Articles report a heavy run (blamed on rumors) that led the First National Bank of El Paso to fail to open Sept. 4, 1931. A national bank examiner took charge and a receiver was appointed; later fundraising attempts to reopen occurred (Nov 1931) but plans to reopen were abandoned (Feb 1932) and liquidation continued. Classified as run → suspension → closure (receivership).
Events (7)
1.June 6, 1881Chartered
Source
historical_nic
2.September 4, 1931Receivership
Source
historical_nic
3.September 4, 1931Receivership
Newspaper Excerpt
A national bank examiner took charge of the El Paso institution. ... the unfortunate receivership (letter later calls it a receivership).
Source
newspapers
4.September 4, 1931Run
Cause
Rumor Or Misinformation
Cause Details
Newspapers state the president blamed rumors and heavy withdrawals for the run that began when the bank failed to open Sept. 4, 1931.
Measures
Bank failed to open its doors; later closed and examiner took charge; other local banks lent funds/kept open to meet payrolls.
Newspaper Excerpt
President Frank M. Murchison blamed rumors and heavy withdrawals of deposits for the action.
Source
newspapers
5.September 4, 1931Suspension
Cause
Government Action
Cause Details
The bank failed to open amid heavy withdrawals and a national bank examiner assumed control (closure/suspension by federal examiner).
Newspaper Excerpt
The First National bank of El Paso failed to open its doors today. A national bank examiner took charge of the El Paso institution.
Source
newspapers
6.November 4, 1931Other
Newspaper Excerpt
$843,900 Raised For Bank Opening — local subscriptions and reorganization plans being developed to reopen the bank; national bank examiner R. H. Collier had taken charge and fundraising event occurred Nov. 4, 1931.
Source
newspapers
7.February 10, 1932Other
Newspaper Excerpt
Abandon Reopen Bank Here; Liquidation To Continue — definite announcement of the abandonment of all plans to open the First National bank; liquidation to continue.
Source
newspapers
Newspaper Articles (22)
1.September 5, 1931The State JournalFrankfort, KY
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EL PASO BANK CLOSES DOORS
Institution Reported Sound; May Reopen
EL PASO, Tex., Sept 4 (By The closing of the First National Bank of El Paso today was followed by a heavy run on the First National Bank of Las Cruces, N. M., which also A national bank examiner took charge of the El Paso institution. President Frank M. Murchison blamed rumors and heavy withdrawals of deposits for the action. The June 30 statement of the bank showed deposits of $9,262,429 and resources and liabilities of $11,306,593. The bank was capitalized at $1,000,000.
(Continued on Page Five)
MAY REOPEN IN FEW DAYS
Las Cruces, Sept. L. Sibley, National Bank examiner from Dallas, Texas, arrived in Las Cruces this morning and assumed charge of the First National Bank of Las Cruces which closed its doors yesterday morning. A run was started on the Las Cruces National shortly after information reached Las Cruces that the First National Bank of El Paso had failed to open, and had been placed in the hands of national bank officials.
W. P. B. McSain, president of the Las Cruces National said the closing was voluntary in the interest of protection to depositors and that he expected the bank to be reopened withfew days. Mr. Sibley had no statemet to make at the bank today. He was just beginning his checkup of conditions. The Mesilla Valley State Bank of Las Cruces was open and doing business today. P. F. Campbell, vice president, speaking for Percy Barker, president of the Mesilla State said: "Everything is 0 K. here and running perfectly. Yesterday instead of closing at 3 p. m., we kept open until 5 m. and had posted a notice that we would remain open all night to accomodate depositors if they wished to withdraw their money from our institution. There was no run on the Mesilla Valley State Bank." State Deposit: Santa Fe, Sept. deposits in the First National Bank of Las Cruces total $38,674.19, and are secured by $45,000 Federal Land Bank bonds and highway debentures, State Treasurer Warren R. Graham said today. Mr. Graham was asked to stop payment on state warrants deposited at Las Cruces and El Paso just before the banks closed, but declined to do so on advice of the attorney general who said such action would unlawful,
3.September 5, 1931El Paso TimesEl Paso, TX
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Receiver Is Named For Institution
Bank Has $1,500,000 Cash, $1,600,000 Securities On Hand, Officials Say
By Bob Chapman Plans for the reopening of the First National bank may be nounced shortly according officials of yesterday. for the first time in its 30 years of existence, failed to open its doors
4.September 5, 1931El Paso TimesEl Paso, TX
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Times Milk Fund In Closed Bank To Be Made Good babies of El Paso, the of the Times Milk Fund, not suffer for lack by yesterday Hosing of the First National Approximately Milk Fund deposit bank, awaiting transfer clinic the Charities which supply the babies. lisher of The night he will make personally this amount which be lost by reason the closing. "Inasmuch this has been from the public, in sums ranging small to the 81423.31 turned from the baseball feel it that this fund the
5.September 5, 1931St. Joseph News-PressSt. Joseph, MO
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BANKS ARE CLOSED.
Run at Las Follows Closing at
EL PASO, Txas, Sept. The closing the First National Bank of Paso today was lowed by heavy the First National Bank of Cruces, N, which examiner took charge President Frank blamed rumors and heavy deposits for The June statement of the bank showed of and liabilities bank ized $1,000,000. McSain, the Las run started about after Paso received. condition and would reopen few days.
REHEARING FOR GAS FIRM. JEFFERSON CITY, Sept. state public Gas Company rehearing on its order requiring the company file of and for the gas in Mil. ton of the the rehearing for Sept. 16.
6.September 5, 1931The Salt Lake TribuneSalt Lake City, UT
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Pioneer Bank of Closes In Heavy Run
EL PASO, Texas, Sept. 4 (P)-The First National bank of El Paso failed to open its doors today. President Frank M. Murchison is. sued a statement which blamed heavy the closing. withdrawals of depositors for The June 30 statement of the bank showed deposits of 429 and sources and liabilities of 593, 000,000. The bank was capitalized at $1,It was one of the oldest banks in El Paso, having been founded about 50 years ago,
EL PASO, Texas, Sept. 4 (/P)-The N National bank of Las Cruces, closed today. run started on the Las Cruces bank about after news of the closing of the First National bank of El Paso reached town. He said the bank was in sound condition and would reopen in a few days. It closed its doors about p. m.
7.September 5, 1931El Paso Herald-PostEl Paso, TX
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Las Cruces Bank to Reopen When First Scare Passes
R. H. Collier, national bank examiner, said the closing of the First National Las N. M., at m., Friday, was a surprise to him.
'It is fundamentally sound and will re-open as soon as the first scare passes," he said. 'Business in Paso and the valley is good, especially the livestock industry The First National bank of Las Cruces. bank of the First National in El Paso, withstood a run all day Friday until 2 m. "When the hysteria subsides, we will re-open bank,' W. P. McSain, president, said. "The bank is sound and we can pay 100 cents on the dollar when we re-open. The run on our bank was started by the closing of the First National bank in El Paso and we decided to close to protect our depositors until the hysteria subsides. bank has deposits of $799.858.91 and of $898,973.47 according to its last financial statement. The Mesilla Valley bank at Las Cruces open m. Friday. There was no run.
8.September 5, 1931El Paso Herald-PostEl Paso, TX
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Banks Lend Money To Meet Payrolls
Business houses which did business with the closed First National bank were assured of meeting their payrolls Saturday when the State National and the El Paso National offered loans for that purpose. R. W. McAfee, vice president of the State National. said his bank is making loans wherever it feels they are justified for payroll purposes. Assignments cannot be taken on accounts in the First National bank until receivers' certificates are issued, he said.
APPROVE BANK OPENING PLAN
Expect to Use Capital To Aid First National
Paso business men will supply most of the capital in the reorFirst National bank, officers said today have definite plan of procedure said Pres. Frank M. Murchison. much couraged "We hope to make some definite early next "The present plan has been proved those but portant Atty M. Pollard, who with Murchison, said some announcement may be made
Man Hungers As Teeth Rest In Bank Vault
Paso, Tex., Sept. 12. (LP). -Closing of the First National Bank here was nothing short of personal catastrophe to Paul Boland, U. S. Customs Inspector. His false teeth are locked up in safety deposit vault at the bank. "It's tragic situation," Boland said today. "Twenty years ago my dentist made me some false teeth. At the same time, he made some extra ones so that ever broke those in my mouth they could be replaced by others of the same size and color. put the extra ones in safety deposit box for safekeeping. Boland's regular set of teeth broke after the bank closed. His pleas have failed to move the bank receiver to open up his box. Dentists can't repair the broken set with the proper color.
11.September 13, 1931The Buffalo TimesBuffalo, NY
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LOSES FALSE TEETH WHEN BANK CLOSES
United EL PASO, Texas, the First National Bank here short personal catastrophe Paul United States His extra set false teeth in safety deposit vault at the bank. Boland's set broke after the bank closed. His pleas have failed move the bank receiver to open up
12.September 16, 1931El Paso TimesEl Paso, TX
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Letters To The Times
DID BEST THEY COULD
To The Editor of The Times: Supplementing the commendatory letter of W. D. Hawes of Clint wish to say that for the last ten years have kept and compared the periodical published statements of the National bank of El Paso, and have the highest praise and admiration for the officials of the First National bank when it
Weathering the run on the bank several years ago, they at once began program of retrenchment, and conservatism. They divided the banking room and rented part of the building, called and reduced loans wherever they could, refused to pay further dividends to stockholders, although there was demand from some stockholders for dividends General conditions whisperings and gossip alone, feel. are responsible the unfortunate receivership
Edgar D. Brown,
THE TROUBLE AT JONESBORO Editor, El Paso Times The Times carries an Associated Press dispatch of the church row at Jonesboro, Ark., which happens my home town and am quite familiar with events leading up the latest outburst. Rev Joe Jeffers first invaded the peaceful little city of Jonesboro two years ago as Jeffers and Short evangelistic team, Short was They had not been in long until they had members First Baptist church fighting amongst themselves Jeffers claimed rival factions were disturbing his tent services and asked police protection which was given but he still claimed the police not doing their duty so he pointed Mr. Short as special peace Trouble started when Short at tempted to arrest the chief's son parked his car across the street from the tent and in the scuffle Short hit young Craig over the head. inflicting painful injury Short left the team and Rev Jeffers, apparently enjoying his campaign around Jones born while the beautiful first Baprist church had its membership divided that it was in bad However majority and the element of the members re mained loyal to the local pastor My sister, who came Jonesboro visit me said Jeffers had started another tent meeting and the church people were at
BANK REOPENING NEAR SOLUTION
President Expects Complete Details in Week
Pres. Frank Murchison today said that plans for reorganization of the First National bank probably will be announced within the next week. "The board of directors in conjunction with officials of the Federal Reserve bank, literally have been working day and night on the reorganization program,' Murchison said. "Although we have agreed in principal on certain fundamentals, "we have not concurred on any definite figures.
14.September 18, 1931The Coolidge ExaminerCoolidge, AZ
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FALSE TEETH IMPONDED WHEN BANK IS GLOSED Closing of the First National Bank at El Paso, Texas was nothing short of a personal catastrophe to Paul Boland, U. S. customs inspector. His false teeth are locked up in a safty deposit vault at the bank. "It's a tragic situation," Boland said. "Twenty years ago my dentist made me some false teeth. At the same time, he made some extra ones SO that if I ever broke those in my mouth they could be replaced by others of the same size and color. I put the extra ones in a safety deposit box for safe keeping." Boland's regular set of teeth broke after the bank closed. His pleas have failed to move the bank receiver to open up his box. Dentists can't repair the broken set with the proper color.- Ex
15.November 4, 1931El Paso TimesEl Paso, TX
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$843,900 Raised For Bank Opening
(Continued From Page 1.) buted substantial figure "T'II take $1000 if you will match me, Mr. Momsen said. James A. Dick, B. Poe. W. G. Walz each matched the $1000 "I'll take 8500 more. even if it hurts it does." Bishop A. J. Schuler said. E F. Flores took $200. All these were additional subscriptions, as each had previously subscribed for stock Lawrence Gardner was new subscriber He took $200 worth of shares for himself, the same for Mrs. Gardner and the same for his company. Empire Products. Subscribe $1000.
A. B. Poe, who presided, called on Del Richey for talk Mr. Richey walked forward with subscription for $1000. "That's my speech," he said
R. H. Collier. national bank examiner, who took charge of the bank at the request of Frank M. Murchison, president, had his hearers cheering and almost on their thought there would only be about dozen people here," Mr. Collier said "This large gathering is not only encouraging, but the most inspiring occasion have ever encountered. In all my 16 years' ex perience with the comptroller's office, have never witnessed the response to the efforts that are being made to open this bank have never seen such wonderful spirit as is being manifested here in El Paso in with the reopen ing of this institution. could take this group in this room and put anything bank, cotton or any other worthy enterprise. "You subscribers for stock will have the privilege of electing the directors. The main thing is to give EI Paso this bank, which has served this community long and so well have talked to men mentioned as those who may have something do with the management and these will run bank of which you will be very proud. H. Hunter, editor of The Times remarked that the gathering to him represented "the fine old time spirit of El Paso." "It occurs to me Mr. Hunter aid "if all of US had given to the bank when it was open the fine support We are now according it. it never would have closed. Let's all go out of here resolved to open this bank It seems that sometimes we need kick in the pants to impress our minds." "I do not think that anyone. who will pause to think, can fail to appreciate what the First National bank has done for El Paso during its more than 50 years of existence," Bishop Schuler said. New subscribers added to the list yesterday were: Alemite Co. of EI Paso, Charles Auer, Ian Benton. W. Berkshire, Channing M. Brown, W. 8. Brownfield, Arthur Dueas, D. Foster. Mrs. J. E. Gemoets. Beuna Gilder. M. M. and H. Griffith. Leonard Hanson, Jay Harman, C. O. Horner, Charles R. Loomis, Flora Malone, H. A. Markham, Peter Marsel, B. Meyers, Joe, Mogel, David E. Mulcaby, Mac Murchison. Old Town Pump, Dr. Jacob Rogde, Charles Schuck. W. D. Shea, W R. Shutes. C. Stapleton, Paul D. Thomas, W W. Thornton, James Vance. Jas. Watts Co., Louise H. Wilmarth, Win R. Walker,
16.November 9, 1931El Paso Herald-PostEl Paso, TX
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WANTS CLAIMS FILED EARLY
Bank Receiver Warns About Unnecessary Delay
S. O. Pottorff receiver of the First National bank. today urged depositors and other creditors to prove their claims without delay He also urged debtors of the bank to give their notes "prompt attention so that first dividend to creditors may be paid as quickly as possible Depositors have three-months period in which to file claims. Pottorff's statement National forts reminded the fact that the bank at present still Liquidation of the assets of the bank will best the bank short hoped the deter debtors the bank from meeting their obliga to handling same the will pect the that affairs the or injury of through open the successful would course greatly the terest and the bank debtors help make this taking obligations claims tors necessary does order that liability may "The next week will tell whether can raise the needed to reopen the First National bank, B. Poe said today Only few subscriptions were added today the to reported raised last night
GETS NEW PASTORATE MIDLAND Rev. Thomas Murphy, former pastor of the Pres- D byterian church Midland, has been called as pastor of the Troup church
17.February 10, 1932El Paso TimesEl Paso, TX
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Abandon Reopen Bank Here; Liquidation To Continue
Popular Dry Goods Co. Offers Plan To Release Part Of Money In Bank
Firm Will Accept Receiver's Certificates As Security For Loans And Credit.
Following upon the abandonment plans reopen the First National made last night by Maurice Schwartz, vice president of the Popular Dry Goods company, special offered to First National depositors make substantial portion their deposits immediately available plan said Mr. Schwartz. will advance 30 cent of the deposit, which third will cash and the mainder placed to the deposicredit be applied ment past and future purchases. depositor may assign to all any his temporary receipt from the receiver of the bank. due time the receiver will issue his permanent certifitherefor, which will fer to the depositor when the made by us has been paid receiver's dividends by the positor.
Charge Six Per Cent. will make an interest per cent per annum which will apply only on the cash advanced. and until the entire advance been finally paid. There will be interest charge that part the account applied to merchandise purchases." By way of Schwartz cited the following ample: Suppose the depositor has ceipt for $1000. Upon his executing assignment of the receipt to the Popular Dry Goods the pany will advance to him $300. which $100 will be In cash and in credit for past future chases of merchandise. The per cent per annum interest charge apply only to the $100 obtained cash, only until that sum finally returned to the company.
To Return Certificate.
Meanwhile, the company will ceive dividends paid by the bank the account. hen the dividends cover the amount advanced in both cash and merchandise, (Continued on Page Col.
18.February 10, 1932El Paso TimesEl Paso, TX
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All Efforts Of Committee To Resume Operations Prove Futile.
Failure Of Depositors To Sign Agreement Causes Decision.
Definite anouncement the abandonment of all plans open the First National bank which had been in existence than 50 years when closed Sept. was made yesterday following the the committee which had been working for five months to complish this result.
Money paid covering various subscribers. represented shares stock the bank to returned them immediately. that the reorganization plans been given up, suggest co-operation the people of the community the receiver to the end that the most possible may realized for the depositor," Frank Murchison, president of the closed institution who slated the president of the reopened bank. receiver's interest that the committee have identical: that the depositors most from the assets that possible to produce
Every Means Exhausted. committee has worked diligently in the endeavor the program The bers did not want to abandon the that an arrangement could worked out until every means had exhausted. They now feel that they have exhausted every means their disposal. That being the the reorganization work being given the final session held by the committee the fact veloped that the original call for $1,000,000 required new capital was actually oversubscribed by The original plan was given the necessary number positors with accounts of 8500 ward, did not sign the agreement which set aside 30 per cent to take of non-liquid assets in the old bank.
$300,000 was contemplated that the cent be aside by the larger depositors take out bad. doubtful and slow assets, would realize approximately Murchison said. "Signed creditors' agreements by the commitproduced only approximately $1,200,000, leaving approximately $300,000 short required amount. There was considerable (Continued on Page 2, Col.
19.April 2, 1932Nogales InternationalNogales, AZ
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LEGAL NOTICE Tucson Porridge Pot Store Company, A. E. Sanders, Manager, by S. O. Pottorff, Receiver of the First National Bank of El Paso, Texas, by reason of its seller's rights in a certain Contract of Conditional Sale executed by the Gullekson Motor Company, as seller, and Tucson Porridge Pot Store Company as buyer, on the 25th day of May, 1931, and filed on record in the office of the County Recorder of Santa Cruz County, Arizona, on the 9th day of June, 1931. S. O. POTTORFF, Receiver of the First National Bank of El Paso, Texas. By W. J. Donald, Agent. (Pub. 4-2 it)
20.May 3, 1932El Paso TimesEl Paso, TX
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Sues Bank Receiver Over Minor's Account
Suit was filed yesterday in the 11st district court by Mrs. Edith Pfeffer against S. 0 Pottorff, re ceiver of the First National bank. asking for the appointment of the First National bank of Houston as trustee for the estate of Kay M. Nolan, minor Mrs. Pfeffer says the father of the minor, Kay R Nolan, left $6563. the remaining balance of his war risk insurance in the First National bank of El Paso to be held in trust for the child Pottorff's attached statement shows $6800 to be the total invested in notes and bonds He also sets out 878.06 in the ings department and $110.50 cash in the receiver's account
21.December 8, 1932El Paso TimesEl Paso, TX
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100 El Paso Lots Are Sold For $500 Attorneys for S. 0. Pottorff, First National bank receiver, bought 100 Kern place, Highland park and Alexander addition lots belonging to M. Murchison, former president of the First National bank, for 8500 at a sheriff's sale. The property was sold to satisfy $421,227.99 judgment granted Pottorff in 41st district court against Murchison for stock assessments and personal loans.
22.January 11, 1933El Paso TimesEl Paso, TX
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Croom Retains District Job
Road Commissioners Will Continue His Fee At $100 A Month.
C. W. Croom, El Paso attorney yesterday was reappointed legal advisor to the EI Paso-Hudspeth county road district at a 8100 month retainer. He has held the same position at the same fee since 1927. Road district commissioners voted to advance Croom $1000 on his alllicipated percentage deriving from successful culmination of the county's suit against the defunct First National bank for $160,000 in county funds tied up in the bank. The suit is now pending before the U. S. supreme court on the bank receiver's appeal. Commissioners agreed to suspend regular monthly meetings and place themselves on mileage basis rather than flat expense account. Meetings will be held on call of County Judges Joseph McGill or E. C. Booth. Road district funds will be deposited in the El Paso National bank in special fund. Formerly the fund was handled by the El Paso county treasurer.
