City National Bank (El Paso, TX)

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BIG BANK AT EL PASO, TEXAS, CLOSED TODAY

El Paso, Texas, May 6—The El Paso City National Bank, one of the southwest's largest institutions, failed to open its doors today. The bank it is understood was in a weakened condition due to frozen paper.

The bank was saved from closing three months ago when $1,000,000 in gold was transferred to the institution from the federal reserve banks here. Altho a crowd gathered in front of the bank early today there was no disorder.

TRAVELERS' AID TO MEET

The Travelers' Aid Society will meet Wednesday morning at 10 o'clock, at the Y. W. C. A. All members of the board are urged to be present.

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FOREIGN King George has signed the AngloAmerican rum-running treaty enabling authorities to of American shops suspected whisky search smuggling British beyond the three-mile limit. Quite a sensation has been created in the Irish linen trade by a German order for 115,000 dozen of men's This is the orhandkerchiefs. largest for printed many der Belfast has received years. A treaty of peace was signed at Amthe three discordant political in Honduras and factions alpa by representa- nations. tives of the Central American The document was signed in the presence of Sumner Welles, who was sent to Honduras by President Coolidge. Unless an official recount of the ballots deprives the United Socialist party of its present rank as numerically the strongeest party in the new reichstag, President Ebert will in the next few days commission its leaders to proceed with the work of organizing a new coalition government. Premier Theunis and Foreign Minister Hymans of Belgium arrived in a few days ago on the second visits they are paying to of London the ascertain France, the England and Italy, to views of the allied governments on methods for making the Dawes plan effective. M. Krestinsky, the Russian ambassador, has left Berlin for Moscow and the the Russian in Berlin will be egation offices of commercial closed, given it del- by is until satisfaction is for the recent entry into the stated, Germany German police building of of the the delegation and the search of the quarters for the Community leader Botzenhardt. The Conservatives have started their attack on the Labor government's bud- As in the House of Commons. get everyone expected, the onslaught of of criticism was aimed at the abolition duties on foreign manuand Labor's opfactures, the McKenna intention tariff to wall any building of a pose around the empire by a scheme of imperial preference. Twenty-six Japanese insurance companies have commenced the payment of 10 per cent. of the policies of losers and fire of Great crowds are in tember. the earthquake last The milling Sep- disabout each office in Tokio. tribution involves $40,000,000, which the companies borrowed from the government. Most of the money will be reinvested immediately in permanent buildings, for which permits are issued as of June 1. A Reuter agency dispatch from Spain, says the war minister military airplanes of the Spanish personnel has Seville, ordered flying and corps the to be ready for immediate departure atfor Morocco. The information is tributed to the newspaper Voz, which have that all leaves of absence been says suspended. The newspaper intimates that the order is a consequence of urgent dispatches from Morocco forreaching Seville by airplane and to warded immediately by plane Madrid. GENERAL The El Paso City National Bank, of the Southwest's largest insti- few one falled to open its doors a The bank, it is tutions, days ago., condition understood, due to in a weakened was frozen paper. The bank was saved from closing three months ago when $1,000,000 in gold was transferred of to the institution from the vaults the Federal Reserve Bank here. Modern parenthood has no place for that once popular standby-"Spare the of and spoil the child'--members of Mothers and Associations were Teacher the rod Congress told Parent- educa- in St. Paul. Miss Alma L. Binzel, tional director of the Federation for Child Welfare Study, New York city, this information in her talk on gave "Education for Parenthood" at the association's annual convention. Tegucigalpa, capital of Honduras, Dehas fallen to the rebels. the Navy partment was advised in a dispatch from the commander of the U.S.S. Milwaukee at Amapala. bobbed hair banher husband and dit, Mrs. and Cella Cooney, partner sentenced in Edward Cooney, were from ten to in prison by County each crime, to serve twenty Judge years Mar- was of Brooklyn. Mrs. Cooney to Auburn to Sing Sing. sentenced husband tin prison They and assault. had her guilty to a charge of Lewis pleaded Ed "Strangler" successfully with Joe defended his title in a match Mondt of Colorado at Y., winning the only 1 ter, "Toots" N. fall Roches- in The hour 37 minutes and 4 seconds. second fall was called after twelve minutes because of the time limit set state athletic followed Lewis' near by the riot commission. victory. the cham- The A challenger made a rush at the end of the fall, claiming he had been taken at a pion that at all disadvan- in and tage when Lewis, apparently

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Receiver Denton in Charge at City National; Realtors Discuss Bank Reorganization

IF ALL those indebted to the City National bank meet their obligations there will be plenty of money to pay all depositors. This was emphasized by A. H. Denton, receiver, who arrived in El Paso yesterday and took charge of the institution. "If the people who owe the bank will meet their obligations," said Mr. Denton, "there will be no trouble in liquidating and paying all the depositors."

Mr. Denton said he will first find out who is indebted to the bank. He said that safety deposit boxes would be available to renters as soon as a check of the liabilities could be made and added, "And it is found that none of these folks are indebted to the bank in any way."

Mr. Denton stated that neither he nor any of those assisting him is here to play politics. "This is purely a friendly and business administration," he declared. "I am here to assist the people of this community to get their money at the earliest possible date."

Mr. Denton was told that the realtors at their luncheon yesterday noon had made suggestions relative to the reorganization of the City National.

"If there is any way in the world this institution can be placed on a solid foundation," said Mr. Denton, "the department would be delighted to cooperate. I would certainly like to see something like this worked out. We will welcome and encourage any practical, business-like suggestion for such a solution. The department does not want to run this bank. We are more anxious to see the bank a going concern."

It will be some time yet, Mr. Denton said, before any definite statement about the bank's affairs can be issued. Mr. Denton was on the job shortly after his arrival and remained in the bank during the day. He stated to callers that hereafter he would be found in this place, working hard to be of every possible assistance.

This is Mr. Denton's first visit to El Paso. He is the president of the Home National bank of Arkansas City, Kan. He bears an enviable reputation in the leading banking circles in this country. Recently he was prominently mentioned for controller of the currency. In 1920 Mr. Denton was a national Republican delegate.

REALTORS DISCUSS BANK'S REOPENING.

Suggestions for the reorganization of the City National bank were made at the realtors' luncheon yesterday noon at the Toltec club. The subject was brought up by F. G. Schell, secretary of the board.

"I would certainly like to see this bank put back on its feet," said Mr. Schell. "It seems to me that 200 men in this city could be selected who would put up a total of $200,000. I would be willing to join the part of this number who would subscribe $1,000 each."

"My plan," said J. B. Paden, "would be to get behind Winchester Cooley, back him and give him our moral support. He can put over a proposition of this kind."

Mr. Cooley is one of the vice presidents of the City National.

Fine Opportunity, Says Coles.

"This is one of the finest opportunities for a young man with money," remarked A. P. Coles. "A man who had $250,000 or $300,000 would be getting a splendid start if he could go in and buy the assets of this bank and reorganize it. He would already have a fine start. They have $4,000,000 of deposits, $4,000,000 of paper. If that is paid the depositors will get all their money. A man who would reorganize this bank would be three years ahead."

"The man who would do this," suggested H. P. Hadfield, "would probably be able to get an agreement out of the depositors to withdraw their money, if they insisted on withdrawal, at the rate of 10 per cent a month. They might agree to this knowing they would get 100 cents on the dollar."

"What hurts in a bank," said Mr. Coles, "is bad paper. With $300,000 a man could start a banking institution that would require five years to build up."

"Those are problems," said Charles H. Leavell, who was elected president pro tem in the absence of Horace B. Stevens, "that, in some form or another, this community will have to settle."

Paden Suggests a Name.

Mr. Paden said that if a new bank was started its name should be "The Farmers' State Bank."

"We have the greatest valley in the world. I said this 10 years ago. If it should ever happen that cotton, as a crop goes out, there will be diversified crops. The quicker we play up the farmer, the better off we are going to be," Mr. Paden said.

"Getting back to the bank," said Mr. Coles, "of course, the plan would have to be worked out by men who would take charge of it and run it.

"There are $77,000 worth of fixtures in the bank. That would be a good buy. Quarters ought to be made smaller and half the space rented out."

The realtors also discussed boosting Cloudcroft as a summer resort.

"Cloudcroft," said Mr. Coles, "is one of the biggest assets we have and we should build it up. There is no excuse for not going to Cloudcroft. It is one of the most beautiful places in the United States."

Mr. Coles stated that the El Paso & Southwestern was playing up this popular resort, as was the Texas & Pacific.

Mr. Paden suggested that the realtors stage a big picnic.

"Let us get out in the country," said Mr. Paden, "and have a real picnic, foot races, potato races n'everything."

"Why not all go to Cloudcroft?" said Mr. Coles. "That is a wonderful place and we could have a fine time."

Detroit is after the next convention of the National Association of Real Estate boards and has called on El Paso realtors to assist it in the fight at the Washington, D. C., convention the first week in June.

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SUITS BROUGHT TO LIQUIDATE BANK'S LOANS

Receiver for State National Brings Action Against Cattle Interests Totaling Quarter Million

Santa Fe, N. M., June 17.—The first step toward liquidation of cattle loans involving a quarter of a million dollars was taken in the United States district court here today, when Francis A. Chapman, receiver for the State National bank of Albuquerque, filed three bills in equity seeking foreclosure of the Nunn and Latham interests in Sierra county, New Mexico. In addition to judgment of foreclosure, the bills ask for the appointment of a receiver to take charge of the various herds of cattle and ranches and a demand is made for an accounting of all the assets pledged as security at the time the loans were made.

The pleadings in the bills are long and technical and disclose that the loans are what are known as "split loans," and for that reason many defendants are named. It is understood that the notes which make up the total indebtedness are owned by the State National bank of Albuquerque, the Sierra county bank of Hillsboro, the City National bank of El Paso and the State Trust and Savings bank of Albuquerque. All of the banks named are now in the hands of receivers.

Hearing Next Monday

Following the filing of the bills today the court ordered the defendants to show cause before Monday next why a receiver should not be appointed to take over and control all of the property described in the chattel mortgages and deeds of trust described in the pleadings.

In the first suit filed, Mr. Chapman, as receiver for the State National, names the following defendants: Nunn and Latham, a corporation; J. P. Nunn, D. M. Nunn, Emmett M. Nunn, Arch Latham, Cora Latham, Albert H. Denton, receiver of the City National bank of El Paso, Texas; Walter C. Hammell, receiver of Sierra county bank and T. K. D. Maddison, receiver of the State Trust and Savings bank of Albuquerque. This suit involves approximately $82,090, plus interest. The receiver for the State National asks judgment for $25,000 of this sum.

The second suit names as defendants L. C. Latham, Ella P. Latham, Arch Latham, Albert H. Denton, receiver of the City National of El Paso; Walter C. Hammell, receiver of the Sierra county bank, and T. K. D. Maddison, receiver of the State Trust of Albuquerque and involves a total of approximately $72,000 plus interest, of which amount Receiver Chapman asks $11,279.92.

The third suit, involving a total of approximately $50,000 plus interest asks specific judgment in favor of Receiver Chapman for $22,000 and makes as defendants Arch Latham, Nellie Latham, Cora Latham, Albert Latham, Receiver Denton of the City National, Receiver Hammell of the Sierra county bank and Receiver Maddison of the State Trust of Albuquerque.

The cattle interests affected are large outfits and control numerous ranches and grazing privileges in the southern part of the state. A United States deputy marshal left this afternoon for Sierra county to serve papers on the defendants.

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WILLIAMS GIVES UP HOME TO PAY CITY NATIONAL

J. P. Williams, one-time president and more recently vice president of the defunct City National bank, is indebted to the bank in the sum of $84,500, of which $35,400 is his liability as the recorded owner of 354 shares of capital stock of the bank at the time of its failure.

Winchester Cooley, vice president, owes $125,000, of which $37,000 is represented by notes, $22,000 by indorsement of a note signed by the Wilkins Farms and $66,000 represents stockholder's liability as the recorded owner of 660 shares of capital stock.

That is what A. H. Denton, receiver, says in an application to compound debt filed yesterday in the United States district court. He asks for a court order giving him permission to accept certain real estate from Mr. Williams and Mr. Cooley for credit on their debt.

The petition sets forth that neither Mr. Williams or Mr. Cooley has sufficient assets to pay the amount they owe and that their liabilities far exceed their assets.

The petition also says "that the total liability due and owing by both is and are doubtful debts and the total amount so due and owing by them to said trust cannot be realized."

Both have been assessed 100 per cent on their stock by the controller of currency.

Mr. Williams has offered his beautiful home in Sunset Heights, described in the petition as lots 56, 57, 58 and 59, block 7, Sunset Heights addition, which is free of incumbrance with the exception of a $7,500 mortgage, for a credit of $22,500 on his stock liability. This property is reasonably worth $30,000, according to the petition. Attorneys for the receiver said they understood that this was about all Mr. Williams had left at the time the crash came.

Mr. Cooley has offered to convey lots 13, 14 and the westerly 22 feet of lot 15, block 36, Manhattan Heights addition, free of incumbrance, in consideration of credit of $1,150, and lots 16 and 17, block 2, Harris tract, Ysleta, for $1,000, subject to a mortgage of $1,541.12.

Mortgage Company Indebted.

Three other orders also are being sought.

The City Mortgage company is indebted to the City National bank in the sum of $75,575, which is partially secured by sundry notes, valued at approximately $12,000, the plaintiff asserts.

The petition sets forth that "the indebtedness so due and owing to this trust is at least a doubtful debt, the said City Mortgage company not having sufficient assets to liquidate in full at this time its outstanding liabilities."

The mortgage company offers to assign other notes aggregating $19,000 which are good, according to the receiver, who wants permission to accept them.

The petition goes into a detailed statement in connection with the $62,674.03 principal indebtedness of the Tri-State Cattle Loan company.

The bank holds notes of various parties as collateral, secured in practically all instances by second chattel mortgage liens on live stock and in some instances by second mortgage deeds of trust and vendors' liens on real estate. The assets are classed as doubtful.

The petition states that the company is largely indebted to the War Finance corporation and has up as collateral for this indebtedness first lien papers by the same makers and same security.

The company has arranged to refinance with the Federal Intermediate Credit Bank of Houston and Wichita.

To complete the refinancing it is necessary that part of the paper held by the City National be surrendered and that other paper be accepted in lieu thereof.

As consideration for this arrangement the company proposes to pay sums in cash and to substitute other collateral. The bank will receive in cash $19,771.45 and notes for $13,680.06, and also in replacement notes already held by the bank received for $8,638.19, a total of $42,089.70, against which the bank will release notes aggregating $33,168.79, making a net gain to the petitioner of $8,920.91.

The bank also holds collateral against the cattle loan company for $26,101.25. Out of this the company has requested release for refinancing $12,25.52. The net result, the petition sets forth, will be that the bank receiver will give up security aggregating $12,925.52 and will receive securities aggregating $17,343.12.

Holds Drennan Notes.

The petition states that under this transaction Mr. Denton is of the opinion that out of $40,518.85 in collateral which he will retain, $11,977.10 should be classed as doubtful, leaving net security of $28,541.75, out of which the receiver should realize in a short time $22,889.77.

The bank holds notes of Joseph F. Drennan and Jane D. Drennan on which there is $5,877.44 balance of principal. Mr. Drennan is operator of Drennan's Hosiery store, which is insolvent, the petition states. Mr. Drennan is willing to make an assignment for benefit of his creditors, liquidation to be handled by the Tri-State Credit Men's association. Mr. Denton wants a court order to accept this arrangement.

Suit to foreclose on a lien on real estate given as security for payment of $45,000 obtained on a personal note by A. F. Kerr and F. P. Jones, March 6, 1922, also was filed by Mr. Denton, as receiver for the City National, yesterday afternoon.

A court order, signed by the late Judge W. R. Smith on July 28, gives Mr. Denton authority to sell personal property of the bank. It was filed yesterday in the clerk's office.

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$100,935 TO PAY CITY NATIONAL'S FEDERAL BANK DEBT

Following a special session of the United States district court yesterday morning, the defunct City National bank was ordered to carry out the terms of a compromise contract entered into with the El Paso branch of the Federal Reserve bank of Dallas on November 18 relative to taking care of a $500,000 debt.

Under the agreement the Federal Reserve bank agrees to sustain a loss of $100,000 and all interest on the $500,000 loan since the bank closed its doors on May 6.

The loan was made on January 28 and interest was paid up until the time the bank suspended business.

After applying offsets and collateral collections, it was agreed that $100,935 from the City National should comprise "full and final payment of the debt."

Includes Capital Stock.

Offsetting the amount owed the Federal Reserve bank is the amount of $163,409.37, which, it is said, includes $15,000 capital stock owned by the City National in the Federal Reserve bank, and $145,583.60, the ledger balance when the City National closed its doors, as well as $2,825.77 overcharged by the Federal Reserve bank. The amount of $135,655.63 collected on notes by the Federal Reserve is also considered.

Deducting these two offsetting sums from the $500,000 debt leaves an amount of $200,935, of which the Federal Reserve bank has agreed to accept $100,935 as "full and final payment."

The federal bank has on hand notes pledged by the City National as collateral "to secure any and all indebtedness" to the amount of $143,429.44.

Contract Filed Nov. 28.

The contract was filed November 28 with Judge Du Val West in San Antonio, according to stipulation in the contract. It was forwarded to the United States deputy clerk's office here with a special order that court be opened in order to take care of the contract.

A special court session was called by United State Deputy Marshal James J. Hill on Judge West's order, there being no federal judge in El Paso.

Signing the compromise contract between the two banks were B. W. McKinney, governor, for the Federal Reserve bank of Dallas; A. H. Denton, receiver of the City National bank of El Paso; William H. Burges for the City National bank, and Charles W. Collins.

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CITY NATIONAL RECEIVER FILES SUIT AGAINST 4

Albert H. Denton, receiver of the City National bank, yesterday filed suit In the United States district court against four El Pasoans in order recover levied order to pay the debts of the defunct bank The suits were filed against Will Owen, Margaret Dale Owen, Warnock and Josephine Warnock The receiver seeks recover $5,000 assessment levied on 50 shares capital stock the City National bank. the being In the sum of $100 per share, per cent in. terest from August 29, the date the as. alleged to have become due and Seeks to Recover Money Receiver sult to refor 13 shares in assess. ments from W. Warnock $800 for eight shares from Margaret Dale and on 10 shares from Will Owen Six per cent interest in each suit dates from August 29. The receiver, according to the Detition, had been appointed to collect the assets the City National bank. and upon the uncollected as mets remaining In his it appeared the of the controller of currency and the that order to pay the debts of the City Na tional bank necessary to enforce the individual liabilities of the to the extent as provided under the federal reserve act. What Petition Reads The petition further reads that by virtue the authority vested. controller currency did on the 22d day July, 1924, levy an assessment and each and every of the shareholders the City National bank and association for $100 upon each and every share of the capi. tal stock the bank and association. held and owned them respectively at the the failure of the bank Receiver Denton directed by the controller of currency to take all necessary proceedings individual liabilities, the petition sets forth.

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MANY PERSONS FAIL TO CALL FOR DIVIDENDS

Pasoans apparently are not pressed That conclusion reached members the City National bank receiver's Forty per cent first dividend have not called first cheeks distributed Monday of last week the following day there rush, since then but persons have called for their dividends.

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TOWNTALK

ARTS & CRAFTS STUDIO 104 Grant Ave. Lessons in China Painting, Designs for Stenciling and Embroidery. B. Westlake. 6-13tf

For Broilers or Fryers, call 318-J 407 W. Buena Vista. M. A. Gregory -Adv. 6-18

YES, WE DO HEMSTITCHING We call for and deliver work. Young's, 502 College St. Phone 201-M. 6-17-25

Saddle horses for rent by day, week or month. Fletcher and Pankey. Phone 313-M.

We are selling good Singer sewing machines. Guaranteed to sew good. $5, $10, $20. $35; new $50. Young's, 502 College street.-Adv. 6-15

PAST MATRONS' TEA AT BARKER RESIDENCE The Past Matron's club of the Or der of the Eastern Star will have tea for the visitng ladies at the residence of Mrs. Charles B. Barker, 134 Lincoln avenue, on Tuesday, June 16, from to 6 o'clock. All "wives, daughters, mothers, wid. own and sisters of Master Masons" are cordially invited to attend.

Marcelling and Hair bobbing. Ethel Benits. Phone 38-W. 6-19

SANTA FE COUNTRY CLUB There will be meeting for the purpose of organization of the Santa Fe Country club at the club house on the links Thursday evening, June 18. at o'clock. All persons interested should be that they may be informed of the plans and of the officers elected. 6-18

BANK RECEIVER OF EL PASO SUES ON NOTES suit was filed in the United States district clerk's office today by Albert H. Denton, receiver of the City National bank of El Paso, Texas, VS. Buck Bounds. Eva A. Bounds, his wife, and Edward W. Latham, asking judgment on promissory notes for $2,000, and that a deed of release of certain property be decreed null and void. Judge E. L. Medler of El Paso, and Attorney A B. Renehan, of Santa Fe, represent plaintiff.

NOTICE All persons who purchased a 1923 hunting or fishing license prior to May 25th, 1925, are kindly requested to call at their nearest license collector and have same exchanged. It is very important that these licenses be exchanged on account of changes made by the last Legislature in the bag limits, date of big name season, and etc. No charge will be made for the exchange T. P. DELGADO, State Game and Fish Warden.

LADIES. ATTENTION Having purchased one of Mr. J. L Young's Hemstitchers, am prepared to do hemstitching on all kinds of material. Satisfaction guaranteed in work and price. MRS. S. C. CHATHAM 213 Santa Fe Ave.

6-17

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NATIONAL

Bank Receiver Will Pay Out $400,000 to Depositors Here Thursday.

A second 10 per cent dividend will paid depositors the City National announced terday by Receiver Jerome The total about Checks distributed from dows room floor space the City National without checks paid except upon receiver certificates, This second dividend paid under the Receiver the dated June 26, prior to his Mr Mrs. Denton from City and left last night for their home in Arkansas Denton was receiver of the bank 14 fortunate for depositors of the City that the the with of the trust," banker of many perience and sound and He operate the trust economically."

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CITY NATIONAL LOANS "IN SUIT

Bank's Receiver Names Cattle Financing Company in Issue.

Jerome Harrington. receiver of the City National bank. yesterday filed suit in the United States district court against the Tri-State Cattle Loan company. and others, seeking to collect loans amounting to $71,144.68 made by the bank to the company. He also asks for interest and 10 per cent attorney's fees. The bank's petition states that loan of $37,668 for 30 days was made to the loan company November and that only $17,740.04 has been The petition further avers that July 24, 1923, the cattle loan company borrowed $40,000 Liberty bonds bearing 1-2 per cent interest. with the provision that the should be kept by the bank and the bonds should returned on demand. Efforts of the receiver to recover the bonds have failed. the petition says. The receiver is also seeking to colleet note for $11,216.69 plus 10 per cent attorneys' fees and per cent interest from July 3. 1923. This note was signed by John Helms, president of the loan Harry Braidfoot, T. D. Love and R Durrill, who are also co-defendants with the company in the collection of the other two loans

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Notice of Proposed Sale of Assets of City National Bank it these the has to the has court the after the is of the is file nor has for