Bank of Yuma (Yuma, AZ)

Episode Information

Episode UID
3260441591259
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
326044159 hash
Start Date
November 1, 1904
Location
Yuma, Arizona (32.725, -114.624)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ae48a58fcae170ba

Response Measures

None

Description

Failure attributed to improper banking methods and later alleged embezzlement by the cashier; receiver appointed.

Events (2)
1. November 1, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed because of alleged improper banking methods and insolvency; cashier R.S. Patterson later accused of embezzlement.
Newspaper Excerpt
The Bank of Yuma last week closed its doors on account, it is alleged, of improper banking methods.
Source
newspapers
2. December 21, 1904 Receivership
Newspaper Excerpt
RECEIVER'S REPORT ON BANK OF YUMA. George Michelsen, receiver for the Bank of Yuma, last week made to the district court a report of his findings in his investigation of the defunct bank's affairs.
Source
newspapers

Newspaper Articles (14)
1. November 3, 1904 The Copper Era Clifton, AZ
Article from The Copper Era, November 3, 1904

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Article Text

The Bank of Yuma last week closed its doors on account, it is alleged, of "improper banking methods." During the same week the announcement was made that J. W. Thornton & Sons, bankers of Yuma, had sold their banking business to J. N. Porter and associates is Graham county. The people of Yuma are to be congratulated on securing an institution which does business on *sound, safe and conservative" principles. As the ERA remarked some time ago, it would seem that Graham county men, and Graham county capital, are destined ere long to control the banking business of southern Arizona. Mr. Porter started the first bank in Graham county, at Safford. The following year A. G. Smith and associates opened the Gila Valley bank at Solomonville, and since that time there has been a friendly rivalry between the two institutions for the control of the banking business of southern Arizona. Mr. Porter's next move was to start a bank at Globe, and later he bought the Bank of Clifton which he organized into the First National bank. About that time the Gila Valley Bank entered an era of expansion, by opening banks at Clifton and Morenci, and later it purchased a small bank at Globe, which it reorganized and is now running. During the present year Mr. Porter organized the First National Bank of Bisbee, just to make the thing even, and now he has branched out into the Colorado river country, and there is really no telling when he will stop. He now has "one on" the Gila Valley people, but the chances are that they will even up the score before many months. At the present time nine banks are controlled by these two institutions in various parts of the territory and they are backed entirely by home capitalists, who have perfect confidence in both institutions. The ERA hopes that they may continue expanding until they have branched in every county in the territory.

2. November 5, 1904 The Williams News Williams, AZ
Article from The Williams News, November 5, 1904

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Article Text

"Injudicious banking" is the reason assigned for the failure of the Bank of Yuma. Its doors were closed yesterday morning and the territorial bank examiner has been asked to take charge. Levi Sparr, of Pennsylvania, is its president, and R. S. Patterson, Yuma, cashier. Its capital stock was $10,000.-Gazette, Oct. 29.

3. December 21, 1904 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, December 21, 1904

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RECEIVER'S REPORT ON BANK OF YUMA. George Michelsen, receiver for the Bank of Yuma, last week made to the district court a report of his findings in his investigation of the defunct bank's affairs. The report is necessarily incomplete as yet, but the following general summary will give some idea of the condition of that institution:

4. December 28, 1904 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, December 28, 1904

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NOTICE. All parties who have heretofore left private papers and papers in escrow in the Bank of Yuma to be kept and delivered on demand, will please call for same. GEO. MICHELSEN, Receiver for Bank of Yuma

5. December 28, 1904 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, December 28, 1904

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NOTICE. To depositors of Bank of Yuma. All parties who have given their bank deposit books for balancing will kindly call for same at earliest convenience. GEO. MICHELSEN, Receiver for Bank of Yuma.

6. February 1, 1905 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, February 1, 1905

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Supervisor Marvin made a business trip to Imperial last week. The steamer Searchlight arrived last week from Quartzsite landing and upriver points. Miss Grace Wapperman leaves to-day for Carlsbad, N. M4, on a visit to her sister, Mrs. A. P. McCarton. Bread delivered to all parts of town. Phone 04, -Kent & Adams J. S. Crawford of Chicago, a Quartz site mine owner, was in Yuma the first of the week. He left for Quartzsite by steamer yesterday. 124c percale for 7)c per yard at the New York Store. Mrs. Jas. H. Watson, who is interested with Col. Bouton in mining property in the Empire Flat district, arrived at Hotel Gandolfo yesterday. Yo caint fool me chile, kaise T shore gits ma money's worf at Alexander & Co.'s Sheriff Gus Livingston returned from Colton Friday. The suspect held there for the robbery of the Stratton home in Yuma proved not to be the man. Bids are let for the irrigation work, and we bid for your patronage at the Silver Moon Cafe. George Michaelson, receiver of the Bank of Yuma, came in from a business trip to Phoenix Monday to attend to his duties as such receiver. Get in the band wagon and ride if you want to be in the lend, for we head the procession, the only Alexander & Co. When you come to town call at The Ruby and see the latest. S. A. Haught of Gila county and Chas. Strong and wife of Bisbee registered at the Southern Pacific hotel Sunday. Messrs. Haught and Strong were members of the prison committee. 75c double blankets for 50e per pair, at the New York Store. Ex-Chief Justice A. C. Baker, one of the ablest lawyers in Arizone, is here on business pertaining to the silent and defunct Bank of Yuma. Mr. Baker is coansel for the depositors of that institution. If you want to get "the dough" just get some of Alexander & Co.'s special brand of "Drifted Snow" flour. Guaranteed to be the best. Hon. Alfred Ruiz of Apache and Dr. Looney of Yavapai, members of the prison investigating committee, were guests of Hotel Gandolfo Sunday and Monday. Mrs. Looney and her sister, Miss Mayer, accompanied the doctor. "Good eating" at the Silver Moon Cafe. Announcements are out for the marriage of Anna, daughter of Captain and Mrs. U. S. Smith to J. W. Helms of San Francisco, to take place Wednesday evening, February 8, at the home of the bride's parents on Main street. Yuma. Ladies' skirts from 95c up, at the f New York Store. r Col. Ed. Ingraham, the well-known a cattle man of Santa Barbara, Cal., was in Yuma this week. The colonel purchased the Thurman and Fraker b ranches in the Yuma valley and conc templates making this his future home. The Sentinel extends a welcome. S in Come and see our new line of per S fumery, toilet articles and preperA ations-best that can be secured. ti Ketcherside Drug Co. a Prof. Bardet left for Los Angeles S Saturday evening to purchase new N equipment and supplies for his photoa graphic studio. The professor stated ti that his business is increasing to such t an extent as to compel a decided eno largement of his present facilities, hence his trip to the city. S Farm lands, town property, residences o and all kinds of real estate bought, sold F and rented by the Yuma Title Abstract Company, Molina Block, Madison Avenue. The wife and little daughter of I Thomas M. Polhamus, oldest son of I Captain and Mrs. Isaac Polhamus, are in Yuma for a visit. Thomas M. PolI hamus has the position of chief clerk for the Southern Pacific Company's long wharf at Santa Monica, and has held the position ever since the wharf was built, or about twelve years. W.C. Tonkin, the well-known mining man, and wife were at Hotel Gandolfo Sunday and Monday. Mr. Tonkin has some fine copper properties in Copper Mountain, Cabezas mining district, ten miles south of the old Tacna station on the S. P. railroad. Col. Tonkin is working quite a number of men in developing bis properties and is very much encouraged over the prospects. Taena station having been abandoned, Mr. and Mrs. Tonkin ho went to the mines yesterday, left the railroad Welton, the nearest railroad point to the property. Los Angeles Examiner at Touint's

7. March 28, 1905 Arizona Republican Phoenix, AZ
Article from Arizona Republican, March 28, 1905

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THE ARREST OF A BANKER Capture of R.S. Patterson, Late Head of a Yuma Institution. Word was received in the city yesterday that R. S. Patterson cashier of the defunct bank of Yuma had just been arrested in Texas on a warrant from this territory charging him with embezzrement in connection with the affairs of the bank. is requisition for the arrest of Patterson was issued by Governor Kibbey a week ago but at that time it was not known where he was, though he was believed to be in Kansas. It was not generally known that criminal proceedings were to be begun against him, though a civil suit was pending against him and his associates in the bank. The papers on which the requisition was issued specify only one item of embezzlement, $1,032.75. Patterson had been indicted and the people back of the proceeding were so much in earnest that they retained Judge Baker of this city to prosecute him. He will be brought back to the territory within a day or two by Sheriff Livingston of Yuma. The Bank of Yuma failed early last fall in the most informal manner. Patterson who had been in the east the leaving left the bank in charge of W. A. Bowles of Yuma. There was not a great deal of banking business to be done as Mr. Bowles soon learned but there was nothing to do it with. Mr. Bowles, however stayed with this peculiar.jo unutil early in the fall and when he could stand it no longer he closed the bank without extensively announcing his intended action to the people of Yuma. He merely neglected to open for business at the accustomed hour one morning. But he wrote to told him where he could find the key is he desired to make an investigation of the affairs of the bank. Then he went to the coast for a much needed rest. The auditor did find a fruitful field of investigation-nothing more-no cash. A great deal of money appeared to have been carlessly loaned and most of it consisted of the small savings of the farmers in the country about Yuma. It was generally thought at the time that the unfortunate condition of the bank was the result of incompetence and ignoran, of the banking business. The first proceeding was to throw the affairs of the bank into the hands of receiver George Michelson. On the return of Patterson to Yuma he was unable to throw a great deal of light on the situation. He remained about Yuma for some time and then disappeared. On what information criminal proceedings were begun against him is not known but for some time it had been suspected that there was more than mismanagement behind the collapse of the bank. It is said to have been discovered that Patterson was handling more money than the head of a collapsed bank could be reasonably supposed to be in possession of. It was also learned that he was making extensive investments in Texas real estate. Patterson first came to public notice

8. May 5, 1905 Graham Guardian Safford, AZ
Article from Graham Guardian, May 5, 1905

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ROBERT S. PATTERSON Denies Disparaging Reports of His Connection With the Yuma Bank Failure EDITOR GUARDIAN, Safford, Arizona, Dear Sir:Many reports have been circulated in the papers of Arizona and El Pasoabout me and my connection with the failure of the Bank of Yuma. One is that I killed myself at Yuma when I returned there before the grand jury met in April. This of course needs no denial. Another report was that I left Yuma last December for parts unknown and was supposed to be in Kansas. The truth is that when I learned of the closing of the bank November 1st, I immediately returned to Yuma and endeavored to reopen the bank. My whereabouts were known to every person in Yuma, ] would have probably succeeded in reorganizing and re-opening the bank at that time bad I not been blocked in my efforts by some of the depositors themselves. I remained in Yuma at that time until about the 12th of December and when I left there I did it openly, having bid a friendly goodby to many of the people. Every one knew that I was going to Kopperl, Texas. From that time on 1 was in constant correspondence with a number of "the most prominent men there and at no time were my whereabouts unknown. That was a lie made out whole cloth, for the party who published the article could have easily found out from a hundred people in Yuma where I I was had he desired to know. came back to Arizona without requisition papers, for had the papers been presented to the gov. ernor of Texas he would undoubtedly have turned them down. I have also been accused by their articles of having invested heavily in Texas real estate. In reply to this I will just say that I never in my life owned a foot of Texas real estate, except a section of land at or near Tulin, Texas, for which I exchanged a relinquishment of my desert entry near Yuma and some other property. I did not pay any money on it. The only property that my wife ever even had an equity in was a piece of land worth probably $2500, which was part of her inberitance. Her equity in it amounted to about $1000. We never paid a cent on real estate in Texas or anywhere else except when we bought in Arizona while living in Yuma and all that has been turned over to the receiver of the Bank of Yuma. So that the assertion that I bought from $20,000 to $40,000 of real estate in Texas or anywhere else is a pure fabrication. The other assertions are equally as untrue. They have all teen inspired by the parties who are prosecuting, or rather persecuting, me. The principal witness against me is the only man who had an insecure claim, and he has received every cent due him. I gave my word to pay him in full and in keeping my word with he has gotten me into all this trouble. Had I not tried to do right by him he would not have cent of his money.

9. September 6, 1905 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, September 6, 1905

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George Michelsen, Receiver of the Bank of Yuma, plaintiff, VS.

10. March 14, 1906 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, March 14, 1906

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More Law Suits. Geo Michelsen, receiver for the Bank of Yuma has brought twenty suits in the justice's court against parties who owe the defunct bank.

11. April 18, 1906 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, April 18, 1906

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DISTRICT COURT. J. C. Hampton was arraigned last Thursday on the charge of perjury. He plead not guilty, and his trial on this charge was set for Thursday of this week. Lizzie Spear on Saturday was granted a divorce from James R. Spear on the grounds of desertion. The suit of George Michelsen, as receiver of the Bank of Yuma, against H. C. Davis was decided in favor of the receiver. The suit was on a promisso= ry note for $901.82 and judgment was given against ten thousand shares of Ludy canal stock placed in the bank as security.

12. May 9, 1906 The Arizona Sentinel Yuma, Arizona City, AZ
Article from The Arizona Sentinel, May 9, 1906

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Small Dividend for Depositors. Geo. H. Michelsen, receiver of the Bank of Yuma, has declared another dividend (10 per cent) in favor of the depositors of the defunct institution. "Small favors thankfully received," say the depositors.

13. March 20, 1908 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, March 20, 1908

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CREDITORS ARE PAID ADDITIONAL DIVIDEND Depositors of Defunct Yuma Bank Faring Well. Democrat, Phoenix: Depositors of the defunct Bank of Yuma yesterday received a dividend of 10 per cent on the money they had in the institution when it failed in 1904. The checks are drawn on the Southern Arizona Bank & Trust company of Tucson by George Michelsen, court receiver. This is the fourth dividend which the persons involved have received. A total of 47 per cent of their money has now been returned and probably another small dividend will be realized. The unfortunate depositors are gratified to get so much back and they feel that Receiver Michelsen has done exceedingly well with his trust. Want Ads Bring Results

14. November 22, 1908 Tombstone Epitaph Tombstone, AZ
Article from Tombstone Epitaph, November 22, 1908

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YUMA BANK FAILURE Defunct Bank Pays 57c on the Dollar--$71000 Smash The affairs of the Bank of Yuma which failed four years ago, has been closed this week and Receiver Michel son granted his discharge. The total amount of the indebtedness was $71,000. and by the report thebank paid 571 cents on the dollar. Yuma residents were the principal loosers by the collapse but a number of Cochise county people also suffered small losses