1171601527 117160
national
59301cc7f349802bFull suspension, Books examined
Other: The bank closed its doors on March 14, 1927, to protect depositors following runs on neighboring institutions. It was subsequently placed in the hands of a national bank examiner.
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WEST PALM March First tional Bank Lake Worth the Ocean Bank closed the Bank Trust Six banks the district have closed in less than Frenzied depositors were clinging groups the tempts by other Miami forestall chartered bank Palm Beach past week's closand today that colony might take hand in the situation.
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MELLON NOT WORRIED OVER FLORIDA BANKS Washington March Treasury officials worried over the tional banking situation in Florida, but characterized the condition of the national banks there as "generally The closed First National Bank of Lake Worth Fla. considered the first important national banking institution in the state to suspend operations.
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U. S. Officials Unalarmed. Treasury officials are not worried over the national banking situation in Florida, but characterized the condition of the national banks there as "generally good." The closed First National Bank of Lake Worth, Fla., was considered the first important national banking institution in the State to suspend operations. Lee H. Northcott, national bank examiner for Florida, is in charge of the national bank situation in Florida.
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BANKS CLOSED Another Seeks to Stave Off Severe Run WEST PALM Fla., March 14. (By A.P.) Three Palm Beach county banks failed open their doors Monday, while another local financial institution sought to stave off The Farmers Bank Trust company of West Palm Beach, one of the largest banks in this tion, did open Monday following midnight by Reese, its president, that closing of local banks and Palm Beach bank last Tuesday, had precipitated the action. Simultaneously First National bank Lakeworth Ocean City bank of Delray did open Monday morning. reasons for their separate tions were made public. Hawkins, state bank examiner, assumed charge of the Delray Intion worth left that city without at and The Delray bank was capitaldeposits aggregating and the Lakeworth bank had deposits of 622.690 both their statements published in July, 1926. line here Monday morning in termined run Citizens' bank West Palm Beach. sizeable crowd started forming hour before usual opening time augmented by the Farmers bank reports had not been opened. The line stretched solid almost block Clematis street and on Narcisstreet
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PALM BEACH BANKS EXPERIENCING RUN WEST PALM BEACH, March 14. (AP) Three Palm Beach county banks failed to open their doors day while another local financial institution sought to check a critical run. The Farmers Bank & Trust Co., of West Palm Beach and the First National Bank of Lake Worth, and the Ocean City Bank of Del Ray did not open. The Citizens Bank of West Palm Beach was the object of a determined run.
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MORE FLORIDA BANKS CLOSED Three Fail to Open and Another Tries to Stave Off Severe Run. WEST PALM BEACH, March P.)-Three Palm Beach county banks failed to open their doors today. while another local financial institution tried to stave off severe run. The Farmers' Bank and Trust Company, Palm banks this did not open today night by Reese, that the closing of banks Palm Beach bank last Tuesday precipitated the the First National Lake Worth. the Ocean did morning. their actions were made public.
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ANOTHER CLOSES. AND STILL Lakeworth, March Bank, of this The First National closed its doors. The place, today that the action was officers state the interest of the taken protect depositors.
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Three More Florida Banks Close Doors West Palm Beach, Fla. March (AP). Three Palm county banks falled today to open their doors, while another local financial institution sought to stave off severe run. The Farmers' Bank & Trust company of West Palm Beach. the First National bank of Lake Worth and the Ocean City bank of Delray remained closed A long line of men and women braved a pelting rain in the run on the Citizens bank of West Palm Beach.
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FRANTIC RUN ON FLORIDA BANKS HALTS Armored Truck Rushes 12 Sacks Of Currency To Rescue THREE CLOSINGS START TROUBLE Officials Issue Quieting Statements To Excited Depositors (By Associated Press) BEACH. March WEST PALM in the Palm quiet tone prevailed period of Beaches tonight following when determined excitement today the bank. prompted run on of three Beach by the closing county banks. early in the afternoon. only short lines of depositors at the windows. Two of the three banks remaining open here did not experience runs. They the regular closing hours announcing that plenty of funds had been obtained pay remained until o'clock to meet all requests for payments. Truck Bring Aid The was aided largely by the arrival armored truck from Miami, bearing sacks currency the beleagured Citizens which did not for business included Bank and Trust the largest banking institutions here, which closed was announce the positors the clared not result of the closing. Plans reopening the within 30 days were anThe First National bank of Lakeworth and the Ocean City of were other which did open official statement closing officials here and quieting ments, upon the banks their "proper assuring depositors that the banks which remained be meet every Officials of Citizens pressed to bank will even stronger than when we open directors of the Farmers' Bank Trust company, said It was decided to the
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CONDITION GOOD. Washington, March 14. (P)Treasury officials are not worried over the national banking situation in Florida, but characterized the condition of the national banks as "generally good." The closed First National Bank of Lake Worth, Fla., was considered the first important national banking institution in the state to suspend operations. Lee H. Northcott, National bank examiner for Florida, is in charge of the national bank situation in Florida.
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LAKE WORTH WITHOUT BANK LAKE WORTH Fla., March 15 Worth today is withthe first time since 1913. the First National rth announcing this morning with sign the doors to the effect that the bank closed for the protection of depositors The Bank of Lake Worth first to serve this city. expended in 1925 and operated under the name of the First Bank and Trust Company It closed its doors February 24. and is now in charge of Tomkins C Haw. "ine state bank examiner The closing of this hank was said to have precipitated withdrawal of deposits at the First National of this city and the suspension of the Farmers' Bank and Trust Company at West Palm Beach was announced. cause. the officers of the bank here to suspend for the protection of depositors
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NATIONAL BANKS HOLD GOOD FLORIDA STATUS Treasury officials not over the national banking situation in Florida, characterized the con dition of the national banks ther "generally The closed National Bank of Lake Worth the first important banking stitution in the state to uspend opeLee H. Northcott national bank xaminer for Florida is in charge the national bank situation in Flor. ida.
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PALM BEACH BANKS QUIETER AFTER SUSTAINING Citizens Bank is Besieged by Depositors But Cares For All Applicants With Cash, Ending Stampede. WEST PALM BEACH, Mar. tone prevailed in the Palm Beach tonight following riod of when ermined run on the Citizens Bank, prompted by closing of additional Palm Beach county banks, abated early in the afternoon only lines of depositors at the Two of the three banks remaining did runs. The announcing that plenty of funds obtained pay every dtpositor, remained open six o'clock meet all requests for payments. The normaley was alded largely by the from bringing sacks Citizens Bank The banks which did open for business included Farmers Bank Trust Company of the largest nounced the interest positors whom declared cent result the for opening the bank within 30 or 60 announced The First National Bank of Lake Worth and the Ocean Bank Delray the other banks which did not open official issued regarding their closing today brought the total number banks which had suspended in the Palm Beaches within few months seven Three of closed last officials here the the 'proper operation that the will be able to meet every demand Officials of the Citizens Bank pressed their determination bank will be stronger and Bank Trust said after which was decided institution. Inactivity the real estate market and the fact that much the banks receivables kind of was given the for the recent closings Florida. "The great withdrawals which faster than the banks can their the breaking down reserves, making necessary for the institutions said the comptroller ding follow because bank is closed that insolvent.'
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the closing on Tuesday of two local banks precipitated the action. Simultaneously the First National Bank of Lake Worth and the Ocean City Bank at Delray did not open. The closing of the bank at Lake Worth left that city without a bank. A long line braved a pelting, intermittent rain in a run on the Citizens Bank of West Palm Beach. The line stretched solid almost a block and a half. Reports are being circulated that an armored truck is bringing funds.
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QUIETER TONE IN PALM BEACH BANK SITUATION West Palm Beach, Fla., March quieter tone prevailed Palm Beaches tonight following period of excitement when determined run on the Citizens bank, prompted by the closing of three banks in Palm Beach county, abated early this afternoon, only lines of deat the windows. Two the three banks remaining open here did experience runs. They the regular closing hours. Citizens bank, however, remained until o'clock to meet all requests for payments. The return normality was aided largely by the arrival from Miami of sacks of currency for the Citizens bank. The banks which did not open today included the Farmers Bank and Trust company. The bank closed temporarily, was announced, in the interest the depositors. Plans for reopening the bank within 30 to 60 were announced. The First National bank, of Lake Worth, and the Ocean City bank, of Delray, were the other banks which did open today. No official statement was issued regarding their closMeanwhile banking officials here and at Tallahassee quieting statements calling patrons give their institutions "proper co-operation' and assuring depositors that the banks which have remained open able to meet every demand Officials the Citizens bank expressed their determination not to close "now or hereafter "The bank will be even stronger than when open offiand directors of the Farmers said. Inactivity of the real estate market and the fact that much of the bank's based upon real estate security was given by Er nest Amos, state comptroller, the cause for the recent closings.
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DETERMINED PALM BANK Excitement Caused By Closing of Three More Institutions FROZEN ASSETS CAUSED TROUBLE Treasury Officials Not Worried Over Condition of Banks West Palm Beach, March quieter prevailed in the Palm Beaches tonight following period today when determined Citizens prompted by the closing three additional Beach county abated early the afternoon leaving only thin lines of depositors the windows. banks remaining did not The that funds been every depositor ments. o'clock to meet all requests for pay- Money Sent From Miami. return normalcy was aided largely the arrival armored truck from Miami twelve currency for the The which not open for the Bank and Trust Company, one of largest here, closed temporarily. was announced. the interest of the depositors the bank's clared would not cent sult the closing. Plans reopenthe thirty or sixty National of Lake Worth and the City Delray the which open today. official statement their closing The closings today brought the banks have Palm Beaches within suspended the few seven. Three of these officials here and Tallahassee issued upon the patrons of banks to institutions "proper tion," and assuring that the banks have remained will be able every Will Close. Officials Citizens bank pressed determination not to close bank be even stronger than when open officers directors of the Farmers Bank and Trust said an night was decided to the of the market are based that troller security was given by State CompErnest Amos the cause for the closings in Florida great withdrawals which are faster the banks can liquidate in the necessary sussaid the comptroller. adding follow that because bank is closed that insolvent. evidence of the latter statement, the pointed the re-opening suspended banks in Florida within the that the of most the banks has gravated and attitude the Amos Aggravate Situation. am looking greater the people will their heads. If they become frightened on any bank locality the situation aggravated. The people theminjure help Banks With the proper operation of depositors and community spirit to put reason for the recent susbelieved has checks into winter This costs the banks some- Continued on Page Column
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MAY OPEN BANK Special The Post Lake Worth April Several hundred depositors met with officers and of the First National Bank of Lake Worth at 7:30 o'clock tonight at the American Legion arena here and voted as being in favor of the "freezing" agreement and other plans for reopening the bank. EFFICIENCY "HI! Kelley to brickon the scaffold above him, "throw me brick "Phwat for?" demanded the brick. layer need one more to fill this hod I'm bringing London. measure for indeterminate prison Representatives Catts and Oliver would authorize purchase of Con nor's highway.
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BANK RECEIVER TO PAY INITIAL DIVIDEND Tunnicliffe Announces Early Payment of 10 Percent to Depositors TOTAL OF $107.232.38 WILL BE DISTRIBUTED Report Shows Interest Due Institution Has Paid for Receivership Following the heels of nouncement by Cunningham, that dividends would be paid depositors of both First Nation. bank of Lake Worth the Palm Beach National dividend of 10 per of the Commercial Bank Trust company declared yesterday The dividend declared follow. Mr. return from Tallahassee where the approval of the given. Checks aggregating the amount were issued by the brought here by the Dividends will paid all deposi. the bank hold certificates issued Payments be made immediately presentation of the certificates. notification of the divi. dend being mailed out yester. day by Mr. Tunnicliffe holders of certificates in the The contents as hereby notified that first has issued by the of the be made at the office of the mercial Trust Palm Beach, and that the certificates presented that proper made ceiver's must the same the address given above the proper on the certificate, be turned to the owner together dividend Mr. as The bank took the office receiver last recent to the that the the earned the the up to No. vember had been the the and leave operating profit of dividends the National Lake Worth and the Palm Beach National bank December made Thursday Cunningham, for these He said that the dividend depositors First National bank of Lake Worth would and those the Palm Beach bank would With the payment of the dividend the Palm Beach stitution 1926 The dividend the Worth institution be its
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Lake Worth Bank Receiver Wins Suit A verdict in favor of the plaintiff was awarded by jury in the federal court today in the suit of John B. Cunningham, receiver for the First National Bank of Lake Worth, Fla., against C. N Smith, one of the of the inand owner of 24 shares of Cunningham testified that stockholders the bank had been assessed 100 cent. of their stock following the collapse of the institution on March 13, 1927. awarded judgment against Smith for
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BANK WINS $2,400 IN DAMAGES Cunningham, for the First/ National of Lake Worth closed its doors on March 12, 1927. judgment of 400 N. in the federal district Cunningham testified that Smith. owner of 24 shares stock in the bank, had refused to meet 100 stock assessment levied against the share ownere.
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PROMISE IS GIVEN OF BANK DIVIDENDS Receiver of Two Defunct Institutions Announces Early 10 Percent Payment A note of optimism was injected yesterday into the local financial situation by announcement that dividends would be paid shortly to depositors defunct National bank of West Palm Beach the First National of Lake Worth. B. Cunningham, receiver for both institutions, announced yesterday that in late July or early Angust substantial dividend would be deposits the West Palm Beach first to be paid since it closed last fall. At the same time he announced that checks were expected shortly from Washington for 10 per cent dividend on the Lake Worth bank. This bring the dividends to 35 per cent. Policeman J. M. Tapscott showed the boys how is done yesterday on the when hung up of Yackie and Adams each scored 62 to tie for
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DEPOSIT ACCEPTANCE BY INSOLVENT BANKS IS HELD TO BE FRAUD Judge Ritter, at Miami, Renders Decision of Widespread Local Interest In Settling Suit Against First National Bank Lake Worth ENDERING a verdict of wide interest in local circles, Judge Halsted L. Ritter of the U. S. southern district court at Miami has held that acceptance of deposits by banks when the officers know the institution is in an insolvent condition, is fraud. Judge Ritter directed jury to return verdict for Mrs. Nellie M. Bunker of Lake Worth, defendant in suit instituted by the receiver of the defunct First National Bank of Lake Worth. The receiver brought suit against Mrs. Bunker, sister-in-law of E. Bunker, president of the First Bank & Trust Company of Lake Worth, on check made out to Mr. Bunker made out 15 minutes before the bank closed at noon March 12, 1927, never reopen. On March 12, 1927, Mrs. Bunker with her brother-in-law went the bank to deposit $17,000 check. The money was part of the purchase price of an ice plant and was drawn on Tenn., bank. At the bank Mrs. Bunker deposited the check and drew for $6,500 made Mr. Bunker, his share of the money. They left the bank at about 11:45 16 minutes before the bank closed at noon and declared insolvent. Hearing the next day, Sunday, the bank was insolvent, Mrs. Bunker wired the Chattanooga bank to stop payment on the check. Later the receiver instituted suit against Mrs. Bunker for $6,500, the face value the check. Rufus Boozer and Wallace H. Boozer of Boozer & Boozer, attorneys for the defendant, filed plea of fraud, holding that the bank officials knew of the bank's insolvent condition and wrongfully neglected to make the The complainant's demurrer to the plea of the defendant was argued before District Judge H. D. Clayton at Miami, January 31, 1928. Sherman Bainum Daytona Beach and Wideman Wideman represented the complainant. Mr. Boozer declared Friday that probably many persons could institute suit with some hope of success, butmight be stopped by the statute of limitations or through having signed claims. Mr. Boozer cited the following case, brought before the United States supreme court, of St. Louis San Francisco R. Co. Johnson, 33 L. ed. 683, where the question the sufficiency of fraud allegations "The bill alleged that the bank was on the 5th day of May: that this was well known to its officers: that it wrongfully neglected to disclose its insolvency to complainant, and, by continuing business and otherwise. represented to complainant and all other persons dealing with it that was solvent; that complainant, on the faith of these representations, believed such be the fact, without suspicion that the bank was, or was in danger of becoming, insolvent; that, acting upon the representations, and on the bank's solvency, complainant delivered the draft; the next morning the bank closed its doors, and the draft was collected thereafter; and that by reason the premises the draft or its proceeds did not become the property of the bank. The receiver in his answer specifically denies these averments. We think the issue thus framed was sufficient to enable the court to proceed to decree. The fraudulent intention flowed from the guilty knowledge, and the bank must be held to the consequences of representation which it knew to be contrary to facts and upon which the complainant innocently acted. Granted that the omission to disclose the insolvency, if there had been ground for the supposition that the bank might continue in would not be sufficient there nothing for such a belief rest on here. As matter of pleading, the was that the bank wrongfully neglected to make the disclosure; as matter of fact the condition of the bank was so that it was its duty to make it. The omission specifically state in the pleading the degree of insolvency the bank's conduct fraudulent was not fatal, as the showed the intention of the pleader, and the particular contention could be fairly tested on the hearing.
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DAILY RECORD CIRCUIT COURT John B. Cunningham, as rec. of First National Bank of Lake Worth, Fla., vs. Simi, al., bc. fm.; John B. Cunningham, as rec. of Bank of Lake Worth, Fla., vs. Simi, al., bc. fm.; The Edward Roddy Corporation Thomas Farrell, also known Farrell, al., be. fm.; WilMalony. Elizabeth Taylor Foster, by William Foster, next friend, vs. The Publishing Company, corp., praec. sums. ad resp, dams. $10,000; Gould & McWilbur S. Foster VS. The Metropolis Publishing Company, Fla., corp., prace. for sums, ad resp. dams. $2,500; Gould McGee. TRIAL D. L. Shackelford, doing business Bainbridge Motor Car Co., Percifield, and H. E. Percifield, doing business as Percifield Automobile Co., dams. $975: Winters, Foskett Wilcox: McCoy & Finch. Strick on motion of plaintiff; no objection by defendant. Thomas H. Fancher VS. George Johnson, dams. Fancher, Paty Warwick: Houser Wood. Final judgment entered. Carl Hannon, his father and next Will Palm Beach Oil dams. $50,000: Blackwell, Moore: Baker White and Wideman. Continued o'clock Thursday morning. Oother cases continued until today. MARRIAGE LICENSES Garland Howe Jacques, M. street, Katherine DuBruth, 741 street. REAL Master's Clarence Geist. 1-2 NE of NW Sec. 32-47-43 (10 and all that part NE 1-4 of Sec. 32of WD-Henry Phipps and wife. Gladys Frederick Johnson. Lot Vita Serena, Miller to John McDonald Lots to incl. Blk. in Miller being Trs. to Sec. WD-John Miller (wdr.) to John BUDDY BRIAN McDonald, Lots incl., MARY Blk. Miller Being Trs. In OF 77 incl., Sec. 19-46-42. "THE Master's Deed White (Spec. M.) Ira J. Brussel. Tract Picturesque Blk. Plat Developers, Inc., to L-F Realty Co. Lots and 46, Belvedere Court Add. No. Days Hunter to Tabb. Civil 41 of Ridgeway Beach, Units Vitaphone 18-42-37. Hunter, wf. of Thomas Hunter to Tabb. Lot Ridgeway Beach S-D, Sec. 18-
Bank Receiver Sues Col. W. J. Southam The Post Lake Worth Bureau Col. William Southam, widely known Canadian publisher of Hamilton, Ont., named defendant in $7,500 attachment suit filed in circuit court Wednesday by Roy Garnett, the First National Bank of Lake Attachment in the sum of with the United States Fidelity Guaranty Company of Baltimore, Md., surety, was filed. While with the law firm of Wideman. Wideman Wardlaw representing the plaintiff. refused divulge the they would not deny that connected the reported purchase Southam the bank's building at Lake Worth Authority was the receiver federal court sell the property Notice the on by the sheriff of five parcels of property owned by Southam and in the vicinity of Boca Raton including considerable ocean frontage signed by Deputy Sheriff Packwood and filed in court Wed. nesday
Former Bank Receiver Here Dies in Boston Word received the Boston John receiver national banks Miami West Palm Beach His followed stroke, suffered three weeks earlier. He years Mr. Cunningham for many the employ the federal government, and served ceiver for Boston banks. He became widely known federal circles through his connection the office the comptroller currency and member the bureau criminal investigation, department of justice receiver Palm Beach National bank, the National Bank West Palm Beach the First National Lake Worth, Cunningham made enviable Rio Grande Texas cently voted for her cease being