Contemporaneous reports cite alleged embezzlement/mismanagement by former president T.K. Irwin as the cause.
Events (2)
1.May 21, 1912Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reported mismanagement and alleged embezzlement by former president T.K. Irwin led to insolvency; directors announced suspension and said depositors would be paid.
Newspaper Excerpt
The La Plata county bank of Durango has suspended business.
Source
newspapers
+4 days
2.May 25, 1912Receivership
Newspaper Excerpt
Charles Schultz, cashier of the Laplata County bank which closed its doors last Monday, was appointed receiver of the bank yesterday.
Source
newspapers
Newspaper Articles (16)
1.May 21, 1912The Topeka State JournalTopeka, KS
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DURANGO BANK CLOSES Liabilities Are Considerably in Excess of the Assets. Durango, May 21.-With liabilities of $102,633, capital of $25,000 and deposits of $566,977, according to the last report of the state bank examiner, the La Plata county bank of Durango has suspended business. The directors today issued a statement that they would pay dollar for dollar. The bank examiner's report places the loans and discounts at $69,899, bills payable at $17,721 and undivided profits of $2,945
2.May 21, 1912The Daily SentinelGrand Junction, CO
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DURANGO BANK FAILURE CAUSES BIG SENSATION Durango, Colo., May 21.-The LaPlata County Bank of Durango, with a capital stock of $25,000, suspended business yesterday. At the last report of State Bank Examiner Pfeifer, the total amount of deposits was $56,977.58; bills payable, $17,721.03: undivided profits, $2,945.08; loans and discounts, $69.889; real estate, $7,250: furniture and fixtures, $4,000: with total liabilities of $102,633.69. Charles H. Snyder is president and Charles H. Schutz cashier. C. A. Ball, a local jeweler, and the president and cashier are the directors. A statement was issued stating that the directors would be able to pay dollar for dollar. T. K. Irwin, former president of the bank. is charged with gross irregularities in the conduct of the institution, and his mismanagement is said to be the cause of the failure. He is now in Texas, and is defendant in a suit charging embezzlement of the bank's funds. The Durango branch of the B. P. O. E. has about $2,000 on deposit in the bank. The other depositors are small home owners and local business men.
3.May 22, 1912New-York TribuneNew York, NY
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COLORADO BANK SUSPENDS. Durange, Col., May 21.-The La Plata County Bank of Durango suspended business to-day. Liabilities of $102,633, capital of $25,000 and deposits of $56,977 were announced. Directors said depositors would be paid in full.
4.May 22, 1912Omaha Daily BeeOmaha, NE
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Durange Bank Suspends. DURANGO, Colo., May 21.-The La Plata county bank of Durango suspended business today. Liabilities of $102,633, capital $25,000 and deposits $56,977 were announced. Directors said depositors would be paid dollar for dollar.
5.May 24, 1912The Washburn LeaderWashburn, ND
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Colorado Bank Suspands. Durango, Col., May 22. - The La Plata County bank of Durango suspended business. Liabilities of $102,633, capital $26,000, and deposits of $56,977 were announced.
6.May 25, 1912El Paso HeraldEl Paso, TX
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Bank Receiver Appointed. Durango, Colo., May 25.-Charles Schultz, cashier of the Laplata County bank which closed its doors last Monday, was appointed receiver of the bank yesterday. Its assets are $89,000 and its liabilities $62,000. State bank examiner Pfeiffer left for Denver yesterday.
7.May 27, 1912Semi-Weekly HeraldDurango, CO
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SCHUTZ APPOINTED RECEIVER. Friday, the state bank commissioner appeared before the district court and filed a complaint against the La Plata County bank, asking for a receiver, whereupon the court, being fully advised as to the conditions of the bank and the recommendation of the large depositors in the bank, appointed Charles H. Schutz as the receiver. This appointment will meet with the general approval of all parties directly or indirectly interested in the bank. It is a fine compliment to Mr. Schutz to be named as the receiver of the bank. No person can possioly do more than he to look after the interests of all. Absolute faith is placed in him. Besides no person is more interested than he in having the bank pay dollar for dollar. Not often is the cashier of a bank named as receiver for the bank. The many friends of Mr. Schutz and his associates in the bank will be interested to know that the bank commissioner stated Lefore the court that he found the affairs of the bank in good condition.
8.May 29, 1912Manchester DemocratManchester, IA
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Colorado Bank Suspends. Durango, Colo., May 23.-The La Plata County. bank of Durango has suspended business. Liabilities of $102,633, capital $25,000 and deposits $56,977 were announced. Directors said depositors would be paid.
9.July 11, 1912Semi-Weekly HeraldDurango, CO
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#: #: #: #: #: #: #: : #: #: #: ** #: : #: It CREDITORS OF THE LA PLA- : #: ** TA COUNTY BANK TAKE #: #: NOTICE. #: :: #: That all claims must be filed : #: promptly; that saving depositors ** #: will be paid in full at once upon #: #: presentator of claims at my of- :: #: #: fice. #: CHARLES H. SCHUTZ, ** #: Receiver for the La Plata Coun- ** 4t #: #: ty bank. #: #: #: #: # # $ #$ # # # #: #: #$ $8
10.July 15, 1912Semi-Weekly HeraldDurango, CO
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#: ** : #: #$ ** #: #* #: #: #: #: :: #* : #: CREDITORS OF THE LA PLA- #: #: #: TA COUNTY BANK TAKE #: NOTICE. If #: #: # That all claims must be filed #: #: promptly; that saving depositors #: #: will be paid in full at once upon # #: presentaton of claims at my of- #: #: #: fice. CHARLES H. SCHUTZ, #: #: #: Receiver for the La Plata Coun- #: 4t : #: ty bank. #: #: #: #: # #$ #: #: #: #: #$ #: #$ #: #:
11.March 29, 1913The Colorado StatesmanDenver, CO
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Elks Get Cash for Bank Depositors. Durango.-The Elks lodge has won a victory in the District Court. Through the backing of the lodge, the receiver for the La Plata County bank has been forced to sell the assets of the bank within thirty days. As a result Henry Schultz, father of Receiver Charles Schultz, has agreed to buy the assets and pay depositors in full. The Elks had about $4,000 on deposit in the bank, and by working with T. K. Irwin, former president of the bank, who is under arrest charged with embezzlement and misappropriation of the bank's funds, they succeeded in making a showing to the District Court. The court ordered payment to depositors.
12.April 2, 1913The Daily SentinelGrand Junction, CO
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ELKS CAUSE PAYMENT OF QURANGO BANK DEPOSITORS Durango, Colo., April 2.-The Elks lodge has won a great victory in the district court. Through the backing of the lodge, the receiver for the La Plata county bank has been forced to sell the assets of the bank within 30 days. As a result Henry Schultz, father of Receiver Charles Schultz. has agreed to buy the assets and pay depositors in full. The Elks had about $4,000 on deposit in the bank, and by working with T. K. Irwin, former president of the bank. who is under arrest charged with embezzlement and misappropriation of the bank's funds, they succeeded in making a showing to the district court. The court orderd payment to depositors.
13.July 17, 1913Semi-Weekly HeraldDurango, CO
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An order confirming the sale of the assets of the La Plata County bank to Henry Schutz was issued by the district court today. The prospects for all the bank's business to be closed so the receiver may be discharged within the week are favorable.
14.June 15, 1914Semi-Weekly HeraldDurango, CO
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District court ended a busy session yesterday evening shortly after 6 o'clock. The following cases were continued for the term: Altman-Tayfor company vs. Forest; Gross vs. La Plata Gold Mining company; Graden, trustee, VS. La Plata G. M. company; Hurley VS. Hurley; Sawyer & Garster vs. Berri, receiver for La Plata G. M. company; Curtis Brothers vs. Independent Hardware company; Lewis vs. Birkner. Defaults were granted in the case of Hans Aspaas vs. A: W. Robbins and Buchanan VS. Smith, in the last named the judgment rendered was for $365.52. In the case of Charles Schutz, receiver for the La Plata County bank, VS. W. H. Davis, judgment was rendered for $89.69, less 60 per cent exemption, with an order that the D. & R. G. pay the amount, $35.98. Evidence was taken in the matter of the application for change in the point of diversion in certain of the water and water rights in the Animas river. Application for a new trial was made in the case of Perkins and Edwards VS. Wisemann. Judgment was rendered for the plaintiff in the case of Henry Schutz VS. William and Gurney Alexander. In the case of the Royal Coal and Coke company, judgment was rendered in favor of Dave Logan for $3,000, Otis-McGirr, $59.05; Graden Mercantile company, $1.200.29; Durango Mercantile company, $22.05 and employes of the company received judgments which totaled over $2,000. The next session of court will be held where there are sufficient cases on the docket to occupy attention for an entire day.
15.November 12, 1914Semi-Weekly HeraldDurango, CO
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Civil Docket for November Term The civil docket for the November term of districte court which convenes in this city Monday, November 16th, follows: 1166. Edith McCloskey et al (MeCloskey & Moody) vs. 13. W. Ritter et al Ritter & Buchanan). Partition. 1338. Samuel M. Campbell (C. A. Johnson et al) vs. Rio Grande Southern railroad (MeCloskey & Moody). Damages. 1360. Jas. J. Gorman et al (MeCloskey & Moody) vs. Edith Mining company (C. A. Johnson). Adverse. 1615. Aultman & Taylor Machinery company (Perkins & Main) vs. Reese Forrest (Russell & Reese). Money. 1666. Finney Jones (Ritter & Buchanan) vs. Mastodon Group Mines company (E. H. Park). Money. 1702. Thos. M. Petty et al (Russell & Reese) vs. Chas. Thurlow et al (Ritter & Buchanan). Condemnation. 1714. La Plata Ditch & Reservoir company (Ritter & Buchanan) vs. Thos. M. Petty et al (Russell & Reese). Injunction. 1924. Joseph Dvorak (Russell & Reese) vs. Vacalve Dvorak et al (Ritcer & Buchanan). Money. 1926. Teresa Strappelli (W. C. Davidson) vs. Angelo Dubaldo (Mollette & Clements). Injunction. 2032. Francis J. Fisher et al (J. P. Brockway) vs. Pioneer Construction company et al (Mollette & Clements). Money. 2038. La Plata Gold Mining company (Richardson & Hawkins) vs. Willard C. Cole et al (Mollette & Clements). Change venue from district court of the first judicial district. 2041. John Gross (Mollette & Clements) vs. La Plata Gold Mining company (McCloskey & Moody). Money. 2086. T. C. Graden, trustee (McCloskey & Moodly) vs. La Plata Gold Mining company (H. Ag Lindsey). Receiver. 2184. Charles H. Schutz (McCloskey & Moody) as receiver of the La Plata County Bank (Russell & Reese). 2189. Duke M. Farson (Perkins & Main) VS. Loftus Construction com-
16.December 6, 1915Semi-Weekly HeraldDurango, CO
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District Court. In the district court this forenoon two judgments were entered in favor of Charles Schutz as receiver of the La Plata county bank vs, T. K. Irwin, one for $2,992 and the other for $3,037.30. A judgement of $103.80 against the Archuleta Mercantile company in favor of the Ciocca Lombardi Mining company was entered.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
