gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
191c0fff570fc870
Response Measures
Full suspension, Books examined
Other: Negotiations occurred with another Merced bank to take over the institution (contingent on officers posting a guarantee); ultimately a federal receiver was appointed by the Comptroller.
Receivership Details
Depositor recovery rate
50.1%
Date receivership started
1926-09-23
Date receivership terminated
1937-02-25
OCC cause of failure
Fraud
Share of assets assessed as good
20.3%
Share of assets assessed as doubtful
47.9%
Share of assets assessed as worthless
31.8%
Description
Failure followed alleged large embezzlement by president J. B. Hart; receivership July–Sept 1926 timeline clear.
Events (5)
1.March 26, 1913Chartered
Source
historical_nic
2.September 1, 1926*Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals precipitated by revelations/rumors of the bank's bad condition tied to alleged embezzlement by president J. B. Hart.
Measures
None specified beyond efforts to find a takeover and later appointment of receiver.
Newspaper Excerpt
it is thought the amount of deposit had been materially reduced by steady withdrawals in the last few months.
Source
newspapers
3.September 20, 1926Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed large withdrawals and the discovery of discrepancies tied to alleged misappropriation by the bank's president.
Newspaper Excerpt
The bank suspended business Monday.
Source
newspapers
4.September 23, 1926Receivership
Source
historical_nic
5.September 23, 1926Receivership
Newspaper Excerpt
Henry P. Hilliard ... has been named receiver for the Farmers and Merchants National Bank of Merced; appointment was made by the comptroller of the currency ... the bank suspended last Monday.
Source
newspapers
Newspaper Articles (21)
1.September 24, 1926The Modesto BeeModesto, CA
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NAMED BANK RECEIVER
Sept. Hilliard of Santa Rosa bas been the Farmers and Merchants National Bank of Merced. which suspended last Notice appointment received this afternoon by Chorpening national bank examiner who has been in charge of the bank's affairs. Appointment was made by the comptroller of the currency Washington and the chief national bank examiner of the 12th federal district at San Francisco. Mr. Hilliard expected to take charge tomorrow. The statement of the closed gave and total assets of Hart was president and A. Keck
2.September 24, 1926The Modesto BeeModesto, CA
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SHORTAGE FOUND IN MERCED CITY TREASURY FUNDS
Bonds Worth $27,000 Missing; City Treasurer Also Short $2,600 in Current Account
MERCED Sept. 23 shortage $27,000 bonds supposedly on deposit with B. Hart, city treasurer, as security for city funds deposited by him in of the Mer. ced banks, was brought to the atten tion of the city trustees last night aftermath the closing of the Farmers' National bank, of which Mr. Hart is also The the trustees were formed, Involves bonds alleged have been sold by Mr. Hart to the First Bank of Fresno, which had been deposited security for city funds reduced to 500 at the time of the closing of the bank. In addition, according to the statement to the trustees by Fred Henderson, attorney, who made the investigation, there shortage of approximately $2,600 in city rent fund account. Mr. Hart is under bond, and the city trustees plan no legal action, was explained. the matter rests with the bonding company. which continue the investigation.
3.September 24, 1926Modesto News-HeraldModesto, CA
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SHORTAGE FOUND MERCED CITY TREASURY FUNDS
Bonds Worth $27,000 Missing; City Treasurer Also Short $2,600 in Current Account
MERCED, Sept. shortage in deposit with city treasurer, 25 security for city funds deposited by him lu one of the Merced Lanks, was brought to the attention of the city trustees last night the closing of the Farmers' and Merchanis' National of which Hart is bank, The shortage, the trustees formed, involves boads alleged sold by 10 the have been First National Bank of Fresno, which had been security city funds reduced to the time of the closing of the at bank. lu addition, according to the stateby Fred to the who made city the there to of approximately rent tund and the Mr. is under boud. trustees plan legal city explained. the matter which with the bonding company. will continue the investigation.
4.September 24, 1926The Fresno Morning RepublicanFresno, CA
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$27,800 BONDS MISSING FROM MERCED FUNDS
City Treasurer, Head Of Closed Bank, Said To Be Short
MERCED, Sept. Appointment of a receiver for the Farmers and Merchants National bank of this city and the discovery of an alleged shortage of $27,800 in bonds on deposit with J. B. Hart, city treasurer and president of the Farmers and Merchants bank, were today's developments arising from investigation of the tangled affairs of the closed bank, which suspended business last Monday. The alleged shortage. brought to the attention of the city trustees at their meeting last night by City Atorney Fred W. Henderson, involves bonds deposited with Mr. Hart as city treasurer as security for city funds on deposit in another bank and which Hart is alleged to have sold to Fresno bank. In addition, according to City Attorney Henderson's statement to the trustees, there is a shortage of approximately $2,600 in current city fund account, representing the dif. ference between a total of $8,200 and receipts held by the city treasurer for bills paid of approximately $5,600. No deposit to cover this was found on the books of the Farmers and Merchants bank, Mr Henderson said. Hart, as city treasurer, is under bond for a sum more than sufficient to cover any shortage, it was stated, and action in the matter rests with the bonding company. The city trustees plan no legal action. Henry P. Hilliard of Santa Rosa has been named by the federal of administer the affairs of the Farmers and Merchants bank, according to information received today by I. Chorpening, national bank examiner, who has been in charge since the bank closed Monday Appointment of the receiver followed failure of negotiations herein another Merced barik offered to take over the affairs of the closed institution, provided its officers would post a guarantee to make good any loss that might result. It was the discrepancy between the available assets and the liabilities of the suspended bank proved too great to be overcome and the negotiations were called off last night and naming of the receiver followed today. The last statement of the closed bank, published July 14, gave total deposits of $1,525,326 and total assets of $1,916,493. No statement of the bank's present condition has been made by those in charge since the closing, but it is thought the amount of deposit had been materially reduced by steady withdrawals in the last few months. Among the heavy deposits in the closed bank that of the Merced irrigation district, for which the bank was depository. No statement on the affairs of the bank or those of Hart's accounts as city treasurer has been made by Hart, who has been confined to his home, threatened with a nervous breakdown following the closing of the bank
VISITS IN PATTERSON PATTERSON, Stanislaus 23.-Mrs. H. Raymont of Modesto was a Patterson visitor on Wednesday.
5.September 24, 1926Santa Rosa RepublicanSanta Rosa, CA
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Hilliard Named Bank Receiver at Merced
Colonel Henry Hilliard has been named the national comptroller the currency as receiver of Farmers Merchants National Bank of Merced. which failed the extent of $2,000,000 Monday He left Thursday night to take over the bank's afHilliard has been receiver number occasions, having capacity when the Rosa National Bank failed
6.September 24, 1926San Francisco BulletinSan Francisco, CA
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Merced Bank Awaits Probe
Merced, Sept. 24.-With the tangled condition of affairs of the Farmers and Merchants National Bank of Merced rapidly becoming more involved, the arrival of Henry P. Hilliard of Santa Rosa, appointed receiver for the bank yesterday by I. Chorping. national bank examiner, was awaited today. The bank suspended business Monday. At the same time, it was announced today, city officials have opened an Investigation of charges by City Attorney Fred W. Henderson that a shortage of $30,400 in city funds entrusted to J. B. Hart, city treasurer of Merced and president of the bank, exists. Action in this matter, it was indicated. would rest with the bonding company sponsoring Hart as city treasurer.
7.September 24, 1926The Morning PressSanta Barbara, CA
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Treasurer of Merced Is Declared 'Short'
MERCED Sept. alleged shortage of $27,000 in bonds supposedly on deposit with J. B. Hart as city treasurer as security for city funds deposited by him in one of the Merced banks was brought to the attention of the city trustees today as an aftermath of the closing' of the Farmers and Merchants National bank. of which Hart is president The shortage. the trustees were informed. Involves bonds alleged to have been sold by Hart to the First National bank of Fresno. deposited as security for $25,000 of city funds, reduced to $14,500 at the time of the closing of the bank Fred W Henderson. city attorney. asserted today that there is also shortage of approximately $2600 In a city current fund account. Henry P. Hilliard of Santa Rosa has been appointed receiver for the bank, which suspended last Monday Appointment was made by the comptroller of the currency
8.September 24, 1926San Francisco BulletinSan Francisco, CA
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Article Text
Merced Bank Awaits Probe
Merced, Sept. 24.-With the tangled condition of affairs of the Farmers and Merchants National Bank of Merced rapidly becoming more involved, the arrival of Henry P. Hilliard of Santa Rosa, appointed receiver for the bank yesterday by Chorping. national bank examiner, was awaited today. The bank suspended business Monday. At the same time, It was announced today. city officials have opened an Investigation of charges by City Attorney Fred W. Henderson that shortage of $30,400 in city funds entrusted to J. B. Hart, city treasurer of Merced and president of the bank, exists. Action in this matter, It was indicated. would rest with the bondIng company sponsoring Hart as city treasurer.
9.October 17, 1926The Fresno BeeFresno, CA
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Second Petition Counters First In J. B. Hart Estate
F. K. Silviera Of Merced Would Administer November 13th And 14th Set Estate Of Late Banker; Barrage Of As Dates; Novel Display Lawsuits Forecast In Action; Will Be Staged Run On Bank Revealed
ERCED (Merced Co.), Oct. second petition for letters of administration of the estate of the late J. B. former president of the Farmers and Merchants' Hart, Bank, whose alleged suicidal death followed revelation of alleged misappropriation of funds, was filed in superior court here by K. Silviera Merced. petition for adminfiled her husband's estate Both petitions named Hart, the hearing Mrs. Hart's to November was by Judge Rector. Silviera's petition also will be heard on date. Attorney's Statement attorney for explaining the petition, said: filed this petition behalf behalf other own similarly and the reason that they do not the business competent handle assets consist part interest prop. erty in this munity silent partner Law suits will have be Instituted order to obtain for the credItors the of such Interests, aside that shortly before his which might have been set aside he lived been declared bankrupt. The effect the transmade which are plained of, left his would sufficient to pay Henderson said Silviera's claim for and was upon note given Silviera to Hart. Henderson said he for other creditors had the Hart The total claims sort, he said, was about
RUN ON BANK TOLD
MERCED (Merced Co.), Oct. half million dollars in deposits in the Farmers and Bank Merced, 20th, in two shown prepared to-day by Henry HilHard, attached to the the institution. flatly refused to discuss matters pertaining the bank. The statement shows that on July 1st, when the last there deposits Two months later deposits dwindled to Rumors that the bank was in bad straits said have been the cause the wholesale and While against liabilities of $1,300.the "cash on hand" of $7,760.11 the only one in the asset column known The item, 'bills receivable," repand the third "assets other and cash real furnture fixtures by the bank. Both are artificially established figures subject siderable change. Bills receivable, according to statement, amount and other $280,273.17.
10.November 3, 1926The Fresno Morning RepublicanFresno, CA
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WILL ASSESS DEFUNCT BANK STOCKHOLDERS
Acting Comptroller Of Currency Makes Announcement
MERCED, Nov. 2,-An assessment of 100 per cent upon the stockholders of The Farmers and Merchants' National bank, suspended September 20, is officially announced today by Charles W. Collins, acting comptroller of the currency. The assessment, aggregating $100,000, becomes payable on or before December 1. "It appears to my satisfaction that in order to pay the debits of such association It necessary to enforce the individual liability of the therefore. to the extent mentioned.' reads the official statement of Mr. Collins, following with the information that Henry P. Hilliard, receiver, is instructed to take any necessary proceeding by suit or otherwise to enforce the stockholders' liability. While the official order requires payment not later than December Mr. Hilliard explains that under the of the treasury department the stockholders, by meeting certain stipulations, may obtain extension of time. To do this, how. ever, each shareholder must pay 25 per cent of the assessment by December and provide written obligation satisfactorily guaranteed to pay 25 cent additional on or be. fore January 1, 1927, 25 per cent on or before February 1, 1927, and the remaining 25 per cent on or before March 1927. The notice of assessment issued today through the office of Mr. Hilliard accompanied by any other explanation, nor was the condition of the defunct bank otherwise discussed. The office of T. A. Mack. county sheriff, has been asked by Mr. HilHard to endeavor to locate certain chattels held by the bank and thought to been or sold illegally, The also is advertising rewards for recovery, reading as follows: "One hundred dollars reward-I will pay above reward for information that will convict any person or persons of stealing or illegally taking, concealing or disposing of any COWS, horses or other chattels or any other property formerly owned by The Farmers and Merchants' National Bank of Merced, now vested in me," signed, Henry Hilliard, receiver. Six head of cattle had been recovered this afternoon through the efforts of county officers, it was announced at the bank.
LAST RITES HELD CLOVIS, Fresno Co., Nov. Funeral were held this afternoon for -months Angelina La Cava, daughter of Mr. and Mrs. Jene La Cava, died in Fresno yesterday. Burial in Clovis cemetery. Arthur Boice had charge of arrangements.
11.December 2, 1926The RecordStockton, CA
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LIBEL SUIT FOR $20,000 FACES INDEMNITY CO.
Merced Agent Also Made Party to Action for Damages proprietor of a loan and business in Merced. through his attorney Edward Bickmore. filed libel action the Superior Court against the International Indemcorporation of Los Angeles. ad Evans. as agent. asking for $20,000 damages. The recites that since September 15. 1925. Brown had been representing the defendant corporation. that and A. Evans circulat and libelletter. reciting in effect that paid by policy holders not paid and that paid within five days from the date of the service of the notice the policies be that the defendants intended letters mean that Brown had embezzled money received by him the premium for policies and not warded or paid it corporaThe action indirectly arose from the late failure Farmers Merchants bank of this city.
12.January 14, 1927The Fresno BeeFresno, CA
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NATIONAL BANK AT BUSINESS TO-DAY
Friends Visit Institution And Greet Officials; Bishop Man At Head
MERCED (Merced Co.). Jan. 14.Opening its doors to-day the First National Bank in Merced welcomed many depositors and visitors in the quarters occupied by the Farmers Merchants' Bank which closed nearly four months
Many prospective depositors hand and the visitors called extend wishes to the the project. The headed by George, formerly with the First National Bank Bishop On the who to to the of the bank associated the PacificSouthwest Bank of Los Angeles managing officer the Main Street office Others the directorate Emmitt McNamara. member family Merced and for past engaged estate business here, and Ford. comes from Owens Valley where he large land owner The remaining director, member law firm at Bishop.
13.May 9, 1927Oakland TribuneOakland, CA
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Bank Receiver Sues Stockholder MERCED. Hilfor the Farmers and Merchants bank, has filed suit superior against Josephine Bird. one of the The defendant. to the complaint, shares of stock assessed $100 The plaintiff asks for $8000 and cost of suit.
14.June 23, 1927The RecordStockton, CA
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RECEIVER FOR
MERCED, June to Henry P. Hilliard, receiver the Farmers Merchants Bank, were filed in the Superior Court yesterday M. Peck to recover $32,620.25, said to be deposit, and Allan B. Ruddle, to recover $4681.25 on deposit. According th: petitions filed W. B. Bunker of Peck. Bunker & Peck, San Francisco attorneys, the plaintiffs presented Hilliard with claims against the bank for the money, but the claims were rejected.
15.June 27, 1927The RecordStockton, CA
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Bank and Receiver Facing More Actions
MERCED. June Farmers National Bank Merced, with Henry Hilliard named defendant five actions the Original Mining Milling Company, to deposit the asked the aggregates filed by Henderson. attorney.
16.December 18, 1927Oakland TribuneOakland, CA
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Bank Receiver Pays New Dividend
MERCED. Dec. Merchants National bank dend checks aggregating representing second dividend of 10 per cent and also supplemenfirst dividend for those who filed their claims were being distributed from the First National bank. will make total of paid the creditors the and chants' bank since Sep tember 20. 1926. the date of fail-in collected to date more than $762.which paid back rowed and deposits, secured excess The interest collected the receiver more than met expenses of the trust to date.
17.September 13, 1928The RecordStockton, CA
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Bank Receiver Sues Teacher
MODESTO OFFICE STOCKTON RECORD, Sept. 13. Henry Hilliard, receiver of the Farmers and Merchants National Bank of Merced, yesterday filed suit in the Superior Court against Y. Barnell, Modesto school teacher, to collect $500 alleged due on promissory note. Interest in the sum of $164.80 and $100 costs also asked for in the complaint.
18.June 5, 1929Modesto News-HeraldModesto, CA
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Bank Receiver To Issue Dividend To Merced Creditors
MERCED, June H. receiver Farmers and Merchants National Bank which closed doors three years ago following alleged hundred thousand dollars announced dividend. amounting would among 2000 next Monday morning, starting This the first dividend paid the brings the total amount to cent of the sum owed positors and creditors, over the San Joaquin Valley, principally Merced laus Countles.
19.June 6, 1929The Modesto BeeModesto, CA
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Bank Receiver To Issue Dividend To Merced Creditors
MERCED June 5.-(Special)P. receiver for the Farmers and Merchants National Bank of Merced. which closed its doors three years ago following the alleged embezzlement of eral hundred thousand dollars by that cent dividend amounting would among 2000 creditors next Monday morning, starting at 10 This the first dividend paid to depositors the financial stitution and brings the total amount paid to 45 per cent of the sum owed to positors and creditors, scattered all over the San Joaquin Valley principally in Merced and Stanis laus
20.June 6, 1929The RecordStockton, CA
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$100,000 MORE FOR CREDITORS DEFUNCT BANK
Receiver of Merced Institution Ready to Pay, Bringing Total Up to 45 Per Cent
MERCED June Henry. P. Hilliard, receiver of the defunct Farmers and Merchants' Bank of Merced will pay $100,000 to more than 2000 of its creditors at 10 o'clock Monday morning This payment of 10 per cent will bring the total up to 45 per cent. or about $450,000. The last payment was made in December 1927 Approximately $16,000 in claims has never been substantiated by the creditors. Hilliard declared. Several suits are pending in court. When the bank closed on September 20. 1926. following the discovery of the embezzlement of several hundred thousand dollars by J. B. Hart, president. there were about 3500 creditors. The total amount of Hart's embezzlement has never been discovered. He died shortly following the closing of the bank.
21.July 20, 1929Merced Sun-StarMerced, CA
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Bank Depositors Lose Fraud Case
H. P. Hilliard, receiver for the defunct Farmers and Merchants National bank of Merced, this morning received notice from the federal court clerk at Los Angeles that a judgment for the defendant had been handed down in the $80,000 civil action tried in federal court in Fresno several months ago in the case of Ruddle, Peck others against the bank receiver, The suit alleged that the bank had misappropriated money to that amount from its customers and bor rowers, including those who filed the action.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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Farmers & Merchants National Bank · UID 1035201521
