591. Arizona Bank & Trust Company (Douglas, AZ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
November 4, 1913
Location
Douglas, Arizona (31.345, -109.545)

Metadata

Model
gpt-5-mini
Short Digest
9081640390fc5b48

Response Measures

None

Description

Articles describe the Arizona Bank & Trust Co. in Douglas being taken under examination, closing its doors pending investigation, declared insolvent by the state auditor, and placed in receivership. There is no mention of a depositor run prior to the suspension; the bank was insolvent due to heavy loans/poor assets and was liquidated by a court-appointed receiver who ultimately paid depositors in full by June 1914. Dates are drawn from newspaper reports (closure in early November 1913; receiver appointed mid-November 1913).

Events (3)
1. November 4, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed for examination after heavy loans reduced reserves below legal limit; state auditor found the institution insolvent following appraisal of assets and liabilities.
Newspaper Excerpt
Nothing definite was given out today regarding the condition of the Arizona Bank & Trust company which closed its doors on Tuesday, pending an investigation.
Source
newspapers
2. November 19, 1913 Receivership
Newspaper Excerpt
W. E. Arnold ... has been appointed receiver for the Arizona Bank and Trust company ... expects to return to Douglas Wednesday and immediately begin making arrangements for reopening the bank for business.
Source
newspapers
3. June 25, 1914 Other
Newspaper Excerpt
ARIZONA BANK & TRUST PAYS DEPOSITS IN FULL ... tomorrow he will pay despositors 50 per cent, which with the 50 per cent already paid; will give every depositor 100 cents on the dollar.
Source
newspapers

Newspaper Articles (13)
1. November 7, 1913 El Paso Herald El Paso, TX
Article from El Paso Herald, November 7, 1913

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Article Text

QUARANTINE FENCE TO BE 22 MILES LONG Will Extend From San Bernardino Ranch Near Douglas, Into New Mexico and Along Border. Douglas, Ariz., Nov. 7.-Dr. G. W. Rosenberger, of the United States bureau of animal industry, has arrived in the city to oversee the construction of a quarantine fence 22 miles in length, from San Bernardino ranch, 16 miles east of here, into New Mexico and along the international border. The fence will consist of three strands of barbed wire strung on iron posts embedded in concrete. Dr. Rosenberger came here from San Diego where he constructed a similar fence along the international border, 75 miles in length, No report will be rendered by state bank examiner, J. C: Callaghan, who is examining the Arizona Bank & Trust company, for another day, he stated today. Mr. Callaghan has only partially concluded the checking of the notes held by the bank. W. E. Arnold, cashier of the Rio Grande Bank & Trust company spent a day here in conference with Mr. Callaghan and the Arizona Bank's officials, concerning claims held by his bank against the local institution. Secretary E. P. Grindell of the Arizona bank states that plans are on foot whereby the stockholders hope to bring in aditional finances and place it in the running as a going institution in a few days. The bank went under the inspection of the examiner voluntarily, Judge Fletcher M. Doan, its president, wiring Callaghan to come here and take charge of it. Heavy loans had caused the institution to fall below the legal limit in its reserve on hand. R. 0. Johnson, formerly justice of the peace in this city, during its "sagebrush days" was elected mayor of Geary, Ind., by a plurality of 1366, on Tuesday, according to a telegram received here. Thomas O'Malley, said to be wanted both in Douglas and Globe on a horse theft charge was arrested in Silver City, N. M., while a horse and buggy, belonging to the Fountain Livery stable of this city, is at Mogollon, N. M. Deputy sheriff Harry Rafferty has gone to Silver City to bring back O'Malley for trial, he having waived extradition.

2. November 9, 1913 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, November 9, 1913

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Article Text

DOUGLAS BANK IS INSOLVENT May Be Re-organized - Auditor Callaghan Issued Statement and Left for Phoenix DOUGLAS, Nov. 8.-Nothing definite was given out today regarding the condition of the Arizona Bank & Trust company which closed its doors on Tuesday, pending an investigation. Auditor J. C. Callaghan and his assistant, J. B. Ormond. have been going carefully over the bank's affairs since Tuesday morning, making appraisement of assets and liabilities, but they concluded that it was not best to make any definite statement of values at this time, owing to a pending effort to reorganize the bank and preferring that the statement be left for announcement by a receiver, who will be appointed by the court in case of failure of reorganization. Auditor Callaghan left on the aft. ernoon train for Phoenix, leaving his assistant, Mr. Ormond, in charge of the bank. Today there were a good many depositors in the bank with their deposit books for verification The statement made by auditor Callaghan today follows: To the Public In view of the fact that the Arizona Bank & Trust company was temporarily taken over thy me for the purpose of examination and report to the attorney-general I can only say that, after examination, I have found the institution to be insolvent and in the absence of reorganization it will be necessary for the court to appoint a receiver to whom I shall relinquish possession. While realizing the anxiety of the depositors as to the liquidation of the bank's affairs, 1 feel that a statement at this time would be premature, as it would necessarily be based upon only a cursory examingtion and appraisement, and there fore should be deferred to the receiver. J. C. CALLAGHAN, State Auditor and Bank Comptroller.

3. November 10, 1913 El Paso Herald El Paso, TX
Article from El Paso Herald, November 10, 1913

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Article Text

DECLARES ARIZONA BANK INSOLVENT Douglas, Ariz., Nov, 10.-The Arizona Bank & Trust company is insolvent, according to a statement furnished by state controler J.C. Callighan for publication in the local newspapers. Mr. Callaghan has gone to Phoenix to report his finding to attorney general Bullard, who will shortly apply to the superior court in this county to appoint a receiver. J. B. Ormond, Mr. Callaghan's deputy, remained here in charge of the institution, pending the arrival of the receiver. Ormond says that there is due the depositors approximately $102,000, while the bank's loans amount to about $112,000 and its realty holdengs to about $10,000 more.

4. November 13, 1913 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, November 13, 1913

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Article Text

RECEIVERSHIP AGREED FOR DOUGLAS BANK DOUGLAS, Nov. 12.-It is now expected that the closing of the Arizona Bank & Trust company in this city will result in a receiver being appointed by Judge Lockwood, of the Superior court, and to file a petition asking for such receiver L. T. Carpenter, assistant attorney general of the state went to Tombstone today. Carpenter and J. B. Ormond, assistant auditor, held a meeting this morning with the directors of the bank, and it was mutually agreed that there was no other course to pursue than to have the bank put in the hands of a receiver for liquidation. Service was accepted of a petition for a receiver that will be presented at Tombstone by Mr. Carpenter. The appointment of a receiver will probably be deferred until after the meeting of the depositors, which was called for tonight. This meeting will be held in the old Masonic hall and it is expected that there will be a large attendance of those interested. Several names have been mentioned in connection with the receivership, among them H. E. Dugan, David Benshimol and J. T. Hood. While the action of the depositors will only be advisory, it is believed that if the depositors agree on a receivership it would have weight with the court when the time came for making selection of the person who will close up the business of the institution. The talk of a reorganization of the bank has about died out, though there is belief that there is a likelihood of an organization of a third bank in Douglas in the future, though there has been nothing of a definite nature in this connection yet developed.

5. November 14, 1913 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, November 14, 1913

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Article Text

112 DEPOSITORS DISCUSS LOSSES Meeting of Depositors of Arizona Bank & Trust Co. Held in Douglas Accomplises No Good DOUGLAS, Nov. 13.-Nothing that could in any way benefit the depositors in the defunct Arizona Bank & Trust company resulted from the meeting of depositors unless it be the information gained from the statement made at the meeting by J. M. Crmjond, assistant state bank examiner. There were present 112 depositors representing nearly $50,000 deposits and for nearly two hours they talked over most every phase of the situation, adjourning without taking any (ormal action whatever. The present status of affairs is that the assistant attorney general has applied to Judge Lockwood for a rece ver, and the se'ection of such an official is entirely in the hands of the court, who may or may not listen to recommendations from interested persons. Since yesterday it has developed that among those who may be appointed receiver is the Rio Grande Valley Bank & Trust company, which has holdings in the bank to the amount of nearly $10,000. J. D. Marshall, formerly cashier of the bank, who is now in California, is also mentioned, and at the meeting yesterday there was a disposition amlong those present to favor him. In the statement made at the meeting by Mr. Ormond it was made known that $115,000 of the $130,000 assets of the bank are represented by loans, not more than 75 per cent of which, be thought could be realized on. Many of the notes are one and two-men Inotes, for long time, and little can be realized on some of them. Mr. Ormond said that about $30,000 of the notes are secured by real estate, It is not known just when Judge Lockwood will name a receiver.

6. November 16, 1913 Tombstone Epitaph Tombstone, AZ
Article from Tombstone Epitaph, November 16, 1913

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Article Text

Nothing Definite Yet Announced A Douglas dispatch says:Nothing definite was given out today regarding the condition of the Arizona Bank & Trust Company, which closed its doors on Tuesday last, pending an investigation. Auditor J C Calleghan and bis assistant, J B Ormond, have been going care fully over the bank's offairs since Tuesday morning, making appraisement of assets and liabilities, but they concluded that it was not beet to make any definite statement of values at this time, owing to a pending effort to reorganize the bank and prefering that the statement be left for announcement by a receiver, who will be appointed by the court in case of failure of reorganization. Auditor Callaghan left on the afternoon train for Phoenix, leaving bis assistant, Mr Ormond, in charge of the bank. Today there were a good many depositors in the bank with their deposit books for verification. The statement made by Auditor Callaghan follows:- :"In view of the fact that the Arizons Bank & Trust company was temporarily taken over by me for the purpose of examination and report to the attorney general, I can only say that, after examination, I have found the institution to be insolvent and in the absence of reorganization it will be recessary for the court to appoint a receiver to whom I shall relinquish possession. "While realizing the anxiety of the d positors as to the liquidation of the bank's affairs, I feel that a s'atement at this time would be premature, as it would necessarily be based upon only a cursory examination and appraisement, and there'ore should be deferred to the receiver. JC CALLAGHAN, State Auditor and Bank Comptroller."

7. November 19, 1913 El Paso Herald El Paso, TX
Article from El Paso Herald, November 19, 1913

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Article Text

EL PASOAN RECEIVER OF DOUGLS BANK W. E. Arnold, Cashier of Rio Grande Valley Company, Will Reopen Arizona Institution. Douglas, Ariz., Nov: 19.-W. E. Arnold, cashier of the Rio Valley Bank and Trust company, of El Paso, who has been appointed receiver for the Arizona Bank and Trust company, of this city, has gone to Tombstone to file his bond. Mr. Arnold expects to return to Douglas Wednesday and immediately begin making arrangements for reopening the bank for business. It is stated by former bank officials that the institution will probably be able to pay a larger precentage than had been anticipated. Winchester Cooley, manager of the Rio Grande Valley Bank and Trust company, said Wednesday that Mr. Arnold would remain in Douglas for about a month to reopen operations of the Arizona bank. The deposits of the bank reached about $115,000, Mr. Cooley said, while its capital stock is $25,000. "Our bank is interested to a small extent in the matter of a loan to the Douglas bank," said Mr. Cooley, "and we succeeded in getting Mr. Arnold named as receiver."

8. November 19, 1913 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, November 19, 1913

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Article Text

Receiver The Arizona Bank & Trust Co., of Douglas, is expected to reopen its doors tomorrow It will do 80 under W. E. Arnold, of the Rio Grande Bank & Trust Co. of El Pase, ap pointed receiver of the Arizona Pank & Trust by Judge Lockwood. Mr. Arnold enters to settle up the affairs of the bank. He has promised an annonncement about Friday of THE program to be followed.

9. November 21, 1913 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, November 21, 1913

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The Arizona Bank & Trust Co., of Douglas has been closed by order of State Auditor Callighan and it is probable that a receiver will be appointed for that institution.

10. January 23, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, January 23, 1914

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DEFUNCT BANK AFFAIRS DOUGLAS-A statement of conditions, including exact assets and their face value, will probably be issued by W. A. Arnold, receiver of the Arizona Bank & Trust company on or before March 1. This is the statement made yesterday by Superrior Judge A., C. Lockwood. It is be lieved that the first dividend will be not less than 30 per cent. Mr. Arnold stated jyesterday that he was not eady. He intimated, however, that his receivership is proceeding with good results, so far as collections are con cerned.

11. May 6, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, May 6, 1914

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PAY OUT TRUST JULY 1. DOUGLAS, May 5.-Receiver W. E. Arnold of the defunct Arizona Bank and Trust Company stated today that he expected to wind up the affairs of the bank by July 1. Throughout yesterday a total of $12,000 was paid to the depositors who were entitled to share in the 50'per cent dividend recently declared by the receiver.

12. June 18, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, June 18, 1914

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Receiver W. E. Arnold of the Arizona Bank & Trust Company of Douglas, has answered that he will offer for sale at 12 o'clock noon on June 24th, the remaining assets of the defunct local institution. All bids must be accompanied by a certified check of ten per cent of the amount bid, while the sale is subject to the con firmation of the Superfior Court.

13. June 26, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, June 26, 1914

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ARIZONA BANK & TRUST PAYS DEPOSITS IN FULL DOUGLAS, June 25.-W. E. Arnold, receiver of the Arizona Bank & Trust Co., announced this afternoon that tomorrow he will pay despositors 50 per cent, which with the 50 per cent already paid; will give every depositor 100 cents on the dollar. Not a person who had any money in the bank will lose one cent.