705. Prescott State Bank (Prescott, AZ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 25, 1925
Location
Prescott, Arizona (34.540, -112.469)

Metadata

Model
gpt-5-mini
Short Digest
337fd496

Response Measures

None

Description

The Prescott State Bank failed to open its doors on November 25 (reported in 1926 newspapers — closure inferred as 1925-11-25). The institution was placed in receivership (Homer R. Wood) and remained closed; later litigation and dividend distributions under receivership are described. No contemporaneous bank run is described in the articles — failure appears driven by insolvency/bank-specific losses.

Events (2)
1. November 25, 1925 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent with large losses; failed to open on Nov. 25 and was closed by state banking authorities/receiver.
Newspaper Excerpt
Prescott State Bank, which failed to open its doors on November 25, faces a loss of $633,113.74
Source
newspapers
2. November 26, 1925 Receivership
Newspaper Excerpt
Receiver Homer R. Wood ... took the stand ... his petition for the collection of their liability against the stockholders in the institution was heard and granted. ... ex-officio receiver for the defunct Prescott State bank, was filed ... by Homer R. Wood, ex-officio receiver of the Prescott bank, filed a demurrer and answer ... (multiple articles referring to Homer R. Wood as receiver).
Source
newspapers

Newspaper Articles (14)
1. February 19, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, February 19, 1926

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Prescott Bank To Show Heavy Loss PRESCOTT-The Prescott State Bank, which failed to open its doors on November 25, faces a loss of $633,113.74, this figure being the most optimistic that possibly could be given, according to Receiver Homer R. Wood, who took the stand in the superior court this morning when his petition for the collection of their liability against the stockholders in the institution was heard and granted. This figure, according to A. T. Hammons, state superintendent of banks, is far too low and the loss which the depositors in the defunct bank faces will be approximately one million dollars. It is expected that the first dividend will be paid the depositors shortly after May 1.

2. March 26, 1926 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, March 26, 1926

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ANOTHER BANDIT OUTRAGE OCCURS IN OLD MEXICO FIELDS MEXICO CITY, March 25 Masked bandits are said to have made an attack upon American mining men near Asarco, in the state of Durango, according to dispatch to E1 Universal from Torreon. The dispatch says six bandits Wednesday evening attacked Source of Maljamar D. Weaver, Jr., Emil Kreglan and Morris, Americans, and Wildcat's Oil To Be Adolph Matz, German, all minDetermined By Casing ers, most of them connected with the American Smelting and Re- gauge taken on the Maljamar fining Mr. Weaver company. Oil and Gas corporation No president of an cat, in Lea county, on the Baish development company. permit in the NE section 21showed the well to be making 14,000,000 feet of gas and ARIZONA ATTACHES THE spraying considerable oil. PRIVATE PROPERTY OF Many geologists are of the opin BANK ion that this oil coming from HEAD OF FAILED the pay found at 2,334 feet. This be definitely settled when the March crew has completed the running state banking department 3,000 feet of eight and quarter Thursday brought suit against R. inch casing. The tools in this well N. Fredericks, former president of were not biown from the hole, the Prescott State bank, for the reported, control head having collection of alleged to be been installed and the well having due as statutory liability for 289 been under control at all times. shares of stock in the defunct inFlynn Welch stitution. The bank's and cleaning out their No. R. Wood. attached all the Homer 39 in section 21-18-28, which was real estate held by Fredericks with shot from 2,110 to 2,135 feet. the exception of one parcel, on When this work is completed the which he filed homestead exwell will carried down deep and garnisheed 7,000 emption, test. In the same section this shares of stock in local concerns. company has good well in its said, will be Similar suits, was Keyes, which was shot from brought to collect the liability for 2,160 feet. of stock in the Com160 shares The Dome Oil company in drilland Savings bank mercial Trust ing in its No. in section shares in the Bank of and the sand being found at feet. which Fredericks also rome, of The Frontier Petroleum comwas president. pany is shooting its No. on the McQuigg Brothers lease in section MIRACLES ACCEPTED 5-18-28, the sand having been countered from 2,275 to 2,307 feet. BY MODERN This is one of the best pieces of PIUS DECLARES property in the north extension. POPE good well was completed by the Twin Lakes Oil company in ROME. March section in their No. science confirms the ality of miracles. Pope Plus State Land Commissioner Ed declared in speech the Swope and were interested Hall of the Consistory Thurs- spectators to the shooting of this well. day after reading decree

3. April 2, 1926 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, April 2, 1926

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LIABILITY STOCKHOLDER PAYS ON HIS STOCK One of the most substantial payments yet received on stockholders' accounts in the defunct Prescott State bank and Bank of Jerome, was made when T. G. Norris placed $12,500 in the hands of the receiver and arranged to add a further sum on May 1 that would wipe out his obligations arising from ownership of stock. Quite a number now have made remittances of the amounts recoverable on stockholders' accounts, but in some remaining cases, the decision of the court in a lawsuit will be necessary to exact the law's requirements. It is indicated that the principle of stockholder liability will be carried clear to the supreme court in an effort to overthrow the law as it is sought to be applied to the Prescott group of banks, on the theory that institutions chartered before the statute was enacted and even before the state constitution under which the law was passed cannot be held in the same class with later banks. It is to hold property in statu quo until these provisions can be determined that the receiver this week filed suit and attached real and personal property of R. N. Fredericks, president and principal stockholder in the Prescott State and the Bank of Jerome.

4. April 9, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, April 9, 1926

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PAGE SEVEN being the intention of the banking department, in control of the closed institution ,to fight the city's demand. The services of attorneys representing several of the larger depositors in the bank have been tendered the bank's counsel in opposing the petition and the issue is expected to be bitterly contested, it was stated by Judge John J. Ellis, representing the receiver. Depositor-taxpayers stand to lose, which ever way the court rules, it is declared the dividend to depositors to suffer a tremendous cut should the city be granted its petition, while the property owners will find their 1927 taxes raised considerable, if the petition is denied. An additional petition for the payment of $18,991, as a preferred claim, was filed against the Prescott State bank by the Sawyer Otondo Sheep company.

5. May 7, 1926 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, May 7, 1926

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$34,000 BONDS GIVEN TO STATE Thirty-four thousand dollars in registered Liberty bonds pledged by the Prescott State bank to secure state money deposited in the defunct institution, were assigned to State Treasurer Vernon S. Wright in an order entered by Judge Richard Lamson of the superior court. Two petitions were filed by the state showing that the transfer of the bonds making good the deposits of the state at the time the institution closed were not acceptable to the United States treasury when the bonds were registered in the name of the bank. Judge Lamson's order, however, gave the receiver of the bank the power to make such assignment as is necessary so that the bonds will meet the government requirements by conversion into negotiable coupon bonds of the same denominations.

6. June 4, 1926 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, June 4, 1926

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PRESCOTT BANK WILL PAY FIRST DIVIDEND Approximately half a million dollars will be divided within the next few days among the 4,269 depositors in the three defunct banks of Yavapai county, according to orders entered in both divisions of the county superior court Wednesday morning when the petitions for permission to pay the dividends were presented by Homer R. Wood, ex-officio receiver for the three banks, through his attorneys. The largest dividend, which will reach a minimum of twenty-five cents on the dollar, will be paid in the Commercial Trust and Savings bank, while the Bank of Jerome will pay about a 20 per cent dividend. The Prescott State bank will pay only a trifle more than 15 cents.

7. August 13, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, August 13, 1926

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Sheep Raisers Ask Extension in Notes PRESCOTT - Petitions seeking an extension of time on and alterations of the notes due the Prescott State bank and the Commercial Trust and Savings Bank. both defunct, from the Aubrey Land and Livestock company, were filed in the superior court this week by Homer R. Wood, ex-officio receiver for the two closed institutions. The company, which is owned by A. A. "Tony" Johns and J. A. Trenberth, is indebted to the two banks as a company and by the individual owners for approximately $275,000. secured by stock of the company. The extension and suggested alteration of the terms of the mortgages held by the bank would tend to increase the value of the notes, the petitions set forth, and would make it possible for the company to include other assets which would more definitely insure the ultimate payment of the entire indebtedness.

8. August 20, 1926 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, August 20, 1926

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Hires root beer in bottles for spring fever. clean. cool, comfortable and cosy A place to -Commercial Cafe. 1c The Art Shop is putting on a tf sale of records. Dr. and Mrs. Campbell of Tuba City were in.town Wednesday. Mrs. Marion Fix of Pittman Valley was in town Tuesday on business. Furnish your home on our easy payment plan. Flagstaff Furniture Co. Warren McArthur came up from Phoenix Friday to spend the week-end with his family. For greasing and cranking service See get Ray's personal attention. Ray and Tex. and Mary Rodriguez of Sophia Fe, arrived Monday evening Mary to Santa spend a week with Paul and Rodriguez. Mrs. Harry A. Drachman and arrived son, Cowen Drachman, of Tucson, Lake Sunday to spend ten days at Mary. Peacock footwear lends added poise reassuring comfort in being at and properly a shod. See the new styles Babbitts. and Mrs. S. A. Wheeler two of Mr. arrived Sunday to spend Mrs. weeks Denver as guests of Mr. and Frank Randall. Carol DeFevre of Phoenix few arMiss Monday evening to spend a of weeks rived in Flagstaff as the guest Miss Lucile Koch. Your time is up tomorrow night. the special reduced August withThen clearance sale prices will be drawn.- Gassman. Baggage and express transfer, or household goods packed, stored shipped. Every facility for trucking. 165 or Lightning Delivery. Phone 232J. haven't already done so, you If you to register for the primary are urged County recorder's registra- on tion election. votes close for the primaries August 27. article in the furniture depart- 10 Any may be purchased by paying in ment cent down and the balance ten per monthly payments. Babbitt Bros. furniture department. Grace Wenzel Chesser, who Mrs. summer school at Flagstaff her attended Teachers college and visited leave mother, Mrs. Katie Bean, will and tomorrow for a visit in Gallup will go to her home at Tornillo, Tex., then where she is to teach again. Miss Rosa Bouton returned Friday sevfrom her trip east. She was gone minenteen days and says that every ute was full of interesting events. in They spent most of their time Washington and Philadelphia. The Pythian Sisters held their regular meeting Friday evening at Odd Fellows hall. Refreshments were served following the business meeting enand a pleasant social hour was joyed The by Chamber all. of Commerce has received an interesting pamphlet on the Hopi snake dance, gotten out by the Santa Fe railroad. It is for general distribution. The pamphlet covers the many features of the dance. a Wilbur Cogshall left Tuesday for short trip to Grand Canyon and then will return to his home. He has been visiting his parents, Dr. and Mrs. the Cogshall, who have been spending summer on Observatory hill. Mrs. Thomas Purcell and Helen Louise Purcell of New York arrived the first of the week to visit Edward Purcell, who is here for the summer as an instructor at the Evan's school for boys. Mr. and Mrs. H. B. Wilkenson visited here for three days this week. They have gone to Iron Springs, where they will remain for a few weeks before returning to their home in Phoenix. Mrs. Hugh Campbell, Mrs. C. W. Barney of Northampton, Mass., Miss Mr. Catherine Baxter of Omaha, and and Mrs. Frank Carow of Phoenix had motored to Oak Creek Friday and luncheon at Oak Creek lodge. Miss Lucile Koch was a charming hostess at an informal picnic at Lake Mary last Sunday evening. The picnic was complimenting Miss June Charlebois, who has returned to Flagstaff for a short visit. Homer Wood of Prescott, former state senator from Yavapai county and at present receiver of the defunct Prescott State bank, was in Flagstaff Saturday on one of his quarter-century visits. The prairie dog crew has moved from Hart's Prairie and Fort Valley, fhere they destroyed most of the rodents, to Black Bill park. The crew expects to stay there until they have completely exterminated the pests in that region. Mrs. E. M. Hiler and her little son, Richard, of Buffalo, N. Y., and Miss Faith Longfellow of California are W. visiting their mother, Mrs. P. Longfellow. They are planning many at trips and spent last week-end Grand Canyon. J. R. Eakin, superintendent of the Grand Canyon National park accomMrs. Eakin and her sister, Saffell and little panied Mrs. J. P. by daughter in Flagof Washington, D. C., were having made a tour the staff around Tuesday, Flagstaff showing eastern visitors scenes of interest. Mr. and Mrs. W. D. Draine, Mrs.

9. August 27, 1926 Tucson Citizen Tucson, AZ
Article from Tucson Citizen, August 27, 1926

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JONES SITTING FOR LAMSON IN PRESCOTT SUIT The trial of the suit brought by the city of Prescott against the state banking department and the defunct Prescott State bank for the allowance of its total deposit of under the status of a trust fund and in preference to the great bulk of general claims was begun in the su perior court this morning before Judge Gerald Jones of Pima county. sitting in division two in place of Judge Richard Lamson, who was disqualified. The amount sought as preference represents the deposits in the defunct bank of the city treasurer, R. N. Fredericks who was president of the bank In question, the city asses sor and the superintendent of city streets. whose deposits were not se. cured and which were. according to the city attorney illegal In resisting city's claim. the attorneys for the bank receiver are assisted by counsel representing individual corporation and depositors committees Intervenors, who allege the city' deposit had the same status as that of other and should be allowed as general claim. Pend. ing decision In the matter, the city has not participated in the payment of two dividends totalling 25 per paid by the insolvent institution

10. September 3, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, September 3, 1926

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their home offices; and if they were, the idea would not appeal to the people of Arizona . Neither the stockholders, borrowers, nor depositors in our banks would care to have them run from some insurance company office in New York. This experiment and similar ones have been tried out and abandoned by other states. They won't work. No scheme of bank guaranty or depositors insurance can be a substitute for proper bank supervision and law enforcement. Such ideas are no more sound or practical than it would be to do away with policemen and peace officers, and require people to take out accident glary insurance as a substitute, or to do away with traffic officers and require peopl eto take out accident insurance as a substitute. What is needed is prevention; not cure. Not more laws, but enforcement of the present laws. Ellinwood has the experience and the training necessary for installing and operating a state banking department which will prevent banks from getting into an unsound condition. He is the only candidate for Governor who has that experience and training. E. A. SAWYER, A loser to the extent of about $30,000.00 in the Prescott State Bank failure.

11. November 12, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, November 12, 1926

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BANK SUED BY MASONIC LODGE PRESCOTT-A suit for the preferential payment of $27,256.64 against A. T. Hammons, state sup erintendent of banks and receiver of the defunct Prescott State bank, was filed in the superior court by the trustees of the grand lodge of Masons of Arizona through the law firm of Armstrong, Lewis and Kramer of Phoenix. The lodge, according to the complaint, appointed R. N. Fredericks, former cashier of the closed bank, as its treasurer and on November 19, only six days before the bank was declared insolvent, he deposited $27,256.34 of the grand lodge's money in that institution, which, it is alleged, was then known to be insolvent. LE In May, following the closing OF the bank, the lodge sought to have it's claim against the institution acknowledged as a preferential one, but the claim was disallowed. by Homer R. Wood, ex-offició receiver, and the lodge's claim was establish ed as a general one. In the suit filed, the trustees of the grand lodge seek to have this decree of the receiver réscinded and the amount ordered paid as a trust fund. The grand lodge trustees who appear as plaintiffs in the suit include N. C. Bledsoe, O. J. Baughn, George J. Roskruge, Morris Goldwater, Charles C. Wolfe, G. A. Bridge and Harry A. Drachman.

12. November 19, 1926 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, November 19, 1926

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BANK ANSWERS SUIT OF LODGE AT PRESCOTT PRESOTT-Declaring that the Grand Lodge of Masons of Arizona had accepted and acknowledged two dividends from the defunct Prescott State bank and intimating that. by SO doing it had cut itself from any possiblitly of being instated as a preferred creditor of the bank, the state banking department and Homer R. Wood, ex-officio receiver of the Prescott bank, filed a demurrer and answer in the case brought by the Masons for the prereneneial payment of their account in the local institution. The answer, which prays that the plaintiff's suit be dismissed alleges that the Grand Lodge already had filed a petition for a preference and this petition had been denied, the lodge being accepted as a general creditor of the bank, and that two dividend payments, one of $4,088.45 and the other of $2,725.63, had been made and accepted. Nearly $30,000 of the Grand Lodge's funds were deposited in the local bank prior to its failure by R. N. Fredericks, treasurer of bank. The answer was filed by Ellis and Byrne, attorneys for the state bank superintendent.

13. July 10, 1927 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, July 10, 1927

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BOND CASE TO OPEN MONDAY PRESCOTT brought by Prescott to recover in Liberty Loan bonds from the state treasurer Arizona Prescott announced yesterday by John attorney Arizona. The tried by Judge Gerald Jones Pima counsitting for the Yavapai county judge has disqualified himself. The Buit makes Andrew Hamsuperintendent the defunct defendants the The Konds sought to be by of Prescott by the replevin suit bonds given March 1919. by the Prescott State bank the state treasurer. to secure deposits state moneys in bank. The bonds since that time have been security for state deposits in the alleged by the BashfordBurmister company had loaned bonds to the bank 1919 the purpose the bank them for credit poses. The company claims that no authorized the bank loan that the listed by the bank the property of the mister Three the BashfordBurmister company rectors bank stated bank closed and Hammons state superintendent of banks Later Wood was special deputy state bank and placed charge the bank the company after the bank year be represented in The the trial by Murphy Earl deputy attorgeneral. State Treasurer laghan present at the trial as one defendants.

14. November 25, 1927 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, November 25, 1927

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PRESCOTT BANK MAY PAY IN FULL IS REPORT Under the receivership of Homer R. Wood affairs of the Commercial Trust & Savings bank are reported trending toward full repayments of the depositors and creditors, while something approaching a gross dividend of 75 percent is expected for the creditors of the Prescott State bank. Somewhat more involved are the affairs of the chain, the Bank of Jerome, from which a very small return may materialize. Paul Deming, who was cashier of the Jerome bank, returned from Pasadena, is to be tried, on change of venue, by a court in Phoenix, on a charge of receiving deposits for an insolvent institution.