673. First State Bank (Patagonia, AZ)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
May 4, 1923
Location
Patagonia, Arizona (31.540, -110.756)

Metadata

Model
gpt-5-mini
Short Digest
9708b28d

Response Measures

Full suspension, Books examined

Other: State examiner took charge; receiver later paid depositors in full.

Description

Depositors made a small run in early May 1923; the bank voluntarily suspended operations and the state bank examiner took charge. A receiver (L. A. Bechtol) was appointed and the bank remained in receivership; depositors were later paid in full (100 cents on the dollar) under receiver settlement. I classify this as run -> suspension -> closure (receivership) because the bank did not resume normal operations under its prior management and was handled by a receiver.

Events (4)
1. May 4, 1923 Run
Cause Details
Small run by depositors in early May 1923; no specific misinformation or scandal identified in articles.
Measures
Bank voluntarily closed next morning; state superintendent notified and chief state bank examiner Dodson / A.T. Hammons took charge.
Newspaper Excerpt
The First State Bank of Patagonia ... failed to open its doors yesterday morning, following small run on the bank by depositors Thursday.
Source
newspapers
2. May 5, 1923 Suspension
Cause Details
Voluntary suspension after a run left the bank's legal reserve too low; state examiner took charge and deposits reported secured with Liberty bonds and by assessment on stockholders.
Newspaper Excerpt
the bank did not open its doors for business the fifth and had voluntarily suspended operations. Mr. Hammons at once notified J. S. Dodson, chief bank examiner, who ... took charge of the bank.
Source
newspapers
3. May 19, 1923 Receivership
Newspaper Excerpt
L. A. Bechtol, assistant superintendent of banks, now ex officio receiver of the Patagonia bank; notices to all creditors of the First State Bank of Patagonia ... to present their claims on or before September 1, to L. A. Bechtol, assistant superintendent of banks, now ex officio receiver of the Patagonia bank. (May 19, 1923).
Source
newspapers
4. November 17, 1923 Other
Newspaper Excerpt
Patagonia Bank May Pay 100 Cents On the Dollar. ... through the co-operation of the larger depositors ... voluntary assessment of 100 per cent upon the stockholders ... making it possible for the payment of 100 cents on the dollar to the bank's depositors.
Source
newspapers

Newspaper Articles (10)
1. May 5, 1923 Arizona State Miner Wickenburg, AZ
Article from Arizona State Miner, May 5, 1923

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Article Text

Tucson and Patagonia Banks Close Doors. Two very interesting dispatches by the associated press the past two days announce the closing of the Tucson National bank which closed its doors on May 1st after a heavy run, leaving Henry F. Brower, national bank examiner, who is still in charge. A later dispatch announces the closing of the First State Bank of Patagonia, which voluntarilly closed Friday morning and is in charge of Chief State Bank Examiner Dodson, who reports deposits to extent of $5,500 are secured to the State.

2. May 5, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, May 5, 1923

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Otto Mayer, the well known plumber accompanied by his wife, returned the forepart of the week from an extended automobile trip through Arizona and California. Otto H. Herold, vice president of the First National Bank, Dr. V. A. Smelker and Attorney Charles Hardy are down in the Yaqui River country enjoying a vacation at the rice plantation owned by Messrs. Herold and Smelker. Wednesday A. H. Godsey,fro the Sonoita Elgin district, under bond this county, who has been for some time to appear for hearing on the charge of horsewhipping Major F. L. Putnam, a neighbor, waved preliminary examination, and was bound over to appear before the Superior Court. His trial will come up during the June term of court. Captain James Dunaway, immigration officer stationed at Tubac, was a county seat visitor, Wednesday. Jim is a peace officer of the old school, having for many years been a member of the famous Texas Rangers, in the service of which he re. ceived numerous gun-shot wounds. However, he is still going strong and quick on the draw. C. V. Fowler, secretary of the cotton company now engaged in planting a big acreage to cotton out in the Altar district, near Pitiquito, spent a couple of days in the city this week from the scene of active operations. Jim Daly of Phoenix, is manage of the company, which is financed by California capital. Charley and Jim are live wires, and they will make good. Many Nogales people will motor to the beautiful Northcraft grove near Patagonia tomorrow, to attend the annual picnic of the employees of the Southern Pacific Company. One of the attractions of the day will be the famous Ess Pee band of Tucson. Hundreds of railroad employees, accompanied by their families and friends will be on hand to help make the affair a big success. Wednesday Sheriff Harold J. Brown and Undersheriff Harry Patterson, motored to Tucson with Frank Butler and Manuel Delgado, escaped convicts from the Texas penitentiary, who were recently captured here by local officers. At Tucson the men were turned over to guards from the Texas prison. The rewards for the capture of the convicts, will be paid the officers who made the arrests here. The First State Bank of Pata. gonia, W. P. Capehart, president, failed to open its doors yesterday morning, following small run on the bank by depositors Thursday. The deposits in the bank were about $36,000,said to be guaranteed by the assets and stockholders. The First State Bank had no connection with any of the Nogales banks, The reason for the bank's failure will not be known until the state bank examiner, now in charge. makes his report. President Capehart is ill at his home in Patagonia.

3. May 11, 1923 The Snowflake Herald Snowflake, AZ
Article from The Snowflake Herald, May 11, 1923

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PATAGONIA BANK FAILS TO OPEN ITS DOORS ON FRIDAY Andrew T. Hammons, state superintendent of banks, was notified yesterday morning by the assistant cashier of the First State Bank of Patigonia. Santa Cruz county, that the bank did not open its doors for business the fifth and had voluntarily suspended operations. Mr. Hammons at once notified J. S. Dodson, chief bank examiner. who was working in Wilcox, to proceed to Patigonia and take charge of the bank. Late yesterday afternoon, Mr. Hammons was advised by Mr. Dodson that he had taken charge of the bank. The telegram advising Mr. Hammons of the closing of the bank gave no details. The state has deposits in the bank amouting to $5,000, Wayne Hubbs, state treaeurer, announced yesterday. The deposits, he said, is secured with $5,500 in Liberty bonds filed with him as state treasurer. Mr. Hammons will leave for Patagonia tonight to investigate the matter.

4. May 12, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, May 12, 1923

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DEPOSITORS MAY NOT LOSE 4 Depositors in the First State Bank of Patagonia, which closed its doors the last of the week, may not loss a penny, according to a statement made Sunday night to a Morning Democrat representative by A. T. Ham. mons of Phoenix, state superintendent of banks. "In an effort to arrange so that the depositors may get their money, the state will levy a 100 per cent assessment on the stock. holders of the bank" said Mr. Hammons. This assessment is to be made under the double liability act. It is planned to pay the depositors fifty per cent just as soon as an examination of the affairs of the institution is completed and the other fifty per cent at an early date. Mr. Ham mons said that he reached Patagonia Saturday and that up to Sunday night he had not yet had time to thoroughly look into the condition of the bank. There may be a re-organization of the institution but if it is reopened it will be under new management, according to the bank superintendent. "It was too bad" he said "that the bank had to close just at a time when business conditions were improving in the Patagonia district." Asked why the bank closed, Mr. Hammons replied as follows: "There was a run on the bank and their legal reserve got too low. President W. P. Capehart wired me at Phoenix to come and take charge." It is understood that Frank Wilkey of Nogales, one of the best known and most popular young men of this county, and a man thoroughly experienced in the banking business, will be appointed to handle the affairs of the institution for the state. A better appointment could not be made. It is one that would meet with the approval of all depositors and others interested. --Democrat.

5. May 19, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, May 19, 1923

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Juan Bojorquez, one of Her mosillo's prominent successful business men who owns valua ble property in Nogales, Sonora, is a visitor in the city. Contract will soon be let for a modern building on the site of the build. ings owned by Mr. Bojorquez,ou Elias street in Nogales, Sonora, recently destroyed by fire. Mrs. J. W. Goodman accompanied by her daughter, Miss Zarina Goodman, arrived in the city recently to join her son J. J. Goodman, well known com mission man. The Goodmans, who have resided in Los An. geles many years, will make their home in Nogales, where they own valuable real estate. Andrew T. Hammons, state superintendent of banks, has sent out notices to all creditors of the First State Bank of Pata gonia, which recently closed its doors, to present their claims on or before September 1, to L. A. Bechtol, assistant superintendent of banks, now ex offic receiver of the Patagonia bank. Following a quarrel over who was to have the custody of their six year old daughter, E. B. (Walt) Whitman, of Sonoita, this county, killed his wife, Annabelle, and himself, at 516 North avenue, Tucson, at 3 o'clock last Thursday afternoon, with a razor. The Whitmans formerly resided In Nogales, where they were well known. James Bailey, from the old Bowers ranch near Noria, So nora, has been a business visitor in the city a couple of days this week. While here Mr. Bailey pu chased some new machinery from Roy & Titcomb, Inc., for his pumping plant at the ranch, which he and Col. Fred. Breen of Flagstaff, leased from the late I. E. Bowers. Mrs. Anna B. Ackley. deputy county assessor, has been ap pointed by Mrs. Grace Farrell, county superintendent of schools as a member of the board of trustees of Nogales School Dis trict No. 1,to succeed E. R. Pur dum, resigned. The other trus. tees are Dr. W. F. Chenoweth and J. C. Tovrea, both of whom endorsed Mrs. Ackley. Messrs. Otto H. Herold, Dr. V. A. Smelker and Chas. Hardy, Jr., who recently visited the Herold Smelker rice plantation on the Yaqui river, Sonora, re port having had a fine time. The gentlemen spent several days as guests of A. J. Yaeger, owner of a fine farm and mines near Alamos, where they were royally entertained by Amos who is a prince of hosts. To date nearly 1800 carloads of vegetables from the West Coast of Mexico have entered the United States through the Port of Nogales, since December 15, last, according to F. J. B. Gonzales,. local manager of The International Commission Company, which has offices in Nogales, Sonora; Nogales, Ari zona; Naco, Sonora; Naco, Ari. zona; Nacozari, Mexico City and Douglas, Arizona.

6. July 7, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, July 7, 1923

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Southern Pacific, accompanied by his wife and young son, spent the Fourth in Nogales, from old Tucson. C. F. Holler, Sam Friedman, Steve Merino, J. Aviles and Perry Lundin, local fans, wit nessed the game in Phoenix last Sunday between Phoenix and Nogales. E. L. Segar, former vice president of the Auto Sales and Service Co., has sold his interest in that concern and is now con nected with J. F. Johnson, local Ford dealer. Mr. and Mrs. Robert Howell, accompanied by their daughter, Miss Garnett Howell, have gone to California for the remainder of the summer. They motored to Los Angeles. Acting Governor Borquez of Sonora, has been a Nogales visitor this week from Hermosillo. On September 16th he will turn the governorship over to Governor elect Alejo Bay. John A. McPherson, prominent business man of Guaymas, enjoyed the glorious fourth here with old friends. For, many years he has been American vice consul at the Bay City. Mr. and Mrs. A. F. Van Wye, of Empalme, en route to Los Angeles, where they will spend the several months with their son Theron, were in the city last Monday, a few hours. Mr. and Mrs. Bailey Russell and little danghter, from Doug. las, are enjoying a visit with Mrs. Russell's parents, Mr. and Mrs. Wirt G. Bowman, on beautiful Marsh Heights, this city. Mr. and Mrs. Virgil Cruz of Tucson, were among the out of town visitors here for the big Fourth of July celebration. Mr. Cruz is a nephew of Former Governor Cruz of Oklahoma. Only five speedsters were rounded up and fined on the glorious Fourth. Motor Police man Fred. Kuenzle, is making speed crazy folks mighty hard to catch in Nogales and vicinity. Mr. and Mrs. M. Jamieson have returned from their honey moon trip to Northern Arizona, and Mr. Jamieson is again at his desk in the First National Bank. The trip was made by automobile. On July Fourth a fine baby girl arrived at the home of Mr. and Mrs. J. C. Barnes, in this city. Dr. V. A. Smelker, the attending physician, reports mother and little one doing nicely. Frank Pelier, manager of Hotel Arcadia, Hermosillo, on his way to Los Angeles, wes a visitor in Nogales this week two days. Reported business condi tions in the capital city greatly improved. J. B. Robinson, vice president of the George B. Marsh, Inc. who is installing the payements in Hermosillo, enjoyed the Fourth in Nogales. Reports work progressing in a very satisfactory manner. The Nogales Furniture and Supply Co. of which J. C. Hen nigan is proprietor has moved from the Bowman Hotel build ing to the storeroom on the south of the entrance of the Lyric theater building. There is a movement on foot among stockholders of the First State Bank of Patagonia to or ganize a holding company to take over the assets of the bank on September 1, 1923, and pay a hundred cents on the dollar to depositors. This will be good news to those who have their money tied up in the local institution.-Patagonian. Mr. L. A. Bechtol, deputy superintendent of banks and ex State inofficio Bank of receiver Patagonia, of the wishes First to form the public that papers left cain bank

7. November 17, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, November 17, 1923

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GOOD WORK, MR. BECHTOL. Patagonia Bank May Pay 100 Cents On the Dollar. Through the efforts of L. A. Bechtol, deputy state superin tendent of banks and receiver of the First State Bank of Pata gonia, which closed its doors last May, affairs have taken on some semblance of order and un less something unforeseen takes place within the next few days, depositors will receive 100 cents on the dollar, according to infor mation given the Patagonian this week, says the Patagonian. Receiver Bechtol stated that this happy ending of the bank's affairs is made possible through the co operation of the larger depositors, who will take some of the bank's notes in lieu of cash-notes that are good but which have not been paid to date for various good reasons. Financial assistance was also extended by the Sonora Bank and Trust Company of Nogales, which institution also took over some of the bank's paper. The voluntary assessment of 100 per cent upon the stockholders of the institution also was a big factor in making it possible for the payment of 100 cents on the dollar to the bank's depositors. Mr. Bechtol has worked hard and faithfully to bring about a settlement that would meet the approval of all concerned and, as stated above, unless some thing turns up within the next few days to alter present plans, depositors may expect to receive their money in full. Mr. Bechtol will associate himself with the Sonora Bank and Trust Co. of Nogales about December 1st, it is said. By that time, we hope, bis services will no longer be needed in Pata. gonia as a bank receiver.

8. December 1, 1923 The Border Vidette Nogales, AZ
Article from The Border Vidette, December 1, 1923

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Henry Cohen, proprietor of the Rosario Hotel, Culiacan, was a visitor in the city this week en route to California on a combined business and pleasure trip. Henry is arranging to put on a monster carnival in Guaymas. Under the auspices of the K. of C. Lodge, a home talent, "Marina," Spanish opera, will be presented at the Lyric Theatre, December 6 and 7, the cast including many of the best known residents on both sides of the border. There will be five principals and a chorus, the principals being Miss Elisa Chen oweth, H. M. Ochoa, A. Vera, San Martin and F. Robles. Cattle shipments from the Sonoita district continue, according to reports from that region. Ten carloads of steers were recently shipped from Patagonia to the Los Angeles stock yards. Fol lowing the formation of a CO operative marketing association among the Sonoita Elgin cattle growers, shipments have become steady with indications that sell ing will continue for some time. Mr. and Mrs. John Costello of Patagonia, accompanied by their daughter, Miss Mary, visited friends in Nogales last Wednes day. Mr. Costello was one of the fortunate depositors of the First State Bank of Patagonia, which has just paid 100 cents on the dollar to all depositors of the bank. Much credit is due Receiver L. A. Bechtcl for the splendid manner he has manag ed the bank's business. J. C. Elliot, superintendent of construction of the bandsome new Nogales federal building, has returned from El Paso and Albuquerque. While away he made arrangements to present the "King Tut" show in Albu querque on February 22 and 23, under the auspices of the Albuquerque Knights of Pythias Lodge, and in El Paso for two shows beginning about January 19, under the auspices of the Federal Employes Association. Ralph-Allen recently presented the show in this city under the auspices of the local Knights of Pythias lodge.

9. March 29, 1924 The Border Vidette Nogales, AZ
Article from The Border Vidette, March 29, 1924

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LADIES WORK AT HOME, machine. pleasant, easy sewing time. on Highest possible Whole or prices part paid. For JONES, full information address Ill. L. adv. Box 103, Olney, and Mrs. L. A. Bechtol in Noga- of Mr. were visitors Bechtol is Phoenix. Sunday. Mr. Bank les last of the First State its dereceiver Patagonia, which paid dollar. 100 cents on fine record was of the co operation of This ble positors by defunct made the stock possi- bank. of the of holders Bechtol is also receiver Mayer, the Mr. defunct state bank at Arizona. A. Titcomb, of Roy & go Tit. to E. Inc., is arranging to his comb, of Nayarit, where is erecting a the personal the firm state big Clagett supervision saw mill and under Engineer H. M. of this of Harry J. Karns the big After completing Mr. Mr. Karns city. Senator mill, Clagett leaving will return south in to charge Nogales, of operations in the country. recent meeting of County tax At the Santa Cruz was orTaxpayers' payers Association the follow by electing Bracey President, ing president the Curtis, Bank; Mayor tional first ganized Harrison. officers: vice-president; second First James vice Na. A. A. Smelker. secreDr. V. A. Dumbauld, assistant president; tary, and A, E. Aviles, secretary. Zander. superintendent depart. C. M. Highway of the was a Nogales ment, 10 inspect Little, Saturday, State D. visitor equipment last at Camp Stephen department has which the available war for the state The equip highway made department. of a number of ment consists surplus war material, trucks and which cars, is being-offered free to the state. the regular weekly Rotary lunch- Club, At of the Nogales the foleon held at noon were selected Tuesday, as officers T. G. ensuing year: M. A. vice for lowing Wright, Merritt, the president; president; Dr. J. B. Bris. R. I. Whitfield, treasurer; and Frank SulliHenry treasurer, Damm and van, O. Hardy, B. meeting tol, Leslie C. A. directors. J. Camp the At Tuesday's bell was made a member of Rotary Club. Sam B. Rotge, Red recently Cross field prodirector, who office was of Major, offi has moted to the Huachuca on business. record in the making a and to Cross meu are cial ex gone service to service, Fort fine Major hundreds secure grateful Rotge their com Red of is for aiding them serving pensation him due for late world's war. in the headquartcountry makes his Little, ers at The Major Camp Stephen D. Nogales, Arizona. serfuneral Impressive held Elks' at the Marsh undertaking vices were parlors departure Wednesday of Paul the carrying the for to Ruler R. M. of the of the Seitz Exalted train charge prior to Rushville the services, Ill., body Cousar of burial. being had was No assisted by officers Deceased a and at for gales No. member 385, Elks of lodge. route Tucson the agent time Elks of lodge, the his death was Express company Wells the Fargo West Coast of Mexico. on The military committee reported of the chamber of commerce of the chamber Thursday at the meeting evening, in that their they work are progress for making leases renewed Little camp the of getting D. and for the matter a Camp Stephen on coming the year, of also working camp site. are being it the present site, be moved site permanent as for the leases will not Inasmuch renewed means it that the camp to the Saxon ranch, locat The camp by property ed this is said. on year and Bankerd, owned is Curtis, Charles now Cum- and L. the ming Fowler old and leases Bracey on same expire

10. June 19, 1937 Nogales International Nogales, AZ
Article from Nogales International, June 19, 1937

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Coast Man New Owner Light Plant Through a deal closed recently, the C. B. Wilson Estate sold the Patagonia Ice & Light Plant to C. C. Newman of California, a brotherin-law of Herb McCutchan of Patagonia. Mr. Wilson. who died on June 30, 1925, bought the light plant prior to the closing of the First State Bank of Patagonia on May 23, 1923. Mr. Wilson was one of the oldtimers of the Patagonia district. He started the first hay and grain business there about 40 years ago and used to run big freight outfits with mules in the early days. Later he sold the mules and bought trucks.