The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-09-03
Idaho State Bank of That Place
Suddenly COllapses and
Closes Doors.
COLLATERAL SAID TO BE
PRACTICALLY WORTHLESS
Believed That DepositOrs Will
Lose Virtually All of
Their Money.

The little city of Haley, Idaho, is
thoroughly aroused over the sudden col
lapse of the Idaho State bank Of HALEY
Tho bank closed its doors Wednes'
day and is now in the hands OF State
Bank Examiner G, " Cruise Of Boise
The affairs of the bank are in tangled
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 to little or nothing
The total liabilities, consisting largely
of money owing to depositors, amount
to almost 100000.
From present indications, the loss to
| the depositors will be practically total.
The failure Of the bank will undoubted-
community from which it will take
some time to recover. The effects of
the failure. however, will not be far
| reaching as there are no other banks
or bushes houses involved. The Camas
Prairie bank Of Soldier was owned by
the Idaho State bank. but Just before
the failure it was taken over by the
HALEY National bank, and is in good
condition.
nl-Advised Loans Responsible.
The failure of the bank is said to
have been largely duo to illadvised
loans and investments, Practically all
of the securities were hypothocated and
its collateral is said to be worthless
Leo Cramer, vice president and general
manager of the bank. was the principal
stakeholder, The investments of the
bank consisted largely of loans to Mr..
Cramer and his brother, who invested
the money in projects that at best gave
slow returns.
Though the bank has been shnky for
some time, its condition was not gen
orally known. Word reached Salt Lake
on Sunday night that the bank was in
perilous condition, and J. B. Cosgriff,
vice president Of tho Continental Ma
holder in the Haley National, left Salt
Lake for Haley. The HALEY National
went to the assistance Of the distressed
bank and helped it 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-
tion Of the bank was learned on Tues
day the state bank examiner was sent
Jols ne DdHh WAS Obtutu OH w CUUCS-
day and business carried on as usual.
The dcpositors were kept In the dark
as to the banks condition, and there
was no run upon it.
Camas Prairie Bank Saved.
The result of the investigation, how
ever. showed that there. was no pos.
sible way to save the bank, and it's
affairs were turned over to the state
bank examiner. The bank was not re-
opened on Thursday, In the meantime
the state bank examiner planned to
save the Camas Prairie bank at Sol
der. At the request of the state bank
examiner, ]. B. Cosgriff purchased the
stock of that bank, the control of
which had been held by the Idaho
State bank, and the reserve of $43 900
was transferred from the Idaho State
to the HALEY National.
At the time the state bank examiner
took charge of the Idaho State bank
the deposits were $4,000 in open ac-
counts; S41 900 in savings accounts, and
$155,000 i'll time accounts. An addi
tional liability of about $200,000 was
occasioned by the hypothecation of the
securities. The total assets consisted
of $40 in the vaults, and large amount
problematical, but believed to be very
slight.
The last annual statement of the
bank gives it's capital stock as S75 900
surplus $4,000, deposits $43s 900, and
loans $343,000. Since that etaterent
the deposits have shrunk Approximately
100000. J. ]. Plummer was tho pres
ident of the ill-fnted bank; Leo Cramer.
ce-president and manager; +. M. Cole,
man, cashier, and W. D. Cults, assist
ant cashier.
Only One Bank Affected.
When the announcement was made
that the Idaho State bank had sus.
pended operations the other banks in |
that part of the country anticipated a |
run and by making provisions to guard |
against such contingency. However,
the depositors realized that the col. |
lapse of the bank affected none of the |
other banks, and there were no with |
drawals aside from those made in tho
course of the usual days business
The conditions in the community are
Bumper crops are in sirht |
and the HALEY business men are onti |
mistic over the outlook, despite the
temporary setback caused by the bank
failure.
The re-establishing Of the Idaho State
bank Will necessarily be a slow proc.
ess, The state bank examiner will |
have to ascertain the tangible value OF
the securities held by the bank before
be can make statement as to it's er.
act condition. Until thon it is prob
able that there will be no legal stems
Of any nature taken. However, tbepe
is little doubt that eithor this hank
will be re-established OF q new hank
formed and operated along busines.
lines