3456. First National Bank (Mountainhome, ID)

View Charter #6521 on SPMC

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
6521
Charter Number
6521
Start Date
December 6, 1921
Location
Mountainhome, Idaho (43.133, -115.697)

Metadata

Model
gpt-5-mini
Short Digest
2292b29ca36e4efb

Response Measures

Capital injected, Partial suspension, Full suspension, Books examined

Description

Newspaper articles (Dec 1921) describe heavy withdrawals/a run that depleted cash, the bank's failure to open (suspension) on Dec 7, 1921, and an immediate reorganization plan and committee to reopen the bank (depositors to take stock, certificates of deposit, assessments of stockholders). Cause appears linked to adverse information/inquiries about the bank's condition (bonding company inquiries, examiner presence) and inability to realize on securities.

Events (6)
1. December 5, 1902 Chartered
Source
historical_nic
2. December 6, 1921 Run
Cause
Bank Specific Adverse Info
Cause Details
Inquiries by one of the bonding companies leaked out and became public; presence of a bank examiner and inquiries by bonding company started and helped along the run
Measures
Directors closed bank to protect depositors; committee formed to reorganize; plan to have stockholders surrender stock and depositors take stock/certificates; bonding companies to continue surety
Newspaper Excerpt
A run Tuesday depleted the cash of the bank almost to the vanishing point
Source
newspapers
3. December 7, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Run depleted cash and inability to realize on securities and notes made liquidation impossible; directors ordered temporary suspension to protect assets
Newspaper Excerpt
The First National bank failed to open its doors Wednesday morning... closing was by order of the directors for the protection of the depositors.
Source
newspapers
4. December 10, 1921 Other
Newspaper Excerpt
A meeting was called... the examiner proposed a plan for reorganization. Committee of depositors appointed to act with bank examiner and directors in effecting a reorganization; plan that depositors exchange deposits for stock and stockholders assessed to cover losses was adopted or recommended shortly thereafter (reported Dec 24). The state later demanded state funds from sureties for closed banks including First National, Mountain Home ($21,000).
Source
newspapers
5. December 24, 1921 Other
Newspaper Excerpt
Report of the committee ... recommended that the depositor be required to take stock in the reorganized bank in lieu of fifty per cent of their deposits, and that the remainder be converted into time certificates of deposits ... re-finance institution.
Source
newspapers
6. December 24, 1928 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)
1. December 10, 1921 Mountain Home Republican Mountain Home, ID
Article from Mountain Home Republican, December 10, 1921

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Article Text

UNITED CLOSED ITS DOORS TUESDAY NIGHT Slump in Values of Live Stock Combined With Run Made Action Necessary. Efforts at Reor"ganization. The First National bank failed to open its doors Wednesday morning, a typewritten statement posted on the door stating that the closing was by order of the directors for the protection of the depositors. A run Tuesday depleted the cash of the bank almost to the vanishing point of of and that the the deposit expectation Elmore the Wednesday officers county would be called ifor morning were controlling factors in the decision to close. Inquiries by one of the bonding companies, which leaked out and became public, started the run, and of a bank several assistants, came the with presence who examiner in Monday evening, helped it along. A meeting was called at the Weaver theatre Wednesday afternoon at which the examiner offered some ex. planatory remarks and proposed a plan for reorganization. Worth S Lee was elected chairman of the meeting and A. F. Anderson secretary, and on motion by F. M. Hobbs the chair appointed a committee of five to nominate a committee of ten to act with the bank examiner and the directors of the bank in effecting a reorganization. The committee consisted of O. E. Cannon, Fred Bennett, H. L. Braden, F. M. Hobbs and S. F. Gedney. A recess was taken while the committee delibrated and after ten minutes the meeting was again called to order to listen to a motion that ..adjournment be taken until Thursday afternoon to give the committee more time to delibrate. The motion was carried. The adjourned meeting Thursday afternoon lasted but a ifew minutes. The committee of the day before reported their list of ten nominees for the reorganization committee, and on motion of Dr. Hamilton the list was adopted without a discenting vote. The bank examiner, Mr. Lo gan, stated that the committee should be able to call another meeting and report to the depositors within a day or two. The committee selected was composed of the following: Worth S. Lee, stockman; R. W Smith, merchant, Fred Bennett, merchant; O. E. Cannon, accountant; S. F. Gedney, banker, Elko, Nev.; J. W. Morton, merchant; R. R. Osborn, merchant; John F. Gaines, stockman; H. L. Braden, merchant; F. M. Hobbs, county auditor. The committee was summoned to meet immediately with the directors of the bank, and take up their important work of reorganization. The plan proposed for reorganization is broadly, that the stockholders shall surrender their stock and pay in to the bank the face value of the stock in cash, which is their 11ability under the law. That the depositors shall then exchange their deposits for stock to the amount of $100,000, the present capitalization of the bank, or such capitalization as is necessary to take care of the obligations and make the bank safe. This will provide the means of taking up $100,000 of doubtful and worthless paper, and reduce the liabilities of the bank by that much and by $100,000 of present deposits Then the paper taken up would be pooled in a seperate fund and as it is collected the depositors who waive would be either paid off or the former stockholders would be reimbursed. The First National bank was organized in the middle nineties and bought out the Stockgrowers bank about ten years ago, and for a number of years was the only bank in Mountain Home. The Commercial and Savings bank was organized in 1916 and was closed in 1920, since which time there has been but the one bank here. The officers and directors of the First National on the date of its closing, were: Will T Montgomery, president; Ernest Blunk, vice president; A. F. Anderson, cashier; Casper Hein and Worth Montgomery, directors.

2. December 16, 1921 Clearwater Republican Orofino, ID
Article from Clearwater Republican, December 16, 1921

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Article Text

IDAHO NEWS PARAGRAPHS Recent Happenings in This for State Given in Brief Items Busy Readers. D. A. Thomas Stricken. RATHDRUM. A. Thomas, was age well known farmer near here, while 59, stricken with apoplexy three recently working in the woods and died hours later. Burley Bank Fails. BURLEY.-The Commercial business State here failed to open for of Bank December 9, following a meeting the board of directors held before opening the hour. The bank was capitalized at $50,000. Miner Killed in Fight. WALLACE.-Hugh White, a miner Mcand instantly killed James store shot here recently in a cigar the following Kee an argument between and two men. White was arrested locked in jail. Urge Idaho Debate League. UNIVERSITY OF IDAHO, MOS- of cow.-Sentiment for formation Idaho high school debating league Unian been manifested. The the has of Idaho may assume leadership versity in putting such a league in action. Mountain Home Bank Suspends BOISE.- The First National bank Mountain Home suspended Decem- the at withdrawals in convinced the ber bank 7. Heavy directors suspen- that there should be a temporary to sion to protect its assets. Inability made realize on securities and notes liquiit impossible for the bank to date. Orders Big Fire Engine. MOSCOW.-The council has placed order for a combination pumping to an and hose motor car, to add engine the equipment of the fire department. be The price is $12,800. Delivery will made soon. The engine has a pumping capacity of 750 gallons a minute of and is equipped with 1,200 feet hose, ladders, extinguishers, etc. Captain E. W. Baughman Dead LEWISTON. Captain Ephriam W. Baughman, age 86, veteran steamboat reof the northwest, died at Moscow. Captain crossed the plains an man captain cently with in Baugh- 1850. ox team. arriving in California PortThe following year he went to land and soon after began his career as a boatman on the Oregon rivers. Idaho Man on Road Board. OMAHA.-C. M. Babcock, commissioner of highways for Minnesota, was elected president of the American Association of State Highway Officials at the organization's national convention here. D. P. Olson of Idaho was named a member of the board of directors. Resolutions passed include the following: Recommendations for making the federal aid policy on road building a plan for five years in advance in order that state commissions have a chance to function; favormay ing removal of all advertising signs from highways and one recommending the removal of highway work from politics. Baby Girls Burn to Death. BONNERS FERRY.-Dorothy Eve- 8 lyn, age 3, and Esther June age months, daughters of Mr. and Mrs. Darrel Wooden, were burned to at the camp of Idaho Gold and Ruby Mining 25 death K. recently mother company, the here. The had a fire preparatory to She left the girls started dinner. miles from asleep getting and went to the house of a neighbor about 50 feet distant, on an errand. As she started home she saw her house was on fire. The flames and smoke prevented her from entering. The bodies were burned beyond recognition. They were taken to Ephrata, Wash., for burial. The cause of the fire is unknown. ) Settle Big Mine Suit. Litigation between the Federal Minand company company for Star ing Mining Smelting alleged mines and tres- near the on Star ores in the that has since 1917 was ended a pass way Wallace, Idaho, been in Star under suit setmade Friday of the in the at d'Alene, Idaho. tlement for Coeur an accounting federal The settle- court for a $350,000 cash payment and a 90-day to ment to the is Star option claim and the the Iron Crown a of the Grouse at $100,000. y Star portion Federal on The claim Star of $2,429, of com- the pany had sought damages case the trespass was inadand $3,721,796 in by vertant 925 in willful profit aresd pass was proved. The net on g the Star ores was between $120,000 o and $125.00, according to the defense. Farm Bureau Plans Drive StoneMOSCOW Charles B. braker of Independence, Iowa, reprer, the American d was the of senting federation, principal farm speaker bureau at a recent meeting of the repre-

3. December 23, 1921 The Daily Star-Mirror Moscow, ID
Article from The Daily Star-Mirror, December 23, 1921

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Article Text

STATE ASKS CASH LOST IN BANKS MAKES DEMAND ON SURETY COMPANIES FOR $110,400, IN BANKS NOW CLOSED. Demand for $110,400 in state funds held by state depositories which have closed their doors was made Tuesday on six surety companies by B. E. Hyatt, director of the bureau of public accounts, according to the Idaho Statesman. The surety companies which will meet this demand under the terms of the bonding contract are: The National Surety company, the United States Fidelity & Guaranty company, Fidelity & Deposit Company of Maryland Casualty company and the Aetna Casualty & Surety company. Under the terms of all depository bonds the state is entitled to the total deposit of the state when the banking institution suspended business, plus interest at 3 per cent on the daily balances from the date of last interest payment to the date of settlement by the surety company. The suspended national banks and the amount of state money on deposit in each follow: Blaine County National $11,600 a First National, Mountain Home 21,000 5,000 First National, Wendell First National, Burley 8,400 Total $46,000 State banks suspending operations, E with state funds deposited, are: a Union State, Nez Perce $ 8,400 Delco State Bank 3,800 Bellevue Bank & Trust 7,000 13,500 State Bank, Idaho Falls Citizens' State Bank, Buhl 17,500 Commercial State Bank, Burley 14,200 o Total $64,400 Total for state and national banks, p $110,400.

4. December 24, 1921 Mountain Home Republican Mountain Home, ID
Article from Mountain Home Republican, December 24, 1921

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Article Text

PROSPECT LOOKS GOOD FOR OPENING OF FAILED BANK Commitee Representing Depositors Makes Report and Offers Plan to ReFinance Institution. The report of the committee of ter appointed two weeks ago to represent the depositors of the falie First National bank, was given to meeting of depositors at the Weave theatre Thursday afternoon. The report gave figures on the deposit: in 'the bank at the time it close mas eve at 12 o'clock. and recommended that the depositor be required to take stock in the re organized bank in lieu of fifty pe cent of their deposits, and that th remainder be converted into time cer tificates of deposits having threc maturing dates, respectively, six twelve and eighteen months from the date of reopening. The iformal report read as follows To the depositors of the First National Bank of Mountain Home, Idaho We, your committee appointed t prepare plans for the reorganizing and reopening of the bank, beg to report as follows: The committee find bills receiv able to be $876,826.31, of thi. amount $255,671.74 must be elimi nated from the assets, the same being of little value and necessarily b charged off as loss, in order to meet this loss we recommend that the capital stock, surplus and undivider profits aggregating $173,053.07 be charged off and an assessment of $100,000.00 be levied against the present stockholders, and that all outstanding stock be surrendered. In order to provide funds necessary to restore the stock surrendered it will be necessary to resell said stock to supply capital of new bank. To do this, the depositor will be required to take 50% of his deposit in stock of new bank. The deposits of the bank total $348,164.40. Of this amount $100,208,52 are public monies and are secured. Deposits of $100.00 and over aggregate $224,128.52. After deducting 50% for stock subscription above referred to, the dpositor is to be re-imbursed in certificates of deposit without interest, payable up* on the following schedule, to-wit: 10% cash on demand, 20% due in six months, 30% due in twelve months and the balance due in eighteen months. We recommend that the bonding companies now surety for all public monies on deposit be required to continue such depository bonds in force for a period of eighteen months, in the same amounts as they now exist. OrWe recommend that for such accounts as are paid by bonding companies and deposit assigned to them, shall waive payment of 50% of such deposit and schedule of payments apply as outlined for individual depositor.