493. 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
aa2aff9b

Response Measures

Full suspension

Other: Receiver promptly appointed and later sued directors for misconduct leading to insolvency.

Description

Articles report a depositor run that caused the bank to close and a receiver (George Vaughan) was appointed June 21, 1913. The receiver later sued directors alleging insolvency, reckless discounting and looting, supporting a bank-specific adverse cause. The bank is described as closed and in receivership (permanent closure). The bank is called Valley Savings bank of Argenta in the article (Argenta is a Little Rock/North Little Rock neighborhood).

Events (3)
1. June 20, 1913 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors ran on the bank leading to closure; later allegations of insolvency, reckless discounting of worthless paper and looting by management.
Measures
Bank closed its doors; receiver appointed the next day.
Newspaper Excerpt
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 ... Mr. Vaughan at once started an investigation into the affairs of the bank ... Receiver sues bank directors ... praying that the above named directors be barred ... 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 intentionally neglected their duties ... looting and cheating the bank out of a sum over $75,000, the receiver ... filed a complaint ... seeking judgment for $75,000 or more.
Source
newspapers
3. June 21, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was declared insolvent by a stockholder; receiver appointed; later litigation alleges directors and cashier caused insolvency through reckless dealings and looting leading to failure and indebtedness to depositors (estimates $126,000-$150,000).
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 (2)
1. June 22, 1913 Tulsa Daily World Tulsa, OK
Article from Tulsa Daily World, June 22, 1913

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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

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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