Security National Bank in the Early 1930's
Richard Muffley
16 October 2005
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Fred Muffley was president of the Security National Bank in the late 1920's
until it was forced to close its doors the first time on 23 October
1931. The following articles were recorded from the Camas County Courier
in the early 1930's. There may have been others, but they were not found
in a scan of the microfilm.
Richard Muffley |
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29 October 1931 Depositors Take Steps to Re-open bank Start Drive to Raise Necessary Funds to Open Bank Will Re-open Only When Funds Enough Have Been Raised to Put It on Firm Financial Basis The depositors of the Security National Bank, which closed its doors Saturday morning, met at the court house Tuesday afternoon at the solicitation of the bank examiner and the managers of the bank to devise some means by which the bank could be opened for business again. The meeting was called to order by Mr. Wright, the bank examiner from Salt Lake City, and he discussed at some length the necessity of having a bank in this community. As this is the only bank in Camas County, he thought it was a vital question to the people of this county that the bank be re-opened. He called for expressions from those present and it was the unanimous opinion that the bank should be re-opened if some means could be devised whereby such a thing could be done and put on an absolutely firm financial basis. Mr. Wright outlined a plan which he believed would work and outlined it as follows: The present stockholders are to turn over as much stock as would be necessary, when sold, to liquidate any deficit that might exist after the bank has been examined and the amount definitely known. The present stockholders are to receive no money for this stock but it is to be sold and placed in the bank to bolster up the cash and to cover any deficit that might exist. This would bring new stockholders into existence, the bank would be reorganized, new directors elected and the bank would start out on a solid financial basis. He stated that all questionable securities would be eliminated and he would not pronounce it solvent until he was sure it was on a solid financial basis and such that no one need be afraid to put their money in it. This plan seemed to meet with the approval of the depositors present and the matter of selling the stock was taken up and discussed at some length. Mr. Wright withdrew from the meeting and Mr. A.W. Tingwall was chosen as chairman to take charge of the meeting whose purpose was to devise ways and means of raising the money necessary to start the bank again. Mr. C.C. Haynie, present cashier of the bank stated that he thought that when the examiner got through, he would find the bank solvent, in which event the deficit would not be large. The matter of selling the stock was taken up and it was decided to make an effort to sell the stock. In a short time, $7,000 worth had been taken by those in the meeting. A committee was to raise what balance might be needed and volunteers to serve on the committee were asked for. Ernest McHan was the first to respond with V.O. Neiswander a close second. J.B. Stokes, L. Miller and N.G. Carman also agreed to serve on the committee. The task before them now is to raise whatever amount necessary to liquidate any deficit that might exist. It was the unanimous opinion of those present that if the bank was not re-opened and was allowed to go into the hands of a receiver, that much more would be lost than it would take to open it. If it were allowed to go into the hands of a receiver, it would take from one to two years to liquidate it and perhaps not much more than 50% would finally be realized. |
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29 October 1932 full page advertisement page 2
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5 November 1931 Committee Reports Sale of Sufficient Bank Stock Community Anxiously Awaits Official Word Regarding Re-Opening of Bank -- Committee Works Tirelessly The Committee which was appointed to solicit the county for sale of bank stock, the proceeds of which are to be used to make up the deficit in the defunct bank, report that they have sold sufficient stock to insure the bank opening if other preliminaries can be worked out satisfactorily. The bank examiner left for Salt Lake City Tuesday and will probably return today. If everything works out as has been planned, the stockholders will meet and organize and elect directors, who in turn will appoint a management and then the bank will be ready to open its doors for business. It is estimated that this may be about next Monday, November 9th. |
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5 November 1931 Will the Bank Open? by Lucien Lemon (editorial) Everybody seems to be marking time and waiting to see just what is going to happen and whether the bank will open for business again or not. A lot of hard work has been done and those who took it upon their shoulders to raise the necessary funds and those who took stock certainly deserve a lot of credit for the work done and the effort put forth. The committee worked far into the night and even got people out of bed to have them sign for stock. If the bank fails to open it will not be the fault of the committee, for they have surely done their part and deserve the thanks of the entire community. The bank examiner laid down certain rules and specifications that had to be met, with no side-stepping, and they met them. Now what will happen? |
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26 November 1931 Bank to Open for Business Next Week Hard Work and Determination Responsible for the Bank's Re-Opening Will be a Great Achievement for Camas Prairie People Word was received sometime Saturday from the Comptroller to proceed with the opening of the bank along the plans formulated by the depositors and the stockholders. Much communicating was necessary and details to be worked out but at last everything has been complied with and permission has been received to proceed. Mr. Wright the bank examiner has worked faithfully to this end as he felt that the bank was in such a good condition that it would be a shame to close it permanently he has spared no pains to have the institution opened again and everything is favorable now for that purpose. So far as is known the bank will open with no strings attached to it. It will be strong enough to stand any withdrawals which might occur. There are some 90 stockholders who met at the Court house Wednesday. New directors were elected and as soon as they can organize they will select a cashier and the bank will be ready to go. That this is a great achievement for the people of Camas County goes without saying. In the face of conditions and working against the odds and unseen forces they have gone out and accomplished what few communities have been able to do. Credit is due the committee who worked so hard and faithfully to sell the stock. Credit is due those who bought the stock. It showed their unselfishness and their interest in the entire community. These are the kind of men who battle the deep snows and overcome the elements and make Camas County a county to be proud of. Men of few words but strong in action. |
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3 December 1931 Time Near When Bank Will Open All Details Complied With Except Cleaning Snow Off Sidewalks Stockholders Meet and Elect New Directors Slowly but surely with determination that assures success the bank officials are still at work getting things in shape for the opening of the Security National Bank. Last Saturday the new stockholders met and elected the directors who are as follows: D.L. Perkins, Frank Tucker, John Vodermeyer, Vance McHan, and A.L. Miller. A little more red tape is to be complied with after which the directors will meet and elect a cashier. Then perhaps some more red tape and then the bank will be ready to begin business. When every little detail has been complied with then some more details come up and they are made satisfactory then somebody back in Washington and Salt Lake or San Francisco thinks of something else and then that must be explained at last it seems that they hade all been satisfied and it will not be long now until business will be resumed. |
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10 December 1931 Bank Opened For Business Today Reopening Speaks Well for Bank Examiner and the People's Cooperation Only One in Several Bank Failures Are Able to Reopen The Security National Bank opened its doors today for business after being closed sine the 23rd day of October. New directors have been elected. D.L. Perkins, Frank Tucker, John Vandemeyer, Vance McHan, and A.L. Miller. D.L. Perkins was elected President and Vance McHan, Vice President. Carl Haynie was appointed by the directors as Cashier. In opening the bank the people of Camas County have achieved something that few communities have been able to do. According to the Literary Digest out of a large number of Bank failures only 10 were reopened. The opening of this bank certainly speaks well for the Bank examiner, Mr. Wright, and the cooperation given him by the people of the county. Certainly people of this community feel very grateful to Mr. E.M. Wright. He has worked faithfully and patiently and what he has accomplished for Camas County will be remembered for a long time. Mr. Wright said that there was no excuse for Camas County not having a bank and if the people get behind it and give it the proper support that there will be no excuse for it ever closing again. The new Board have made a very thorough investigation of the assets of the bank and have found them to be very sound. It is stated that the bank will be handled in a much more conservative manner than it has been handled before. Some of the regulations will be that when loans are made they shall be referred to the board of directors for approval. This it is claimed will relieve the Cashier of much responsibility. The overhead of the bank will be kept down to the lowest possible limit consistent with good banking. |
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10 March 1932 Bank Closed Doors Last Saturday Bank Claims to be Solvent but Closes to Protect Depositors About the 20th of last October the bank suspended business and a concerted effort was made to reopen it which was done and the bank began operating again about the tenth day of December last. Better than a month lapsed between the time that the bank was closed until it resumed business again under a new directorate. The stock was sold to new stockholders, new directors were elected and it was thought at that time that the bank was on a sound financial basis. There is no question but that it was in a sound financial condition as the bank examiner and the representative of the reserve bank in Salt Lake so pronounced it. But it seems from what could be gathered that the reserve bank withheld the support that it was really entitled to and as a consequence it was forced to suspend operations. It is stated that the bank will be able to liquidate all of its obligations. If t is handled properly there will be enough collateral to pay all of the stockholders all the money back that they put into it besides paying back to the depositors all the money deposited in the bank. |
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10 March 1932 It's Sure Funny by Lucien Lemon (editorial) Well the bank closed again and not a few people are wondering why it closed its doors again. It is stated by those that claim to know that the institution is solvent and will pay all of its obligations – if this is true, why close? If the securities which the bank had were good only a short time ago when it opened for business under the direction and sanction of the Federal Reserve bank and the Federal Examiner, what has happened in the meantime to cause these securities to depreciate in so short a time, that the reserve bank refused to rediscount them? Then we have the recently created finance corporation which we understand was created to take care of just such emergencies as this and it seems that no help could be obtained from that source unless the bank gave up its securities on a basis of two to one and a note on demand which no institution could know and expect to exist. If the recently created finance corporation will not help a bank that is solvent over a few rough places, what is it good for, if the institution must go broke before it can receive assistance. We don't understand all that we know about the proposition but we are making a guess that these is a colored boy hiding in the wood pile someplace. |
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24 March 1932 Bank Receiver Arrives Leo. F. Bracken who ahs been appointed as receiver for the bank came in on Tuesday's train and will take over management of the bank. It is understood that Mr. Bracken's home is in Boise. |
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4 May 1933 Stockholders of Defunct Bank Meet Reasons for Assessment Are Explained by A.W. Tingwall, Chairman Stockholders of the old Security National Bank now in the hands of the receiver, met in the courthouse Tuesday to discuss the proposition of meeting the assessment which has been levied against the stockholders of that institution. A.W. Tingwall was made chairman of the meeting and went into detail explaining the nature of the assessment and just what it meant to those who were stockholders of the colsde [collapsed] bank. It seems that some of the stockholders did not exactly understand it and felt better satisfied. It seems that the bank has sufficient securities on hand when liquidated to settle with al of the depositors and will be ale with what is left over to re-imburse the stockholders, that is if all the securities can be liquidated. That now seems all right. |
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6 July 1933 Bank to Pay Dividends Receiver of Fairfield Bank, Leo F. Bracken, announces that a 15 per cent dividend will be paid and checks are now ready for distribution. This makes the second dividend that will have been paid since the bank went into the hands of the receiver. About a month ago the stockholders of the bank held a meeting for the purpose of which was to organize a company, which was to have as its business the liquidating of the bank's assets. Nothing further has been made public regarding the progress of the company. I was understood at the time that the R.F.C. had agreed to finance the company. |
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24 August 1933 Bank Pays Another Dividend; Totals 47% The Fairfield Bank will pay another dividend of 14 per cent, Mr. Bracken the receiver announced. This makes the third dividend that the bank has paid since it went into the hands of the receiver. The total amount paid being 47 per cent. Mr. Bracken announced that the checks were all made out and are waiting to be delivered. |
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6 June 1935 Depositors to Get Remaining Payment Depositors of the old Security National bank of Fairfield will receive their final ten per cent making a total of one hundred per cent on each dollar in the keeping of the bank when it was closed three years ago, within the next 30 to 60 days, it has been authoritatively ascertained. Not only will the final installment be paid, but interest of approximately six per cent on all deposits will be forthcoming. A certain measure of good news to shareholders is the information that the bank also expects to refund the assessed amounts made following the closing of the bank, possibly this fall or winter. Those in authority say it is the first time in the banking history of the state that a bank which has passed into receivership has paid depositors in full with interest. |
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12 December 1935 Bank Stockholders Receive a Dividend All Collections Hereafter To Be Turned Over To The Shareholders Stockholders in the old Security National Bank of Fairfield received a total of $13,000 Wednesday, or the total value of their assessments on shares owned. G.D. Thompson, receiver, who had made arrangements for the delivery of checks, stated in answer to the question as to whether stockholders might expect to receive anything on shares of stock, replied that he though it probable that at least part of the money would be paid, if not all. All collections made in the future from the bank's debtors, he said, would be turned over to the stockholders. Collections have been better than expected due to good crops, accounting for the bank's ability to pay at this date. Depositors were paid 100 per cent on the dollar last August, an unusual occurrence for a bank in receivership. |
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Muffley Page Courier - 29 October 1931 |