Citizens National Bank (Odessa, TX)

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Charge Pending Reorganization Plan; Statement Made by President

Withdrawals and Heavy Threatened Force Bank to Shut Down

Heavy withdrawals over period of several days and rumors floatwide territory and ing over spread largely by irresponsible parties finally culminated Saturday afternoon in threatened run on the Citizens National Bank of and about three o'clock Odessa, the bank was closed. Monday morning, the bank examiner having arrived on the scene, the bank opened and plans were started to reorganize the institution. Showing their absolute confidence in the personnel of the institution, and exhibiting that Westof standing hitched and ern spirit backing their institutions to limit, Odessans flocked into the bank in steady stream Monday with deposits ranging from very few dollars up into thousands. However, that uneasy feeling among certain element still per-' sisted, and early Tuesday morning the board of directors passed resolution closing the bank placing hands of Comptroller's department pending the completion of reorganization plans.

Following is an exact copy of the notice as it appears on door of the bank at this time: "This bank under the direction of the Comptroller of the Currenin charge Hawkins, National Bank Examiner. Closed by resolution of the tors. "April 14, W. Hawkins, National Bank Examiner. The following statement issued by Henry Pegues, president of the institution, Thursday morning for publication:

Because of unforeseen conditions, over which had control. heavy withdrawals within the past thirty days have made it advisable to rethis institution so organize that it may continue to serve the community with safety. In order that this reorganization may be perfected within reasonable length of and to interests of all concerned, the board directors, in meeting Tuesday, passed National Bank Examiner, during this period of reorganPlans for this reorganization are progressing and it our opinion that details will be worked out within reasonable length of time so that our depositors will be fully protected so that the bank will and re-open tinue its service throughout the coming years. occasion thank our host of loyal trons and friends for their expressions of confidence have shown in morning rumor had stated the bank had failed. is our understanding that these deposits of Monday will be returned under regulations from Department at Washington. HENRY PEGUES. 16, 1931.

The Citizens National Bank was organized in 1906 and has that time served wide territory in this great section and has played most in the of the cattle, oil and development other industries of the entire section. Last year it absorbed by purchase the Odessa National Bank, and the last published statement, March 31, gave the following condition: Capital $50,000, surplus undivided profits 90, Government bonds, $35,000, other bonds $28,938.58, deposits rediscounts Loans This statement compares favorably with that of bank in this any section, comparison will show. The bank it seems to the writer sound, and no reason for to be disturbed except for people the inconvenience that temporary the present situation causes.

MOVES BACK TO ODESSA AFTER ABSENCE 37 YEARS

Otterman, who left OdesA. man 1894, moved sa, young back to the this week and put city in business the south side of on town. Many old-timers will remember the Otterman family, one of the first in this section. Mr. Otterman came here in 1887, with his father, John W. Otterman, and family. They settled on the place now occupied by Chas. Judkins, just north of Odessa, and lived there until 1892, when father left. As Mr. Otterman has been kind to us some informaenough give tion Odessa as he knew concerning it then, and remeniscepces of early here, we will carry happenings feature article on this line in our next issue.

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Odessa Men Ask Banking Charter

March plan ganize bank disclosed by Judge Hendricks. known the National Bank Odessa, Hendricks and Skinner, vice president have with the closed Citizens National bank Last May Citizens National bank closed doors. The bank, according to Hendricks, will open later than April and probably occupy the Citizens National bank building. Hendricks, Skinner George Waddell, Armstrong applied charter. Odessa been without institution facilities since last May.

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Process of Liquidating Insolvent Banks Which Is Hoped to Be Used Here Is Working In Many Places

Odessa citizens should find of particular interest a recent report from the office of the Comptroller of the Currency, on the liquidation of insolvent banks over the country by a process which is hoped to be put in force here within the next few months, on the old Citizens National Bank of Odessa, which has been in a receivership for the past several years.

The report says:

The Comptroller of the Currency has completed the liquidation of 21 insolvent national banks during the month of February, 1932, making a total of 1,034 such banks completely liquidated or restored to solvency since the first failure of a national bank in 1865.

Total disbursements to depositors and other creditors of these 1,034 receiverships, including offsets allowed and distributions to stockholders in restoration of banks to solvency, aggregated $391,444,444, or an average of 67.18 per cent of the total liabilities of the banks at date of failure. Dividends paid to unsecured creditors of these 1,034 banks, including those restored to solvency, averaged 59.48 per cent of their claims.

The First National Bank of Redmond, Oregon, was placed in receivership on February 12, 1931, and disbursements, including offsets allowed, to depositors and other creditors aggregated $145,859, which represented 54.8 per cent of the total liabilities at date of failure. However, secured and preferred creditors received a considerable portion of these disbursements and dividends paid unsecured depositors amounted to 30 per cent of their claims.