Farmers & Merchants Bank (Tempe, AZ)

Episode Information

Episode UID
91005371483
Episode Type
Suspension → Run → Closure
Bank Type
state
Bank ID
9100537 routing
Routing Number
91-0053
Start Date
July 27, 1923
Location
Tempe, Arizona (33.415, -111.909)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
287a80d2a793f038

Response Measures

None

Description

The bank was closed by the state superintendent following the cashier's destruction of records; the run/agitation occurred several days after the suspension.

Events (4)
1. July 27, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The cashier confessed to burning and destroying the bank's most valuable records, including general ledgers, during a state examination.
Newspaper Excerpt
Andrew T. Hammons, state superintendent of banks, promptly closed the doors of the institution and took charge of the bank as receiver for the state.
Source
newspapers
2. July 31, 1923 Receivership
Newspaper Excerpt
Dr. R. T. Stroud of Tempe was appointed receiver for the Farmers and Merchants bank of Tempe yesterday by Andrew T. Hammons
Source
newspapers
3. July 31, 1923 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors became irate and gathered in a threatening manner following the bank's closure and the news of the record destruction.
Measures
Sheriff and deputies were dispatched to the scene to disperse the crowd.
Newspaper Excerpt
a crowd of Tempe citizens, in a belligerent mood, had congregated on the main street in front of the Farmers and Merchants bank there, and had assumed a threatening attitude
Source
newspapers
4. October 10, 1923 Other
Newspaper Excerpt
Thorntone Jones, former cashier of the defunct Farmers' and Merchants' bank of Tempe, entered the gates of the state prison at Florence Wednesday to serve a sentence of four to five years.
Source
newspapers

Newspaper Articles (9)
1. July 28, 1923 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, July 28, 1923

Click image to open full size in new tab

Article Text

CASHIER REMAINS AT SHERIFF'S OFFICE ALL DAY AND EVENING WAITING FOR OFFICERS TO ARREST HIM; BANK DEPOSITS BELIEVED OVER $300,000 At midnight last night, 17 hours after Thornton Jones, jr., cashier of the Tempe Farmers and Merchants bank, had fired and destroyed many of the institution's most valuable records, no arrests had been made. Neither had a formal request for a complaint for the arrest of the person or persons responsible for the act been made, Gene S. Cunningham, county attorney, told The Republican early this morning upon his return from a visit to Tempe. Mr. Cunningham would not discuss the significance of his Tempe trip. Thornton Jones, jr., cashier of the bank, who early yesterday morning confessed to firing many of the bank's most valuable records, was at liberty, free to go and come as he pleased, at that hour, at least insofar as he knew, Mr. Cunningham stated. He, Jones, was not under police surveillance, it was stated. It was not until late last evening that the county attorney's office was officially advised of the excitement at Tempe, County Attorney Cunningham said, and even then no request for a complaint was made. The matter was discussed informally with representatives of the state superintendent of banks, he added. Discussing the probability of a complaint today, Mr. Cunningham declared that an information would be filed "upon request and after his office had satisfied itself that it was necessary and proper." Bank's Officers Should Act Until such time as the state banking department has completed its examination of the bank's records, or what remain of the bank's records, request for a complaint should properly come from officials or executives of the bank, he continued. No such request yet has been made to his office, he said. "The only report that this office has had of the destruction of the bank's records has been furnished us informally by representatives of the state bank superintendent," Mr. Cunningham asserted. "They did not ask this office to issue a complaint or information against Jones or any other official of the bank." It would be possible to initiate criminal proceedings against Jones in the Tempe justice court, Mr. Cunningham stated, but so far as could be learned early this morning, no action had been taken. When it was learned early yesterday morning that Cashier Jones had destroyed many of the most important records of the bank, including the general ledgers, Andrew T. Hammons, state superintendent of banks, promptly closed the doors of the institution and took charge of the bank as receiver for the state. Burning of the records, for which Mr. Jones has assumed full responsibility, occurred before 7 o'clock yesterday morning. Jones' act followed institution of a special examination of the bank Thursday evening under direction of the state bank superintendent. It was the plan of the state banking officials, who worked late into the night Thursday, to return to the bank early yesterday morning and complete their examination before banking hours. First information that Cashier Jones was burning the records was had when the bank janitor went to the home of W. J. Kingsbury at 6:30 o'clock yesterday morning and informed the son, W. W. Kingsbury, assistant cashier, that Mr. Jones was at the bank. Tells of Burning Records Young Kingsbury went at once to the institution, where he met Jones. "I have burned the records and am going to give myself up to the sheriff," young Kingsbury quoted Jones as saying. "I've played the game and lost," was another statement Jones is alleged to have made in commenting upon his act. Later the vault of the bank was opened by Mrs. W. J. Kingsbury and J. F. Dodson, state bank examiner, and they were greeted with a cloud of smoke which poured from the vault. The smoldering blaze in the vault was quickly extinguished with a small hand chemical. While this was going on, Jones was enroute to Phoenix to give himself up. Appearing at the sheriff's office some time later, he said: "You'll be looking for me in a little while, so I came over to be handy." Attaches of the sheriff's office pressed Jones for an interpretation of his statement, but he refused to comment. "There'll be a warrant out for me in a little while and I'll be right here handy," was his only rejoinder to their many questions. Later, Jones went to the law office of Hayes, Stanford, Laney and Allee, where he sought legal advice. He conferred at some length with R. C. Stanford, former judge of the criminal division of the superior court. Leaving the office of the legal firm, he returned to the sheriff's office, where he remained for a period of hours. Shortly after 5 o'clock in the afternoon, Jones, accompanied by Bank Examiner Dodson, returned to the office of Hayes, Stanford, Laney and Allee. Together they went into conference with Judge Stanford. Examiner Dodson denied emphatically that his talk with Judge Stanford had anything to do with the Tempe bank situation or with Mr. Jones' part in the destruction of the bank's records. "I had no idea that Jones had retained the firm or had been to see Judge Stanford," Examiner Dodson said. "I had been talking with Jones in the sheriff's office some time before and when I mentioned that I was going over to see Judge Stanford, Jones invited himself to accompany me." Refuses to Comment Judge Stanford said he had no statement to make at this time, either on behalf of himself as attorney for Mr. Jones, or on behalf of Mr. Jones. The special examination of the Tempe Farmers and Merchants bank was ordered, representatives of the state bank superintendent said, as a result of rumors circulated in Tempe recently regarding the bank's inability to meet its current obligations. Examiners were sent to the institution at 6 o'clock Thursday evening, and immediately began work. Officials of the bank, including

2. July 28, 1923 Honolulu Star-Advertiser Honolulu, HI
Article from Honolulu Star-Advertiser, July 28, 1923

Click image to open full size in new tab

Article Text

Bank Fails In Arizona (By The Associated Press.) PHOENIX, Ariz., July 27. — The Farmers' and Merchants' bank at Tempe near here, closed today. Thornton Jones, Jr., cashier, told the sheriff that he had burned the bank records. The institution had $400,000 in deposits.

3. August 1, 1923 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, August 1, 1923

Click image to open full size in new tab

Article Text

IRATE TEMPE DEPOSITORS CROWD ABOUT BANK DOORS County Officers Hurriedly Dispatched to South Side City; Arrests Are Expected Today A call to the sheriff's office in Phoenix sent in early last night from Tempe, to the effect that a crowd of Tempe citizens, in a belligerent mood, had congregated on the main street in front of the Farmers and Merchants bank there, and had assumed a threatening attitude, resulted in the speedy dispatch to the scene of several auto loads of deputies. County Attorney Gene S. Cunningham was also advised of the occurrence and made a hurried run to the Tempe bank. When the deputies, headed by Sheriff Jerry Sullivan, arrived in Tempe, a crowd of men, estimated at close to 50 in number, was assembled in front of the bank. No demonstration occurred, however, and the assembled citizens quietly dispersed shortly afterward. No order was issued by Sheriff Sullivan, because none was needed. An arrest, growing out of the Tempe bank situation, is expected some time today. Feeling in Tempe, however, regarding the situation developing from the closing of the bank and the burning of papers constituting the records of the institution, last Friday morning, was intense. Fear that the spirit of the citizens might crystallize into definite destructive action against persons or property led to the hurry call and the emergency run by the sheriff's office last night. Dr. R. T. Stroud of Tempe was appointed receiver for the Farmers and Merchants bank of Tempe yesterday by Andrew T. Hammons, state superintendent of banks, the latter announced. Dr. Stroud took his oath as receiver at 3 o'clock yesterday afternoon and immediately took charge of the bank. Dr. Stroud was selected last Saturday as the chairman of the committee of three appointed to confer with W. J. Kingsbury, president of the bank. Since the partial destruction of the records of the bank by fire, Dr. Stroud has taken an active part in the matter on behalf of the depositors of the bank. Mr. Hammons announced yesterday afternoon that he expected the report of the examiners of the bank would be filed with the clerk of the Maricopa county superior court today. The report will be only a partial one, Mr. Hammons said, due to the fact that many of the records of the bank were destroyed and rendered unintelligible by fire.

4. August 1, 1923 Los Angeles Evening Citizen News Hollywood, CA
Article from Los Angeles Evening Citizen News, August 1, 1923

Click image to open full size in new tab

Article Text

NAMES BANK RECEIVER PHOENIX, August 1.—Dr. R. J. Stroud, chairman of the depositors' committee, yesterday afternoon was appointed by Bank Superintendent Hammonds to be receiver of the Farmers' & Merchants' bank at Tempe on petition of a majority of depositors.

5. August 8, 1923 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, August 8, 1923

Click image to open full size in new tab

Article Text

TEMPE TO JOIN IN PAYING HOMAGE TO LATE PRESIDENT TEMPE, Aug. 7—Tempe will join with the other cities and towns of the nation in paying homage to the late President Warren G. Harding on the day of the final obsequies in Marion, Ohio. Memorial services will be held in the Methodist church at the same hour as that of the funeral in Marion, it has been announced. The hour will be made public that all the community may attend. This service is for all of Tempe. It is planned to secure a speaker from Phoenix to deliver the memorial sermon on that occasion. Bank Receiver's Notice Dr. Stroud, the receiver of the closed Farmers and Merchants bank, gives the following for publication: "Notice to Depositors: "Dear Sirs: I am trying to establish the deposit liability of the Farmers and Merchants bank of Tempe, now defunct. To do this it would greatly assist me if you would kindly bring or send in: "1. Your June statements and cancelled checks for June. "2. Your check book stubs, if available. "3. Any returned checks not honored. "4. Savings pass book. "5. Time certificates of deposits. "Also kindly inform me if this bank was indebted to you in any other way. "Thanking you for your early attention, I am, "Very truly yours, "DR. R. J. STROUD, "Special Deputy Superintendent of Banks, Ex-officio Receiver." The above letter is being sent to all depositors. Largest Watermelon Mr. Smith, living west of Tempe, brought in the largest watermelon of the season and sold it to the Pay-N-Takit. It weighed 57 pounds. Charles Paulk is now trying to prove that he ate it all himself. Tempe May Close It has not been decided yet whether the business men of Tempe will close their places of business Friday or not. Most of them seem to feel that it would be fitting to close in honor of the dead president. Personals J. M. Bowers arrived in Tempe Monday from Idaho by auto. Mr. Bowers was here last year and is well acquainted in Tempe. He is a relative of Mrs. Packnow who is making her home at the Olive. C. S. Mosier is quite ill at the Casa Loma hotel. Miss Laura Dobbs was in Washington, D. C., the day following the president's death and was much impressed by the observance of the sad and solemn rites of mourning for the dead president. Dr. A. J. Matthews sent a wire to the Normal office from Oregon that he would be in Los Angeles in a few days and that all letters should be addressed to him there. Mr. and Mrs. Jason H. Osborn are visiting with the Lamonts on their way to Flagstaff. Mr. Osborn is now the engineer at Hayden Junction. Up to a year and a half ago he was with the Southern Pacific and lived in Tempe. He is a brother of Mrs. Lamont.

6. August 20, 1923 The Grand Island Independent Grand Island, NE
Article from The Grand Island Independent, August 20, 1923

Click image to open full size in new tab

Article Text

New York — The C. D. Mallory Company, owners of the tanker Swift Star, have decided that a bolt of lightning struck the ship and that it went down with its crew of 28 men, since the vessel was not heard of since July 13, and the scorched body of a man believed to have been one of the crew was picked up amid wreckage in the Carribean sea recently. Youngstown, Ohio — The tube mill of the Republic Iron and Steel company, closed last week by a walkout of workers, who were dissatisfied because their ten hour day had not been reduced nor their wages increased, was operating today with a force said by the management to be about 75 per cent of normal. Atlantic City — Two million school children this fall will begin the study of accident prevention as a part of the study course, Marcus Dow, of New York, president of the National Safety Council, reported today to the executive committee and directors in session here. Special text books have been provided. Mr. Dow disclosed that safety education had been tried out in Seattle. Phoenix, Ariz.—Two indictments, one charging mutilation of the records of a banking corporation, and the other charging their destruction by fire were returned by a Maricopa county special grand jury yesterday, against Thornton Jones, Jr., cashier of the Farmers and Merchants bank, of Tempe, Ariz., which closed July 27, after a fire in the vault had destroyed important records. Grimsby, England, is now the greatest trawling center in the world. Between five and six hundred steam trawlers alone are now registered at this port, in addition to many other vessels. Improve Your Appearance More phosphate if you want your complexion to clear, eyes to brighten, and skin to become soft and smooth. Thin, nerve-exhausted people grow strong on Bitro-Phosphate and Tucker & Farnsworth guarantee it.

7. September 8, 1923 The Arizona Republic Phoenix, AZ
Article from The Arizona Republic, September 8, 1923

Click image to open full size in new tab

Article Text

DEPOSITORS MEET TO HEAR STATEMENT OF BANK RECEIVER TEMPE, Sept. 7.—One hundred thirty-five depositors of the closed Farmers' and Merchants' Bank of Tempe gathered at the city hall plaza Thursday evening and listened to a statement from the receiver, Dr. Stroud. They expressed themselves as favoring Dr. Stroud as trustee for the depositors when the receivership should terminate, asked many questions and listened to several give their views on the many phases of the bank situation.

8. September 28, 1923 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, September 28, 1923

Click image to open full size in new tab

Article Text

BRIEF ARIZONA ITEMS The Salt River valley cotton crop this year will be sold for approximate- by ly $10,000,000, acording to estimates Phoenix cotten men. The town of Holbrook, Ariz., was reported flooded and at least one life was lost when the recent flood water to swept through the town, acocrding reports, Approximately thirty families were hail made homeless by a rain and storm accompanied by a high wind at Hayden, seventy-five miles southeast of Phoenix recently. A. Von Borstel, manager of the Planchas de Plata mines, 188 miles from Nogales in the Altar district, and reports that the mine will reopen will employ about thirty men. rains in northern Arizona resent rivers to flood cently Heavy stage, northeast causmaterial damage to crops of killing live stock mamany campers on rooning ing Flagstaff, high and land. state convention of the Bankers' Association Arizona The annual Tucson. will be held October 26 and 27 at Over 200 Arizona bankers and their wives are expected to attend the meeting. The highway from Roosevelt lake through Payson to the northern line of the coupnty will soon be signed by the Automobile Club of Arizona. F. H. Hardy, general manager of the club stated today in Miami. After suspension of operations for about ten years, the La Dura Mining located on the by the Dolores and Company, owned Yaqui Mines, and river, Ltd., now has started operating again employs from 75 to 100 workers. The recent wide-spread rumors that the entire Apache county, Arizona, was under quarantine because of cattle scab and that, therefore, no cattle could be from that area have largely shipped exaggerated, according bureau to been in- of formation received from the animal industry. Apportionment of the tax levy of per each $100 of assessed of property in the as ten valuation cents for state road provided by the highway bill has been made by A. E. state to Stelzer, purposes acting auditor, The total the twenty-five per cent funds. amount apportioned was $697,002. Alfalfa seed growers of the Yumo will net a profit this season of about according to valley $250,000, with estimates the inmade by those in touch dustry. The crop has averaged about 141/2 cents a pound. Over 3,000,000 of seed were harvested this netting about $500,000, which should be yaer, pounds profit. half of A bronze memorial tablet to Justice Albert C. Baker of the Arizano SuCourt who died August 31, 1921, is placed upon the hall of the of preme being the main second east facade story of the state capitol building. The tablet is the fifth to be erected in the capitol in memory of members of the constitutional convention. Not only has the War Department at Washington approved in principle the project of transferring a government hangar to Tucson and erecting it upon the local municipal flying field but it has recommended that the entire field be leased to the government instead of the limited hangar space that has been under consideration. With the early completion of the 150-foot bridge across Big Hell canon and of twenty-eight miles of road between Ashfork and Puntenny, one of the outstanding achievements of the state highway administration will stand as an accomplished fact, and an unit of the important Prescott-Ashfork public use. road wil be thrown open to Jones, Jr., a county grand Maricopa Thornton indicted jury of by on the a charge of burning the records Farmers and Merchants' bank of Tempe, withdrew his former plea of not guilty in Superior Court at Phoenix and entered a plea of guilty to the charge. The bank closed July 27 after an early morning blaze in the vault had destroyed vital records. Industrial conditions in Arizona in general are much improved over 1922 and principally noted in cotton, metal mining (mostly copper), fruit, alfalfa, live stock and building. Installation of hoist on Roosevelt dam spillways is requiring small number of skilled workmen. A railway company has under construction a million dollar program of yard and bridge improvements at Yuma. Another railway company has under way many improvements to both trackage and depot buildings, principally noted at Winslow, Williams Pinto. Aditions to the railway at Tucson are under tion. Much devlopment and shops work construc- districts. is bedone in the metal mining shortage of and increased surplus comContinued miners ing skilled of metal mon (mostly transient) labor.

9. October 12, 1923 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, October 12, 1923

Click image to open full size in new tab

Article Text

ARIZONA BANKER ENTERS GATES OF PENITENTIARY ON FOUR-YEAR SENTENCE Thorntone Jones, former cashier of the defunct Farmers' and Merchants' bank of Tempe, entered the gates of the state prison at Florence Wednesday to serve a sentence of four to five years. Jones was sentenced recently by superior judge M. T. Phelps, after the cashier pleaded guilty to a charge of burning important records of the banking institution last July, on the eve of its enforced suspension from business. Jones entered the prison with the recommendations of the local sheriff's office as a model prisoner.