J. S. Curtiss & Company (El Paso, TX)

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VOLUNTARY ACTION TO SAVE DEPOSITS DIRECTORS CLAIM

Arrest Of Harry Henderson Started Continual Drain On Bank's Assests, Officials Say; Bank Not Under State Guarantee System Now

American Trust Savings bank, which did not open its doors Thursday morning, is absolutely solvent, according to statement issued by officers and directors of the institution shortly after the closing. Directors also gave out the statement that the bank expected to pay the depositors in full. Directors of the American Trust & Savings bank announced by bank officials on January 11, are follows: M. W. Borders Kansas City, H. Rogers, Crowell, Borders, Jones, George Collett, Walter H. Muzzy, Harry Henderson and James Borders. Heavy withdrawals and persistrun the bank, the arrest Harry Henderson, former vice president, on embezzlement charges, are held responsible for the bank failing open for business the usual This the directors said, continued spite the fact and protected the alleged defalcations of HenderThe amount involved in this instance was given by the bank rumor that the amount more than this thought have added impetus the said be an adopted son of Henderson, who pioneer Paso still jail in default bail. The statement, signed by James Borders. bank, on which names appear, which was given when bank failed the usual hour, extreme regret that every effort the this bank this by the for the volthe heavy and Harry the bank fully by surety bank reveal. regret the necessity temporarily the but action made which which We bank tection depositors, better than depositors treated appearing this Crowell, Rogers, Muzzy. Rogers, the best obtain, the bank handled to the best advanhave been said "that there assets to pay positors and, perhaps, something to the the bank Thursday notices, the avenue and Texas bank has been closed by the board 27th day January By order the board the American Trust & Savings What first attracted passers-by

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Heard On The Corner

What does all mean?" That the query of nine of every read the notice the doors the closed American Trust Savings bank. The questioners turned police officers other bystanders. body seemed to understand just what the notice did mean. understand that the money will tied up only for two three months and then get every cent,' an optimist told group at the bank door. and starve death by that pessimist in the group replied.

One man was taking the closing the bank 100 percent in Paso bank he said. the City der National and now this one."

The name of Harry Henderformer vice who the county jail on on the lips of practically everybody. natty suit and is cheerful, one man few weeks won't be cheerful and won't be wearing natty suit by any means, on account of this."

Displays of emotion at the bank door One with little girl at her burst into tears walked hurriedly away after reading the note. Police reported that other woman broke down after receiving the news at the doors.

A stream of humanity milled way the doors the day. workers left offices stores for lunch. Police were forced to clear the sidewalks time and again. youth came to the bank armed with pencil and paper. painstakingly copied the notice the door word word. boss sweating blood," he told reporter dashed away down the street.

Instead of "Good or "How you around the bank acquaintances met, and "How much did they get you

Many people stood around the bank hours, if hopeful doors swing open moment for resumption Others spent hours street corner, seeming curiosity watching the crowd. was the fact that all shades over doors windows were down oclock, the hour the bank should opened. Then the nocame into view and several walked up closer to examine these. Soon crowd began gather made their appearance. These took their stations at intersection Mesa and Texas and, those the crowd bewas only walks time. Many of those in front of the bank were Some these stated had made deposits as late as About year the ago, American Trust bank the fund under the bond system, under which operating ever The providing for the latter gave state banks option under guarantee measure or adopting the Under the bond system, state banks stated, their by giving bond equal to their capital stock. stock is cording the statement the deposits totaled $3,151,Most of the state banks, it now operating under the system.

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EL PASO CLOSED BANK HAS OFFICIAL IN K. C.

The American Trust and Savings bank of El Paso, Tex., which M. W. Borders, 630 West Sixtieth street, is chairman of the board directors, failed to open its doors for business The failure, Mr. Borders said today, resulted from a slow run on the bank following the arrest on charges of Harry Henderson, former vice president, who is reported to have taken The bank. Mr. Borders said, is solvent and in no danger of assessing losses against the depositors. The embezzlement losses are fully covered by surety bonds, he said. Mr. Borders' son. James Borders, is president of the bank.

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GRAND JURY RETURNS NINE EMBEZZLEMENT INDICTMENTS AGAINST HARRY HENDERSON

American Trust Savings Bank President Expects To Pay Depositors 100 Cents On Dollar.

BLAME EX OFFICER FOR CLOSING DOORS

Paso Financial Institu tion Volun tarily To Busi ness, Officials Claim.

PROVIDING the assets are handied properly, depositors of the American Trust & Savings bank. which closed its doors yesterday, will receive 100 cents on the dol-

This the statement made last night directors the James Borders, president. Directors officials serted the bank solvent. that action closing decided order voluntarily liquidate the Heavy withdrawals and run the since arrest Harry former president the jail charges were blamed by bank officials their failure open for business morning. former teacher of the Goodfellowship class Trinity Methodist former chairman the board the Sunday school council and direc-

THE TIVOLI LOSES ONCE: LTHOUGH Juarez bling hall never loses games, dropped $100.the game finance with the American Trust Savings when latter closed Its yesterday marning. current regardsome high others were less than half of $100,000. was arrested about morning January and the time bank opened busi January officials Despite the fact that bank officers embezzling and the shortage pany heavy his directors and bank promi and the National Border failed shortly and First public the morn few minutes after the bank Doors closed the windows when the fol notice was placed on the door: has closed the board directors 27th liquidating order hoard of directors the American Trust Savings Bank." after statement given Borders and signed statement follows: extreme regret every effort the bank this action by the board for the purpose untarily solely and fully protected by surety bonds bank absolutely will reveal. sincerely regret the necessity the and but been made necessary for which sponsible the for better depositors Names appearing were Borders and Muzzy Directors of the bank nounced bank officials January follows: Kansas City, chairman: George Collett Walter (Continued on page column

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County School Salaries Delayed By Money Tieup.

The city has $95,388.34 deposited in the American Trust and Savings bank. which closed its doors yesterDave city that there would be delay in paying since the has funds other City deposits protected bond signed by James Borders, George Harry Henderson, Rogers Thonssen. County school cannot their present, cording Junuary addition partment will not able until checks janitors, totaling department of educa auditor, Austin investigate 31, the date of the funds signed by Borders, George McGregor and Hoover County Judge stated that had December cannot lose, since the funds county more than that amount the county pository bond signed are the school bond.

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Counts In cluded In Charges Formally Made Against Former Bank Official.

BOND IS ORDER OF COURT

Ex Sunday School Teach er Denies Responsible Of American Savings Bank

ESS than eight hours after the American Trust & Savings bank had closed its doors, officials blaming J. Harry Henderson, former vice president of the institution, for their failure open for business 10 o'clock yesterday morning, the El Paso county grand jury returned nine charging Henderson with embezzle ment. The indictments, containing in 27 counts, were returned against the former chairman of the board Trinity Meth church, shortly yesterday, all-day the Each the which total the first which the and second charge bezzlement money from state bank and trust company. misapply money state and trust company. and abstracting money state company. Misapplication funds charged the indictments, has to county school Bond each $2,500 less than the when home the valley the night Hender had intimated attempt would be made furnish Judge Howe whom the grand had been office several awaiting The grand jurors first asked the judge chambers about that would ready report About notified that they would meet lunch would probably From that time simply the investi work. Members before the grand jury during talking Times reporter. did not Walker Morrow had taken regarding securing bond that know application for secure release from custody made. stated last night that had make with the case this time When questioned regarding the statement the board American Trust Savings which they said closing the institution due solely withdrawals persistent the Henderson smiled replied: him. human pass the buck. could held sponsible the $4,000,000 Institution. they charge and hold bond of on do imagine that friends their funds from bank expected. very great number friends taking their money could bring about closing. the remaining the might disaster connected the 30 days. amusing attempt place blame closing the upon note inference in the press might have sponsible for the failure National Border bank. left that bank time before

BALLOON MISSING.

Jan. that brilliant young pilot flight has been frozdeath the his merey the winds, the government broadeast appeals report traces the missing dirigible.

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President Of Financial Institution Which Closed Its Doors Thursday Is Optimistic.

MOVE TO PREVENT TIEUP OF DEPOSITS

District Attorney Denies Trial Of Harry Henderson On Embezzlement

BELIEF that the American Trust & Savings bank. which closed its doors Thursday morning. will open for business the near future was expressed last night, folannouncement by James that with that aim in following statement sued Borders regarding the reopening of the bank: "Negotiations underway the present time reopen American Trust bank. of desired, only the positors bank, but by citizens Paso. certainly be to the terest of the depositors, sure they with will avoid the funds for length to the general Mr. Borders's statement was made following the posting yesterday notice the doors the bank stating Institution charge Charles state banking represented here H. bank state examiner. Mr. Borders refused to veal the plans which said derway reopen the was learned that they proved other officials and direcMr. Borders refterated his state. ment made when the bank closed that and issued statement savings deposits, which total deposits amount protected the latter United States bonds. county warrants. cash and first mortgage estate The statement indicates that there surplus assets protecting savings depositors of the the bank closed its doors, Mr. Borders announced that assets handled properly de positors would receive cents on Heavy withdrawals and persistent the bank the Harry on charges for the bank officials about January 16. from the American Trust Savings bank. and since that has been the county from state bank. The heavy and run the bank started 17. and the bank doors Thursday that board rectors closing the institution to

NO DELAY SEEN IN HENDERSON

There trial Harry charge because closing the American Trust and Attorney Vowll reason There cases ahead cannot exact but would call The nine Indictments which returned the against (Continued on column 2.)

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INDICT OFFICIAL AS BIG BANK AT EL PASO FAILS

(Exclusive Republican Dispatch.) EL PASO, Texas, Jan. Harry Henderson, former of the American Trust and Savings Bank, charged in returned by the El Paso county late Thursday evening. The indictments, containing 27 counts, returned in connection the closing of the American Trust and Savings Bank at 10 o'elock Thursday morning. mer chairman of board of ards of Trinity Methodist church, is charged of money funds of state bank money from bank and The nine bills Involve total of $41,500 Henderson remanded in default of ball bonds fixed at $22,500. Henderson first arrested at home 16, charged run the morning after Henderson's arrest continued until the bank closed its doors officials of the institution after the bank's closing James Borders, president of and that depositors on dollar. the funds handled. The alleged shortfunds to be fully

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MANY LOCAL PEOPLE STUNG BY CLOSSAVINGS TRUST BANK, EL PASO

BASKETBALL

There were good games in the Pavilion night Alamo trouble in dethe Community Center girls game the Bennett was and Kitty which to for the and Burch guards. Laf the second school conquer the Las Both teams showed excellent team work which resulted in excepThe score to favor Cruces. Ross Raley and guards The of the evening endgame 22 victory for Cruces boys local boys showed of good fighting spirit, but unable break thru the strong de fense of the team for Tularosa will for doubleheader shall need the support every at us yell the victory. Saturday Feb. 5. there game Paso, the high Tigerettes play the girls of E1 high will the Cavalry team of the games 25c for both Friday nights.

The American Trust and Savings Bank of El Paso, its doors Thursday morning reasons signed by officials were that following Henderamounting $41,250 and his attendant there had but steady run bank by depositors had become uneasy officials closed the to protect the terests all depositors. There perhaps or sixty and the greater proportion them funds in the bank the time closed. alleged that they placed funds the American Trust Bank its claim guaranteed fund bank and that officials advertised the bank of placards in that from fund the fore part of and had substiJames Borders, of the states reopen be leges that will not lose Local people who have funds in the for part hopeful that all nearly funds and then depositor in the bank and not believe they large percent what they deposit of closing The history banks have closed very one. and generally reopened they have time restore confidence many are closed for the second

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From El Paso Post Three bank failures here in about as many years. No one prosecuted! No one looking out from bars other than those of other commercial institutions. The City National bank failure was so crude it looked raw. The City National paid depositors 48 cents the dollar. None of its officials was prosecuted. The most charitable thing you can say about the City National that it was officered by bunch of ignoramuses with hearts so full and heads so empty that they loaned money to every Tom, Dick and Harry who happened to be friend. They forgot that the money with which they were so free was not their money, but in many cases was the all of poor persons who had sweated lifetime for nestegg. The Border National is another glaring example of dumbbells trying run bank. We don't believe It is possible for any bank to be run more dumbly than was the City National, but the officers of the American Trust & Savings bank will give the old City gang run for first honors in dumbness. To the officers of the American add hypocrisy. They were too dumb, seems, to suspect until quite late that someone must using shovel in the banking room. They were hypocrites in that through omission they led part of the public to believe that the bank still was state guaranty fund bank. Depositors who put money in with the thought that the state guaranty fund stood behind the bank were fooled. Maybe the depositors only fooled themselves and maybe they were fooled by signs at the bank which said in great big letters: "A Guaranty Fund Bank."

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FORMER BANK TELLER HE TURNED OVER CASH AND SECURITIES TO HENDERSON

Pastor Urges Depositors to Accept Plan for Reopening You Think at All

DOCTOR EXPRESSES HIS FAITH IN BANK other of Borders to Add $10,000 to His Account, Telegraphs From Washington, the week-end developments augured well for the reopening of the American Trust & Savings bank at an early date. it was learned last night when bank officials announced that additional depositors have agreed the plan submitted to them last week. One El Paso pastor pleaded for the reopening of the bank from his and prominent added confidence to others which The Rev. Neal, of the First Baptist church, urged that the depositors accept the proyou think he said, build city center interest. We're together whether we want let's boost one another. "There big Dallas bank Other bankers runners and them. Dallas can break institution in it,' the banktold them. "The federal reserve bank truck brought $1,000,000 runcouldn't break the bank. they 100 banks would have closed the next would have been the erest blow Texas but absorbed following telegram celved Borders, president the hank, from his brother, Borders, Washington: hereby appoint you my proxy authority sign agreement account. Upon opening deposit additional $10,000. BORDERS." The letter received was in the report of the state bank examiner. your restrained me your In ther same spirit confidence and loyalty city's perity, herewith my signed of the depositor's contract. opinion that the Chamorginzation looking the interests the commercial and the Rotary, other commerwhich have like interests, last, but Committee the latter representing does, gation wealth, will unselfishly individuals, get squarely proposal with, say the least, their moral support In reply questions regarding the guaranty bond protection positors when the bank is reopened, Borders guaranty bond will still main force the reopening the American Trust addition to the guaranty Borders will deposit $410,000 the institution, to remain for at year. though M. Borders posits $410,000 in the bank. will still signer the anty bond. and this will him. $410,000 left on deposit though settle Harry Hendershortages before the year Borders will not withdraw the surely the bond within year specified the entire $410,000 shall remain deposit."

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Jim Reed the news columns for

Dr Wilson, city health offiyear the health partment the scope treatment against immunize every child in

Manuel M. Mascarenas, collecby American river might serious international complications. Mexguards orders to fire the United States any

Chester C. Courtney, senior border inspector: "Border have orders to unless they smugglers open fire. The border never started any firing across

Emilio Quiroz, Juarez city jailor: the Juarez jail painted. The offenders given speedy trials, and given opto obtain funds to pay their

FROM M. BORDERS. To the Editor The Since returning home have been of the response the depositors to the proposition to the American Trust & and thank you through the columns paper, only and the part but for co-operation from quarters, Including your good paper. that have such good start, let finish Let show world that Paso can the and of reopening bank loss plished would do than any other promote in El Paso the same time Paso its proper place the financial and world. would be sad reflection on the defalcations fully covered by surety bonds, would permitted destroy solvent of the bank willing do their They money whatgiven the preto than But that for naught unless the deposiThe only thing that the bank the the ready been by the make this bank quite that desire to in this great civic the appreciate that their do the sense of our the that will want ticipate civic want treated and upon the same basis. No one in El Paso should want this bank except upon such terms will positively insure its The posiif there possibility of its again being But with our wonderful start, there ahead make very that the by the depositors before the bank Whether and when this bank reopened depositors the bank the Paso. have implicit conboth. connection with this matter, would suggest matter should unand put idle behind and turn efforts constructive for Paso. Again thanking you our many friends for your and their hoping that possible this bank, the sooner the remain. Yours BORDERS. Kansas City, Mo., Feb.

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American Bank Reopens Doors; Many Depositors (Continued from page ple of El Paso have demonstrated spirit in cooperating them. absolute confidence in this bank. personal deposit shows what think of from personal standpoint and the deposit of not less than which make, will show what think of the from an official viewpoint. Dr James Richmond the put in $2500 have put Dr. Richmond, had had more is virtue not the human being but depositors, representing than $2,000,000 deposits of the Trust Savings bank, and who have, by the made opening have mani fested unselfishness and loyalty their home town their which without "Representing they do finanthe bank than four times stock, assume these same loyal and women continue their support to the in they vitally interested, more quickly discharge its to resume its place needed in this Kelly, stepped made substantial the things El which Mr. Kelly the manner reopening. cities the Paso the best United States. regrettable that show as much the city do outsidconfidence as latter large sums in of the Sherrod LumNixon, the ber made stated company deposit would the many who be am bank, said one best things that happen for Paso. demIncidentally, onstration that cooperahave this the beginning the which will mean for this who jumped into Oscar the with him by staging the recent was first Pasoan to open new account with the bank. "The officers of this bank have said Mr. Strobel. "They never ran away at any time and for that reason with them. like the spirit they demonstrated. It is the spirit which Mr. Strobel wrote out check for turned over to Jack Donahue, assistant cashier. "Please place that credit Strobel Donaup an account. business people shown the spirit that the officers this bank shown them think Paso should feel the same "The best thing that could have happend for this Art Wilke. putting all could scrape this Anthony Sun Drug company, put in three deposits. Isaacks made deposit of $600. W. Still put like amount. W. made $2400 deposit. There were number at the dows immediately after the bank opened drew out all they permitted under the agreements, but deposited more than offset these. There many did not take the total which they could have. just had to have some money," remarked of surprising that people taking Borders. of them have been without for 30 days." There number at the note window on their notes. Among the wires from Traypresident of the American Bankassociation of the First National bank Chicago. Mr. has been close personal friend Borders years. His Congratulations business.' Col. Morris. head of Morris company the Morris interests, wired from "Awfully glad Have deto hear your $1000 credit with your First National bank here. Kindly open account in my name with your Ebbott, vice president of the Seaboard National bank New York, wired: "Glad have your wire that front doors are again business. accept open assurance of good will of this instiStandish Hall, president of the Wichita, was of the several out of town came in to congratulate did the other banks send flowers, but these made personal call at the bank to conthe officers diretcors on the made in the American Trust bank and the future subject check at 100 cents time, James Borders said. partial withdrawal plan them. Deposits in the bank today nearly million greater than when the bank closed and $600,000 that amount represents capital brought into El Paso, officials changes in the officers of the president the Abdou Produce company and owner of the building which the bank has to the board of directors sistant cashier Henderson has as that the guaranty fund bond plan safeguarding checking deposits by the state legislatuer Bor ders stated deposits Trust bank are under Under this plan stockholders the bank are liable for twice their amount capital stock. The bank since March, 1925, has been under the guaranty bond plan. Officers the bank signed $300,bond guaranteeing depositors. In repealing the guaranty fund guaranty bond for the guaranty bond to run for one year. Mr. Borders does not know whether means that the bond continues force from the time was signed or for year after expires. right now have $410,000 in than when Mr. liable the bond and have total of $710,000 That the bank, don't long that runs this open of protection that bank State law in bonds, bonds, or first ment state estate bonds which real the estate has double the value depositors cannot penny in bank because feature. They would have been off of the bank had closed.' Mr. Borders made public letter from board of directors Chamber that duced by P. Putnam, adopted the El Paso Chamber Commerce and the Trust the are doing Paso the that that all the and assist directors the American Trust bank reopening doors for Harry Henderson, former vice president the bank, arrested January 16 on charges of embezzle Officers of the bank at once anthat trans bonds, and that the surety bank's would be no way affected. deposits and days after Henderson's arrest bank's doors were closed the directors with declaration that this was only for the The solvency of the institution reasserted. bank would reopen was first Mr Borders 29. that time, the the and state staff have been working constantly on the plan.