Mckinley County Bank (Gallup, NM)

Episode Information

Episode UID
95004071484
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
9500407 routing
Routing Number
95-0040
Start Date
August 20, 1923
Location
Gallup, New Mexico (35.528, -108.743)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e210860a11375aee

Response Measures

None

Description

Receiver appointed and later paid dividends; later articles allege misconduct by the receiver.

Events (3)
1. August 20, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy losses on cattle loans undermined the bank's security and caused collapse.
Newspaper Excerpt
The McKinley County Bank of Gallup closed its doors Monday morning.
Source
newspapers
2. August 24, 1923 Receivership
Newspaper Excerpt
State Examiner Gregg took charge of the bank's affairs shortly after the notice of closing was posted on the front door. Frank B. Mapel, receiver of the McKinley County bank at Gallup, was named ... (Mapel).
Source
newspapers
3. October 4, 1924 Other
Newspaper Excerpt
Frank B. Mapel, receiver for the McKinley county bank, will pay a 20 per cent dividend this Saturday, October 4.
Source
newspapers

Newspaper Articles (11)
1. August 24, 1923 The Winslow Mail Winslow, AZ
Article from The Winslow Mail, August 24, 1923

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GALLUP BANK CLOSES DOORS EXTENT OF LOSS NOT KNOWN cattle undermined the security of the The McKinley County Bank of Galloans. lup closed its doors Monday morning. The extent of the failure cannot now McKinley county and the town of be determined. State Examiner Gregg Gallup funds deposited in the defunct took charge of the bank's affairs bank are amply protected by bonds, shortly after the notice of closing according to an announcement by was posted on the front door. city officials of Gallup, following the According to information received closing of that institution. here business men of Gallup were T. F. Smalling is president of the called in to try to save the bank, but McKinley County Bank. T. E. Purdy, it was found that there was too great C. C. Manning and Sam Bushman are a loss from cattle loans. It is estivice presidents. Harold Blickensdermated that the loss is more than the fer is cashier, and C. F. Heyn is assitant cashier. capital and the surplus, which is said to be $120,000. The closing of the bank failed to It will be a week before the examicreate over-excitement, according to information received here. The three nation will be complete enough to permit a detailed statement of any other banks of the city were preparnature, according to a statement of ed for runs, anticipating such action Examiner Gregg received here. by some depositors. But the city Notes now held by the bank itself kept its head, business moved along will be reduced to the extent of the as usual and the other financial inMakers' deposits, he said. This, howstitutions attained greater solidity ever, does not apply to notes which through increasing deposits. represents bills payable, or which While groups of anxious depositors have been re-discounted. He exof the closed bank were gathered in plained that where a person or conRailroad avenue throughout the day, cern made a note to meet a bill from there was no demonstration. The some other person or concern, that only indication that something unusual had happened was the presence note is not actually the property of the bank. Consequently, deposits of these groups in the street. With the other banks demonstratcannot be credited on paper of this nature. ing that all demands for deposits would be met on call, no one was The bank had deposits reaching $746,433,31, and loans amounting to anxious to withdraw money. It is impossible at this time to de$824,537.71. There were enough of these loans made on cattle to cause termine when the McKinley County the collapse of the bank, the examinBank will be in a position to begin er The in explained. depreciation paying depositors.

2. October 8, 1923 The Santa Fe New Mexican Santa Fe, NM
Article from The Santa Fe New Mexican, October 8, 1923

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Want to Get Bank Receiver Out at Gallup Gallup, N. M., Oct. 8.—A resolution was adopted at a meeting of the depositors of the defunct McKinley County bank at the Kitchen opera house seeking the removal of Frank B. Maple who was appointed receiver of the bank. Maple's appointment first was received with general approval. The change in sentiment was said to be due to the fact that the receiver appointed H. C. Denny, said to be attorney for the Gallup State bank, as attorney for the receiver. It was said it was feared he would not be in sympathy with a move to reopen the McKinley County bank. A plan to reopen the bank is under discussion. According to this the railroad brotherhoods would take 51 per cent of the stock and the people of Gallup the remaining 49 per cent. It is believed if this is carried out the depositors can be paid 75 per cent on their deposits with the understanding, however, that they do not draw them out in excess of the rate of 10 per cent a month.

3. October 11, 1923 The Santa Fe New Mexican Santa Fe, NM
Article from The Santa Fe New Mexican, October 11, 1923

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FEDERAL COURT NOTES SUITS DISMISSED BY JUDGE NEBLETT Two suits by the federal government to cancel homestead entries, the first against Ora O. Moore, formerly Ora O. Lane, and the second against Mabel J. Keppele were dismissed by order of Judge Colin Neblett of the federal district court on motion of United States District Attorney George R. Craig. The lands involved were re-conveyed to the federal government. BANK RECEIVER MADE DEFENDANT Frank J. Mapel, receiver of the McKinley County bank at Gallup, was named as defendant in the case of The Liberty National bank of Kansas City vs. Joseph Cox, Eliza Cox, T. F. Smalling, Sam Bushman, W. A. Berryhill, The McKinley County bank and L. B. Gregg, as state bank examiner, in an order signed by Judge Neblett on petition of Mapel. ORDERS REMOVAL OF ROBERT PARKS An order for the removal of Robert W. Parks to the district of Southern California was signed by Judge Neblett when Parks waived the right to resist removal. Parks was indicted in Southern California on the charge of embezzlement and arrested in New Mexico. United States Marshal Sec. Romero now will take him to Southern California.

4. October 4, 1924 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, October 4, 1924

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BANK RECEIVER TO PAY 20 PER CENT DIVIDEND As announced last Saturday, Frank B. Mapel, receiver for the McKinley county bank, will pay a 20 per cent dividend this Saturday, October 4. The total amount to be paid will be about $135,000. So much interest is in evidence over this news that Mr. Mapel says it will amount to a "regular Christmas gift day for Gallup and vicinity."

5. October 5, 1924 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, October 5, 1924

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BANK RECEIVER TO PAY 20 PER CENT DIVIDEND As announced last Saturday, Frank B. Mapel, receiver for the McKinley county bank, will pay a 20 per cent dividend this Saturday, October 4. The total amount to be paid will be about $135,000. So much interest is in evidence over this news that Mr. Mapel says it will amount to a "regular Christmas gift day for Gallup and vicinity."

6. August 3, 1927 The Santa Fe New Mexican Santa Fe, NM
Article from The Santa Fe New Mexican, August 3, 1927

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SUMMARY OF HANNETT CHARGES AGAINST JUDGE HOLLOMAN In brief the Hannett charges Holloman as developed in against of particulars are follows in addition to the Gallup telephone case: POLITICAL ACTIVITY That Holloman too active specifically that he was the 1922 Republican state delegate to was candidate for govconvention, before president the ernor Manuel Otero for Governor club, lected and disbursed money in advocacy Otero's candidacy: made speeches the 1926 for Republican state candidates; member state executive committee; political boss of Santa city and county: lobbyist at the legislaand took part in the caucus on ture, senate ratification Hannett pointees during pendency Otero contest. alleged Holloman has "openly boasted' his power political boss. That refused disqualify himself in the McKinley county election cases, certifying that he had not election of the Republican conurged alleged that Holloman's is ties and judicial functions impartial That he told civil service would get him fired if he employe voted for Hannett. told Dr. Luckett the That he officer levy be McKinley but that Dr. M. Washburn would not because he was to close to the ployed Hannetts. BRIBE ALLEGED It is alleged Holloman received $500 in cash and the promise 000 more promise his influence with the Santa Fe city council in the matter the electric light and water That he said his fight with Hannett and Magee was not over until they driven of the state.. That Judge Holloman wrongfully his office San county force the of alleged legal claim for teacher salary one Mary Joseph for political purposes. WATERWORKS CASE alleged Holloman entered into with Denny, Yersin, Arthur and Francis E. Wood through the Gallup for fees, control patronage, and use control of the municipal power plant order destroy interest the Gallup Electric Light and Power Co. STEAM LAUNDRY failed to Laundry proper reports his trust, that the partially deal property and that later the receiver for NOTE SETTLEMENT It alleged that to gain political support court fairs insolvent McKinley County bank, authorized settlement notes aggregating 000 note for $399.15 for $250. McKINLEY COUNTY BANK In the case of the McKinley County bank alleged that the has failed to report the condition of his trust, this with the knowledge and consent of the court. That the court refused petition of the sell the bank assets public That the receivership has been erated loss. LOANED MONEY TO HIS COMPANY That Receiver Mapel, while also paid the Charles company, loaned company much without security evidence of indebtedness, to detriment of the depositors, in the political behalf of That with depositors' money ceiver Mapel bought business Bankrupt Shanklin $26,000 punish Vidal. bidder at the and busicompetitor Vidal was political enemy of Hollo- That the has showed months monthly loss of under Mapel, engaged in business with the funds power. That note for property worth only and note for lower interest when rence worth more than and that Lawrence and other debtors the receivership were told by HolDenny and Mapel that obligations would comprised for political support, which they gave. That had over deposited the Gallup State bank, when closed. without bond or security, the loss of the depositors. GREGORY PAGE. RECEIVER alleged and retain Gregory Page, president of the insolvent Gallup Bank receiver despite motion the attorney general to the conPage being close political and personal friend Holloman alleged Page transferred stock certificates from the bank personal liability on them. and withdrew over $5,000 from the bank the day closed its doors alleged Page paid notes the sum the First National Bank Los Angeles of the depositors' and funds protect himself and assoclates from liability on the guaranty Los Angeles alleged with the approval court the receiver state transferred Dermott and Floyd and Dermott property excess their claims settle claims, cillate McDermott and strengthen the "Holloman political organization" alleged that Page sequestered large accounts money failure of the bank, and

7. August 11, 1927 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, August 11, 1927

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GALLUP BANK RECEIVER EASY ON CREDITORS, HE ADMITS; BICKEL NEVER ASKED TO PAY HIS NOTE Tells of Settlement with When Agreed to Avoid Furniture Business SANTA FE. Aug. B Ma receiver for the McKinley County bank of Gallup. on the wit ness stand late Wednesday after noon in the hearing of former Gov. ernor Hannett efore the state bar commission was asked he ever received financial state showing the net worth of debted to the bank for His indebtedness was settled for cash payment of $2,000 and new of Testimony Saturday showed Mr Lawrence was rated to by R. Dun Mercantile agency after his statements to the agency of net worth of around financial statement made him by Mr Lawrence Jan 1924. was exhibited after Mr. Ma. indefinite to statements He Identified showed worth of about $45,000. stated covered only his store Gallup other not shown. Questioned about his roal land Mr. Mapel said he valued at $2. 000 to $3,000. This land he eati mated 200 or $10 and said all was worth financial statement of Nov was exhibited and fied by Mr. Mapel. He said showed Mr. Lawrence's net worth less than nothing. Mr. Lawrence's letter to the receiver few days later offering his Indebtedness was read. Asked what his explanation was to the reason why he did not seek find out what the real assets were. he replied that the coal land the only other asset he knew Lawrence and that he did not consider It worth paying taxes He said he did not Inquire about Mr. Lawrence owned in DenHe said he did not know then does not know that Mr owned any lots Gal- No Court Testimony He taken court the time of the settle. Mr. Asked he was misled by Mr he replied Asked about the significance of provision in the settlement let. saying Mr Lawrence agreed not engage in the wholesale or re. tall furniture business. he replied had no significance. Asked the receiver did not go Into the hardware business and he contemplated going In the fur. niture business. Mr. Mapel replied Asked why the furniture provi*ion was in the letter. he said not know and that should been there. Mr. Mapel admitted the settlement letter was drafted by H. Lawrence owed when the bank closed. He had reduced the debtedness to the time the settlement The final order settlement was then read. for $2,000 cash and new note Threw Off $7,000 Mr the order meant he threw off 000 of the debt of Mr. Lawrence without any examination Investigation of the worth of Mr Lawrence He admitted knowing of coal land and real estate owned by Mr and not shown in his nancial Loan Questioned about loans Charles lifeld company. Mr. Matestimony was: Q "How much did you have one (In the "What period of time did you that in this collected accumulated Q. "What period of time were five or six months." Q "Did have an account any other bank but the Mer ant's bank "No. don't think Q. made effort to de posit that money any other bank New Mexico "How did you come to loan this money Charles lifeld com pany' Did you loan this Did you ask them they could asked them times If they could use the money. Q. "Then It was merely an ac"Absolutely." what fixed rate of Inter per cent." "At the present time there

8. August 11, 1927 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, August 11, 1927

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TO BANK CUT; BUYS EXPENSIVE CAR Gallup Bank Receiver Tells of Settlement of Druggist's Note: Laundry Plans SANTA FE. Aug. Charles lifeld company was building for the laundry provision poned sale the plant Henderson for statement of Frank ceiver McKinley County bank, the Wednesday hearing of Hannett the bar commission for charges reflecting on integrity of Juage Reed Why this alleged Hannett been fell through and the laundry later Murphy and details loans of the money Charles Ilfeld company. were of the first session hearing Wednesday afternoon lowing the from Mr. Mapel, who addition being receiver for County bank, Charles lifeld company visory capacity testified that Moulten, ficer the company of the Gallup tile company. branch the Continued

9. August 11, 1927 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, August 11, 1927

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RECEIVER'S ASSISTANT IN GALLUP BANK JOB SHORTLY HE PREVENTED DEAL could see Mr. Mapel, rather that more likely that could apMr. Mapel in this matter, proach he asked me to pick out some that they could use. After man thinking the matter over told him perhaps could get some one, that could get Mr. Murphy. think he did Mr. Murnext day handle the phy the result you put some to buy the "How Mr. Lebeck Q. "Have you disposed interest in the still have $1,000 worth in the laundry." Q. Lebeck still in the employ of Mapel when or had left his this employ he had not left his employ. Q. "Did Lebeck indicate to you that he was going to leave Mr. Mapel?" he seemed disturbed this laundry Lebeck Left Receiver Q. that following conversation with Mr. Lebeck your that he either discharged connection with Mr. Mapel terminated he "Now then, did you at time tell Mr. Mapel, during negotiation that his clerk, Mr. Lebeck, through your to half and you the going half?" don't know: don't pre"Now at the time when Mapel sold the laundry to Murphy, far Mapel knew, didn't Lebeck and you were the know purchasers don't think he "Did you dispose of your terest laundry soon after?" believe was the next any. profit did you sold my half in that for retaining $1,000 worth "Who did you sell "James McDermott." "Of Gallup?" "What relation McDermott to "Did Murphy have in cash without calling you and Leto buy this "Franklyn, don't know." At the opening of the night ses. Maple, receiver of the McKinley County Bank, was examined by John W. Simms to show that members of the depositors' committee of the McKinley county bank were debtors to the bank greater amounts than their deposits. H. Vidal, Kirk, Hannett and Dr. Cornell were all shown owe more than they had on deposit. Hannett's notes were for $5,900. Questioned about the purchase the Shanklin Hardware company, Mr. Mapel said he estimated, the paid out the trust, he had paid back all but of the cash to the trust. permitted the sale, trust would have lost Shanklin's indebtedness said he knew of no other way to protect his trust expurchase of the hardThe witness denied he bought punish his He said he took no active part politics. Note On Mr. Mapel Mr. Vidal. memdepositors' committee, paid his indebtedness in full. He admitted that T. Hannett paid his notes within week asked no settleHe was asked If he did not know the sale of assets of the bank had stated the depositors' represented the depositors of the bank. He replied he Mr. Mapel was dismissed witness after being the three different of the nearly six hours in all. the board Mr. for utes before he finally left the stand. between Mr. Mapel and the Ilfeld pany relative the loans was and filed. Sale Order Disappears H. W. Brose, county deputy clerk of McKinley county, next witness. He asked about the court records, especially for the proposed the Gallup Steam laundry. said did not when the order his He said he required no record when out unless of the whole file. Mr. Crampton asked what the examination was. Mr. Keleher explained there rumor in Gallup the laundry had been sold and search for the was made and could not found. Mr. Brose explained that the made misof 20 pages indexing the order, which the reason could not be found. Col. W. Hanson was the next witness. He been the laundry business with Payne. For the last six months has been in the hardware business. He testified several conversations with Mr. Mapel regarding the Gallup laundry. the summer 1924 was first time. He said asked Mapel the laundry was for sale. About week later he offered $2,500 for the laundry. In September he said he offered Mr. Mapel $3,500. He testified Mr. Mapel did not accept it. The last offer was the winter of 1925 and 1926. was $4,500. He his offers were all cash. Said Was Price He said after the refusal. he askedMr. Mapel what he wanted anyway. Mr. Mapel, he said, plied was his price. In the meantime, Mr. Hanson had bought an interest in launHe told of later conversations, during one which he said Mr. Mapel stated two laundries in Gallup could not exist. He said knew of one that could not exist. Later, he said Mr. Mapel once remarked to him he knew of one laundry that could exist as long there was any money in the depositors' fund. Holloman Sent Wire Joe Gargan, local manager of the Western Union Telegraph pany was the next He testified to telegram Judge Reed Holloman from Santa Fe Murphy was Frank will be Gallup Friday.' The was in reference to the sale of the laundry. Ralph E. Palmer, Gallup auto dealer, was called. told conversation between Mr. Mapel and Murphy. He said Murphy asked if the laundry was for sale. Mapel replied that Henderson had already bought They looked through the plant, he said. On he said, Mr. Mapel made no statement about building condition to the sale to Mr. Henderson. Mr. Simms put him through severe in an attempt to impeach his testimony.

10. August 12, 1927 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, August 12, 1927

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DENNY SAYS HE DIDN'T STORES BANKRUPTCY Gallup Attorney Says Settlements with Bank Creditors Were Not Based on Political Consideration GOT $2,192.18 FEE IN SHANKLIN MATTER H. B, Jamison Received $1,000 and Harry Wilson $1,500 in Same Action, Stage Offer on Notes (By Special Leased Wire) SANTA FE. N. Aug. of H. Denny in rebuttal of charges that there were any political demands conthe the McKinley County Bank Kahl of the K M. Drug Company. with was offered afternoon the Hannett day hearing previous the W. Lawrence's land very poor. He testified worth cent Lawrence's Denver his mother's Denny Asked did not Kahl. he would receivership drug said furniture his bright rence settlement was The provision enter the wholeLawrence not retail furniture business He said he thought add something to the value might the agreement. insolvent be Shanklin was not fore he made assignment the bank Mr. Denny He Shanklin's assets exceeded his indebtedness. denied any to force signment. He said Mr. Shankjust tired and threw up got the Denny admitted he received of in the bankruptcy fee action of Shanklin. This. addition to his fee as attorney

11. August 12, 1927 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, August 12, 1927

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1937 DEPOSITORS' WELFARE DISREGARDED The testimony brought out in the Hanwith to the absolute disregard for the depositors' welfare in the receiverships of certain banks, is astounding. Efforts appear to have been directed in behalf of the reduction of fa vored borrowers' obligations and the prolonging of the trust at the expense of the Mapel, receiver of the McKinley County bank, when he states that the vault had was unsafe and he loaned the demoney at low interest rates for safe keeping, instead of declaring a dividend to the needy depositors, shows reason snough why he should be removed forthThere is no safer bank anywhere than the Merchants' bank at Gallup. Albuquerique, Santa Fe and many other cities in the state have safe banks. And, in addition, a receiver as a court officer can secure proper protection for his deposits with a bond. Mapel may say he had a bond on one and lost the money when the bank He did not have the proper kind bond, and he knows it. How long are the people forced to tolerate this sort of Why must they wait until some citizen takes it upon himself to expose these rotten conditions? Can they no longer depend on their public officials to keep an eye on their welfare?