21406. Deseret Savings Bank (Salt Lake City, UT)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
f809d007

Response Measures

None

Description

Articles report that State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings Bank on February 13, 1932 (suspension/takeover by examiner). The bank is repeatedly described as closed or defunct afterward, depositors sued, and an examiner/receiver administered affairs — indicating the bank did not resume normal operations. The coverage does not describe a discrete depositor run prior to suspension; the trigger appears to be insolvency and regulatory takeover. OCR errors in some articles corrected (Descret -> Deseret).

Events (4)
1. February 13, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State bank commissioner took over the affairs due to alleged insolvency, false/fraudulent representations and imprudent investments leading to insolvency; regulatory takeover on Feb 13, 1932 mentioned as the bank's closure trigger
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. March 7, 1932 Other
Newspaper Excerpt
The Security National bank, which moved into the quarters formerly occupied by the Deseret Savings and Deseret National banks... The complaint states that some of the plaintiffs made demand on the Deseret National bank and the Security 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.
Source
newspapers
3. March 29, 1932 Other
Newspaper Excerpt
A defense motion asking an extension of time to answer or plead to suit filed by depositors in the defunct Deseret Savings bank... The time limit set in the original complaint was April but Judge Bramel granted the motion to extend the time to May.
Source
newspapers
4. February 13, 1933 Other
Newspaper Excerpt
$218,153 Sought in Action Against 72... suit filed in the district court by John Malia, bank commissioner... based on liability of stockholders the Deseret Savings bank. The bank had capital stock of 5,000 shares $100 per...
Source
newspapers

Newspaper Articles (6)
1. June 22, 1931 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, June 22, 1931

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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.