C. Arnholt Smith

Conrad Arnholt Smith
Born	Template:Birth date Walla Walla, Washington, U.S.
Died	June 8, 1996(1996-06-08) (aged 97) Del Mar, California, U.S.
Occupation(s)	Financier, entrepreneur, civic leader, political fundraiser
Known for	Ownership of United States National Bank of San Diego; ownership of San Diego Padres; involvement in banking scandal and conviction for bank fraud and embezzlement

Conrad Arnholt Smith (commonly referred to as C. Arnholt Smith) (born March 13, 1899, in Walla Walla, Washington – passed away June 8, 1996, in Del Mar, California) was an American financier, entrepreneur, civic leader, political fundraiser, and convicted felon with significant connections to San Diego, California.

Personal life

Smith entered the world in Walla Walla, Washington. His family relocated to San Diego in 1907 following his father’s incarceration for perjury related to a political matter. Growing up in modest circumstances and without completing high school, Smith began working as a bank teller. He quickly earned the favor of A.P. Giannini, who promoted him swiftly within the Bank of Italy, later known as Bank of America. In 1922, he wed Lois Seaver Smith and fathered two children: C. Arnholt Smith, Jr., and Carol Smith Shannon. During the 1970s, he entered into marriage with Maria Helen Alvarez.

Businessman

Supported financially by his brother involved in the oil sector, Smith purchased the United States National Bank of San Diego in 1933. Under his stewardship, the bank expanded to become San Diego’s largest financial institution and ranked tenth across California. Among the bank’s assets was National Iron Works, a prominent shipbuilding firm now integrated into General Dynamics. This broadened Smith’s business scope beyond banking into industrial enterprises, solidifying his status as a key civic figure in San Diego.

Smith wielded control over the city’s premier bank while holding substantial stakes in tuna fishing operations, real estate ventures, and professional sports franchises. He owned the San Diego Padres from their minor league inception in 1955 through their elevation to the National League until he sold the team to McDonald's founder Ray Kroc following unsuccessful attempts to relocate the franchise to Washington, D.C..

A close confidant of President Richard M. Nixon, Smith raised approximately $1 million for Nixon’s 1968 presidential campaign—including a personal donation of $250,000—and contributed $200,000 toward Nixon’s 1972 re-election campaign; however, these funds were returned amid inquiries by the SEC and IRS.

Smith consolidated his non-banking enterprises under Westgate-California Corporation, where his family retained majority voting power. Westgate-California’s portfolio encompassed real estate holdings, seafood canneries with major investments in San Diego’s tuna industry, silver mining operations, transportation firms such as Air California, among others. Confronted with competition from lower-cost Japanese tuna imports after 1950, Smith aimed to diminish union influence by integrating new technologies and utilizing Peruvian canneries.

Prison

Smith’s principal asset was his controlling stake in the United States National Bank of San Diego, acquired in 1933. The bank grew to become the 86th largest nationwide with assets totaling $1.2 billion before collapsing in October 1973—the largest bank failure at that period—due to excessive loans extended to companies under Smith’s control that surpassed legal limits. In August 1973, the Internal Revenue Service filed suit against Smith for $23 million in unpaid taxes; however, criminal charges were subsequently dropped. In 1975, Smith entered a no-contest plea to bank fraud charges and was sentenced to probation along with a $30,000 fine. That same year, the Federal Deposit Insurance Corporation pursued a $45 million lawsuit against him for engaging in "unsafe and unsound" banking practices. In 1977, he was imprisoned for contempt after refusing to disclose his personal financial records. In 1979, Smith was convicted on counts of embezzling $8.9 million and committing tax fraud connected to the sale of the San Diego Padres. He served eight months at a minimum-security Work Furlough Center during 1984–85; his sentence was reduced due to declining health. Smith died destitute in 1996 at age 97 from congestive heart failure.

External links

• Noble, Holcombe B. "C. Arnholt Smith, 97, Banker and Padres Leader Prior to Decline". The New York Times. June 11, 1996.
• "San Diego Business Magnate C. Arnholt Smith Passes Away". Los Angeles Times. June 10, 1996.
• History of San Diego Padres Ownership
• "Smith Appeals to Governor for Assistance in Freedom Effort". Los Angeles Times. April 13, 1985.
• "Banking: The Westgate Controversy". Time. October 9, 1973.
• "Concluding Episode in the Westgate Affair". The New York Times. May 6, 1982.