10943. Mississippi State Bank (Canton, MS)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 9, 1914
Location: Canton, Mississippi (32.613, -90.037)

Metadata

Model: gpt-5-mini
Short Digest: 9a322f24

Response Measures

None

Description

The bank closed its doors on March 9, 1914 (reported as a suspension/closure prompted by apprehension over a new state deposit-guarantee law). Subsequent accounting revealed mismanagement and heavy insider loans; receivers were appointed and the bank was liquidated. Depositors were ultimately made whole through a liquidation/asset-transfer arrangement by July 1914. No contemporaneous reports describe a depositor run prior to suspension.

Events (3)

1. March 9, 1914 Suspension

Cause Details: Directors closed the bank reportedly due to apprehension over a newly passed state law providing for deposit guarantees; closure framed as a voluntary suspension by directors rather than a classic run or government seizure.
Newspaper Excerpt: On March 9, 1914 the Mississippi State Bank at Canton closed its doors.
Source: newspapers

2. April 21, 1914 Receivership

Newspaper Excerpt: it now seems certain that its affairs will be wound up by receivers... The report of Charles J. Moore, expert accountant, showing how the books of the bank were juggled ... has created even a greater stir among the depositors than the closing of the institution several weeks ago . . . loans to the Mississippi Company ... Canton Cotton Oil Company . . . assets of doubtful character.
Source: newspapers

3. July 23, 1914 Other

Newspaper Excerpt: The affairs of the failed Mississippi State Bank of this place were wound up today with the payment in full in cash of those depositors who did not accept stock ... When the bank closed on March 9 last, its liabilities were $510,000 and assets $190,000. ... within four and a half months from the date of closing the Mississippi State Bank, its depositors have been paid in full.
Source: newspapers

Newspaper Articles (10)

1. March 13, 1914 The Penn's Grove Record Penns Grove, NJ

Article from The Penn's Grove Record, March 13, 1914

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General An earthquake was reported at Fairbanks, Alaska. The Giants and White Sox, baseball tourists, arrived in New York. A special election for a United States Senator from Alabama will- be held May 11. Fearing blindness, August P. Heyne, 51 years old, an architect, of Newark, committed suicide. According to police figures there are 49,617 unemployed men in Chicago. Reports from south Florida indicate that the vegetable crops were injured from 50 to 75 per cent. by the recent frost. William S. West, a wealthy lumberman of Georgia, was sworn in as senator to serve until the election in October. Claude Anderson, cashier of the Mercantile Bank of Memphis, Tenn., which recently closed its doors, was indicted on five counts. William E. Kelly, president of the National Letter Carriers' Association, will be the new postmaster at Brooklyn. C. L. Brown, agent for the Adams Express Co., at Farmington, Ill., was arrested charged with the embezzlement of $6,400. Assemblyman Law of New York introduced a bill appropriating $350,000 to pay for the State's share of eliminating grade crossings. The Merchants' Association of New York will guarantee $24,000 in receipts If the next Army-Navy football game is played in the metropolis. An anti-tipping bill was introduced in the New York Legislature. It makes it a misdemeanor for anyone to accept, promise, offer or receive a tip. Chas. Black, 17 years old, of Jersey City, was awarded $18,000 for injuries received when a wagon on which he was sitting was struck by a New Jersey Central train. P. M. Daniels, a New York realestate dealer, was sentenced to five months in the penitentiary and fined $500 on a charge of selling lots under false pretenses. William Ferris, bookkeeper of the Greenwich Savings Bank, of Greenwich, Conn., which suspended last December, was arrested on a charge of embezzlement and held in $5,000 bail. Schools, churches and moving picture shows at Florence, N. J., where 12 persons are dead from an epidemic of scarlet fever, were ordered closed. Cornelius Greenleaf, an undertaker of Englewood, N. J., telephoned to New York for a coffin for an infant. It arrived by parcel post, costing 18 cents. The steamer Cameronia of the Anchor line arrived in New York with 27 honeymoon couples from Scotland. The unemployed in Milwaukee number 7,000, according to a census taken by the police. The will of Jacob Friday, liquor dealer, of Pittsburgh, bequeathing an estate of $500,000, stipulates that any beneficiary engaging in liquor trade shall forfeit all claim. Sentence was suspended in the case of Samuel H. London and Henry C. Bohn, of New York, convicted of producing "The Inside of the White Slave Traffic." Because of a new state law, providing for the guarantee of deposits, the Mississippi State Bank, of Canton, capitalized at $100,000 and with deposits of $400,000, closed its doors. Bishop Lawrence of the Episcopal diocese of Massachuetts, has issued an appeal to have the collectors in the churches watched and wants the money counted in the vestries. "General" Kelley's army of unemployed were routed by 300 deputy sheriffs armed with pick handles when they attempted to cross the Southern Pacific's right of way at

2. March 20, 1914 Macon Beacon Macon, MS

Article from Macon Beacon, March 20, 1914

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CANTON BANK CLOSES DOORS. Apprehension Over New Law Said to Have Caused Action. Canton.-The Mississippi State bank has closed its doors and suspended business. The directors report the liabilities at $517,000 and estimated assets at $680,000, with $50,000 in cash in the vaults It is stated that all depositors will be paid in full. This was one of the largest state banks in Mississippi and for many years has held the confidence of the whole people. The Mississippi company, an adjunct of the bank, has large holdings, among them the oil mill, the ice factory and bottling works, and several other Canton industries. It is said the decision of the directtors was prompted by the recent passage of a state law providing for guarantee of deposits. The bank was capitalized at $100,000, with a surplus of $50,000.

3. April 22, 1914 The Semi-Weekly Leader Brookhaven, MS

Article from The Semi-Weekly Leader, April 22, 1914

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EXPERT SHOWS THAT DEFUNCT BANK JUGGLED ITS BOOKS It Looks Like Depositors in Canton Institution Will Lose Heavily, from Moore's Report. Jackson, Miss., April 21.-Advices from Canton state that all propositions and counter propositions looking to an adjustment of the affairs of the defunct Mississippi State Bank have been rejected, and it now seems certain that its affairs will be wound up by receivers, and the depositors and other creditors will receive only such dividends as may be realized from the assets, a good portion of which are of doubtful character. The report of Charles J. Moore, expert accountant, showing how the books of the bank were juggled, and the heavy loans made to various industrial enterprises, has created even a greater stir among the depositors than the closing of the institution several weeks ago While it was known that the bank had furnished financial backing to a number of concerns it was not believed that the loans were so extensive as the report of the expert accountant shows. For instance, the assets listed show that loans were made to a land concern, known as the Mississippi Company, represented by notes and overdrafts, totaling over $150,000 and notes and overdrafts of the Canton Cotton Oil Company amounted to about $140,000. While the bank took as security shares of the capital stock, of these concerns for more than the loans and overdrafts; those who are acquainted with the two companies declare that they could not be sold at the face value of loans made

4. April 22, 1914 The Hattiesburg News Hattiesburg, MS

Article from The Hattiesburg News, April 22, 1914

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CANTON BANK'S AFFAIRS IN BAD SHAPE--MOORE Special to The News. Jackson, Miss., April 22.-Advices from Canton state that all propositions and counter propositions looking to the adjustment of the affairs of the defunct Mississippi State Bank have 1 been rejected, and it now seems cer tain that its affairs will be wound up by receivers, and the depositors and 1 other creditors will receive only such I dividends as may be realized from the assets, a good portion of which are of 1 doubtful character, The report of Chas. J. Moore, expert accountant, showing how the books of the bank were juggled, and the heavy loans made to vairous industrial enter prises, has created even a greater stir among the depositors than the closing of the institution several weeks ago. While it was known that the bank had furnished financial backing to a number of concerns, it was not believed that the loans were so extensive as the report of the expert accountant shows. For instance, the assets listed show that loans were made to a land concern known as the Mississippi company, represented by notes and overdrafts, totalling over $150,000, and notes and overdrafts of the Canton Cotton Oil Company amounted to about $140,000. While the bank took as security shares of the capital stock of these concerns for more than the loans and overdrafts, those who are acquainted with the two companies declare that they could not be sold at the face value of loans made. The total assets absorbed by the bank in the retirement of its own capital stock and industrials was $438,876.77. The total book values of all assets was $695,641.31, and assets other than industrials and its own stock $256,964.74. In his preface to the schedule Accountant Moore uses the following significant language. "Up to this time I have not completan audit of all the accounts of the bank, especially the revenue and exbense accounts. Entries have already come to light showing that the various ndustrials have absorbed at least 115,000 more than is shown above, nd false entries made on the books the bank to absord the loss with-

5. May 1, 1914 The Grenada Sentinel Grenada, MS

Article from The Grenada Sentinel, May 1, 1914

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FOOT TURNS OVER HIS PER. j SONAL ESTATE TO RECEIVERS MISSISSIPPI STATE BANK. GOES TO OLD SOLDIERS HOME, Beeks Refuge at Hampton (Va.) Home So That His Wife Can Have Benefit of Meager Pension of $15 Per Month. -Jackson. L. Foot, president of the defunct Mississippi State bank at Canton, has turned over to the receivers deeds converting all of his real and personal property to the instituting, leaving self and family penniless. In a pathetic letter addressed to the depositors, the former president, who for thirty years was one of the leading financiers of the state, states he is going to seek refuge in the soldiers' home at Hampton, Va., in order that he can give to his wife his meager pension of $15 per month for her support. The receivers agree to allow Mr. Foot $50 per month for support out of the income of his property until it can be sold for benefit of the bank's creditors. Physicians state that Mr. Foot is in a critical physical condition, and fear that he can survive but a short time. After the closing of the bank he went to his home in Canton and did not appear on the streets until the day of his departure for the soldiers' home. Five years ago his personal fortune was estimated at a half million dollars.

6. May 2, 1914 The Semi-Weekly Leader Brookhaven, MS

Article from The Semi-Weekly Leader, May 2, 1914

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A BROKEN HEARTED MAN / Canton Bank President Goes to Soldiers' Home-Wishes for His End to Come. L. Foote, president of the defunct Mississippi State Bank at Canton, has turned over to the receivers deeds converting all of his real and personal property to the institution, leaving self and family penniless. In a pathetic letter addressed to the depositors, the former president, who for thirty years was one of the leading financiers of the state, he states he is going to seek refuge in the soldiers' home at Hampton, Va., 10 order that he can give to his wife his meagre pension of $15 per month for her support. The receivers agree to allow Mr. Foot $50 per month for support out of the income of his property until it can be sold for benefit of the bank's creditors. Physicians state that Mr. Foot is in a critical physical condition, and fear that he can survive but a short time After the closing of the bank he went to his home in Canton and did not appear on the streets until the day of his departure for the soldier's home. Five years ago his personal fortune was estimated at a half million dollars. The letter written by Mr. Foot to the depositors of the wrecked bank follows: To the Depositors of Mississippi State Bank: I have done you no wrong intentionally nor have I received from the bank nor the Missisisppi Company or Canton Oil Mill Company, one dollar more than is justly due me-in fact 1 have received no salary from the bank for eighteen months and from the two companies only a portion of my salaries in the past year. No matter what the auditor has already reported or will report in the future, none of your funds have been used for my personal benefit; every transaction as far as I am concerned, has been one solely for your benefit and not for mine. I have erred greatly in judg ment, I freely acknowledge, but I have done not an immoral act. It is an unwritten law that when a bank closes its doors, its president goes down with it, so I have given you all of my property, the accumulation of 50 years, for my old age. can do no more. I wish I could. I go to a soldiers' home, so that I may give to my wife my pitiful pension of $15 per month. 1 have the satisfaction of knowing that in the 31 years that 1 have lived in your midst, that 1 have done some good for the people of my county I hope in my new home to recover my broken spirit and humiliation, but not the strength of my body. 1 long for my eternal rest. LAWRENCE FOOT.

7. May 8, 1914 Macon Beacon Macon, MS

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Pathetic Climax to Failure. L. Foot, president of the defunct Mississippi State bank at Canton, has turned over to the receivers deeds converting all of his real and personal property to the instituting, leaving self and family penniless. In a pathetic letter addressed to the depositors, the former president, who for thirty years was one of the leading financiers of the state, states he is going to seek refuge in the soldiers' home at Hampton, Va., in order that he can give to his wife his meager pension of $15 per month for her support. The receivers agree to allow Mr. Foot $50 per month for support out of the income of his property until it can be sold for benefit of the bank's creditors. Physicians state that Mr. Foot is in a critical physical condition, and fear that he can survive but a short time. After the closing of the bank he went to his home in Canton and did not appear on the streets until the day of his departure for the soldiers' home. Five years ago his personal fortune was estimated at a half million dollars.

8. July 15, 1914 The Semi-Weekly Leader Brookhaven, MS

Article from The Semi-Weekly Leader, July 15, 1914

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CANTON FAILURE SETTLED. Directors' Anxiety to Settle With Depositors Cause Prompt Adjudication of Affairs. The Mississippi State Bank at Canton, which failed after the Commercial did here, has had all of its affairs liquidated and closed up at a nominal expense and all of the depositors are satisfied with the final adjustment of the matter. 50 cents on the dollar will be paid in cash, and depositors have been given shares of stock in a newly organized company of various paying and running industries. Attorney W. H. Powell, a son of Judge Robt. Powell, handled the legal end of the proposition through to the end, with practically not a dollar's expense, Mr. Powell having been one of the former stockholders. This prompt settlement was brought about by the anxiety of the directors of the bank to have a settlement made with the depositors. Practically all of the expense to the liquidation was $5,000 paid to Paul Saunders, of New Orleans, an outside, disinterested man, who was selected on this account, his fee being paid by the directors of the institution Judge P. Z. Jones has been in conference with the liquidating committee from time to time. The above only goes to show what can be done when there's a will to do it. As soon as the bank failed at Canton a meeting of depositors was held and a representative from them was appointed and served in their interest to the final adjudication. It is expected that all depositors will be paid by the 20th. All the funds are practically in hand. Canton's paper, further states: "The depositors of the unfortunate bank deserve great credit for their patience and assistance to the liquidators, without which it would have been impossible to liquidate the bank. At the same time due credit must be given to the directors of the Bank for their liberal and magnanimous support, which reflects credit upon their integrity and shows a disposition on their part to do the right thing."

9. July 25, 1914 The Semi-Weekly Leader Brookhaven, MS

Article from The Semi-Weekly Leader, July 25, 1914

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SETTLEMENT IS EFFECTED / Liabilities of Bank at Closure $510,000, With Assets of $190,000-All Now Settled. Canton, Miss., July 23.-The affairs of the failed Mississippi State Bank of this place were wound up today with the payment in full in cash of those depositors who did not accept stock in two industrial concerns in which the bank was interested. Of the 2550 depositors, 400 subscribed to stock in the Canton Oil Mill Company and the Mississippi Company, which operated an ice plant. When the bank closed on March 9 last, its liabilities were $510,000 and assets $190,000. The directors immediately began to devise ways and means for protecting the interests of the depositors and called into consultation L. H. Dinkins, president of the Interatate Trust and Banking Company, of New Orleans. An examination of the assets disclosed the fact that the principal resources of the bank were in the two corporations known as the Canton Oil Mill Company and the Mississippi Company, and that a sale of these under the hammer would bring only a small fraction of their real worth, and inevitably result in heavy losses to all parties concerned. It was therefore proposed to organize a new corporation to take over the wholesale grocery, the ice plant and the oil mill and gins. This corporation is capitalized at $200,000, 6 per cent cumulative preferred stock and $50,000 common stock. This stock was offered to the public and the full $200,000'of 6 per cent preferred stock was taken by the citizens of Canton and Madison county and others, the subscriptions being made for the most part to the depositors of the failed institution with orders against their deposits. The |funds thus raised were delivered to the receivers, and within four and a half months from the date of closing the Mississippi State Bank, its depositors have been paid in full.

10. July 30, 1914 Oxford Eagle Oxford, MS

Article from Oxford Eagle, July 30, 1914

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An Example Set By Canton Mississippi Bank Closes Its Doors Depositors Paid in Full Others Should Pay. On March 9, 1914. the Missis sippi State Bank a Canton closed its doors. and the people of that thriving little city felt that a terrible calamity had befallen them. The affairs of the banking company were thrown into court and receivers appointed with authorie ty to employ an auditor to ascertain the condition of the institu tion. His report showed that the defunct bank owed its depositors and other banks the sum of $510, e 000. e That was just, four and onehalf months ago, and today evee ry cent of the bank's liabilities e have been paid, not a depositor losing one cent of the money he 8 had entrusted to it. 8 How this was accomplished is d another story to the credit of the 0 people of Madison county, and e one that might be followed with profit and honor under similar y circumstances. It presents a most striking contrast to many other bank failures in the State of Mississippi, and one of which the people of Madison county have a right to be proud. r Instead of wailing over their C misfortune, the people of Madi8 son went to work to repair it, and t so successfully and honestly were their plans carried out that the e entire afiairs of the bank were liquidated and depositors paid e dollar for dollar at the insignifi cant expense of less than $5,000, t including receivers' fees, auditors' fees and all other expenses, the attorneys in charge of the settlement having generously re. fused to receive any compensation for service rendered. As a result of this splendid example in the management ot the affairs of a busted bank, confidence has been restored, business has been boosted, and Canton finds herself the possessor of two other prosperous industrial insti( tutions which sprung up over the ruins of her bank that tailed, but which enjoyed the enviable rep( utation of having made every promise good and in the short I space of four and one-half months put back into the pockets of its depositors every dollar that they had entrusted to it. The people of Canton are to be congratulated on having set an example that stands as a monument to their honesty and financial ability.-Clarion-Ledger.