18590. Deseret Savings Bank (Salt Lake City, UT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
February 13, 1932
Location
Salt Lake City, Utah (40.761, -111.891)

Metadata

Model
gpt-5-mini
Short Digest
632176623ffe6907

Response Measures

None

Description

Articles report that Utah State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings Bank on February 13, 1932 (suspension by state authority) and the bank remained closed thereafter, with receivership actions, depositor suits, and eventual partial distributions through other banks (First National). OCR errors in some articles (e.g., 'Descret' -> 'Deseret') were corrected. Cause of suspension is bank-specific adverse information (insolvency, alleged imprudent investments/fraud/negligence).

Events (3)
1. February 13, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State bank commissioner took charge due to alleged insolvency, imprudent investments and fraudulent representations; complaints allege negligence and insolvency induced by officers/directors.
Newspaper Excerpt
At the time State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings bank, February 13,
Source
newspapers
2. February 14, 1932 Receivership
Newspaper Excerpt
Simultaneous with the Savings bank suspension, the Deseret National bank, separate institution, taken over by and the Security National bank. ... The Security National bank ... absorbed the Deseret National bank on February 14. (Deseret Savings bank had been taken over by the State Bank Commissioner.)
Source
newspapers
3. September 8, 1934 Other
Newspaper Excerpt
One-fourth of the Deseret Savings bank accounts ... First National bank are available ... Under the settlement the Deseret Savings bank ... deposits were transferred to the First National bank payment 50 per cent ... balance made for 30 per cent December 17, 1933, and 70 per cent on December 17, 1934. Judge ... granted petition ... permission to pay ... dividend to depositors the closed Deseret Savings bank.
Source
newspapers

Newspaper Articles (7)
1. June 22, 1931 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, June 22, 1931

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Article Text

Burglars Loot S. L. Businesses Burglary of two downtown business was reported to police Sunday for After lock on the front of the Jones trunk factory 245 South State street, took four purses and two suitthe Burglars the room of Mrs M. in the 57 West South Temple street, means an office door and escaped with woman's wrist watch and ring, according to reports to police. NOTICE OF PUBLIC The Board of Salt City has file for will public o'clock June 1931. the final budget for order Education GEORGE Clerk. NOTICE OF. SALE OF REAL James Devine, for ExecuJune Building, Utah, for the property known South East. thereon. Cash. LOUISE Estate ANNA BICHSEL IN THE DISTRICT COURT OF and Utah. Company, Music corporation, Notice Consolidated Music the of and corporation you please take entered the 6th day of the in the Savings Receiver Deseret and of against by the by said said barred should the statement the nature any lien claimed the DESERET BANK THE Dated Salt Lake City,

2. February 18, 1932 The Times San Mateo, CA
Article from The Times, February 18, 1932

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Article Text

Salt Lake Banks Unite, Scare Over LAKE CITY, Utah, Feb. banking situation in Salt Lake City today gradually turned to normal after conditions caused of the Deseret Savings bank. Simultaneous with the Savings bank suspension, the Deseret National bank, separate institution, taken over by and the Security National bank. The capital structure the SecurNational bank the consolidation is $750,000, surplus $250,000, and undivided profits and reserves $250,000. new potato masher has been that clamped to the edge kitchen table.

3. March 7, 1932 Salt Lake Telegram Salt Lake City, UT
Article from Salt Lake Telegram, March 7, 1932

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Article Text

FRAUD ALLEGED BY IN BANK SUIT (Continued From Page Nine) who may desire to join and have the benefits of the action." At the time State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings bank, February 13, It was and had been alleges. For many years the bank, with the Descret National bank, says the complaint, had engaged in the joint venture of conducting a general banking business In Salt Lake City. In this connection the two banks occupied and owned in common the same real estate, banking building and bankheld out to the public that they were effect one and the same institution, the complaint avers. ADVERTISED SOLVENCY In addition, it is pleaded, the banks by pamphlets, by prominently printed signs upon the banking house and Its windows asserted and held out to the public in the intermountain west that the Deseret Savings bank was solvent and had assets very largely in excess of its liabilities. Continuing. the complaint says: "That by reason of said false and fraudulent representations so made, and reliance thereon, the plaintiffs and other depositors have been damaged in the amount of approximately 35 per cent of the amount the sev(cral deposits. The exact amount of such damage cannot at this time stated. but an accounting will be required determine the precise amount thereof. That the defendants as directors and officers of the said banks have caused the insolv of said Deseret Savings bank by reason of their negligence and breach of duty as such officers and directors with respect to their knowledge. and handling of the affairs of said savings bank. INVESTMENTS QUESTIONED "Said negligence consisted in part of making from time to time, the retention thereof, imprudent, unreasonable and unbusinerslike investments, among others, in varlous common stocks, bonds and other securities of corporations managed and officered in large part by some or of said individual defendants, reads the The Security National bank, which moved into the quarters formerly occupied by the Descret Savings and Descret National banks, is made defendant because it absorbed the Deseret National bank on February 14. The complaint states that some of the plaintiffs made demand on the Descret National bank and the Sccurity National for the amounts of their deposits and have been refused by the banks. A general marshalling of assets and liabilities and an equitable distribution of the proceeds among the parties entitled thereto are asked. Edwin D. Hatch, L Bradford, G. M. Sullivan and A. Walton appear as attorneys for the depositors.

4. March 8, 1932 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, March 8, 1932

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Article Text

BANK GROUPS HOLD PARLEY ON EXAMINER Hadlock Gives Ten Suggestions for Remedial Legislation Qualifications of men under sideration for possible appointment examiner of the closed Deseret Savings bank discussed Monday afternoon by Governor George Dern, Walter H. Hadlock, Utah state bank commissioner, who will make the appointment, and Judge Joshua Greenwood, chairman of commitof Names more be approved the sented by Judge Greenwood, dition names mitted the commissioner and the Ten for remedial legislation in connection with the banking system made Monday in the statement by ComHadlock: result of bank failures, banking system people. Obviously be taken in the future and to further safeguard deposmoney. anticipation of such legislation offered Permit organizing bank only where all jusProvide way for immediately collecting assessment case impaired capital. (If 100 per cent have been immediately availbank Require deposit the classes and amount securities which commercial savings trust company invest funds. detailed classification bank's assets its published (Depositors to know how their money invested.) Require each director to knowledge receipt the copy report and familiarize contents. powbanks justifies, provide that all records and securities the department and apart from the affairs of the Place some restrictions on the bank borrow rediscount from acceptfor deposit public funds unless secured. Require the verification of year. Prohibit more incorporated for division ing failed banks division. Make the state banking assessment against instituunder Grant bank such powers are necessary for him take mediate action remedy an unsatisfactory condition law violation Justify the confidence the public banks surrounding money with ample safety.

5. March 29, 1932 Salt Lake Telegram Salt Lake City, UT
Article from Salt Lake Telegram, March 29, 1932

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Article Text

COURT GRANTS FOR BANK'S ANSWER Date Postponed to May for Time to Plead or File Reply A defense motion asking an extension of time to answer or plead to suit filed by depositors in the defunct Descret Savings bank, against that bank, the Descret National bank, the Security National bank and the of ficers and directors of those tions was granted Tuesday by Judge William H. Bramel. The time limit set in the original complaint was April but Judge Bramel granted the motion to tend the time to May The action taken after formal motion heard from attorneys representing some the defendants. suit filed March by Lynn Cummings and others seeking turn of their deposits the grounds that the officers and directors of the closed bank by advertising and otherwise senting connection with the Desbank. Judge Bramel made general depositors of the closed bank that the examiner charge of the affairs maintains of Salt building and that all made of him rather than of the

6. February 13, 1933 Deseret News Salt Lake City, UT
Article from Deseret News, February 13, 1933

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Article Text

$218,153 Sought in Action Against 72 Judgments against 72 individual totaling are asked in suit filed the district court by John Malia, bank commissioner. The is based on liability of stockholders the Deseret Savings bank. The bank had capital stock of 5,000 shares $100 per and has been for per cent stockholders liability. suit points YOU'VE HEARD Depositors of the bank will ceive the stockhold ABOUT IT! ers minus the expense of collection. addition to pay. ment 35 bank credits that may withdrawn half one year and half in another per More than half the stockholders liability has been paid.

7. September 8, 1934 Salt Lake Telegram Salt Lake City, UT
Article from Salt Lake Telegram, September 8, 1934

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BANK SETS UP DATE OF LAST WITHDRAWAL Choir Ready to For Performance at in Chicago Exposition Funds Available for Deseret Special Concert Presented in Tabernacle Savings Depositors AfWith Large Audience Attending; ter Monday Train Departs Saturday Night One-fourth of the Deseret Savings bank accounts First National bank are available for time after Monday at the option the holders, according an Saturday the First National bank. The decision will lease $1,000,000 withdrawal privileges are exercised depositors. Under the settlement the Descret Savings bank, 70 per cent the DesSavings bank deposits were transferred the National bank payment 50 per cent of the per cent effective at the time reorganization. The balance made for cent December 17, 1933, and per cent on December 17, 1934. Added Distribution Advance of date on per cent was effecby the First National bank accommodate holders of Descret Savaccounts to added of lunds fall needs. Judge Roger McDonough of Third district court Saturday grantpetition by the state banking department permission to pay per cent dividend to depositors the closed Deseret Savings bank. date for payment was named petition. The petition, filed Mastate bank commisisoner and ceiver for the bank, said there sufficient assets on hand to pay all creditors and depositors who have been paid dividend of 6914 per cent additional 1% cent, bringing the total to per cent. Sufficient Assets There are also sufficient assets to pay persons who have not presented claims total their total claims, the petition stated. Depositors and creditors who signed claims to the Investors' Finance Corporation Idaho will ceive as their share the 134 per cent payment, and those who did not claims, much number, will receive $3532.11 their share. There available for 28 small creditors and depositors who did present sum share of the total dividend cent. Money on Hand The petition said there hand reserved to cover unclaimed deposits. The petition explained that though court order June the last date which claims should be filed, there who had been advised of the order and not presented their claims. These will under terms the tition, to the amount for all other tors and depositors. The famous L. S. choir, comprising 260 members, will Icave Salt Lake City in special train Saturday at 8:30 m. for Chicago to present two daily concerts at A Century of Progress September 10 to 16, inclusive. Salt Lakers were given an opportunity to hear the huge music aggregation In special concert featuring the numbers sing the exposition, Friday night the More than heard program ular melodies, ballads and operatte numbers at Luck" concert. With Anthony Lund wielding the choir dressed the coslumes they will wear at A Century of Progress, members made everlasting Impression on the their excellent program interspersed with solos, duets, the choir's Chaminade chorus, plano selection by Miss Becky Almond, and organ solo by Frank Asper, fabernacle organist. Leaders to Accompany Heber president of the church; Reuben Clark counselor, and David Smith of the presiding bishopric, and president the choir, their will accompany the singers. Grant expects to speak in the concert garden. In the official party will be Professor Lund, who will direct choir; Albert W. Southwick, assistant director: Miss Almond, piano accompanist; Mr. Asper, organist and George D. Pyper, who the tour. Hundreds of friends relatives will be at the Union Pacifle station to see the special depart. More than 300 persons, including the choir. family members and close relatives make The special scheduled to rive in Chicago Monday at 10 visitors be taken and noon will sing Plaza Square guests of the Chicago Daily Wednesday will be Utah the exposition the take the program. Following the evening concert September will start back home, stopping over at St. Louis Independence, Mo., where the members will concert the Reorganized Church Saints and guests banquet the church tabernacle. They will Lake mornof September from Denver, where they spend The concert Friday night also was for the purpose of raising funds to help defray expenses the Chicago feature of the program soprano solo given by Myrtle Checketts, sang the jewel song from Gounod's and for encore sang "Estrallita," in Spanish. Hearly Applause A duet by Helen Westlund Grace Anderson won hearly applause. number Mexican Golondrina," and other was "Rose of the Canyon," composed by Herbert Auerbach of Salt Lake City. by the John Wood sang "Sunset by Cadman, and Miss Rilla Peterson sang Love Dwelt Northern Elgar. choir opened the program with Lark, My and the Waters of Minne-