17850. First National Bank (Youngstown, OH)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
3
Charter Number
2693
Start Date
October 15, 1931
Location
Youngstown, Ohio (41.100, -80.650)

Metadata

Model
gpt-5-mini
Short Digest
e4319791

Response Measures

Capital injected, Full suspension, Books examined

Other: Consolidation/recapitalization via sale of new stock and community subscription ($2,000,000+).

Description

Heavy withdrawals in mid‑Oct 1931 forced the First National to close temporarily (Oct 15, 1931). Closure was driven by runs/panic tied to the simultaneous closing of the Dollar Savings & Trust Co. and City Trust & Savings (i.e., distress of local banks). The First National later participated in a consolidation and reopened as part of the Union National Bank on Jan 4, 1932. No receiver was assigned to First National; depositors were protected and the bank reopened after recapitalization and merger.

Events (3)

1. October 15, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals and panic prompted by the permanent closing of Dollar Savings & Trust Co. and City Trust & Savings Bank, producing runs on First National.
Measures
Temporarily closed pending consolidation plans; organizers secured $2,000,000 subscription to recapitalize and planned merger with Commercial National and Mahoning National.
Newspaper Excerpt
Closing of the City, Dollar and First... was necessitated by heavy withdrawals during the last few weeks, officials said.
Source
newspapers
2. October 15, 1931 Suspension
Cause
Local Banks
Cause Details
Suspension (temporary closing) to avert further withdrawals after neighboring banks closed and heavy withdrawals threatened liquidity.
Newspaper Excerpt
The First National was closed temporarily pending completion of plans for consolidation with the Mahoning National and Commercial National banks.
Source
newspapers
3. January 4, 1932 Reopening
Newspaper Excerpt
The new Union National Bank, formed by a consolidation of the First and Commercial National Banks, opened for business today with $8,000,000 cash on hand and more than $20,000,000 in deposits. The First National closed October 15 - with an announcement that it would reopen after consolidation.
Source
newspapers

Newspaper Articles (8)

Article from The San Diego Sun, October 15, 1931

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RUNS FORCE 2 BANK CLOSINGS Third Youngstown Institution Merged By United Press Ohio, Oct. 15. -The Dollar Savings & Trust Co. and the City Trust & Savings bank were closed for business today because of frozen assets and heavy withdrawals. A third bank. the First National. was closed temporarily pending completion of plans for consolidation with the Mahoning National and Commercial National banks. Directors of the three banks of the projected consolidation announced that $2,000,000 had been subscribed overnight by commercial and industrial interests. Resources and liabilities of the The PLAZA Dollar Savings bank are listed in Fred Storry. President the last financial statement at John D. Owen, Manager $26,202,778 and those of the City Trust bank at $19,220,989.


Article from Evening Star, October 15, 1931

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YOUNGSTOWN BANK MERGER PLANNED Three to Consolidate as Two Others Permanently Close Following Run. By the Associated Press. YOUNGSTOWN, Ohio, October 15.Formation of a consolidated bank here to include the First National, the Commercial National and the Mahoning National was under way today following the permanent closing of the City Trust & Savings Bank and Dollar Savings & Trust Co. today and the temporary closing of the First National. Closing of the City, Dollar and First. the latter two of which have been under joint management. was necessitated by heavy withdrawals during the last few weeks, officials said. Plans Due This Week. The City Trust had resources of $18.260,000 and the Dollar's resources were $23,242,000 September 29, according to bank statements of that date. Plans for the consolidated bank are expected to be announced in detail by the end of the week. It will be reinforced by $2,000,000 of new capital which has already been subscribed. The Youngstown district's principal industrial and mercantile establishments and many leading citizens joined in the subscription.


Article from Brooklyn Eagle, October 15, 1931

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Merger Follows Closing of Three Youngstown Banks Industrial and Commercial Establishments Unite to Aid Youngstown, O., Oct. 15 (P)-Formation of a consolidated bank here to include the First National, the Commercial National and the Mahoning National was under way today following the permanent closing of the City Trust and Savings Bank and Dollar Savings and Trust Company today and the temporary closing of the First National. Closing of the City, Dollar and First, the latter two of which have been under joint management, was necessitated by heavy withdrawals during the last few weeks, officials said. The City Trust had resources of $18,260,000 and the Dollar's resources were $23,242,000 Sept. 29, according to bank statements of that Plans for the consolidated banks are expected to be announced in detail by the end of the week It will be reinforced by $2,000,000 of new capital which has already been subscribed. The Youngstown dis trict's principal and mercantile establishments and many leading citizens joined in the subThe First National will remain closee for two or three days. it was announced. until details of the consolidation worked out. Meanwhile the Commercial National and Mahoning National remain open. As soon as the consolidation plan is completed. all three will continue business under one roof. The Mahoning Savings & Trust Company. affiliated with the Mahoning National. will continue as a separate institution. Resources of the merging banks as of Sept. 29 were given follows: First National. $22,782,000: Mahoning National $7,925,000; Commercial. $9,284,000. Resources of the Mahoning Trust were given as $3,181,000. Jersey Bank Closed Toms River. N. J., Oct. 15 (AP)The Toms River Trust Company did not open its doors today. The notice of the bank's suspension was made public at midnight last night by President A. M. Then who said the heavy withdrawals of State and municipal funds forced the closing. The claims of depositors, President Then declared. would be paid in full. Pennsylvania Bank Fails West Newton, Pa., Oct. 15 (P)The Farmers & Merchants Bank of West Newton was placed in, the hands of the State Banking Department today. John D. Swigart, chief examiner of the department, said the bank was closed because of heavy withdrawa and to protect depositors. He said deposits totaled about $900,000 and were approximately $1,400,000. Small Banks Closed Trenton, N. J., Oct. 15 (P)-G. H. Markley. Deputy Commissioner of Banking and Insurance. announced today the Toms River Trust Company and the Wildwood Trust & Title Company had been taken over by his The Wildwood institution held deposits of $761,141 and the Toms River concern $163,591. Savings Bank Taken Over Tarentum Savings Trust Company was closed today and taken over by the State Banking Department. Examiner John D. Swigart seid the bank had deposits of about $1,800,000 and of $2,300,000. Harrisburg Failure Commercial Trust Company, one of Harrisburg's banks, was taken over today by the State Banking In its last statement the bank listed total resources of $1,606,000 and deposits of $686,000. 12 Southern Failures Columbia. S. C., Oct. 15 (A)Twelve in southwestern South Carolina failed to open their doors today. Albert S. Fant, State Bank Examiner, announced. The banks are the Bank of Western Carolina of Aiken and its nine branches North Augusta, BatesBarnwell, Blackville Lexington and Ellenton and the Bank of Williston and the Bank of Graniteville Assets of the Western Carolina Bank and its branches were placed by Mr Fant at $3,000,000. the Bank of Williston at $350.000 and the Bank of Graniteville at $150,000. Mr. Fant said collections in the banks had been anything but good' and that he advised last night that they not open today. Closing Stock Prices High High. Low High High. High. Close. 38% Fox Film Purity 1700 Un Freeport Tex 313000 Volume to 2:10 000.000 Yesterday's Sales Radio 9300 Gab Snub Low. High. Low. Close. Radio GenAsphalt Abitibi Baking Raybes 1.60 71% Adams Ex 600 Bronze Reading 22% Adams 100 Cigar Real 26 Wabash Rumely Elec Rem Rand 109% 2100 spl 60 Mot Walworth 10% Foods 10600 Ward Alaska 40 10900 GG&E 1800 Warner 2400 GG&E Reyn Met Warren Alleg Mills Reynolds WarrenF&P Allied Ch 9300 Mot ReynoldsTB 3814 Wesson Oil Allis Chalm 103% Mot Richfield West Amal Leather. 1200 Dairy Amerada 29% Western Pac AmBkNote GenR&U Rutland West Pac West Union C&Fdy Gillette Safeway WestghseAB Tiling Gimbel 30% Westgh AmEurope GimbelBr Weston E1 Glidden WestvacoCh Gobel Adolf Southw. Wheel AmHide&L GoldDust Schulte White Goodrich Seabd A WhiteRk Internat Goodyear Goodyr 2½ Wilson AmM&F Gould Nat In Wilson Co Servel Inc Woolwth Grand-Sil Worthington 24 AmP&L Grand Shatt 80% 50% Wrigley Grant Shell Un GtNorth Shubert Thea Am Republics 3% Yellow Truck. 600 6% 1% Grigsby Gru. Simmons 78 19 Youngstown 100 22 22 22 Simms Pet Saf Hackn Sinclair 1% 14 Zonite Pr 1300 Helme SkelO Smelt Sales later edition Hershey Hollnd Dividend. Ex-Rights. And Extras. And Extras AmSol&C Homestake7.80 able Stock. Including Payable Cash Stock Paid year Houdail-H rate. Lows close. South Dividend and Ex Rights deducted carried from net change. HouseF Houston Howe Snd Spaiding Hudson Spencer DAILY MARKET MOVEMENT 13½ 3½ Hupp Mot Spicer 132 112 Spiegel 1/2 ON N. Y. STOCK EXCHANGE 80% 10000 89 Central 1300 1/2 79 Std Indian Ref Wool Indust 1/2 The following table shows the number of advances, 8% 2% StdOCal Ingersoll 50 12% Anaconda StdOExp declines 1931 and the issues unchanged. together with new Inland Stl highs 36 2.40 and lows: Anchor Inspiration Archer Un- New New Sterling Armour Gain Loss changed Total Sterling High 2% Armour Oct. 21% Stewart 84 409 92 585 Interlake 14 29% Asso Stone&Web 98 AssoDG Studebak Oct. 10 203% Atchison Carrier 40% Superht Atchison IntHarvst 23% Oct. 9½ 2% Tenn Corp Powd IntMatch Texas Corp AuburnAut IntNickCa 193 Aviation Paper Tex Paper 27% Baldwin Third Balt 410400 10500 ThirdN1 Barnsdall 398 Interst 81 Beatrice 326 Investors Eq 100 Timken BeatriceCr pf7 181/2 18 Transam 80% Trans 36 Jewel Tea 30 29 29 Bendix Tri-Cont Johns-Man 12600 Tri-Cont 88 Trico 86 123% Kan City Knox 64 728 33% 3½ Twin 20% Kaufm Borden Kayser Ulen 30% 9% Kelly 3% Botany Mills. Kelsey 206 22% Kelvinator 155 24½ Briggs 10 Kennecott 190 69% Kinney Kresge 12(S) 27% 9300 UnTKCar 15 3% Bruns Balke. KrogerGroe 115 BrunsTerRy UnAir&T 20% Bucyrus 91 Biscuit Bucyrus Sept. Carbon Budd Mfg Lenigh 45 Lehigh UnitedCor Sept. 15% Bulova Lehman UnitedCor Sept. 15% Butte LigMyers 18 Butte Sup. Loco (S)202 69% 12% Byers Co Liquid Carb Inc Loose-W 11% 3½ Hec US&ForS Lorillard 16% Camplw&C USGypsm Lorillard 45 CanadaDry Lou-Nash (S) Can Pac Alcohol. 19 Ludlum su Case 36700 USPipe 36 McCallCor 25% CentAgur 51% McCrory 100 Rubber. Century McKspt USSmelting Cerro Cop McKess Cert McK&R Checker Cab. McLellan St 150 114 700 1231/2 Ches & O Mack Truck Chesap Macy Co British Reserve MarshallF ChiMSP&P Mathieson Store Shows Increase Maytag 35 Maytag 50 Melville London. Oct. 15 (A)-The weekly Miami Cop statement of the Bank of England City Stores Cont Pet. 22% Squip Minn M P. shows the following changes in Kan pounds: Pacific Total reserve increased 2,794,000: Pac circulation decreased 2,615,000; bulMonsan Mont Ward lion increased 179,000: other securities decreased 1,760,000: public deCarbon posits increased 3,847,000; other deMotor Prod ComCred Motor Wh posits decreased 9,329,000; notes re35% 20 Mullins 10 serve increased 2,734,000; govern34 Munsingwr 18% Murray Cor ment securities decreased 6,500,000. The proportion of the bank's re100% Com&So Nash 40% Mot 20 19 serve to liability is percent 14% 37% 20 Consol compared with 36.96 last week. Rate Bis 3% Cons of discount percent. NatCasnR 109% Consol Pr 107 Consol Dept French Bank Statement 15% Cons Distill 20 Parts, Oct. 15 The weekly 1% Radiator statement of the Bank of France 30 Steel shows the following changes in 3% Supply francs: 40 Cont Surety sellers Gold increased 726,000,000 sight Nevada Cp balances abroad increased 898,000.NYCentral 000; bills discounted home increased 778,000,000 bills bought Cont Motors. NYNH&H abroad increased 153,000,000 adCont NYNH&H Cont vances decreased 72,000,000: circulaOnt 86% tion increased 334,000,000 current 18 Coty Noranda 1200 20 Rate of discount 2% percent. 34% 25 CrC&C 217 Crucible Am 100 Curtis Am Grain and Provisions 118% CurtisPu pf Am 5% Curtiss Pacific 60% CHICAGO BOARD OF TRADE Curties Previous Ohio on 1400 Open. High Low. Close Close 23 Davison 5% Wheat Oliver 13% Deere Omnibus Dec 49% 50% 49% 50% 50% 93 Hud Otis DelLack&W Mch 52% 53 102 Steel 45% Den&RioG May 55 53% 54% 54% Detroit Corn Match Light 34% 35 35 6% Dome Mines Packard 37 36% 24 37% Dresser May 39 39% Dresser Oats 78% 42% Drug Parmelee Tr. Duluth 22% 21% 21% Pathe Dunhill Int. May 24% 24% 25 Pathe Dupont 26500 Patino Mines Rye 124% 109 Dupont db 110 Penick Dec. 38% 38% 39 38% May 41% 42 41% 41% 185% 93 Eastman 5600 108 103 Dix 21% Eaton Lard 69 149 Dec. 6.55 6.55 6.47 6.50 6.47 20 Auto 1% Co Phelps Phillips Pet Produce Exchange Stocks 66 Pierce 60% 16% 12900 High Pierce Pet 45% Admir Alas Pillsbury Pitts Coal Juneau 35% 18% EquitBldg Coal 39% 10% Erie Come Cumulative Engle Bird 49% 26 FedL&T Prairie Motor 7% Prairie Mining 30 FedWatS Imperial 63 = 2½ 10214 Tire Serv Western Tel PullmanCor TOTAL 18 FourthNI Oil 700 Stocks


Article from The Springfield Daily Republican, January 5, 1932

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NEW YOUNGSTOWN BANK OPENS First National, Closed in Fall. Merges Commercial Union and Commercial National banks, opened for business and more than $20,000,000 deposits The closed Octhat would reopen after a consolidation


Article from The Miami Herald, January 5, 1932

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MERGED BANKS OPENED IN OHIO Institution Has Deposits and Cash of $20,000,000 YOUNGSTOWN, Ohio, Jan. 4 The new Union National Bank, formed by a consolidation of the First and Commercial National Banks, opened for business today with $8,000,000 cash on hand and more than $20,000,000 in deposits. The First National closed October 15-with an announcement that it would reopen after consolidation. Later it was explained that the bank was solvent, but had been closed to avert a run because of the closing of the Dollar Savings and Trust Company. The City Savings Bank closed the same day Efforts are being made to reopen both the Dollar and the City The opening of the Union National to use ly third of the tied up by the closing of the three banks.


Article from The Daily Illini, February 17, 1932

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(Continued from Previous Issue) Comparison Youngstown and Sioux City Plans In practically all such the whole the proprietary capital, surplus, and undivided set aside an offset for the losses and doubtful assets of the closed bank. In the of the First National bank of Youngstown, Ohio, which recently by with the Commercial National bank of that city, after the former bank had suspended, found necessary to set aside the whole capital structure the two banks, amounting $5,500,000 offset the losses and doubtful assets the two institutions. This made necessary the recapitalization of the new bank by the sale of stock for cash in the munity to the extent $2,500,000, which divided between capital and surplus for the institution. If possible to raise sufficient amount capital and surplus community by the sale of stock for cash, not always necessary to enter into agreements with the depositors for the control of part of their deposits for waiver portion of the deposits for the purpose of securing capital stock and for liquidating frozen assets the bank. Youngstown banks organized the Union National Bank of and the $2,500,000 of capital and surplus raised by the sale of stock, and with the cash and United States bonds of the two old banks, this bank able with about $8,000,000 in cash items against deposit liability of some In cases where the total capital structure is not sufficient, however, provide for adequate margin against losses doubtful assets through orderly liquidation, necessary for depositors to agree some form of waiver or reduction of their deposits under trustee agreement order to add to the proprietorship items for this purpose. In the form for state banks under the Minnesota state banking department, per cent reduction both current savings deposits may called for, order to provide funds for the liquidation of certain of the doubtful assets of the bank. For the remaining 50 per cent of such deposits the depositor accepts three certificates of deposit, bearing four per cent interest, but repayable one, two, and three years, after the date the re-opening the bank. All moneys collected through the liquidation of doubtful or slow assets of the old bank, distributed from time to time pro rata among the depositors whose funds trusteed in this manner, and only after the depositors have been paid in full do the stockholders of the old bank share in such distribution. In the plan used recently by the First National Bank Sioux City, (Continued on Page Five)


Article from The Indianapolis Times, July 12, 1932

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BANKS REOPEN THROUGH HELP OF DEPOSITORS Three Closed Institutions in Youngstown Saved by Co-Operation. By Scripps-Howard Newspaper Alliance YOUNGSTOWN, O., July 12.-On Oct. 14, 1931, Youngstown's three largest banks, with deposits of $60,000,000, failed to open. By Thursday of this week all these banks will have been reopened. Back of these facts, believed to constitute something of a record in bank recovery, is a story of community effort and co-operation. On the morning of Oct. 14, 1931, Youngstown awakened to find that only two of its five large banks were doing business. Both together were about the size of any one of the three closed institutions. The larger of the two remaining banks, the Mahoning National, was in good condition. Persons acquainted with the banking situation knew that the other, the Commercial National, was tottering and that its failure probably would be only a matter of days or weeks. Strain Too Great It was the same story that had been told in many other communities. Building and loan associations had ceased paying money to depositors. Bank depositors rapidly were withdrawing their funds. The banks could not stand the strain. before the day was over, plans were under way for bank reopenings. Depositors' meetings were held in various sections of the community. Work was started first on the First National bank, third oldest national bank in America. Stockholders and depositors got together. Federal bank examiners added their co-operation. Stockholders took big losses. New stock was sold. Some large deposits were promised. The Commercial National was absorbed and depositors in that institution saved. A new bank known as the Union National was chartered and opened in the banking rooms of the old First National. A federal bank examiner was made president. Depositors did not lose a penny. Depositors Give Help The problem of the other two banks was more difficult. It was necessary there to tie up some deposits over a period of time. To do this, it was necessary to obtain consent of the depositors. These two banks, the Dollar and the City, were state banks with thousands of small depositors. The task of obtaining depositors' consents for the reopening of the Dollar and the City was conducted like a Community Chest drive. Teams were appointed. Depositors were called on by volunteer solicitors, through the mails and newspapers. This task consumed months, but it went ahead steadily and successfully. In each instance, ap-


Article from Daily Mountain Eagle, August 31, 1932

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MEMORY In memory of our darling daddy departed this life August 1932. He leaves mourn his death his wife, five sons, three daughters, one sister, six brothers host of relatives and friends. He laid to rest at Sulphur Springs with Bro. Mullinax and Bro. Jim Kimbreli charge of and Professor Flether Gurganus in charge of We want to thank for their sympathy and kindness during the sickness and death of especially Scrivner and Dr. Stephenfor their faithful also thank our friends for the beautiful floral offerings. Daddy, dear, has passed away, He has gone from earth to stay, He with the angles And forever freed from care. His eyes are closed, his voice is His place at home cannot be filied, But he has crown, also harp, And doesn't suffer pain sharp. Dad was always true and kind, A better friend we'll never find, But God's must be done, Dad's pleasures are now begun. Dad loved his children, his companions Dear, But his home come not be here; He loved his blessed Saviour more; He's resting on the shining shore. was hard to say "goodbye" to Dad, It makes all very But when we die surely go, To our Dad that we loved so. Written by his daughter, MARY ANN BARRENTINE POWER OF COMMUNITY EFFORT Youngstown, record in bank recovery wherein community effort was the greatest single factor is believed to have been made in this city recently. Three of the largest banks with deposits of failed to open October 14, 1931. The two other banks, both together about the size of one of the three that failed, open. The larger of the two the Hahoning was in good condition, Act. said acquainted with the local persons banking situation that the smaller bank, Commercial National, was in tottering condition. The same conditions were prevalent Youngstown that were experienced in other places. Building and loan sociations were obliged to stop paying money to depositors. Bank positors acquainted with the serve banking began pulling down upon themselves the structure which held their savings and credit privileges by withdrawing their personal funds. being able stand the strain, the banks closed Immediately on the very day that they closed, cooperative plans were put to work in various parts of city and community to reopen the banks. Because of the character and size of the deposits in the First National Bank, which the third oldest America, the community effort was concentrated on its recovery. Finally, with the aid the depositors, operation of the federal bank examinthe sale new stock and old stockholders sustaining big losses, the promise of deposits the absorption of the Commercial National Bank by new bank known as the Union National, resumed in the rooms of the old First National without penny's loss to the depositors. The problem of opening the other two banks, the Dollar the City, which are state was much more difficult. The collective princiof banking was unknown to their thousands of small depositors, so in order get their consent reopen these banks concerted educational was made. Months were devoted to the task by teams, committees, the use of the mails and newspapers. Ninety per cent of the depositors in these banks finally signed agreement allow their funds to be tied up over period of time. Some help was from the Reconstruction Finance Corporation without the persistent and intelligent community cooperation neither of these banks could have reopened. The Dollar Bank resumed about two months ago, freeing all checking counts part the savings counts. City Bank opened on July 1932, freeing part of the accounts and part of the ings, the remainders being held porarily inactive. Though in each stance stockholders sustained heavy losses, there be no loss to any depositors. It is the opinion of many sound business men that there would be but few permanent bank failures the cash depositors would become and, by withdrawing their funds, destroy the structure of their erstwhile confidence. run on bank by its supporters like munity home dwellers setting fire their just about rational. By the very community by which bank made strong, be destroyed. In principle, not always in bank is munity the community, by the and for the communiOf there are exceptions, in principle. ELDRIDGE GUTTERY IS CALLED BY DEATH On Thursday, July at James Eldridge Guttery passed away from this earthly to ward. The deceased, known throughthis section of Uncle Eldridge, had been in failing health many months and his family and friends had felt that with his advanced age would be difficult him regain his health. He had been confined to the house but was able to sit and talk with friends and neighbors up to the day of his death. It has been the fortune of but few men to have rich leave behind more worthy memory that the good fortune Uncle Eldridge. He had lived in this community for nearly 40 years, being of that sturdy pioneer stock that is SO fast passing among us. Few men more universally loved than this good man Sincerely religious, honest with his fellowman, congenial with all people, industrious and frugal, public spirited without hypocricy sham, he set an example of upright living which was in every way exemplary and noble. James Eldridge Guttery was born November 1852 in Walker County, Alabama. first marriage was to Miss Callie Brazwell in the year 1873. To this union was born six children, three and three girls. On December 11. 1888 his companion passed away and he subsequently married to Miss Raycroft, September 1889. To this union six children were born. In deceased moved to Texas settling near DeLeon at which place he lived for five years and then moved to Jakehamon where he has since resided. Here he been useful worthwhile citizen, alpromoting best interest of his community. He has seen this community grow from small and thinly settied place to well developed community. He served many years as member of the school board in which capacity he was instrumental in curing the location and splendid school building which this community now has. He survived by his good wife, Mrs. Guttery and nine children as follows: Mrs. Maloy, Blair, Okla.; Mrs. Davenport, California; Mrs. Fort, Worth. Texas; Guttery, Giard, Mrs. Effie Kimbrough, Phoenix, Ariz.; Mrs. Mary Gregory, George West, Mrs. Sallie Browning, Desdemona; Roy Guttery, Desdemona. Two children died in infancy oldest son, Guttery died at Quitaque this year. He survived by twenty grand children and three great grandchildren. In this early manhood he professed hope Christ and joined Primitive Baptist Church of which he mained faithful member until death, serving for many years and until called away as deacon. The funeral was conducted at his home under the canopy of the massive oak trees his beautiful country home. Elder Short conducted the funeral where the great concourse of people gathered to show their last respects and the banks of beautiful flowers upon his casket did attest the esteem in which our departed friend held The burial Desdemona cemetery. His family, and his church miss him but memory will ever be blessing and benediction to all will the grief assuage of those who left to mourn his Free Press.