gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9853c75ee08125ab
Response Measures
None
Description
Closure resulted from large embezzlement/shortage by the president; receiver appointed.
Events (2)
1.June 11, 1903Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large shortage/embezzlement by president T. J. Cornwell (~$230k–$280k) discovered, prompting suspension.
Newspaper Excerpt
With President T. J. Cornwell in parts unknown and short nearly $280,000, the Bessemer Savings Bank ... has closed its doors and asked for a receiver.
Source
newspapers
2.June 12, 1903Receivership
Newspaper Excerpt
Judge Senn ... named George H. Stevenson as receiver for that bank ... on petition of the depositors of the savings bank.
Source
newspapers
Newspaper Articles (24)
1.June 11, 1903The Montgomery AdvertiserMontgomery, AL
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Admits That He is Solely to Blame. THEINSTITUTION WRECKED President Chooses Flight to Work in Mines. Says That He Lost the Money Endeavoring to Make Back $42,000 Which He Lost in a Legitimate Transaction. Birmingham, June 10.-With President Thomas J. Cornwell in parts unknown and short nearly $280,000, the Bessemer Savings Bank. one of the strongest institutions in the district, will close its doors and ask for a receiver tomorrow morning. President Cornwell, who was a member of the late Constitutional Convention, and one of the most prominent men in the State. left behind him three notes explaining the shortage. In one, addressed to the public, he Bays that he lost the money trying to make back $42,000 he lost in in a legitimate business transaction. He further exonerates all the officers of the bank and takes the whole blame on himself. In a letter to his wife, which she was Instructed to open this morning, he stated that he would not commit suicide, but would let her know if he did. In a third letter, addressed to Cashier Cockrill, he states that he had nothing left for him to do but "wander on the face of the earth, or become a convict in the State mines." Barr Failed to Get Money. The shortage was not discovered until this morning, when President Barr of National the First for Bank $800 of Birmingham, the window presented checks at of the Bessemer bank and later stated that the bank had refused payment on them. The officers were surprised, and an investigation followed, showing the shortage. President Cornwell left Sunday and stated that he was going to Walker County to dispose of some land and get not seen not banks. The some mingham The money. shortage He will has Bank been affect of Commerce the since. Bir- to of Bessemer has made arrangements borrow all the money it needs in case of B run tomorrow morning when it opens' their doors, so no further trouble is expeeted in any of the banks. It is understood that a great part of the money was the deposits of the merchants and miners, together with employes of the rolling mills, furnaces and Industrial plants of Bessemer. The city of Bessemer loses $17,000. The bank will probably not be able to make a payment of more than a very small percentage on its deposits. The bank was organized in 1891 with a capital stock of $100,000 and had deposits of about $260,000.
2.June 11, 1903The Birmingham Age-HeraldBirmingham, AL
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Exonerates the Cashier and All Others From Blame Placing the Entire Responsibility Upon Himself. Affair Creates Intense Sensation in Bessemer and Many of the Leading Citizens are Very Heavy Losers. ESSEMER, June 10.-(Special.) The Bessemer Savings bank of this place, capitalized at $100,000, has suspended business, and its president, Capt. T. J. Cornwall, one of the best-known men in the state, is a wanderer and fugitive from justice, leaving a shortage of over $200,000 behind him. Nothing in Bessemer's history and the Birmingham district, perhaps, has caused the sensation and surprise as the closing of this financial institution.
3.June 12, 1903Bismarck Daily TribuneBismarck, ND
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Article Text
Birmingham, Ala., June 12.-The doors of the Bessemer Savings bank and the Bank of Commerce, both 10cated at Bessemer, Ala., failed to open during the morning as the result of the shortage and supposed flight of T. J. Cornwell, president of the first named bank. At 2 a. m. Judge Senn of the city court, on petition of the depositors of the savings bank. named George H. Stevenson as receiver for that bank and on petition of the directors of the Bank of Commerce, in which Cornwell was interested, appointed Tom O. Smith receiver of the latter bank. None of the Birmingham banks are affected by the failure. The petition for a receiver in the case of the Savings bank sets forth that the liabilities are $235,000, of which about $230.000 was deposits.
4.June 12, 1903Rock Island ArgusRock Island, IL
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PRESIDENT GONE: BANKS ARE CLOSED And Institutions Face a Big Shortage in the Cash Balance. Girmingham, Ala., June 12.-The doors of the Bessemer Savings bank and the Bank of Commerce, both Iocated at Bessemer, Ala., failed to open as the result of the shortage and supposed flight of T. J. Cornwell, president of the first-named bank. At 2 a. m. this morning Judge Senn, of the city court, on petition of the depositors of the savings bank, named George H. Stevenson as receiver for that bank, and on petition of the directors of the Bank of Commerce, in which Cornwell was interested, appointed Tom O. Smith receiver of the latter bank. None of the Birmingham banks are affected by the failures. The petition for a receiver in the case of the savings bank sets forth that the liabilities are $235,000, of which about $230,000 was deposits. The assets are placed at $35,000. The liabilities of the Bank of Commerce are $43,000 and assets $67,000.
5.June 12, 1903Evening StarWashington, DC
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ALABAMA BANKS CLOSE. Shortage and Supposed Flight of President is Explanation. BIRMINGHAM, Ala., June 12.-The doors of the Bessemer Savings Bank and the Bank of Commerce, both located at Bessemer, Ala., are closed as the result of shortage and supposed flight of T. J. Cornwell, president of the first-named bank. Judge Senn of the city court, on petition of the depositors of the savings bank, named George H. Stevenson as receiver for that bank, and on petition of the directors of the Bank of Commerce, in which Cornwell was interested, appointed Tom O. Smith receiver of the latter bank. None of the Birmingham banks is affected by the failure. The petition for a receiver in the case of the savings bank sets forth that the liabilities are $235,000. of which about $230,000 was deposits. The assets are placed at $35,000.
6.June 12, 1903Evening JournalWilmington, DE
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ACCOUNTS SHORT $230,000 DOG Bessemer, Ala., Bank President DIS* appears After Confessing. Birmingham, Ala., June 12.-With President T. J. Cornwall in parts unknown and short nearly $230,000, the Bessemer Savings Bank, one of the strongest institutions in the district, closed its doors and asked for a receiver. President Cornwall left three notes explaining the shortage. In one, addressed to the public, he says that he lost the money trying to make back $42,000 he lost in a, legitimate business transaction. He further exonerates all the officers of the bank and takes the whole blame on himself. In a letter to his wife he .stated that he would not commit suicide. In a third letter, addressed to Cashier Cockrell. he states that he had nothing left for him to do but "wander on the face of the earth or become a convict in the mines."
7.June 13, 1903The Montgomery AdvertiserMontgomery, AL
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REWARD IS OFFERED STATE WILL GIVE $300 FOR CAPTURE OF CORNWELL. Citizens of Bessemer Appealed to Governor for Aid in Apprehending the Absconding Presi-dent of Savings Bank. Governor Jelks yesterday offered a reward of $300 for the arrest and return to Jefferson County of T. J. Cornwell. the absconding President of the wrecked Bessemer Savings Bank. The reward was offered at the urgent request of the Mayor, Board of Aldermen and many prominent citizens of Bessemer. The city of Bessemer is deeply stirred over the enormous defalcation of Cornwell, The citizens are determined to have him arrested and brought to trial if it can be accomplished. To this end they have invoked the aid o fthe State, and the Governor has extended It. Cornwell is alleged to have embezzled $235,000 of the bank's funds. In fact, it is said he almost wiped out the entire assets of the bank. The wrongdoing of Cornwell has brought financial panic to a great part of the business community and to many laboring people of Bessemer. Cornwell was one of the leading citizens of Bessemer, having been one of the representatives of Jefferson County in the Constitutional Convention. Beyond the fact that Cornwell had dealt more or less extensively in futures and stocks, it is not known how he made way with the large sum he is said to have embezzled. When he left Bessemer Friday, Cornwell said that he was going to Walker County to look after the sale of some lands. He is said to have bought a ticket Friday night for Washington. Every effort will be made to catch the absconding bank President before he gets out of the country. Mayor T. T. Huey of Bessemer, who joined in the request to the Governor for the issuance of the offer of reward, was an officer of the wrecked bank.
8.June 17, 1903New Ulm ReviewNew Ulm, MN
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Bank Wrecked. Birmingham, Ala., June 11.-With President T. J. Cornwall in parts unknown and short nearly $280,000, the Bessemer savings bank, one of the strongest institutions in the district, has closed its doors and asked for a receiver.
9.June 18, 1903Warren SheafWarren, MN
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Article Text
Bank Wrecked. Birmingham, Ala., June 11.-With President T. J. Cornwall in parts unknown and short nearly $280,000, the Bessemer savings bank, one of the strongest institutions in the district, has closed its doors and asked for a receiver.
10.June 18, 1903The Manitowoc PilotManitowoc, WI
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Article Text
Bank Wrecked. Birmingham, Ala., June 11.-With President T. J. Cornwall in parts unknown and short nearly $280,000, the Bessemer savings bank, one of the strongest institutions in the district, has closed its doors and asked for a receiver.
11.June 19, 1903The Aberdeen DemocratAberdeen, SD
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Two Banks Suspend. Birmingham, Ala., June 12.-The Bessemer Savings bank and the Bank of Commerce at Bessemer, Ala., suspended business Thursday as the result of the shortage and flight of T.J. Cornwell, president of the former. George H. Stevenson and Thomas O. Smith were appointed receivers respectively. The savings bank's liabilities are placed at $235,000, $230,000 being deposits, and assets at $35,000. The liabilities of the Bank of Commerce are $43,000 and assets $67,000.
12.June 19, 1903Eagle River ReviewEagle River, WI
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LOOTS BANK; SHORT $280,000. Alabama Institution Is Wrecked and Its President Flees. With President T. J. Cornwall in parts unknown and short nearly $280,000, the Bessemer Savings Bank, at Bessemer, Ala., one of the strongest institutions in the district, has closed its doors and asked for a receiver. President Cornwall left three notes explaining the shortage. In one, addressed to the public, he says he lost money trying to make back $42,000 he lost in a legitimate business transaction. In a letter to his wife he stated that, he would not commit suicide, but would let her know if he died. In a third letter, addressed to Cashier Cockrill, $ he states that he had nothing left to do but "wander on the face of the earth or become a convict in the State mines." The bank will probably not be able to meet a payment of more than a very small percentage of its deposits. The bank was organized in 1891 with a capital stock of $100,000, and had deposits of about $260,000.
13.June 19, 1903The Birmingham Age-HeraldBirmingham, AL
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BESSEMER. Depositors Still Have Hopes of Recovering Their Money. Bessemer, June 18.-(Special.)-As the investigation of the affairs of the Bessemer Savings bank continues the prospects of the depositors grow brighter. It is now belleved by many that the depositors will get at least 50 per cent of their money back, and this is about 40 per cent better than at first was thought. The whereabouts of President T. J. Cornwell, whose flight created the monumental sensation of Bessemer's history, remains a profound mystery. The board of mayor and aldermen will hold a special meeting tomorrow night. The nature of the business to come up is not fully known, but it is believed that the loss by the city of 17,000 through the failure of the Bessemer Savings bank and the suspension of work on the city sewerage system, one of the results of this loss, will be given consideration. The proposition to borrow $10,000 to tide the city through the emergency will also come up, in all probability. The graduating class of the Bessemer high school was entertained tonight by Miss Bessie Spencer. Miss Otis Shipman entertained yesterday at progressive anagrams, the affair being in honor of her sister, Mrs. Rogers. The many guests were entertained in the most enjoyable manner. The first prize, a handsome chocolate pot, was won by Miss Henrietta Morgan; the second, a hand-painted handkerchief, by Mrs. M. I. Boots. Miss Julia Houston drew the consolation. Elaborate refreshments were served.
14.June 19, 1903The Ely MinerEly, MN
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Two Banks Suspend. Birmingham, Ala., June 12.-The Bessemer Savings bank and the Bank of Commerce at Bessemer, Ala., suspended business Thursday as the result of the shortage and flight of T.J. Cornwell, president of the former. George H. Stevenson and Thomas O. Smith were appointed receivers respectively. The savings bank's liabilities are placed at $235,000, $230,000 being deposits, and assets at $35,000. The liabilities of the Bank of Commerce are $43,000 and assets $67,000.
15.June 20, 1903Watertown RepublicanWatertown, WI
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Two Banks Suspend. Birmingham, Ala., June 12.-The Bessemer Savings bank and the Bank of Commerce at Bessemer, Ala., suspended business Thursday as the result of the shortage and flight of T.J. Cornwell, president of the former. George H. Stevenson and Thomas O. Smith were appointed receivers respectively. The savings bank's liabilities are placed at $235,000, $230,000 being deposits, and assets at $35,000. The liabilities of the Bank of Commerce are $43,000 and assets. $67,000.
16.July 1, 1903The Montgomery AdvertiserMontgomery, AL
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Total $50,292.30 The report contains an itemized list of all the real and personal property, notes and other assets owned by the bank. Also a list of the accounts. Receiver Smith has also filed a bill in the City Court against the Bank of Commerce, T. R. Fulton and J. S. Winters. in which he prays that the court may take jurisdiction of the trust made by the deed of assignment and will direct and decree the management and administration of the execution thereof. and that an order may be made requiring all creditors of the defendant corporation to file their claims in the City Court within a time fixed by the court. Also that an order be granted authorizing the receiver to convert all the property of the defendant corporation into cash and that the rights, equities and preferences of all creditors of the defendant corporation, shall be settled by decree of the court, and distribution made of the assets of the defendant corporation. This bill was the result of the various claims of priority which have been made by different individuals and corporations who are creditors of the Bank of Commerce. The Bank of Commerce of Bessemer went into the hands of a receiver immediately after the flight of Captain T. J. Cornwell, president of the Bessemer Savings Bank, and the collapse of that institution. From the report of the receiver it would appear that the condition of the bank is such that all claims can be paid off in full, as the assets exceed the liabilities $33,305.39.
17.March 27, 1904The Montgomery AdvertiserMontgomery, AL
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# Contests Sale of Property.
In the second division of the City Court George H. Stevenson, receiver of the Bessemer Savings Bank, is contesting the sale of several hundred acres of Walker County coal property which took place about a month ago by order of the court. The land was sold to Murray Cannon at $7 per acre and Mr. Stevenson contends that it was worth $9 an acre.
18.March 29, 1904The Montgomery AdvertiserMontgomery, AL
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Coal Lands Case. Judge Senn, of the City Court, took under consideration the case of G. H. Stevenson, receiver for the Bessemer Savings Bank against Murray Cannon, in which the sale of the Walker County coal lands is under consideration. The lands we.e sold some time ago at $7 an acre. The receiver prays that this sale be not confirmed, as he contends the lands are worth more,
19.January 10, 1905The Birmingham Age-HeraldBirmingham, AL
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# Suits Filed.
A number of suits were called yesterday in the city court of Birmingham in the matter of George H. Stevenson, receiver of the Bessemer Savings bank vs. certain creditors of the bank. In each instance Judge Charles A. Senn entered a judgment for the plaintiff. The amounts sued for, which were on notes, will aggregate something over $1000.
20.April 19, 1905The Birmingham Age-HeraldBirmingham, AL
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BESSEMER COUNCIL MET LAST NIGHT THE NEW SEWER SYSTEM IS TO BE COMPLETED AT AN AD-, VANCED PRICE-NEW FIRE STATION PROPOSED. Bessemer, April 18.-(Special.)-The regular session of the city council met tonight, with Mayor Huey in the chair. Councilmen Moore, Randle, Dennis, Simmons, Hurd and Mundes were present. The session was a short one, but several items of small importance were disposed of. Ordinance No. 11, providing for sidewalk extensions and improvements, was taken up and after a sn 014 cussion was repealed. W. J. Long was present and stated that after the failure of the Bessemer Savings bank and the suspension of work on the Bessemer sewerage system he had found it impossible to continue the work under the old contract on account of the great advance in the cost of labor. He stated that he was willing to carry out the contract and finish the work if the price was increased. The council agreed to pay Mr. Long for the work, and the construction of the system will be resumed at once. Under the head of petitions and complaints the council was called upon to consider a petition from the citizens of East Bessemer asking for a fire station in that section of the town. The matter was referred to the fire department committee. Ordinance No. 19, providing for the changing of the names of Seventeenth, Eighteenth and Nineteenth streets, was introduced and passed on its first reading. Also, ordinance No. 14, providing for the changing of the names of Nineteenth and Twentieth streets to Second and Third avenues, was introduced and passed on its first reading. There being no further business, the council adjourned.
21.May 19, 1905The Montgomery AdvertiserMontgomery, AL
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Neat Sum Distributed. Receiver Stevenson of the Bessemer Savings Bank today distributed quite a sum to the depositors of the former financial institution at Bessemer. The open depositors of the former bank receive 66 2-3 per cent of their deposits and the time or saving depositors 40 per cent. The affairs of the bank are being settled as rapidly as possible by the receiver.
22.July 11, 1905The Montgomery AdvertiserMontgomery, AL
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Property Transferred. In compliance with an order of the City Court issued by Judge Charles Senn, Tom O. Smith, receiver and assignee of the Bank of Commerce, deeded to George H. Stevenson, receiver of the Bessemer Savings Bank, certain property owned by the bank of which he is receiver and assignee.
23.December 18, 1910The Birmingham Age-HeraldBirmingham, AL
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Receiver's Final Dividend The reference in yesterday's Age-Herald to the Bessemer Bank and Trust company was an error. There is no such company. The notice referred to the Bessemer Savings bank, which was placed in the hands of a receiver in 1903. Under a recent order of court Receiver G. H. Stevenson will now pay a final dividend and obtain his discharge.
24.December 22, 1910The Birmingham Age-HeraldBirmingham, AL
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Blake Renders His Report Sam M. Blake, clerk and register of the city court, has rendered his report on the receivership of George H. Stevenson, receiver of the bankrupt Bessemer Savings bank. Clerk Blake reports that the report of Receiver Stevenson is true and correct and up-to-date. The rendering of this report winds up the receivership of the bank.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
