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H. R. WOOD RECEIVER FOR BANK OF JEROME Homer R. Wood, state fair commissioner and recently named to membership on the state industrial commission, has been appointed by Governor Hunt as receiver for the Bank of Jerome. He has accepted the appointment, he stated, and will begin his duties soon.
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WOODS TO REPRESENT BANKS AS RECEIVER Homer R. Woods, who has been appointed special bank superintendent to liquidate the affairs of the Prescott State bank, the Commercial Trust and Savings bank and the Bank of Jerome, all of which closed their doors on November 25, was appointed the attorneys who will represent him in closing up the business of the three banks. John L. Sullivan has been named to represent the special deputy in the affairs of the Bank of Jerome, while Judge John A. Ellis of the law firm of Ellis and Bryne, will appear as counsel in handling the business of the two local banks.
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JEROME BANK CASHIER GIVES HIMSELF UP Paul H. Deming, cashier of the defunct Bank of Jerome who has been sought in vain throughout southern California since last Thursday, when three warrants for his arrest were filed by Bank Receiver Homer Wood, surrendered himself to the sheriff's office Tuesday afternoon, returning from the coast on the 1:45 o'clock train. At the time of his surrender to the officers, Sheriff E. G. Weil was in Los Angeles acting in cooperation with the police of that city in a search for Deming. Weil is expected to return to Prescott within a day or so, bringing with him Earl and Ross Foreman, officers of the Jerome bank, who are wanted on the same charges.
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JEROME MERCHANT ARRESTED AFTER BANK CLOSING Prescott.-A warrant for the arrest of Peter Gordon, proprietor of the Golden Rule store in Jerome, was issued Saturday on a complaint filed by Homer R. Wood, receiver for the defunct Bank of Jerome. Gordon, whose place of business was attached on behalf of the bank Wednesday, is charged with having transferred all title to his property in Jerome to the Golden Rule stores company with intent to defraud the bank and its depositors. He is heavily indebted to the institution. A similar charge was brought against A. E. Weideman, Jerome broker, who was arrested Wednesday on a felony charge.
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ARRESTS MADE IN THE JEROME BANK FAILURE CASE Prescott.-Felony warrants have been issued in Jerome in behalf of A. T. Hammons, state superintendent of banks, for the arrest of Paul H. Deming, cashier of defunct Bank of Jerome, Ross and Earl Foreman, John A. Johnson, theater owner, and A. E. Weidman, Jerome broker, who are charged with violations of the criminal part of the state banking code. Three felony charges already have been issued and others are expected to be issued later. Weidman and Johnson were apprehended last week and were released on bonds aggregating $6700. Deming and the two Foremans, one assistant cashier and the other clerk in the closed bank, left immediately following the failure of the bank for California. Issuance of the warrants and the arrests are the first actions taken by the bank receiver since 'he ordered an audit of the affairs of the institution. Juggling of the bank's funds and making a number of false entries on the day the bank closed is said to be the reason for issuance of the warrants. A grand jury investigation of the bank business has been asked by members of the Jerome and Clarkdale posts of the American Legion. Under a writ of attachment issued by the receiver the sheriff's office took over the Golden Rule store in Jerome, the property of Peter Gordon and John D. Johnson, pending the payment of a note for several thousand dollars due the bank.
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JEROME BANK CASHIER GIVES HIMSELF UP Paul H. Deming, cashier of the funct Bank of Jerome has been sought vain throughout southern California since last Thursday, when three warrants for arrest filed by Receiver Homer Wood, himself the sheriff's office Tuesday afternoon, returning from the coast on the 1:45 o'clock train. At the time his surrender to the officers, Weil Los Angeles acting in cooperation with the police of in search for turn within day bringing with him Earl and Ross Foreman, officers of the Jerome bank, are wanted on the same charges.
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JEROME MERCHANT ARRESTED AFTER BANK CLOSING warrant for the arrest Peter Gordon, proprietor Golden Rule Jerome, sued on filed Homer R. Wood, receiver for the funct Bank of Jerome. Gordon, whose place of was attached on half the bank Wednesday, chargwith having transferred all title his property Jerome to the Golden Rule stores company with intent defraud the bank and its depositors. He heavily indebted to the institution. similar charge was brought against A. Weideman, Jerome broker, who was arrested Wednesday on felony charge.
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FORMER JEROME CASHIER BOUND OVER TO AWAIT TRIAL Paul H. Deming, formerly cashier of the Bank of Jerome, and A. E. Weidman, of the Weidman and company brokerage firm of the copper camp were bound over to await trial in superior court of Yavapai county Tuesday on felony charges brought against them by A. T. Hammons, state superintendent of banks, through Homer R. Wood, receiver for the Jerome bank. The specific charge upon which the two men are held is falsifying the books of the bank, which failed to open on November 25, and of aiding and abetting in the falsification.
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JUSTICE DISQUALIFIED PRESCOTT, Jan. 20.-Disqualified by an affidavit of bias and prejudice, Justice of the Peace Clyde B. Jones today assigned further preliminary hearings in the numerous criminal cases growing out of the failure of the Bank of Jerome to Justice of the Peace Dan L. Robinson of Clemenceau. The hearings in the case of Paul H. Deming, cashier of the defunct institution were postponed until next Tuesday.
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PRESCOTT STATE BANK MAY STAND BIG LOSS The Prescott State bank, which failed to open its doors on November 25 of last year, faces a loss of $633,113.74, this figure being the most optimistic that possibly could be given, according to Receiver Homer R. Wood who took the stand in the superior court at Prescott Saturday when his petition to collect their liability on bank stock against the stockholders in the institution was heard. This figure, according to A. T. Hammons, state superintendent of banks, is far too optimistic, however, and the loss which the depositors and stockholders of the closed bank will face when the final reckoning is held will be closer to a million dollars, he has reported to Mr. Wood. Mr. Hammons' estimate of the bank affairs is that it would take that amount to put the bank on a going basis. Following the hearing of the petition, held before Judge Richard Lamson of division two of the superior court, an order was entered granting the petition. As the result, the receiver will make a demand upon the stockholders in the bank for the payment of their liability of the $100 par value of each share, which would net the bank $100,000. Should the stockholders fail to meet the demand of the receiver, suits will be instituted for the collection of the liability, according to Judge John A. Ellis, attorney for the receiver in connection with the affairs of the Prescott State bank. Some few of the stockholders already have met their liability Judge Ellis said Saturday, and little difficulty in collecting from the rest of them is anticipated. Only one of the stockholders in the Bank of Jerome, which was closed on the same day, has paid. A dividend on their deposits in the closed bank will be paid the depositors as soon after the first of May, when all the claims will have been filed, as is possible, the attorney said.
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What About Bank Failures. ? In a carefully worded letter E. A. Sawyer assails the State Banking Department for what he alleges to be non-enforcemnt of the State Banking Laws. E. A. Sawyer knew the officials of the Yavapai county banks to whom he referred, as well, or better, than the State Superintndent of Banks because he knew them longer. The people of Yavapai county had implicit confidence in the integrity of the bank officials. The Superintendent of Banks refleced the confidence of the community. The banks in Prescott and Jerome had frozen paper on some undetermined losses but when the Superintendent discovered the illegal status and fraudulent situation in the Bank of Jerome he closed all three banks. No Superintendent of Banks Can Protect Against Dishonesty Until it is Discovered Eight bankers have been convicted and are in the State Prison for violation of the Banking Laws. Mr. Sawyer says and repeats what has been said by the Ellinwood forces in this campaign: "That other states have had no bank failures because the laws are enforced." This statement is absolutely untrue. Only one state in the United States has been free from bank failures in the past two years. Over eleven hundrd banks-both State and National Banks-have failed in the United States in the past two years. The Hunt administration closed 13 banks. The depositors in four of these banks have been paid 100 cents on the dollar. Of the remaining 9 banks all but two will pay in excess of 50 cents on the dollar. At least two of these are expected to pay 100 cents on the dollar. The Governor recommended to the Legislature in 1923 and again in 1925 that the Banking Laws in the state be strengthened. The Legislature enacted no legislation. The Governor States: "If Elected Shall Again Recommend Banking Legislation and Will Sign Any Bill That Will Constructively Protect Bank Depositors" The criticism being hurled against the Governor because he did not close 26 of the 32 State Banks because of a technical provision of the law regarding excess loans, borders on lunacy. Would the people of Arizona prefer 26 gaunt wrecks in the hands of receivers, with bankrupt business houses and depositors' money lost, and the State plunged into bankruptcy, or the present condition, where 23 of the 26 banks affected are sound, safe, solvent banks today.
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Banker Cleared in Arizona Faces Another Charge JEROME (Ariz.) Oct. (Exclujury at Flagstaff has cleared Paul H. Deming of charge of embezzlement of of the Bank of Jerome, which he was cashier the time of its failure last November Next tried on another indictment. use large amount of bank funds in Callfornia speculation. were returned against four The sent from Prescott to Flagstaff for trial on of prejudice this county against the defendants.
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PRESCOTT BANK MAY PAY IN FULL IS REPORT Under the receivership of Homer R. Wood affairs of the Commercial Trust & Savings bank are reported trending toward full repayments of the depositors and creditors, while something approaching a gross dividend of 75 percent is expected for the creditors of the Prescott State bank. Somewhat more involved are the affairs of the chain, the Bank of Jerome, from which a very small return may materialize. Paul Deming, who was cashier of the Jerome bank, returned from Pasadena, is to be tried, on change of venue, by a court in Phoenix, on a charge of receiving deposits for an insolvent institution.