B. H. Schettler (Salt Lake City, UT)

Episode Information

Episode UID
6131313191258
Episode Type
Suspension β†’ Closure
Bank Type
private
Bank ID
613131319 hash
Start Date
October 18, 1904
Location
Salt Lake City, Utah (40.761, -111.891)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
6add6e1301038bbd

Response Measures

None

Description

Receiver appointed Oct 18/19 1904; multiple articles document insolvency and winding up.

Events (2)
1. October 18, 1904 Receivership
Newspaper Excerpt
Having been appointed on the 18th of October last, receiver for B. H. Schettler ... I was empowered to take charge of said bank, and wind up the affairs thereof. (receiver's report filed Dec. 15, 1904).
Source
newspapers
2. October 19, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Longstanding insolvency (receiver alleges about ten years), liabilities exceeded assets leading to suspension.
Newspaper Excerpt
receiver for B. H. Schettler, banker, in the action ... Having been appointed on the 18th of October last, receiver for B. H. Schettler
Source
newspapers

Newspaper Articles (12)
1. December 15, 1904 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, December 15, 1904

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Receiver R. R. Anderson Files His Report with Judge Hall of District Court. TWO HUNDRED DEPOSITORS. In Sums Ranging from Four Cents Up To $5,500 Liabilities Exceed Assets. Receiver R. R. Anderson filed, this morning, with Judge Hall of the Third district court, his report covering the Habilities and assets of B. H. Schettler, the East Temple street banker. Summed up, the report shows total assets at $100,136.84; liabilities, $107,287.36. Accompanying the report, which covers 59 pages, is a letter addressed to the court as follows: "Having been appointed on the 18th of October last,receiver for B. H. Schettler, banker, in the action entitled "The State of Utah, etc., vs. B. H. Schettler,' I herewith report to your honor my findings, which comprise all of the assets, totaling $100,136.84, and the liabilities, totaling $107,287.36, of the bank up to date. You authorized and empowered me to take charge of said bank, and wind up the affairs thereof. I am anxious to do this in a manner that will meet your approval, and would therefore ask your authorization to retain a legal adviser to guide me when necessary, I have already incurred a personal expenditure for reliable legal advice. "I believe that during the next 40 days just sufficient funds can be collected from past due notes receivable to pay off the unsatisfied balance (nearly $4,000) of the Miller judgment, which is drawing 8 per cent interest: and I now ask your permission to make such collections and pay off this lien now encumbering all the bank's real estate, With no surplus left from the notes receivable fund, after paying the Miller judgment, I find that a 10 per cent or even a 5 per cent dividend can never be paid without selling real estate. If you should wish me to sell the real estate, kindly designate the time and method of procedure you desire me to follow." The assets and liabilities in concrete form are as follows:

2. December 17, 1904 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 17, 1904

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DEPOSITORS TO GET TOGETHER Move Is Taken to Probe Schettler Bank Affairs. MEETING WILL BE CALLED SECRETARY OF STATE HAMMOND MAKES EXPLANATION. OLLOWING the publication yesterday morning in The Herald of the true F condition of the assets of the defunct private bank of B. H. Schettler, conferences were held by several of the depositors, who had put from $1,000 to $4,000 each into the bank. for the purpose of outlining some action to be taken by them. The chief mover in getting the depositors together was Andrew Grundfor of 726 West Sixth North street, who had $1,100 in the bank. He said last night that a meeting would be called for next Monday or Tuesday night, at which It is expected all the depositors will be present. The bank's affairs will then be thoroughly discussed and a motion Will be offered to effect a permanent organization for the purpose of taking such steps as may be deemed proper in order to get as much as possible out of the assets of the institution. Some dΓ©clared they would favor prosecuting Schettler. alleging that in their opinion he had received deposits after he became aware that the bank was insolvent. Others were for suing the secretary of state on his bond. claiming that if he had not been derelict in his duty he would not have permitted Schettler to run a private bank without the capital of $50,000 required by the state banking law in a city of the size and class of Salt Lake. But none of these was willing to be put upon record as doing or attempting to do anything until such time as all the depositors, or a majority of them. get together and decide upon some line of action. Hammond Makes Explanation. State Bank Examiner W. J. Beatie was out of the city yesterday, but will return this morning. Secretary of State James T. Hammond was in his office and was asked why he permitted Schettler to continue running his private bank without the $50,000 capital he should have had. He said: "Soon after I went into office I made a verbal request of Schettler to comply with the state banking law, SO far as capitalizing his bank and making the required reports were concerned. He refused. contending that as his bank was in existence in territorial days, before the state law was passed or could be passed, he was not bound by it. He claimed that the law could not be made retroactive. I spoke to him again about it, but he still refused. In 1898 he began making quarterly reports of the condition of his bank, and has made those reports regularly ever since. "None of the statements showed him to be insolvent. but a few weeks before he was closed up I began to see that his capital was becoming impaired. The item of current expenses and taxes paid kept growing unreasonably. and I decided that he ought not to be allowed to continue in business. Schettler Made Promises. "I called his attention to his financial weakness and he agreed to sell some real estate not included in the bank's assets and with the proceeds to reinstate the bank's capital. "I want to-say that there is no provision in the laws of Utah for the examination of private banks. and consequently what I did in the matter of insisting that Schettler put more money into his business or close up was of my own motion and for the protection of the depositors. My action was based upon his last quarterly report. "There are only five other private banks in Utah, and they each have the full capitalization required by the state law for such banks in towns of the size of those in which they are located. One of these banks is in Salt Lake. two are in Box Elder county. at Brigham and Corinne: one at American Fork and one at Richfield."

3. January 8, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, January 8, 1905

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CREDITORS MAY ASK STATE AID Schettler Depositors Plan to Petition Legislature. TOTAL SHORTAGE IS $70,000 RECEIVER CHARGES INSOLVENCY OF TEN YEARS' STANDING The state legislature will probably be called upon by petition at this session to make some provision toward satisfying the final indebtedness of the defunct Schettler bank in case Receiver R. R. Anderson's three suits against B. H. Schettler and his three wives to recover $36,000 worth of property are successful. Present plans are to present urgent arguments to the legislative body showing that while the 200 creditors do not hold the state responsible for their loss they feel that their interests might have been better protected had the statutes been enforced and that their present plight demands state aid. This proposition and the filing of three amended complaints by Receiver R. R. Anderson against Schettler and his wives, and the failure of Schettler to accept David Hirschi's offer of $50.000 for the property involved in the suits are the latest features in the case. As yet, arrangements to petition the legislature for relief are not complete. The creditors have been quietly discussing the advisability of such course, however, and are agreed that the step would be a wise one. No public announcement regarding the proposition has been made. Amended Compl aint Filed. The second feature, the filing of the amended complaints by Receiver Anderson, is important, as in the amended complaints are given flor the first time figures which the depositors have been anxiously seeking for some time. These relate to the total cash market value of all Schettler's possessions which may be listed as securities of the bank, to his total liabilities and the gross deficit. Of the third feature the failure of Schettler to accept the liberal terms of David Hirschi, representing about fifty depositors of "Dixie," there is little but the bare statement of the Schettler family that "no negotiations are being considered." Mrs. Mary Morgan Schettler stated last night in the absence of her husband. that he was not conferring with Hirschi and that nothing could be said of the proposed sale of the Schettler properties to Hirschi for $50,000. Details of Amendment. The three amendments to the three suits fixed by Receiver R. R. Anderson against Mary Morgan Schettler and B. H. Schettler. as co-defen dants; against Elizabeth Parry Schettler and B. H. Schettler, as co-defendants; and against Peters Schettler and B. H. Schettler, as co-defendaats, all seek to emphasize the allegation that for the past ten years B. H. Schettler has been insolvent. In the second section of the amended cemplaint against Mary Morgan Schettler and her husband is found the charge "that said defendant, B. H. Schettler, was on the 10th day of February. 1892. a private banker. and, as such banker. owned and conducted a private bank in the City of Salt Lake and from thence until the 19th day of October 1904, and that he has been insolvent for as much as ten years preceding the cominencement of this suit.' Receiver Anderson states in the third section of the first amended complaint that he took possession "of all propcrty choses in action, and effects of Π‘. H. Schettler, as said private banker. so far as receiver was able to identify and discover the same," the cash market value of said possessions being today about $37,000. This section cites "that all of this is in the possession of the plaintiff (Receiver Anderson), and that all has been embraced in the first report to the court, filed Dec. 15, 1904." The indebtedness, the above-quoted section relates. totals $107,000. Total Deficit Is $70,000. In the fourth section of the first amended complaint the receiver says that "all property is now and will be insufficient to satisfy or pay the indebtedness of said B. H. Schettler. as such private banker, by a large sum of money. to-wit. $70,000 In section five of the first amended complaint are found allegations regarding the tardy recording of the deed by which Schettler transferred the Brigham and C street property to his wife, and his reason for so deferring the filing of the deed. This section, in part, charges: "That Aug. 21, 1883, B. H. Schettler made and signed a deed to his wife, Mary Morgan Schettler. which purp orted to transfer to her the follow ing real estate * 100 square rods" on the northwest corner of Brigham and C streets, facing Brigham. This section charges Schettler with retaining the deed in his possession until May 26, 1904, when it was filed with the recorder. The deed was not delivered until the day it was recorded. No consideration, according to the complaint, passed from Mary Morgan Schettler to B. H. Schettler, although the sum of $1 is mentioned in the deed transfer. The dollar, the complaint cites, was simply colorable and did not constitute a consideration in fact. Specific Charge Against Banker. The compiaint further alleges that the control and possession of the prop erty were retained by Schettler "in order that it might appear that said property belonged to him." and was behind the bank. The effect of not placing the deed on record, cites this section, enabled B. H. Schettler to retain the confidence of his depositors and creditors doing business with him, "and they relied on his being the owner of said real estate and thus gave him credit. The complaint goes on to charge Schettler with having paid taxes and assessments on the property concerned and with having held title from April 4. 1867. (the date of President Brigham Young's deed to B. H. Schettler), until May 26, 1904.0 when the deed in favor of Mrs. Schettler was recorded.

4. January 17, 1905 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, January 17, 1905

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GETS HER MONEY. Schettler Creditor Given $1,000 on an Old Judgment for Debt. Receiver R. R. Anderson yesterday afternoon paid to the attorneys of Mrs. Elizabeth Livingston $1,000, to apply on a judgment obtained against exbanker B. H. Schettler last September. This judgment is secured by a lien on certain real estate, and when the balance of the judgment, amounting to $2,000, is paid, the property will be released and sold and a dividend to the creditors declared. A. meeting of Schettler's creditors will be held this evening, and the indications are that the session will be a lively one.

5. January 31, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, January 31, 1905

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OFFER TO TAKE FIFTY PER CENT Schettler Creditors Conclude Half a Loaf Better Than None. PLAN UNDER DISCUSSION DEPOSITORS OF THE DEFUNCT BANK WILL MEET TONIGHT. PROPOSITION was made yesterday afternoon by several of the creditors A of B. H. Schettler, the defunct banker, to his counsel. former Senator Joseph L. Rawlins, to settle all claims on a basis of 50 cents on the dollar. Senator Rawlins admitted last evening that he had heard of such a proposal, but he was not prepared to give any of the details. He added laughingly that such a proposition would no doubt be agreeable providing there was enough property in sight to realize a sum sufficiently large to liquidate all claims on a basis of 50 cents on the dollar. From other sources it was learned that several of the creditors, principally depositors, had called on Mr. Schettler and informed him that they were willing to drop all prosecutions, and would get the other creditors to make a similar agreement providing that he would mortgage all his property for $50,000 and turn the proceeds over to the receiver, R. R. Anderson, for distribution. Mr. Schettler is said to have replied that he could not entertain the plan without first consulting his lawyer, Senator Rawlins. and he advised the committee to submit their proposition to him. At the Schettler home on Brigham street last evening Mr. Schettler had retired, but one of his sons said it was true that some of the creditors had offered to make terms. but further than that, he said, the family was not prepared to make any statement.

6. February 5, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, February 5, 1905

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# Court Notes. Judge Morse yesterday granted Robert B. Quay a divorce from Amy Belle Quay by default, on the ground of desertion. They were married at Denver Sept. 10, 1891, and she left him Dec. 20, 1896, to return no more. The hearing of the case of Mrs. William T. Hooley of Murray, charged with insanity, was continued yesterday by Judge Armstrong without date. She is in the custody of the sheriff, and is alleged to be so violent in her demeanor that it is necessary to restrain her. Christian Rodas, a former resident of Finland, was made a citizen of the United States by Judge Morse in the district court yesterday. Receiver Robert R. Anderson of the defunct private bank of B. H. Schettler, was yesterday granted permission by Judge Morse to amend his complaint in suit brought by him against Ernest F. Schettler and others upon behalf of the creditors of the bank. The charge of embezzlement against D. A. Markell was dismissed yesterday in Judge Armstrong's division of the district court, upon condition that Markell pay the costs. The suit of the Highland Boy Consolidated Mining company against the Minnie Mining & Milling company, in which it was sought to determine title to the Minnie mining lode in the West Mountain district, was dismissed yesterday at plaintiff's cost. In the probate division of the district court yesterday Judge Armstrong made an order of final settlement of the estate of Lucy Decker Young, deceased. Henry F. Heath was appointed administrator of the estate of Clara F. Heath Skinner, deceased, in bond of $1,500. George H. Barrows was appointed administrator of the estate of Edward Barrows, deceased, his bond being fixed at $4,000. Heber M. Wells was appointed guardian of Heber D. and Mary Beatie Wells, minors, in bond of $1,000 in each case.

7. February 19, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, February 19, 1905

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# BANK RECEIVER # FILES ACCOUNT R. R. Anderson Gives Receipts and Expenditures in Schettler Case. # ARGUMENTS ARE DEFERRED FINAL SETTLEMENT OF J. R. WALKER ESTATE. R. R. Anderson, receiver of the defunct private bank of B. H. Schettler, yesterday filed a statement of his receipts and disbursements in Judge Morse's division of the district court, and C. S. Buckwalter was appointed referee to audit and report upon the accounts contained in the statement. The receipts from Oct. 19, 1904, the date of Mr. Anderson's appointment, to Jan. 1, 1905, were $2,487.69, and the disbursements $2,081.84, leaving a balance on the last date of $405.85. From Dec. 31, 1904, to Feb. 18, 1905, the receipts, including the balance of $405.85, amounted to $3,408.98, and the expenditures to $2,940.47, leaving a balance of $468.51. Arguments on the demurrers of the son and wives of Schettler to the allegations of Receiver Anderson's petitions in his suits to dispossess them of real estate alleged to have been deeded away by Schettler to prevent it from being taken possession of as part of the assets of the bank, were passed by Judge Morse indefinitely, together with other matters pending before him.

8. March 8, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, March 8, 1905

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# SCHETTLER CASE FEES Judge Armstrong Grants $555 to Receiver R. R. Anderson and $500 to Zane & Stringfellow. The report of R. R. Anderson, receiver of the defunct private bank of B. H. Schettler, filed in the office of the clerk of the district court three weeks ago, was approved yesterday by Judge Armstrong. Mr. Anderson presented a bill for $555 for his services from October 19, 1904, the date on which he qualified as receiver, and March 7, 1905, at the rate of $5 a day. He also asked that Zane & Stringfellow be paid $500, of which $200 was for regular attorney's fees and $300 for filing suits against Mary Morgan Schettler and others to set aside deeds to property made to them by B. H. Schettler. These claims were allowed.

9. March 21, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, March 21, 1905

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MARSHALL IS TO DECIDE. Receiver R. R. Anderson of Schettler's Estate Will Confer With Him Today. A conference will be held at 11 o'clock this morning between Judge John A. Marshall of the United States court, Judge C. S. Zane and Receiver R. R. Anderson in regard to the propriety of turning over the books and accounts of B. H. Schettler, the defunct banker, to Referee in Bankruptcy Charles Baldwin. Mr. Baldwin served an order on Mr. Anderson Saturday, in which he made a demand for the books and accounts, but the receiver, who is under $125,000 bonds, acting on the advice of his counsel, Judge Zane, refused to comply with the order, for the reason that his appointment came through Judge C. W. Morse of the Third district court, and he believed it would be an act of disrespect to Judge Morse to turn over the books without his official sanction. It was thought last evening that the matter would be settled amicably at this morning's conference. It was stated yesterday that the trial of B. H. Schettler, on the criminal charge made by Mrs. Tillie Sutherland would begin Tuesday, March 28.

10. June 30, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, June 30, 1905

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# SCHETTLER SAYS # "NOT GUILTY" Former Banker Pleads Innocence on Two Informations. # OTHER CASES CONSIDERED # DEPUTY SHERIFF CHIDESTER'S # ASSAILANT GIVES BAIL. B. H. Schettler, the private banker who suspended business last October, owing his depositors close to $100,000, with assets of about half that amount, appeared in the criminal division of the district court yesterday to plead to two informations charging him with receiving deposits knowing his bank to be insolvent. Schettler was not accompanied by his attorneys, and when his name was called he stood before the bar of the court and listened attentively to the reading of the charges against him. He then entered pleas of not guilty and furnished bail for his appearance in court when wanted for trial. It is not likely that either of the cases against Schettler will be brought to trial before the September term of the court. Mrs. M. I. Douglass, charged with assaulting Mrs. Lottie Martin with a deadly weapon with intent to kill her, was arraigned and entered a plea of not guilty. She also furnished bail. Thomas Laughney entered pleas of not guilty to three charges of embezzlement, and Stephen Leatham entered a plea of not guilty to a charge of burglary. Frank Devic, one of the Austrians charged with assaulting and wounding Deputy Sheriff Lafayette Chidester last March, during a row at Bingham Junction, was arraigned on two charges of assault with a deadly weapon with intent to kill, and pleaded not guilty to both. He gave bail in the sum of $500 on each charge.

11. February 19, 1906 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, February 19, 1906

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MEETING OF CREDITORS. About 35 of Them Considered Matters Pertaining to Schettler Affairs. Creditors of ex-Banker B. H. Schettler, to the number of about 35, met this morning at the office of Commissioner in Bankruptcy Baldwin, and considered several matters pertaining to affairs in which they are interested. First, the sale of 5x10 on A and Fourth streets, for the sum of $3,025. was approved. The receiver was authorized to sell a certain parcel of land situate In Plat C, for $500, of which amount $25 will be paid as the commisgion to the seller. A dry farm in Sanpete county, containing some 300 acres, was voted to be sold for $950. Peter Hanson bought for $47 five shares of stock in the Twentieth Ward Co-op, the said stock formerly belonged to Mr. Schettler. An agent of the Tuttle Brothers & Woolley firm made an offer, on behalf of W. W. Carlisle, of $20,000 for the Schettier home on East South Temple street. There is an arreas of taxes and other claims against the property, and it was decided to al. low the bidder until March 1 to agree to pay $20,000 net for the premises, the receiver holding the right to reject said bid, provided a greater sum shall be offered for the place. The next meeting of creditors will be on March 6.

12. March 6, 1906 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, March 6, 1906

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CREDITORS MEETING. Divident of 2 1/2 Per Cent Declared--Offer for Schettler Home Withdrawn. About twenty creditors of the B. H. Schettler defunct bank met this morning at the office of Commissioner in Bankruptcy Baldwin, at which time a dividend of two and a half per cent was declared in fayor of the persons interested. This brings the total realized by the creditors to ten and a half per cent, eight per cent having previously been paid. The dividend declared today will be pavable at the office of Receiver G. B. Blakely within the course of a week. The offer of $21,000 for the Schettler home on east South Temple street, which was made some time ago by California parties through a local real estate firm, has been withdrawn. It is thought that higher bids will be received in the near future on the property mentioned, and It is from this source that the creditors expect to retrieve the greater portion of the unpaid balance of their investments.