759. Inyo County Bank (Bishop, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 15, 1927
Location
Bishop, California (37.364, -118.395)

Metadata

Model
gpt-5-mini
Short Digest
181beec8

Response Measures

None

Description

The articles describe the Inyo County Bank closing its doors in mid-August 1927, appointment of receivers, and subsequent criminal convictions of the Watterson brothers for embezzlement. No run or depositor panic is described; the closure resulted from embezzlement/insolvency and led to receivership and permanent closure.

Events (4)
1. August 15, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed following discovery of large shortages/embezzlement attributed to the Watterson brothers; state investigation and seizure of books followed.
Newspaper Excerpt
the five Inyo county banks, which recently closed their doors
Source
newspapers
2. September 24, 1927 Receivership
Newspaper Excerpt
La Bree named receiver for the Inyo County Bank, owned by W. W. and Mark Watterson. ... La Bree will assume his new duties Monday as the successor of C. E. Wailes, who resigned because of ill health. (Modesto News-Herald 1927-09-24). Trial of the two Watterson brothers on charges of embezzling money from the Inyo bank's funds will open Monday at Bishop. (same article).
Source
newspapers
3. October 6, 1927 Other
Newspaper Excerpt
involuntary bankruptcy petition filed ... against Watterson Brothers, Inc., the holding company ... involved an attempt to trace more than $1,000,000 in securities which they said had disappeared since the arrest of the Wattersons on charges of embezzlement in connection with the failure of their Inyo County Bank of Bishop. (Douglas Daily Dispatch 1927-10-07).
Source
newspapers
4. November 14, 1927 Other
Newspaper Excerpt
W. W. and Mark Q. Watterson ... started for San Quentin prison, where they will serve terms ... for embezzlement and falsification of bank records, which wrecked their Inyo County Bank of Bishop. (Douglas Daily Dispatch 1927-11-15).
Source
newspapers

Newspaper Articles (6)
1. August 15, 1927 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, August 15, 1927

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Article Text

FURTHER DISASTER IMPENDING Owens Valley Bank Crash May Result in Other Collapses. TO START PROBE Government Names Holeman Receiver for Financial Institutions. BISHOP, Calif., Aug. 15.-The specter of further financial disaster hovered over Owens Valley today with the announcement by the state corporation department that an investigation would be launched into all enterprises operated by W. W. and Mark Watterson, bankers. The Watterson brothers, who controlled the five Inyo county banks, which recently closed their doors, operate the Watterson Brothers, Inc., a holding company; Natural Soda Products Company, The Eaton Land and Cattle Company, the Tungsten Products Company and the Coso Hot Springs Company. Books and records of all except the Coso company have been seized and are in the custody of Arthur E. Johnson, department auditor. The investigation, entirely separate from the bank probe, is to determine whether the Wattersons have violated the corporate securities act by issuing stock contrary to their permits. Johnson is expected to make , report on the $1,000,000 holding company under which the brothers operated a garage, hardware and general store and sold stock in them. C. H. McLean, federal examiner, has completed his investigation of the First National Bank here an will forward his report to Washington. C. H. Lowell, state bank ex. aminer has taken charge of the Inya County Bank here and its branches at Big Pine, Independence and Lone Pine. The brothers have refused to make a statement following the charges of Will C. Wood, state superintendent of banks, that $800,00 had been embezzled, other than to lay their financial condition to the valley's water war with the city of Los Angeles. The Williams Market, largest in the county, closed its doors Satur dav night. and it is fearnd that other business houses will follow the same course. WASHINGTON, Aug. 15.-Appointment of B. W. Holeman, Invo county, California, as receiver for the First National Bank. Bishop, Calif., a state bank with four branches in the county, all of which closed recently was announced at the office of the comptroller of the currency today. The appointment was forwarded through the San Francisco office of the comptroller, and Holeman probably will report there.

2. September 24, 1927 Modesto News-Herald Modesto, CA
Article from Modesto News-Herald, September 24, 1927

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Article Text

LA BREE CHOSEN RECEIVER AT Man Who Served in Modesto and Riverbank to Take Over Bank Affairs Charles A. La Bree. who served as receiver of the First National Bank at Riverbank after frenzied operations of C. L. Flack, prestdent and chics stockholder, had numed receiver for the Inyo County Bank, owned by W. W. and MA Q. Wallerson. This was announced to-day by an Associated Press dispatch from San Francisco. Worked Here La Bree first became connected with the receivership of banks in Modesto severa! years ago, when he served under Jessa G. Boyristun, who was then the receiver of the Cellfornia National Bank. Hs later was employed in the Stanislans County Bank, organized in Modesto after the California National Bank failure. He then became assistent receiver in the liquidation of the First National Bank at Colusa. At present he is receiver of the First National Bank of Chowchilla. La Bree will assume his new dulies Monday as the successor of C. E. Wailes, who resigned because of III health. Trial to Start Trial of the two Watterson brothers on charges of embezzling money from the Inyo bank's funds will open Monday at Hishop. Efforts of the receivership are at present centered on recovery of such money as is possible from the investments of the Watterson brothers in mining and other properties In which they were interested and which, It is alleged. was emberzied from the banks. PADDLED ALONE mo school teacher, has paridled from the eastern and of Siberia heavy sea was running when he route. Nome was notified by wireless to be on the watch, but the Eskimo reached here safely. CARD OF THANKS We wish to express our approcialion and gratitude to our kind friends for the sympathy and beauthis floral offerings tendered in our recent bereavement in the loss of

3. October 7, 1927 Douglas Daily Dispatch Douglas, AZ
Article from Douglas Daily Dispatch, October 7, 1927

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Article Text

ACCUSE BANKER OF CONCEALING MILLION ASSETS LOS ANGELES, Oct. 6 (A)).W. W. Watterson and Mark Q. Watterson, Inyo county bankers, were accused of concealing the whereabouts of extensive assets, in an involuntary bankruptcy petition filed in federal court here today against Watterson Brothers, Inc., the holding company for the numerous Watterson corporations. The petition was filed by attorneys for five creditors who said represented the majority of the creditors of the corporation. The petition placed the total debts of the Wattersons in excess of $1,100,000. In a separate action, the court was asked to appoint a temporarly receiver for the Watterson properties to control them until a trustees could be named. The attorneys said the bankruptcy proceedings involved an attempt to trace more than $1,000,000 in securities which they said had disappeared since the arrest of the Wattersons on charges of embesslement in connection with the failure of their Inyo County Bank of Bishop.

4. November 11, 1927 Evening Star Washington, DC
Article from Evening Star, November 11, 1927

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Article Text

BANKERS MAY FACE 350-YEAR TERMS Two Brothers in Owens Valley, California, Convicted on 35 Counts. By the Associated Press. INDEPENDENCE, Calif., November 11.-W. - W. Watterson and his brother, Mark Q. Watterson, pioneer Owens Valley bankers, today were faced by possible prison terms totaling hundreds of years following their conviction last night on 35 counts of embezzlement of more than 460,000 from the Invo County Bank of Bishop and of falsifying a bank account. The two brothers, who had charged that "the destructive policy of the Neity of Los Angeles in the war for Owens Valley water rights" was the cause for the closing of the Inyo County Bank and also the First National Bank of Bishop, another of their institutions, will appear before Superior Judge Lambert Monday for sentence. While the terms for embezzlement and grand theft are fixed by law at 10 years, Judge Lambert may make the sentences run either consecutively or concurrently. Should the senStences run concurrently they would "serve but 10 years for the embezzle"ment and grand theft charges, with the term for changing their bank records added, instead of a possible 350 year sentence. Defense Attorney Carey immediate1y filed oral notice of appeal. The two brothers were allowed to remain at liberty on bail.

5. November 15, 1927 New Britain Herald New Britain, CT
Article from New Britain Herald, November 15, 1927

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Article Text

WATTERSON BROS. GIVEN LONG TERMS Noted Pair. Convicted of Embezzlement. Long Financial Leaders In California. Independence, Calif. Nov. 15 (AP) Sentences of from one to 10 years each were imposed yesterday on W. W. and Mark Q. Watterson, brothers, convicted of embezzlement and falsification of record which wrecked their Inyo county bank of Bishop. At the time of their arrest, the Wattersons blamed the failure of the Inyo county bank and the First Nittional bank of Bishop, which they also owned. on the tactics of the city of Los Angeles in its fight for water rights in Owens Valley. The Wattersons were for many years the financial leaders of Inyo county. Each was found guilty on 35 counts of embezzlements totalling more than $460,000 and sentenced to an indeterminate term of one to 10 years on each count. The court permitted the sentences to run concurrently.

6. November 15, 1927 Douglas Daily Dispatch Douglas, AZ
Article from Douglas Daily Dispatch, November 15, 1927

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Article Text

CALIF. BANKERS START SERVING PRISON TERMS INDEPENDENCE, Cal., Nov. 14, (AP) -W. W. and Mark Q. Watterson, Owens Valley bankers, tonight started for San Quentin prison, where they will serve terms of ten years each for embezzlement and falsification of bank records, which wrecked their Inyo County Bank of Bishop. The two brothers, who for many years were financial leaders of Inyo county, were sentenced this afternoon, following their convictions last week. Although each was found guilty on 35 counts of embezzlement totaling more than $460,000 and one count of falsification of bank records and sentenced to serve an indeterminate sentence of from one to ten years on each count, the court permitted the sentences to run concurrently. No request for probation was made by the convicted bankers, although court attaches had expected this action. The sentences were pronounced immediately after the request by the defense attorney, Phil Grey, for a new trial, had been denied. W. W. Waterson heard his fate first, and a few minutes later, the same sentence was pronounced in the case of his brother. Although the specific charges against the two brothers involved less than a half million dollars, at the time of the closure of their bank, state banking superintendent Will C. Wood declared the shortage for which the brothers were responsible totalled in the neighborhood of $800.000. The Wattersons had blamed the failure of this bank and the First National Bank of Bishop, also owned by them, on the tactics of the city of Los Angeles in its battle for Owens Valley water rights.