Article Text
BANK NOTICE Monday. January being a the following banks be closed American Trust Co. Charlotte National Bank Commercial National Bank Independence Trust Co. Merchants & Farmers National Union National Bank
11675. Merchants & Farmers National Bank (Charlotte, NC)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 1781
- Charter Number
- 1781
- Start Date
- March 1, 1933*
- Location
- Charlotte, North Carolina (35.227, -80.843)
Metadata
- Model
- gpt-5-mini
- Short Digest
0ad24b91
Response Measures
None
Receivership Details
- Depositor recovery rate
- 100.0%
- Date receivership started
- 1934-07-24
- Date receivership terminated
- 1937-11-30
- Share of assets assessed as good
- 66.7%
- Share of assets assessed as doubtful
- 17.2%
- Share of assets assessed as worthless
- 16.1%
Description
The bank operated on a restricted basis after the national banking holiday in March 1933 and never fully resumed; a conservator existed and ultimately the Comptroller appointed a receiver (K. Dorsett) in July 1934 and liquidation/receivership commenced. No article describes a depositor run; events are regulatory suspension/restriction followed by receivership and liquidation (permanent closure).
Events (5)
1.
February 1, 1871
Chartered
- Source
- historical_nic
2.
March 1, 1933*
Suspension
- Cause
- Government Action
- Cause Details
- Bank remained operating on a restricted basis following the nationwide banking holiday of March 1933 and subsequent regulatory restrictions; placed under conservatorship/restrictions rather than normal operations.
- Newspaper Excerpt
- president and cashier of the institution failed to after banking holiday in March, 1933, and under long established custom...
- Source
- newspapers
3.
July 24, 1934
Receivership
- Source
- historical_nic
4.
July 24, 1934
Receivership
- Newspaper Excerpt
- Appointment of K. Dorsett ... as receiver of the Merchants and Farmers National bank of Charlotte was announced in Washington this afternoon by the office of the comptroller the currency. James Stokes, former ... conservator ... instructed him make the transfer to Mr. Dorsett without delay.
- Source
- newspapers
5.
July 25, 1934
Other
- Newspaper Excerpt
- The Merchants and Farmers National bank of Charlotte ... was in receivership today after having been operated conservator since the close of the nationwide banking holiday last year. ... Start Liquidation ... dividend will paid to the restricted depositors ... initial dividend approximately 50 per cent.
- Source
- newspapers
Newspaper Articles (11)
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IS CANDIDATE FOR ATTORNEY HERE James L. DeLaney's Name Heads Senator's List for Appointment as Receiver of Merchants & Farmers; Formal Notice of Withdrawal of Approval Received. James L. DeLaney, Charlotte attorney, is the choice of Senator Robert R. Reynolds for the position of receiver of the Merchants & Farmers National bank, while Col. T. Kirkpatrick is a candidate for appointment to the position of attorney to the receiver, it was revealed last night from Washington. Yesterday withdrawal the of the plan Piedmont National bank announced and James conservator Farmers National and the leading sponnew bank was that office that the had been abandoned because the recent payment through the state banking department. Last Mr. Stokes made telegram had received yesterday afternoon from comptroller's office giving definite reason for the withdrawal the comptroller's approval the the new bank NOTICE OF WITHDRAWAL The plan organization approved condition that distribution depositors of banks Trust company the Merchants National would made through the proposed new bank and thereby furnish nucleus for sufficient volume deposits new warrant Release by Independence Trust its 50 per cent distribution direct agreed action taken by Charlotte banks. both which have under strictions banking formed the basis the new tution Washington that the Tyer. Independence Trust upon from Gurney Hood Raleigh of the proposed opening plan the opening and had resulted the the comptroller's approval plans for the new telegram to Mr. Stokes gave the specific reason for Both Hood and Tyer maintain, that paydividend should prevent Piedmont bank unless comptroller's wishes use that an arbitrary action in ing approval. The dicted would the that First tional might named ceiver Merchants Farmers order the the Some time effort displace Logan and time clared favored Senator office that would DeLaney for the new receivership and forecast the fight months named also Merchants Farmers bank expected make the clearer for the ATTORNEY TO COME LATER office and Mr. Stokes definite information given the Charlotte about the plans the comptroller have mind or when new receiver would be Because his previous with the bank, not permit the naming of Mr. Stokes as Wesley McDonald, secretary of Senator talked by telephone yesterday the senator, Asheville, and reported Senator Reynolds definite statement his for and that thought better receiver appointed before he indorsed anyone for attorney the unalloyed and simon now being handed the treasury the Washington but the receivers hold there anything in sight their Meanwhile. the victimized depositor the when Leod bill was under conwas believed however, that the office would sist naming to the position upon here capable experienced and keep polities the
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DELAY BANK RECEIVER No Action Yet Taken Toward Liquidating Two Restricted Institutions. No reported yesterday movement liquidate Merchants National and the Independ banks formed basis establishthe proposed Piedmont The proposed new bank failed materialize result of payment by the of the Independence Trust instructions of the department, of per dividend to depositors that inwhich with the Merchants Farmers bank the holiday in March, MENTIONED After the office the bank plained that would be appointed liquidate Friends James DeLaney, Charlotte torney, his behalf for and Senator RobReynolds announced would favor Mr. DeLaney's Senator Bailey The Observer he wanted Reynolds his choice position. He said he and Senator submit the names several persons acceptable to them for the Yesterday explained also the Trust that orders had Gurney for that institu- To Give Ice Cream Supper The Ona Patt rson circle of terian church give an ice supper night the home Mrs. Pat the circle are invited to be pres-
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SOON BANK RECEIVER M. & Conservator Recommended by Bailey. REYNOLDS ALSO APPROVES Senator Says Appointment to Be Made by Comptroller at Early Date. Appointment of James A. Stokes as receiver of the Merchants & Farmers National bank within the next few the comptroller of the currency is willing to break a precedent of long standing-was being confidently forecast in interested groups here last night. who conservator the bank, which operating upon restricted basis, president and cashier of the institution failed to after banking holiday in March, 1933, and under long established custom one connect. with an institution to be quidated named receiver. BAILEY BACKS STOKES. The Charlotte been the committee the which Charles Stone chairand last night was Senator Bailey had added his Mr. Stokes already by Senator Robert who previously James DeLaney, Charlotte torney. Mr. DeLaney. declined to allow his to be tered in the contest for the receivership. Because the strong port that has developed for Mr. Stokes and the evident lack of position to him, felt by his friends last that the comptroller might willing break the long followed practice and legal person connected with closed institution ineligible the receivership of that Senator expected appointment be made early date. He was his home Asheville He felt that that rallied Stokes would probably get the NO DEVELOPMENTS. the case of the Independence Trust the other ed state formed with Merchants and Farmers National bank, the called for the new nationbank be named the mont National Plans for the the Piedmont when the the Trust acting upon structions Gurney Hood commissioner banks, 50 the Independence Trust The comptroller of informed action servator Independence Trust company, such action constituted ordered the abandoned was that the Merchants Farmers tional be liquidated. STILL OPERATING The Trust and far could be learned change the operation plans plated. quarters predicted that state bank be chartered occupy the handsome quarters the Independence Trust company and thereby tenant those quarters. the quarters given and remodeled for the and great valuable banking equipment virtually junked. No definite toward getting motion started the organization of new state bank has been taken. said terday.
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REYNOLDS BACKING B FOWLER Asks Appointment Of County Board Chairman START CONTEST Prospective of for the Merchants and Farm bank of be subject first political dispatches revealed United States appointment of their an unexpected confused of the the currency that Henry the board named Balley Recommends Smith made the Roy Smith cashier restricted Trust of Charlotte concerned with the Merchants Farmers National when informed of the day's declined to anyfor but plainly dicated expectation that the ultimate probably by sort may be some time in the Until the and the will charge of press the said an appointment expected to be was made that Senator A. as attorney for the A report source uswell said that Sen ator Balley had Char appointment as attorney for the receiver but that known be Mr that James L. DeLaney be apas in this still another reT Kirkpatrick of has been by to the of representatives and Mercer Blankenship attorney for apas attorney This from decision the weeks ants and Farmers National because the plan new national bank here and effect a partial merger assets the Merchants and and the Independence held that 50 per cent dend by the trust plan to organize the new tional bank
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Selection Of Bank Receiver Awaited Here Out-Of-Town Man Appointed By Comptroller Of Currency For M. And F. Receivership. Charlotte concerned with the the Merchants and FarmNational restricted lotte today await forecast early appointreceiver by whom the assets will liquidated Reports from sources dicated the coming restive the delay starting liquidation, they have been given to understand the conservator, James Stokes, has hand sufficient funds to pay of approximately per cent. About dependence also restricted paid 50 per dividend Immediately the comptroller the rency, who has charge the Merchants and Farmers announced company's plan partial merger of these two banks that time was receiver would be appointed for this national bank Lately Roy Smith, Charlotte bankthis by Senator Bailey of Henry the Meck lenburg board sioners, was recommended by Senator report here today that the policy of the the currency is appoint an out-ofthe receivfollowed, was pointed out the appointment sevyears ago receiver for the First National bank Charlotte. Expect Reynolds Here Senator Reynolds expected arrive in Charlotte some confer with politand and give consideration to this ship matter Dispatches from Washington reported Reynolds ommendation Mr Fowler was dorsed in telegram by Bell, Clyde Stancill, M. Currie Laurence Development of partisanship in this contest, the senators recommending different created situation to ington result compromise being reached the appointment some person other than Mr. Fowler Mr The dispatches comptroller the currency hopes follow the suggestion the North Carolina senators may able since offering ent The original report here that the receiver the First National bank be asked to take over the bank may turn out to be good guess, real controversy arises among the interested hard and fast rule of the treasury Mr. Stokes ator Bailey had given him his support "The comptroller's office has not reached and may do for several days
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APPOINTMENT OF M. & F. RECEIVER CREATES FURORE WILL BE NAMED TO POST SOON Receiver May Be Appointed Today or Tomorrow: Fowler and Smith Are Leading. Appointment of a receiver of the Merchants Farmers National bank of Charlotte will be made to. day or tomorrow. it was forecast last night in Washington, where it was revealed that not since the banking holiday of March, 1933 has such furore been created over a receivership. Henry B. Fowler, charman of the Mecklenburg board of county commissioners, and Roy S. Smith, vice president of the Independence Trust company, appear to be the two leading candidates for the appointment, judging by the Washington report, which declared that "Senator Bailey still standing by Roy Smith as his first choice but has submitted names of three or four others who would be entirely acceptable and also that "the campaign for H. B. Fowler, chairman of the board of county commissioners, reached a climax today. ADVICES FROM BAILEY. The Washington report. however, was at with the statement given The Observer by Senator Bailey in telephone conversation Monday night in which he declared emphatically that he was not supporting any one candidate above any other candidate, but had merely submitted several names, perhaps 10 in all, to the comptroller of the currency for his consideration. The senator declared he felt the job was not political one and maintained that he was making no fight for any candidate. He declared that reports that he and Senator Robert R. Reynolds were "at odds" on the question of the receivership were absolutley untrue and added that he and his colleague, he was confident, would in no find themselves fighting each other on that question. Never before has such Interest been shown in the of a bank receiver is being shown in this case, it was pointed out yesterday in the office of J. Fouts, chief of the insolvent bank division of the treasury department, according to the information last night from the capital. "Never before has there been such not furore over receivership, even in the Detroit receiverships involving billions,' it was explained. has been somewhat comito the staid treasury official but it is no doubt the Tar Heel of campaigning. Mr. Fouts, was declared. "Is very patient man. Witness the fact that he has before him 150 tele grams and letters from Charlotte and environs about the receivership of the Merchants & Farmers National bank, soon to be named 80 the depositors may get at least 50 per cent of their money. He feels now that about everybody has been heard from and tomorrow or next day hopes to name the receiver. Mr. Fouts has named 2,000 receivers since the bank holiday of March 6, 1933, but never before has he seen such a furore over receivership, not even in the Detroit receiverships involving billions." The same report declared Senator Balley contending, as he said to The Observer, that "there is nothing political about receivership but has indorsed only Democrats. The campaign for Chairman Fowler yesterday was being given strong indorsement, said the dispatch. "City Judge B. S. Whiting telegraphed that Fowler would fill the position with credit.' James Bell, state senator-elect, opined that Fowler is a business man of experience' and therefore fitted for the receivership. W. C. Davis, chairman of the county elections board, telegraphed also that Fowler would fill the position 'with credit,' while T. C. Wilson he would clared Fowler was 'eminently fitted' for the job. The only political note sounded anywhere along the line was from E. McA. Currie, chairman of the Mecklenburg county Democratic executive committee, who said that Fowler is good Democrat and a man of ability.' These indorsements were in addition to numerous others made on days by firms and individuals here.
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EXECUTIVE Dorsett Is Named Receiver For Bank His face SESSIONS End Of The Trail and merciless in Mecklenburg Man Is death in MONOPOLY lies dead the "cooler" of the Cook county morgue APPOINTED Dillinger here in Chicago, his lurid career ended No in contortion of features, which plastic and Given High Position had used his art Policemen and surgeon coroner's are viewing the body. pictures on page 12. SCORED Baxter Hunter Is Selected By Governor To Fill TO POST IS HIT BY the Vacancy On Local Government Commission that HERE Start Liquidation Of M. And F. In Few Days STOKES IS OUT Appointment of K. Dorsett, an executive of the Charlotte office of the Reconstruction Finance corporaas receiver of the Merchants and Farmers National bank of Charlotte was announced in Washington this afternoon by the office of the comptroller the currency. James Stokes, former and the has served received shortly thereafter telegram structing him make the transfer to Mr. Dorsett without delay. Mr Dorsett received ing "take over the trust These officials expected that the preliminaries to the transfer Judge Helms Cites Law Governing Meetings ASKING ACTION The drive of the Mecklenburg Civic league to influence the Charlotte city council to abandon its policy of holding sessions was renewed today when Judge Fred B. Helms, league president, issued prepared statement in which he quoted statutes expressly forbidding private league's executive called on the council almost three weeks abandon this but policy the has not as In changing the yet any the statement, Judge Helms charged that practically everything the council has done in preparaof the city's budget the current hind fiscal year "has been beclosed Three Questions Judge Helms three nent raising questions" his statement. "pertithe points of dence, withholding public information conficoncerning citizens, official acts from the what "legitimate" reason for uing the policy holding contin- secret ments.' violation of plain requireSection 2822 of the North Carostatutes was quoted by Judge that section It is stated that executive "the governing body shall not by session otherwise consider or vote any question in private session. The Statement The text of Judge Helms' statewas, follows: the of North Carolina applicable the state the of government with of the city Charlotte reference the meetings, there are two conduct particularly pertinent One of these, section 2892, which provides that the of the 'shall public, has been quoted in the The detailed pertinent section 2822 of the consolidated has apparently not heretofore quotin press considered by the public. This section with its clear follows: Meetings and journal city governing body shall time to time establish for its proceedings. Regular and special shall held time and place fixed All legislative sessions shall open to the and every matter the result which shall be duly recorded. The body not by executive session or otherconsider vote on any question in private session. A full and
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James Stokes, conservator the Merchants and Farmers National bank of Charprobably will receive appointment position the Charlotte office of the Reconstruction Finance corporareports culated in business circles here reports said friends are advocating for appointthe place vacated by K. Dorsett, appointed today receiver the Merchants and Farmers an said he has plans for his future business activities. He expects to be gaged this bank more days making the formal transfer assets.
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Dorsett Takes Work At M. & F. Bank Receiver Is Expected To Move Bank's Offices To Smaller Quarters While Liquidation Goes On. The Merchants and Farmers National bank of Charlotte, for many years well known financial institution of this city, was in receivership today after having been operated conservator since the close of the nationwide banking holday last year. K. Dorsett, formerly president bank at Spencer, charge the Farmers receiver. Until last night Mr Dorsett had been an examiner Charlotte office of the Reconstruction Finance corporation for period months. James formerly vicepresident cashier and lately conservator will remain on duty this bank for several days records are put for regular transfer of the assets to Mr Dorsett Dividend As Soon As Possible The said early this aftwill have for or three weeks details incident to putting the receivership into effect intimated dividend will paid to the restricted depositors quickly as possible. Dispatches from the office the comptroller the currency, which yesterday afternoon announced Dorsett's appointment, said days probably will elapse before the initial dividend can From well informed sources was learned that the bank has on hand sufficient funds idend per cent. In since became known that receivership would be ordered by the comptrolvarious reports have indicated that the initial dividend approximately requir$320,000 The bank also has quantity of collateral which substantial loan later may be obtained from the nance Corporation's agency here for liquidation purposes. Several men, known to be large depositors indicated they expect the pay its depositors ultimately Nothing definite could be learned today regarding plans Mr Dorsett may have moving from the bank's leased quarters smaller quarters was learned that two office sufficient for the staff the receiver.
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CLOSING OF THE definitely decided that fairs of the Independence Trust Company are to be wound up and the bank will out business with the coming of September Thus Charlotte is to lose two landmarks, the liquidation of the Merchants Farmers having been under way for days. The office building from which the Independence Trust Company operated mains of the most elaborate Charlotte's structures and monument the faith of JULIAN LITTLE in the future of this city. was MR. LITTLE astonished the people of the city when he tore down the two-story frame building on the Independence Square corner, known to the older people for long time as "Wriston's corand erected in its place towering office building, the leader office construction in the The Independence Trust Company had popular business, but early the days of depression it had the misfortune to the victim street gossip, the whispers growing volume sufficient incite The bank resisted this stampede substantial manner and might have been able to have survived permanent institution but for the grouping of one unfavorable circumstance after other. made noble effort to survive behalf of its stockholders and depositors, but the difficulties character that could not be the fine institution history.