The Morning standard. [volume] (Ogden, Utah) 1910-191?, 1910-09-04
BANK AT HALEY
FAILS TO OPEN

The little city of HALEY. Idaho, Is
thoroughly aroused over the sudden
collapse OF the Idaho State bank of
HALEY. The bank closed its doors
Wednesday and Is now in the hands
of State Bank Examiner G. w. Cruise
of Boise. The affairs OF the bank are
in tangled condition. and it Will
probably be a long time before they
are Strengthened out.
Practically all of the collateral held
by the bank as security for loans
is said to be worthless. so that the
assets of The bank amount 20 little or
nothing The total liabilities, consist
ing largely Of money owing to dcpos'
itors, amount TO almost 100000
From present indications, the loss
To the deposItors viii he practically
total. The failure of the bank VIII
undoubtedly cause n depression In
the prosperous community from
which it will take some time to re-
cover. The effects of the failure,
however. will not be far-reaching, as
there are no other banks or business
houses involved The Camas Prairie
bank of Soldier was owned by the
Idaho State bank, but Just before the
failure 1t was taken over by the
HALEY National bank, and is in good
condition.
III.Advlsed Loans Responsible
The failure of the bank Is said TO
have been largely due to ill-advi5ed
loans and investments. Practically
all of the securities were hypothecat-
ed and It's collateral is said TO be
worthless Leo Cramer, vice prcsi-
dent and general manager of the
bank. was the principal stockholder.
The investments of the bank con-
sisted largely of loans to Mt Cramer
and his brother. who invested the
money in projects that at best gave
slow returns.
Though the bank has been shaky
for some time. its condition was not
generally known Word reached Salt
Lake on Sunday night that the bank
was In perllous condition. and j. B.
Cosgriff. vice president OF the Con
tInental National bank of Salt Lake,
and a stockholder in the HALEY Ma
tional, left Salt Lake for HALEY, The
HALEY National bank went 10 the as
slstance of the distressed bank and
helped 1t TO keep open on Monday
Advantage was taken of the fact that
Tuesday was primary election day
In Idaho. and the banks were closed
on that day After the exact condi-
ton OF the bank was learned on Tues
day the state bank examiner was
sent for The bank was opened on
Wednesday and business carried on
as usual. The depositors We're kept
in the dark as to the banks condi-
tlon, and there was no run upon II.
csmas Prairie Bank Saved
The result OF the investigation.
however showed that there was no
| possible way to save the bank, and
its affairs were turned over TO the
state bank examiner The bank was
not reopened on Thursday. In the
meantime the state bank examiner
planned to save the Cnmas Prairie
bank at Soldier. At the request OF
the state bank examiner, ], B. Cos
griff purchased the stock OF that
bank, the control of which had been
held by the Idaho State bank, and
the reserve OF $4,000 was trans
ferred from the Idaho State to the
HALEY National
AT the time the state bank exam
| iuel lOOh Nldl 80 VI TIC luduO ObdbS
bank the deposits were $4,000 in
open accounts; Sal 1000 in savings ac'
counts and S155,OO0 in time accounts
An additional liability OF about $780,
900 was occasloned by the hypotheca
ton of the securities. The total as
sets consisted of s76 In the vaults
and a large amount of collateral, the
value OF which Is problcmatical. but
believed 10 be very slight.
The last annual statement of tho
bank gives Its capital stock as SIS.
600, surplus $4,000. deposits $434.0OC
and loans S343.00O Since that state
ment the deposits have shrunk ap
proximately 100000. j. J. PlummeI
was the president of the Ill.fatet
bank: Leo Cramer, vice president anG
manager. F. NJ. Coleman, cashier
and w d. Cults. assistant cashier