1f6c1e36Partial suspension, Books examined
Other: State banking commissioner took charge; liquidation and receivership followed in subsequent months.
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LEGAL NOTICE NOTICE TO CREDITORS In the District Court of Joseph Wright, Vanacorporation, defendant. Notice hereby given that all against Vanadium Metal before the 26th having said claims the with the Ogden State building which shall itemized by and shall and lien entitled, any other creditors of said fendant. OGDEN STATE BANK. Receiver By Officer. JOHN HENDRICKS, Attorney for Receiver, Ogden, Utah
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RUN CAUSES OGDEN BANK TO CLOSE Ogden State Bank Fails Open Doors United OGDEN, Utah, Aug. Ogden State bank, institution an organized in 1891 and with resources of failed to open its doors today. Hadlock. state banking said the bank's rectors closed the bank because run which had developed to alarming proportions.
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Run Close Utah Bank To Close The Ogden State Bank, an institution organized in 1891 and with resources of $7,000,000, failed to open its doors today. W. H. Hadlock, State Banking Superintendent, said the bank's di rectors closed the bank because of a run which had developed to alarming proportions.
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BIGELOW BANK REORGANIZE OGDEN, Aug. protect all of its depositors and to arrange for reorganization on sound basis, the directors of the Ogden State bank today, decided to suspend business of the institution during the next 30 days. The decision came voluntarily after the directors had decided It the only honorable course for them to pursue. The notion came after gradual of two or three days had reached dangerous point Rumors say the run on the bank was started maliciously The Ogden State bank was organized in 1891 Bigelow is president It was capitalized at $100,000 Its and its surplus $300.000.
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OGDEN REGAINS ITS CONFIDENCE (Continued from Page One) counts to take care of their receipts and the bank the city agreed that they had a real of work. ECOLES' STATEMENT Marriner S. Eccles, president First National and the First Savings bank, on the situation today as follows: "We wish to express appreciation for the fine spirit of loyalty and helpfulness manifest toward this stitution throughout yesterday following of the State bank's suspension. Both the Security bank and our own late in the to take care of the demands of all Yesterday being the end the month, several large payrolls and other monthly to increase activity in the lobby. 'Many accounts were and the First National bank at the the showed an increase deposits. The combined deposits of the First National and First banks last night were with cash resources of On the same date year ago the deposits were and resources $3,574,075.46. A of accounts withdrawn have returned to the bank today. must be remembered that during the period of suspension of the State bank two banks will Ogden have to take care of the business formerly handled three. Many the customers of the Ogden State bank will need some sistance during the period of reorganization. With necessarily there will be much increased activity in the lobbies of the Commercial Security bank and our own institution.' HEMINGWAY STATEMENT The facilities of the Commercial Security bank are open to the deof the Ogden State bank, H. president, said toE. Hemingway, day. bank will willing and glad extend facilities customers of the Ogden State bank needing temporary accommodations," he said. "On the second day of operation this bank experienced gain of deposits. While the withdrawals Monnumerous the total were amounts and at the close of the day the cash were not greatly changed from what they had been in the morning. An attachment for motion picture projectors has been invented to clean grease, oil spots dirt from films as they are being hibited.
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BIGELOW BANK CLOSES DOORS State Bank Commissioner Takes Over Affairs of Ogden Institution OGDEN-The Ogden State bank organized in 1889 H. C. Bigelow and A. P. Bigelow, fathery and son failed to open its doors Monday morning and its affairs were taken over by W. H. Hadlock, Utah state bank commissioner. In a formal statement officials of the bank announced that the closing was to take advantage of the 30-day moratorium allowed by state During that period it is hoped that satisfactory adjustments may be worked out for the reopening of the institution. A. P. Bigelow, president of the bank, stated that the institution is in an unusual financial condition, having approximately 7,000,000 in assets, which, he says, will be sufficient to meet all obligations. His door of the bank follows: "For some time past rumors have been circulated throughout this city and the Ogden district reflecting ber upon the financial condition of the Ogden State bank. At first we the subside, but during the latter part of last week withdrawals from the bank became more threatening. "It has been decided by the board of directors request the bank missioner to take charge of the fairs of the bank, in the best interest of the and to give little time to collect substantial amount of the assets. Under the banking law there is thirty period of grace granted bank in collect some of its assets and adjust its affairs. We the bank and reopen at the earliest The news that the Ogden State bank had closed its doors temporarily caused some uneasiness among timid depositors of other Ogden banks and number of withdrawals were made, but in aggregate the total amount not large. Despite the timidity shown by these depositors, a check-up at the end of the day showed that deposits by business men of the city were about up to This fact, coupled with the assurance that there was plenty of cash on hand to meet of depositors was responsible for an almost complete restoration of confidence. The other banks of the city early in the day posted notices in conspicuous places that they would remain open two hours later than usual in order to meet demands, and remained open until all de- tion.
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Chamber Names Fete Chairman OGDEN-Ogden chamber of comdirectors Monday appointed E. mittee to prepare a program for Ogden day at the Brigham Peach day celebration, Saturday, Septem Mr. Alton will name members of committee to aid him in prepar- CHOSEN FOR COURSE OGDEN- Wesley B. King son of Mrs. 2635 aveenlisted in the navy nue on June has been to take the course of instruction at the aviation general utility school at Great according to word received in Ogden. WAIVES HEARING OGDEN- E. Parish, charged with issuing fictitious check for inary hearing in the city court Monday and is held for trial under $600 cash bail or $1000 property bond. mands were met At these tions check presented was paid in full without question. Mr. Hadlock gave the following figures on the condition of the Ogden State bank: Capital stock $100.profits, $50,000, and deposits, $6,334,Regarding his taking over the bank, Mr. Hadlock made the following statement: By order the board of directors, the affairs of the Ogden State bank in the hands the state banking department. During the 30 days' suspension as allowed by statute every effort will be made the view of reopening the institu-
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Ogden State Bank Closes Its Doors OGDEN, Aug. 31. Ogden State bank. an institution ganized years ago, closed doors early this morning by order Affairs bank today were in the hands of the state banking State Bank Commissioner Hadlock has given Ogden State bank 30-day period in which and reopen institution sound basis. Hadlock said closure caused by gradual run of two or three which reached such that directors decided to untarily close the bank and call in banking department. "The run developed such the only honorable course for the to was close up pursue the
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Depositors Begin Claims Filing On Ogden Bank sand persons have claims against the Ogden State bank, gan filing their claims with the state bank examiner Thursday, required to positors aminer charge. be filed than Nov. 24, Notices posted on the bank's doors windows Aug. forming the public that had and taken in charge by the state bank notices calling persons against the bank to file Some time after had issued his statement the press ednesday, relative to the filing,of the invenBory the Second court. Jones made following is the desire of the banking that receive dividend the earliest possible time, the If ficient can be accomplished distribute dividend by Dec. 20.
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Settlement Asked For Bank Owners Receiver Urges Court To Accept Proffered Cash. OGDEN, Feb. 1.-A petition was filed in the Second district court Wednesday afternoon by W. H. bank and R. examiner in the Ogden State asking the court to approve cash and other property from direcofficers of the bank their full liability in the affairs the bank. offer consists of some $295,000 which $190,000 is in cash and the notes, stock and pledges. Mr. Hadlock said that if the petition granted and the directors and officers made an mediate payment of ten cent to the depositors will made. The also said that although not contained In the petition that since they assumed control of the affairs bank effective Aug. 31, 1931. bank has profited slightly ter than $86,000 over and above all Investments Attached. In asking for the settlement place of bringing suit against the directors, the bank says in the petition that funds the bank during the time it has been conducting general had been improperly vested. loans been made upon insufficient securities. that many the assets were of such that would be impossible even their accepted value for and probably and that the condition of the curities by said bank vesting its funds and in loaning indivduals and corporatons much greater than the legal limits and frequently much greatamount than the Justified could be justified sured and determined by the acts of dinary. careful. prudent men and that many of said investment were made contrary to tandards of safeusually ordinarily required by good banking methods and trary to the laws of the State of Utah. "That by reason of the condition the securities and Investment the money of the said bank the of the bank that opinion the directors of the said bank are answ able to extent least for the losses by the bank and The bank commissioner of securing as much money possible from the directors depositors, in that some $30,000 the money is being pledged people and who are directly liable under the of eyes These amounts set by the petition by and John B. short the M. and M. comBrowning pany. The petition sets forth that been pledged the and cluding notes, bank some Becker, and Stevens and 000 Van Olson payment $12,000 000 in of John K. $6000 amount to director, managed the of cover the balance realized said mortgage general funds of the bank for creditors the N. of deposit in the thrift fund $500 cash; H. M. Rowe $1,000 cash. The petition states that the and S. ble only but that are offer cash payment 400 and an assignment on In the reports bank in not undertake that amount subscribed and the various stockholders and tors equals the amount recovered in legal proceedings to determine the liability of the direcyour petitioner does state that It all the mone that various and directors are able to that the judgment of your tioner would be to the interest the of the bank and concerned upon hearing had such notice as be directed by an order this decree may be entered your petitioner accept the out herein and to release the parties the same from any further civil Ity by reason of being and directors of said bank, conditioned upon each and all of said rectors paying above set forth.
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Depositors File Suit Against Bank OGDEN-The David Eccles com pany, Celia E. Cheesman, Walker S. Cheesman and J. G. Titley filed suit against the bank commissioner, the examiner of the Ogden State bank and the bank itself, in the Second district court Saturday, asking that $1932.61 part of an alleged special fund deposited in the bank, be decreed special deposit and be paid immediately to the plaintiffs. The complaint alleges that $3000 was deposited in the bank as special fund to be paid out in accordance with an the various plaintiffs and that the amount now sued for was in the bank when it closed alleged in conclusion that the bank and examiner have refused to recognize the amount as special fund and are retaining the money as part of the bank's as-
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UTAH STATE EWS RANCH WORKER SUITS PILE UP SLAYS FOE AND AGAINST BANK ENDS OWN LIFE OGDEN-Directors of the defunct Ogden State bank were made defen- MOAB-Mit Kelley, 51, ranch hand at the Pace Brothers ranch in Castle valley, 15 miles northeast of Moab, was slain Monday night by Allen gust, Qualls, 41, another ranch hand, who is said to have killed himself early Tuesday morning. A quarrel between the two men, details of which are unknown, is belieyed to have been responsible for the alleged murder and suicide. Qualls walked into the ranch house Monday night, told his fellow work ers that shot Kelley five times with 30- rifle requested that Sheriff B. Skewes be notified of the homicide, and then calmly went bed. Qualls' body was found Tuesday morning in the bunkhouse when other employes of the ranch sought to awaken him for breakfast. The top a bullet, fired, officers said, from the same weapon which had been used to kill M. Kelley's body was found in the fields north of the ranch where the quarrel is believed by Sheriff Skewes to have taken place Ranch employes reported bad blood had existed between the two men for Qualls gave no details of the affair when he admitted the Ranch hands reported they heard no sound of shot Monday night, but Sheriff Skewes expressed the opinion the rifle was muffled with bed clothing when Qualls assertedly fired the shot which ended his life. Qualls, native of Kentucky, had been employed at the Pace Brothers' ranch for eight years. Kelley, native of Texas, came to Grand county last spring as prospector and later obtained employ ment at the ranch. He is survived by daughter, Mrs. Ethel Dwyer of 3301 South Clarkson avenue, Englewood, Colo. Sheriff Skewes, whose arrival at the ranch was delayed because washouts on the road, is holding the bodies at the ranch pending word from relatives. dants in an $85,273.1 suit filed Tuesday in Second district court by T. E. Thomas, who seeks judgment in this amount, together with interest since the bank suspended business in Au 1931 The complaint sets forth that the directors, knowing the Ogden State bank to be in an insolvent condition, continued to transact business and permitted false and misleading financial reports the of the bank to be The plaintiff further sets forth that the directors personally him of the sound condition of the bank dur ing the month of June, 1931 thereby him to make large deposits in the institution Defendants in the action include A. P. Bigelow, G. Becker John N Spargo, Edward Olson, A. Parm ley, H. M. Rowe, J. E. Stone, D. E. Davis, John K. Spiers, Jessie Tower, R. W. Stevens and John Doe administrator in the estate of John G. Barnes Three additional suits were filed Tuesday depositors of the bank against W. H. Hadlock, state bank commissioner; R. S. Jones, examiner in charge of liquidating the bank and the Ogden State bank, corpora tion Lena Wells brought suit on 15 causes of action to recover $1579.80 which amount she sets forth was placed in the bank in several deposits during the time the institution was known be Elizabeth Nebe ker, suing on six causes of action prays that she be given judgment against the in the amount of $1017 plus interest. Mary G. Carnahan seeks judgment agains the aforemen tioned defendants in the amount of $800, which she alleges was left in trust at the Ogden State bank to be used in the purchase of four shares of Ogden State bank stock She sets forth in the complaint that the money was not to mingled with or funds of that institution, but was to be retained trust for her use and benefit, until such time as the desired shares of stock were available for purchase. The complaint states that the plain tiff has presented written proof to the bank commissioner and examiner In charge of the Ogden State bank that the $800 is rightfully hers, and should be considered as preferred claim. Judgment is asked in the full
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DEFENDANTS IN Charge Directors With Taking Deposits When Bank Was Insolvent; Thomas Seeks To Recover $85,273.16; Whitmeyers Ask Total of $84,564.98 A number of suits were filed Second district court early this week depositors the closed Ogden State bank, who seek recover the amount of their posits from the directors of the funct institution. The largest individual suit was that filed Tuesday Thomas, who seeks judgment in the amount of together interest since the bank suspended business August, 1931. Mr. Thomas sets forth in his complaint that the directors, knowing the Ogden State bank to be in insolvent condition, continued transact business permitted false misleading financial ports concerning solvency the bank published. plaintiff further sets forth that the directors personally assured him of condition the bank durthe month of June, 1931, therecausing him make large posits in the institution. in the action include Bigelow, Becker, John Spargo, Edward Olson, Parmley, H. Rowe, Stone, John Spiers, Jessie Florence Van Meter, Albert Becker, Tower, Stevens and John Doe, administrain the estate of John Barnes. Other suits filed Tuesday against W. Hadlock, state bank commisioner; Jones, examiner in charge of liquidating the bank, and the Ogden State bank, corporainclude that of Lena Wells tion; recover $1,579.80; Elizabeth Nebeker, suing to recover plus interest; and Mary Carnathe aforementioned defendants the amount of $800, which amount she says was left at the bank for purpose purchasing shares of stock of the institution when was available, and which to mingled with assets funds of the bank. Suits filed Monday afternoon by the construction interand by the Whitmeyer family totalled Plaintiffs in these cases and the amounts sought are: Mr. and Mrs. Raymond Whitmeyer, $3,424.98; George Whitmeyer, Mr. and Mrs. Whitmeyer, George Whitmeyer Sons Mr. company, and Mrs. Albert Whitmeyer, 290.04. In each instance the amount sought less cent divident paid since the bank closed, although interest on the judgment also asked. Defendants in these cases are Bigelow, Becker, John Spargo, Edward Olson, Parmley, Rowe, Stone, Davis, John Spiers, Albert Becker and John Doe, of the estate of John Barnes, deceased, when the bank closed, and E. M. Tower and Stevens, directors from 1928 January 13, 1931. the who were directors when bank closed had served that capacity for several least with the exception Mr. Barnes and Albert Becker, who took office on January 13, 1931. filed for the Whitmeyers by Attorney Arthur Woolley allege that the insolvent and known be so by the directors at the time the deposits made; that directors caused published annual statements showing the bank solvent, its capital and showing surplus when was and that these were fraudulent; that defendants divers 1931 to the plaintiffs that the bank solvent, said representations being fraudulently made. Dr. Robinson, in suing the bank, the banking department liquidators, and the individual directors the time the bank closed, seeks to have $2,800 deposit of August 1931, declared preferred claim payable at that he be given judgment the amount against the several rectors. He alleges that the legal loan limit the bank, been that at the time made his deposits the capital, plus and undivided profits of the were completely wiped loan other losses the sum $650,and that this condition had isted least 30 the days prior to bank's closing; that the legal the capital had been impaired payment of illegal excess, unsafe and that the directors, knowing
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Malia Names Counsel In Bank Liquidation BAR MEMBERS ELECT HEADS LeRoy Young Named President; Chez Given Vote of Thanks association Saturday noon in the Ben Lomond, with President Joseph Che presiding Other officers chosen were: District Judge Eugene E. Pratt, first vice president; District Attorney Wade M. Johnson, second vice president; James L Platt, secretary, and W. L. Skanchy, During the business meeting, which followed luncheon, reports of committees were read and four new members received into the association, Henry Seegers, Neil Olmstead, James L. Platt and W. L. Skanchy. Valentine Gideon, former state supreme court justice, presented the association two large pictures of President Chez, in behalf of the as- OGDEN-J. A. Malia, state bank Office Phone, 117; Home Phone, 3892 commissioner, filed petition Satur day in the Second district court, an SC ation, will be placed in the court |nouncing that he had employed W room of Judge Pratt. H. Reeder Jr. and Arthur Woolley as A vote of thanks was tendered to|counsel for him and his agents in the retiring president, Mr. Chez, for the of the Ogden State his services during the past two years, bank, and asked for approval of the and the confidence and good will the bar was voted to follow him in Mr. Malia set out that the attorneys his new position as attorney general are to receive $400 each per month of the state. and 5 per cent additional for all re coveries made over and above the WHITLOCK FUNERAL SET sum of $200,000 from creditors. LAYTON-Funeral services for Mrs. Martha Whitlock of Layton, widow of Dr. W. A. Whitlock, who died at local hospital Friday, will be conducted in the Kaysville L. D Sons' mortuary. FIRE DEPARTMENT PRAISED OGDEN- Ora Bundy ceived a letter Saturday from O. W Buchholz, insurance adjuster, of Salt Lake, highly complimenting the work 334 the early morning of December 9.
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Ogden Bank Receiver Files Expense Report OGDEN- M. Anderson, receiver in the case of the Ogden State bank, bank and special quidator, against D. D. McKay. E R McKay and James Gunn McKay wherein the bank foreclosed chattel mortgage on certain livestock. filed his third report in the Second dis trict court Saturday and asked that his compensation for services in full be allowed in the of $399 99. Mr Anderson reported the sales of stock since former reports as follows: D. D. McKay, $3034.25 E. R. McKay, $2940.50; James Gunn McKay, $3071
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Hearing Set on Bank Receiver's Tax Application Jan. 30. -District Judge E. has set Monday after for hearing on the petition of the Ogden State bank liquidation for permission to pay delinquent taxes as sets the closed Various properties. the investment The total amount on the Judge Saturday, the for Wyoming Livestock the far as the bank liquidators filed judgment Three were the protecrights be Mona Smith and Elizabeth set forth they the Williams claims $500 trust John he $2,927.18 in the trust
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POWER GRANTED OGDEN, sell certain bonds the Ogden State Bank was granted liquidator "by District Judge George Barker on Saturday upon the Bigelow, and of railroad The per value and the value is approximately
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MISSING BEAR CUBS CAPTURED FOUND; (Special to ceipt of information that the two Monte Springs bears which had been promised the at Hogle Salt Lake had been released from their cage in Mrs. John W. Hyslop, of the Og. den Humane society, went on a bear hunt today. She located one of the bears In tree near the cold water swimming pond Monte and had led its cage. The other bear was dlscovered far away and efforts were being made to recapture it this afterMrs. Hyslop said the evidence indicates persons had deliberately pried the bars to release the mals. among the assets the failed Ogden State bank. having been taken over with the Monte With the closing of the resort, feedthe bears became and Mrs. persuaded the bank to let her dispose of the animals.
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Bigelow Stripped Of His Last Cent OGDEN, Dec. 29. (/P)-A. Bigelow, president of the defunct Ogden State bank and until three years ago, considered of the west's most prominent bankers, walked from the district court, stripped, in the words of his counsel, of his last cent. to an order from the court Mr. Bigelow turned all his property This property Included $30 in currency which Mr. Bigelow had on his person. This was done in an effort the bank receivers to collect in the sum of $31,000 arising from Mr. Bigelow's statutory liability as stockholder the bank which closed August 31,