Exchange Bank (Carrizozo, NM)

Episode Information

Episode UID
95006671486
Episode Type
Suspension β†’ Closure
Bank Type
state
Bank ID
9500667 routing
Routing Number
95-0066
Start Date
October 15, 1923
Location
Carrizozo, New Mexico (33.642, -105.877)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5d143ebaebe6abde

Response Measures

None

Description

Closure attributed largely to bad loans on cattle; receivers appointed soon after.

Events (2)

1. October 15, 1923 Receivership
Newspaper Excerpt
Gregg and Brownfield, receivers of the Exchange bank of Carrizozo, vs. the State Finance board (Dec. 28, 1923 article references receivers).
Source
newspapers
2. October 15, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy losses from loans on cattle prompted the bank to close.
Newspaper Excerpt
The Exchange Bank at Carrizozo closed Monday
Source
newspapers

Newspaper Articles (7)

Article from The Santa Fe New Mexican, October 11, 1923

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OFFICIAL NOTES CORPORATION CHANGES NAME An amendment to the articles of incorporation of the Brooks Mercantile Co., of Raton, changing the name to the Butler Mercantile Co., has been filed at the corporation commission's offices. FUEL COMPANY INCORPORATED The Southwestern Fuel company, Albuquerque, has filed incorporation papers at the state corporation commission's offices. Its authorized capital stock is divided into 4,000 shares of preferred stock of the par value of $100 each and 1,500,000 shares of common stock of no par value. It begins business with $2,000 subscribed. The incorporators are Sidney M. Weill, G. L. Rogers and Maurice Klein, all of Albuquerque. SAUNDERS TO GO TO CARRIZOZO W. P. Saunders, deputy state bank examiner, will leave for Carrizozo in a few days to take charge of the Exchange bank, which recently closed there, and get its affairs in shape to apply for the appointment of a receiver, according to State Bank Examiner L. B. Gregg. Saunders will go to Capitan also, where the First State bank has suspended. PERMITS ISSUED TO SELL STOCK Permits to sell stock have been issued by the state corporation commission, on recommendation of Joseph Grant, head of the blue sky bureau, to the Albuquerque Oil & Gas company, Albuquerque, and the Bryan Harvester Co., Peru, Ind. The former wishes to sell $10,000 stock and the latter $500,000.


Article from Carlsbad Current-Argus, October 19, 1923

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CARRIZOZO AND CAPITAN BANKS CLOSED MONDAY President George L. Ulrich of Exchange Bank Has Made Heroic Efforts for Past Year to Avert Disaster. The Exchange Bank at Carrizozo closed Monday and Frank J. Sager, cashier so informed the state bank examiner. George L. Ulrich, a member of the state tax commission, was president of the bank. It is well known in Santa Fe that Mr. Ulrich has been playing against odds for several months in his heroic efforts to save his bank. The bank's capital was $50,000 and surplus $65,000 according to its last published report dated September 14. At that time the deposits were: time, $86,000 and demand $237,240. Loans and discounts were $389,608.69. The report showed $10,739.39 undivided profits. The cause of the closing was mostly because of loans on cattle. The state's deposit in the Exchange bank was $72,727 according to State Treasurer Warren Graham. Depository bonds are on file in his office from this bank are $10,000 surety, $56,800 United States and $22,500 personal. Following closely on the heels of the Exchange Bank at Carrizozo, the First State bank, Capitan, suspended. The Capitan bank was affiliated with the Carrizozo bank. George L. Ulrich who was president of the latter was a member of the board of directors of the Capitan bank alone with Frank J. Sager, who was cashier of the Exchange bank. The officers of the Capitan bank were George A. Titsworth, president, and H. C. Patterson, cashier. The Capitan bank's capital was $50,000. It had a surplus of $6000 and undivided profits of $5508. According to the last published report of its condition its loans and discounts totalled $105,732 and deposits time, $34,203, demand $49,274.


Article from Carlsbad Current-Argus, October 19, 1923

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Following closely on the heels of the Exchange Bank at Carrizozo, the First State bank, Capitan, suspended.


Article from El Paso Times, December 29, 1923

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Judgment Deferred in Bank Receivers' Suit Against State SANTA FE, N. M., Dec. 28.β€”District Judge Holloman has taken under advisement the case of Gregg and Brownfield, receivers of the Exchange bank of Carrizozo, vs. the State Finance board, following argument in the case by Judge E. R. Wright for the plaintiffs and Attorney General Helmick for the board. The court said he wished to consider the case for a day or two, on account of its importance to the public, and that, regardless of his decision, it would come up for a later final adjudication in the supreme court. The chief points involved are the effect of the provisions of the public moneys act, limiting deposits in depository banks to 90 per cent of the penalty of the depository bonds, or in case of deposit of securities to 90 per cent of the par value of securities; and also construing the paragraph of the act which provides for pro-rating any loss where public deposits are secured in part by depositary bonds and in part by deposit of securities.


Article from The Santa Fe New Mexican, May 29, 1924

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JAP PROTEST HAS REACHED WASHINGTON Will Take Some Time to Decode Before the State Department Gets It. Washington, May 29.β€”The Japanese protest against the new immigration law reached the Japanese embassy here today by cable. Because of its great length, some time will be required to decode and study it before it is formally presented to the state department. Meantime Ambassador Hanihara will make no appointment to see Secretary Hughes for the purpose of presenting his government's views. Embassy officials appeared doubtful that the communication could be put into shape for presentation today. They decline to discuss the contents of the note in any way. It was described by them as "very long." Mr. Hughes conferred at length with President Coolidge, but it was indicated that no authoritative comment on the Japanese attitude would be forthcoming until the government is ready to make its reply to Tokio. TO LOOK INTO FALL'S ACCOUNT IN CLOSED BANK AT CARRIZOZO Judge Phillips Issued Order for Subpoena for Exchange Bank Receiver. DEPOSITION WANTED IN TEAPOT DOME CASE The clerk of the federal court today was ordered by Judge O. L. Phillips, on motion of United States District Attorney George R. Craig, to issue a subpoena duces tecum for A. D. Brownfield, receiver of the Exchange bank of Carrizozo, to appear at his office on June 17 to testify in the case of the United States of America against the Mammoth Oil Co., et al. This is the case for the cancellation of the Teapot Dome lease now pending in the federal court in Wyoming. Pursuant to Judge Phillips' order the subpoena will require Mr. Brownfield, the receiver, to bring with him the bank's books showing the account of Albert B. Fall, former secretary of the interior, under whom the lease was granted, from April, 1921, to the date of the receivership of the bank; all deposit checks and any unclaimed paid checks relating to Fall's account; letters and papers touching his account as a depositor in the Exchange bank; and all books, records, papers touching or having to do with any account of Mrs. A. B. Fall, J. T. Johnson, C. C. Chase, John D. Everhart and the Tres Ritos Cattle & Land Co. The United States district attorney also filed a praecipe for a subpoena for R. E. Lemon of Carrizozo to appear before a notary public at the receiver's office on the same date to testify in the same suit. FRANKS CASE SUSPECT TRIES TO TAKE LIFE Louisville, Ky., May 29.β€”C. F. Heath, a Chicago druggist, was found in an unconscious condition at a rooming house here today and taken to a hospital, where he is in a critical condition. Police announced the man was suspected of being implicated in the kidnapping and slaying of Robert Franks in Chicago, basing the statement on information from the hospital that


Article from Evening Star, October 28, 1927

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# EVERHART REFUSAL TO TESTIFY # UPHELD BY JUSTICE SIDDONS (Continued from First Page.) Roberts, bearing on financial rela- tionships between Fall and Sinclair and the Tres Ritos Cattle & Land Co. The witness balked on one ques- tion but answered after the court directed him to do so. The five questions which Everhart refused to answer on the ground of self-incrimination were: "Do you know of any loan to the Tres Ritos Cattle Co. made by Sin- clair in 1922?" "Do you know of any loan to Fall by Sinclair in 1922?" "Did you pay any bills for freight on cattle while in Sinclair's office in New York in 1922?" "Do you know of any transaction since February 1, 1922, between the Tres Ritos Cattle Co. and Sinclaire?" "For whom were you trustee of the 33 shares mentioned in this sheet?" This latter question dealt with a stock certificate of the land and cattle company upon which were written in Fall's handwriting "certificate of col- lateral, M. D. Thatcher, Pueblo Colo." Refusals Sustained Again. A Government witness yesterday, who is an official of the Thatcher estate, testified the estate held some stock of the Tres Ritos Co. as col- lateral for an advanced loan. When Roberts sought to have the witness identify the handwriting he declined to answer, but Justice Siddons ruled that he should answer it. Whereupon he said, "Secretary Fall's, I think." Justice Siddons upheld the conten- tion of the witness that he should not answer the other five questions and he was finally excused. It cost the Government $253.40 to have Everhart refuse to answer ques- tions which the prosecutors deemed vital to their case. The witness col- lected that amount from United States Marshal Edgar C. Snyder after the left the stand. He has been in at- tendance on the court for 14 days at $2 per day, making a $28 witness fee. He was paid $3 a day for his subsist- ence for 16 days, including Saturday and Sunday when court was not in ses- sion, making another $48, and his mile- age fee amounted to $177.40, totaling $253.40. Everhart left this afternoon for Pueblo, Colo., his residence. Following Everhart's testimony Roberts produced numerous banking officials and employes and delved into the distribution of the $90,000 in Lib- erty bonds which turned up in Pue- blo, Colo., in May, 1922, in the hands of Everhart, according to evidence submitted yesterday. From the wit- nesses he obtained banking records referring to deposits of Liberty bonds and coupons, but when the noon recess was reached he had not connected these up coherently for the jury. From the testimony and document- ary evidence produced by the wit- nesses, it was shown that on Novem- ber 22, 1922, Liberty bonds in the amount of $15,150 were deposited in the First National Bank of Texas to the credit of Fall, and that on October 21 of the same year $5,000 in Liberty bonds were deposited to the defend- ant's account. Witnesses from this bank-J. E. Benton, vice president and cashier, and I. Gonzales, receiv- ing teller-testified that the numbers were recorded. Fall personally did not make the deposit, they said. On March 30, 1923, Liberty bonds in the amount of $50,000 were deposited in the Exchange Bank of Carrizozo, N. Mex., to the account of Fall. In addition, coupons valued at $875 were deposited. Proof of this action was given by A. D. Brownfield of El Paso, receiver for the bank at that time; R. E. Lemon of Carrizozo, then as- sistant cashier, and B. S. Thurmond, an employe, now living in Hatch, N. Mex. Testimony that 90 coupons of the first Liberty loan 3Β½ per cent were forwarded to the Federal Reserve Branch Bank, in Denver, in October, 1922, from the First National Bank of Pueblo, where $90,000 were deposited by Everhart in May, 1922, according to evidence yesterday, was given by B. A. Carlisle, assistant cashier of the bank, and Mrs. H. J. Smith of Pueblo, then a clerk in that institution. J. E. Olson, managing director of the Den- ver Reserve Branch Bank, gave testi- mony and documentary evidence that the coupons were received. Roberts next produced a receipt de- livered by Olson for $300,000 in Liberty bonds purchased from brokers for the Continental Co. by the Dominion Bank. This documentary evidence was pro- duced by Hector G. Henderson of Mon- treal, an employe of the Dominion Bank of Montreal, in whose New York agency the Continental Co. maintained an account. Various items entered into the ledger on April 13, 1922, showed pur- chases made for the Continental Co. of $300,000 of first United States Lib- erty bonds. The first entry showed purchase of $100,000 in bonds from Solomon Brothers, the second entry $100,000 worth from Walter Brothers and two additional entries of $50,000 each from Rhoades & Co. Henderson testified that he had made a note of the numerical numbers of each bond in the regular form and locked up in safe. "To whom were they delivered?" asked Roberts. "They were delivered to Olson on May 8," was the reply. "Did you get a receipt?" Produces Receipt for Bonds. Henderson produced a receipt from the Dominion Bank's agency in New York signed by Olson. "Where was the delivery made " Roberts asked. "To the agents in New York." "Olson carried the bonds away," Henderson testified. "How were they wrapped?" "They were wrapped in brown pa- per, in a bundle," Henderson replied. At this point the coart interrupted examination of the witness, the hour of recess having arrived. Just before Roberts had hooked up the delivery of the bonds to Olson sev- eral other bank employes were put on the stand to identify Liberty bonds deposited in their banks. These witnesses included Mrs. Martha Anderson and Marguerite Trada of the Denver Federal Reserve Branch Bank. Preparing the way to producing evidence of the bonds delivered to Olson, Roberts put on the stand Rob- ert Ray of New York, employe of the New York agency of the Dominion Bank of Canada. "Did the Continental Trading Co. have an account with you?" Roberts asked. "It did," Ray replied. Ledger sheets of the account were produced to show Liberty bond secu-


Article from New Britain Herald, April 11, 1928

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U e MOVING RAPIDLY (Continued From First Page) trial. His attorneys told the court the when their motion to dismiss first contempt proceedings was de nied. that the Denver Oil man would not need the second subpoena. Blackmen was wanted to tell of the "ontinental Trading company liberty sour of whose profits in bonds reached Fall. Waldi Law III moving against Blackmer. the government proceeded under a law passed at the instance of Senator Walsh. of Montana. the senate Teanot prosecutor. making it possible witto so deal with reenleitrant mosses. When M. T. Everhart. son-in-law of Fall. resumed the witness stand today Daniel Thew. counsel for Sinclair. said he had no mor questions to ask. The government followed suit and Everhart was excused. Everhart yesterday told of having received $233,000 in liberty bonds to and $35,000 in cash from Sinclair be delivered to Fall or his ranch company. The bonds he said were for one third of the ranch and the in d cash for making improvements the property The next witness. J. E. Benton. n rice-president of the First National bank at El Paso. Texas. produced le various slips for deposits that Fall o made at that bank. The contents of " these slips were not divulged as In government counsel had them o marked for identification. show Bank Record : Benton also produced bank rec. of orde of various liberty bond pur19 chases. He was not cross examined of by the defense d The El Paso banker was followed - in Igamacio Gonzale, of the same ty bank. who testified that the deposits " previously referred to had been of made in liberty bends. one group $15,050. and another of $5,500. Benton also produced bank records of various liberty bond purchases. He was not cross-examined E by the defense. The El Paso banker was followed by Iganacio Gonzalez. of the same d bank. who testified that the deposits been previously referred to had of made in liberty bonds. one group $15,050. and another of $5,500. Identifies Slips ss A. D. Brownfield, receiver for the n. Exchange bank of Carrizozo. New siMexico. then identified slips show. that ing liberty bond deposits in 01 s- bank. One of these was for $50.re it. 000. L.T. Rule. assistant cashier of the First National bank of Pueblo. Col. n orado. was recalled. and said $20.or 000 in liberty bonds was received from Fall on October 23. 1922. and olproceeds were credited to the sa account the of the Tres Ritos Cattle and en Land Co., the Fall ranch. The derefense did not cross-examine Rule or Everhart had testified to the same transaction yesterday ry dOwen J. Roberts. special govern ment prosecutor. then offered in evi. dence ledger sheets from the First National bank at Pueblo showing accounts of Everhart. Faii. the slips Tres Ritos company. and deposit rs hn showing the receipt of liberty bonds ed from Fall and liberty bond deposits ad in the Exchange bank of Carrizozo nd and the First National bank at El ere Paso. Six witnesses passed over the to witness stand in less than 30 minux, utes. On defense objection the bank ennot tries were limited to dates named in arthe indictment. Thus the ledger insheets from December 31. 1921 and deian February 9. 1923. were all that were permitted to reach the jury. Roberts announced that the 50 bilernment might later go into the ac counts before and after the dates ent named in the indictments The were de pasit tickets and ledger sheets exhibited to the jury. This was slow work and the pro ce ceedings dragged alous as the jur examined them with interest. erObjects to Letter. In a the A.D. Brownfield receiver for ha th of Corrizozo Exchange bank. who bon. testified assto Fall's account. wa o the recalled to identify some entries are the ledger sheets which the defens rain wished explained. The bank faile October 1923. Wright. in hi opening in statement. said the reaso be Fall wanted liberty bonds was ony cause of bank failures in the south ohisucwest. Roberts offered in evidence a 10 oup Fall wrote to Edward L. Dohen o rom July ter 8. 1921. George P. Hoover. th ters Sinclair's counsel. objected to le letter on the grounds/that any talk ter by Fall could have no bearing T i charge against Sinclair. of dgecourt ordered it marked for identif th cation reserving his ruling on of objection. A letter Fall wrote July 23. 19 to Secretary Denby of the navy th ree sterto Roberts offered met the same Fa fa as did a letter Denby wrote fro July 22. 1921. and a letter t Denby to Fall on October 25. LE same year. aged Show Telegrams. t ruck There then were introduced hony bout telegrams exchanged in Decemb , 1921 between C. R. Safford. of road the interior department. and Fall rel Sincla tive to the trip planned by Serand his attorney. J. W. Zevely. t be Three Rivers. New Mexico, for first conference with Fall. and the Another travel voucher was D d he sented showing that Fall left Was No February 1. 1922 for ington returned to Washingt