The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-24
Utah Banking Company's Insti-
tutiOns at Lehi and American
Fork Close Doors.
DIRECTORS PREDICT EARLY
RESUMPTION OF BUSINESS
Heavy Demands and Inability to
Realize Promptly on Assets
Given as Cause.

the bank OF the Utah Banking company
Mt Lehi and the company's branch al
American Fork. Both institutions are
now in the hands OF State Bank EXami-
ncr c. Albert Glazicr pending the ap-
poiutment of receiver
According to statement issued Mon
day by Secretary OF state IlhgeS. tho
failures were caused by heavy demands
made upon the bank. a steady "lthdfa"ai
OF deposits. which II was unable TO
meet, and inability 10 realize promptly
on its notes and other assets.
The statement adds that the depositors
will. without doubt be paid in full. and
that, in all probability. the banks VIII
he permitted TO resume business IN the
near future.
To Make Heavy Assessment.
The bank directors met at Lchi Mon"
day evening and after going over the
situation announced that both instItu-
tlons undoubtedly will be reopcDed within
sixty days.
A majority of the stock was represented
at the meeting and il was decided To
make an assessment to meet some oil Ihc
biggest apd most insistent demands Inc
assessment viii amount to gu per cent OF
all holdings and this Will be paid in inn
incdietely This. the directors say. VIII
raise about $25,0 The directors an
nounce that outsiders have agreed to ad-
sessment Is paid in. to carry botn lnsu-
tutons through in good shape.
The Utah Banking company apparent
ly was doing prosperous business, Ira
b. Wines OF this city is president;
Thomas Webb and ]. II. storrs are the
vice presidents. and among other stock
holders are A J. Evans. William MIa,,lI Ihorm5 M
James II Clark. Mr.. Wines Is In Lehi
in consultation with other officials G.
c. Friel was cashier OF the bank at I.ehi,
and James II. Clark was cashier OF the
American Fork branch
Last Statement
The last sworn statement made to the
secretary OF state shows the condition of
the banks at the close Of business No
yember u, 1910. to have been as fol-
lows.
Resources-Loans and discounts. s329,-
495 So overdrafts. s37Ss.37; bonds. stocks.
certificates, etc, So; ;o45; furniture and
fixtures. sl1:5oO. due from national
and bankers. SOS, Sc. cash on hand.
paid, S449215: Utah Banking company.
$19.S1; total. si79. 9.GSs.44,
Liabilities-Capital stock paid in. $50
600; surplus fund. $4,000; undivided
profits. s2osS.1s; due TO national banks.
vidual deposits ls2.o4S27; savings de-
62$74 cashiers checks, s526S.47; time
certificates OF deposit, sl39. 9.9iS62; total,
$419,633 A.,
Long Time Loans Blamed.
Tic Trouble, according 10 information
from those intimately associated with the
companys business, has been of rather
long standing, and is due primarily to
several long time loans made prior TO
the time the management was taken over
by Cashier Fucl. The loans are secured,
II is understood, by good farm proper
ties. but they run for from two to six
years. which made it impossible for the
bank TO realize on them in time OF need
Three weeks ago IL was rumored that
the banks were i'm bad shape. and two
or three depositors who knew OF this
whispered the information to few OF
their friends, with the result that there
was quite run on the institutions In
the last several days,
Officials of the company came to this
city Sunday and discussed the situation
pressed a willingness TO help the instf-
tutions If 1t could be shown that fair
proportion OF the assets could be ljuli-
dated. but after going over the details
OF the situation IL was decided that [t
would be better TO suspend business for
a short time than to try TO meet the do
mands OF depositors at present
Many Lehi Depositers.
Most of the business men OF Lchi were
dcpositors at the Utah company's instl-
tuition. The PEOPLES Coop has $4,000
on deposit the school district. $1,000: S.
L. Wells, about 1000 and ThaddeDs
Powell. from s12. 900 to $4,000
Stockholders and directors of the com
pany. as well as Examiner GlazIer and
Others interested are confident that IL
closed institutions Will soon be able TO
resume business, but nevertheless the
trouble is expected to Inconvenience de-
positors. especially the business men. TO
a considerable extent