First National Bank, Bishop, CA (Charter 10999)

Postcard of the First National Bank of Bishop, California, ca1920s. Courtesy of Adam Stroup

First National Bank (No Issue), Bishop, CA (Chartered 1917 - Receivership 1927)

Town History

The old First National Bank of Bishop, located at the corner of Main and Line Streets. Courtesy of Google Maps, ca2022

Bishop (formerly Bishop Creek) is the only incorporated city in Inyo County, California. It is located near the northern end of the Owens Valley within the Mojave Desert, at an elevation of 4,150 feet. The city was named after Bishop Creek, flowing out of the Sierra Nevada range; the creek was named after Samuel Addison Bishop, a settler in the Owens Valley. Bishop is a commercial and residential center, while many vacation destinations and tourist attractions in the Sierra Nevada are located nearby. The population of the city was 3,819 at the 2020 census. In 1920 the population was 1,304, declining to 1,159 by 1930.

Geographically, Inyo County is today the second largest county in California with a population of slightly over 18,000 residents. The county is so large that several eastern states put together would fit neatly within its boundaries. Inyo County contains both the highest and lowest points in the contiguous United States; Mt. Whitney, 14,496 feet above sea level, and Badwater in Death Valley, 282 feet below sea level.

Bishop had one National Bank chartered during the Bank Note Era, and it did not issue National Bank Notes.

Bank History

• Organized November 21, 1916
• Chartered May 25, 1917
• Non-issuing
• Receivership August 15, 1927

Oklahoma Financiers Grasp an Opportunity

Through a deal closed Saturday, November 18, 1916, and involving $55,000 cash, Bishop, the lively commercial center of the Owens Valley, would get a third bank, the largest modern business block in California east of the Sierra Nevada Mountains, and new impetus to the rapid progress that community was making. This valley, Los Angeles' rich tributary north with many developing resources, had been attracting attention and capital all summer. The latest money to go in came from the Middle West. The man behind it was C.A. Eastman, for twenty years principal owner of a bank bearing his name in Newkirk, Oklahoma. Along with his brother, J.S. Eastman, they sold their Oklahoma holdings in the Eastman National Bank of Newkirk for a large figure.

C.A. Eastman purchased from George Watterson, pioneer Bishop hardware merchant, the southeast corner of Main and Line Streets, 78 x 100 feet; also the large stock of the George Watterson Hardware Company located in a building of nominal value on the lot. This business would thereafter be conducted as the C.A. Eastman Hardware Company. The old building would be razed immediately and a handsome brick block of two stories, with white tile front and covering the entire ground space. The upper floor would be fine lodge rooms and offices, while the new First National Bank of Bishop, the hardware concern, and a drug store would occupy the first floor. The bank started with $30,000 capital and surplus and C.A. Eastman, principal stockholder, as president. William George, who resigned as cashier in Newkirk to go to Bishop, would occupy that position in the new institution.

Mr. Watterson, who had been in business for 38 years in the valley planned to devote his time to thoroughbred cattle, ranch and financial interests, being the principal stockholder in the Owens Valley Bank of which Col. Tom Thornton, formerly of Los Angeles was manager. Bishop, with a population of less than 2,000 already had two strong banks with deposits aggregating considerably over $1,000,000 and showing surprising growth. One of these, the Inyo County Bank, is the oldest and strongest financial house of the valley and was owned by the Watterson family, Wilfred W. Watterson being president and Mark S. Watterson, cashier. It is believed Mr. Eastman's enterprise would make Bishop the smallest city in the State, if not the West, with three banks.

Consolidation of the Owens Valley Bank and the First National Bank of Bishop

Bishop Creek and Mt. Whitney were featured in this 1925 pictorial which included photos of leading Owens Valley promoters and bankers, M.Q. and W.W. Watterson, of the Inyo County Bank.

On Saturday, May 6, 1922, a business change of more than ordinary interest to the people of Owens Valley, and the biggest single business transaction that ever occurred in Bishop, took place when W.W. and M.Q. Watterson, owners of the Inyo County Bank and its branches at Big Pine and Independence, and also owners of the Owens Valley Bank of Bishop, purchased the First National Bank. The First National and Owens Valley banks would be consolidated within the very near future as soon as the necessary details could be taken care of and would be run as the First National Bank. For a time, at least, John S. Eastman, vice president of the First National, and Wm. J. George, cashier of that institution, would remain with the bank. C.A. Eastman, president of the bank, would remain in Bishop for some time but expected to be away a great deal of the time in the near future taking care of some of the large Eastman interests in other parts of the country. In taking over the First National Bank, the Watterson's have also purchased the fixtures of the banking house and have taken a ten years' lease on the building. It is their intention to keep the bank permanently located in its present home. The consolidation of these banks was merely along the lines of the trend followed throughout every section of the country in the merging of large financial institutions. The immediate reason for the action of the Eastman brothers in selling their bank was the fact that the large holdings which they had in Oklahoma, near the famous Burkburnett oil fields, made it absolutely necessary that they devote more of their time to looking after these properties. Oil had been struck on three sides of their property and well-informed oil men told them that all that was needed to make this ground oil producing was to drill wells. With fortunes being made in oil, the Eastman's couldn't afford to let their properties go undeveloped.

Five Banks Close as Result of Water Feud

In August 1927, the feud of city and ranchers over Owen Valley's valuable water rights, the cause of frequent dynamiting of the Los Angeles water system, was blamed for the complete breakdown of the valley banking system, its five banks having closed their doors on Thursday, August 4th. "This result was brought about by the last four years of destructive work carried on by City of Los Angeles," was the bitter note posted on the door of each to notify depositors of the bank failures. On August 5th, 1927, the First National Bank of Bishop, the Inyo County Bank of Bishop, state institution, with three branches at Big Pine, Independence, and Lone Pine, were in the hands of bank examiners. Will C. Wood, state bank superintendent, was in Bishop. The banks closed voluntarily, according to W. Watterson, president of the state bank and cashier of the national institution. Neither he nor his brother, M.Q. Watterson, president of the National Bank and cashier of the State Bank, would comment on reorganization or reopening of the institutions. the state bank examiner arrived 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 would have to close our doors," said Watterson. He explained that the direct cause of the banks' failures was that ranchers who had "failed to negotiate satisfactory sales to the City of Los Angeles," as well as business houses whose business has decreased under the water warfare, had been unable to liquidate bank loans. M.Q. Watterson declared last night he could not say what protection would be afforded depositors. Neither would he predict the probability of recovering outstanding loans and other possible revenue. The bank examiners would have to make any statements he declared. From Los Angeles came a quick denial that that city was responsible for the Owens valley banking situation.

"The City of Los Angeles has sent a great deal of money into the valley and it all has cleared through these banks," said John R. Richardson, member of the Los Angeles Water and Power Commission, which had fought the battles to gain for the city the valley water rights. "The cause of the failures appear to us to be internal. Certainly, the city can in no way be charged with responsibility." L.M. Anderson, controller of the water and power department, said that $40,000 of department's funds were in the valley banks when they closed yesterday, the largest amount ever kept there. The First National Bank of Bishop was organized in 1916, and showed capital last December of $50,000, while the Inyo County Bank was organized in 1902 and showed capital of $12,500. The purchase of Owens Valley land and water rights and the diversion of part of the water of Owens River 20 years ago when the Los Angeles aqueduct was built, started a strife between valley ranchers and merchants and the city, which had grown in bitterness ever since.

The valley businessmen demanded reparation for business losses through decreased population, and remaining ranchers demanded the purchase by the city of their lands at assertedly high values. The total reparations asked approximated $7,000,000. The city had paid between twelve and fifteen million dollars cash for lands purchased, reparationists' figures showed. In the reparations war violence had been resorted to a dozen times by valley residents seeking to force the city to meet their demands. The aqueduct had been damaged more or less seriously by dynamite blasts, several of the outrages causing sufficient damage to force shutting off of the water for several days at a time to make repairs. The most serious explosion was at No Name Canyon in the lower end of the 100-mile-long valley last May. Nearly 400 feet of 9-foot steel siphon were torn out by a terrific blast.

In March 1928, involuntary bankruptcy proceedings were instituted in Federal court against W.W. and M.Q. Watterson. The Inyo county bankers were serving from one to ten years in San Quentin penitentiary for embezzlement and falsification of records. The petition in bankruptcy was filed by Attorney Reuben G. Hunt, representing Will C. Wood, State Superintendent of Banks, as trustee of the Bank of Bishop, and Dunham-Carrigan and Hayden and Eloesser-Heynemann, San Francisco wholesale houses whose claims were $741.18 and $141.75, respectively. The total liabilities of the brothers jointly, as individuals, and of Watterson Bros., Inc., were set forth at $474,193.65 or two-thirds of a grand total of $632,258.20 representing the loss consequent upon failure of the First National Bank of Bishop of which they were the owners.

In November 1931, Jess A. Hession, deputy attorney general and trustee of the bankrupt estate of Watterson Brothers, Inc., planned to distribute $120,000 representing an 8% dividend to 200 depositors in the defunct Bank of Bishop. W.W. and W.Q. Watterson were serving their term in San Quentin for the crash of their bank. Hession had prosecuted the brothers as then district attorney of Inyo County. Hession estimated 25% would be the limit on salvage to stockholders.

On April 1, 1933, W.W. and M.Q. Watterson left prison for Southern California on parole. They served approximately five years on 10-year sentences.

Wilfred W. Watterson, Owens Valley Leader for more than 25 Years

Mr. Wilfred W. Watterson passed away November 14, 1941, in a Glendale sanitorium after a three weeks' illness. A native Californian, born December 24, 1869, in Stockton, he first came to Owens Valley as a lad of 16, herding a band of sheep. In 1896 he bought an interest in a store at Bishop with his cousin, T.E. Leece. The firm operated as Leece and Watterson. Upon the death of Leece, a partnership was formed by Wilfred Watterson and his brother, Mark. Through this firm he was able to put into execution many projects of benefit to farmers and to the community. Due to poor transportation and trade facilities, farmers were unable to dispose of grain and secure cash for needed agricultural improvements. Watterson Brothers accepted grain in exchange for necessary machinery and by means of regular team freight service, developed markets in Candelaria and other Nevada towns for local produce. They also encouraged farmers to go in for crops valuable enough to pay high freight rates to Los Angeles and not perishable such as live turkeys. By guaranteeing a full load both ways, the firm was able to secure substantial reduction in hauling costs.

Mr. Watterson was proud of the fact that in 1904 he received a letter from Studebaker Co. saying his firm had sold more wagons than anyone west of the Rockies. With the advent of the automobile, Mr. Watterson recognized what the horseless carriage would mean for an isolated community and in 1908 put in the first car agency. He then gave both time and financial assistance to build a highway working chiefly through Inyo Good Roads Club, organized in 1912. Due to the widespread nature of their businesses, so many people were in the habit of leaving money with the Watterson Brothers for safe keeping that formation of a bank seemed imperative and they organized the Inyo County Bank in March 1902, first bank in the county. In 25 years in banking, they never sued a customer or foreclosed a mortgage. When Los Angeles began its buying campaign in 1923-24, they devoted their energies to bolstering economic life of the community. Unable to stave off disaster for the valley, the bank failed in 1927. Mr. Watterson was still undaunted in spirit. Without finances, he was not able to carry through his dreams. His last months were spent in the mountains north of Bishop where he was interested in a mining project. Wilfred W. Watterson, leader in Owens Valley affairs for more than 25 years, came home for the last time to Inyo, the land he loved, and was buried in Pioneer Cemetery, Bishop.

Official Bank Title

1: The First National Bank of Bishop, CA

Bank Note Types Issued

No National Bank Notes were issued by this bank.

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1917 - 1927):

Presidents:

• Charles A. Eastman, 1917-1921
• Mark Quayle Watterson, 1922-1926

Cashiers:

• William Joseph George, 1917-1926

Other Known Bank Note Signers

• John Samuel Eastman, Vice President 1922

Bank Note History Links

• First National Bank (No Issue), Bishop, CA History (NB Lookup)
• California Bank Note History (BNH Wiki)

Sources

• Bishop, CA, on Wikipedia
• Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
• Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
• Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project