457. Valley Savings Bank (Little Rock, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
June 20, 1913
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini
Short Digest
31887aeea974d2c6

Response Measures

None

Description

Articles report a depositor run that caused the Valley Savings Bank (of Argenta, Little Rock area) to close and a receiver (George Vaughan) to be appointed June 21, 1913. Receiver later sues directors alleging misconduct and insolvency. Argenta is part of the Little Rock/North Little Rock area; I retain the provided city (Little Rock). Bank called a 'Savings Bank'—treated as state-chartered.

Events (3)
1. June 20, 1913 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositor run tied to bank insolvency and alleged reckless, dishonest dealings by cashier/directors (worthless paper discounted), per later receiver allegations.
Measures
Bank closed its doors; receiver later appointed.
Newspaper Excerpt
receiver appointed ... Valley Savings bank of Argenta, which closed its doors yesterday afternoon following a run by depositors.
Source
newspapers
2. June 21, 1913 Receivership
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. Mr. Vaughan at once started an investigation into the affairs of the bank ... the closed bank was correspondent for the Mechanics American bank of St. Louis ... and the City National Bank of New York. (Tulsa Daily World, June 22, 1913).
Source
newspapers
3. July 1, 1913 Other
Newspaper Excerpt
Receiver sues bank directors ... filed a complaint ... charging directors culpably and intentionally neglected their duties ... resulting in the insolvency and wrecking of said bank, looting and cheating the bank out of a sum over $75,000 ... the complaint states that the bank is indebted to its depositors in the sum of $126,000, or at least, $150,000. (Newport Daily Independent, July 2, 1913).
Source
newspapers

Newspaper Articles (2)
1. June 22, 1913 Tulsa Daily World Tulsa, OK
Article from Tulsa Daily World, June 22, 1913

Click image to open full size in new tab

Article Text

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.

2. July 2, 1913 Newport Daily Independent Newport, AR
Article from Newport Daily Independent, July 2, 1913

Click image to open full size in new tab

Article Text

RECEIVER SUES BANK DIRECTORS For Losses Of Depositors In Valley Savings Bank Failure. Little Rock, July (1.-Charging that W. W. Hurst, Clark Strickland, Fred Schneider, W. Cottor, Adolph Kahn, W. Grove, the Union Trust Company as administrator of the estate of H. H. Julian, directors of the Valley Savings Bank, culpably and intentionally neglected their duties as directors, and that they gave the affairs and business of the bank no attention whatever, but turned it and its business over to the cashier, W. W. Hurst, to be managed and conducted as he pleased, and that Hurst actively aided by Strickland, began a reckless, unwarranted course of dealing with the affairs of said bank, such as discounting for it worthless paper and securities, which resulted in the insolvency and wrecking of said bank, looting and cheating the bank out of a sum over $75,000, the receiver, George Vaughan, on Tuesday afternoon filed a complaint in the Pulaski County Chancery Court, praying that the above named directors be barred from making any sale, disposition or transfer of their property, and $ that the plaintiffs have judgment against them for the sum e of $75,000, or such further sum I as may befound by saidaccountI ing now being carried on to be due. The suit was filed by X. O. : Pindall, Murphy & McHaney, attorneys for the receiver, and caused quite considerable talk in court circles. The complaint states that the bank is indebted to its depositors in the sum of $126,000, or at least, $150,000, and that the plaintiff believes each and all of the directors inS tentionally neglected their duties n as such and that the said indbtedness of the bank accrued 0 during said neglect and by reasS on thereof, and the defendants a are liable for the said indebtness. The petition states further that Hurst, Strickland, Schneider, Cotton, Kahn and Grove will convey their property so as to escape liability, or make it impossible to collect any judgment rendered against them. e