Hibernia Bank & Trust Company (Denver, CO)

Episode Information

Episode UID
23006571483
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
2300657 routing
Routing Number
23-0065
Start Date
July 27, 1923
Location
Denver, Colorado (39.739, -104.985)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
1bc65250f288367f

Response Measures

None

Description

Closure followed discovery of large embezzlements by officers; bank placed in liquidation under state bank commissioner.

Events (2)
1. July 27, 1923 Receivership
Newspaper Excerpt
surrendered itself to the state bank commission; in process of liquidation under the direction of the State Bank Commissioner.
Source
newspapers
2. July 27, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large embezzlements/shortage by officers totaling roughly $440,000–$465,000 resulting in the bank's closing.
Newspaper Excerpt
Doors of the Hibernia Bank and Trust company ... closed and surrendered itself to the state bank commission.
Source
newspapers

Newspaper Articles (10)
1. July 28, 1923 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, July 28, 1923

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SHORTAGE IN DENVER BANK CAUSES TRIO TO BE HELD Two Employes of Hibernia Bank and Trust Company and Broker Held When $440,000 Missing [Republican A. P. Leased Wire] DENVER, Colo., July 27.—Three men were under arrest tonight following discovery of an admitted shortage of $440,000 in the accounts of the Hibernia Bank and Trust company, an institution with deposits of $1,373,720, which closed its doors here today and surrendered itself to the state bank commission. Those arrested are Leo P. Floyd, secretary of the bank; John Harrington, teller, and Maurice Mandell, a Denver broker. Floyd, according to his alleged confession, admitted juggling money and bonds over a period of three years in such a manner that bank examiners were unable to detect the alleged defalcations. Informations making formal charges against Floyd and Harrington probably will be filed tomorrow, it was said by a member of the district attorney's staff, but what step will be taken in connection with Mandell's arrest was not revealed.

2. July 28, 1923 The Republic Columbus, IN
Article from The Republic, July 28, 1923

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BANK OFFICIALS PLACED IN JAIL Institution in Denver, Colo., is Approximately Half Million Short. (By Associated Press.) Denver, Col., July 28.—Doors of the Hibernia bank and trust company are closed and three young men prominent in Denver financial circles spent last night in jail following the discovery of a shortage in the bank's funds estimated to be between $400,000 and $500,000. Those taken to the county jail last night were Leo P. Floyd, secretary of the company; John Harrington, teller, son of M. C. Harrington, vice president of the bank, and R. M. Mandell, head of Mandell and company, investment brokers. District Attorney Philip Van Cise stated last night that charges against the trio would be filed today. More arrests loom in the case, according to bank examiners and officials of the district attorney's office. Detectives who have been called in to help unravel the financial tangle intimated that "the woman in the case" is being sought. Her name was not revealed. Leonard De Lue, head of the De Lue detective agency, who arrested Floyd and Harrington, predicted additional arrests soon. There will be an investigation also, he declared, into what he termed a "tip off" which enabled favored depositors to withdraw thousands of dollars from the bank before notice was posted it was in the hands of the state banking examiner. De Lue estimated that possibly $40,000 or $50,000 had been withdrawn by these depositors.

3. July 28, 1923 Evening Star Washington, DC
Article from Evening Star, July 28, 1923

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WOMAN IS SOUGHT IN BANK'S FAILURE Three Arrested in Shortage of Near Half Million in Denver Institution. By the Associated Press. DENVER, Colo., July 28.-Doors of the Hibernia Bank and Trust Company are closed and three young men prominent in Denver financial circles spent last night in jail, following the discovery of a shortage in the bank's funds estimated to be between $400,000 and $500,000. Those taken to the county jail last night were Leo P. Floyd, secretary of the company; John Harrington, teller, son of M. C. Harrington, vice president of the bank, and R. M. Mandell, head of Mandell & Co., investment brokers. District Attorney Philip Van Cise stated last night that charges against the trio would be filed today. More arrests loom in the case, according to the bank examiners and officials of the District Attorney's office. Detectives who have been called in to help unravel the financial tangle intimated that "the woman in the case" is being sought. Her name was not revealed. Leonard De Lue, head of the De Lue Detective Agency, who arrested Floyd and Harrington, predicted additional arrests soon. There will be an investigation also, he declared. into what he termed a "tipoff" which enabled favored depositors to withdraw thousands of dollars from the bank before notice was posted that it was in the hands of the state banking examiner. De Lue estimated that possibly $40,000 or $50,000 had been withdrawn by these depositors, Floyd, according to his alleged confession, told how money and bonds had been manipulated over a period of three years in such manner that bank examiners did not detect the reported defalcations. Harrington was quoted as saying that he had knowledge of what was going on, but that he sought to protect his friend, Floyd. "I did not receive a cent," he declared. Floyd was quoted as saying: "I was not in this alone." Three Years' Activities. Vice President Harrington said that Floyd had revealed the shortages to the bank directors, that they had begun three years ago. when, he said, Mandell put through some short checks which the bank's secretary had covered because of friendship for the broker. E. P. Ryan of Spokane, Wash., president of the bank, is en route to Denver with securities, and Mrs. Josephine Leonard, a large stockholder, is coming from Washington, D. C., with additional securities to be used in an effort to meet the Hibernia's losses. Although the alleged peculations cover a period of three years, bank examiners last Tuesday pronounced the bank's records satisfactory. According to the last statement the Hibernia had deposits of $1,373,729.

4. July 28, 1923 Palladium-Item Richmond, IN
Article from Palladium-Item, July 28, 1923

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DENVER BANK CLOSED; HOLD THREE YOUTHS "Woman in the Case" is Sought (By Associated Press) DENVER, Colo., July 28.—Doors of the Hibernia Bank and Trust company are closed and three young men prominent in Denver financial circles spent last night in jail, following the discovery of a shortage in the bank's funds estimated to be between $400,000 and $500,000. Those taken to the county jail last night were Leo P. Floyd, secretary of the company; John Harrington, teller, son of M. C. Harrington, vice president of the bank, and R. M. Mandell, head of Mandell and company, investment brokers. District Attorney Philip Van Gise stated last night that charges against the trio would be filed today. More arrests loom in the case, according to bank examiners, and officials of the district attorney's office. Detectives who have been called in to help unravel the financial tangle intimated that "the woman in the case" is being sought. Her name was not revealed. Predict Other Arrests Leonard De Lue, head of the De Lue Detective Agency, who arrested Floyd and Harrington, predicted additional arrests soon. There will be an investigation also, he declared, into what he termed a "tip-off" which enabled favored depositors to withdraw thousands of dollars from the bank before notice was posted it was in the hands of the state banking examiner. De Lue estimated that possibly $40,000 or $50,000 had been withdrawn by these depositors. M. C. Harrington collapsed in his office at the bank yesterday when his son, John, was taken into custody. "Floyd made a clean breast of the whole thing to the board of directors," the elder Harrington said yesterday shortly after the bank had closed. "The directors decided to close the bank and turn it over to the examiners for a thorough investigation. Thus we can know where we are standing, how much we are short and when and how." Floyd, according to his alleged confession, told how money and bonds had been manipulated over a period of three years in such manner that bank examiners did not detect the reported defalcations. Knows of Dealings Harrington was quoted as saying that he had knowledge of what was going on, but that he sought to protect his friend, Floyd. "I did not receive a cent," he declared, Floyd was quoted as saying: "I was not in this alone." Vice President Harrington said that Floyd had revealed the shortages to the bank directors, that they had begun three years ago when Mandell put through some short checks, which the bank's secretary had covered because of friendship for the broker. Word reached the investigators last night that Vice President Harrington had deeded everything he owned to help out the bank in the present difficulty. E. P. Ryan of Spokane, Wash., president of the bank, is enroute to Denver with securities and Mrs. Josephine Leonard, a large stockholder is coming from Washington, D. C., with additional securities to be used in an effort to meet the Hibernia's losses. Although the alleged speculations cover a period of three years bank examiners last Tuesday pronounced the bank's records satisfactory. According to the last statement, the Hibernia had deposits of $1,373,729.

5. July 28, 1923 The Star Press Muncie, IN
Article from The Star Press, July 28, 1923

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DENVER BANK SHORT $440,000; DOORS ARE CLOSED; THREE HELD Denver, Colo., July 27.—Three men were under arrest tonight following discovery of a shortage of $440,000 in the accounts of the Hibernia Bank and Trust Company, an institution with deposits of $1,373,729 which closed today. Those arrested are Leo P. Floyd, secretary; John Harrington, teller, and Maurice Mendall, a Denver broker. Floyd, according to an alleged confession, admitted juggling money and bonds over a period of three years. Information making formal charges against Floyd and Harrington probably will be filed tomorrow, it was said, but what action will be taken in connection with Mendall's arrest was not revealed.

6. August 26, 1923 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, August 26, 1923

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RUN ON DENVER BANK BUT CASH IS ON HAND Home Savings and Trust Co. Furnished Half-Million in Money During the Day. Special to the Post-Dispatch. DENVER, Colo., Aug. 25.—Uneasiness resulting from the closing several days ago of the Interstate Trust and Savings Bank, which followed by several weeks the collapse of the Hibernia Bank and Trust Co. precipitated a run on the Home Savings and Trust Co. here today. A majority of the depositors carried Christmas savings cards, representing small deposits each week since the first of the year. The Home Savings and Trust Co. was the first Denver banking institution to foster the Christmas savings club plan, and its deposits have increased enormously in the last 10 years, largely from this source. Anticipating from heavy withdrawals Friday that a run might start Saturday, officials of the bank threw open the doors at 7 a. m., two hours earlier than the usual time—and the vanguard of depositors were greeted by stacks of currency and silver several feet high in each of the tellers' cages. In addition there was a notice from the Denver Clearing House saying that the bank was in sound condition and would be given all needed assistance. During the morning $500,000 in cash was carried into the bank to replenish the dwindling stacks of silver and bills which were on hand at the opening hour. Many of the depositors taking assurance from the statement of the Clearing House Association, left without making withdrawals. Frank L. Bishop, president of the bank, said the institution would weather the run without question, and that all depositors who asked for their money would be accommodated. Officials of the Interstate Bank have announced the affairs of that institution are in shape to permit of a 30 per cent payment to depositors at once. O. J. Clark, the president, is authority for the statement that the bank will pay in full, or nearly so, within a comparatively brief time. The closing of the Interstate is attributed to frozen assets coupled with steady withdrawals since the collapse of the Hibernia Bank and Trust Co. The Hibernia Bank was forced to suspend a month ago because of embezzlements by employes whose peculations total nearly $500,000. The Hibernia is now in process of liquidation under the direction of the State Bank Commissioner.

7. September 1, 1923 The Colorado Statesman Denver, CO
Article from The Colorado Statesman, September 1, 1923

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Elbert County Fair-Matheson. Grand County Fair-Kremmling. La Plata County Fair-Durango. Moffat County Fair-Craig. Westellffe.-J. F. Morgan, 52 years old, was killed when he fell fifty feet from a ladder in the Terrible mine, sixteen miles east of Westcliffe, after being struck on the head by a falling rock. Denver.Jack Warner of Lamar, a Denver University student, was held up by two youthful bandits at the intersection of Nineteenth and Larimer streets as he was returning from a dance. Antonito.-Scott E. Land, superintendent of the state fish hatcheries, dropped dead in front or one of the cabins at the Conejos fish hatchery, near Antonito. Death is believed to have been caused by apoplexy. Pueblo.-The deal for the purchase of Woodcroft Sanitarium as an addition to the Colorado State Hospital was completed at Pueblo at a conference between Frank Hoag of the Colorado Board of Corrections and Dr. C. W. Thompson, owner of the institution. Denver.-The Denver Stage Employees' union has reached an. agreement with the Denver Theatrical Managers' Association providing for a wage increase of 7 1/2 per cent on the present scale, putting to an end a wage dispute that for a time threatened to develop into a strike. Boulder.-At the annual commencement exercises Sept. 1 at the University of Colorado twenty-four persons received master of arts degrees. Of the twenty-four, ten are holders of bachelor of arts degrees from the State University, while the others are graduates of Denver, Tennessee, Chicago, Iowa, Brown, Bethel, Pittsburgh, Friends and Indiana universities and West Texas Normal, Bradley Polytechnic, Rice Institute, St. Xavier, Texas Presbyterian and Drury colleges. Denver.-A new angle of investigation in connection with the looting of the Hibernia Bank and Trust Company developed recently when the authorties started checking up an alleged statement of Maurice Mandell, boy broker, accused of a hand in the wrecking of the bank, to the effect that part of the $465,000 in loot was removed from the bank vaults three days before the crash, and, in his opinion, was hidden by Leo P. Floyd, former secretary of the bank, and John Harrington, former teller. Durango.-Lafayette Current, 60, a widely known lawyer of Aztec, met instant death when his shotgun was accidentally discharged as he was atto shoot a his been tempting bothering family skunk for of which shot several had nights. The entire charge entered his left side in the region of the heart. Denver.-When P. R. Dease of 1329 East Twenty-sixth avenue took to his heels as two bandits commanded him to throw up his hands, one of the holdups fired three shots after him. The holdup occurred at an alley on East Twenty-sixth avenue near Downing street. Dease ran three blocks and fell exhausted. All three bullets went wide of their mark. Denver.-Important clews indicating that the run on the Home Savings and Trust Company was caused by a Denver woman who wished to revenge herself for a personal grievance against certain directors of the bank were being followed by operatives from the district attorney's office, according to Kenneth W. Robinson, and it was believed that an arrest will be made soon. Durango.-A record in the number of high school graduates making decisions to attend higher schools of learning has been established by the class of the cent of the class, 1923 per of Durango high which school. represents will Forty leave twenty-four of the graduates, the city this fall to enter colleges or universities. Pueblo.-Arthur Baggisti, 10 years old and son of Bert Baggisti, a miner Rockvale lost his left leg eblo, in the district, when west he around of was Puraught in a cable while playing

8. September 6, 1923 The Arvada Enterprise Arvada, Morrison, CO
Article from The Arvada Enterprise, September 6, 1923

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Grand County -Kremmling La Plata County Mofiat County Fair-Craig Westcliffe.-J F. Morgan, 52 years old, was killed when he fell fifty feet sixfrom a ladder in the Terrible mine, teen miles east of Westcliffe, after be rock. ing struck on the head by a falling Denver.Jack Warner of Lamar, a Denver University student, was held inby two youthful bandits at the up tersection of Nineteenth and Larimer a streets as he was returning from dance. Antonito.-Scott E. Land, superintendent of the state fish hatcheries, the dropped dead in front of one of cabins at the Conejos fish hatchery, to near Antonito. Death is believed have been caused by apoplexy. Pueblo.-The deal for the purchase of Woodcroft Sanitarium as an addition to the Colorado State Hospital completed at Pueblo at a conferwas between Frank Hoak of the Colo- C. ence rado Board of Corrections and Dr. tion. W. Thompson, owner of the instituDenver.-The Denver Stage Emunion has reached an agree ployees' ment with the Denver Theatrical Managers' Association providing for a wage Increase of 7 1/2 per cent on the present scale, putting to an end a wage to dispute that for a time threatened develop into a strike. Boulder.-At the annual commence exercises Sept. 1 at the University ment of Colorado twenty-four persons Of received master of arts degrees. twenty-four, ten are holders the of the bachelor of arts degrees from State University, while the others Chl- are graduates of Denver, Tennessee, Iown, Brown, Bethel, Pittsburgh, and cago. Friends and Indiana universities West Texas Normal, Bradley Polytech- Texas nic, Rice Institute, St. Xavier, Presbyterian and Drury colleges. Denver.- new angle of investiga- of in connection with the looting tion the Hibernia Bank and Trust Company authordeveloped recently when the alleged ties started checking up an statement of Maurice Mandell, boy the accused of a hand in wrecking broker, of the bank, to the effect was that part of the $465,000 in loot three removed from the bank vaults opin days before the crash, and, in his for was hidden by Leo P. Floyd, John Ion, mer secretary of the bank, and Harrington, former teller. Durango.-Lafayette Current. GO. in H widely known lawyer of Aztec, met nc death when his shotgun was at stant cidentally discharged as he was had to shoot a skunk which several tempting bothering his family for enbeen The entire charge of shot the nights. tered his left side in the region of heart. Denver-When P. R. Dease of 1320 Twenty-sixth avenue took to him his East heels as two bandits commanded to throw up his hands, one of the hold The fired three shots after him East ups occurred at an alley on Twenty-Mixth holdup avenue near Downing and fell Dease ran three blocks wide exhausted. street. All three bullets went of their mark. enver.Important clews indicating and the run on the Home Savings Den Trust that Company was caused by II woman who wished to revenge her ver for H personal grievance against be self certain directors of the bank were followed by operatives from the to district ing attorney's office, according be Kenneth W. Robinson, and It was lieved that an arrest will be made soon. Durango.-^ record in the number of school graduates making decisions high attend higher schools of learning of to been established by the class 1923 has of the Durango high school. Forty cent of the class, which represents leave per twenty-four of the graduates, will or the city this fall to enter colleges universities. Pueblo.-Arthur Baggisti. 10 years and son of Bert Bakkisti, a miner Po old the Rockvale district, west of was in lost his left leg when he caught eblo. in a cable while playing around the mouth of the mine.

9. November 9, 1923 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, November 9, 1923

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Mandell Trial Holds Interest at Denver DENVER, Colo., Nov. 8.—Details of alleged looting of the savings account of Mrs. J. Frances Leonard of Washington and Denver, a stockholder in the Hibernia Bank & Trust company, which failed here last July for $464,000, by Leo Floyd, convicted officer of the bank, whom Mrs. Leonard had befriended and raised to a position of responsibility in the bank, were related today at the trial of Maurice Mandell, Denver broker, charged with looting in connection with the bank's failure. Herman C. Flanders, former teller of the bank, on the witness stand read off alleged fake withdrawals from the woman's account entered on the card in Floyd's handwriting. A total of $13,908.09 is alleged to have been thus appropriated by Floyd, said to have been encouraged by John Harrington, convicted bank official, and Mandell. Earlier in the day Flanders declared that the check "kiting" activities of Mandell were "common knowledge" among employees of the bank. Later, however, under cross-examination, Flanders declared that Harrington did not have knowledge of the alleged illegal activities.

10. November 22, 1923 The Arvada Enterprise Arvada, Morrison, CO
Article from The Arvada Enterprise, November 22, 1923

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CENTENNIAL STATE ITEMS Estes Park.-Estes Park village is to be the center of a winter recreational season from Jan. 15 to April 15. Tentative plans for using Rocky Mountain National park for winter sports and carnival events were outlined by Stephen T. Mather of Washington, director of the national park service, in a conference at the Stanley Manor, called by the Estes Park Chamber of Commerce and the Estes Park division of the Colorado Mountain Club. Increased travel to Colorado in winter months, as a result of the efforts of a dozen communities throughout the state, including also Denver, Colorado Springs, Pueblo, Trinidad, Hot Sulphur Springs, Leadville and Steamboat Springs to hold ski meets, was predicted by Mr. Mather. Co-operation was expressed by Jesse L. Nusbaum, superintendent of Mesa Verde National park, and Horace M. Albright, superIntendent of Yellowstone National park, who also attended. Fort Morgan.-Sugar beet growers of the Fort Morgan district have recelved checks totaling $585,000 as the initial guaranteed payment of $5.50 per ton on the 1923 beet crop. The 25,000 acres of beets In Morgan county this year will average fourteen tons per acre, according to the latest data announced by officials of the Great Western Sugar Company. This establishes not only the state record yield for such an extensive acreage, but also the world's record for this amount of acreage, company officers said. Denver.-District Judge Julian H. Moore granted the petition of Grant McFerson, state bank commissioner in charge of the affairs of the defunct Hibernia Bank and Trust Company, requesting authority to pay a 50 per cent dividend to depositors. According to the petition of the commissioner, the bank collected in cash to and including Nov. 12, $690,070.68 and has this amount for payment of the dividend. Unpaid claims against the bank up to and including Nov. 12 amounted to $1,280,855.60, the petition states. La Junta.-The La Junta High School football team has a remarkable record in the Arkansas Valley High School League. The team will meet one of north state teams In an elimination contest, leading to the state championship on Nov. 24. This game will be played in La Junta. Should La Junta be victorious, she will meet the Colorado Springs Terrors at Washburn field Dec. 1. If this game is played the fans will see one of the best high school games ever staged. Denver.-Exercises of import to all Colorado was carried out in Topeka, Kan., when the first bronze memorial marker-a huge eagle with wings outspread-was unveiled for the Victory Memorial highway. They are of Import here because the Victory transcontinental highway, running from Columbus circle, New York City, to Golden Gate park, San Francisco, is the one transcontinental highway which passes directly through Denver and bisects the state of Colorado. Penrose.-Workmen blasting out rock for the construction of the Brush Hollow dam near here. dislodged the skeleton of a prehistoric man from Its resting place In a natural vault in the face of a cliff. Gnarled twisted roots of large cedar trees, between 200 and 300 years old barred the entrance to the cleft in the rock. A charge of dynamite shattered the ledge and damaged the skeleton to a considerable extent. Fort Morgan.-Henry Strauss, 37 years old. who went to his wife's home in Fort Morgan, Oct. 21, and was prevented from shooting her to death and killing himself by the courageous attack of his 12-year-old son. pleaded guilty to a charge of assault with intent to kill before Judge L. C. Stephenson of the Morgan County District Court, and was sentenced to from three to five years In the state penitentiary at Canon City. Wellington. - Continuing without abatement the force exhibited when It was brought in, the gas well sunk near here, by the Union on Company of California poured out natural gas the second day at the terrific rate of between 95,000,000 and 100,000,000 cuble feet a day, creating n pulsating roar that could be heard distinctly ten miles away. The gas continued to be dry, indicating that It would be a gas well of long life, rather than the preliminary spout of gas from an oil gusher. Towns in northern Colorado have been experiencing the greatest excitement known in the state since the early days of gold mining booms, officials declared. Automobiles by hundreds and almost thousands lead-