Mesa County National Bank (Grand Junction, CO)

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DEPOSITORS WILL BE PAID IN FULL, DECLARE OFFICERS Depression in Securities That Were Considered Gilt-Edged is Cause of Suspension; President Orson Adams Did Everything in His Power to Prevent Closing and Confidence of People of City is Still Unshaken. NATIONAL BANK EXAMINER SMITH IS IN CHARGE HE Mesa County National Bank, of this city, has been closed by order of the United States comptroller of the currency. T A notice to this effect was posted on the doors of the banking house this morning, and the doors of the institution were not opened at the regular hour, and have not been opened today. Walter W. Smith, national bank examiner, is in charge of the institution. The cause of this action is the fact that there was a depreciation in certain securities which the bank held that had been considered among the best securities in Mesa county. On these securities the bank was unable to realize to the extent that should have been expected, and the suspension of business followed.

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MESA CO

NATIONAL BANK CLOSED BY COMPTROLLER First National of Clifton DEPOSITORS WILL BE PAID is Temporarily Suspended IN FULL, DECLARE OFFICERS HE First National bank of Clifand discounts. The last statement of the Clifton ton was also closed following T' the closing of the Mesa County bank showed it to be in splendid National bank, the directors first shape financially. Depression in Securities That Were Considered Gilt-Edged is posting a notice, shortly after ten o'clock, that "owing to the failure of the Mesa County National Cause of Suspension; President Orson Adams Did EveryThe following message was bank to open its doors this morning, received today by Orson Adams it is deemed advisable to temporarily thing in His Power to Prevent Closing and Confifrom Oliver H. Shoup, one of suspend business." the best known financiers of the According to the statement of ofstate: dence of People of City is Still Unshaken. ficials of the Clifton bank that institution will be reopened within Colorado Springs, Colo., few days, as soon as it is learned to Nov. 28, 1913. what extent it will be affected by the Orson Adams, Mesa County bank. The Clifton bank Grand Junction, Colo.: NATIONAL BANK EXAMINER SMITH IS IN CHARGE cleared through the Mesa County, We are very sorry to learn of and had $9,000 on deposit there. It the present situation, but beis stated, however, that the Clifton Heve that you will work it out HE Mesa County National Bank, of this city, has been closed by bank has ample securities for all its finally and successfully. order of the United States comptroller of the currency. T" depositors, even though it should O. H. SHOUP. A notice to this effect was posted on the doors of the banking realize but fifty per cent on its loans house this morning, and the doors of the institution were not opened

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MESA COUNTY CLOSES ITS DOORS Ugly Rumors and Bepression of Securities Forces m. stitution to the Wall WILL REOPEN SOON Grand Junction, Nov. 28.-Much surfailure of prise was expressed at the the Mess County National bank to open its doors this morning and many small depositions were panicstrickes over the suspension of what has heretofore been generally considered one of the strongest financial institutions on the western slope. For several days there have been many ugly rumore afloat concerning the stability of the bank, some of these evidently being prompted by prejudice and personal enmity against Orson Adams, the president of the institubecause of his aggressive in political and attitude tion. who, municipal mat. has ters during the past few years, provoked considerable opposition against the bank, and it is rumored the past ten days deposits to over $225,000 that amounting during have been dewithdrawn. This with the recent preciation of certain securities held by the bank and heretofore considered giltedged have operated very seriously against the bank, but these conditions were not generally known to the small depositors nor to outsiders. The Mesa County State bank was established more than 25 years ago and for many years was easily is the lead of all booking Institutions in Man county of - - Tax years ago a change was made to a national bank and the name changed. The order for a temporary suspension came from the comptroller of the treasury at Washington and Walter W. Smith, national bank examiner, has been placed in charge. Among the heavy stockholders of the bank are Oreon Adams, A. R. and J. M. Sampliner, Dr. Bull and other A leading business men of the city. reorganization is under way and it its is said that the bank will reopen doors within the next two or three weeks. President Adams, who has tried very hard to avert the trouble, savs that the depositors will not suffer, but will be paid in full. The people here have full faith in Mr. Adams' business ability and, after the first shock, they have rallied to him in most failloyal fashion. It is felt that the is in no way a reflection upon local been business ure conditions which have the good this fall, but due to tank very being deceived in a large amount to of securities and unkind rumors due personal prejudice against Mr. Adams. Orson Adams is well known in Glenwood Springs where he is regarded as in of the shrewdest business men one the state. He is thoroughly familiar has with the banking business and it bank always been supposed that bis business founded upon a very solid foundation. was Mr. Adame has always both been a very aggressive character and a political and business way Post in a of very positive ideas. The business man pleased to note that the shown is of Grand Junction have this such men great faith in Mr. Adams in unfortunate affair and that they pre- full that be will pay depositors in and diet still make a success of the banking business. is not known here just what hav- are It securities referred to above as known the weakened the bank, but it is intering Mr. Adams has been heavily and that in the Grand Junction street in. interurban ested railway and other local the dustries and it is presumed that bank became involved pretty heavily these enterprises. The bank statement is cap italized in at $100.000, but no of has yet been made as to the amount the shortage. I Miss Allen returned last Sunday

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whether this meant the issue of deposit certificates, the exchange of stock deposits, or some other plan. Pass Resolutions. Senator De Long was named as permanent chairman, and W. A. Marsh as secretary of the meeting, and Edwin Price then presented the following resolutions, which were adopted, as a program for the meeting: Resolved That the depositors of the Mesa County National Bank. here assembled, declare the object of the meeting to be as follows: 1. To devise ways and means to co-operate together for the purpose of reopening the Mesa County National Bank at the earliest possible date. 2. To appoint a committee of five to formulate a plan or plans to be submitted to the depositors for the purpose of bringing about speedily the object as stated above. 3. To adjourn to the call of the chair. to hear and act upon the report of the committee. Straud M. Logan moved that the chair appoint the committee of five, and R. J. Derry moved an amendment to have the committee named by the depositors. Walter Walker opposed the amendment on the plea that it would be an almost impossible task to name the committee in such a manner, and that if any members were objectionable as named by the chair, their names would be withdrawn. Senator De Long said he did not relish the responsibility, and that he had no intention of naming anyone in opposition to the wishes of the depositors. Frank Rees favored the amendment, and R. J. Derry stated that his suggestion was not meant as a reflection upon Mr. De Long, in whom he felt the fullest confidence. W. D. Halpin favored the original motion, stating that there was no means of knowing who were depositors and who were spectators. Many Would Adjourn. A. P. Wadsworth at this juncture moved an adjournment for a week, stating that there were several hundred people outside who could not participate in the meeting, and that action at this time would be inopportune. The motion was defeated, as was the amendment, and the original t motion to have the chair name the committee, carried. W. S. Wallace suggested that adjournment be taken to a larger hall before further action, and the chairman announced that he would not name the committee until after much deliberation. Fred Mantey, W. H. Hogan and J. H. Schiesswohl spoke, the first two favoring adjournment, K and the latter immediate action. t F. Bernard Welsh stated that the t receiver had been named and would e arrive Wednesday, and that the bank b was likely to reopen at any time. "I would rather see Orson Adams reopen the doors of the bank by himself," said Mr. Welsh, "than through any action the depositors might take. He is the man to reopen the bank and give him the opportunity and he a will do it-he hasn't been given b chance and he ought to have it." The statement drew forth a tremendous round of applause, a remarkable ovation for Mr. Adams on the part of the 600 depositors present, an indication that the people had not lost faith in him. Mr. Welsh moved that the meeting adjourn on t call of the chair. and in the meantime e Mr. Adams would have the opportun nity to work out the solution of the 6 problems confronting him.

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Mesa Bank Closes Banking, business and social circles in Meeker were surpised to hear of, last Sunday, the closing of the Mesa County National bank, Grand Junetion. Too much depreciated lower Grand River valley securieties was the cause of the suspension. Orson Adams, head of the closed bank, has many friends in this town all of whom hope he will be able to get its affairs straightened up and again resume business ere long.

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THOUGHT ALL CHECKS BE PAID Announcement in The Sentinel last evening of the payment of checks drawn on the Mesa County National bank against the Grand Junction Building & Loan association almost started a run today. Many of those holding checks from various sources against the closed bank, thought that all checks were to be paid, instead of just those drawn by the loan association, and insisted that this be done.

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ACTION ON BANK DELAYED UNTIL AFTER HOLIDAYS With the departure of Receiver F. E. Chapman for Denver to spend the holidays, it is probable that there will be no developments in regard to the re-opening of the Mesa County National bank until his return the first of the year. Negotiations have been delayed pending consideration of the bank's condition by the comptroller of the currency. and when the latter files a report. the Denver men who have interested themselves in the local institution will come here. It is stated that everything still looks favorable for the reopening of the bank.

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RECEIVER MAKES STATEMENT AS TO MESA CO. BANK Reports Must Go to Comptroller -Depositors Must Make Their Claims Soon. No statement of the condition of the Mesa County National Bank can be made at this time, according to F. A., Chapman, receiver of the bank. who returned from Denver this morning. "My reports are made to the comptroller of the currency," said Mr. Chapman, "and the law provides no way by which this information can be given to the public, as in the case of a state bank. The assignee of a state bank makes his report to the courts, and that information at once becomes public. "I will say this much, however. The depreciation in securities in the Mesa County bank affect in no way either of the other banks in Grand Junction. Nor does this depreciation affect generally the securities in the valley or county. To the best of my knowledge the other banks are in good condition and there was absolutely no justification for the run last week.' "I am working in the interests of the depositors of the Mesa County National bank. and am pushing the settlement to a conclusion as rapidly as it is possible to do so. As soon as there is a sufficient amount of money on hand a dividend will be paid to the depositors on the order of the comptroller of the currency." The depositors of the bank will be required to make legal proof of their claims in the usual order in order to participate in the dividend. Mr. Chapman said this morning that the depositors and other creditors were unusually slow in making these claims, which should be hurried as much as possible. The same proof is required in the case of drafts and certificates of deposit.

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DELAY BY DEPOSITORS IN PROVING UP CLAIMS STOPS BANK SETTLEMENT The delay by depositors in proving up their claims in the Mesa County National Bank is holding up to a large extent the settlement of the bank's affairs. Not more than 20 per cent of the depositors have proved their claims, and some are likely to suffer losses as a result. Until the claims are proved up, it is impossible to consider any plans which might be made for the possible re-opening of the bank. Many of the depositors have an idea that the papers they signed for the depositors' committee is all that is required, but it will be necessary for all of them to file a claim with the receiver, in the same manner as any other creditor of the bank.

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DEPOSITORS SOON TO GET A DIVIDEND Assessment on Shareholders Will probably Force Action For Re-Opening. STOCKHOLDERS MEET AGAIN The first dividend to the depositors of the Mesa County National bank of from 15 to 20 per cent will probably be paid about the last of this month. There is now approximately $80,000 available for this purpose in the hands of the receiver and the assessment on the stockholders, ordered by the comptroller of the currency, will probably bring in an additional $30.000, although only a fourth of this will be available for the first dividend. Temporary Receiver Chapman last evening mailed out notices of a 100 per cent assessment to the stockholders of record of the bank, on order of Comptroller Williams. The stockholders are permitted to pay 25 per cent of the assessment Feb. 28, and the remainder in three monthly installments The assessment is expected to raise between $30.000 and $35,000, which will be placed to the credit of the depositors. On the major portion of the stock the assessment cannot be collected. Of the total capital of $100,000, which is assessable, $58,000 represents the holdings of Orson Adams, which is held as collateral by the First National bank of Denver. There are a number of women stockholders. who: the opinion of members of the depositors committee, will be unable to pay the assessment, but it is hoped to realize at least $30,000: The order of the comptroller will force action on the reorganization plans. The assessment will compel the First National bank of Denver to release the stock it holds, or pay the assessment of $58,000. If this is not done the stock will revert to the bank and will be disposed of for what it will bring. There are about 300 shares held in the valley, and many small blocks of stock are held by eastern parties, many of them women. H. F. Barnard of Denver, representing Colorado Springs parties holding sixty shares, reached here yesterday and had a conference with other stockholders today. Another meeting will be called in a few days and it may be possible that the comptroller will be asked to revoke his order, conditional on the stockholders agreeing to arrange for the reopening of the bank and restoring the capital of the institution. It is said by this method more money can be realized for the depositors than by foreing the liquidation of the bank's assets through receivership. Mr. Barnard in his conferences today indicated that his clients were willing to pay the assessment, but would much prefer to see the bank reopened, even though the cost to the stockholders was greater. for in that event the bank as a going institution. would give value to the stock. In case the bank can be reopened, it is said to bei the plan of the men

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Senator John J

Tobin, who was recently appointed receiver of the Mesa County National Bank, returned last evening from his home in Montrose to take charge of the bank affairs.

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PAYMENTS ARE MADE ON STOCK Plans for Reorganization of Bank Dropped HE first payments on the hundred per cent assessment made T' by the Comptroller of the Currency upon the $100,000 capital stock of the Mesa County National bank were made by stockholders today, thus ending for the present the plans for the re-organization of the bank. Practically all of the Grand Junetion stockholders paid the twentyfive per cent of the assessment levied by the comptroller, and Receiver John J. Tobin was well satisfied with the results of the assessment. However, no payments were made on the $58,000 stock of the bank held by the First National bank of Denver as collateral, and a number of the eastern stockholders failed to make the required payments. The next step to be taken by the receiver will be a formal demand for payment, accompanied by threat of suit unless the amounts are paid. The practical result will be the forfeiture of all stock upon which the assessments are not paid, which will then be sold at auction for whatever it may bring. The inability of the stockholders' ccmmittee to secure possession of the stock held by the Denver bank practically blocked all efforts to bring about the re-opening of the bank. Without this stock it was impossible to secure the capital to make good the impaired assets of the bank, and the probabilities are that no further effort toward re-organization will be made, although it is not impossible that some of the men who were interested in the old bank may form a ccmpany to have as its ultimate purDOBA, the incorporation of a new bank for Grand Junction. It is still problematical just what amount of money will be realized for the depositors from the hundred per cent assessment on the stockholders. The best that can be hoped is said to be a realization of between $35,000 and $45,000. No arrangements have yet been made for the payment of the first dividend, although there will be enough funds on hand with the next 25 per cent assessment to pay the depositors from 20 to 25 per cent. Tomorrow will be the end of the three months' periood since the closing of the bank. but the legal time for filing of claims does not expire until April 5, as the call for (Continued on Page 6.)

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EDITORIAL WALTER WALKER, EDITOR. THOSE DEPOSITORS' CERTIFICATES SENSIBLE MOVE UITE a little traffic is going on locally in depositors' claims ARE glad to note a tendency among the local high schoo Q W or certificates against the Mesa County National Bank. Cergirls to follow the plan adopted this year by many hig tain people are endeavoring to purchase these certificates at very school graduating classes concerning the expense of graduation low figures and we have heard the argument used more than once gowns. that a "depositor had better sell his claim or certificate for a little Inexpensive graduating gowns should be the rule in all publi than to wait a long time and get nothing." schools. There are some thirteen hundred depositors interested in the closed bank and every one of these depositors is being solicited to sell his certificate at a very low figure by those speculating in the same. SENTIMENT OLD AND NEW The Sentinel believes that the receiver will be able to pay not Things Worth While Picked up Along the Way, Some From Pens less than forty-five cents and perhaps as much as sixty cents on the Long Ago Laid Down - Some From Pens of These Later Days dollar on these déposits and the first dividend will probably be paid within a comparatively short time. Therefore, we believe that the depositor who relinquishes his claim for twenty cents, MAKES ALL THINGS EVEN twenty-five cents, thirty cents, or even forty-cents on the dollar is making a mistake. (BY BYRON.) Don't take just anybody's word as to the value of these claims. Investigate fully before you sell or trade your deposit cer"Time at last makes all things even, tificate. And if we but watch the hour;

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Conductor Hugh Gallagher of the Grand Junction-Montriose passenger run, took a lay-off for a day or so the fore part of this week and came up from the Mesa county metropolis on Monday to look after his ranch and Hugh other interests near Delta. states that business conditions in Grand Junction are now much better than they were for a time following the failure of the Mesa County National bank.

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Conductor Hugh Gallagher of the Grand Junction-Montrose passenger run, took a lay-off for a day or so the fore part of this week and came up from the Mesa county metropolis on Monday to look after his ranch and Hugh other interests near Delta. states that business conditions in Grand Junction are now much better than they were for a time following the failure of the Mesa County National bank.-Delta Independent.

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Word has been received here that Francis Chapman, temporary receiver of the Mesa County National had been appointed temporary receiver for the American National Bank of Caldwell, Idaho.

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Francis A, Chapman, who was temporary receiver for the Mesa County National Bank, stopped off this morning on his way to Caldwell, Ida., where he has been appointed receiver for the American National Bank of that city. He will leave tomorrow night.

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In anticipation of the sale of the furniture and fixtures of the Mesa County National Bank Receiver Tobin has had the property appraised by a committee composed of Benton Canon, A. T. Gormley and C. C. Lamb.

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NEW BANK IS t a SOON 10 BE t OPENED HERE Three Different Groups of Financial Interests Figuring on 1 Location in This City. That Grand Junction will soon have a third bank. following the sale of the fixtures of the Mesa County National bank, is the opinion of Receiver J. J. Tobin of the closed institution. Three different groups of financial men have been interested in the fixtures, which probably will not be moved, but will be used for the opening of a new institution. Telluride, Glenwood Springs and Denver and local parties are all interested in opening a new bank in Grand Junction. and the approval of the courts of the sale of the fixtures of the Mesa county bank will be followed by an early announcement of the plans for the new institution. According to Receiver Tobin, the men who asked to have the fixtures appraised so that they might buy them are amply able to finance the new institution. and local men will be permitted to take only small blocks of the stock. In case of the successful opening of a new bank. it is not improbable that the government will receive an offer for the remaining assets of the Mesa County National bank. There is necessarily delay in ordering a distribution of the assets now on hand," said Receiver Tobin this morning, because of the additional burden imposed upon the comptroller of the currency and other departments at Washington in the reorganization under the new banking system. That has been responsible for some of the delay in securing consideration of the affairs of the local institution. Now that the preliminary details of the new law are out of the way more consideration will be given these purely local affairs. A number of witnessed called to appear before the federal grand jury in connection with the failure of the local bank. will leave tomorrow for Pueblo. The witnessed have been subpoenaed to appear in Pueblo Wednesday afternoon.

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John J

Tobin, receiver for the Mesa County National bank, returned last evening from Denver, where he has been attending the legislature.

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COLORADO BANKER PLEADS GUILTY ORSON ADAMS GRAND JUNCTION FIANCIER HELD ON SIX COUNTS Denver, June 8. Arson Adams, former president of the Mesa County National bank of Grand Junction, Colorado, today pleaded guilty on 50 counts of a grand jury indictment returned several months ago, containing 82 counts charging mis appropriation or to bank's funds. Judge Robert F J. Lewis, Seventh United States district court, pronorabed sentence of six years If the federal penitontary, OBM each count, sentence to run concurrently. The remaining counts of the indictment weer nolle prossed. Judge Lewis and many of the spectators sat in court with tear-dimmed eyes, as Harry Kelly, district attorney plead for leniency, stating that Adams was an "empire builder" and had gained no personal profit through his misdeeds, which, he said. were not committed with criminal intent. The bank was closed November 28, 1918, by the comptroller of the currency, but later was re-opened. The institution was capitalized at $100,000 with a $35,000 surplus and $450,000 in deposits.

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BANKER GETS SIX YEARS Admits Misappropriating Funds of National Bank in Colorado. Denver, June 9.-Orson Adams, former president of the Mesa County National bank of Grand Junction, Colo., yesterday pleaded guilty to 50 counts of a grand jury indictment charging misappropriation of the bank's funds in the federal court here. Judge Robert E. Lewis pronounced sentence of six years in the federal penitentiary on each count, sentence to run concurrently. The district attorney said Adams had gained no personal profit. The bank was closed Nov. 28, 1913.

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RECEIVER TOBIN TRUST that no provision of the currency act will make it W1. necessary for the retirement from the receivership of the Mea County National bank, before all the affairs of that bank are adjusted, of Senator John J. Tobin. We know that no failed bank had a more conscientious and satisfactory receiver than Senator Tobin has proven in the case of the local institution. He has worked effectively, tirelessly and earnestly to conserve the interests of all who lost by the failure of this institution. Truly he is the right man in the place, as all who have had dealings with him in his capacity as receiver will gladly testify. Under the new law a general receiver in each reserve district may have charge of all failed banks but we are hoping that this will not necessitate the retirement of Senator Tobin. We are convinced that no man could realize any more for the depositors on the assets of the failed bank than Senator Tobin and we have our doubts if any man could realize quite so much.