3100. Peoples Bank (Hilo, HI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 1, 1922*
Location
Hilo, Hawaii (19.722, -155.087)

Metadata

Model
gpt-5-mini
Short Digest
d621347b

Response Measures

Full suspension, Books examined

Other: Receiver (Waterhouse Trust Co.) appointed; criminal indictment for embezzlement of former officer.

Description

Newspaper articles (Feb–Nov 1922) describe a run on the People's/Peoples Bank in Hilo, followed by court-ordered closing and turning over to the territorial bank examiner and appointment of a receiver. Subsequent articles describe embezzlement indictments and receivers seeking to pay depositors — consistent with permanent closure/receivership. OCR variations corrected (People's Bank, Peoples' Bank and Trust Company, Securities Trust Company).

Events (5)
1. February 1, 1922* Run
Cause
Bank Specific Adverse Info
Cause Details
Persistent reports about the bank's poor condition and misfortunes in Hilo; run followed months of talk about the bank's condition.
Measures
Management closed the doors; territorial treasurer later opened bank to receive payments of debtors.
Newspaper Excerpt
The action by its management followed a run on the bank.
Source
newspapers
2. February 21, 1922 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Judge Ross issued an order on application of Territorial Treasurer after a run; bank formally closed and turned over to examiner/receiver due to impaired condition and misfortunes; later embezzlement allegations emerged against officers/manager.
Newspaper Excerpt
Court Turns People's Bank of Hilo Over To The Bank Examiner ... was formally closed and turned over to the territorial bank examiner.
Source
newspapers
3. April 27, 1922 Receivership
Newspaper Excerpt
Security Trust Company of Hilo which went into the hands over a receiver several weeks since ... petitions for the appointment of the Waterhouse Trust Company as receivers for the institutions. That trust company was named as receiver for the two Hilo concerns. (context references the Hilo institutions going into receivership earlier). The court order turning the People's Bank over to the examiner indicates receivership process was under way in Feb and receiver active in April. (major articles: Apr 28 and June articles describe receiver activity).
Source
newspapers
4. June 1, 1922 Other
Newspaper Excerpt
Trial of Truslow in Connection Affairs Of Bank is Started ... Truslow is under indictment on charges of embezzlement as the result of the failure of the two institutions. (criminal prosecution related to bank failure).
Source
newspapers
5. June 9, 1922 Other
Newspaper Excerpt
Hilo Bank May Pay 75 Percent Back ... Receivers of the Peoples' Bank and Trust Company hope to pay 75 cents on the dollar.
Source
newspapers

Newspaper Articles (6)
1. February 21, 1922 The Maui News Wailuku, HI
Article from The Maui News, February 21, 1922

Click image to open full size in new tab

Article Text

Court Turns People's Bank of Hilo Over To The Bank Examiner (ASSOCIATED PRESS) HONOLULU, Feb. 21-Territorial Treasurer A. Lewis, Jr., is in Hilo in connection with the affairs of the People's Bank which by an order issued by Judge Ross in the Fourth Circuit was formally closed and turned over to the territorial bank examiner, according to a special wireless to the StarBulletin. The order was issued on the application of Territorial Treasurer Lewis. News of the closing of its doors of the People's Bank was received here Saturday. The action by its management followed a run on the bank. Treasurer Lewis left for Hilo Saturday afternoon. According to the Star-Bulletin speci al Lewis said after a consultation with the bank officials that it is possible there are sufficient assets to pay depositors in full. Previously officials had been quoted as saying depositors will lose nothing. Lewis opened the bank to receive payments of debtors to the bank yesterday. For months there has been talk in financial circles as to the condition of the People's Bank and the report of its closing occasioned little surprise and no excitement here. Recently Waterhouse Trust Company bought the stock of Senator Russell and others in the bank. In financial circles here it is felt that the misfortunes of the Hilo bank will have no effect whatever on any financial institutions outside of Hilo as recent reports of all the other banking institutions show strength and stability and conservatism in loans.

2. April 28, 1922 The Maui News Wailuku, HI
Article from The Maui News, April 28, 1922

Click image to open full size in new tab

Article Text

Bank, Trust Co. and Branch Bank Taken Over by Territory (ASSOCIATED PRESS) HONOLULU, April 27-Territorial Treasurer Lewis today took over the affairs of the Hawaii Bank of Commerce and its allied concern, the Commercial Trust Company, both promoted originally by the same interests that were identified by the People's Bank and the Security Trust Company of Hilo which went into the hands over a receiver several weeks since. His action resulted from impairment of the capital and inadequate resources of the institutions. Through Attorney General Harry Irwin he petitions for the appointment of the Waterhouse Trust Company as receivers for the institutions. That trust company was named as receiver for the two Hilo concerns. The Bank of Kauai branch was also ordered closed by Treasurer Lewis in a wireless message. Imparement of the capital amounts to about $2.50 a share, the par value of which is $20 and totals about $25,000. Bank officials said that the difficulties are due in a large measure to the burden of carrying the Kauai branch which was taken over with the formation of the Honolulu concerns. That branch has lost $40,000, officials said. Lewis states that the officials of the two institutions have been endeavor ing for some time past to effect a reorganization and to secure working capital and that every opportunity would be given them with the assistance of the receiver to carry out such plans. D. E. Metzger, former territorial treasurer, is president of both institutions which opened their doors for business on January 3, last. They are capitalized at $200,000 of which $100,000 has been paid in. It is considered unlikely that the depositors will lose anything. In Maui banking circles the news of the taking over of the two institutions occasioned no surprise. Something of the nature has been expected ever since the closing of the Hilo institutions. World financial conditions operated against the success of new banking ventures at the time the two institutions were opened and since and the former connection of the concerns with the Hilo interests involved in the bank failures there added further to difficulties that were encountered. Neither of the local banks have been in any way affected by the troubles of the Hilo or Honolulu banking concerns.

3. June 2, 1922 The Maui News Wailuku, HI
Article from The Maui News, June 2, 1922

Click image to open full size in new tab

Article Text

Trial of Truslow in Connection Affairs Of Bank is Started (ASSOCIATED PRESS) HONOLULU, June 1-Declaring "I will show that not only was there intent to defraud but fraud was actually committed," Attorney General Harry Irwin made his opening statement to the jury in the trial of Herbert A. Truslow, former vice president and manager of the now defunct Peoples Bank and the Securities Trust Company of Hilo. Truslow is under indictment on charges of embezzelment as the result of the failure of the two institutions. Judge J. J. Banks is presiding at the trial. Irwin charged that Truslow after handling stock transactions for William McCallum, on margins, had in April 1921, sold out McCallum's holdings and, concealing the fact from McCallum, had accepted payments on the account, and in July of the same year had called on McCallum to furnish additional security, saying that otherwise the stock would be sold to meet his obligations, and had accepted payments on the account. Upon the taking over of the bank and trust company by the receiver the account of McCallum was found listed among the assets of the trust company and demand is now being made on McCallum for the payment of the account, which alleged indebtedness is said to amount in excess of $10,000. McCallum was the first states witness to appear on the stand this morning and his statements, for the greater part, coroborated with those made by Irwin.

4. June 9, 1922 The Maui News Wailuku, HI
Article from The Maui News, June 9, 1922

Click image to open full size in new tab

Article Text

Hilo Bank May Pay 75 Percent Back -(ASSOCIATED PRESS) HONOLULU, June 9-Receivers of the Peoples' Bank and Trust Company hope to pay 75 cents on the dollar. George Vicars says. Liabilities of the Securities Trading Company are place at $215,000 with assets dwindled to $410,000 according to the report of Vicars, representative of the Waterhouse Trust Co., the receiver. The liabilities include claims of $68,000 of persons whose stocks were sold out and a loan from the Peoples' Bank of $140,000.

5. November 7, 1922 The Maui News Wailuku, HI
Article from The Maui News, November 7, 1922

Click image to open full size in new tab

Article Text

Suit has been brought against the Securities Trust Co., of Hilo by the Waterhouse Trust Co., receiver for the People's Bank for $134,842.58. J. W. Russell was president of the company and Herbert Truslow, treasurer.

6. February 18, 1932 Honolulu Star-Bulletin Honolulu, HI
Article from Honolulu Star-Bulletin, February 18, 1932

Click image to open full size in new tab

Article Text

Told From Files of 10 and 20 Years Ago TWENTY YEARS AGO Palmer, manager of the Courtland hotel, Percy M. Pond have taken over the lease the Hau Waikiki beach hotel, which they will the Wailana. The attractive cottages built by George Wilcox at Grove Farm plantation, Kauai, be remarkable innovation in housing facilities plantation laborers. Charles Warren, well known purser of the Matsteamer Lurline, the Seattle agency Alexander & Baldwin, Ltd., about March TEN YEARS AGO the People's bank at Hilo was stopped closed its doors the arrival Lewis territorial Archie Lister, former superintendent of the Pauwela Pineapple Haiku, Maui, has been appointed Kohala Co. Mrs. Paul Withington and Stanley Kennedy played roles in the Footlights club play, "Behind the