Palatka Bank & Trust Company (Palatka, FL)

Episode Information

Episode UID
63024371519
Episode Type
Suspension → Reopening
Bank Type
trust
Bank ID
6302437 routing
Routing Number
63-0243
Start Date
July 15, 1926
Location
Palatka, Florida (29.649, -81.638)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
81afb1d83066efd2

Response Measures

None

Events (2)
1. July 15, 1926 Suspension
Cause
Correspondent
Cause Details
Closed after bankruptcy/receivership proceedings involving its correspondent/financing agent Bankers Trust Company of Atlanta.
Newspaper Excerpt
PALATKA, July 15.—(A.P.)—The State Bank of Palatka closed its doors today following information of bankruptcy proceedings filed by several Florida and Georgia banks against the Bankers Trust Company of Atlanta, of which the Palatka institution was a client.
Source
newspapers
2. October 4, 1926 Reopening
Newspaper Excerpt
Palatka Bank and Trust company, Palatka, Oct. 4, 1926; (listed among banks which have reopened).
Source
newspapers

Newspaper Articles (4)
1. July 16, 1926 New Britain Herald New Britain, CT
Article from New Britain Herald, July 16, 1926

Click image to open full size in new tab

Article Text

GEORGIA BANKER TAKES OWN LIFE (Continued from First Page) total number that have suspended operations this week to 83 in the two states. The state banking department attributed their closings also to the bankruptcy proceedings of the Bankers Trust company. Petition for a receivership was brought several days ago in superior court here where a board of receivers was designated and a temporary injunction granted restraining officers of the company from altering in any manner the status of the banks. The petition was brought by the bank of Umatilla, Fla. Yesterday the federal court assumed jurisdiction on the plea of four Atlanta creditors. Former Governor Hugh M. Dorsey and J. K. Ottley, president of the Fourth National Bank, were appointed receivers for the company. The state banking department said that many of the banks that closed had only temporarily ceased business pending reorganization and rearrangement of financing after the bankruptcy proceedings of their fiscal agents. The latest banks reported closed include the State Bank of Palatka, Fla., and the Bank of Lake Helen, Fla. 13 Banks Closed The 13 banks closing announced today are: Bank of East Point; Exchange Bank of Sycamore; Peoples' Bank of Soperton; Commerce Bank and Trust company; Bank of Adairsville; Farmers and Merchants' Bank at Rebecca; Merchants and Planters' Bank at Villa Rica; Merchants and Farmers' Bank at Sylvester; Bank of Pineview; Merchants and Farmers' Bank at Tennille; Turner County Bank at Ashburn; Bank of Stockbridge, and Merchants and Planters' Bank, Whigham. Officials of the state banking department pointed out that virtually all of the Georgia banks that have closed were of the Georgia Trust company chain. The Bankers' Trust company, they said, was a corporation and not under the supervision of the state banking department. The banks themselves, however, Judge Geille Park, of Macon, chief counsel for the Georgia Bankers' association, said, are under the jurisdiction of the state banking department and not within that of the federal court.

2. July 16, 1926 The Tampa Tribune Tampa, FL
Article from The Tampa Tribune, July 16, 1926

Click image to open full size in new tab

Article Text

REJECTION OF CHECKS ON FLORIDA BANKS IS ENDED BY GOVERNMENT (Continued from Page 1) bank, Cornelia, $40,000 and $734,429.22; Bank of Lula, $15,000 and $14,273.90; Bank of Cassville, $15,000 and $65,453.27; Bank of Williamson, $25,000 and $178,812.11, and the Cornelia bank, Demarest, whose financial statement was not available. The four Florida banks reported closed were the Citizens Bank of Eustis, Bank of Mount Dora, Bank of Tavares and the Bank of Umatilla, each of which through notices posted on their doors announced that they were "closed temporarily for the protection of depositors." The Bank of Umatilla Tuesday instituted a suit against the Bankers Trust Company, applying for a receivership for the company and obtaining a temporary injunction to prevent officials of the company from altering in any manner the status of the chain of banks for which it acted as financing agent. Admit Conditions In its suit, the Umatilla bank alleged that the Bankers Trust Company had procured several hundred thousand dollars from the bank and distributed the money among various banks of Georgia and another bankers financing company in Florida. The bank alleged officials of the company had admitted their inability to pay, and charged the Bankers Trust Company with being insolvent. Atlanta creditors of the Bankers Trust Company intervened today and the federal court assumed jurisdiction of the case, Judge Samuel Sibley announcing he would appoint a receivership for the company. U. S. Intervention Resisted Florida creditors resisted federal intervention by endeavoring to show that the company conducted an insurance business, insuring the deposits of member banks and that it was not under federal jurisdiction. The Umatilla bank joined in seeking to forestall federal intervention. Atlanta creditors charged that the company had committed acts of bankruptcy when it "preferred certain clients over others when the bank was insolvent." They also cited the receivership granted in superior court. Judge Orville Park, of Macon, general counsel for the Georgia Bankers Association, testified that the company, being a trust company, was not amenable to the state banking department and could not conduct a banking business without an amendment to its charter. The trust company served as financial agent for 120 banks, Paul J. Baker, its treasurer, told the court, but did not receive deposits subject to check. Forty-one banks closed their doors yesterday after the receivership was sought for the Bankers Trust Company. Five banks closed on Tuesday and two on Monday. Federal Receivers Former Governor Hugh M. Dorsey and J. K. Ottley, of the Fourth National Bank, Atlanta, were designated as receivers for the Bankers Trust Company by Judge Samuel H. Sibley of the north Georgia district federal court here today. T. R. Bennett, director of the state banking department, declared that the designation of Mr. Dorsey and Mr. Ottley, who is president of the Fourth National Bank, as receivers had "added confidence to the situation. The two were designated as receivers by Judge Sibley after his decision in federal court to assume jurisdiction in the bankruptcy proceedings brought against the Bankers Trust Company by Atlanta creditors. The statement by Mr. Bennett declared the atmosphere was "clearing." "While several additional banks closed their doors today," he said, "the number is much less than was anticipated. One bank which closed yesterday wired this morning to disregard the notice as it found that it was able to carry on its business. Another reported as closed advised that it had effected a consolidation with a neighbor bank and is caring for all of its customers. Several others which advised the department that they would not be able to continue have assured us today that they would be able to do so. All Are Member Banks "Practically all of the banks which have suspended in the last five days were connected with the Bankers Trust Company, and the failure of the trust company occasioned their suspension. When it is known that the trust company affairs are being properly administered, the banks and their customers will have a new feeling of security. "I repeat what I said yesterday that there is nothing wrong with Georgia and her financial institutions. The present flurry is due entirely to causes originating outside the state and does not indicate any weakness on the part of Georgia banks. But for the difficulties of the Bankers Trust Company, not a bank in Georgia would have closed. "The trouble with the present situation is not with the banks, it is with the people. Calmness, a sense of proportion and a realization of the fact that the banks are all right, and that the present trouble was not occasioned by local conditions, and all will be well again. Agitators and hysterical people are doing incalculable harm. Let Georgia's sober common sense resume its sway and the flurry will soon be over and many of the banks will begin again to serve their communities." Palatka Bank Closes PALATKA, July 15.—(A.P.)—The State Bank of Palatka closed its doors today following information of bankruptcy proceedings filed by several Florida and Georgia banks against the Bankers Trust Company of Atlanta, of which the Palatka institution was a client.

3. July 16, 1926 The Owensboro Messenger Owensboro, KY
Article from The Owensboro Messenger, July 16, 1926

Click image to open full size in new tab

Article Text

Palatka Bank Closes. Gainesville, Fla., July 15. The State Bank of Palatka, at Palatka closed its doors today following of bankruptcy proceedings filed against the Bankers' Trust company of Atlanof which the Palatka institution was client. H. Milligan, president, stated over long distance telephone tonight that the closing was not OC. casioned by of funds by depositors and that the situation is temporary. The bank reopen he when $35,000 of funds outstanding with the Bankers' Trust and other banks is returned. company

4. June 1, 1927 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, June 1, 1927

Click image to open full size in new tab

Article Text

FIRST AMERICAN HERE ADDS GRATIFICATION Twenty-five Banks Closed In State Are Reopened In Last Nine Months BANK OPENS Tallahassee, May 31—AP.—Authority has been granted the People's Bank, of St. Cloud to reopen tomorrow, it was announced today at the state banking department. The bank suspended operations sometime ago. By the Associated Press Tallahassee, May 31.—Gratification is being expressed by the state banking department over the rapid succession of bank reopenings taking place over Florida. Reopening of the Bank of Orange and Trust company, of Orlando, and the First-American Bank and Trust company, of West Palm Beach, the latest of the institutions to announce a resumption of business was received with satisfaction here by the banking department officials. The successive reopenings, it was declared, has been due largely to cooperative efforts extended among banking department officials and heads of the institutions, and to an excellent spirit prevailing among the public. Particularly without the latter, such progress could not be accomplished, it was stated. Since August, 1926, twenty-five banks which had previously suspended, have reopened, according to a revised list compiled by banking department heads. Two other institutions reopened, and later closed again. Following is a list of the reopened banks of the state, their location, and the date of their reopening: Citizens Bank of Bushnell, Bushnell, Feb. 1, 1927; Delray Bank and Trust company, Delray, Nov. 1, 1926; People's Bank and Trust company, St. Petersburg, Oct. 5, 1926; Bank of Osceola County, Kissimmee, Sept. 14, 1926; Bank of Dade City, Dade City, Sept. 11, 1926. Palatka Bank and Trust company, Palatka, Oct. 4, 1926; Bank of Groveland, Groveland, Dec. 18, 1926; Bank of Umatilla, Umatilla, Oct. 7, 1926; First State Bank of Clermont, Clermont, Sept. 28, 1926; Citizens Bank of Eustis, Oct. 27, 1926; Bank of Mount Dora, Mount Dora, Sept. 7, 1926; Bank of Tavares, Tavares, Aug. 24, 1926; Bank of Oakland, Oakland, Oct. 4, 1926. Commercial Bank of Live Oak, Live Oak, Sept. 11, 1926; Bank of Jennings, Jennings, Sept. 13, 1926; Lake Butler Bank, Lake Butler, Dec. 3, 1926; Bank of Monticello, Monticello, Sept. 14, 1926; Polk County Trust company, Lakeland, Sept. 28, 1926; State Exchange Bank, Lake City, Oct. 16, 1926; East Florida Savings and Trust company, Palatka, Mar. 3, 1927. Stuart Bank and Trust company, Stuart, Oct. 11, 1926; People's Bank of Crescent City, Crescent City, Sept. 27, 1926; Palmetto State Bank, Palmetto, May 19, 1927; Bank of Orange and Trust company, Orlando, May 23, 1927, and First American Bank and Trust company, West Palm Beach, May 25, 1927.