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COLORADO STATE BANK SUSPENDS. Durango, Col., Dec. 14.-The Colorado State Bank of this city suspended business to-day, pending reorganization. It holds deposits of $500,000 and its capital is $75,000.
Colorado State Bank (Durango, CO)
Episode Information
- Episode UID
2630040791296- Episode Type
- Run → Suspension → Closure
- Bank Type
- state
- Bank ID
-
263004079hash - Start Date
- December 14, 1907
- Location
- Durango, Colorado (37.275, -107.880)
Metadata
- Model
- gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
b320196027cc13b1
Response Measures
None
Description
The bank suspended following a run triggered by the indictment of its directors for land fraud; it was subsequently placed in receivership and liquidated.
Events (4)
1.
December 14, 1907
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Indictment of bank directors (Ellis Hampton, B. N. Freeman, and Frank Eldridge) for alleged land frauds in Archuleta county caused depositor uneasiness.
- Measures
- The bank attempted to reassure depositors by issuing a statement that assets were unimpaired and that the indictments were unfounded.
- Newspaper Excerpt
- Suspension was caused by uneasiness of the depositors over indicaments there. Directors in land fraud cases were the directors in the bank which failed.
- Source
- newspapers
2.
December 14, 1907
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Heavy withdrawals and impaired cash reserve due to depositor uneasiness over director indictments and the failure of a land company to pay a large sum due to the 'financial flurry'.
- Newspaper Excerpt
- The Colorado State Bank of this city suspended business to-day, pending reorganization.
- Source
- newspapers
3.
December 25, 1907
Receivership
- Newspaper Excerpt
- appointed Owen F. Boyle receiver of the Colorado State bank, fixing his bond at $50,000.
- Source
- newspapers
4.
January 4, 1908
Other
- Newspaper Excerpt
- warrants were sworn out charging Benjamin M. Freeman, president, and Frank Eldredge, Evan Hampton and W. C. Chapman, directors, with having received deposits when they knew the bank to be insolvent. They were arrested and gave bonds for appearance for trial.
- Source
- newspapers
Newspaper Articles (21)
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COLORADO STATE BANK CLOSES ITS DOORS Morning Times Special. Durango, Colo., Dec. 14-Colorado state bank of this city closed its doors this afternoon until reorgamization. The bank has a half million on deposit with a capital stock of $75,000. Suspension was caused by uneasiness of the depositors over indicaments there. Directors in land fraud cases were the directors in the bank which failed. The bank is solvent and will resume business shortly.
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SUSPENSION OF BANK Colorado State Bank of Durango Quits Business Pending a Reorganization. Durango, Colo., Dec. 14.-The Colorado State Bank of this city suspended business today pending re-organ ization. It holds deposits of $500,000 and its capital is $75,000. Officials of the bank assert that the assets are entirely unimpaired and that the bank will be able to pay its depositors as well as stockholders in full.
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DURANGO BANK SUSPENDS Colorado Institution Obliged to Close Pending Reorganisation-Hopea of Resumption. DURANGO, Colo., Dec. 14.-The Colorado State bank of this city suspended business today pending reorganization. It holds déposits of $500,000 and its capital is $75,000. The officials of the bank issued a statement in which they assert that the assets are entirely unimpaired and that the bank will be able to pay its depositors as well as its stockholders in full. The statement further says that the causes leading to the suspension are the uneasiness in the minds of the depositors caused by the fact that Ellis Hampton, B. N. Freeman and Frank Eldridge, directors of the bank, have been indicted for alleged land frauds in Archuleta county. The statement says that these indictments are entirely unfounded. The bank recently sold a third interest in the Montezuma Water and Land company. Payment for this was to have been made in cash in full this fall. The financial flurry has rendered it impossible for the purchasers to pay more than 20 per cent of the amount due and this has impaired the cash reserve of the bank. An examination of the books of the bank is being made by Charles E. Herr, J. W. Walters and O. S. Bayle, a committee of depositors. and they have reported that so far as their examination extends they find the bank in splendid condition. It is expected that the bank will resume operations in a short time.
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DURANGO BANK SUSPENDS Deposits of $500,000; Capital $75,000-Statement That Depositors Will Be Paid in Full. Durango, Colo., Dec. 14.-The Colorado State bank of this city suspended business today pending reorganization. It holds deposits of $500,000, and its capital is $75,000. The officials of the bank issued a statement in which they assert that the assets of the bank are entirely unimpaired and that the bank will be able to pay its depositors in full as well as its stockholders. The statement further says that the causes leading to the suspension are the uneasiness of the minds of the depositors caused by the fact that Ellis Hampton, B. N. Freeman and Frank Eldredge, directors of the bank. have been indicted for alleged land fraunds in Archulta county. The statement says that these indictments are entirely unfounded. The bank recently sold a third interest in the Montezuma Water & Land company. Payment for this was to have been made in cash in full this fall. The financial flurry has rendered it impossible for the purchasers to pay more than 20 per cent of the amount due, and this has inpaired the cash reserve of the bank. An examination of the books of the bank is being made by Charles E. Herr, J. W. Walters and O. S. Bayle, and they have reported that SO far as their examination extends they find the bank in splendid condition. It is expected that the bank will resume operations in a short time.
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al John Kellenberger returned last evening from a trip around the crele. 1 -0Mr. and Mrs. Dick House are down from Silverton stopping at the PalK ace. S -0 or W. R. Mason and Joseph Vanderweide are registered in the city from Hesperus. 1. e J. H. Slattery came down from v Silverton this morning and continued n on to outside points. -0Ben Russell came down from Sil e verton this morning and will spend y Sunday with his folks. I -0S Deputy United States Marshal Frank arrived from Denver last evening After more witnesses for the grand d jury. -0Merchant H. C. Bollinger and son 8 are down from La Plata today look ing around after Christmas and other supplies. 8 -04 The Southern hotel tomorrow will 1. serve a turkey dinner with all the trim o mings. Whet up your appetite and get 8 ready for it. -0o : Gordon Smith. connected with the 8 American Smelting and Refining com pany. who has been here several days, left for Denver this morning If n Dr. G. V. Copp. spent yesterday in e the city en route from the west and e went on east on this morning's train n The spent some time in Telluride -0 e le The high school will be open from e 1 p. m. to 5 p. m. tomorrow afternoon t to give any who may desire an oppor tunity to see the pictures on exhibition there. -0-The Turner art exhibit at the high school tmorrow afternoon. The build ing will be open from 1 p. m. to 5 p. m No tickets will be sold: You may contribute something if you desire. -0a County Treasurer Goodman had a little less than $9,000 in the Colorado State bank, but there is no uneasiness felt on that account The county is , secured by the bonds of a bonding s company. which in turn is secured by collateral by the bank. So the county in protected. p -0n Events during the past ten days have been disastrous for Durango and le we are getting more than our share of le misfortune. On the morning of the 4th the fire in the Henderson & Loftus block occurred and inflicted a net loss t of $100,000 On the 7th came the o closing of the Fair store, involving le something like $60,000 and yesterday r the closing of the Colorado State bank. Yet there is no undue exciteV e. ment and the people are thankful it t is no worse The hardest kickers about all tnree disasters are the ones 1. least affected Especially is that the t case in the bank failure. The de 8 d positors feel deeply the inconvenience caused by the bank's suspension and w the consequent tying up of their funds, Is but they are not going around shoute ing their woes from the housetops e but are talking the matter as philoin sophically as possible, fully expecting a to get dollar for dollar of their de e posits. it -0in The next event in the dance line nt will be given by the Modern Woodse men at Red Men hall next Wednes d day night. is -0it Visit the high school tomorrow aft. 00 ernoon and see the 200 beautiful picKH tures of the Turner art exhibit. From y 1 p. m. to 5 p. m. a of G. L. Shumway of Scottsbluff Neb. ks executive chairman of the American at Irrigation federation is in the city ly stopping at the Savoy. if. -0en One of the most important an 13nouncements made since the present go, financial stringency began was that o m Franklin Guiterman, general manager SS of the American Smelting and Refin eir ing company, in which he stated tha the business of the company would not be put on a credit basis and tha eat enough money would be paid on al an ores to insure the continued opera ver tion of the mines throughout the west en The announcement follows the visit o lot. Manager Guiterman to the executiv
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LAND FRAUDS HIT BANK. Lack of Confidence Through Indictmen of Prominent Men. Durango, Col., Dec. 17.-Lack of confidence, due, it is said, to the indictments of prominent citizens on charges of land frauds under the federal laws, led to the suspension of the Smelter City bank to-day as well as the Colorado bank, which failed last week. The former is a state institution, capital $30,000. No statement of its assets or liabilities has been given out, but the deposits are believed not to exceed $100,000,
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NEWS OF THE WEEK In a Condensed Form for Our Busy Readers. A Resume of the Less Important but Not Less Interesting Events of the Past Week. England has just been visited by a severe storm. The Colorado State bank, of Durango, has suspended. The revolutionary agitation is growing in Portugal. The Yaqui Indians are again on the warpath in Mexico. The National Bank of Commerce, of Kansas City, will reopen. Japan and Russia have combined to freeze China out of Manchuria. The bridal gifts of Marshall Field's daughter were stolen in England. The peace conference of the Central American republics has been concluded. Scotchmen in London are again adopting the kilt as a regular wearing apparel. The East has just exeprienced a great storm. Heavy snow fell and many wires are down. Premiums are being offered for the new gold pieces without the motto "In God We Trust." A petition to allow women to vote on municipal affairs in Paris was greeted with laughter by the council. General Funston finds the Goldfield situation serious. Commissioner of Indian Affairs Leupp says Indians are losing millions yearly in timber lands. A hous -to-house canvass at Monongah, W. Va., shows 18 still missing as a result of the mine disaster. Plans are complete for re-organizing the Merchants' National bank at Portland and it is expected to open soon. District Attorney Langdon, of San Francisco, also admits that the evidence of Ruef will be required to convict Calhoun. The American Can company has control of the Pacific coast, having absorbed the United Can company, of San Francisco. Goldfield mineowners have withdrawn their new scale and opened negotiations with the American Federation of Labor. The object seems to be to get this organization into a fight with the Western Federation of Miners. D. L. Anderson, president of the Foochow university, who has just returned to this country, says China is on the eve of a bloody revolution that will mark her entrance into the parliament of the world as a power to be reckoned with. The campaign against rate is being kept up vigorously in San Francisco. The Michigan state treasurer is to be removed for putting funds in a rotten bank. The great fleet of warships is all ready to start on its voyage to the Pacific. The presence of General Funston at Goldfield is believed to have a good effect. Bristol's nomination has been withdrawn from the senate as district attorney for Oregon. Mrs. Longworth has undergone an operation for appendicitis, but there is no fear of the results. Senator Bourne, of Oregon, will continue his third-term agitation despite the statement issued by Roosevelt. Kuropatkin has taken the witness stand in behalf of Stoessel and the general stands a better chance of being cleared. Two mail pouches containing valuable packages were stolen from the Omaha postoffice, and no trace of them has been found. Harry Orchard is not displaying as much bravado in telling the story of his crimes to the Pettibone jury as he did at the first recital. Heney has admitted that he needs Abe Ruef's testimony to convict Calhoun and may yet grant the ex-boss immunity and get him on the stand. Sousa has fully recovered from the effects of ptomaine poisoning. State Attorney Healy says he will enforce the Sunday closing laws in Chicago. The ordinance allowing theaters to open in New York on Sundays has been held up. In the Boston city election Republicans elected the mayor for the first time in six years. Queen Carola, of Saxony, is dying. The prediction is made in the East that Bryan and Roosevelt will be opposing candidates for president. A bridge in construction across the
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RESUME OF THE WEEK'S DOINGS General Review of Important Happenings Presented in a Brief and Comprehensive Manner for Busy Roadere-National, Political, Historical and Commercial. A Montana forest ranger has been killed for a deer. French troops have repulsed an attack of tribesmen near Ain Sfa, Algeria. The Japanese ambassador to France denies that his country is after another foreign loan. Carnegie would base the issue of paper money on the gold reserve instead of government bonds. The Northern Pacific railroad will reduce grain rates from Montana points to St. Paul and Minneapotis. Findlay, Ohio, was badly shaken by the explosion of a glycerine factory Much property damage was sustained. Hill told the Interstate Commerce commission that it means a loss of #80 V a car to keep the old lumber rate in effect. Secretary Taft is havinga rough passy age across the Atlantic and his vessel fi will be a day or two late in reaching e New York. t to Goldfield mineowners have asked the t government to diesolve the Western a Federation of Miners and prosecute it as treascnable. to $ Liquor men propose to fight river and e1 harbor appropriations by congress for te dry states. They say twe-thirds of the national revenue is derived from the el liquor business. tu of England has just been visited by a severe storm. p fa The Colorado State bank, of Durango, la has suspended. 20 ta The revolationary agitation is growing in Portugal. U th The Xaqui Indians are again on the ve warpath in Mexico. ed The National Bank of Commerce, of ly Kansas City, will reopen. a go Japan and Russia have combined to freese China out of Manchuria. The bridal gifts of Marshall Field's daug or were stolen in England. C The peace conference of the Central American republics has been concluded. Scotchmen in London are again pe adopting the kilt as a regular wearing Go apparal. W The East has just exeprienced a great th storm. Heavy snow fell and many the wires are down. ga the Premiums are being offered for the me new gold pieces without the motto "In OV God We Trust." elo A petition to allow women to vote ma on municipal affairs in Paris was greetbe ed with laughter by the council. no General Funston finds the Goldfield tee situation serious. of : Commissioner of Indian Affairs OW Leupp says Indians are losing millions any yearly in timber lands. be has A house-to-house canvass at Mononfee gab, W. Va., shows 18 still missing as qui a result of the mine disaster. che Mo Plans are complete for re-organizing E. the Merchants' National bank at Port. land and it is expected to open soon. 8 District Attorney Langdon, of San ept Francisco. also admits that the evidence mil of Ruef will be required to convict Calhoun. ma Oil gus The American Can company has conpet trol of the Pacific coast, having absorbued ed the United Can company, of San a di Francisco. me Thi
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LAND FRAUD CASES HIT BANK. Indietment of Directors Forces Institution to Close, The Colorado State Bank of Durango, Colo., has suspended business pending reorganization. It holds deposits of $500,000 and its capital is $75,000. The officials of the bank issued a statement in which they assert that the assets are entirely unimpaired and that the bank will be able to pay its depositors, as well as its stockholders, in full. The statement further says that the cause leading to the suspension in the uneasiness in the minds of the depositors because of the fact that Ellis Hampton, B. N. Freeman and Frank Eldridge, directors of the bank. have been indicted for alleged land frauds in Archuleta County. The statement says that these indictments are without warrant.
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Bank Receivers Appointed. Durango.-District Judge Pike, while holding court at Pagosa Springs for Archuleta county, appointed Owen F. Boyle receiver of the Colorado State bank, fixing his bond at $50,000. Rowe Pingrey was named as receiver of the Smelter City State bank, his bond being $25,000. Both will immediately furnish bonds, begin work and will report on the conditions of the two institutions in a short time. The combined deposits of the two banks are about $325,000.
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COLORADO BANKERS PLACED UNDER ARRREST Durango, Colo., Jan. 4.-Following the report of Owen F. Boyle, receiver of the defunct Colorado State bank, which was filed in the district court today, warrants were sworn out charging Benjamin M. Freeman, president, and Frank Eldredge, Evan Hampton and W. C. Chapman, directors, with having received deposits when they knew the bank to be insolvent. They were arrested and gave bonds for appearance for trial. According to Receiver Boyle's report, the Colorado State bank will be able to pay depositors only 25 cents on the dollar at the outside estimate.
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OFFICIALS OF COLORADO BANK ARE ARRESTED President and Directors Are Charged with Accepting Deposits After They Knew Institution Was Insolvent By Associated Press. DURANGO, Colo., Jan. 4.-Following the report of Owen F. Boyle, receiver of the defunct. Colorado State bank which was filed in the district court today, warrants were sworn out charging Benjamin M. Freeman, president: Frank Eldredge, Evans Hampton and W. C. Chapman, directors, with having received deposits when they knew the banketo be insolvent. They were arrested and gave bonds for appearance for trial. According to Receiver Boyle's report the Colorado State bank will be able to pay depositors 25 cents on the dollar on the outside estimate.
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RECEIVER BOYLE FILES REPORT OF CONDITION OF COLORADO STATE BANK Of F. Boyle, receiver, filed his report of the condition of the Colorado State bank with District Judge Chas. A. Pike at 5:30 last evening. The report is complete and voluminous, covering some thirty-six pages of closely lined foolscap according to schedules. In the first place appears a summary showing the total assets, the amount considered good, the amount doubtful and that considered worthless. This summary is given below. Under each schedule is given an itemized statement of the assets, showing signers of notes, the collateral, etc., held by the bank. Then appears a list of depositors under three headings, giving the ope accounts subject to check, the savings bank accounts and the time certificates subject to deposit. These are given in a summary which we are able to publish, as well as amounts due other creditors. The report shows liabilities amounting to $282,124.63, with total assets of $365,$28.25. The receiver places these assets under three headings. He reports $141,408.89 good; $91,335.98 doubtful, and $133,083.38 worthless. The report would take up two pages of The Herald, therefore too long to publish. It covers simply the official business-does not go into the methods of doing business or how the bank came to be burdened with poor paper. No recommendations of any kind are made. The report is open for inspection in the office of the clerk of the district court where depositors, creditors and others interested may look it over. Mr. Boyle also has a copy at the bank for inspection. It is really an interesting document. To a representative of The Herald Mr. Boyle refused to comment further than what appeared in the report. He says it is for creditors to look over and comment-make up their minds how much can be realized. It is possible the amount placed as worthless may yield a tidy sum, and the doubtful turn out good in the long run. Fair estimates of some who have gone over the report place the total that can be realized at not over $225,000. Granting this it leaves a deficiency of nearly $60,000, or a loss of 20 to 30 per cent. The list of stockholders is appended to the report, which we publish in connection with the summary:
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DEPOSITORS' MEETING. There will be a meeting for depositors only of the Colorado State bank at Red Men hall, Monday, January 13, 1908, at 7:30 p. m., to hear report of receiver, and discuss other matters of importance relative to the winding up of the affairs of the bank. HERMAN BERNDT, Chairman. January 9, 1908.
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it required longer hours in studying out the best way of carrying out the views of both sides. At first it way thought the selection of three trustees of which two were to be selected from among the depositors and the other Mr. Freeman, who was to be in direct charge, would fill the bill. This was found to be objectionable as trustees could not be vested with sufficient power and beside would not be responsible to the court. Then three recelvers were discussed, the decision finally coming down to the appointment of Messrs. Freeman and Chap. man upon them deeding direct to the receivers, and therefore subject to the order of the court, the realty described The realty in question is the Colorado State bank building, paying interest on an investment of $50,000; the store building, warehouses and two lots of W.C. Chapman, and three lots and res. idences in North Durango. he committee figured this property down to about $65,000 real value. Then added to this is a guarantee of $5,000 in cash. In paying depositors under the original agreement, having $50 or less in 90 days out of the regular assets of the bank, some with over $50 might object, hence it was decided that the best way to get around this would be for the bank officials to advance the necessary money and thus the small depositors would receive their money without lessening the assets of the bank. Then the agreement calls for the Chapman and Hampton deposits remaining until all others are paid in full. Finally, depositors must be paid in full within three years with 5 per cent interest or all the property described must be used to satisfy the deficiency; further, should the property deeded to the receiver not meet the requirements, then Mr. Chapman, Mr. Freeman and Mr. Eldredge must make good. At a meeting of the Durango and Pab gosa Springs committees yesterday af1 ternoon the decision was unanimous 8 for the carrying out of this proposition. And all the gentlemen represented are I heavy depositors. They rest content ed that within three years they will have their money dollar for dollar with interest. The committee has called a h meeting of depositors to be held one g week from tonight for the purpose of 8 making their report and general dis. cussion. In the meantime a copy of r the agreement will be received by all y depositors and the committee desires e each and every one to sign and mail d to Mr. Jackson at the earliest possible moment. 8. I In this connection it should be stated n that the work of the writer as well as k that of the advisory committee was y carried on without the slightest disrespect for the present receiver, Mr.
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with writer had an interview reThe Gaines yesterday afternoon by R. E. the proposition submitted settlegarding advisory committee for the bank afthe of the Colorado State agaiast ment Mr. Gaines said he was and fairs. settlement for two reasons, had the that the a great many others same understanding. i. e.: First-That the agreement provides institutno criminal suits can be that that prior to three years, and by be time ed no criminal action can brought. Second-That the property proposed to the be turned over and deeded case to would be forfeited in receivers one brought suit as individuals Chap some Messrs. Freeman and of the against or if they became weary some reaman, burden, they could trump up would son and resign and the property revert back to them. the agreement means what The Mr. If understands it to mean, Gaines would be with him in opposing terms Herald settlement according to its that it a would join him in urging because and rejected by every depositor understandaccording be to Mr. Gaines' not be the agreement would upon. ing, the paper it is written and worth start with, maybe Mr. Gaines little others To have given the subject papers taking the word of mislead study, have done nothing but propothat falsify in every direction, But a now sition and that can be proven. let us get down to facts. First-There is no provision case that makes the agreement void in The criminal suits are, instituted. reference to this is where influence those to only agree to use their the signing people from instituting suits, follows: paragraph keep being number 8, as to Eighth:- All parties agree sup their aid. good will and in obgive to the said receivers and port taining the best, speediest of most satisfactory settlement nothaffairs of said bank, but the in this agreement contained the shall ing bind or obligate any of incur depositors or creditors to expay any costs, charge or litior pense in connection with failure any on gation, nor shall any institutheir part to prevent the tion or prosecution of any party proceeding by any person not a the hereto, release or discharge any parties of the first part from obligation herein contained. There is nothing in this paragraph that will part of the agreement instior any the least prevent suits belag in case in both civil and criminal. do not tuted, Freeman and Chapman The Messrs. two weeks ago make good. Some not agree Herald stated that it would make it proposition that would suits in to impossible a to push criminal And circumstances demanded. pledge case Herald went so far institute as to and George The N. Raymond to end of two criminal suits at the Messrs. push if it was shown that makyears Freeman and Chapman were not of degood. And at the meeting weeks ing at the court house two of the positors Harry Jackson, in behalf was no advisory ago committee, said there prevent provision in the agreement to being the above gentlemen from or pushed criminally, and that a year, would and a half at the outside, whether the year plenty of time to show carrying be receivers intended way proposed their agreeement in every the comout that he would pledge in mittee and to push criminal charges Chapman Messrs. Freeman and letter of case did not agreement. live right Now. up to*th Mr. Gaines, stand. first objection asociates Freeman and his it. your the And Mr. cannot to know this full well and agree property Second-Now as to the must go in as a guarantee, it it-that it pledged only one string to of with be used until the expiration with cannot years unless by agreement sold or three court whereby it can be that may the to pay balances years. mortgaged at the end of one or two show be due deed of conveyance must becomes The the property absolutely of that of the bank at the expiration of any assets three years without recourse must nature: the deed of conveyance assets make the property become the condithe bank under the same or Mr. Chanman or both ate and of tions should either Mr. Freeman anoth
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AN OUTSIDE VIEW. The Journal knows nothing of the local banking conditions at Durango, but were we a depositor in the Colorado State bank, we should favor the agreement whereby it is proposed to adjudicate or settle the affairs of the defunet bank without the aid of a receiver. No matter how promising the resources of a failed bank, it very rarely occurs that there is anything left for the depositors when the receiver winds up its affairs and collects his fees. Almost any arrangement is preferable to a receivership.-Telluride Journal. Mr. Painter, the proprietor of the Journal, is a man of large business experience and is in a position to render good advice. And The Heraid considers this exceptionally good advice in view of the new propositions facing depositors-that stockholders are not liable for a dollar under the new law. Surely those who strive to deceive will have a lot to answer for when the final showdown comes if they are able to keep the strife going.
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Owen F. Boyle, Receiver, and Reese McCloskey, Attorney for Receiver Colorado State Bank of Durango. Gentlemen: We regret exceedingly that after having practically reached an agree. ment on every other question, we cannot accede to any one of your three alternative propositions respecting receiver's fees and attorneys' fees. When, in answer to the application made on yesterday to have the amount of these fees fixed, in order that those who stand ready to furnish money to pay off the depositors of the bank. dollar for dollar, might know how much money they are required to pay. it was, in refusing the application, stated by the court that notes listed by the receiver as "good" to the amount of $19,200 would, in the event of the payment of all demands against the bank, be held by the receiver to meet these fees, we were startled at the exaggerated and exhorbitant amount mentioned, but when after having undertaken, in accordance with a suggestion afterwards made, to en deavor to meet even this demand, a demand which appeared to us to be un < reasonable, we were told by you and furnished a list which showed that 1 what you really proposed to hold. was notes of the face value of $48,700, o f notes which were listed by the re ceiver as "good" at $38.300, and which e we are advised are worth at least their N face value, notes upon which there e would be in your hands, cash by way s of off-sets to the extent of $16.676, II none of which you would consent to 1. allow, we told you plainly that we d could not consent to such an arrangef ment. Many of these notes, but not e an amount in excess of the $19,000 3, mentioned, were needed in the plan e of adjustment under consideration. We gave you a list of those notes re e quired, aggregating $10,970, and offerr ed you your pick of other assets of e the bank, if these notes were not suf t ficient security for your fees. B We offered among other things, n bends of the Income Property comh pany which you admit to be good to 8 the amount of $19,000. e This you refused. 0 Your two alternative propositions as al stated at our interview this evening, are: V, h 1. To pay to you $10,000 in cash y and leave $10,000 more in the said Income Property company bonds, in d the hands of the receiver, out of which n to pay these fees. t2. To provide in the contract for 1 the payment in cash, at the time the d money to pay the depositors in full, is turned over, such additional sum as the court might fix for your fees. s, The first of these propositions sugd gests that you expect or will claim an y allowance of $20,000 for these fees and at this fact stares us in the face when le we consider the second. t We do not feel justified in accepta ing either under these circumstances. d We again ask you to fix the amount I of your fees or at least to name a reaIt sonable amount beyond which they shall not go. We do not consider $20, o 000 as a reasonable amount but as be. ing so unreasonable, we are unable to advise its consideration. r We desire to conclude the agree e ment so nearly arrived at, and which e could be ready for approval by the y court in a few hours were it not for the unfortunate disagreement on the subject of fees, and we respectfully urge you to reconsider the ultimatum I which you gave us on this subject at our recent interview. Hoping to hear from you speedily, we are Very truly yours, T. J. O'DONNELL i B. W. RITTER.
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A bunch of depositors called on The Herald today and asked If we could give any logical reason why the receiver of the Colorado State bank was holding back upwards of $28,000 by paying only an 80 per cent dividend, when there is money on hand to pay dollar for dollar and then leave reasonable compensation. The Heraid, of course, has its opinion for this action, but it is a matter for the depositors to settle with the man "who is always doing good." The Democrat many times said that all Mr. Boyle wanted was to get in sufficient money to pay depositors and he would not charge one cent if this was accomplished. These statements were made at a time when Mr. Boyle was closeted with Day almost nightly. Now for upwards of $28,000 to be retained seems very queer. Every deposit this money was to pay has been verified and why 95 cents at least is not paid we cannot understand, especially under the signed statement appearing in the Democrat that the receiver and attorney fees would not exceed $7,500. Reserving this sum would permit of $20,000 additional being paid out at this time. It should be borne in mind that all side expenses have been paid and that $1,500 have heretofore been paid the receiver and attorneys. Some time in the future The Herald will take up the expense account so depositors will know what a receivership costs. Again, the people of Durango are at a loss to understand why a determined raid is being made in the columns of the Democrat to depreciate the bonds taken by some of the depositors. These same bonds were endorsed a few months ago as first-class securities-worth dollar for dollar, by the Democrat, and merchants are willing to accept them for past due accounts at par. The only reason that can be given for the onslaught is that an effort is being made to make depositors receiving only 80 cents at this time believe they are faring as well as those receiving bonds-to throw dust in the eyes of the depositors who do not take time to study the real conditions. Instead of appealing to The Herald for information it might be well to go to headquarters and ascertain why $28,000 is being withheld when the money is needed. It's up to the depositors.
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committee. The affairs of the Colorado State Bank of Durango are now said to be practically settled. B. N. Freeman, president of the bank, and his associates have turned over to the receiver cash and securities to the amount of $175,000 in purchase of the bank assets, which in addition to the cash collected by the receiver, is sufficient to pay the total liabilities of the bank, which at the time of suspension were $350,000. The Colorado Museum of Natural History, situated in the City Park, at Denver. has received a most valuable gift from Mr. Henry M. Porter of this city consisting of what is known as the "Mary Kimball Pratt" collection of fossils, Indian relics, minerals, gems, old coins, and similar articles. The collection is said to be exceptionally valuable, containing something like 8,000 specimens, some of them of great value because of their rarity. It Is said that the automobile owners of Colorado Springs have promised to contribute $5,000 toward the proposed boulevard from Colorado Springs to Canon City, provided the road is extended to the Royal Garge. Whis is in line with the resolution adopted by the Canon City Merchants' Association, asking the State Legislature to appropriate $10,000 toward the projected Canon City-Colorado Springs road.