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"RUN" ON BANK OF PINE BLUFF (Continued from page cue.) withdrew their money yesterday will make another run on the bank this morning to place it on deposit again. The cause for the run cannot be explained by anyone, and its origination seems to have many puzzled. During the afternoon yesterday President McDonnell and Cashier Hudson received congratulations from many for the fine manner in which the crowd was handled.
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BANK CLOSES As Result of Decision of the Directors and An Examiner is in Charge. (BY ASSOCIATED PRESS) PINE BLUFF, Ark., July 3.-In accordance with a decision reached at a meeting of the board of directors last night, the Bank of Pine Bluff did not opên for business today. A. W. Rapp, state bank examiner, is in charge of the institution. The last statement showed capital stock of $100,000; surplus, $100,000; deposits, $783,000. Inability to realize on security is given as the reason for suspension.
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A PINE BLUFF BANK FAILS TO OPEN DOORS Institution Was Crippled by a Run Made a Month Ago-Had Capital Stock of $100,000. By the United Press. Pine Bluff, Ark., July 3 -The Bank of Pine Bluff failed to open for business this morning and a state bank examiner is in charge. A run on the bank was made a month ago and since, the officials have been unable to realize on securities. The last statement, on March 4, showed a capital of $100,000 and the individual deposits were shown to be $516,440 together with a public fund of $227,366.
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Pine Bluff Bank Closes. United Press Dispatch. Pine Bluff, July 3.-The Bank of Pine Bluff failed to open this morning, following a decision of the directors last night, and Assistant State Bank Examiner Reiff is in charge. Inability to realize upon securities is assigned as the cause of closing, a run following a change of presidents several months ago, and steady withdrawal has taken place since that time. $150,000 in tax funds was on deposit, the bank having $227,365 public funds and half million of individual deposits, according to the March report. The capital stock is $100,000, with a surplus of $100,000. The directors of the bank hope to resume business soon.
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Cessna today-10, 1:30, 3, 5 and 7:30. ARKANSAS BANK IS IN TROUBLE BY ASSOCIATED PRESS. Pine Bluff, Ark., July 3.-In accordance with a decision reached at a meeting of the board of directors last night, the Bank of Pine Bluff, did not open for business today. Alvin W. Rapp, state bank examiner, is in charge of the institution. Inability to realize on securities is given as the reason for the suspension. A run was made on the bank about a month ago when a change was made in the presidency and since they many accounts have been withdrawn.
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CLOSED BANKS PAY DEPOSITORS FULLY (Continued from Page 1.) two banks in which adjustment is yet to be made outside of the Bank of Pine Bluff. In some cases the bank has been reorganized or taken over by another bank to the satisfaction of all concerned . Just what disposition will be made of the Pine Bluff bank is yet to be determined, but its affairs will be handled to the best possible advantage." In the case of defunct banks in the hands of the state banking department a big item of cost in the matter of receivership and supervision is eliminated and court receiverships are avoided. This inures to the benefit of the depositor and is regarded as one of the reasons why the department has so far been able to make the defunct institutions repay depositors 100 cents on the dollar.
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This Is Statement of Officers of Bank of Pine Bluff. WILL ORGANIZE NEW INSTITUTION Stockholders are Called to Meet July 22 to Decide as to Future-Plans Contemplate Company With Capital of $200,000. That depositors of the Bank of Pine Bluff be paid in full and that a meeting of the stockholders of the institution will be held on Wednesday July 22, to take steps for re-organizing are the salient features of two statements issued yesterday by the officers of the Bank, which has been in charge of the state bank commissioner since July 3. In a public statement to the depositors, the directors of the Bank of Pine Bluff announce they are convinced that the assets of the bank are sufficient to pay depositors in full, even without taking into considerhave recourse to the stockholders ers for deposits. Under the laws of Arkansas, depositors in a bank may have recourse to the sockholders should the institution prove unable to return deposits. The depositors are requested to exert patience, being assuer that every effort is being made to arrange matters satisfactorly, and that there is every prospect that the outcome will be entirely satisfactory to the depositors. The statembent concludes with the declaration taht there "is absolutely no occasion for discountiny" claims against the bank. This proves the directors are fully convinced that the claimes will be paid in full, and that they are desirous of protecting fully all friends of the institution. Reorganization Plans. The call for the meeting of the stockholders is signed by J. S. McDonnell, president, and W. C. Hudson, secretary and cashier. In this it is stated that the meeting is "for the purpose of considering the advisability of reorganization, or selling and disposing of the assets to a banking company, now organized, or to be organized, or for such banking company to take over the assets of the said Bank of Pine Bluff and to assume its liabilities." It is learned from an authoritative source that the plan favored is an entire reorganization with a capital of $200,000. Half of this to be invested by business men, planters and merchants who have not been interested in the Bank of Pine Bluff, while the remainder will be furnished by an investment company now doing business. The new company will take over the assets and liabilities of the Bank of Pine Bluff, many of the same officers and stockholders to be interested in the new organization. The prospects for a satisfactory settlement of the problem are declared
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Anticipated That Institution Will Re-Open Early Next Week. C. H. TRIPLETT TO BE PRESIDENT Directors Decide in Meeting Yesterday to Effect Re-Organization and Details Will Be Completed at Meeting This Week. The Bank of Pine Bluff will be reorganized the latter part of the week and will in all probability be open for business the first of the coming week. C. H. Triplett, a well known local business man and capitalist will be new of the Many president of old the stockholders institution. will be identified with it and have contributed liberally for additional stock. The bank went into the hands of the state bank examiner on July 3. At a meeting of the stockholders of the institution yesterday morning and afternoon it was unanimously voted to transfer the assets to the new bank. The meeting was largely attended, about 90 per cent of the S lockholders being present. Among the out-of-town men interested in the bank, who attended the meeting were W. D. Attwood of New Ediaburgh; J. A. Dean of Portland; V. J. McCloy of Monticello; John E. Wells of Hot Springs. Another meeting of the stockholders will be held the latter part of the week to further plans for the new banking institution. At this meeting all the details will be worked out and the date for the opening announced. The officers of the bank will also be made known after this meeting. Re-organization plans are now well under way and will be completed by the end of the week. The prominence and financial standing of those interested in the plans for the new bank presage success for the new institution. Special Deputy Bank Commissioner R. E. Pugh filed a statement in the chancery court here recently showing the assets of the bank on the day It suspended business to be $967,804.43 and later a statement was issued above the signatures of the directors stating that all depositors would be paid in full. The full liabilities of the bank have not been announced.
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SEEK TO ENJOIN DIVIDEND PAYMENT J. J. McCloy Et Al. Opposing Payment of Bank of Pine Bluff Funds to President. GROWS OUT 'RUN' LOAN Litigation Result of Assignment of Collateral Put Up to Secure Loan of $90,500 on June S. Suit to enjoin State Banking Commissioner J. M. Davis from paying any part of the dividend on claims of creditors of the Bank of Pine Bluff to J. S. McDonnell was filed yesterday by J. J. McCloy, J. E. Trotter, W. E. Graham, Mrs. Mamie Graham, Mrs. Minnie McKenzie and Mrs. L. D. Hain, who claim that the money should be paid to them. Plaintiffs set forth that when the Bank of Pine Bluff closed on July 3 it was indebted to Z. Orto, J. B. Speers, S. C. Alexander and J. E. Boyce, trustees, in the sum of $41,875, this representing a balance due on a loan of $90,500 extended to the Bank of Pine Bluff on June 8. This was the date on which the Bank of Pine Bluff sustained a "run," which it weathered through financial aid extended by the Pine Bluff Clearing House associaticn. Petitioners further affirm that to secure this loan of $90,500, J. S. McDonnell, as president, and W. C. Hudson, as cashier, executed in favor of the trustees a note secured by certain collateral; that part of the amount the trustees agreeing for an with was refunded, McDonnell the balance extension of $41,875. of sixty days on The petitioners allege that before the expiration of this sixty-day period, Mr. McDonnell assigned his rights in the collateral, which was returned to the bank under orders of the court.
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WANT RECEIVER FOR PLANTATION Suit Instituted Against the Clear Lake Co. on Behalf of Bank of Pine Bluff. Little Rock, Jan. 7.-State Banking Commissioner John M. Davis, in charge of the affairs of the Bank of Pine Bluff, filed suit in the Pulaski chancery court against the Clear Lake Farming company et al., to foreclose a mortgage for $65,000 held by the Pine Bluff bank. The plantation is located near England and comprises about 1,500 acres, situated in Lonoke and Pulaski counties, and is valued at $175,000. The complaint suggests that the forced sale of the property at this time would probably fail to bring sufficient to pay off the debt to the bank and a prior lien of $49,000, held by 3 William H. Adams, and asks that receiver be named to operate the farm during 1915. The property is now in charge of the state banking department. A co-plaintiff with the banking commissioner is W. C. Hudson, trustee, and defendants are John McGaughy, N. B. Beakley, E. H. Eieve, James B. Gray and George M. Chaplin.
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DURHAM RECEIVER CLEAR LAKE PLACE England Man Takes Charge of Farmiug Company Indebted to Bank of Pine Bluff. Little Rock, Jan. 15.-Ben Durham of England has been appointed receiver for the Clear Lake Farming company as the outcome of a suit filed in the chancery court here. by John M. Davis, state banking commissioner, in charge of the affairs of the defunct Bank of Pine Bluff. W. C. Hudson, trustee, is a co-plaintiff with the bank commissioner. It is alleged the farming company owes the Bank of Pine Bluff $65,000 on past due notes. The petitioners ask that the receiver operate the place during 1915.
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TONEY TO CAPITAL ON BANK BUSINESS Will Endeavor to Have Legislature order Investigation of Bank of Pine Bluff. Attorney H. K. Toney yesterday evening went to Little Rock where he will endeavor to have the legislature order an investigation of the affairs of the Bank of Pine Bluff, since July 3, 1914, in the hands of the state banking department. Mr. Toney, former president of the senate, declares that no effort is being made to conclude the liquidation of the bank's affairs, and that its assets are being consumed by those in charge to the detriment of depositors. He declares that he was influential in having a number of men in moderate circumstances place their money in the institution after the run preceding the failure, and that these are looking to him for aid in recovering their money.
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ment on property in the Waterloo Drainage district is an aftermath of the failure of the Bank of Pine Bluff, in which the district had about $90,000 of its funds. At a meeting of the property-owners recently there were protests against an increase in taxation. A committee named at this meeting to devise a plan for securing the money needed to meet contractors' estimates recommended a second issue of bonds to the amount of $30,000. These were issued, and it is believed that the amount to be collected from the bank will be sufficient to retire these bonds. If this expectation is fulfilled the county court has the authority under the Wilson of bill to suspend the collection taxes to the amount recovered.
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INCREASE TAXES WATERLOO DISTRICT Failure of Bank of Pine Bluff Causes Introduction of Bill in House. RAISE ASSESSMENTS Wilson's Measure Gives Power to Increase Assessment 30 Per Cent, But County Court May Suspend ColIcetion-County Depository Bill. Little Rock, Feb. 6.-Representative T. A. Wilson of Pine Bluff this afternoon introduced a bill to enable the Waterloo Drainage district of Jeffersen county to increase the levy to meet a deficiency of about $30,000 in the amount needed to complete the drainage system. The bill declares the assessments of benents suitable but inadequate; that all lands within the district "will be benefited by the making of the improvement now under way to the extent of at least 30 per cent in excess of the amount of the present assessed benefits, and provides that "the commissioners of said district proceed to add to the assessment of benefits against each tract of land, railroad, tram-road and public road within said district an increase of 30 per cent above the present assessment." The bill has the emergency clause attached, and will become effective immediately upon its passage: Section two of the measure reads: "In case the present rate of taxation upon the lands of the district produces a larger income than is required by the district for its current expenses, and for the payment of the principal and interest of its bonds as they mature, said tax rate may be reduced so as not to raise more than the necessary amount; but said tax rate shall be raised whenever necessary to meet the obligations of the district. "Section 3. It is expected that the district will realize from the assets of the Bank of Pine Bluff, or from its stockholders or directors, the whole or the larger portior of its deposits in said bank: and in that event, the County Court of Jefferson county may suspend the collection of taxes to the extent that the funds of the district are increased by the sums derived from the said Bank of Pine Bluff, or from its stockholders or directors." For County Depository. It is understood that Representative Brockman of Jefferson county has drafted and will introduce in a few days a bill providing for a county depository for Jefferson county.
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PRESIDENT HEARNE ACQUITTED. Was Accused of Making False State. ment of Bank of Pine Bluff. Pine Bluff, Ark., March 19.-W. D. Hearne, who was president of the Bank of Pine Bluff, which recently was declared insolvent, was acquitted by a jury in circuit court late tonight of havin bmade a false statement as to the bank's condition to the state banking department. The jury deliberated but forty minutes. The statement on which the indictment was based was made March 4 of last year and the bank closed its doors on July 3. following a run. A similar indictment is pending against W. C. Hudson, who was the cashier of the bank, but it is probable it now will be dismissed.
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M'DONALD MAY SUE BANK COMMISSIONER J. IS. McDonald, former president of the defunct Bank of Pine Bluff, yesterday filed a petition in Chancery court asking permission to make John M. Davis, state bank commissioner, a party to a foreclosure suit against the (Puddephatt Furniture Manufacturing company. Chancellor Elliott granted the petition and made the necessary order. McDonald, according to the petition, will sue the furniture company on notes long past due and unpaid. He was given a mortgage on lot 3 in Wocdruff's addition as security. This property was turned over to the bank commissioner or an indebtedness and was sold with other assets cf the defunct bank to C. H. Triplett Sr. Permission for filing the suit was necessary, the petition set forth, because the bank commissioner's status is similar to that of a receiver. The petition was drawn by Crawford & Hooker.
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ERS CONTESTING RECEIVERSHIP SUIT Is That by Terms of Agreeand Court Order He Is End to Further Time to Pay. Sanders yesterday filed anD the suit for receivership inrecently by C. H. Triplett et purchased the assets of the Bank of Pine Bluff, to which ders was indebted. Mr. Sanenies that he has refused to etain property, and points out is is not an opportune time mpt to dispose of the holdings. ies that the property mortS insufficient to meet the iness, and avers that the mill w operating profitably, despite at that the European war has etrimental to the lumber inHe cites an order issued by John M. Elliott on April 1, the Bank of Pine Bluff case ch the value of the indebtedas fixed at $125,000, and was paid in one, two and three and that evidences of the iness were pledge dto the bank Bioner. He prays that he be further time to satisfy the 100 per the agreement with R. E. rustee, and R. Carnahan, trusroved by the court, and that ver of plaintiffs for receiverdenied, so he may obtain price instead of having the sacrificed, as would be the contends, should the petition ivership be granted.
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MEMPHIS COMPANY TO COLLECT DEBT Intervenes in Bank of Pine Bluff Case and Will Receive Dividends Due J. A. Cornwall. Bank Commissioner John M. Davis was yesterday ordered by Judge John M. Elliott to pay to the Memphis Trunk & Bag company all future dividends due J. A. Cornwell from his claim against the defunct Bank of Pine Bluff. The order was entered in the intervention of the Memphis concern, which showed that it has obtained judgment against Cornwall for $183 and judgment against the bank commissioner as garnishee. Upon the petition of the Packington Realty company, Judge Elliott ordered cancelled the plat of the Industrial addition to Pine Bluff, it being shown the same property is included in the Packingtown addition, and that the existence of two plats would cause confusion. Receivers Discharged. The case of M. W. Ware et al. vs. T. Q. Woodward et al. was dismissed at plaintiffs' cost upon their motion. The court ordered the discharge of C. S. McNew as receiver, who was instructed to pay over the money in his possession to M. W. Ware. Sebastian Geisreiter and F. W. Berry, trustee, dismissed their suit against Miles Pitts and wife, and Berry was discharged as receiver. The case of F. Silbernagle and Dan Silbernagle vs. James Butler was stricken from the docket, upon the report that it had been settled.