Deseret Savings Bank (Salt Lake City, UT)

Episode Information

Episode UID
31005271586
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
3100527 routing
Routing Number
31-0052
Start Date
February 13, 1932
Location
Salt Lake City, Utah (40.761, -111.891)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ef7308bac3ccf147

Response Measures

None

Description

State banking department took charge and the institution remained defunct with legal actions following.

Events (3)

1. February 13, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State banking department took charge due to frozen real-estate assets and apparent insolvency; deposits about $6,150,000.
Newspaper Excerpt
the Deseret Savings bank had been placed in the hands of the state banking department.
Source
newspapers
2. February 15, 1932 Receivership
Newspaper Excerpt
Arrangements have been made with the Reconstruction Finance Corporation whereby funds will be available to depositors...following announcement that the Deseret Savings bank had been taken over by the state banking department.
Source
newspapers
3. February 13, 1933 Other
Newspaper Excerpt
$218,153 sought in action against 72...based on liability of stockholders of the Deseret Savings bank; bank had capital stock...more than half the stockholders' liability has been paid.
Source
newspapers

Newspaper Articles (7)

Article Text

CHINESE MEET HEAVY FORCES OF JAPANESE IN NEW DRIVE Tanks and Big Guns in Place For Climax Battle BOTH SIDES STRONG Defenders of Shanghai Are United Under Chiang Kai-Shek (Copyright, 1932, by United Press.) SHANGHAI, Feb. 15.—(UP)—Reverberating guns rocked Shanghai tonight as Japanese troops renewed their bombardment of the Chapei native quarter and at the forts of Woosung after a 36-hour cessation of hostilities. Inspired Chinese troops, apparently united under Gen. Chiang Kai-Shek, met the attack with heavy artillery fire and began landing shells in Japanese defense areas. Airplanes joined with destroyers in attacking the forts, although the Japanese previously had withdrawn aerial warfare in response to international pressure. The fort bombardment was conducted with eight Japanese troop transports waiting to pass up the river toward Shanghai. The ships later landed the soldiers, and it was reported other transports are due tomorrow. TANKS ARE USED Five large tanks and ten baby tanks rumbled through the streets of the international settlement in the wake of Japanese front line troops as the fighting men headed for the new battle of Chapei. Japanese naval commanders claimed that the main body of 6400 Chinese at Woosung had begun retreating after the heavy shelling. The Chinese reported they were still holding the forts at nightfall. Although the expected ultimatum from the Japanese has not been issued, military preparations made it evident that they intended to start a determined offensive Wednesday, of which tonight's attack apparently was a forerunner. Baby tanks, heavy artillery and men—20,000 khaki-clad Japanese fighting men equipped with galoshes—have been unloaded and are ready for the well-advertised, apparently inevitable offensive here against 35,000 inspired Chinese troops. Although no ultimatum has been issued to the Chinese, Japanese Lieut. General Kenkichi Uyeda prepared a statement demanding their withdrawal. He threatened that a failure to comply would bring "sterner measures." CHINESE UNITED The Chinese apparently have united finally under General Chiang Kai-Shek. They dispatched thousands of reinforcements to meet the threatened offensive. The Japanese, meantime, withdrew their heavy forces from the Woosung sector where there were conflicting reports of their success or failure Saturday, and used them to reinforce the Ninth division in the battered Chapei. At 3 p. m. (2 a. m., New York time) fighting there was at a minimum, as the Japanese indicated they might give the Chinese 36 more hours longer to meet their demands before beginning the offensive. Men from the Japanese Ninth division, a crack Nipponese fighting outfit, marched through the crowded Hongkew streets accompanied by ten small rumbling tanks, five large tanks, and mountain and field guns. Depositors In Utah Banks to Get U. S. Fund Ogden State, Farmers and Merchants of Provo and Deseret Savings of Salt Lake to Receive Loans ARRANGEMENTS have been made with the Reconstruction Finance Corporation whereby funds will be available to depositors of the Ogden State bank, the Farmers and Merchants Bank of Provo, the Deseret Savings bank of Salt Lake and other closed Utah banks up to 30 per cent of the amount of deposits. This was the statement issued today by E. O. Howard, chairman, and M. S. Eccles, O. W. Adams, and J. E. Cosgriff, members of the Reconstruction Finance Corporation's local advisory committee, following announcement that the Deseret Savings bank had been taken over by the state banking department. DESERET NAT. BANK GOES TO ECCLES GROUP Deseret Savings, Another Distinct Bank, Is Suspended SALT LAKE CITY, Feb. 15.—(AP)—The Security National bank of this city today took over the Deseret National bank and will administer its business from the Security bank at Main street and Exchange place. Coincidentally it was announced that the Deseret Savings bank, a separate institution under different ownership and management than the Deseret National bank, had been placed in the hands of the state banking department. Frozen assets in real estate in parts of the intermountain region, necessitated closing the savings bank, it was announced. Deposits in the savings bank Saturday were approximately $6,150,000. After necessary alterations in the former quarters of the Deseret National bank at Main and First South streets have been made, the Security bank will move to that location. The committee indicated that this relief to depositors will be forthcoming just as soon as the closed institutions can file the necessary applications and comply with the legal requirements. LEGAL PHASES The Utah attorney general's office and counsel for the advisory committee are looking into the legal phases of the situation and it appears that legal authority to borrow money from the Reconstruction Finance corporation must be obtained either by a special session of the legislature or through a test case to be acted upon speedily by the supreme court. It was felt in banking, legal and legislative circles that the necessary legal authority to permit the borrowing of relief funds from the Reconstruction Finance corporation can be obtained without trouble or delay. The money to be obtained from the Reconstruction Finance corporation will be released for the immediate relief of the depositors and further payments to depositors will be made when the remaining assets of the closed banks are liquidated by the state banking department. The Deseret National bank which has shared quarters with the closed Deseret Savings bank, has been acquired by the First Security corporation of Ogden, according to M. S. Eccles, president of the corporation, and has been taken over by the Security National bank of Salt Lake City. WASHINGTON, Feb. 15.—(AP)—President Hoover has determined upon Judge Benjamin N. Cardozo of New York as successor to Justice Oliver Wendell Holmes of the supreme court. Benjamin Nathan Cardozo now is chief justice of the New York state court of appeals. He has been strongly recommended by various elements describing themselves as liberals. He is a Democrat and a Jew. The name was to be forwarded to the senate some time today. Confirmation is considered assured. Cardozo has the backing of New York's two senators and is also known to be favored by such leaders as Borah of Idaho, who opposed confirmation of Chief Justice Hughes and Judge John J. Parker. The president conferred with Senator Watson of Indiana, the Republican leader, and other administration senators before making known his choice finally. Appointment of Cardozo makes the political lineup of the supreme court five Republicans and four Democrats. Holmes was a Republican. Six Geniuses Wanted For Experimental Use Sight of Blood Informs Man He's Wounded ST. LOUIS, Feb. 15.—(UP)—Ray Dowling had been having trouble with the hot water heater in the basement of his home. Occasionally it would make a loud report when he turned the gas off. Dowling was tinkering with the heater in the dark of the basement. Because he is a nightwatchman he was carrying a revolver in a belt holster. "Suddenly I heard a loud report. I thought it was that crazy heater again, and I started upstairs, disgusted," Dowling said. When he reached the kitchen he began to feel faint and his chest pained him. He looked down and saw blood; his pistol had accidentally discharged, wounding him. His condition was critical today."


Article Text

Depositors In Utah Banks to Get U. S. Fund Ogden State, Farmers and Merchants of Provo and Deseret Savings of Salt Lake to Receive Loans ARRANGEMENTS have been made with the Reconstruction Finance Corporation whereby funds will be available to depositors of the Ogden State bank, the Farmers and Merchants Bank of Provo, the Deseret Savings bank of Salt Lake and other closed Utah banks up to 30 per cent of the amount of deposits. This was the statement issued today by E. O. Howard, chairman, and M. S. Eccles, O. W. Adams, and J. E. Cosgriff, members of the Reconstruction Finance Corporation's local advisory committee, following announcement that the Deseret Savings bank had been taken over by the state banking department. The committee indicated that this relief to depositors will be forthcoming just as soon as the closed institutions can file the necessary applications and comply with the legal requirements. DESERET NAT. BANK GOES TO ECCLES GROUP Deseret Savings, Another Distinct Bank, Is Suspended LEGAL PHASES The Utah attorney general's office and counsel for the advisory committee are looking into the legal phases of the situation and it appears that legal authority to borrow money from the Reconstruction Finance corporation must be obtained either by a special session of the legislature or through a test case to be acted upon speedily by the supreme court.


Article Text

Salt Lake Banks Unite, Scare Over LAKE CITY, Utah, Feb. banking situation in Salt Lake City today gradually turned to normal after conditions caused of the Deseret Savings bank. Simultaneous with the Savings bank suspension, the Deseret National bank, separate institution, taken over by and the Security National bank. The capital structure the SecurNational bank the consolidation is $750,000, surplus $250,000, and undivided profits and reserves $250,000. new potato masher has been that clamped to the edge kitchen table.


Article Text

FRAUD ALLEGED BY IN BANK SUIT (Continued From Page Nine) who may desire to join and have the benefits of the action." At the time State Bank Commissioner W. H. Hadlock took over the affairs of the Deseret Savings bank, February 13, It was and had been alleges. For many years the bank, with the Descret National bank, says the complaint, had engaged in the joint venture of conducting a general banking business In Salt Lake City. In this connection the two banks occupied and owned in common the same real estate, banking building and bankheld out to the public that they were effect one and the same institution, the complaint avers. ADVERTISED SOLVENCY In addition, it is pleaded, the banks by pamphlets, by prominently printed signs upon the banking house and Its windows asserted and held out to the public in the intermountain west that the Deseret Savings bank was solvent and had assets very largely in excess of its liabilities. Continuing. the complaint says: "That by reason of said false and fraudulent representations so made, and reliance thereon, the plaintiffs and other depositors have been damaged in the amount of approximately 35 per cent of the amount the sev(cral deposits. The exact amount of such damage cannot at this time stated. but an accounting will be required determine the precise amount thereof. That the defendants as directors and officers of the said banks have caused the insolv of said Deseret Savings bank by reason of their negligence and breach of duty as such officers and directors with respect to their knowledge. and handling of the affairs of said savings bank. INVESTMENTS QUESTIONED "Said negligence consisted in part of making from time to time, the retention thereof, imprudent, unreasonable and unbusinerslike investments, among others, in varlous common stocks, bonds and other securities of corporations managed and officered in large part by some or of said individual defendants, reads the The Security National bank, which moved into the quarters formerly occupied by the Descret Savings and Descret National banks, is made defendant because it absorbed the Deseret National bank on February 14. The complaint states that some of the plaintiffs made demand on the Descret National bank and the Sccurity National for the amounts of their deposits and have been refused by the banks. A general marshalling of assets and liabilities and an equitable distribution of the proceeds among the parties entitled thereto are asked. Edwin D. Hatch, L Bradford, G. M. Sullivan and A. Walton appear as attorneys for the depositors.


Article Text

BANK GROUPS HOLD PARLEY ON EXAMINER Hadlock Gives Ten Suggestions for Remedial Legislation Qualifications of men under sideration for possible appointment examiner of the closed Deseret Savings bank discussed Monday afternoon by Governor George Dern, Walter H. Hadlock, Utah state bank commissioner, who will make the appointment, and Judge Joshua Greenwood, chairman of commitof Names more be approved the sented by Judge Greenwood, dition names mitted the commissioner and the Ten for remedial legislation in connection with the banking system made Monday in the statement by ComHadlock: result of bank failures, banking system people. Obviously be taken in the future and to further safeguard deposmoney. anticipation of such legislation offered Permit organizing bank only where all jusProvide way for immediately collecting assessment case impaired capital. (If 100 per cent have been immediately availbank Require deposit the classes and amount securities which commercial savings trust company invest funds. detailed classification bank's assets its published (Depositors to know how their money invested.) Require each director to knowledge receipt the copy report and familiarize contents. powbanks justifies, provide that all records and securities the department and apart from the affairs of the Place some restrictions on the bank borrow rediscount from acceptfor deposit public funds unless secured. Require the verification of year. Prohibit more incorporated for division ing failed banks division. Make the state banking assessment against instituunder Grant bank such powers are necessary for him take mediate action remedy an unsatisfactory condition law violation Justify the confidence the public banks surrounding money with ample safety.


Article Text

COURT GRANTS FOR BANK'S ANSWER Date Postponed to May for Time to Plead or File Reply A defense motion asking an extension of time to answer or plead to suit filed by depositors in the defunct Descret Savings bank, against that bank, the Descret National bank, the Security National bank and the of ficers and directors of those tions was granted Tuesday by Judge William H. Bramel. The time limit set in the original complaint was April but Judge Bramel granted the motion to tend the time to May The action taken after formal motion heard from attorneys representing some the defendants. suit filed March by Lynn Cummings and others seeking turn of their deposits the grounds that the officers and directors of the closed bank by advertising and otherwise senting connection with the Desbank. Judge Bramel made general depositors of the closed bank that the examiner charge of the affairs maintains of Salt building and that all made of him rather than of the


Article Text

$218,153 Sought in Action Against 72 Judgments against 72 individual totaling are asked in suit filed the district court by John Malia, bank commissioner. The is based on liability of stockholders the Deseret Savings bank. The bank had capital stock of 5,000 shares $100 per and has been for per cent stockholders liability. suit points YOU'VE HEARD Depositors of the bank will ceive the stockhold ABOUT IT! ers minus the expense of collection. addition to pay. ment 35 bank credits that may withdrawn half one year and half in another per More than half the stockholders liability has been paid.