First National Bank (Burley, ID)

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Episode Information

Episode UID
1034101456
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
103410 national
Charter Number
10341
Start Date
April 1, 1921*
Location
Burley, Idaho (42.536, -113.793)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ba4e89bb972791a3

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: The bank substituted securities to satisfy examiners' demands during the period of distress.

Receivership Details

Depositor recovery rate
6.0%
Date receivership started
1921-11-30
Date receivership terminated
1927-04-25
OCC cause of failure
Economic conditions
Share of assets assessed as good
44.5%
Share of assets assessed as doubtful
37.7%
Share of assets assessed as worthless
17.9%

Description

The bank survived two severe runs in early 1921 before finally suspending in November 1921 due to frozen assets and examiner demands.

Events (6)
1. March 6, 1913 Chartered
Source
historical_nic
2. April 1, 1921* Run
Cause
Local Banks
Cause Details
Two other local banks were undergoing reorganization, causing local nervousness.
Measures
The bank withstood the runs and remained open at that time.
Newspaper Excerpt
Last spring when two other banks in Burley were undergoing a reorganization the First National withstood two severe runs
Source
newspapers
3. November 21, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Unsatisfactory liquidation of assets and rejection of paper by bank examiners.
Newspaper Excerpt
The First National Bank of Burley failed to open its doors for business Monday morning and is now in the hands of the national banking department
Source
newspapers
4. November 30, 1921 Receivership
Source
historical_nic
5. November 30, 1921 Receivership
Newspaper Excerpt
Known receivership date: 1921-11-30
Source
newspapers
6. April 9, 1923 Other
Newspaper Excerpt
Trial of former officials of the defunct First National bank of Burley opened here yesterday in the United States district court.
Source
newspapers

Newspaper Articles (13)
1. November 24, 1921 The Idaho Republican Blackfoot, ID
Article from The Idaho Republican, November 24, 1921

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Article Text

BURLEY BANK FAILS TO OPEN MONDAY Slow Payment Given as Cause for Failure The First National Bank of Burley failed to open its doors for business Monday morning and is now in the hands of the national banking department with L. M. Sawyer Jr., national bank examiner, in charge. Unsatisfactory liquidation at a time when it was thought that the farmers would be able to market their crops at a profit is given as the cause of the bank not being able to continue in business. Last spring when two other banks in Burley were undergoing a reorganization the First National withstood two severe runs and was supposed to be in good condition. Owing to the general business depression some of the paper held by the bank was rejected by the examiners, but satisfactory securities were always substituted by the bank until the examiners made further demands last week, it is stated. As but a small percentage of the expected crop money has been forthcoming, the board of directors at a meeting which was held Sunday decided to close the bank rather than jeopardize the interests of the depositors unnecessarily by having recourse to temporary remedies. Due to this fact it is stated that the depositors will occupy a much more favorable position than is usual in such cases. It is not known whether a plan of re-organization has been made or not and there is no known bank state. ment yet.

2. November 24, 1921 The Emmett Index Emmett, ID
Article from The Emmett Index, November 24, 1921

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Article Text

All hats at half price at the Ladies' Hat Shop. Miss Moss left yesterday to spend Thanksgiving at Donnelly. Gossard corsets for sale by Mrs. Kinsey, 212 4th St. Phone 269J. 51 Cotton serge in gray and brown plaids, 17c yard at Golden Rule. Mr. and Mrs. Clayton Lick were visitors here this week from Boise. Miss Grace Barrett visited friends in Boise from Tuesday to Saturday. If you want garbage or wood hauled call on Dan Woody, Emmett Dray Co., Phone 262. Miss Alta Atkins, who was operated upon at St. Luke's hospital in Boise, is recovering nicely. Mrs. Geo. Church returned home Saturday from a week's visit in Boise with relatives and friends. I will teach your watch to tell the truth. L. A. Jarnagin, the Jeweler, 1 door East of Golden Rule. Mrs. Gertrude Fest left yesterday for Gooding to spend the Thanksgiving holidays with her son. The Presbyterian Ladies' Aid will meet with Mrs. Lou Burton next Thursday afternoon at 2:30. Children's gingham dresses, organdie trimmed, sizes 14 and 16, clean up $1.98 at Golden Rule Store. Orvie Hazelton is here from Silver City visiting at the home of his parents, Mr. and Mrs. Rene Hazelton. Will Wilton came over from Houston on Monday to visit his uncle Charles Wilton and friends at Letha. Don't forget to patronize your community products. We handle Montour flour and mill feeds. Co-op. Exchange. Mr. and Mrs. John Orr of Payette are expected here tomorrow to spend Thanksgiving with Mr. and Mrs. Geo. Church. If you want to receive the highest cash price for cream, poultry and eggs bring them to the Gem Ice Cream Company. Preston Chapman returned the last of the week from the upper country, where he has been working for the forest service. Mr. and Mrs. V. T. Craig and Mr. and Mrs. Lauren Dean attended the show, "The Four Horsemen," in Boise Saturday evening. Mill ends of heavy weight outing, 10 and 15 yards. Prices 15c a yard at Golden Rule Store. Is your liver out of order? Do you suffer from biliousness, headaches, constipation? If so, Tanlac is what you need. H. T. Davis. Miss Margaritha Thommen has returned from Fairfield, where she was employed in a bank, and has resumed her former position in the First National bank of this city. C. A. West has disposed of his banking interests at Fairfield. All rubber arctics, made by Candee Rubber Co., six buckles, priced at $2.89 per pair at Golden Rule Store. Max Jackson arrived yesterday from Portland to spend Thanksgiving with friends. He was accompanied by his son, who has just concluded a seven-year enlistment in the army. After the war ended, he was sent to Siberia, where he was stationed until a short time ago. Carl Gaskill, who has been bookkeeper in the First National bank for several years, and who is quite popular in young society circles left today for Burley, where he will be employed as bookkeeper for the receiver of the recently failed First National bank of that city. Special purchase of ladies' trico-tine dresses, priced at $8.95, at Golden Rule Store. We buy cream and issue pay checks right at office. Co-op. Exchange. Ask your grocery for Gem Creamery Butter. PIANO MUST BE SOLD

3. December 15, 1921 The Filer Record Filer, ID
Article from The Filer Record, December 15, 1921

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Article Text

BURLEY, Dec. 9 The Commercial State bank of this city failed to open its doors this morning. The cause is aot given but it is believed to be due to the insafficiency of some assets in which cash could not be linine liately realized. There is a popular report that it will probably reaper soon. The Commercial State bank was formed by the consolidation 1) the Burley State bank and the Bani of Commerce which closed "their doors January 15. Later the Firs National bank suspended The Bur ley National bank is now the ont) ban kin the city. Its position is sala a be imprognable 28 it owes nobod; nything.

4. December 23, 1921 The Daily Star-Mirror Moscow, ID
Article from The Daily Star-Mirror, December 23, 1921

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STATE ASKS CASH LOST IN BANKS MAKES DEMAND ON SURETY COMPANIES FOR $110,400, IN BANKS NOW CLOSED. Demand for $110,400 in state funds held by state depositories which have closed their doors was made Tuesday on six surety companies by B. E. Hyatt, director of the bureau of public accounts, according to the Idaho Statesman. The surety companies which will meet this demand under the terms of the bonding contract are: The National Surety company, the United States Fidelity & Guaranty company, Fidelity & Deposit Company of Maryland Casualty company and the Aetna Casualty & Surety company. Under the terms of all depository bonds the state is entitled to the total deposit of the state when the banking institution suspended business, plus interest at 3 per cent on the daily balances from the date of last interest payment to the date of settlement by the surety company. The suspended national banks and the amount of state money on deposit in each follow: Blaine County National $11,600 a First National, Mountain Home 21,000 5,000 First National, Wendell First National, Burley 8,400 Total $46,000 State banks suspending operations, E with state funds deposited, are: a Union State, Nez Perce $ 8,400 Delco State Bank 3,800 Bellevue Bank & Trust 7,000 13,500 State Bank, Idaho Falls Citizens' State Bank, Buhl 17,500 Commercial State Bank, Burley 14,200 o Total $64,400 Total for state and national banks, p $110,400.

5. April 14, 1922 The Oakley Herald Oakley, ID
Article from The Oakley Herald, April 14, 1922

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Article Text

e OAKLEY PROVIDES NINE MEN e FOR GRAND JURY e e Nine of the grand jurymen who d are investigating the closing of three Burley banks and one Declo bank are Oakley men. Their names fole low: H. E. Bidgood, Boulder, a sub0 urb of Oakley; C. G. Larson, John L. Smith, Emil J. Hanzel, James Port, Fred Bach, James F. Devine, William F. Whittle and William H. a Poulton. The other grand jurors t are George Cook, Albion, foreman; ) W. E. Smouth, Burley; James Taye lor, Almo; John A. Elison, Malta: F. C. Butler, I. Curtis Giles, and James Mahoney, all of Albion. There are two views in Burley in regard to the manner in which the affairs of the closed banks are being handled. The Burley Bulletin seems to voice the sentiments of one group when it says, in its issue. of April 6: Depositors and others interested n the best possible liquidation of the assets of the First National Bank and the Commercial State Bank are generally pleased with the men now in charge of them. C. A. Robinson, receiver of the First National Bank, is a banker of experience and has been eminently successful in his own affairs. T. F. Warner, agent in charge of the Commercial State Bank is a banker of proven ability and is recognized as one of the best collectors and businessmen in southern Idaho. The real depositors and guarantors want their money or as much of it as possible out of these closed banks and they are satisfied the men now in charge will get it for them. The Burley Herald, on the other hand, takes an opposite view. Under the heading "Peddling Hot Air," TheHerald, in its issue of Apirl 3. stated, in part: "When theBulletin comes out with a denfense of the manner in which the two closed banks are being liquidated, it is pedding a lot a bunk. The Bulletin is trying to excuse the republican state law that has had a supervision over state banks The people are not satisfied with the way the banks are being liquidated.

6. April 10, 1923 The Ogden Standard-Examiner Ogden, UT
Article from The Ogden Standard-Examiner, April 10, 1923

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TRIAL OF FORMER BANKERS BEGINS BOISE, Idaho, April 10.—Trial of former officials of the defunct First National bank of Burley opened here yesterday in the United States district court. The defendants are E. Curtis Warren, former president; Arnold Smith, cashier, and Richard Waltermire, assistant cashier. Announcing that the defendant, Edmond Maguire, had promised to take the stand for the government, United States Attorney E. G. Davis requested and obtained an order granting severance as to Maguire, who was an assistant cashier. The former bankers are being tried on two indictments. The thirty-two counts of the first charge conspiracy to make false entries in reports to the comptroller and to misapply funds. The second charges conspiracy to abstract interest. Over the objection of defense counsel United States Attorney Davis obtained an order consolidating the two indictments for trial. The First National bank of Burley closed its doors in December, 1921. The officials were indicted during the last session of the grand jury in Boise and have since been at liberty on bonds.

7. July 6, 1924 The Idaho Statesman Boise, ID
Article from The Idaho Statesman, July 6, 1924

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Judge Dietrich Denies Demurrer Of Bank Receiver Question of Surety Company Bond Liability Discussed by Federal Court. Questions pertaining to the relation of a bank in case of failure and the bank's bonding company are discussed at length in a memorandum decision given Saturday by Judge F. S. Dietrich, of the United States district court, on the plaintiff's motion and demurrer, which are denied without prejudice, in the suit of C. A. Robinson, receiver of the First National bank of Burley, against the Fidelity and Deposit company of Maryland. The plaintiff brought suit upon the surety company's bond given the bank for the faithful discharge of duties by one of the bank's employed officers, and the defendant pleaded, as setoffs, its liabilities upon bonds given by it to depositors, at the instance of the bank, to insure payment of their deposits. The plaintiff challenged the sufficiency of the pleaded setoffs to constitute a defense. "The precise question is," Judge Dietrich says, "whether or not, upon defalcation of a national bank officer and failure of the bank, a surety company can set off its liability, upon bonds given at the request of the bank to depositors, against its liability upon the fidelity bond given to the bank."

8. October 16, 1924 South Idaho Press Burley, ID
Article from South Idaho Press, October 16, 1924

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BANK RECEIVER WINS IN COURT Maryland Company Loses $13,760 More in First National Deal More of the claims issuing out of the closing of the First National Bank of Burley were settled in federal court last week when C. A. Robinson, receiver, obtained a verdict over the Fidelity and Deposit company of Maryland, recovering $13,760. The action was brought in the interest of the bank to recover on moneys alleged to have been misappropriated by the former officers of the institution, including the president, cashier, and two assistant cashiers of the defunct bank. John W. Graham of Twin Falls was the attorney for the plaintiff, and the verdict was reached in Boise late Saturday night.

9. May 28, 1925 South Idaho Press Burley, ID
Article from South Idaho Press, May 28, 1925

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Robinson Resigns As Bank Receiver Robinson. receiver for the First National Bank of Burley and the First National Bank of Rupert, has tendered his resignation to the federal comptroller, effective as soon as another receiver is sent here. Mr. Robinson will devote all of his time this summer to construction work. His company contracts to approximately $250,000 for road work Nevada. One job includes stretch of new road 30 miles long.

10. August 27, 1925 South Idaho Press Burley, ID
Article from South Idaho Press, August 27, 1925

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BANK RECEIVER $16,000 IN FEDERAL Depositors in Defunct First National of Burley Win Large Sum Court of Appeals Confirms Decision Over Bonding Company Judgment of over $16.000 favor First National Bank Burley, against the Fidelity Surety and company granted before Dietrich. the United States district court. affirmed circourt appeals. San Franwhich appeal taken by surety company according the the decision received John Graham. of Twin Falls. attorney Mr Robinson financial aspect that than $16. surety company sought hold depositors of Burley bank Company Would Hold Out The surety company held that while the bond indicated that liable for amount named. surety for bank officials. liable in the sum $40,000 and that. should allowed apply the $16.the $40.000 reimburse In handing down the decision the after saying question presented writ May pany offset by surety national bank against the claim by the after insolon bond given by the surety company indemnify the bank against loss sustained through fraud The facts are the before the court in United Fideland Guarantee Woolcompany ridge. 295 There bond was executed the surety company national bank harmless against loss through dishonesty of emploves. and second bond the company harmless from from deposit in the The ruling of the supreme court in Fidelity case. which was cided after the appeal the suit the Burley bank. held that the surety could apply proceeds one bond issued by itself off its losses under another band. This case was passed by the supreme court May 1925. and thought that the surety case will not carry up the decision referred the highest court seem to renfurther appeal useless. Heiss Jerome now ceiver of the First National Bank, Mr. Robinson. having resigned since was instituted.

11. December 3, 1925 The Burley Herald Burley, ID
Article from The Burley Herald, December 3, 1925

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FIRST NATIONAL BANK TO PAY DIVIDEND Rupert News: Depositors of the defunct First National bank of Rupert will receive per cent dividend within the next three weeks, according to Receiver W. A. Heiss, in Rupert today. "We had hoped to make the first dividend 10 per cent." Mr. Heiss told News man "but we find this impossible now. This will not be the last dividend, however." Depositors in the old Burley First National must not get excited when they read the above heading. It's Rupert bank that is paying the little measley dividend of per cent. It's not time for the Burley First National to pay dividend. The bank has only been closed matter of four years and the receiver is still on the job, and will likely hang on until there is no cash left to pay the expense of the receivership. then the people will learn all about it. Bank receivers are hanging on like grim death, for it looks as if jobs will be scarce from now on. Let hope so.

12. June 17, 1926 South Idaho Press Burley, ID
Article from South Idaho Press, June 17, 1926

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Receiver of Local Bank Has Resigned W. A. Heiss has resigned as receiver of several failed Southern Idaho banks and C. O. Thomas. a national bank receiver of Pocatello, Idaho, will have charge in closing up the remaining business of the institutions. The receiverships which Mr. Heiss, resigns are the First National Bank of Burley, First National Bank of Rupert, First National Bank of Wendell and City National of Jerome. First National Bank of Burley, elosed November 19th, 1921. Mr. Heiss appointed receiver May 28, 1925. Divinone. As the Wendell and Burley banks assets were sold some time ago, the affairs of these two banks are practically ready to be closed.

13. February 3, 1927 South Idaho Press Burley, ID
Article from South Idaho Press, February 3, 1927

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First National Bank Receiver Makes Report The statement of the condition of the defunct First National Bank of Burley, at the close of business Dec. 31, 1926, according to the receiver, C. O. Thomas, shows that the total assets coming into the hands of the receiver were $1,189,691.74; total assets uncollected $18,464.41; total liabilities, $1,008,348.28 dividends paid during last quarter, or rather total dividends to date, $24,329.72. Cash on hand January 1 was $34,095.95.