank of Hyder, Alaska, was approved yesterday in the Federal District Court on the petition of R. E. Robertson, attorney for the receiver, D. E. Haddon. This is the third dividend to be declared-the first for 50 per cent, the second for 15, making the total to date 77 1/2 per cent. The receiver is hopeful of paying up the entire list of debts in the near future, Mr. Robertson said today. The bank, which closed its doors voluntarily last summer, had almost enough assets to liquidate in full at that time, but its cash reserves had fallen below the required amount. Declining bond and stock values was responsible for the failure.
11.January 14, 1933Hyder Weekly HeraldHyder, AK
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BANK MAKES THIRD RETURN TO DEPOSITORS Payment of a twelve and onehalf reimbursement dividend to depositors of the defunct Bank of Hyder was announced this week by E. D. Haddon, Receiver. Under an order of the United States District Court issued on January -2, approximately $4,000 will be returned to depositors, commencing today. The dividend is the third to be paid since the establishment of the receivership early in the the past summer, following the voluntary closure of the bank April 12, and represents a return of 77 1/2 per cent of all depositors claims against the bank. This means in terms of dollars that $33,000 of the $40,000 owed by the bank to its depositors will have been returned to them when the distribution is completed, leaving only $7,000 of all depositors claims still unpaid. To secure the ultimate repayment of this balance, the receiver has available over $51,000 in assets, hence there is every prospect that claimants will ultimately receive the full amount of their claims. With any measureable improvement in local conditions, this can be done very quickly, according to Mr. Haddon. Checks for claimants to United States funds were mailed by Mr. Haddon today, but claimants of Canadian funds will have to wait for their dividend until January 26, as the checks covering such claims must be issued by the depository of the funds in Juneau and cannot reach here before that date. Mr. Haddon was unable to inicate just when a further dividend can be expected, as it will depend largely upon the time required to convert still unliquidated assets into cash.
12.February 25, 1933The Kusko TimesTakotna, Tokotna, McGrath, AK
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# Alaska Notes
Gathered From Territorial Exchanges.
A dividend, of, 12 1-2 per cent was recently paid to the creditors of the defunct Bank of Hyder, This is the third dividend to be declared—the first for 50 per cent, the second for 15 per cent, makin gthe total to date 77 1-2 per cent. Thereceiver is hopeful of paying up the entire list of debts in the near future.
A movement has been started at Anchorage for recognition nationally and also some suitable reward for little Norah McKinley, 12-year-old Copper river girl, who mushed alone 22 miles on snowshoes, traveling all night, to Copper Center to get an airplane to rescue Amos Fleury, trapper, whose feet were badly frozen. Pilot Harold Gillam took the man to the Cordova hospital, where it is said Fleury's life will be saved, but it is a question as to whether his feet can be saved.
13.May 6, 1933Hyder Weekly HeraldHyder, AK
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IN THE DISTRICT COURT FOR THE TERRITORY OF ALASKA, DIVISION NUMBER ONE, AT JUNEAU. E. D. HADDON, as Receiver of the Bank of Hyder, Insolvent, Plaintiff, vs
14.March 24, 1934Hyder Weekly HeraldHyder, AK
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Hyder Garage Equipment Sold Deputy United States Marshal William H. Caswell paid the camp a flying visit Thursday for the purpose of selling under mortgage foreclosure proceedings the tools and other equipment of the Hyder Garag equipment of the Hyder Garage and Service Station, owned formerly by W. R. McDonnell, and C. B. Hager. After selling the property to E. D. Haddon, claimant under the mortgage as receiver for the Bank of Hyder, and the only bidder, for $500, Deputy Caswell returned to his headquarters in Ketchikan on the mail boat, on which he arrived.
15.June 29, 1934The Wrangell SentinelWrangell, AK
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Creditors of the defunct Bank of Hyder have received a fourth dividend of five percent, bringing the total returns to depositors to 82 1/2 percent. As the nominal value of the assets still in the hands of the receiver exceeds the balance owing to depositors, the ultimate liquidation of all outstanding depositors' claims appears reasonably assured. There is also an excellent prospect that stockholders of the bank may receive a substantial part of their investment.
16.October 27, 1934Hyder Weekly HeraldHyder, AK
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BANK RECEIVER ANNOUNCES FURTH. 3 DIVIDEND PAYMENT Deposit creditors of the insolvent Bank of Hyder will receive next Monday a Receiver's check representing a pay ient olf 7 1/2 per cent of the amount due them under their claims. it was announced late this week by Receiver E. D. Haddon. The payment will bring to a total of 90 per cent the amount SO far returned to depositors under the receivership and further dividends are confidently expected before the receivership is closed, according to Mr. Haddon. How soon additional payments can be made is dependant upon how soon the remaining assets can be converted into cash. Taking into consideration the severe local conditions and resultant difficulty in liquidating securities, the record of the receivership SO far has been an exceptional one. Statistics show that comparatively few insolvent institutions return as much as 90 per cent on outstanding claims, even under far more favorable conditions than have prevailed in Hyder during the past four years. That Receiver Haddon has been able to do so speaks volumes, not only for the administration of the receivership but also for the management of the bank's affairs prior to its unfortunate dissolution under pressure of unavoidable economic and industrial conditions incident to the great depression.
