932. Riverside Banking Company (Riverside, CA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
June 14, 1893
Location
Riverside, California (33.938, -117.393)

Metadata

Model
gpt-5-mini
Short Digest
636eaeaa

Response Measures

None

Description

The Riverside Banking Company suspended operations on/around 1893-06-14 (closed 'under instructions') due to inability to make collections, heavy indebtedness (notably to Pacific Bank of San Francisco), and apparent mismanagement/loan losses. There is no clear description of a depositor run causing the suspension; press reports describe suspension, examination by the bank commissioner, and negotiations. The bank was later authorized to resume and reopened (authorized by the Attorney-General) Aug 24, 1893; subsequent reports into 1894 discuss reopening plans. Cause classified as bank-specific adverse information (internal credit/collection problems and mismanagement).

Events (6)
1. June 14, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed because of inability to make collections, heavy indebtedness and alleged bad loans/mismanagement; sign on door said closed under instructions; officers cite collections problem and heavy loans to orange growers; large liability to Pacific Bank later revealed.
Newspaper Excerpt
This bank is closed under instructions. Depositors will be paid.
Source
newspapers
2. June 16, 1893 Other
Newspaper Excerpt
The bank commissioner is busy examining the affairs of the suspended Riverside bank. A meeting of the directors was held this afternoon, but no news is obtainable regarding what was done.
Source
newspapers
3. June 21, 1893 Other
Newspaper Excerpt
A statement of the suspended Riverside Banking company was made public ... total liabilities are $900,368.12 ... general feeling among creditors and depositors is against the appointment of a receiver. The situation is becoming more settled and the panicky feeling has subsided.
Source
newspapers
4. August 4, 1893 Other
Newspaper Excerpt
It was not known that the bank here was so heavily indebted to the Pacific Bank ... it is rumored that the bank has made collections sufficient so far to pay depositors thirty-five cents on the dollar.
Source
newspapers
5. August 24, 1893 Reopening
Newspaper Excerpt
When the news reached this city yesterday that the Attorney-General had authorized the suspended Riverside bank to resume it caused very general and widespread satisfaction.
Source
newspapers
6. January 5, 1894 Other
Newspaper Excerpt
The directors of the suspended Riverside bank held a meeting today, and it is announced that the bank will be opened for business next week.
Source
newspapers

Newspaper Articles (14)
1. June 14, 1893 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, June 14, 1893

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FAILURES TODAY. One of the Largest Wire Nall Compaules in the Country. CLEVELAND, June 14.-Bancke's Wire Nail company, one of the largest concerns of the kind in the country, has assigned. Inability to raise money to meet maturing paper was the sole cause of the failure. The liabilities are only $225,000, while the assets reach $900,000. The company is one of the largest manufacturers of wire natis in the United States and is backed by capitalinto of Cleveland worth millions of dollars. Baackes, vice president and founder of the concern, 18 one of the pioneers of the wire nail business of the country. President Lockwood of the concern said: "We simply got under cover to keep the creditors from slaughtering us with attachments. We can pay three dollars for every one we owe. The assignment is not because of insolvency. On ordinary occasions we would have paid with 2 per cent off but the tightness of the money market caught us. The principal creditor is Natler & Company, New York and Philadelphia,from whom we have bought millions of dollars' worth of steel and always paid them. They refused to grant us an extension and insisted on the individual security of the stockholders." WAS CONSIDERED SOUND. PAINESVILLE, Ohio, June 14.-The which began on the bank of Aaron Wilcox & Co., yesterday, culminated in the doors being closed this morning. Notice was I osted stating that thebank had suspended temporarily but that all the depositors would be paid up in full. The general impression is that the bank will be able to resume. The personal estate of the stockholders is liable for the indebtedness, in all amounting to several hundred thousand dollars. It was considered a sound institution. COMMISSION MERCHANT FAILS. TORONTO, June 14.-J. F. McLaughlin, an extensive commission merchant, has assigned. The assets exceed the liabilities. THE RUN ON THE OMAHA BANKS OMAHA, June 14.-The runs on the Omaba savings banks subsided this morning almost as quickly as they be. gan yesterday. A few depositors appeared early, but as soon as it became apparent that the rush was over, the anxious ones left without taking their money. There are no new developments regarding the suspended banks. CLOSED UNDER INSTRUCTIONS. RIVERSIDE, Cal., June 14.-The doors of the Riverside banking company failed to open this morning. The following sign was displayed on the door: "This bank is closed under instructions. Depositors will be paid." BAD MANAGEMENT. KANSAS CITY, June 14.-The Star's Topeka, Kansas, special: State Bank Commissioner Breidenthal, who made enexamination of the affairs of the bank of Burr Oak which falled last Saturday, declares that Manager Hurl. burt conducted the affairs of the bank in such a manner as to send him to the penitentiary. Hurlburt disap. peared after the failure and cannot be found. The bank's deposits amount to $45,000, and the assets are worthless. ONE MORE. INDIANAPOLIS, Ind., June 14.-The Citizens' bank of Fairmound, Ind., has suspended operations owing to stringency in the money market. The capital 8 ock is $50,000; liabilities, $130,000 to $150,000.

2. June 15, 1893 The Herald Los Angeles, CA
Article from The Herald, June 15, 1893

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FORCED TO CLOSE DOORS A Southern California Bank Suspension. The Riverside Banking Company Embarrassed. Inability to as Make the Cause. Collections Given Be in Paid Department Depositors Will Other Probably Local Bank Banks Involved Eastern Failures, Etc. Special to the HERALD, June 14. The RiverBanking the state side RIVERSIDE, under Cal., company, a The corporation laws,sus news of organized payment today. a great shock to pended the suspension community was not in the familiar inner those of the To those was circle concern wholly to with the of local situation a finance. surprise, the have as suspension the been laborwas the ing not known under Aberdeen a by heavy them Keith, burden president an for old of many and months. citizen and the nominal wealthy of city trustees, is The manager is T. 0.1 to its board head Dyer, of the who concern. is now in San Franopen the usual and cisco. The failure of the hour bank this unreliable morning was the great doors at cause of wild consternation fo The a rumbrs, and the depositors. The were bank time existed officials among made front no explanation. of the bank gates at the and bore the in with a is closed iron locked notice "This Depositors padlock bank will be under paid." is structions. cause of the making enspension collections. A stated The to real be statement difficulty is in expected to be the issued PRESIDENT shorti y. KEITH'S president STATEMENT. of berdeen Keith, afternoon. He apalmost of bank, A was seen overcome this by the sleepless dieaster, peared his face bore evidence frankly of said, the bank. to night. and He spoke very Its failure, he him, 88 affairs of the almost as a surprise he had no idea until within a was proba had that come suspension few days ble. a believe." said PAID in fall, of un- the "I indeed, the bottom falls out whole less, "How country. came the bank to suspend?" this was asked. directors met at 9 o'clock the doors. our was very minds, most morning The "The meeting and decided up to close brief. We gus- had failure individually had made to be done. The to make of pension us. what was We due found to a that we could day, and not collections. than get through do the that; 80 we a do more could risk I were sure better we to close say than anything thought am it not able I to anppose a statewill be made report up a draft ment about run. "How the about liabilities. the in threw that the Pacific few out days. next said of Bank your of San bank 'rancisco for $15,000?" Mr. was Keith. a few days asked. "They "That did ie ago, refuse not but true, our they draft paid for it the $5000 day that after Will the bank resume it will; but upon to "I hope and think the bank examiners. make colIf we are given we can go on, Diego are lections i will crowded depend I think like resume. a the chance San whereabouts but if we bank was. we When we cannot asked about Keith the said he preof Manager Dyer, Dyer Mr. was in San Francisco sumed and would ATTORNEY Mr. McIntyre, return M'INTYRE soon. the attorney bank's TALKS. troubles of the W. J. stated that the had advanced dated two years to the orange just as bank, liberally prospective back. It crops, growers dis- of money section on in agricultural bad make loans to the growers the tricts this commercial banks ago farmers. put The and frost in of two seasons make payments, its money the of bank without shape found pressing to trouble debtors. in getting present The season the low to the continued its ling growers. added prices of them, The oranges bank embarrassment officers There being was no run to unwill carry many immediately considerab to of crowd proceding them. sums $2000 were the only suspension, drawn two glow out, or but depositor taking Collections were could be one and three deposits days ago. light. paper it bei If held the it bank would been unrealize on the its officers had wall, and general the bank willing all cause right, to but drive commercial people to trouble. the examiner Mr. McIntyre to said arrive on this evening's "Do asked. was train. expected you think there will be an not aseignment the events, have "No," said was will be. Attorney, At All respect. "I do believe there with instructions in that He Mr no McIntyre THE BANK receive further MAY help said RESUME. and he depositor believed resume. would backed men the bank had lose would no dollar. idea by that gome The the institution, of the wealth in the he and most 1st, statement community. said, iest was bank On influential in January February, made before the a which and showed run on deposits of the the resources assets amounting run in to was be February to $1,117,285.24 $541,558.58 withdrawn a great of the had on During many President the Keith deposits while a were large on number deposit deposit of at is citizens down. least $76,000, had sams There ranging not other the from slightest $10,000 uneasiness regarding

3. June 15, 1893 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, June 15, 1893

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California Bank Suspends. RIVERSIDE, Cal., June 15.-The doors of the Riverside Banking Company failed to open at the usual hour yesterday. The following sign was displayed on the door: "This bank is closed under instructions, Depositors will be paid."

4. June 17, 1893 The Herald Los Angeles, CA
Article from The Herald, June 17, 1893

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PE Riverside's Suspended Bank. RIVERSIDE, June 16.-The bank commissioner is busy examining the affairs of the suspended Riverside bank. A meeting of the directors was held this alternoon, but no news is obtainable regarding what was done.

5. June 17, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, June 17, 1893

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NO HELP. NEED Banks Ready to Stand Alone. HAVE CAN CERTIFICATES. But so Far There Has Been No Application Made to the Clearing-House. Special to THE MORNING CALL NEW YORK, June 16.-The clearinghouse loan committee met this morning, but did not issue any certificates. After the meeting the members of the committee declined to give any information as to whether any applications had been received for loan certificates. As a matter of fact no certificates could be issued today because there has not been time for the directors of any bank to meet and authorize the necessary application to be made therefor. It is not known yet whether any bank desires to make out certificates. The loan committee, however, will meet again to-morrow. The action of the Clearing-house Association in deciding to issue loan certificates was warmly commended on every hand to-day, and it is conceded that the announcement of the resolutions has had a very beneficial effect. There was a slight falling off in the shipments of currency, and it is estimated the amount will fall a good deal short of $1,000,000. The demand for currency has had the effect of increasing the amount of free gold in the treasury, and the amount last night exceeded $92,000,000, which is a gain of more than $2,000,000 over last week. But for the fact that the treasury has had to pay out large sums for pensions it would show a gain in legal tenders, a large amount of which has been received from the banks for currency. The Herald says the belief is general in Wall street that better financial conditions must inevitably result from the concerted action of the associated banks of the city, and that the unanimity with which they have agreed to the heroic measure of resorting to clearing-house loan certificates will urge upon President Cleveland more than ever before, not only the gravity of the situation leading to such course, but also the importance of devising an immediate remedy for it through Congress. The President will, therefore, in all probability. convene Congress at an earlier date than he has already intimated. He was reported a few days ago as saying that he would call an extra session not before September 1 nor later than September 15. The Herald is assured. however, upon the authority of a personal friend of the President that he has decided to call the session of Congress before September 1, and that Lis act in doing so is based upon his recent inquiries as to the present attitude of Congressmen regarding the Sherman silver purchase act. PHILADELPHIA, June 16.-Pursuant to authority granted by the Clearing-house the the loan 6 interest to as committee per issuance cent of association such certificates banks learned began bearing required whether to-day them. It could not be any of the banks took advantage of the authority, but as the action is mainly in the nature of a precaution against future stringency, it is not believed that any loans were asked. PITTSBURG, June 16.-Judgments and executions to the amount of $350,000 have been filed against the Duquesne Tube Works Company, covering, it is said, nearly the entire debt of the company. The fallure is caused by the financial depression. The leading creditors are W. A. Dunshee, $200,000. and the Tyrone Iron Company, $128,000. It is among the completest pipe plants in the country, and is valued at $350,000. OSWEGO, Kans., June 16. - Angell, Matthewson & Co. filed at Oswega this evening a deed of assignment of all their property to C. L. Caldwell. The linbilities are $100,000 and the assets are not yet known. RIVERSIDE, June 16.-Bank Commissioner Gerberding is busy examining the affairs of the suspended Riverside Bank. A meeting of directors was held this afternoon, but no news was obtainable regarding what had been done. PORTLAND, Or., June 16.-A small institution known as the Oregon and Washington Mortgage Company, which wasstarted some years ago by William Reid, and known generally as "Dundee" Reid, was closed to-day under attachment to recover $1173 Reid himself passed intoinsolvency some time ago and his mortgage company now follows him. The company did bnt little business and the liabilities are said to be small. No statement has yet been made. Reid left Portland some months ago, and is understood to be in London. His failure is supposed to be due mainly to speculative railway enterprises, the last of which was an endeavor to build a road from Astoria to Portland.

6. June 22, 1893 The Herald Los Angeles, CA
Article from The Herald, June 22, 1893

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Riverside's Suspended Bank. RIVERSIDE, Cal., June 21.-A state. ment of the suspended Riverside Banking company was made public today at a meeting of creditors and depositore, but the assets were not itemized. The total liabilities are $900,368.12. A committee of 15 creditore appointed to investigate the bank's affairs will report tomorrow. The general feeling among creditors and depositors is against the appointment of a receiver. The situation is becoming more settled and the panicky feeling has subsided.

7. June 28, 1893 The Herald Los Angeles, CA
Article from The Herald, June 28, 1893

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RIVERSIL E NOTES. A Prohibition Ordinance Passed-The Suspended Bank, Etc. RIVERSIDE, June 27.-Some time ago the fire department resigned, owing to thecity trustees not approving the department's election of officere. Matters were amicably arranged at the meeting tonight and the resignations withdrawn and accepted by the trustees. At a meeting of the board of supervisors this afternoon it was decided that no liquor shall be sold in Riverside county. The vote stood four to one in favor of the prohibition ordinance. The situation is entirely unexpected, as three of the board previously favored high license. The decision caused a sensation in one or two outside towns where high license was wanted. The prohibition ordinance will take effect July 1st. It is given out on authority that the suspended Riverside Banking company will not be allowed to resume, but that the bank will be given power to close its affairs, paying the depositors as funds become available. It is stated that large claims between the Riverside bank and the Pacific bank of San Francisco, are in dispute, which the attorney general will at once investigate.

8. August 5, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, August 5, 1893

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BANK OF RIVERSIDE. Its Connection With the Defunct Pacific Bank. RIVERSIDE, Aug. 4.-The recent expose of the financial status of the Pacific Bank of San Francisco by a paper of that city created quite a sensation in this city to-day from the fact that the affairs of that bank and the suspended Riverside Bank are so closely Identified. It was not known that the bank here was so heavily indebted to the Pacific Bank, and when it became known many depositors of the local concern were startled, to say the least. The work of securing names to the contract agreed upon by a meeting of the depositors of the local concern progresses, but it is found slow work to secure the last few names, as their owners are nonresidents. It is rumored that the bank has made collections sufficient 80 far to pay depositors thirty-five cents on the dollar. This figure will be very materially increased.

9. August 25, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, August 25, 1893

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BANKS RESUMING. There Seems to Be a Sort of Easing in Financial Matters. SAN Bernardino, Aug. 24.-The Farmers' Exchange Bank reopened this morning under auspicious circumstances with about $130,000 in cash on hand, being 80 per cent of the amount due depositors. A large number of new depositors opened accounts with the bank and up to noon to-day the deposits had largely exceeded the amount drawn out and the bank officials are exceedingly happy and buoyant. A large number of prominent citizens dropped into the bank in the morning to congratulate the officers of the concern. RIVERSIDE, Aug. 24.-When the news reached this city yesterday that the Attorney-General had authorized the suspended Riverside bank to resume it caused very general and widespread satisfaction. The resumption of the bank at this time will be the means of putting in circulation a considerable sum of money which has been tied up by the bank's suspension, and this fact will relieve money matters here, a thing very much needed since the

10. September 3, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, September 3, 1893

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BREVITIES BY WIRE. A sharp shock of earthquake occurred Friday night at 12 o'clock at Gilroy. It was of several seconds' duration. R. M. Wilson, who shot and killed Robert G. Rogers on Tule River, Tulare County, has been held to answer without ball. Frederick Bell, an eastbound Englishman, was robbed of a valise containing 100 sovereigus, a sult of clot hes and an aneroid barometer. B II stepped off at Keno, but, got no clew to the thief. H. F. Lawrence, an old resident of Gllroy. was suddenly killed Saturday morning by being thrown from a wagon. Lawrence was dead when picked up. He was 57 years of age and leaves a widow and several children. Two members of the Salvation Army, arrested for violating the city ordinance of Redlands probiBiting the beating of drums on the street, were tried Saturday and tined $20 each. The case has been appealed to the Superior Court. Burnham & Williams, locomotive builders, have recorded in Kern County a contract with the Atlantic and Pacific Railroad Company to sell them Twenty-five locomotives. The terms are part cash and the balance in monthly payments. Two primary elections were held at Vallejo Saturday, one Democratic and the other Republican. Frank M. Denio was the choice of the Republicans and J. H. McCudden the choice of the Democrats for the vacaut supervisorship of the Second District of Solano County. As the result of a series of rabbit hunts in Obtario about 4000 jacks have been slaughtered. Ontarlo and the viciality have been pretty well cleared of the rabbit pest. Since the county bounty of 20 cents on rabbit scalps went into effect there has been a great deal of hunting by individuals. Some have made as high as $9 a day. Governor Markham has offered a reward of $300 for the arrest and conviction of George Clark, allas James Barrett, the ex-convict who murdered Special Officer Charles W. Wetzel. The Governor has also offered a reward of $300 for the arrest and convietion of W. G. Brunton, allas Tex Brunton, for the murder of William Harris iu Tulare County, on April 1, 1893. The suspended Riverside Bauk has announced that the bank will resume business just as soon as all the depositors sign an agreement to accept a small per cent of the deposits, to be paid when the bank resumes, the balance to be paid within four years. It is probable thai enough will sign and that the bank will open in a short time. Governor Markbam has made the following appointments: Ed E. Leake of Yolo, trustee of the State Library, vice H. E. McCune, resigned, for the term ending February 28, 1894; James H. Logan of Santa Cruz, Judge of the Superior Court of Santa Cruz County. vice Hon. F. J. McCann, deceased; James Roney, Supervisor for the Second District of Solano County, vice John Noocan, deceased. The California Dairy Association at Petaluma Friday elected these officers: J. D. Burdell of Marin. president; William Niles of Los Augeles, first vice-president; A. P. Martin of Sonoma, second vice-president; W. N. Russ of Humboldi, third vice-president: Samuel E. Watson of San Francisco, secretary. The purposes of the association are to establish a dairy school, to protect the Industry by proper legislation and to obtain a State dairy bureau.

11. September 11, 1893 The Herald Los Angeles, CA
Article from The Herald, September 11, 1893

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IT IS a noteworthy fact that the affairs of the suspended Riverside Banking company are rapidly getting no better. Like the Consolidated Bank of San Diego it presents a case of reckless and irresponsible management.

12. January 6, 1894 The Herald Los Angeles, CA
Article from The Herald, January 6, 1894

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EVENTS AT,RIVERSIDE The Chaingang on a Strike-A Land Owner Assigns. RIVERSIDE, Jan. 5.-At the present time this county ie overrun with tramps. As a consequence the county jail is well filled with an undesirable element. For some time past tramps have been kept at work on the roads, but today they refused to work and were locked in close confinement, where they will be kept on bread and water until willing to go to work. The men are defiant and the outcome of the difficulty is a matter of conjecture. P. Hall, a large land holder in this city, has made an assignment for the benefit of his creditors. His assets are placed at $50,000, and his liabilities at about $55,000. The principal creditore are the Mutual Life Insurance company and the Pacific Bank of San Francisco. The directors of the suspended Riverside bank held a meeting today, and it is announced that the bank will be opened for business next week.

13. January 6, 1894 The Morning Call San Francisco, CA
Article from The Morning Call, January 6, 1894

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THE RIVERSIDE BANK. A Report That It Will Reopen Next Week. RIVERSIDE, Jan. 5-The directors of the suspended Riverside Bank held a meeting today, and it is announced that the bank will be opened for business next week. This bank has now been closed sine : last June, and the depositors are becoming very uneasy over the fact that the prospect for a settlement see ms quite as remote now as it did months ago. The report that the bank 18 to reopen is received with considerable satisfaction by those interested, and the people generally hope the report is true.

14. June 26, 1898 The Herald Los Angeles, CA
Article from The Herald, June 26, 1898

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COURT CASES One Divorce and an Application at Riverside RIVERSIDE, June 25-The superior court has just rendered a judgment in the divorce 5 case of W. F. Spence vs. Ella Spence, in which the defendant is given all the community property, but her application for alimony is denied. The important case of F. O. Lothrop vs. O. T. Dyer, which was started in the superior court yesterday, was put over until July 5 for further hearing. Lothrop, who seeks to have set aside-several deeds made by Dyer of property held by him when the Riverside bank failed in 1893, won a decided advantage, for the motion of non-suit made : by the defense was overruled by the court. Mrs. Zadie Grotzinger wants a divorce from her husband, Geo. Grotzinger, on the grounds of cruelty and failure to provide. The wheelmen of Perris and the Good Hope section have arranged a team race to be run off on July 4th. The race will be run over the road between the two places a distance of four miles. The Populist county central committee has called a convention to meet at Perris on Saturday next, when delegates to the state convention will be elected. A meeting of the Bimetallic league will be held at Perris on the same day and it is thought that this body will have considerable to do with bringing about a complete fusion of the Populists and Democrats for the coming campaign. The officers here have been notified to be on the look-out for a man named J. S. Chambers, who it is alleged is wanted on a charge of obtaining money by false pretenses. Chambers represents himself as an agent for the Escondido Times and thus victimized many people. So far the authorities have received no trace of the boy Carr, who is missing from his home for a couple of days. Mrs. W. W. Phelps, wife of ex-City Clerk Phelps is reported as being quite ill. The city is having the sidewalks on North Orange street, where the Southern Pacific track crosses that thoroughfare, repaired on a substantial manner at the expense of the company. The local company of uniform rank, Knights of Pythias, has received orders from headquarters to hold an election for second lieutenant to fill the vacancy caused by the departure of Lieut. Cox, who went away with Company M.