11018. Delta Penny Savings Bank (Indianola, MS)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
January 3, 1928
Location
Indianola, Mississippi (33.451, -90.655)

Metadata

Model
gpt-5-mini
Short Digest
29e16956

Response Measures

Full suspension, Books examined

Other: Arrests of officers and state banking department ordered closure; embezzlement discovered.

Description

Multiple articles (Jan 6–14, 1928) report a run on Delta Penny Savings Bank triggered by reports about the failure of the Fraternal and Solvent Savings Bank (Memphis). The Mississippi State Banking Department ordered the Indianola institution to close pending examination; arrests and evidence of mismanagement followed. No reopening is reported; closure appears permanent.

Events (3)

1. January 3, 1928 Run
Cause
Local Banks
Cause Details
Run was triggered by reports/knowledge of the failure of the Fraternal and Solvent Savings Bank (Memphis), which caused depositors to withdraw from Delta Penny.
Measures
Heavy withdrawals; large crowds and police presence in front of the bank (depositors gathered).
Newspaper Excerpt
run on the Delta Penny Bank of Indianola Tuesday was said caused by reports that had large deposits in the bank that failed.
Source
newspapers
2. January 5, 1928 Suspension
Cause
Government Action
Cause Details
State banking department ordered the bank closed pending a thorough examination of its books after the run and revelations of mismanagement.
Newspaper Excerpt
The Mississippi State Banking Department ordered the institution close its doors following the run.
Source
newspapers
3. January 6, 1928 Other
Newspaper Excerpt
Ward is held for embezzlement... The tangled affairs... arrests of president, vice president, assistant cashier and teller have been made since the investigation began; shortages estimated $250,000-$300,000 detected by examiners and auditors would run from $250,000 to $300,000 on the bank's books. Little hope for depositors is predicted.
Source
newspapers

Newspaper Articles (4)

Article from The St. Louis Argus, January 6, 1928

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Article Text

SHORTAGE IS $200,000 Ward Is Held For Embezzlement. Three Others Up. Walker Released Under $10,000 Bail Tenn., Jan. management. bad loans and grow ing lack confidence by depositors say bank examiners, caused the crash the Fraternal and Solvent Savings Bank. which closed its doors on Beale avenue Thursday night and appealed the state banking department to help straighten out its tangled went to the wall with deposits of shown its books against which there is $847,154.31 in secured. by anything from real estate to burial certifleates. The loans. it understood were the primary cause for the failure. There due the bank from othbanks and These figures include cash items and the in cash found when State Bank took charge. Little Hope for Depositors This amount. with what may be realized from property holdIngs collections, holds out some hope for depositors, but how much none are acquainted with the situation yesterday would predict Certainly It will be far from 100 cents on the dollar. Bank examiners stated Tuesday that the shortage would run from to Ward president the bank: Dr. Walker. first vice president: W Williams. assistant cashier and E. Rasberry. teller. have been arrested since the investigation began. Walkfree under $10,000 bond. The er others being held run on the Delta Penny Pank of Indianola Tuesday was said caused by reports that had large deposits in the bank that falled. The Mississippi State Banking ordered the institution close Its doors following the The bank was established in 1904 and was controlled and by colored officers. had on deposit upward of In the failure of the Memphis bank Ward and Williams are charged with in shortages of $50,000. Dr. Walker. who $6,000 took $20,000 of the best of the bank's first mortgage paper on deposit of the Universal- Life Insurance Company. which be heads. He charged with grand lareeny. According to H. Wilson and Hunt. in charge the audit be ing conducted by H. L. Grigsby's dewill least two partment. before they will be able to see daylight through the muddle in which they have found things. which one of the The bank. largest Race institutions in the counhas between 15,000 and 20,000 depositors.


Article from The Chicago Defender, January 7, 1928

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Article Text

CONFESSIONS ADMIT FUNDS WERE MISUSED Examiners Probe Into Tangled Affairs RUN CLOSES BANK Indianola, Miss., Jan. 6.-The Delta Penny Savings bank, established 1904 under the exclusive control and of bers of our Race. has been close under instruction of the state department run. institution had upwards $260,000 on deposits. closin followed Fraternal Bank Trust company Memphis, which the bank said to have had large deposits. By J. WINSTON HARRINGTON Staff Correspondent) Memphis, Tenn., Jan. The Fraternal Solvent Savings Bank and Trust pany, million dollar institution and once the pride of the Race, crashed last Thursday after an by bank examiners and members of the attorney general's staff revealed that funds had been misappropriated by officials. behind week with misnegligence handling the bank's Between positors have been by the affairs angled Bank Tottered The bank had been several the Fraternal bank the Solvent dition in the but that found state Nothing happened Memphis affected the crash time pride Dixie. is being making for the possible money of poor of With rapidly missing continue unravel events which the In morning mitted and exceeding Examiners the further When spread over the the the return of Police Halt Mob squads of police were the the the part of these the from" ing More than half the had in bank for during the winter months The furinted mob remained in front of institution all and declared would get their children are the thousands deposit felt The children on deposit of the first arrive the the had throughout the financier publican Mr. Church (Continued on Page


Article from The Enterprise, January 13, 1928

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ANOTHER BANK FAILUR BANK Woman Slays White Sweetheart SAVINGS IN MISSISSIPPI Fire Destroys A. M. E. White Shriners Seeking STABBED MAN CLOSES DOORS Marcus Garvey is Planning Church in Los Angeles to Set Aside Injunction INDIANOLA, Miss., Jan. 11. TO DEATH IN unLOS ANGELES, of WASHINGTON, D. C. Negro Special) run on the Delta Penny known origin broke out in the AfShriners are seeking to set aside an Savings Bank of Indianola on TuesTour of Continental Europe rican Methodist Church, 1252 East injunction granted by Texas courts day was caused by reports that it 25th St., early Saturday, completely restraining them from using the had large deposits in the Fraternal SELF-DEFENSE beW a had civilization, progressive KINGSTON, destroyed the building and then and Solvent Savings Bank of Memnames, emblems and insignia of the cause the Greeks looked upon us Following a six week tour of the spread to the parsonage at 1250 East phis, which closed its doors last white organization. Litigation is then as gods. Jamaican Islands, Marcus Garvey ABERDEEN, Wash., Jan. week. The Mississippi State Bank 25th and to a dwelling at 1258 East pending. However, to offset any will tour the West Indies, Central The black men of Carthage, the 25th St. (Special.) Coming as the climax ing Department ordered the colored move the Negro Shriners might make black men of Ethiopia, the black and South America, after which he of a quarrel between the pair, Clarinstitution to close its doors pendBoth the dwelling and the parsonwhite Shriners have noted an appeal will make his future home in Lonmen of Egypt and Timbuctoo and ence E. Roan, 25, white, was age were nearly razed by the flames, ing a thorough examination of its to the plea of Negro Shriners. don. Alexandria gave the light of civilistabbed to death Saturday night books. The Delta Penny Savings which burned fiercely before fire The white Shriners declare that This announcement has been zation to the world. Ethiopia shall by his colored sweetheart, Essie Bank was established in 1904 and fighting companies could get it unthe question to be determined is surely yet stretch forth her hands made from Garvey headquarters on Walker Brandon. 28, at the home der control. was controlled and managed by colwhether they lost their rights by deunto God. and princes shall come authority of the provisional prest of the couple at 409 West Hume ored officers. It had on deposit Total damage was estimated at lay in asking an injunction. The dent. himself, who making out of Egypt. street. In an affidavit the woman $25,000. upward-of $360,000. Bank examinwould be untrue to the faith white Shriners explained that the whirlwind speaking campaign in the is alleged to have admitted cutting ers are checking up the financial The pastor of the church is Rev. of my fathers, I would be untrue to Islands. It was also definitely ansuit was instituted by the Arabia Roan's throat, but claims that she relations of the Indianola and MemA. E. Lyle, and occupied the parmy own conscience, I would be unnounced that the headquarters of Temple at Houston to restrain the acted in self defense. She is being phis institutions. sonage. the Universal Negro Improvement true to my God. if I did not stand Doric Temple of colored Shriners in held at the county jail on a charge The Fraternal and Solvent SavThe fire jumped the home of Association will remain in New upon the platform of racial rightthat city, as soon as the existence of of murder, while Mrs. Lucie Peterings Bank of Memphis closed its Mrs. Emma Cranshawing 1258 East York the latter was known and within a cousness, of racial truth, of racial son, colored, who lived with the doors last Thursday It went to the 25th St., and slightly burned the In London, Garvey hopes to eshonor, and of racial self-respect. year and a half after its organizapair, is being held in the city jail roof. wall with deposits of $1,047,154.31 tablish a base for future detion. Why, there is no beauty in the annex as a material witness. shown on its books, against which Investigators could not determine velopment of the association and world except it looks like the peoPolice were notified of the killthere is $847,154.31 in loans. sewill tour continental Europe. He ple who look like me. the origin of the blaze. ing after Roan had staggered from cured, it is said by anything from shall teach the black man to will also visit periodically the vathe house to the home of Mrs. R. real estate to burial certificates. rious centers of his activities and, see beauty in himself to the excluManley, 407 West Hume. Blood The loans, it is understood were the it is said, might return to the sion of all others, and be hanged to Tulsa Oil King was gushing from a severed artery primary cause for the failure. United States, if there is a change the man who says it shall not be Democrats Hope in the man's throat and he lapsed There is due the banks from in the political atmosphere so. What do I care about you, if into unconsciousness before he other banks and bankers, $37, Plans Greater U. N. I. A. you do not care anything about me? Soon Won't Have could tell the story of the attack. 911.88. These figures include cash That Garvey plans to organize and I respect men as they respect me. Police and an ambulance were sumitems and the $1,000 in cash found construct even a bigger Universal am willing to honor men, as they To Split Race moned but Roan died while en when State Bank Examiners took Negro Improvement Association was honor me, but if you think the route to the Aberdeen General hoscharge. indicated in what is regarded his honor is going to be on one side, An Undershirt pital. keynote address made at Ward's Little Hope for Depositors you crazy In her affidavit, the woman deVote With Smith Theatre here. This amount. together with what Fear God, Respect Law clared that the quarrel started Quoting the great poet philosoTULSA, Okla. Jan. (SpeReduce the proposition to its may be realized from property holdwhen Roan objected to the attenpher of England, W. E. Henley, in ciau.)-Lather Tucker, Oklahoma ings and collections, holds out some finest logical conclusion, and you WASHINGTON, D. C.) Jan. 12.tions shown her by other men. She his "Invictus," Garvey dramatically will find that outside of the desire oil king, said to have inherited oil hope for depositors, but how much (Special.) With Al Smith as the declared that he attacked her and declared, "In the fell clutch of cirproperties said to have been worth none who are acquainted with the of society to arrange itself for its candidate, the dominant wing of that she used a large pocket knife cumstances, I have not winced or $500,000. won't have an undershirt situation yesterday would predict. own protection, there is nothing in the democratic party not only exto protect herself eried aloud, under the bludgeonings it is predicted here when his various the world outside of law for a man Certainly it will be far from 100 pects to split the Negro vote in Mrs. Peterson, in her affidavit adof chance, my head is bloody, but cents the dollar to fear but himself and God. I want wives and sweethearts get through the coming election, but to carry mitted that bitter words were passed unbowed. with him. you Negro people of Jamaica and of Bank examiners stated Tuesday New York, New Jersey and Massa by the couple, but failed to state In a short time I shall be in Mrs. Isabella McKinney Tucker chusetts into the democratic electhat the shortage would run from the world to realize that God is the that the slayer acted in self defense, won her suit for divorce last week the mother country, England, not $250,000 to $300,000. A. Ward, torial college. only power in the world that you according to police. A probe will and was awarded $10,000 in cash only to represent your interests, but president of the bank; Dr. E. should fear. Respect law, because May Solve Problem be continued. and a 160-acre rich farm south of I shall be in other parts of EngWalker, first vice president; L W. Outstanding white and colored society arranges the law for your Roan had a police record here !and and continental Eprope to repHaskell. She had to pay $5,000 for Williams, assistant cashier, and E. own protection and institutes cerleaders throughout th country see and had been in jali on several ocrent the interest of the Negroes of attorneys fees but Tucker had to Rasberry, teller, have been artain executives to see that the law the present politic, sitnation casions. the first time in October. pay the court costs. the World through the League of rested since the investigation began. solution of a most difficult phase of is executed. Respect those execu1923. The charges against him were Nations and other representative Hardly was this out of the way the race problem. With Governor Walker is free under $10,000 bond. tives, respect law, but fear no man. fighting and drunkenness. He was when Tucker was served with a Fears No Man bodies. I desire to see prosperity, Smith as a candidate, and the demoThe others are being held in conborn in Wisconsin and during his but, by God, it shall not be on one summons announcing that he had finement. Where is there a man in all the cratic south supporting him. there residence here had worked intermittently been sued by a young woman in will be brought into intimate and universe that can strike fear or terside. I am not attempting to lead


Article from The Chicago Defender, January 14, 1928

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RAID HOMES OF TO FIND LOOT Tangled Affairs Cause Run on Delta Bank By WINSTON HARRINGTON (Staff Correspondent) Memphis, Tenn., Jan. 13. The tangled affairs of the Fraternal and Solvent Savings Bank and Trust company has caused such a sentiment throughout this section that Delta Penny Savings bank of Indiancia: Miss., established since 1904 and once the pride of Dixie, was forced to close its doors following a similar run on the institution. The Delta Penny bank had upwards $260,000 closing followed the failure the Fraternal and Solvent Bank and Trust which Indianola bank was said to ha had large deposits. Grill Bank Officials A. Ward, president: Leroy Wiland ier the Fraternal and Solvent Sav ings bank which crashed still held custody by the authorities and being grilled by state bank examiners. investigation has revealed the bank's failure due largely to crooked and criminal negligence in the handling of the affairs. Between 15,000 and depositors many of whom are school children, hit by the crash Bank affairs both Memphis and Indianalmost hopelessly tangled, officials say Nothing that has happened in the South in recent years, fected our people the crash of bank and that of the Delta Penny The Memphis bank had been tottering for weeks. the time the Fraternal Savings bank and the Solvent Savings bank merged, Oct. talk but nothing at that said, found the state stepping in. Seek Missing Papers An effort being made state important which been missing since the bank closed its that these will disclose the of securities savings. After examiners had finished quizzing bank officials, search made at the Wilson home, 1056 the home, gers, checks and packed trunk in which was hidden several hundred dollars in cash. resulted the calling of assistant attorneys general, Gerber and C. Mooney Deposits of the bank will approximate examiners estimated last Assets are estimated at around Cash on hand appears to be negligible. The the ing though the building not clear. also the old Fraternal bank building at Beale Ave. and HerThe manipulation of funds of de-