Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1921-12-10
ONLY BANK IN CITY
CLOSED ITS DOORS
TUESDAY Night
Slump in Values of Live
Stock Combined wit h
Run Made Action Neces-
sary. Efforts at Reor-
.ganization.

The First National bank failed to
open its doors Wednesday morning
a typewriter statement posted on
the door stating that the closing
was by order Of the directors for the
protection of the depositors. A run
Tuesday depleted the cash Of the
bank almost to the vanishing point
and the expectation OF the officers
that the deposit of Elmore county
would be called for Wednesday
morning We're controlling factors in
the decision to close.
Inquiries by one Of the bonding
companies which leaked out and
became public, started the run, and
the presence of a bank examiner
with several assistants, who came in
Monday evening, helped it along.
A meeting was called at the Wea-
yer theatre Wednesday afternoon at
which the examiner offered some ex-
planatory remarks and proposed a
plan for reorganization. Worth S.
Lee was elected chairman OF tho
meeting and A. r. Anderson secre-
tary, and on motion by r. NJ Hobbs
the chair appointed committee Of
five to nominate a committee Of ten
to act with the bank examiner and
the directors of the bank in effect
ing a reorganization. The COM
mittee consisted of o. e. Cannon,
Fred Bennett, Fl. T. Braden, F, M.
Hobbs and S. r. Gedney.
A recess was taken while the com
mittee celebrated and after ten
minutes the meeting was again cal
led to order to listen to a motion
that. adjournment be taken until
Thursday afternoon to give the com.
mittee more time to celebrate. The
motion was carried
The adjourned meeting Thursday
afternoon lasted but a few minutes.
The committee of the day before re-
ported their list Of ten nominees for
the reorganization committee, and
on motion of DR.. Hamilton the list
was adopted without dissenting
vote The bank examiner, Mr.. Lo-
gan, stated that the committee
should be able to call another meet
ing and report to the depositor5
within day or two.
The committee selected was COM
posed Of the following:
Worth S. Lee, stockman; r. w
Smith, merchant, Fred Bennett,
merchant; O. E. Cannon, account
ant; S. F. Gedney, banker, Elko,
Nev.; J. w. Morton, merchant; R
r. Osborn, merchant; John F.
Gaines, stockman; H. L. Braden,
merchant; F. M. Hobbs, county au
ditor.
The committee was summoned to
meet Immediately with the directors
of the bank, and take UP their inn
portant work of reorganization.
The plan proposed for reorganiza-
tion is broadly, that the stockhold.
ers shall surrender their stock and
pay in to the bank the face value Of
the stock in cash, which is their Ii
ability under the law, That the de-
'positors shall then exchange their
deposits for stock to the amount of
100000, the present capitalization
of the bank, or such capitalization
as is necessary to take care Of the
obligations and make the bank safe.
This will provide the means of TAX
ing up 100000 of doubtful and
worthless paper, and reduce the IL
abilities OF the bank by that much
and by 100000 of present deposits
Then the paper taken up would be
pooled in seperate fund and as it
40 SCiANbbtu LHN utpOSlbOIS wiz
waive would be either paid off or the
former stockholders would be reim-
bursed.
The First National bank was or
ganized in the middle nineties and
bought out the Stockgrowers bank
about ten years ago, and for num-
Der of years was the only bank In
Mountain Home. The Commercial
and Savings bank was organized in
1916 and was closed in 1920, since
which time there has been but the
one bank here. The officers and di4
rectors of the First National on the
date of its closing, were; VIII T.
Montgomery. president; Ernest
Bunk, vice president; A. F. Ander-
con, cashier; Casper Helm and Worth
Montgomery, directors.