Capital City Savings Bank (Little Rock, AR)

Episode Information

Episode UID
1663645991302
Episode Type
Run → Suspension → Closure
Bank Type
savings
Bank ID
166364599 hash
Start Date
June 19, 1908
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5f2291f9616bbd3a

Response Measures

None

Events (3)
1. June 19, 1908 Receivership
Newspaper Excerpt
The Capital City Savings bank ... went into the hands of a receiver today. Marvin Harris was appointed receiver by Chancellor Martineau.
Source
newspapers
2. June 19, 1908 Run
Cause
Rumor Or Misinformation
Cause Details
An illiterate depositor overdrew his account and, when his check was refused, started a report that the bank was insolvent, triggering heavy withdrawals.
Random Run
Yes
Random Run Snippet
Illiterate depositor overdrew account; started report bank insolvent.
Measures
Doors were closed; officials reassured depositors and attempted to resume business but ultimately sought a receiver.
Newspaper Excerpt
A run was starte[d] ... the assets, I will say they are ample to cover our liabilities. ... a depositor recently overdrew his account ... it is alleged, misrepresented the facts to other depositors and the run was started.
Source
newspapers
3. June 19, 1908 Suspension
Cause
Government Action
Cause Details
Receiver appointed by chancery court at request of the cashier, effectively suspending normal operations.
Newspaper Excerpt
The Capital City Savings Bank ... went into the hands of a receiver today on request of Charles B. King, the cashier. Marvin Harris was appointed receiver by Chancellor Martineau.
Source
newspapers

Newspaper Articles (16)
1. June 19, 1908 The Prescott Daily News Prescott, AR
Article from The Prescott Daily News, June 19, 1908

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Savings Bank Fails Little Rock Financial Institution Goes into Hands of Receiver Today Little Rock. June 19.-Specialof drawing their balances, made additional deposits. The Capital City Savings Bank The bank does a general priva negro institution here. with a ate banking business. It is reported deposit of $80,000 went equipped with safety deposit into the hands of a receiver this vaults and pays interest on savings accounts. The officers, esmorning on a petition of Cashier specially the president and cashC. B. King. W. Marvin Haens a ier. are owners of considerable well known attorney of this city. real property in the city. was appointed receiver by ChanC. B. King, cashier, made the cellor Martineau. following statement last night "Our deposits in round numbers Due primarily, it is said, to a amount to about $80,000. Withdepositor's misunderstandina of out going into a detailed list of his account. a run was startel the assets, I will say they are yesterday on the Capital City ample to cover our liabilities. Savings bank. The run began There is no need for the deposishortly afternoon and up to the tors to worry. I hope today hour of closing many balances will see an end to the run and were withdrawn. Money was that the bank can be in normal fortheoming to all demanding it channels again before many but efforts to stop the run alhours." together were unavailing. C. B. King. cashier explained that a depositor recently over Penitentiary Board. drew his account. The statement of the overdraft was sent Little Rock. June 19.-SpecialThe State Penitentiary Board to the depositor, but for some reason he failed to understand will hold another adjourned meeting Thursday of next week it. Yesterday he drew a check at which time the matter of leton his account and it was turned ting a contract for prisoners in down, SO the cashier explained. the penitentiary will be taken because the depositor had no up. The Reaves contract has money to his credit. The deposiexpired, and pending some actor, it is alleged, misrepresnted tion on the part of the Board, the facts to other depositors and the run was started. these men are being returned to the walls. Reaves pays $1 per To add to general disquititude day per man, while the Dickinanother depositor drew a check son contract pays only 50 cents for his balance. He made the per day per man. There will be check payable to himself and sent a fight over the proposition -to another to the bank to get the renew the Reaves lease OC to money. He forgot to endorse the make another lease, in view of check and payment was refused. the platform of the Democratic This depositor went to the bank party, which pronounces against and before the teller had an opit. It is possible, however, that portunity to explain why the a new contract will be let. check was turned down. he became very demonstrative. When he learned he had failed to enMiss Winnie Haynie and Miss dorse the check he did SO and his Berter Britt will open a subbalance was paid to him. scription school in the public school building in Prescott. on The scene alleged, did not seam June 22nd. All students who to calm matters and as the affailed to complete their grade in ternoon wore away many of the the public school, will have an smaller depositors demanded opportunity to attend to finish their money. Some of the baltheir grade and be prepared to ances were as small as $2.50 enter the next higher grade at and others much larger. When the opening of the public school the hour came for the bank to in September. close its doors, the officials closA general patronage of all ed the doors, but told all deposstudents is solicited, regardles itors the bank would resume busof whether they completed their iness at 9 o'clock in the morning. grades or not. Some of the larger depositors heard of the run and went to the bank in haste. They were FOR SALE-80 acre farm, imassured the run was the result proved. sandy soil, most all in of a misunderstanding and some cultivation: 3 miles from Blevins, $300. See Ellsworth. of the larger depositors instead

2. June 20, 1908 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, June 20, 1908

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NEGRO BANK CLOSES Offended Depositor Started a Story of Insolvency. Little Rock, Ark., June 20.-The Capital City Savings bank, the only negro bank in Arkansas, has gone into the hands of a receiver on request of Charles B. King, the cashier. Marvin Harris was appointed reiver by Chancellor Martineau. Because an illiterate negro had overdrawn his account and had his check turned down, he started the report that the bank was insolvent, causing a run. Several hundred negro depositors appeared before the institution claiming their money. There was only $2,000 in cash on hand and the doors were not opened. Liabilities are about $75,000, with assets considerably in excess.

3. June 20, 1908 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, June 20, 1908

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NEGRO BANK CLOSES DOORS Illiterate Depositor Starts Ramor that Causes Run Upon Institution. LITTLE ROCK. Ark., June 19.-The Capital City Savings bank. the only negro bank in Arkansas, went into the hands of a receiver today. on request of Charles B. King, the cashier. Marvin Harris was appointed receiver. Because an illiterate negro had overdrawn his account and had his check turned down. he started the report yesterday that the bank was insolvent. causing a run. Today several hundred negro depositors appeared before the institution claiming their money. There was only $2,000 in cash on hand and the doors were not opened. Liabilities are about $75,000. with assets considerably in excess. An application for a receivership for the People's Mutual Aid association, a life insurance company operated upon the industrial plan in connection with the bank, was also made. Mr. Harris was appointed receiver for the company.

4. June 20, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 20, 1908

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ILLITERATE NEGRO OVERDRAWS; STARTS RUN ON BANK LITTLE ROCK, Ark., June 19.-The Capital City Savings bank, the only negro bank in Arkansas, went into the hands of a receiver today. Because an illiterate negro had overdrawn his account and had his check turned down he started the report that the bank was insolvent, causing a run. Liabilities about $75,000.

5. June 20, 1908 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, June 20, 1908

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NEGRO BANK BROKE. Little Rock, Ark., June 19.-The Capital City Savings bank, the only negro bank in Arkansas, went into the hands of a receiver today. Because an illiterate negro had overdrawn his account and had had his check turned down, he started the report that the bank was insolvent, causing a run. Liabilities about $75,000.

6. June 22, 1908 The Prescott Daily News Prescott, AR
Article from The Prescott Daily News, June 22, 1908

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MERELY MENTIONED. By a premature blast near Scranton, Pa., five Italians were killed. In a mine explosion at Ellsworth Pa. ten miners lost their lives. Three miles from Greenville, Tex., Mrs. Henry Holtman succumbed to burns. Five indictments were found at New York City against the American Ice company. Several Alvarado, Tex., stores have been burglarized. Both cash and goods were secured. Mrs. F. V. Linder died at Beaumont from the effects of carbolic acid. Her husband died May 29. W. R. Hill had his left leg so badly injured at Cleburne in a railroad accident that death resulted. The International and Great Northern railway has has burned at Palestine, Tex., 100 old boxcars. At El Paso W. P. Hawkins was acquitted. He was charged with killing at Van Horn Charles Barber. For the second time, owing to lack of sidewalks, Brownwood, Tex., has failed to secure free mail delivery. In a passenger and freight train collision near Pendleton, Mo., on the Wabash railroad twenty persons were seriously hurt. An electric railway is to be constructed between El Paso and Las Cruces, N. M., fifty-four miles, by business men of the two cities. The Capital City Savings bank at Little Rock, the only negro banking institution, is 'a a receiver's hands. Ar illiterate negro overdrew his account. His check was turned down. This caused a run. several hundred deposit ors demanding their money. There was not sufficient cash on hand to pay all, and the doors were closed.

7. June 23, 1908 Tonopah Daily Bonanza Tonopah, NV
Article from Tonopah Daily Bonanza, June 23, 1908

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BANK BROKEN BY RUN. LITTLE ROCK, Ark., June 22. The Capital City Savings Bank, the only negro bank in Arkansas, went into the hands of a receiver today. Because an illiterate negro had over. drawn his account and had his check turned down he started the report that the bank was insolvent, causing a run. The liabilities are about $75,000.

8. June 25, 1908 River Falls Journal River Falls, WI
Article from River Falls Journal, June 25, 1908

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GENERAL NEWS. President Roosevelt accepted the resignation of Secretary of War Taft, to take effect June 30, and announced that he had selected Luke E. Wright of Tennessee as Taft's successor. Mr. Wright followed Mr. Taft as governor of the Philippines and was the first American ambassador to Japan. An explosion in a coal mine near Monongahela, Pa., resulted in the death of three men, the probably fatal Injury of two others and the entombing of 15, many of whom were thought to be suffocated. A jury found Carl Fischer-Hansen, the New York lawyer, not guilty of the charge of extorting $15,000 from Joseph E. O'Brien of Philadelphia. The Capital City Savings bank of Little Rock, Ark., conducted by negroes, is in the hands of a receiver. The thirty-second national saengerfest of the North American Saengerbund opened in Indianapolis, Ind. The government's suit for injunction against seven coal carrying railroads that transport anthracite from their own mines was argued in Philadelphia. Three men at Enid, Okla., accused of lynching a negro, were acquitted by a jury. Mrs. J. D. Tuthill of Brooklyn, N. Y., sister of J. S. Pomeroy, cashier of the Security National bank, Minneapolis, committed suicide by jumping into Lake Minnetonka at Breezy Point. Mrs. Mary Stuart Coffin, the only practicing woman lawyer in Detroit, Mich., committer suicide by taking laudanum. The plant of the Royal Coal Mine company at Argentine, Pa., was destroyed by dynamite, the loss being $20,000. An attempt to assassinate Gen. Piquart, French minister of war, was made by a man named Bellanger. The world's centennial congress held exercises at the grave in Glens Falls, N. Y., of William J. Clark, founder of the temperance movement in America.

9. June 25, 1908 The Mena Weekly Star Mena, AR
Article from The Mena Weekly Star, June 25, 1908

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ILLITERATE NEGRO MADE BANK FAIL Started Report it was Insolvent When Check was Turned Down on Account Which He Had Overdrawn. / Little Rock, June 19.-Three hundred negroes fought at the front doors of the Capital City Savings Bank, Fifth and Center streets, the only negro bank in the state, this morning. demand ing the withdrawal of their deposits, but the bank doors never opened. Chas. B. King, cashier, endeavored to explain to the people that their money was safe, but the demands were so insistent and the relief expected did not arrive in time for the opening, that King went into the Chancery court, where he made application for a receiver, Marvin Harris, a young attorney, being appointed. The liabilities are about $75,000, with assets more than covering. The deposits amount to $65,000 distributed among fully two thousand depositors. An illiterate negro attempted to overdraw his account yesterday, not knowing bis funds were exhausted, and started a report that the bank was insolvent when his check was turned down. This caused the run which left only $2,000 cash in the bank last night. The bank is capitalized at $25,000, only one-half paid up, and has been operating five years. The People's Industrial Aid Association and Ind Strial Life Insurance Company operated in conjunction with the bank. They went into the hands of the same receiver later.

10. June 25, 1908 The Greenville Journal Greenville, OH
Article from The Greenville Journal, June 25, 1908

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GENERAL NEWS. President Roosevelt accepted the resignation of Secretary of War Taft, to take effect June 30, and announced that he had selected Luke E. Wright of Tennessee as Taft's successor. Mr. Wright followed Mr. Taft as governor of the Philippines and was the first American ambassador to Japan. An explosion in a coal mine near Monongahela, Pa., resulted in the death of three men, the probably fatal injury of two others and the entombing of 15, many of whom were thought to be suffocated. A jury found Carl Fischer-Hansen, the New York lawyer, not guilty of the charge of extorting $15,000 from Joseph E. O'Brien of Philadelphia. The Capital City Savings bank of Little Rock, Ark., conducted by negroes, is in the hands of a receiver. The thirty-second national saengerfest of the North American Saengerbund opened in Indianapolis, Ind. The government's suit for injunction against seven coal carrying railroads that transport anthracite from their own mines was argued in Philadelphia. Three men at Enid, Okla., accused of lynching a negro, were acquitted by a jury. Mrs. J. D. Tuthill of Brooklyn, N. Y., sister of J. S. Pomeroy, cashier of the Security National bank, Minneapolis, committed suicide by jumping into Lake Minnetonka at Breezy Point. Mrs. Mary Stuart Coffin, the only practicing woman lawyer in Detroit, Mich., committer suicide by taking laudanum. The plant of the Royal Coal Mine company at Argentine, Pa., was destroyed by dynamite, the loss being $20,000. An attempt to assassinate Gen. Piquart, French minister of war, was made by a man named Bellanger. The world's centennial congress held exercises at the grave in Glens Falls, N. Y., of William J. Clark, founder of the temperance movement in America. Grand Army men hauled down a confederate flag which was hoisted by a printer in Ossining, N. Y. The Louisiana house of representatives indefinitely postponed consideration of the Doussan bill providing for .a referendum on state-wide prohibition.

11. July 3, 1908 The Olneyville Times Providence, RI
Article from The Olneyville Times, July 3, 1908

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Arkansas Negro Bank Closed to Avoid a Run. Little Rock, Ark-The Capital City Savings Bank, the only negro bank in Arkansas, went into the hands of a receiver on request of Charles B: King, the cashier. Marvin Harris was appointed receiver by Chancellor Marineau. Because an illiterate negro had overdrawn his account and had his check refused he started a report that the bank was insolvent. A run followed.

12. August 26, 1908 Pine Bluff Daily Graphic Pine Bluff, AR
Article from Pine Bluff Daily Graphic, August 26, 1908

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NEGRO AND HIS FRIENDS Treatment in the Home of Lincoln and the Home of Davis. The colored citizens of the St. Marion District Association, composed of the counties of Jefferson, Lincoln, Desha convened at Pine Bluff this week with the Rose Hill Baptist church, S. L. Woolfolk, moderator, and S. W. Dawson, recording clerk. This association is composed largely of the agricultural class of negroes of southeast Arkansas, and are as a whole industrial. Some of its members have held places in county and state of distinction, a good per cent own homes and farms and are doing well. They do nearly all their work by committee, as their form of government is Republican. The committee on the state of the country brought in and read before the association a very intelligent report on the condition of the country. It was musing to see and hear their report on crops, stock raising, accumulation of money, their banking accounts, the recent failures of their banks in Pine Bluff and Little Rock. Some of these people were members of both of these banks. It is claimed the bank failed in Little Rock for about $80,000 and in Pine Bluff for a smaller amount. Then came in the business and secret societies in their share of the failures. The scores run about like this: Pine Bluff Mercantile $50,000 Pine Bluff Unity Bank 60,000 80,000 Capital City Savings Bank Mossaic Society 10,000 Knights of Pythias for 2 years 14.000 What is known as the Taborians of this lost by a steal $10,000. The Sons and Daughters of Jacob composed of Arkansas, South Carolina and Mississippi stolen by one negro by the name of Crossland who was secretary and treasurer, the sum of $20,000. These sums amount to a huge sum of $244,000. What was peculiar about this $244,000 being stolen from the poor negroes, not a dollar of it could be traced to the white man's hand So the committee makes it appear that the colored brother, as a financial manipulator, is setting some Boss Tweed examples. We are watching these money movements with eagle eyes. The committee reports the church academies and colleges are doing well and calls for a better and fuller ministry. More industry, more home getting and more pitching out of

13. November 5, 1908 The Nevada County Picayune Prescott, AR
Article from The Nevada County Picayune, November 5, 1908

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CAPITAL CITY BANK SETTLEMENT Little Rock, Ark, Nov 3.This afternoon the books of the Capital City Savings Bank receivership, for the receiving of interventions of creditors will close in chancery court today. Fully 500 interventions have been filed ranging from $1 to $10.000. The receiver was of the opinion that not over 50 per cent of the assets are collectible.

14. January 15, 1909 The Nashville Globe Nashville, TN
Article from The Nashville Globe, January 15, 1909

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The outlook for the Negro Banks for 1909 assumes a most encouraging aspect. This is brought about from the fact that two states who are already far in advance with their banking business and banking concerns have chartered additional institutions. The recent organization of the Farmers' and Merchants' Bank in Palestine, Texas adds another Negro bank to the Lone Star State. The two older ones being located in Houston and Fort Worth, Texas respectively. The Palestine concern has a capital stock of $25,000.00 divided into five thousand shares of $5.00 each, a large number of which have already been sold. They have selected for president E. M. Griggs who was for many years associated with the Land and Improvement Company of Anderson County, while H. L. Price from the Palestine Plaindealer is the cashier. The other is the Pythian Bank and Trust Company organized and chartered by some active Pythians in the Volunteer State. The bank will be located at Memphis. The capital stock of this concern is $25,000.00 with the shares at $5.00 each. The stock will not be sold in any unusually large quantities. The idea being to give out only a small number of shares to each purchaser. Mr. B. J. Farnandis, of Memphis, a member of the K. of P. Grand Lodge, is the promoter of Tennessee's newest bank. He will have the greatest encouragement along this line. This gives Memphis two Negro banks. The desire to operate concerns is not stopping in West Tennessee. It has spread with a prairie-fire rapidity to the capital state. Persistant rumor has it that Nashville will have another Negro bank. The city is large, the Negro population equally as large with many thousands in money waiting active investment. The list of Negro banks has grown considerably. Last January the number was approximated at 37. This month the approximate runs up to 42, an increase of five new financial concerns now in operation. There have been four, however, to close their doors since last January: the Peoples' Bank of Philadelphia, the Unity Bank and Trust Company of Pine Bluff, Ark., the Capital City Savings Bank of Little Rock are among those known to have suspended. But the encouraging feature is that not one of the institutions caused a loss to the depositors and stockholders by closing. Persistant rumor has it that on account of lack of co-operation the Negro bank at Tampa, Fla., suspended, but the rumor has not as yet been confirmed. On Jan. 1st Negro banks to the following number were being operated. Four in Richmond. Va., two in Birmingham, Ala., one in Meridian, Miss., one in Mound Bavou, Miss., two in Vicksburg, Miss. one in Nashville, Tenn., one in Greenville, two in Savannah. Ga., two in Jackson, Miss.. one in Yazoo City, Miss. one in Indianola. Miss., one in Hampton, Va., one in Newport News, Va., one in Newborn, N. C., two in Memphis, Tenn., one in Chicago, III., one in Columbus, Miss., one in Salem, Va. three in Jacksonville, Fla., one in Norfolk, Va., one in Tuskegee Inst., Ala., one in Houston. Tex., one in Staunton, Va., one in Muskogee, Okla., (Continued on Page 6.)

15. January 22, 1909 The Advocate Charleston, WV
Article from The Advocate, January 22, 1909

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prarie fire rapidity to the capital of the state. Persistent rumors has it that Nashville will have another Negro bank The city is large, the Negro population equally as large with many thousands in money waiting active investment. The list of Negro banks has grown considerably. Last January the number was approximated at 37. This month the approximate runs up in 42 an increase of five new financial concern now in operation. There have been four, however, to close their doors since last January: the People's Bank of Philadelphia, the Unity Bank and Trust Company of Pine Bluff, Ark., the Capital City Savings Bank of Little Rock are among those known to have suspended. But the encouraging feature is that not one of the institutions caused a loss to the depositors and stockholders by closing. Persistent rumor has it that on account of lack of co-operation, the Negro Bank at Tampa, Fla, 808pended, but the rumor has not as yet been confirmed. On January 1st Negro Banks to the following number were being operated: Four in Richmond, Va.; two in Birmingham, Ala.; one in Meridian, Miss.; one in Mound Bayon, Miss.: two in Vicksburg, Miss.; one in Nashville Tenn.; one in Greenville, two in Savannah, Ga.; two in Jackson, Miss.: one in Yazoo City, Miss; one in Indianola, Miss.; one in Hampton, Va.; one in Newborn, N. C.; two in Memphis, Tenn.; one in Chicago, IiI.; one in Columbus, Miss.; one in Salem. Va.; three in Jacksonville, Fla.; one in Norfolk, Va.; one in Tuskegee Institute, Ala.; one in Houston, Texas; 0e in Staunton, Va.; one in Muskogee, Okla.; two in Boley, Okla.; one in Tampa, Fla.; one in Palestine, Tex.: one at Guthrie, Okla.; one at Oklahoma, City, Okla.; one in Columbia, S. C. The last three bring tue total to 42 which, however, is not certain. The financial man of the Globe has endeavored to get accurate information but some of the corcerns written to do not even reply to letters written when self-addressed envelopes are sent. Had four not closed the total would have been 46 for 1909 with the proposed four to open, (one in New Orleans, La., one in Springfield. O., one in New York City and one in Atlanta. Ga.), the total would make half-a-hundred for the Negro in less than 50 years of freedom. Mississippi still leads in point of number. with Virginia as a close second. There still remains but one bank operated by Negroes across the Mason and Dixon Line, this one is 10cated in Chicago, III.

16. September 8, 1909 The Log Cabin Democrat Conway, AR
Article from The Log Cabin Democrat, September 8, 1909

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NOTHING FOR DEPOSITORS Creditors of Negro Bank May Not Get One-Tenth. Only $4,000 is in the Receiver's Hands to Meet Claims of About $75,000. Little Rock, Sept. 8 -That creditors of the Capitol City Savings Bank, the negro institution which collapsed here a little over 1.year ago, will be lucky if they get more than IO per cent of their claims, it is the statement of Marvin Harris, the receiver of the institution. He says the liabilities amount to about $75,000 and he has collected about $4,000 which will be increased abcut $5,000, by the sale of the interest of Charles B. King, the cashier of the defunct institution, and his brother in the estate of P. J. King, which was turned over to the receiver after the failure. There are a number of claims held by the receiver on notes and other obligatious which have been through the lower courts with a judgment for the receiver and which have been appealed to circuit court. These will bring approximately $1,000 more, but it will be next spring before they can go through the higher court. The receiver thought he would be able to pay all of the liabilities, but the supreme court in its decision several months ago, in which it dissolved the injunction preventing M. W. Gibb, the president of the institution, from selling his property, removed the possibility of the receiver collecting a sum sufficient to make up the deficiency from him. The court at the same time