First National Bank (Pensacola, FL)

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Third in Two Weeks

PENSACOLA, Fla., Jan. 8.-Dullness of the lumbtr market and withdrawal of deposits were the reasons asigned for the closing today of the First National bank, one of the largest banks in Florida. It it the third bank closing in the south within one week.

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Pensacola Bank Closes Its Doors Big Depositor Unable to Pay Draft, Starts Run on Bank. Pensacola, Fla., Jan. 8-Failure of the First National Bank of Pensacola to open its doors for business today was explained by officials of the bank as due to the withdrawal yesterday of the accounts of a number of depositors. These withdrawals, it was pointed out, probably resulted from the fact that the Crow, Rudolph & Company, Liverpool Lumber broker, had issued a statement of its inability to pay drafts for approximately $500,000 held by the bank. The other local banks were not affected and their officials said they were prepared to meet any emergency. Washington, Jan. 8-The comptroller of the currency early today dispatched a national bank examiner to Pensacola, Fla., to look into the affairs of the First National Bank of Pensacola which failed to open its doors today. The last report on the condition of the bank showed its capital at $500,000, deposits $1,349,782; gross assets, $2,951,800.

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BANK OF PENSACOLA FAILS TO OPEN DOORS Controller of Currency Sends Examiner to Look Into Affairs of Concern. PENSACOLA, Fla., January S.-Failure of the First National Bank of Pensacola to open its doors for business today was explained by officials of the bank as due to the withdrawal yesterday of the accounts of a number of depositors. These withdrawals. it was pointed out. probably resulted from the fact that Crow, Rudolf & Co., Liverpool lumber brokers. has issued a statement of its inability to pay drafts for approximately $500,000 held by the bank. The statement issued this morning was as follows: "At the close of business yesterday we discovered that an unusual number of depositors had withdrawn their accounts in full. Following this. rumors that the affairs of the bank were in bad condition began to be circulated. Feared Run on Bank. "Realizing that these rumors probably would result in a run on the bank if it opened for business today, we decided to close its doors. "We have notified the controller of the currency and now are awaiting his directions. Withdrawals of accounts by depositors probably resulted from the fact that the bank held large drafts on Crew, Rudolph & Co. of Liverpool, and that this firm had issued advices that it could not pay these drafts. The bank, however, was making what we had every reason to believe and still believe would be adequate provision to protect these drafts. but the circumstances mentioned precipitated matters SO that the measures we have taken could not be made effectual in time." There was no excitement here over the failure of the First National to open this morning. The other local banks were not affected and their officials said they were prepared to meet any emergency.

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PENSACOLA BANK FAILURE PUZZLE Washington Waits for Details on Million Dollar Institution Which Suffered Run. WASHINGTON, Jan. 8.-The suspension of the First National Bank of Pensacola, Fla., was reported to the office of the Comptroller of the Currency to-day. The report of the bank's condition on October 21, 1913, shows its resources to have been $2,951,798. as follows: Loans and discounts, $1,343,344; U. S. Bonds to secure circulation and deposits, $590,400; premium on bonds, $6,500; bonds, securities. etc., $200,533; banking house, $114,168; other real estate, $15,000; due from banks, $519,146; cash, checks, etc., $136,707; and redemption fund, $25,000. The liabilities were divided as follows: Capital and surplus, $503,000; undivided profits, $17,835; circulating notes, $500,000; due from banks, $421,136; deposits, $1,349,782; cashiers' checks outstanding, $159,000, and deposits of U. S. disbursing officer, $145. "We are puzzled concerning the troubles of the bank." said Acting Comptroller of the Currency Fowler. "The only information now in our possession as to the bank's troubles is a telegram from President F. C. Brent, which states the bank was closed and asked that we send a representative to him. "I have instructed R. W. Goodhart, bank examiner, to leave Washington at once for Pensacola. I have also requested President Brent for further information, but have received no reply. I can hardly believe that the bank is insolvent and I am sure that the trouble is purely local."

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That the First National bank will be reopened by means of a consolidation of the closed institution with one of the other banks here, and that such a consolidation. If made, will be consummated not later than Saturday of this week, is the statement of Federal Bank Examiner S. O. Goodheart who was sent here by the comptroller of currency to take charge of the affairs of the First National bank. He said that such an amalgamation would result only from a cooperation of all the business people of the city, great personal sacrifices on the part of the dt. rectors and stockholders of the First National and added that the other banking houses of the city seemed willing to lend all aid possible toward bringing about an amicable settlement of the present unsettled financial conditions. MR GOODHEART TALKS A Journal representative four I Mr. Coodheart in his room at t' can or error Carlos hotel with Thomas an officer of the First Net her asked for a sis'er "We are working or or a can Ion of loral Cark local barks. I would dicate which of the local bar consolidation will be made wi it cause I would ather they would for themselves but I will say that both the other banks show an Inelination to assist in every way possible "The consolidation will result only from great personal sacrifices by the directors of the First National bank which they are willing to make and have so indicated to me The direct tors are also hopeful that every de positor will be paid in full and are working to that end as T3 didiy as possitle We have teen in the bank since 9 o'clock this morning and will ably RO back avain tonight You UIIderstood that the adjustment of the affairs of a closed bank means hard and constant work ALL MOVING STEADILY "Negotiations have reached a point." continued the examiner, "where a consolidation is very possible-you may say probable-and I want The Journal to encourage the idea of a consolidation, show that it will be best for all concerned, and create a sentiment that will cause the public to insist upon hat kind of arrangement which can be brought about only by the coopera. tion of everybody connected with the bank and the earnest and hearty supsort of the entire business community The other two banks show an indtcation to assist in every way possible. If the consolidation is effected the tank will be opened not later than Saturday." DEPOSITS AVAILABLE SOON. As soon as the amalgamation is brought about the funds of the depositors will be available. In case the bank should go to 11guidation. which does not seem probable from the remarks of Examiner Goodheart, receivers would not be appointed by the courts but by the comptroller of currency at Washington There is maintained by the government a corps of experienced receivers. It is not thought. however that it will be found necessary to call upon the government for the appointment of rereivers. The consolidation of the First National bank with one of the other banks here, which would prove the solution to the entire financial di:emma in which Pensacola now finds itself, seems to be almost certain, and that at a very early date.

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STATE BANK NOTES BEING PAID SLOWLY FAILURE OF FIRST NATIONAL HAS INTERFERED WITH COLLECTIONS BY STATE BANK RECEIVERS. According to W. Clyde Roberts, one of the receivers of the Pensacola State Bank, recently ordered closed by the State Comptroller, the recent failure of the First National Bank in Pensacola is seriously effecting collections of outstanding notes and other amounts due the defunct State Bank. Since the complete invoice of all assets, liabilities and physical property of the Pensacola S ate Bank was completed by the receivers, J. B. McNeill and W. C. Roberts, and filed with the clerk of the criminal court of record, the receivers have been busy collecting on all notes possible. As soon as sufficient funds have been received, Judge Kirke Monroe, of the criminal court of record, will be notified and he will declare the first dividend for the depositors, and as more money is collected other dividends will be declared from time to time.

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BANK FEARED RUN

Pensacola's Oldest Banking House Suspended Payment. The First National Bank, Pensacola's oldest banking house, is reported to have suspended payment because of the withdrawal of an unusual number of accounts in full and consequential rumors of weakness which found circulation and which foretold a run on the bank. Advices from a big Liverpool lumber firm that it could not pay about $500,000 in drafts upon which the First National Bank was an indorser, is given as a contributing cause of the suspension. A statement of the bank's condition at the close of business showed deposits, $1,645,850; cash in vaults, / $126,026; exchange, $306,461,

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THINK SUSPENDED BANK WILL SOON RESUME Pensacola. Jan. 22. Stockholders of the First National Bank held a joint meeting yesterday and appointed a committee to deal with a number of outside e-pitalists who are figuring upon taking over the bank in trouble and opening it 11D for business. \ number of outside bankers were at the conference which was held through the efforts of National Bank Examtner Good hart, who is of the opinion that the bank will soon be opened up and be ble to pay the depositors in full.

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A Third Bank For Pensacola

It is very evident to the business interests here that Pensacola needs three banks. At this time the community interest should center on the organization of an institution to take over the business of the First National bank. Regardless of who has or who has not stock and deposits in the distressed institution, it is to the interest of all Pensacolians that the million and a half dollars of deposits now tied up in the First National bank, be released at this time. A receivership means absolute and lengthy liquidation and heavy costs to the depositors. The organization of a bank and trust company to take over the business of the First National, as is now proposed, means more than many of us have hitherto realized. Liquidation of the First National bank, which would require years, may mean the ruin of many local men and businesses, who might, if a reorganization can be effected, work out all of their obligations speedily. In order that Pensacola's business interests may be conserved, all Pensacollans should give the movement to organize a. third bank their earnest moral and financial support, and the slogan should be "A Third Bank for Pensacola."

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THE TRUST COMPANY AND

THE FIRST NATIONAL BANK

Editor Pensacola Journal: The failure of two of our banks in rapid succession, together with the bankrupt cases following, is a matter that should cause every man to pause and study the reasons why such an economic misfortune should occur in a city so well situated, and full of advantages, which other cities are devoid of, and yet more prosperous and progressive.

We do not believe that the causes lie hidden in a problem too deep to be unearthed. We believe that they stand out as plainly as a torch light procession on the darkest kind of a night, and the features, instrumental in bringing about our present depression, may be resolved into evils which could have been avoided by proper vigilance and business caution.

What these evils are should be known by every business man, and to define them will require but a few brief sentences.

Easy credit, the extremes to which loans were carried, free from the proper safeguards to protect them: the inconsiderate way in which they were granted by the lender: the indifference of the borrower to the importance of redemption, and an extravagance equal to a Sultan of "Turkey;" stranded a city, whose prospects are as bright if not brighter than any city in the south.

The shock given our city by business maladministration, is not too severe for us to survive, and we regard it but a lesson taught by natural law for the benefit of man in his future progress, and we believe that the proposition to take over the responsibilities of the First National Bank, by forming a Trust Company, is the best that could be devised, and should receive the support of every depositor, business man, and citizen who has his city at heart.

We appeal then to the few doubting Thomases whose confidence has been shaken by the unfortunate suspension of one of the oldest banks in the state, not to oppose a movement which we think will redound to the interest of our city and all concerned.

While we know that it is natural for man to lose confidence in human enterprises when once injured, thereby, from bad management, we still cling to the determination of repairing the injury by a more rigid discipline in business methods, and a vigilance, which will restore a confidence greater than that practiced in the past, and which will place business on a sounder basis and a more perfect safety.

We stand then, squarely in favor of the Trust Company taking over the bank, resuming business, and saving an institution, which an opposition thereto, would be an evidence of weakness on our part, and which we should be ashamed to acknowledge.

B. J. GONZALEZ.

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PENSACOLA BANK PAYING IN PART Depositors in Defunct First National Recover Some of their Dough Pensacola, Feb. 27.- Within about a week the depositors of the suspended First National Bank will be in position to realize about 50 cents on the dollar of their claims against the defunct institution. R. W. Goodhart commenced to prove claims yesterday and as soon as about one thousand of the claims have been proven he will begin to issue receiver's certificates which will be transferable and upon which money may be borrowed. According to statements of local bankers the loan value of these certificates will be at least 50 cents on the dollar.

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That a trust company, with strong financial backing. is one of the new projects under consideration for Pensacola, became known yesterday afternoon, but from the information that could be gleaned last night the plans of the backers are yet in their embryo state and may not mature for several weeks to the point where any definite announcement can be made. J. D. C. Newton, Frank Chaffin and others of Milton, who are financially in a position, to put through such a proposition in Pensacola, were recently in Pensacola and it is understood, made an investigation of conditions and were impressed with the opening here for a trust company. Mr. Newton, when called over the long distance phone last night at his Milton home, confirmed the report that the proposition Is under construction, but that at the present time nothing definite could be given out for publication: He said, however, that he would be in Pensacola within a few days when he would possibly be in a position to make some statement. AFTER BANK BUILDINGS. It became known yesterday that some parties have opened negotiations for both the vacant bank buildings in this city, but it is not known what connection these offers have with the proposed trust company. One report was that the Milton men were afer the Pensacola State bank location, while another report in circulation was that parties from some other state were desirous of securing it. It became known last night that Receiver Goodhart had also been made an offer for the buildings and fixtures of the First National bank.

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ARGUMENTS ARE

HEARD IN SUIT

AGAINST BANK

JUDGE SHEPPARD OVERRULES DEMURRER AND ORDERS RECEIVER TO SHOW WHY $150,000 SHOULD NOT BE PRODUCED.

Judge Sheppard yesterday heard arguments in the case of H. G. DeSilva, as trustee of the Florida & Alabama Land Co., against R. W. Goodharts as receiver of the First National bank, in which the former seeks to compel the latter to turn over to him $150,000 which he alleges W. K. Hyer as president of the Florida & Alabama Land Co. paid to the bank on the personal accounts of officers of the land company.

The case came up on a demurrer filed and argued by W. A. Blount, in which it was sought to show that the petition of the trustee was not specific and insufficient grounds had been shown. Anderson & Beall and Judge E. C. Maxwell appeared for the trustee.

Judge Sheppard overruled the demurrer and ordered the receiver to show cause immediately why the money should not be turned over to the trustee for the benefit of creditors of the land company.

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NOTICE.

Sealed proposals for the purchase of the property known as the Banking House of the First National Bank of Pensacola, together with vault, furniture and fixtures of the said First National Bank will be received up to, and including 12:00 O'clock noon, on April 25th, 1914. Prospective bidders are requested to send their bids in a sealed envelope, marked "Proposed Bid for First National Bank Building, Pensacola, Florida." enclosing this envelope in another envelope, addressed to R. W. Goodhart, Receiver of the First National Bank, Pensacola, Florida.

The Government reserves the right to refuse any and all bids.

Prospective purchasers are requested to be present in the office of the Receiver, in the First National Bank Building, at 1:00 o'clock noon. on April 25th, 1914, to witness the opening of these bids.

R. W. GOODHART. Receiver of the First National Bank of Pensacola, Florida. 349-A5apr-td

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SUSPENSION OF FIRST NATIONAL WILL BE PROBED United States Court Convenes Tomorrow, Judge Sheppard Presiding. ACCOUNTANTS AND ATTORNEYS CONFER District Attorney Love Ar rives in the City and Yesterday Afternoon Had Long Conference With Two Expert Accountants Who Have Been Going Over the Books of Suspended Bank.

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Four Men Are Indicted For Wrecking a Bank Pensacola, Fla., Aug. 4.-A federal grand jury here today returned indictments against W. K. Hyer, former president; W. H. Knowles, former vice president; Thomas W. Brent, former assistant cashier of the First National bank, and W. S. Keyser, president of the Keyser-Muldon Lumber companhy, charging them with aiding in misapplication of funds of the First National bank which suspended here some time ago. Knowles' bond was given at $10,000, and the others at $8,000 each. All gave bond.

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W. N. ROBERTS

DIES AFTER A SHORT ILLNESS

ASSISTANT CASHIER OF BANK OF COMMERCE SUCCUMBS IN MO- BILE FOLLOWING AN OPERA- TION.

Telegrams received in the city last night announced the death in Mobile of W. N. Roberts, assistant cashier of the National Bank of Commerce. Death occured shortly after 6 o'clock last night and followed an operation which was performed in the Mobile Sanitarium Sunday a week ago. Mrs. Roberts and children were in Mobile when the death occured and will accompany the remains to this city, arriving this morning at 6:20 o'clock.

Mr. Roberts had been suffering from a complication of stomach troubles for some weeks and went to Mobile a little over a week ago. There it was found necessary to operate and up to until a day or so ago reports were that Mr. Roberts was improving. However, his condition grew worse and death occurred early last night.

Mr. Roberts was a native of the city in which he died, but had resided in Pensacola since 1885. He was connected with the First National bank in various capacities and when it suspended operations he was the assistant cashier.

The deceased had many friends in Pensacola and the surrounding territory. He was popular with his associates as well as the general public and many will regret to learn of his death. He was 57 years of age and is survived by a wife and five children, three sons and two daughters, besides a number of other relatives.

The hour and date of the funeral will be announced later.

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BANK OFFICERS REINDICTED

Federal Grand Jury Takes Action In The Pensacola Bank Case

Pensacola. - Two officials and two former officials of the suspended First National Bank here were reindicted by a local United States grand jury on the charge of misapplying the funds of the institution.

The defendants are William H. Knowles, vice president; Thomas W. Brent, assistant cashier; W. K. Hyer, former president, and William S. Keyser, a former director.

Attorneys for the defendants attacked the previous indictments, alleged that the grand jury returning them had been drawn illegally. No decision of their validity has yet been made, but the government decided to ask for new true bills.

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DEPOSITORS IN MEETING WITH BANK RECEIVER DISCUSSED AFFAIRS OF THE SUSPENDED FIRST NATIONAL BANK AT MEETING ON INTENDENCIA STREET. A meeting of Receiver W. H. Milton and the committee representing depositors of the First National bank was held last night at the new quarbers of the receiver on West Intendencia street, when matters were discussed regarding the liquidation of the suspended bank's assets. The depositors were well represented, a number of prominent citizens attending the meeting, which continued until a late hour.

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FOR SALE-The following shares of stock: 98 shares Barcelona St. Wharf Co., 2 shares Ferry Pass Inspectors & Shippers Assn., also 240 residence lots in Hazelhurst, one lot and two-story dwelling on Bayou Chico: 15,400 acres pine land, Santa Rosa county, 100 shares of stock in the Interstate Casualty Company, one lot in the Town of Andalusia, Alabama, and a number of lots in the New City Tract and East Pensacola: 2 residence lots in Montgomery, Ala., $25,000.00 bonds of Pensacola Suburban R. R. $23,000.00 G. F. & A. R. R. Co. bonds: 58 shares of preferred stock G F. & A., 174 shares of common stock G. F. & A. 140 lots in Highland Park. 53½ acres land West of Country Club, and South of the hard road. 128-10 acres of land facing Brent road. 87 acres of land in Oakfield Survey adjoining the Campbell homestead. W. H. Milton, receiver Firts National Bank, 11 West intendencia street, Pensacola, Fla. 1may

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FOR SALE-The following sharer of stock: 98 shares Barcelona St. Whar! Co., 2 shares Ferry Pass Inspectors & Shippers Assn., also 240 residence lots in Haselhurst, one lot and two-story dwelling on Bayou Chico: 15,400 acres pine land, Santa Rosa county, 100 shares of stock in the Interstate Casualty Company, one lot in the Town of Andalusia, Alabama, and a number of lots in the New City Tract and East Pensacola: 2 residence lots in Montgomery, Ala., $25,000.00 bonds of Pensacola Suburban R. R. $25,000.00 G. F. & A. R. R. Co. bonds; 58 shares of preferred stock G F. & A., 174 shares of common stock G. F & A 140 lots in Highland Park. 58½ acres land West of Country Club, and South of the hard road. 128-10 acres of land facing Brent road. 87 acres of land in Oakfield Survey adjoining the Campbell homestead. W. H. Milton, receiver Firts National Bank. 11 West intendencia street, Pensacola. Fla. imay

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FOR SALE-The following share of stock: 98 shares Barcelona St. Whart Co., 2 shares Ferry Pass Inspectors & Shippers Assn., also 240 residence lots in Hazelhurst. one lot and two-story dwelling on Bayou Chico: 15,400 acres pine land, Santa Rosa county, 100 shares of stock in the Interstate Casualty Company, one lot in the Town of Andalusia, Alabama, and a number of lots in the New City Tract and East Pensacola; 2 residence lots in Montgomery, Ala., $25,000.00 bonds of Pensacola Suburban R. R. $22,000.00 G. F. & A. R. R. Co. bonds; 58 shares of preferred stock G F. & A., 174 shares of common stock G. F. & A. 140 lots in Highland Park. 53½ acres land West of Country Club, and South of the hard road. 12 8-10 acres of land facing Brent road. 87 acres of land in Oakfield Survey adjoining the Campbell homestead. W. H. Milton, receiver Firts National Bank. 11 West intendencia street. Pensacola. Fla. 1may

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FOR SALE--The following share of stock: 98 shares Barcelona St. Whart Co., 2 shares Ferry Pass Inspectors & Shippers Assn., also 240 residence lots in Hazeltvrst, one lot and two-story dwelling on Bayou Chico: 15,100 acres pine land. Santa Rosa county, 100 shares of stock in the Interstate Casualty Company, one lot in the Town of Andalusia, Alabama, and a number of lots in the New City Tract and East Pensacola: 2 residence lots in Montgomery, Ala., $25,000.00 bonds of Pensacola Suburban R. R. $3,000.00 G. F. & A. R. R. Co. bonds; 58 shares of preferred stock G F. & A., 174 shares of common stock G. F. & A 140 lots in Highland Park. 53½ acres land West of Country Club, and South of the hard road. 128-10 acres of land facing Brent road. 87 acres of land in Oakfield Survey adjoining the Campbell homestead. W. H. Milton, receiver Firts National Bank. 11 West intendencia street. Pengacola. Fla Imay

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FOR SALE--The following shares of stock: 99 shares Barcelona St. Wharf Co., 2 shares Ferry Pass Inspectors & Shippers Assn., also 240 residence lots in Hazelhurst, one lot and two-story dwelling on Bayou Chico: 15,400 acres pine land, Santa Rosa county, 100 shares of stock in the Interstate Casualty Company, one lot in the Town of Andalusia, Alabama, and a number of lots in the New City Tract and East Pensacola; 2 residence lots in Montgomery, Ala., $25,000.00 bonds of Pensacola Suburban R. R. $23,000.00 G. F. & A. R. R. Co. bonds; 58 shares of preferred stock G F. & A., 174 shares of common stock G. F. & A. 140 lots in Highland Park. 53½ acres land West of Country Club, and South of the hard road. 12 8-10 acres of land facing Brent road. 87 acres of land in Oakfield Survey adjoining the Campbell homestead. W. H. Milton, receiver Firsts National Bank. 11 West Intendencia street, Pensacola, Fla.

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W. H. Milton Refuses to Confirm Washington News About Him. MAKE STATEMENT WITHIN DAY OR TWO Further Developments Are Awaited With Considerable Interest. SPECIAL TO THE JOURNAL. Marianna, Fla., Aug. 14.-A report reached this city tonight that Hon. W. H. Milton has resigned the receivership of the First National Bank of Pensacola. Mr. Milton, being a resident of Marianna, a representative of The Journal called him over the telephone and asked for a statement on the subject. This, however Mr. Milton declined to give at this time, stating that he would make a statement within the next day or two. He declined to either confirm or deny the report, which is of great interest to the people of this city and section, owing to the prominence of Mr. Milton and of the institution of which he has been receiver for more than two and a half years. Further developments in the matter will be awaited with interest. Mr. Milton just recently has declared a five per cent dividend as receiver on the deposits of the defunct bank, making a total of sixty per cent thus far returned to the depositors.