Ogden Standard-Examiner | 1927-08-05 | Page 1 | Los Angeles Blamed When 5 Banks Close

LOS ANGELES BlA W WHEN IEN 5 BANKS CLOSE Bitter Note on OIl Doors Is Latest in Owen ViI Val Valley V l- l ley Icy Feud BISHOP Calif Aug 5 By 5 By The Associated Press The The The feud between the city of Los Angeles Anel and ranchers of Owens valley over valuable water Vater rights the cause of frequent Ings of the Los Lo's L s Angeles water system today was blamed for the breakdown of the valleys valley's financial structure structure- all five of the county's banks hating ha closed their doors yesterday esterday This result has been brought about by the last four years e rs of destructive work carried on by the city of Los Angeles was the bitter note posted on the door of each institution to notify depositors of o the failures The banks according to their last avail avail- available available available able statements had total deposits of approximately The banks the First National bank of Bishop the Inyo county bank of Bishop a n. n state institution with branches at Big Dig Pine Independence and Lone Lon Pine were placed in the hands of bank examiners Will C. C Wood state bank superintendent is in Bishop They Thy closed voluntarily according W tO-W W. W Watterson president of the state bank and cashier of 01 the national institution Neither he nor his broth broth- brother er M. M Q Watterson who is president of the national bank and cashier of the state bank would comment on the possibility of reorganization or re reopening re- re reopening reopening opening of the institutions When the state bank examiner ar ar- arrived ar- ar arrived rived here Wednesday I told him frankly without the formality of any examination of our books by him that we were in such a condition that we e would have ha to close our doors said Eald W. W W W. Watterson He lie declared the direct cause of the banks' banks failures was that ranchers ranch rs who had failed to negotiate satisfactory sales to the city of Los Angeles as well as business houses whose business has hns decreased under the water warfare had been unable to liquidate bank loans M M. Q Watterson declared he could not say what protection would be afforded depositors From Los Angeles came a quick de denial de- de denial denial nial that that city was responsible for forthe forthe forthe the situation