Security National Bank - Salt Lake City, UT

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 9652
Charter Number: 9652
Start Date: February 13, 1932
Location: Salt Lake City, Utah (40.761, -111.891)

Metadata

Model: gpt-5-mini
Short Digest: e419b297

Response Measures

None

Description

Article (Salt Lake Telegram 1932-03-07) describes State Bank Commissioner taking over Deseret Savings Bank on Feb 13, 1932 and Security National (which absorbed Deseret National on Feb 14) being sued because some depositors demanding their deposits were refused. No explicit run is mentioned; a government takeover/receivership of Deseret Savings and subsequent refusal to pay depositors are described. I classify this episode as a suspension/closure-type event (government action leading to refusal to pay).

Events (5)

1. February 1, 1910 Chartered

Source: historical_nic

2. February 13, 1932 Receivership

Newspaper Excerpt: 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 alleged ... (Shows commissioner takeover/receivership of Deseret Savings Bank.)
Source: newspapers

3. February 13, 1932 Suspension

Cause: Government Action
Cause Details: State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings Bank on February 13, 1932, effectively suspending normal operations and triggering depositors' claims against affiliated institutions (Deseret National and Security National).
Newspaper Excerpt: At the time State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings bank, February 13,
Source: newspapers

4. February 14, 1932 Other

Newspaper Excerpt: The Security National bank, which moved into the quarters formerly occupied by the Deseret Savings and Deseret 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 Deseret National bank and the Security National for the amounts of their deposits and have been refused by the banks. (Note: OCR errors in original printed text.)
Source: newspapers

5. March 7, 1932 Other

Newspaper Excerpt: FRAUD ALLEGED BY IN BANK SUIT ... 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. (Excerpt describing lawsuit naming Security National as defendant for refusing depositors.)
Source: newspapers

Newspaper Articles (1)

1. 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.