First National Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 5587
Charter Number: 5587
Start Date: March 16, 1932
Location: Alva, Oklahoma (36.805, -98.666)

Metadata

Model: gpt-5-mini
Short Digest: 39cc3006

Response Measures

None

Receivership Details

Depositor recovery rate: 22.0%
Date receivership started: 1932-03-18
Date receivership terminated: 1938-02-28
Share of assets assessed as good: 60.3%
Share of assets assessed as doubtful: 31.9%
Share of assets assessed as worthless: 7.8%

Description

No explicit depositor run is described. The bank was temporarily closed by its board in March 1932 (reopened then), later closed by state bank examiners and declared defunct with receivers appointed (per articles Dec 1933 and ongoing receiver litigation in 1932-1934). Thus this is a suspension (by examiners) that led to permanent closure/receivership. Court litigation over pledged securities is also documented.

Events (6)

1. September 28, 1900 Chartered

Source: historical_nic

2. March 16, 1932 Other

Newspaper Excerpt: temporary closing of the First National Bank by its Board of Directors. The needed adjustments made, the pioneer institution will be re-opened.
Source: newspapers

3. March 18, 1932 Receivership

Source: historical_nic

4. July 22, 1932 Other

Newspaper Excerpt: Temporary restraining orders were granted ... to prevent Woods county, Alva city, Alva school district and state treasurers from disposing of approximately $142,000 worth of securities ... held as protection on deposits in the defunct First National bank. The suits were filed by J. Murphy, receiver.
Source: newspapers

5. December 1, 1933* Suspension

Cause: Government Action
Cause Details: Closed by state bank examiners prior to appointment of a new receiver.
Newspaper Excerpt: Mr. Kavanaugh will succeed John Murphy, resigned, receiver for the institution since was closed by the state bank examiners.
Source: newspapers

6. December 5, 1933 Receivership

Newspaper Excerpt: Appointment of W. Kavanaugh, city hardware merchant, receiver for the First National bank, announced here today. Mr. Kavanaugh will succeed John Murphy, resigned, receiver for the institution since was closed by the state bank examiners.
Source: newspapers

Newspaper Articles (7)

1. March 16, 1932 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, March 16, 1932

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YOU KNOW? By R. J. Scott DID its wheat holdings to Thina the we had to wait ten fifteen years for the money. The Board's holding of 150 million bushels is a serious impediment to price recovery. With it out of the way farmers could reasonably expect 20 to 30 cents per bushel more for their 1932 crop. That would offset the less sustained by the Farm Board and 1/0 far towar restoring prosper ity. Every wheat farmer would have more money to spend and could thus benefit the whole country. The Reconstruction Corpora tion can help the banks; but the farmers can not borrow on their low priced stuff Only better farm industry can set the wheels of commerce and industry in motion again. Dunn further points out that the U. can not afford burn or sink the surplus wheat in the ocean. The whole world would hate us for such wanton destruetion in time of dire need. Better to supply first our own needy and sell the rest on any terms to other nations. Storage charges are about "eating it up already People shoul not be unduly alarmed the temporary closmg of the First National Bank by its Board of Directors. The needed adjustments made, the pioneer institution will be re-opened. It not the first time we had bank to close temporarily. And the present case will sustain our proud boast that no depositor ever lost a dollar in a bank in Woods counGermany is to be congratulated in sustaining constitutional gover rnment in Sunday's election. The not le old patriot, Marshal Paul von Hindenburg, is practically reelected: will be in fact unless Hitler pulls a Howard Walker in the runoff on April 10th. Thus democracy again triumphs. The election presents some queer phases. Six years ago, when the warrior was chosen to succeed Fredrich Elbert, he was the candidate of the extreme right. Herr Marx was the candidate of the Centrists and Social Democrats. It was then feared that Von Hindenburg would favor the rich, the aristerats and the military clique. Some visioned the restoration of the monarchy B t to their surprise the old veteran recognized only his duty to the Vaterlan: irrespective of parties and factions. This time he is the candidate of the parties, the bulwark of German democracy who six years ago opposed him Each of his three opponents would have overthrown democratic government. Duesterberg makes frank avowel of his intention to re store the Hohenzollerns to power Hitler is the exponent of fascism and would ape Mussolini. Thaelman spokesman for the dictator ship of the proletariat. fashioned after the Russian Soviets. Hence we of democratic America are glad to see Germany vanquish the threat of despotism and sustain democratic government. Yours Herb Gold

2. July 22, 1932 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, July 22, 1932

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SECURITIES TIED ORDER OF FEDERAL COURT Bank Receiver Will Get Hearing Sept. Temporary restraining orders were granted in federal court at Oklahoma City late Thursday by Judge Edgar S. Vaught to prevent Woods county, Alva city, Alva school district and state treasurers from disposing of approximately $142,000 worth of securities and warrants, held by them as protection on deposits in the defunct First National bank. The suits were filed by J. Murphy, receiver. Judge Vaught set the hearing on petition to make the injunction permanent for September 6. Posted as Security Mr. Murphy today declined to discuss the case. The suits tie up $75,000 in warrants and securities held by Jay Hess, city treasurer; $30,000 held by Howard G. Walker, county treasurer; $30,000 held by Ray O. Weeks, state treasurer; and held by W. Fowitz, Alva school district treasurer. All of these securities and warrants were posted with the various treasurers by bank officials to secure deposits in the institution. Had Sought Settlement In the cases of the county, city and school district, amount of the securities held exceeded slightly the amount of deposits. County Treasurer Walker said the filing of the suits have prevented move to foreclose on the securities and would tie up the funds involved still longer.

3. December 15, 1932 Woodward Daily Press Woodward, OK

Article from Woodward Daily Press, December 15, 1932

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Article Text

BANK RECEIVERS CASE CONTINUED Haynes Too III To Appear; Federal Court Over Today Federal court case of Sidney W. Haynes, receiver for the First National Bank VS. C. M. Bradbury opened Wednesday today was continued for further closs examination of Haynes. The defendant was too ill to appear in court today. Further evidence will be taken in Oklahoma City the first week in January. Final law case on the docket, Gus Hada vs. J. W. Murphy, receiver for the First National Bank of Alva, was disposed of this afternoon, bringing the session to close.

4. December 28, 1932 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, December 28, 1932

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BRIEF FOR SUIT MADE BANK School Case County, Nearly Complete Brief of the city's case in the suit of the First National bank ceivers to recover securities pledged against tax funds by the bank, has been completed, Jay Hess, city treasurer, said today. The city case is different from the case of the county and city school board, joint parties in the bank action. No state law requirmunicipalities to secure their funds, as in the case with the county and school board, but the pledge was made at the request of the city treasurer. Briefs for the county and school board are being prepared and probably will be completed shortly after the first of the year. Fifteen days will be given at(Continued on page 3)

5. December 5, 1933 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, December 5, 1933

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TAKE BANK RECEIVER Named Wednesday By Comptroller Of Currency Appointment of W. Kavanaugh, city hardware merchant, receiver for the First National bank, announced here today. Mr. Kavanaugh will succeed John Murphy, resigned, receiver for the institution since was closed by the state bank examiners. Appointment to the receivership post was made by nor, comptroller of the currency, Washington, Notice the appointment was received from Mr. O'Conner late Monday evening. Commission of appointment and further instructions being forwarded to Alva immediately. Mr. Kavanaugh will take the ceivership reigns from Mr. Murphy's hands Wednesday morning. Selection of Mr. Kavanaugh the First National receiver came as complete surprise to him. He said he had been given no inkling that he was being considered for the appointment.

6. February 6, 1934 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, February 6, 1934

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BANK APPEAL TRAVEL SUPREME Ruling in Illinois Suit Makes Case For Receiver appeal to the United States court from ruling by Vaught, federal judge, OkJahoma City, denying the right of receivers of the defunct First National bank to recover securities pledged against public fund today. Attorneys for were they drafted their by ruling of the S. court today in an Illinois which the court asserted national banks have no au. to pledge securities to guardeposits public funds. This ruling was in direct oppoto that of Judge Vaught, who that the pledges of the National bank to the county the city treasurer, the school board treasurer and the treasurer were valid. Weems Sees Opening The United Press quoted Ray state treasurer, however, saying he believed the ruling not affect this state as Ok law did not specify that national banks could not pledge to guarantee public funds. Weems said the U. supreme court would be guided by state and pointed out that the state supreme court has ruled that tionah banks make such may pledges. In the face of the state court's and Judge Vaught's ruling, howattorneys for the First National bank receivers were confident that strong case could be presented in the supreme court with the Illinois ruling behind them. City Suit to Guide Told that the supreme court had that national banks have no to securities to authority pledge of public funds, asserted: "That one contended all the what we have time." Howard Walker, county treasurthe ruling in much the viewed the state treasurer light that the ruling would but agreed appeal from Judge make an Vaught's decision certain. The United Press said that in connection with $15,000 First Nacurities pledged by the of Alva now pendtional bank in federal court before Judge and the decision Edgar Vaught would establish this likely case the status of the practice of quiring pledges. Thousands Involved the city has In round numbers, $20,000, the $60,000, the county $3,000 and the school district surely for Bonding companies, that the treasurers, required of be guaranteed by public funds of securities before pledges bonds for the

7. September 5, 1934 The Alva Review-Courier Alva, OK

Article from The Alva Review-Courier, September 5, 1934

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Involved In Action Wednesday Before Court Of Appeals legal talent will be internecine strife next rayed in Wednesday morning Denver in one of the most bat at suits local history, First National bank securities The case. The trek to Denver will be started attorneys paid by the city, school district, the county the state this more local attorneys will represent the comptroller of the currency Only Randall Cobb. representing the state office. from outside the ranks of the Alva Bank Hires Law Firm firm Mauntel and The law the First Spellman representing bank receiver and the National comptroller of the currency Lasley and Crandall. present county attorney and former respectively, will county attorney, treasurer. Howrepresent county Walker, county treasurer, will ard fill out the county's representation. Chase and Glaser, present city attorney and former city respectively, and treasurer, will go from Hess, city The council accounts for the officials last night. Hour for Argument Houts will represent the city school district. All four cases, practically identical, probably will be decided once by the tenth circuit court before whom the cases will appeals, argued. An hour of oral argument will be permitted on each of the question The court probably will extend the time to attorneys questions on different points involved in separate cases. But the arguments will The court will then take the cases under advisement and will render written decision. possibly within day the arguments heard. Would Prorate Lost defunct First National bank's securities are involved. These were pledged by the bank against deposits public funds. The the bank to recover them. He lost his first skirmish with Federal Judge Edgar Vaught. Should the receiver win his peal, then school district. the the city and the state must their deposits the same other depositors. Should through this be able to pay say, cents on the dollar, then bonding companies with whom the four treasurers their bonds would have to make up the cents difference. COBB LEAVES OKLAHOMA CITY. Sept. Randall Cobb. assistant attorney general, leave Saturday for Denver. where he will the state next Wednesday in bank before the Circuit Court of Appeals. Cobb also represent the Woods county attorney, who, with Alva school board and the city Alva, has similar appeals in the bank case pending circuit court.