278. Valley Savings Bank (Argenta, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
June 19, 1913
Location
Argenta, Arkansas

Metadata

Model
gpt-5-mini
Short Digest
be175580

Response Measures

Full suspension

Other: Receiver appointed and bank declared insolvent; president later convicted of receiving deposits while insolvent.

Description

A depositor run began June 19, 1913 causing the bank to close its doors; a receiver (George Vaughan) was appointed June 21 and the institution was declared insolvent. Contemporary reports mention rumors about a life insurance company and the president's claim of a conspiracy. Later criminal convictions of the president confirm insolvency findings.

Events (3)

1. June 19, 1913 Run
Cause
Rumor Or Misinformation
Cause Details
Run reportedly started by rumors that a local life insurance company was in financial straits and that the bank had become involved; president called it a conspiracy to ruin him financially.
Measures
Bank closed until directors could meet; president told depositors to return Friday morning; several thousand dollars paid out during the run.
Newspaper Excerpt
The Valley Savings Bank of Argenta closed its doors at 3 o'clock this afternoon as the result of a run on the institution which started at noon.
Source
newspapers
2. June 21, 1913 Receivership
Newspaper Excerpt
George Vaughan ... was this morning appointed receiver of the Valley Savings bank of Argenta ... Mr. Vaughan at once started an investigation into the affairs of the bank and said tonight that he hoped to be able to make a statement as to its financial condition by tomorrow night.
Source
newspapers
3. June 21, 1913 Suspension
Cause
Government Action
Cause Details
Application for receivership made by a stockholder who declared the bank insolvent; court-appointed receiver began investigation and later proceedings set depositors to file claims.
Newspaper Excerpt
George Vaughan, a Little Rock attorney, was this morning appointed receiver of the Valley Savings bank of Argenta, which closed its doors yesterday afternoon following a run by depositors.
Source
newspapers

Newspaper Articles (12)

Article from Tulsa Daily World, June 20, 1913

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RUN ON BANK CAUSES THE DOORS TO CLOSE PRESIDENT SAYS IT WAS A CONSPIRACY TO RUIN HIM FINANCIALLY. - --LITTLE ROCK, Ark. June 19.The Valley Savings Bank of Argenta closed its doors at 3 o'clock this aft. ernoon as the result of a run on the institution which started at noon. W. W. Hurst, president of the bank declared tonight that the bank is perfeetly solvent and said that the run was the result of a conspiracy to cause his financial embarrassment. He said that the bank was closed until the directors could meet to consider the situation. He said the directors will meet tomorrow and that the bank might reopen on the fol. lowing day. Mr. Hurst yesterday resigned as president of a local life insurance company. It is said the run was started as the result of rumors that the life insurance company is in financial straits and that the bank had become involved.


Article from Pine Bluff Daily Graphic, June 20, 1913

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VALLEY SAVINGS BANK CLOSES Believed That It Will Pay All Depositors, However. Little Rock, June 19.-The Valley Savings Bank, of Argenta closed its doors at three o'clock today after a short run during which several thousand dollars was paid out to depositors. President iW. W. Hurst told others to return Friday morning and get their money. The bank has deposits of about $160,000 and capital of $35,000. It is believed it will pay out,


Article from The Daily Ardmoreite, June 22, 1913

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BANK CLOSED ITS DOORS. President Says Its Conspiracy to Ruin Him Financially. Little Rock, Ark., June 21.-The Valley Savings Bank of Argenta closed its doors at 3 o'clock this afternoon as the result of a run on the institution which started at noon. W. W. Hurst, president of the institution, declared tonight that the bank is perfectly solvent and said that the run was the result of a conspiracy to cause his financial embarrassment. He said the bank was closed until the directors could meet to consider the situation. He said the directors will meet tomorrow and that the bank might reopen on the following day. Mr. Hurst yesterday resigned as president of a local life insurance company. It is said the run was started as the result of rumors that the life insurance company is in fiancial straits and that the bank had become involved.


Article from Tulsa Daily World, June 22, 1913

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RECEIVER APPOINTED FOR FAILED BANK STARTED AT ONCE INVESTIGATION OF THE FINANCIAL CONDITION. LITTLE ROCK, Ark., June 21. George Vaughan, a Little Rock attorney, was this morning appointed receiver of the Valley Savings bank of Argenta, which closed its doors yesterday afternoon following a run by depositors. The application for receivership was made by Captain H. C. Daniels, of Little Rock, a stockholder, who declared the bank to be insolvent. Mr. Vaughan at once started an investigation into the affairs of the bank and said tonight that he hoped to be able to make a statement as to Its financial condition by tomorrow night. Mr. Vaughan said that the closed bank was correspondent for the Mechanics American bank of St. Louis, Mo., and the City National Bank of New York. He said these were the only institutions with which the local bank was connected.


Article from Judsonia Weekly Advance, June 25, 1913

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Run on Savings Bank. Argenta.-The Valley Savings Bank of Argenta closed its doors, after a run of several hours. The bank had deposits amounting to $160,000 and bills payable amounting to $45,000, well secured. It was stated that depositors will be paid in full, as the bank will easily realize the amount of its indebtedness from its real esstate holdings.


Article from Judsonia Weekly Advance, July 2, 1913

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Must File Claims. Argenta.-An order granting deposttors in the defunct Valley Savings bank of Argenta 90 days time from June 26 to file their claims with George Vaughan, receiver of the bank has been issued in the Palaski Chancery Court. Originally the order was dated June 19, with a 90-day time allowance, but was changed to give the depositors, many of them laberin peo ole with all their finances in the bank more time to prepare to receive bene fits from the assets to be distributed


Article from Newport Daily Independent, March 23, 1914

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er president of the Valley Savings Bank or Argenta, which failed last year. He has just been convicted on one count of having received deposits when he knew the bank to be insolyent. The jury was out 73 minutes, and his punishment was fixed at three years in the penitentiary. Hurst was the only witness for the defense. The receiver, Geo. Vaughan, testified that on June 17, when Hurst received a deposit of $641 from J. A. Henry of Argenta, the liabilities of the bank were $178,644.78, and the assets $106,205.96. There will be a motion for a new trial, and in all probability an appeal to the supreme court, which will delay the case for some time yet.


Article from The Prescott Daily News, March 23, 1914

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CONVICTED ON ONE HAS FIVE MORE INDICTMENTS W. W. Hirst, Former President of Valley Savings Bank of Argenta Receives Three Years in Penitentiary. Will Appeal Little Rock, March 23.-There are still five indictments pending against W. W. Hirst, former president of the Valley Savings Bank of Argenta, which failed last year. He has just been convicted on one count of having received deposits when he knew the bank to be insolvent. The jury was out 73 minutes, and fixed his punishment at three years in the penitentiary. Hirst was the only witness for the defense. The receiver, George Vaughan testified that on June 17, when Hirst received a deposit of $641 from J. A. Henry of Argenta, the liabilities of the bank were $178,644.78, and the assets $106,205.96. There will be a motion for a new trial, and in all probability an appeal to the Supreme court, which will delay the case for some time yet.


Article from The Forrest City Times, March 27, 1914

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ARGENTA BANKER IS FACING PRISON W. W. HURST CONVICTED OF RE. CEIVING DEPOSITS WHEN BANK WAS INSOLVENT. FIVE OTHER INDICTMENTS Motion for New Trial Will be Made, and Probably Be Followed by an Appeal. Western Newspaper Union News Service. Little Rock.-There are still five indictments pending against W. W. Hurst, former president of the Valley Savings Bank of Argenta, which failed last year. He has just been convicted on one count of having received deposits when he knew the bank to be insolvent. The jury was out 73 minutes, and fixed his punishment at three years in the penitentiary. Hurst was the only witness for the defense. Receiver George Vaughan, testified that on June 17, when Hurst received a deposit of $641 from J. A, Henry of Argenta, the liabilities of the bank were $178,644.78, and the assets $106,206.96. There will be a motion for a new trial, and in all probability an appeal to the supreme court, which will delay the case for some time yet.


Article from The Harrison Times, March 28, 1914

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ARGENTA BANKER IS FACING PRISON W. W. HURST CONVICTED OF RECEIVING DEPOSITS WHEN BANK WAS INSOLVENT. FIVE OTHER INDICTMENTS Motion for New Trial Will be Made, and Probably Be Followed by an Appeal. Western Newspaper Union News Service Little Rock.-There are still five indictments pending against W. W. Hurst, former president of the Valley Savings Bank of Argenta, which failed last year. He has just been convicted on one count of having received deposits when he knew the bank to be insolvent. The jury was out 73 minutes, and fixed his punishment at three years in the penitentiary. Hurst was the only witness for the defense. Receiver George Vaughan, testified that on June 17, when Hurst received a deposit of $641 from J. A. Henry of Argenta, the liabilities of the bank were $178,644.78, and the assets $106,206.96. There will be a motion for a new trial, and in all probability an appeal to the supreme court, which will delay the case for some time yet.


Article from Pine Bluff Daily Graphic, July 14, 1914

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Supreme Court Rules That These, Like Labor, Are Not Affected. # BANK RECEIVER MUST PAY CREDITOR $14,000 Insurance Company Wins on Contention That Money Was Loaned Through Misrepresentation by Bankers. Little Rock, July 13.—That laundries or other enterprises rendering service to the public, like labor, do not come under the Arkansas anti-trust law, is the substance of a decision rendered by the supreme court today in the case of the state against four Little Rock laundries, in which the attorney-general, on behalf of the state, asked for several million dollars from the several laundries and asked further that their right to do business in the state be revoked on the grounds that they were in a pool or combination to control the prices of laundry, and therefore were violating the anti-trust laws. It was contended that the laundries had an agreement to fix the price, thereby viclating the anti-trust laws which make it unlawful for anyone to enter into or become a member of or any party to any pool, contract or combination t fix the price limit in the state or elsewhere, the amount or quantity of any article of manufacture, mechanism, merchandise, commodity, convenience or any product of mining or any article or thing whatsoever. It was the contention of the state that laundrying was included in the word commodity, as used in the anti-trust law. This contention was not sustained by either the lower court or the supreme court. The supreme court held that the legislature had not included in the terms of the antit-trust law agreements affecting labor or performance of service; and that laundries ranked under these heads. # Reduces Excessive Judgment. Reducing the verdict from $38,000 to $20,000, the supreme court this morning sustained the cerdict of the Monroe circuit court in giving J. H. Kendall, formerly an Iron Mountain engineer, damages against the Iron Mountain and the Cotton Belt railways. Kendall was a conductor on an Iron Mountain train which was wrecked in a collision with a Cotton Belt freieght train at Clarendon. The Monroe circuit court awarded him $38,000 on his suit for damages for personal injuries. The supreme court held the amount was excessive, and reduced it from $38,000 to $20,000. # Bank Must Pay Depositors. The judgment of the Pulaski chancery court in the case of the International Life Insurance company against George Vaughan, receiver for the defunct Valley Savings Bank of Argenta, was reversed and a finding made that the company should get a verdict for $14,000 against the bank receiver. The insurance company alleged that it had certificates of deposit representing $9,000 in the bank shortly before it was closed and that on the misrepresentation of W. W. Hurst, the bank president, it had loaned an additional $5,000. The loan was made within a week before the bank was closed. The complaint alleged that the loan was made on the representation that the bank was solvent, but that it needed cash to meet a withdrawal of $12,000. As security for the certificates of deposit and the $5,000 loan the company took a note for $14,000. After the bank failed the company sued for the $14,000. The chancery court ruled that the claim for the $5,000 was valid, but the one for the other $9,000 was not. The supreme court found that the claim for the entire amount was valid and reversed the chaancery court's ruling. # Bridge Case Decided. Another suit having possible bearing on a Little Rock situation was that of I. H. Nakdimen against the Fort Smith and Van Buren bridge district. The bridge district commissioners entered into a contract with the Fort Smith street car company allowing the company the free use of a bridge for a period of forty-five years on the condition that 5-cent intercity fares be given. Nakdimen sued the commissioners, holding that they did not have this power. The Sebastian chancery court held that the (Continued on Page 8.)


Article from The Pulaskian, December 3, 1915

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In a civil suit growing out of the famous horse racing swindles at Hot Springs several years ago, the court a refused to give John H. Rumping judgment of $3,788 against the Arkansas National bank at Hot Springs for drafts which the bank paid. Rump. ing, a Montana resident, put up drafts as a bet on a fake race. Ed Spear, now awaiting a second federal trial in connection with the cases, procured the money from the bank on the drafts. Rumping sued Spear and the bank in the Garland Circuit Court to recover his loss. He was given a judgment against Spear, but the court held that the bank was not liable unless it could be proved it was a party to the swindle. The Supreme Court affirmed the decision. Rumping, while visiting Hot Springs in January, 1913, met two men, calling themselves Minor and Hamilton. They interested him in a horse race proposition, the returns from the race being received at a pool room. Rumping put up $3,788 on the race, and shortly afterwards his friends announced their joint winnings on the race were $108,000. Before payment would be made the poolroom keeper demanded that the amount of their bet should be paid in cash as an evidence that it had been made in good faith, and Rumping turned over drafts on a Chicago bank tor his part. The drafts were collected by Ed Spear, to whom they had been delivered through the Arkansas National bank, and when Rumping found out that he had been swindled, he brought suit against Spear and the bank. The money was collected and checked out of the bank by was but the against Spear. Spear, Judgment bank defended rendered on the it acted as the successfully merely ground agent of that Spear, who was a customer of the bank, in the collection of the drafts, and that it had no knowledge of the fraud being perpetrated. W. W. Hurst, who was president of the defunct Valley Savings Bank of Argenta, convicted about 18 months ago of receiving funds on deposit when he knew the institution to be in a an insolvent condition, and given three-year term in the penitentiary, was paroled by the state penitentiary board. For several months past Hurst was employed as a clerk in the office in the institution. Immediately after his he went to Springs release with Hot relatives. to spend a few days An epidemic of smallpox at Heber Springs is practically under control, according to Dr. C. W. Garrison, state health officer, who returned from a and an order by Dr. mayor there. Under proclamation Garrison, of the no child is allowed to enter school without showing a vacination certificate. All persons who have been exposed must be vaccinated or remain quarantined 14 days. Efforts of department and mercantile store owners and managers to have permits Minimum special Wage Commission issued to by permit the to day nine women hours employes per during work longer the consid- Christ- than mas holiday season was ered by the commission, according to Commissioner of Labor Clary, the chairman. Lloyd England, as receiver for the State National bank, filed suit in Circuit Court against L. J. Menton for of two on he and on the is collection principal another notes which which he is surety, totaling about $2,500. Judgment for interest on the notes dating from the early part of 1914 is also asked. On account of the Arkansas Stock Growers' annual convention and farmers' week .in Little Rock, January 10Rock Island announces rates from on its 13, excursion the all points special lines in Arkansas. Tickets will be on sale January 10-12, with return imit of January 15. Only routine business came before the meeting of the State Highway Commission. The three members of the commission, W. B. Owen, chairman; A. S. Kilgore of Magnolia and Thomas Burress of Jonesboro, at tended. A date for the Democratic State Convention and apportionment, by counties, of delegates to the convention, will be among the important matters taken up by the Democratic State Central Committee at its meeting here December 9.