Bank of Commerce (Bessemer, AL)

Episode Information

Episode UID
6396688391242
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
639668839 hash
Start Date
June 11, 1903
Location
Bessemer, Alabama (33.402, -86.954)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
60d26a76cbc083ce

Response Measures

None

Description

Closure followed discovery of a shortage and the presumed flight of an associated banker.

Events (3)
1. June 11, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed after discovery of a cash shortage and the supposed flight of T. J. Cornwell, a president associated with the local banking interests; receivers were appointed.
Newspaper Excerpt
The doors of the Bessemer Savings Bank and the Bank of Commerce ... failed to open this morning as the result of the shortage and supposed flight of T. J. Cornwell
Source
newspapers
2. June 12, 1903 Other
Newspaper Excerpt
Judge Senn ... named George H. Stevenson as receiver for that bank, and on petition of the directors ... appointed Tom O. Smith receiver of the latter bank.
Source
newspapers
3. July 1, 1903 Other
Newspaper Excerpt
Receiver T. O. Smith ... has filed his report with the judge of the City Court showing the condition of that Institution.
Source
newspapers

Newspaper Articles (18)
1. June 11, 1903 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, June 11, 1903

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EFFORTS TO REACH MR. LOPEZ FAIL. Inquirers at his home were informed that Mr. Lopez was in Birmingham and was expected back at any moment. When an effort was made shortly after midnight to communicate with Mr. Lopez by telephone the operator at the Bessemer exchange said it was impossible to reach him, as telephone connection with his house was cut off. It is not known whether the doors of the Bank of Commerce will be open for business in the morning or not, but the general opinion is that if the regular business is attempted that a run will be made on it and that it will be compelled in self-protection to suspend. for a time at least. It was rumored here shortly after 10 o'clock that Mr. Lopez had telephoned to parties in here that he had made arrangements with the banking house of Steiner Bros of Birmingham for all the money his bank might need. Mr. Steiner stated when asked regarding this that he knew nothing of any arrangement and disclaimed any knowledge of any financial troubles of the Bessemer Savings bank.

2. June 12, 1903 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 12, 1903

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Article Text

TWO BANKS CLOSED. Result of T. J. Cornwell's Flight from Bessemer, Ala. BIRMINGHAM, Aia., June 11.-The doors of the Bessemer Savings Bank and the Bank of Commerce, both located at Bessemer, Ala., failed to open this morning as the result of the shortage and supposed flight of T. J. Cornwell, president of the first named bank. At 2 o'clock this morning Judge Senn, of the city court, on petition of the depositors, 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 failures. The petition for a receiver in the case of the sayings 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. The latter bank, It is stated, was closed as a precautionary measure, and it is believed it will pay out. Nothing has been heard of President Cornwell.

3. June 12, 1903 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, June 12, 1903

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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, 1903 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, June 12, 1903

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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, 1903 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, June 12, 1903

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TWO ALABAMA BANKS CLOSE President of One of Them is Missing and Receivers Are Appointed. BIRMINGHAM, Ala., June 11.-The doors of the Bessemer Savings bank and the Bank of Commerce, both located at Bessemer, Ala., failed to open today as the result of the 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 J. M. Smith receiver of the latter bank. None of the Birmingham banks is 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. The latter bank, it is stated, was closed as a precautionary measure, and it is believed will pay out. Nothing has been heard of President Cornwell.

6. June 12, 1903 Evening Star Washington, DC
Article from Evening Star, June 12, 1903

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Article Text

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.

7. June 13, 1903 The News & Observer Raleigh, NC
Article from The News & Observer, June 13, 1903

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Article Text

Two Banks Close Their Doors. (By the Associated Press.) Birmingham, Ala., June 11.-The doors of the Bessemer Savings Bank and the Bank of Commerce, both located at Bessemer, Ala., failed to open today as the result of shortage and supposed flight of J. T. Cornwell president of the firstnamed bank. At 2 o'clock this morning Judge Senn of the city court, on petition of the depositors of the savings bank named George H. Stevenson as rereceiver 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 people 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. The liabilities of the Bank of Commerce are $43,000 and assets $67,000. The latter bank, it is stated, was closed as a precautionary measure, and it is believed it will pay out. Nothing has been heard of President Cornwell.

8. June 14, 1903 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, June 14, 1903

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New Sensation in the Bessemer Bank Failure the HOPEFUL DEPOSITORS It Is Claimed That Cornwall Bought the Bank in Illegal Manner and That the Former Owners May Be Held Liable. Bessemer, June 13.-(Special.)-No day is without an added sensation in connection with the failure of the Bessemer Savings bank, and this was no exception to the rule. There was great rejoicing this morning when the news became known throughout town that those in charge at the bank had received $12.627, and intense curiosity was maintained as to the source from which it came, as but $760 was found in the vault when it was opened yesterday in the presence of a number of witnesses. For a time speculation was rife as to where this additional sum came from. The following statement, which was given out this afternoon, explained the matter: Statement Given Out. "On Wednesday night when the board of directors were called together, or rather met, with Cashier Cockrell they commenced an examination of the holdings of the bank. Several of the directors were large depositors; some of them to an extent that would seriously imperil their affairs and credit, if their deposits were sacrificed. They hardly knew where they stood in relation to their connection with and duty to the bank. whether it was in the nature of a trusteeship or that it would justify them in some measure to protect themselves. They found, or rather the cashier disclosed to them, some $13,000. They called in their attorney and the matter was discussed, and it was found that the aggregate of the deposits of four of the directors about equalled the funds on hand. The attorney advised that with the acquiescence of the cashier these directors take this money and hold it subject to the developments which might ensue and the determination of their rights and claims in the premises, so each director apbecame the custodian of an amount proximately equalling his deposit, as follows: W. J. Long, $7067; Sam Lefkovits, $960; A. A. Randle, $2700; J. W. Rarden, $1900, aggregating $12,627 On the determination of the receivership and the final acceptance of George H. Stevenson by all interests as the recelver, Mr. Long returned the amount in his possession to the receiver, and he was followed in this course by the other the gentlemen mentioned, returning amounts in their possession. Drop In the Bucket. While $12,000 divided among the large number of depositors of the bank will prove but a drop in the bucket, it is at least something, and serves to brighten the spirits of those who thought they might lose their all. If it is decided that the $40,000 worth of real estate mentioned among the assets of the Bank of Commerce is really the property of the Bessemer Savings bank, the situation will be still further improved for the depositors. It now looks as though a substantial dividend might be realized for the deposi- soltors; that with the cash in hand, the vent paper and the bank building and other real estate holdings, probably $45,000 to $50,000 will be secured Cockrell Talks. H. D. Cockrell, the cashier, states that it was his determination if Captain Cornwall did not return with some money on Wednesday, to close the bank Thursday, as he realized his inability to keep it runHe ning longer on the funds in hand. explains his refusal to eash the notes presented by Birmingham parties after banking hours Thursday afternoon for about it $800 by saying that he did not think right to pay out money to them then when he knew he would have to refuse payment to others the next morning. H. M. McNutt of Birmingham has been added to the force of experts at work at the bank. Mr. McNutt was formerly secretary of the Bessemer Land and Improvement company and lived here for a number of years. Banks of Commerce All Right. It was not at first generally considered probable that the Bank of Commerce would resuone business, but E. H. Lopez, the president, states that is the intention, and that he hopes this can be brought about at an early date. He adds his assurance to that of the cashier, J. H. Bemis, that the depositors will be paid in full. Captain Cornwall's present whereabouts are unknown as far as the public of Bessemer is concerned, though many theories continue to be advanced as to where he would be most likely to hide himself. Directors In Name Only. Investigation of the accounts of the bank shows that Cornwall owned the entire capital stock, and that the directors were merely directors in name only, owning no interest in the bank. They had confidence in Cornwall and simply loaned him the use of their names. The facts in the case are that about three years ago Cornwall, it is said, purchased the entire stock of the bank, amounting to $100,000. from J. N. Carpenter of Natchez, Miss., and a party or parties in New York. Cornwall paid $100.000 for the stock. The records of the bank show that at the time he paid this money he put his note in the bank for $100,000. In other words, he purchased the entire stock of the bank with the money of the depositors. This, it is said, being clearly illegal, it is possible that those depositors who have lost their funds may bring suit to recover the amount paid to the former owners of the bank stock by Cornwall. It seems that the bank was entirely a one-man concern, and that no one knew anything about its affairs except Cornwall.

9. June 17, 1903 The Lancaster Ledger Lancaster, SC
Article from The Lancaster Ledger, June 17, 1903

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Bessemer Banks Break President of One is Short A Quarter of A Million. Birminghan, June 11. The doors of the Bessemer Savings Bank and the Bank of Commerce, both located at Bessemer, Ala, failed to open, this morning, as the result of the shortage and the flight of T. J. Cornwell, president of the first named bank. At 2 o'clock, this morning, Judge Senn, of the City Court of this city, on petition of depositors in the Savings Bank, named George Stevenson, as receiver of that bank. and, on petition of the directors of the Bank of Commerce, in which Cornwell had an interest, appointed Tom Smith receiver. None of the Birmingham banks are affected by the failures. The Bank of Commerce was closed, as a precautionary measure, to protect both banks and depositors. Nothing further has been heard of Cornwell. It is believed be purchased a ticket for Washington from this city, on Saturday night. The exact amount of his shortage has not yet been ascertained, but is in the neighborhood of $250,000.

10. June 19, 1903 The Aberdeen Democrat Aberdeen, SD
Article from The Aberdeen Democrat, June 19, 1903

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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.

11. June 19, 1903 The Ely Miner Ely, MN
Article from The Ely Miner, June 19, 1903

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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 20, 1903 Watertown Republican Watertown, WI
Article from Watertown Republican, June 20, 1903

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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.

13. July 1, 1903 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, July 1, 1903

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Bessemer Bank of Commerce. Receiver T. O. Smith, of the Bank of Commerce of Bessemer, has filed his report with the judge of the City Court showing the condition of that Institution. The report, which was filed this morning. contains the following statement of resources and liabilities:

14. July 1, 1903 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, July 1, 1903

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RECEIVER SMITH MAKES A REPORT HE SHOWS THE ASSETS OF THE bessemer BANK OF COMMERCE TO BE IN EXCESS OF THE LIABILITIES. Receiver T. O. Smith of the Bank of Commerce of Bessemer, which closed its doors soon after the departure of T. J. Cornwell, president of the Bessemer Savings bank, has filed his report as to the bank's condition with the judge of the City court. The following is the statement: Resources-

15. July 2, 1903 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, July 2, 1903

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NO OVERTURES MADE TO END STRIKE OF MINERS by the Bank of Commence of Bessemer, to T. O. Smith, receiver for the instituAbout 13,000 Men Are tion. The deed conveys all property, money and effects of the bank to Mr. Now Idle. Smith and states that he is to collect all debts and make all payments of debts due by the bank and turn over to the bank any surplus if there shall be any. Big Corporations Have Some Coal on

16. May 12, 1904 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, May 12, 1904

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Wants a Dividend T. J. Cornwell of Bessemer has filed a petition in the City Court here, praying the court to order and decree that the receiver or assignee of the Bank of Commerce at Bessemer, be required to pay a divideral of at least 25 per cent. to the creditors of said bank. Petitioner recites that he was president of the bank which went into the hands of a receiver on or about the 11th day of June, 1903, and that the said bank, by its receiver, on the blank day of March, 1904, declared a dividend of 25 per cent upon the claims covered in said court. Petitioner further recites that before the Bank of Commerce went into the hands of a receiver, he was a stockholder holding in his name the greater portion of the stock of said bank. That there is now in the hands

17. May 19, 1905 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, May 19, 1905

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Paying Dividends. Receiver George H. Stevenson of the Bessemer Savings bank, by the authority given him by a decision of Judge Senn, began paying the dividends to the depositors of the Bank of Commerce today. Nearly $25,000 will be paid to the depositos, 66 2-3 per cent on regular deposiand 40 per cent on time deposits, As soon as the receiver winds up the affairs of the Bank of Commerce he will begin getting the business of the Bessemer Savings bank in a shape to pay another dividends, a 25 per cent dividend having been formerly paid to the depositors of this institution.

18. June 30, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 30, 1905

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CASH FOR DEPOSITORS PAYING OFF AT THE DEFUNCT BESSEMER BANK. Miners Pay Handsome Reward to Deputy Sheriff Fountain, Who Arrested the Slayer of Local President W. S. Sweeney. Birmingham, June 29.-(Special.) Receiver Stevenson, of the Bank of Comerce at Bessemer, will pay off preferred depositors Monday morning next 20 per cent. of their deposits, as allowed by a decree of the Circuit Court handed down today. The amount of $25,974.37 wil be distributed Monday among the depositors. The depositors will receive in all from the defunct bank 66 2-3 per cent. of their deposits.