884. San Bernardino Valley Bank (San Bernardino, CA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 21, 1931
Location
San Bernardino, California (34.108, -117.290)

Metadata

Model
gpt-5-mini
Short Digest
6052407f184759be

Response Measures

None

Description

The bank failed to open Dec 21, 1931 and a state banking examiner/receiver took charge; records show liquidation, assessments, suits, and no evidence of a depositor run prior to suspension. Thus this is a suspension followed by permanent closure/receivership (suspension_closure). OCR errors in articles corrected (e.g., comm'ssion -> commission).

Events (6)
1. December 21, 1931 Receivership
Newspaper Excerpt
John McFaul, chief of examiners of the state banking commission, took charge of the bank's affairs today. He said it would open to receive claims within 10 days after appointment of a receiver.
Source
newspapers
2. December 21, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Lack of cash resources and frozen assets forced the bank to close and accept no more deposits.
Newspaper Excerpt
The San Bernardino Valley bank ... failed to open for business today. At a meeting of the bank's board last night, the move was decided upon
Source
newspapers
3. January 8, 1932 Other
Newspaper Excerpt
Receiver Robison ... announced that the bank will open for the filing of claims next Monday morning at 10.
Source
newspapers
4. April 12, 1932 Other
Newspaper Excerpt
Stockholders in the San Bernardino Valley bank notified of 100 per cent assessment on their stock ... part of the process liquidating that institution.
Source
newspapers
5. April 23, 1932 Other
Newspaper Excerpt
Valley Bank to Ask Collections ... Edward Rainey, state superintendent banks, yesterday filed suit ... to foreclose on three promissory notes.
Source
newspapers
6. June 7, 1932 Other
Newspaper Excerpt
Clerical forces of Receiver A. Q. Robison have completed the task of classifying claims against the San Bernardino Valley bank ... preparing the court application ... about 30 days before it possible to make the first disbursement to creditors.
Source
newspapers

Newspaper Articles (8)
1. December 21, 1931 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, December 21, 1931

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Article Text

SAN BERNARDINO BANK FORCED TO CLOSE ITS DOOR SAN BERNARDING Cal., Dec. 21. (U.P.)-The San Bernardino Valley bank, with branches in Needles and Barstow, failed to open for business today. At a meeting of the bank's board last night, the move was decided upon, an official statement said. The bank has commercial and savings deposits of $978,417. with $58,586 of city and county funds. It is capitalized at $175,000. A group of men and women wept silently as they stood at the doors of the bank and read a posted statement, signed by Jonas E. Woods, vice-president and cashier The statement said the bank had decided to accept no more deposits. and that if sufficient time were given it to liquidate its assets. the depositors would "realize substantially" on their accounts. John McFaul, chief of examiners of the state banking comm'ssion, took charge of the bank's affairs today. He said it would open to receive claims within 10 davs after appointment of a receiver. Lack of cash resources and frozen assets were blamed for the bank's condition.

2. January 8, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, January 8, 1932

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Article Text

OPEN DAMAGES Robison Announces Claims Be Accepted Against Valley Institution Monday Receiver Robison, of the San Bernardino Valley bank, anlast night that the bank will open for the filing of claims next Monday morning at 10. This therefore notice depositors that beginning Monday they may file their claims against the closed institution. During the last week and since the of the the ime has been spent in listing the ank's ing almost and familiarizing the receiver with the Under the law. four months allowed for the filing of claims, and not likely that any dividend can paid until the expiration of that time limit though there no official statement on subject Both the receiver and Bank Rainey. who has been in town part the week, have declined any the bank or its possibilities. further than the liquidation will be expedited as rapidly as possible. Receiver Robison left for BarsNeedles last familiarize himself with conditions two of the Valley bank in places, which when the head was closed three weeks ago. Lumber Company Ordered to Youth In Traffic Collision The five women and seven men comprising superior court jury which heard the three-day suit of Henry Sieck. 21 years old. against the Co. and Ray Torrey, truck driver, yesterday turned verdict ordering the defendants to pay $1,879 damages to young for injuries he sustained when the automobile he driving crashed into lumber truck and trailer had stopped in the center of Waterman avenue out lights warning signal at Nov. The plaintiff had sought $20,000 head injuries nervous shock He was represented by AtMcCloskey and was torney opposed by Fred Wilson and Elber H. Tilson. Judge Warmer presided during the trial of the suit. and the jury consisted Blanch George B. Sloan. William Parsons, George W. Hannah Mrs. Charles Ruth Mrs. James Wheat and Robert Frady. When the Titanic sunk. April 15. 1912. 700 passengers saved owing the prompt response the for assistance.

3. April 12, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, April 12, 1932

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Article Text

Notices of 100 Per Cent Levy Mailed by State Official To All Shareholders Stockholders in the San Bernardino Valley bank notified of per cent assessment on their stock. part of the process liquidating that institution. By registered mail notices sent shareholders last night by Hankey, in charge of the bank for Receiver Robison, the order ing sent out by State Bank Superintendent Rainey, from his San Francisco office. When he confirmed the news of the assessment last night, Mr. Hankey would only say that instructions were send the notices every holder of stock shown by the stock ledger, and that has been done. As whether the stockholders responsible, what proportion the will paid, he clined speculate, and said he had no information. First Dividend Early June With reference to the dividend that may paid to depositors, Mr. Hankey admitted that would pend some extent the sponse by stockholders. The first dividend likely to be paid early June, this assessment stock being payable May Levying of the assessment will bring the open detail with to the Valley Bank cerning which there some certainty. known that more than majority the 1,750 shares of stock pool, the presumed purpose the pool being gather enough stock the control the bank, being sold to outsiders. Point Involved Of course the failure of the bank then sight, when closed, the legal to the stock had been assigned to the passed out the hands pool the original to the tent that they might not be responsible on an the pool least shares, made up largely stockholders friendly former President Brioady, and haps largely residents Needles. Mr. Hankey night clined to discuss this phase of the merely replying that his incase, structions were to send notice of the assessment to all stockholders shown by the books. Of course the books would show nothing of the reputed pool.

4. April 12, 1932 Redlands Daily Facts Redlands, CA
Article from Redlands Daily Facts, April 12, 1932

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Article Text

STOCKHOLDERS ARE TO BE ASSESSED Liquidation of Affairs of San Bernardino Valley Bank Under Way A 100 per cent assessment on their stock will be made on all the stockholders of the San Bernardino Valley bank in the process of liquidation of the business. By registered mail notices were sent to all shareholders last night by I. A. Hankey, in charge of the bank for Receiver Robison, the order being sent out by State Bank Superintendent Rainey, from his San Francisco office." When he confirmed the news of the assessment, Mr. Hankey would only say that his instructions were to send the notices to every holder of stock as shown by the stock ledger, and that has been done As to whether all of the stockhold ers are responsible, or as to what proportion of the assessment will be paid, he declined to speculate, and said he had no information. With reference to the dividend that may be paid to depositors, Mr. Hankey admitted that it would depend to some extent on the response by stockholders. The first dividend is likely to be paid early in June, this assessment on stock being payable May 17. Levying of the assessment will bring into the open one detail with reference to the Valley Bank concerning which there is some uncertainty. It is known that more than majority of the 1,750 shares of stock is in pool, the presumed purpose of the pool being to gather enough stock together to make certain of the control of the bank. and prevent it being sold to outsiders. Of course the failure of the bank was not then in sight. but when it was closed. immediately, the legal question arose as to whether the stock that had been assigned to the pool had passed out of the hands of the original owners. to the extent that they might not be responsible on an assessment. It is understood the pool contains at least 1,000 shares, made up largely of stockholders friends to for mer President T. F. Brioady. and perhaps also largely residents of Needles. Mr. Hankey last night declined to discuss this phase of the case, merely replying that his instructions were to send notice of the assessment to all stockhold ers as shown by the books. Of course the books would show nothing of the reputed pool.

5. April 23, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, April 23, 1932

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Article Text

Valley Bank to Ask Collections Marking inauguration of another step in liquidation of the affairs of the San Bernardino Valley bank, which suspended business last December. Edward Rainey, state superintendent banks, yesterday filed suit in superior court to foreclose on three promissory notes. The first suit was filed against M. Renfro collect on two notes totaling which the suit alleges were executed in July and September, last. suit involved note for $346.95 and named Nels Gotfredson as defendant. In the first instance. the suit asks judgment for the face of the note, plus interest and attorney's fees. The suits were filed by the legal firm of Swing Swing.

6. June 7, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, June 7, 1932

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Article Text

Bank Receivers Classify Claims Clerical forces of Receiver A. Q. Robison have completed the task of classifying claims against the San Bernardino Valley bank. Under direction of Ira A. Hankey, deputy in charge at the bank records are being compiled as the basis for a petition to obtain authorization of the first liquidation dividend. According to Mr. Hankey the task of preparing the court application is considerable task. and will be about 30 days before it possible to make the first disbursement to creditors of the bank in San Bernardino and its two branches, at Barstow and Needles. knight.

7. July 27, 1932 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, July 27, 1932

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Bail Set $5,000 for Former Banker, Preliminary Hearing Scheduled Friday, Aug. Woods, cashier and vicepresident of San Bernardino Valley bank, arraigned yesterday San Bernardino justice charge of theft Justice Holbrook his bail $5,000 and scheduled hearing for Aug. The former banker is being held in county jail, though reported to be making fort to raise money for bail. arrested by Deputy Sheriff Hal Oxnevad in Las Vegas, Nev., Monday night and brought Bernardino yesterday morning. Refuses Discuss Case Mussell defendant charged with savings account deposit his bank last September. He to discuss his case with the district attorney anyone else, explaining that attorney him remain silent. The attorney John Buskirk of Los Angeles. District Attorney Stanley Musannounced that he has warded Sacramento request for extradition papers for Charles Bell, jointly accused with Woods the theft the $5,800 account. Bell under arrest Yuma, Ariz. An attempt Bell his gain freedom blocked yesterday when Superior Judge Henry Kelly denied his plea for writ of habeas corpus the Yuma Sheriff Shay had forwarded telegraphic warrant the Yuma officers and informed them that formal quest for Bell's extradition would filed with Governor Arizona quickly possible. Bell being held in default of $1,000 bail. Arrested Return From Mountain Trip Woods was arrested when he turned Las Vegas from weekend trip to the mountains, north of the Nevada town. He readily agreed to waive face trial on the charges, by which he accused transferring savings account of the late Richard Stewart San Diego where, further charged. obtained the entire $5,800 The account transferred by means of cashier's checks, drawn by Woods as cashof the Valley bank. The Stewart account was overlooked by the heirs the time Stewart's death 1918, untouched bank until last September was transferred the Diego bank. Bell, charged, represented himself to be Stewart, or the executor the estate. The complaints which both Woods and Bell arrested sworn to Ira Hankey, assistant receiver the San Bernardino Valley bank.

8. October 26, 1934 The San Bernardino County Sun San Bernardino, CA
Article from The San Bernardino County Sun, October 26, 1934

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County Treasurer to Collect County Funds in Defunct Banks, Make Profit By taking what he termed the "sensible route" in liquidating securities held for county deposits in defunct banks, County Treasurer M. W. H. Williams not only will collect all of the county deposits, with full interest, but will return large surplus in these security bonds to banks for the benefit of their depositors, he said yesterday Many county treasurers offered their securities at forced sales im mediately after the banks closed and consequently realized only few cents on the dollar, said Mr Williams. "The appellate court has ruled that county treasurers may hold their bonds until the market enables them to realize the best re turns on such security, so we adopted the sensible route in San Ber nardino Figures were compiled by the treasurer to show the final settlement just made with the San Bernardino County Savings bank. The county's deposits and interest in full have been paid the county. Mr. Williams collected $6,724.18 in interest coupons on bonds securing county deposits in that bank Sale of securities offered by this bank when county deposits were made has earned for the bank depositors $2,954 on coupon collections alone, in addition to paying the county its interest. On Oct. 15. the bank receiver paid the county $11,539.89 as dividends for the return of $44,000 unsold bonds previously given by the bank to the county to secure deposits Mr. Williams explained that had he sold these bonds immediately after the bank closed in July 1932 there would have been loss of more than $12,000 to the bank stockholders or depositors. Under present market values, the bonds returned by the county treasurer mean a saving of approximately $25,000 to the bank depositors, according to Mr. Williams. The San Bernardino National bank year ago likewise completed its settlement with the county, the deposits of the county treasurer being paid in full with interest, and the county receiving an additional $2,719.43 from collection of bond coupons, returning to the bank $157.65 in interest coupons and $70,000 in bonds. By this system of liquidation, the county earned $2,548.85 in bond interest for depositors of the First National bank of Victorville, which closed in December, 1931. This was achieved after the county's deposits were returned in full with interest After selling the Victorville bank securities, the treasurer returned a surplus of $6,721.74 in $30 in matured coupons and $3,800 par valtie bonds, total of $10,551.74 to the bank, after the bank had paid the county dividends totaling $7,540.33, according to Mr. Williams The San Bernardino Valley bank, now being liquidated. owed the county $157,430.85 including interest, for county deposits. This was secured by bonds having a par value of $275,000, but which were estimated to return from $30,000 to $50.000 less the sum due the county if sold at forced sale. Mr Williams' plan of disposing of these bonds, however, has reduced the balance due the county to $17,021.50 and he still holds bonds having par value of $87,250 to secure that sum. Under present market values, Mr. Williams said, he can clear the debt owed the county and have approximately $45,000 in bonds to return to the bank. When the First National bank of Rialto, the last to close, became insolvent, that bank owed the county $75,000. secured by $100,175 par value bonds. The balance now due the county from this bank is $57,531.27 and the treasurer holds $82,000 par value bonds to secure this. In this case the treasurer also has surety bond from individuals guaranteeing the county against any loss,