Arizona republican., 1894-05-24
kSPORADICC CASE
The Bank of Tempe
Closes Its Doors.
The Failure Creates No
Surprise
And Is Regarded as of no Spe-
clal Significance.
A Brief Review of Crowding Dis
asters-It Is Said that All Debts
Will Be Fully Discharged.

The Bank of Tempe is no more. The
collapse came yesterday morning and
an assignment was made to D. A.
Abrams for the benefit of the creditors
of the institution.
Little surprise was expressed at the
| news of the failure as its tottering con-
dition has been we'll understood among
| the business men Of the valley since
the litigation involving the Daggs Bros.
began two months ago. As long ago as
| last Saturday checks drawn upon the
| bank were refused by merchants in
| Phoenix.
The assignment was recorded yester-
day unaccompanied by a schedule which
| will be prepared and brought in by this
mornings mail. The exact condition
of the banks affairs IS therefore not
known. The deposits, however. are
much greater than they were generally
supposed to be, amounting to about
| $40, 900.
Gentlemen who are acquainted with
the affairs of the bank and Daggs Bros.
| say that beyond a doubt all indebted
ness will be discharged dollar for dol
| lar.
| Major R. Allyn Lewis, appointed
bank examiner by Territorial Auditor
Boone, went over to Tempe yester-
day morning before the assignee had
| taken charge but was refused admit
tance by Mr.. P. P. Daggs who by the
way is neither all officer OF the bank nor
| presented any authority from the asig-
nee for his action.
Mr.. Abrams went over yesterday
afternoon and the business OF straighten-
| ing out the complications of the con-
Germ was begun.
The elimination OF the disasters OF
| Daggs Bros. has been rapid. About
year ago statement was issued by
! them showing assets amounting to be-
tween $3.50, 900 and 100000. The state
| meut included 10000 sheep and large
amount OF other property including the
paraphernalia of sheep camps and
ranges, real estate, water rights and
cash.
| rne debts OF the brothers at that time
were less than $25 900.
Under the influence of an impending
change in the tariff the value of sheep
| rapidly declined from about So head
at the time the statement was issued to
a present quoted value of 80 cents. As
matter OF fact though at this time
sheep are worth less than nothing.
Daggs Bros. have discovered that there
is absolutely no market for the larger
part OF their assets the care of which
however entails great expense.
4 of \ Il
compelled the brothers to enter upon
an injudicious scheme for the preserya.
ton of their credit and everything was
sacrificed to sustain the bank. A system
of transferring various properties in the
separate ownership of the brothers
AFRO, j., r. E., P. P, G. G. and W. A.
| Daggs was begun and a reaching out in
all directions to increase or strengthen
their credit followed. Their very energy
hastened their downfall. These tran
sactions served rather to attract the
attention of their creditors to their de-
clining affairs and the litigation began
which has ended in the collapse of the
| bank.
The Daggs Bros. succeeded NJ. H.
Linnington in the banking business
| less than two years ago. 1t is said that
no money was paid by them to LINING
ton; at any rate they gave him notes
for $4,000.
Under the snew regime the capital
stock was $4,000. p. P. Daggs was the
first president, W. A. Daggs, vice pres
ident, and W. L. Van Horn cashier.
P. P. Daggs was succeeded in the pres
idency by R. E. Daggs
oil fboco Jnot1onon woro
thorough business men 1t was an unfor-
tunate fact that none of them had a
banking experience. Their methods
lacked something of that conservatism
which insures success. 1t is said that
their policy was liberal to the point Of
looseness but it is possib BILE that this un-
usual banking course under less un-
fortunate financial conditions than have
prevailed might in their case have
served to increase their success.
1 One day last summer during the
panic report was in circulation that
the bank had suspended, but SO far as
is known the rumor was without foun-
dation.
Suit was be gun by Linnington about
two months ago on the notes above
mentioned and attachments followed.
These claims having been secured by
: judgments the brothers relied upon an
extension for one year.
} The precipitating cause Of the failure
!, was the filing OF several vendors liens
last Friday night by Messrs. Fitch &
Campbell, representing several creditors
of the Daggs Bros. They had purchased
considerable real estate and large
, number of water rights at time when
| their financial integrity was unques-
toned. Payment was made in IN
: secured notes, the purchasers saying
that as they wished to make sale OF
the property they preferred that it
| should be unincumbered. Lately, 70
secure loan of $4,000 from Mr.. P. ]