Newspaper articles show heavy withdrawals in early March 1933 (linked to the New York bank holiday / nationwide crisis), the invocation of a Virginia banking holiday and the American Bank & Trust Company limiting withdrawals. The bank closed in mid-March 1933 and remained closed under receivership thereafter; multiple articles describe receivers, litigation, RFC loan negotiations, and liquidation activity. No article indicates the bank reopened as an operating bank.
Events (5)
1.March 5, 1933Run
Cause
Macro News
Cause Details
Withdrawals precipitated by the New York bank holiday and a cascade of bank closings and holidays in other financial centers, producing strain on Virginia banks.
Measures
Limited withdrawals on savings accounts (passbook contracts) to $10 and other restrictions on withdrawals.
Newspaper Excerpt
considerable sum was withdrawn yesterday from banks... The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10.
Source
newspapers
2.March 13, 1933Suspension
Cause
Government Action
Cause Details
Statewide banking holiday/proclamation by Governor Pollard (in response to bank holidays elsewhere and the New York closing) and resulting suspension/closure of bank operations.
Newspaper Excerpt
The bank was closed... depositors who withdrew preferred claims based on alleged insolvency who made deposits on March the day of the bank's closing...
Source
newspapers
3.March 31, 1933Receivership
Newspaper Excerpt
the American Bank and Trust Company, against which receivership efforts failed last night, remained open only for such limited business as allowed under the president's proclamation declaring bank. Judge Julien Gunn... vacated the order and continued hearing on the receivership action until Tuesday morning.
Source
newspapers
4.June 7, 1933Other
Newspaper Excerpt
plan for the organization of new bank... the plan suggested by the Reconstruction Finance Corporation... reorganization of the bank on basis which will serve the best interests of the depositors and other creditors. The plan for the organization of new one which being put effect all the country...
Source
newspapers
5.January 4, 1934Other
Newspaper Excerpt
Layman and Byrd Urge Action to Protect Depositors of Closed Banks... criticized the amount paid receivers for the closed American Bank and Trust Company of Richmond, which was declared by Mayor Bright to be 'shockingly exorbitant.'
Source
newspapers
Newspaper Articles (24)
1.March 5, 1933Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Roosevelt Warns Invoke War-Time Power As Hail To Meet Crisis 250,000 Inauguration; Two-Day Holiday Declared For Virginia's Banks
Pollard Cites Pressure; Federal Reserve Heads Summoned by Woodin
Action by en Only After Banks in New York Are Closed by Temporary Holiday
Order Is Preceded By Discussion
Bankers AdvisReserve ed Moratorium Forced by Outside Influences Crisis Over S. in
A mandatory bank holiday in Virginia for Monday and Tuesday was last night by Governor proclaimed while in Washington atPollard, tending the Roosevelt inaugural ceremonies. this power, GovIn exercising Pollard said his action was ernor taken upon the recommendation of Reserve banks of the the Federal district. "Since making my statement of Friday night," the Governor's an"there have nouncement been unforeseen developments New York and in other financial centers of the country where bank holidays have been declared. night Governor Pollard Friday necessity day view of Virginia's law permitting banks to restrict withdrawal of deposits, subject to approval the State Corporation Commission Pollard's statement last night, in reference to the New York bank holiday development, which included closing of the New York Stock Exchange and Cotton Exsaid: "This new development changes the and imposes an undue burden upon the banks of Virginia. "While Virginia has statute which under less critical circumstances would meet the situation through application of the banks to the Corporation Commission, the machinery incident to the operation of this law would cause delay which must be avoided under existing unprecedented conditions. "In order, therefore, to relieve the banks of the necessity of making separate applications with the recommendation of the Federal serve banks of this district, declaring legal holiday operative for Monday and Tuesday. March and through the State and binding all the banks." Governor Pollard's announcement of the two-day banking holiday came few hours after Richmond bankers conferred at the Federal Reserve Bank of Richmond, the conference being attended by M. Bristow. State Banking Commissioner, and Assistant AttorneyGeneral Collins Denny Jr. Virginia remained one of the last States to declare banking holiday. and the closing was forced upon banks because of the pressure outside influences, was learned last night. Most Virginia banks maintain balances in New York City. The sult of the closing there was that New York corporations with deposits here drew on Virginia banks, which in turn saw part of their funds tied up in New York. The strain on Virginia banks began with the declaring of bank holidays in Maryland, West Virginia, Kentucky and Tennessee, neighboring States, and the closing of large bank in Washington, Despite this ring drawn around the Old Dominion, this State maintained normal banking until the New York closing precipitated crisis which caused member banks of the Federal Reherve Bank Richmond. in the interest of their own depositors, to recommend State-wide closing for two days. The New York holiday was proclaimed for yesterday and tomorrow. Reopening of New York banks Tuesday would clarify the Virginia atmosphere, as well that of other States, was stated last night by local banker. considerable sum was withdrawn yesterday from banks, but there was action suggestive The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10. learned yesterday that the Federal Reserve Bank during the past ten days has lent
Continued on Page Seven.
Call for Discussion of Bank Situation Comes Just After New SecreGoes Into Office tary
2.March 31, 1933The BeeDanville, VA
Click image to open full size in new tab
Article Text
LAUNCH PLANS FOR NEW BANK IN
Would Make Percentage of Deposits of American Bank; Receiver Effort Fails
RICHMOND, Va., March Plans for the formation of new National bank that would make available immediately from 20 to 25 percent of the deposits the American Bank and Trust Company were being discussed here today Meanwhile, the American Bank and Trust Company, against which receivership efforts failed last night, remained open only for such limited business as allowed under the president's proclamation declaring bank. ing holiday. Judge Julien Gunn of Richmond Circuit court who yesterday had granted the petition of Salle. Jr., for the appointment of receivers last night vacated the order and continued hearing on the receivership action until Tuesday morning. Officials of the bank, the Richmond Clearing House Association and the city of Richmond were among those who voiced their protests of the court's Maxwell Wallace. counsel for the federal Reserve Bank of Richmond, joined counsel of the American Bank and Trust Company in asserting that receivership penalize the depositors who had placed $500,000 in special trust accounts since the bank holiday with the that the money could be withdrawan at will Details of the plan to form Na. tional Bank were disclosed by James Mullen. counsel for the American Bank and Trust Company. who said that he had asked by organizers of the new institution to serve RS president. The plan of reorganization as prescribed by the Reconstruction F1nance Corporation. Mr. Mullen said. provided for $600,000 common stock subscription, $100,000 of which would be used as reserve, to be supplemented by preferred stock subscription by the R. $500.000, giving the bank A $1,000,000 Mr. Mullen said he believed that the 'only question of doubt whether 20 or 25 per cent will be made available at once in the new Oliver J. Sands, for 33 years president of the American Bank and Trust Company in commenting on the new bank plan said ne was in full accord the plans which may be approved and adopted by the federal government. Whatever seems to be the best for the depositors, he added. "has my approval. At the hearing last night statement by Mr Sands was read into the It Negotiations are in progress with proper officials of the United States Washington looking to the reorganization of the bank on basis which will serve the best interests 01 the depositors and other creditors.
3.June 7, 1933Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
collateral for This an encouraging indication The complete text of the statement by Oliver Sands president of the American Bank and Trust Com pany organization years ago, "At the meeting of the stockholders held on May full report that time The of the bank has been and not until June was the report of the available the directhe "The directors officers have not had the opportunity to make an amination of this report in every detail, being very voluminous docucovering of assets and liability and making up over the would be contrary all good public the names of the borrowers and their information relating their private affairs. and it. might work great injury to debtors to have publication their indebtedness this institution. as it would misunderstood and cause action by others which would embarrass individuals, firms and corporations which have dealt with us in confi dential way. disclose such details of the report would be to betray business which standpoint of good good business do not right my deal very frankly with the stockholders bringing such salient and important results this examination your tention affects the financial standing of the bank reported by the Estimates of Examiners. desire that these estimates are made by the not in by the and in which they are familiar and the of by the examiners are much than have ever those most familiar the affairs of the The duty facing the aminers was appraise assets on the market April The slight change in conditions which has already been experienced has appreciated many the sets, both directly held and held as "The did not criticize the and directors. the large capital the the credit standing the concerned and the value the collateral. this not venture out proportion to the of conservative This list directors, course, means the directors the bank on the 15th April and not the that have recently been appointed by the depositors' only to say that the (doubtful and estimated) the basis present day and prices. Already the conditions have resulted the value the assets both owned and held collateral by the bank. With of the business improvement reasonable rise real estate these figures would necessarily be adjusted upwards. Obligations where moral are highly regarded and where are sands the decrease the value should not make the loan valueless. for the character the citizens constitute an intangible asset which the not justified taking into but which very sound and the loans are liquidated report in great and length the management the They make no comment After of study and consideration as what would the best the this bank and after the advice of the highest authorities the the approval of the nance Corporation the Federal Rethe Clearing House banks of the City and upon the dation exhaustive the has that the terest this bank new bank be for the purpose assets and business the institution for the benefit its creditors would seem hardly necessary say that anything other than orderly the assets the would in loss and that many the bank further secured handled orderly and dollars which on this market. appear intelligent handling fully This experience this bank and by all others who deal credits
Outlines "The plan for the organization of new one which being put effect all the country the reports from those already established are most new bank will be organized for the purpose creating type of advance will be made by the and upon the the bank that the this bank will placed their credit the such of their deposits in this
Board of Directors Report To American Stockholders
Continued From First Page.
Loss estimated examiners REALTY real holding tracted. Owner 95 parcels of real estate for company con-
Original cost of properties $1,711,974.79 Recent appraised value Amount HAMPTON GARDENS DEVELOPMENT tirely owned Holding pieces real estate improved and unimproved. All taken for debts acquiring value Mortgages outstanding Appraised of properties Amount Loss estimated examiners assets the bank the date the examination and doubtful shown by the date Loans and Main Office Branches Past due Loans Bonds and Securities Overdrafts Shortages Accounts Receivable Escrow (Debits) Remittance Accounts and Securities 1,642.70 2,376.30 Debit against Savings and American Trust of Wm. 3,000 Barclays in Exchange 00 600 capital of the bank at this date was Surplus Profits Reserves losses and depreciation
Total From this see losses estimated the examiners are $33 less than the reserves the institution the management bank Under head and quote the lowing from report kept in book of directors stockholders' Did you inspect the minutes of directors' and stockholders' meetings since important received from supervising far as know spread the minutes? examination Federal Reserve State and the board directors? Executive discounts directors and their firms specially acted upon the there active Discount Committee? Are minutes kept action taken by Book over active Examining Are the not completed acted officers directors acted upon as answered in the in the question preceding There examiners' report the department They that and found possession proper includes department as well as safe custodian examiners their report the following examiners public's best the this through that Examiner of Banks and (Virginia) by Respectfully submitted
HARRIS Chairman. Board Directors HART. bank as may be possible from the this loan. The new bank will start out out any obligation with fresh and capital and The earnings the established which will be able take over and from service will render the tion of the old bank will make this Institution success from the start and with its facilities contacts with the customers the old it should render at much lower the the old bank than be possible any other closing this report the will repeat the statements heretofore made the causes leading closup the ing of and its failreceive license reopen. The consequences of this depression have been serious and fatal in many the entire nation. banks have been the victims Only One Failure "Richmond fortunate that has only one bank that was seriously affected by the heavy withdrawals prior March In many cities banks were and the intelligent self-interest has induced great consideration the part the people and the for the number of the city of Philadelphia and throughout Pennsylvania have been an additional period months work out their plans here the many and depositors this bank for their kind expressions their great patience and considera- responsibility for any other form liquidation be assumed by those considering the than tors who will be directly such the that responsibility of may permitted add personal word to this would say for silent pending the of report has been source of very great regret passed through time acute business depression. This not be better shown taking different stocks on the New Stock Exchange On January 1930 they were valued In December 1932 the were valued therefore, that the estate and loans held by this bank should depreciation Already there improvement April 15. statistics lists 421 whose been 64 per cent from April Demands Cited. "During the fall the culminated in an exhibition of mob psychology rarely in the country Had that state of mind existed for few more and had not every bank in this country been venture to say that there are banks which could have withstood another the unusual drains and it. now fee] justice to myself, the directors and the loyal officers and employees, the the Richmond that should say that the most drastic to which any bank Virginia ever been submitted has shown that there are irregularities. but that the mistakes which been made were primarily the mistake such, of exerting of the bank for preservation the business and this City, and secondly taking advantage of the opportunities by the administration the R. with which carry on the helpful work this institution has trying to maintain and enlarge Richmond's business life 'Having spent years in building this institution having invested in my own and my family's cannot regard myself one but the largest individual the of the bank share with you the banking different that other The pubno than the depositors and the Anything life of this City that affects adversely 50,000 banking cannot be The obligation rests upon all aside any self so that can done, and that which the best of the firmly believe and that belief confirmed by the mature the Clearing House Banks of and by the examiners of this bank. the plan suggested best for the is best for the City of
Economical Management. easy make and circumstances as these think
4.September 30, 1933The Richmond News LeaderRichmond, VA
Click image to open full size in new tab
Article Text
Bank Receivers Sue for $8,300 suit for with interest and attorneys' has been filed the law and equity court the receivers for the American Bank and Trust Company against Davis Brothers, Loth Breeden, Inc., Lee Davis and Loth. The claim the amount sued for due promissory note given the bank carries interest from June 1982. Jenks also papers against and trading as James Fox for $776.81 claimed to due account for material wiring the Grace hospital annex.
5.October 20, 1933Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Basis For Told By Counsel of Bank Directors
Lawyers Offer Co-Operation to Judge Ingram, But Doubt Need for Investigation; Intend No Criticism, They Say
Directors of the closed American Bank and Trust Company of Richmond, who are being sued for having declared dividends illegally. accordformer officers of the instituto the yesterday joined ing of the bank's affairs. tion in welcoming grand jury probe
Appearing before Judge John L. Court. Henry Riely and for the directors. said they criticism Attorney action in but felt there jury was basis for the probe. They sured Judge their clients cooperate the probe. feanwhile, receivers of the bank expect that appraisers from the Corporation will be here Monday to begin valuation bank's assets relative to the the for loan of ceivers' be utilized in paying to depositors and settling preferred claims. estimated that the R It was will two weeks for personnel require with another week's time their required put the through Washington On this that checks be hopeful for in plenty of time for Sherlock Bronson and Justin receivers with officials Washington Wedhad statement to their return other upon than that depositors would say cent less in return for each of assets will receivers' appraisal substantial depositors within next few weeks.
6.November 14, 1933The Roanoke TimesRoanoke, VA
Click image to open full size in new tab
Article Text
BANK STOCKHOLDERS MOVE TO FIGHT SUIT
Richmond Nov 13 -More than two of the closed American Bank and Trust Com pany, of Richmond met today in to defeat by the bank's receivers to recover more than 000 in dividends received since Sep. tember Those meeting today were the defendants by the to recover the money They formed protective of five and authorized of counsel proper steps to defeat the move
Australia fears a plague of eagles
7.December 6, 1933The News and AdvanceLynchburg, VA
Click image to open full size in new tab
Article Text
Depositors Cannot Cite Receivers' Allegations
Ruling Made At Hearing Of Suit Against American Bank And Trust
Richmond, Feb. 5 (AP)-Allegations made by of the American Bank and Trust Company of Richmond against directors and stockholders in a suit to recover dividends allegedly declared and paid unlawfully, cannot be cited by depositors in of preference over general Commissioner Kirk Mathews ruled today. The receivers pending suit was cited by City James Cannon and Attorney W. H. Ryland, Jr., in an effort to prove their that the bank was insolvent before March 4, 1933. The hearing will be resumed tomorrow "The morning. hearing today also brought forth the from John Wilson, of the bank's receivers, that the source of information on which the suit against directors and stockholders was based was the audit made by A. M. Pullen and Company. Frank Stewart, in charge of the Pullen audit, testified that relatives three minor officers of the bank. working in branch offices, withdrew their funds shortly before the bank was closed. Oliver J. Sands, president of the closed testified that he exchanged his American Bank stock for stock of the bank shares corporation formed to deal in stock of the American and other banks. When questioned regarding the line of credit extended by the American to firms and corporations of which he was an officer or director, Mr. Sands asked for oppor"tunity to the records and he was It was expected he would be recalled testify tomorrow. During the hearing, City Attorney Cannon at what he described as the "hostile attitude" taken by the receivers for the bank to defeat preferred claims. M. Bristow, state commissioner of insurance and banking, testified that the American Bank was not examined for year before its close. "The law our department to examine banks at least twice year.' Mr. Bristow said. adding that "I regard the statute as directatory not mandatory. Asked if he considered that the law had been violated by failure the department the American year before its close, Mr. Bristow guests of Mr. and Mrs. T. N. Giles in Robert E. Loving who is employed in & C. camp at Thanksgiving "day with his father. Houston Loving here. Mr. and Mrs. Woodrow Hatter of Waynesboro spent the past week-end with their parents, Mr. and Mrs. D: K. Hatter Tyro and visited relatives on Sunday Mr. and Mrs. W. E. Massie of Tyro are visiting relatives and friends in New Jersey. The night bridge club met in the home of Dr. and Mrs. Homer E. Clarke near Massie's Mill on Friday evening when score prizes were awarded and refreshments were served. said that for bank the size of the American, It took force of from twenty to twenty-four examiners to do the work. "We had only nine examiners, and some two hundred state banks to examine. he said, "Obviously the task was impossible of fulfilment." He said date had been set in February to examine the but called off because of unsettled conditions in Baltimore and elsewhere. "We hoped." he said. "after March that the American would be reorganized.' In the course of the hearing. City Attorney Cannon said that "we can prove our claim of insolvency only by circumstantial evidence.' now.
8.December 8, 1933Danville Register and BeeDanville, VA
Click image to open full size in new tab
Article Text
CITY OF RICHMOND WITHDRAWS CLAIM
Seeks to Speed Bank Receivers' Chances of Se. curing RFC Loan city of Richmond today withdrew its preferred claim of $558,000 against the assets of the American Bank and Trust Company of Richmond and consented, at the request of the bank's receivers, to accept the status of general creditor in order to speed the receivers chances of securing a large R. F. C. loan and making a dividend distribution to depositors. Encouraged by the municipality's action, receivers began taking steps to secure the withdrawal of all other preferred claims based, like the city's, on insolvency, the total amount being estimated at $2,000,000. Roughly, any sum made available to the bank receivers by the Reconstruction Finance Corporation, over and above $2,000,000, is expected to be disbursed to general creditors at the earliest possible moment. Receivers will hold conference with R. F. C. officials tomorrow relative to the bank's loan application. There has been no indication as to the sum the R. F. C. will lend on the closed bank's assets. but in view of the federal government's liberalized policy it is held in financial circles to be not unlikely that the initial distribution to general creditors may amount to twenty five percent. Following special meeting of the council finance committee at the mayor's office, Mayor J. Fulmer Bright, authorized the announcement that by unanimous vote of the six members present. the committee consented to withdraw the city's preferred claims.
9.December 15, 1933Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Liquidation Head Gives His Approval
Release of Preference Claims Seen Aid in Quick Consideration by Officials in Washington
By Radford Mobley Washington Correspondent construction Finance receive for action tomorrow the American Bank and Trust Company application for loan. mitting cash dividend Richmond in the near Robert V. Fleming. chairman the Federal commitfor that district, here Following weeks intensive activiwhip the loan application shape at Fleming said received by his office here and be turned over once corporation for final action. understood that Fleming has approved the could learned was for the entire asked smaller
RFC Officials Silent
RFC officials today stated no comment would made until the plication has been but dicated that action would pedited in the belief that all possible should released to American early there no doubt here the corporation will today substantial the the full for mond other interests against believed the release much as posonce depositors. Fleming Comments Discussing the application Fleming said: state that has been received and will submitted RFC final action tomorrow that action will quickly officials anticipated RFC the application today. Inreceipt dicating them the tion final form and them for consideration this work by the liquidation comAll loan application has The Fleming certified the figures of the various recent months. And accounts in to the RFC. It believed this work the light conditions." and the recomchanged request for mendation carries considerably larger than was proposed last March reopen the bank under liberalized of the administration has been policy adopted.
To Charge to advanced will be lent Funds the the will interest loan cent the bank's total than request is substantially than this figure. Action come any day may that the Richmond loan application has been given bank
Continued on Page Column
10.January 2, 1934Covington VirginianCovington, VA
Click image to open full size in new tab
Article Text
TO AVOID GRAFT BY RECEIVERS
(By The Associated Press) RICHMOND, Va., Jan. 2.-Gov- ernor Poltard today said that in his message to the General Assem- bly he would reitterate his proposal that liquidation of closed State banks be accomplished through the State Banking Division and not through receivers
His statement was made in com. menting (on the criticis(m of the amount paid receivers for the clos- edjj American Bank and Trust Company of Richmond, which was declared by Mayor Bright to be
"shockingly exorbitant." The city was one of the Margest depositors in the bank. Its receivers who were lawyers, employed more lawyers and in the end the fees ran
11.January 4, 1934Danville Register and BeeDanville, VA
Click image to open full size in new tab
Article Text
WEAK BANKING LAW
Sen. Layman Would Have State Banking Dep't Act as Receivers
NEW CASTLE, Va., though hitherto opposed to vesting in the state banking department the power to discharge duties ceivers defunct banks, State Senator George Layman. chairman the banking today he reached the inevitable conclusion that the advantage of depositors for such power be granted. The senator said he would support legislation providing for the change when to the lowance of granted by cuit Judge Julian Gunn Sheriock Bronson Justin Moore, the ceivers the American Bank and at Richmond When legislation providing for the state discharge duties bank receivers recent session the Senator Layman voted against the In the Richmond case and others, he his decision to support such based. matter of policy, opposed to state banking department the power the receivers failed taking away from circuit courts function appointing receivers. have followed the excessive made for their services, have inevitably reached the that in order to the assets defunct failed for distribution it would their advantage banking department liquidate such particularly have in mind the receivers the American Bank and Trust company. This an outstanding ample the excessive cost of liquidating banks under the present laws. But not the only instance in which depositors. many whom widows and orphans. suffered account excessive allowances receivers their ployes liquidating banks. gard this of the weak spots our present banking law should corrected the by next legis-
12.January 4, 1934Ledger-StarNorfolk, VA
Click image to open full size in new tab
Article Text
COSTS CALLED 'EXCESSIVE'
Layman and Byrd Urge Action to Protect Depositors of Closed Banks
New Castle, Va., Jan. islation providing for the State banking department to be empowered to discharge the duties of reof defunct banks will receive support Senator George W. Layman, he has announced, at the General Assembly convening next week. The senator made this statement when asked the allowance of $60,000 granted by Circuit
Judge Julian Gunn to Sherlock Bronson and Justin Moore. the ceivers American Bank Trust Company at Layman said that although he had been opposed to vesting such power with the banking department, he now had reached the conclusion that it would be to the advantage of Senator Layman voted against legislation providing for the State to discharge the duties of bank receivers when such bill was introduced at a recent session of the legislature. Now, however, in view of the Richand others, he said, he in favor of such legislation. Byrd Calls for Action lief that the time has come for Virginia and all other States to adopt legislation preventing payment "excessive" compensation in settling the affairs insolvent banking institutions is expressed by Senator Harry Byrd in correspondence with the Reconstruction Corporation. The Virginia senator, in 8 letter addressed to Jesse J. Jones, R. F. chairman. commented on court allowance receivers of the American Bank and Trust Company of Richmond and their attorneys of fees which he said were "exorbitant." The fees, amounting more than $60,000, were allowed by Circuit Judge Assembly Byrd said he hoped the General Gunn. at its next session would provide for the State banking department to take over the affairs of all insolvent institutions 'allowing reasonable compensation for such only expert assistance as must be employed to perform this work.
RECEIVERS FAVORED, BYRD
Senator States $60,000 AIlowed By To Agents Liquidating Closed Richmond Bank
WASHINGTON Jan. Senator Byrd of Virginia said today correspondence with the reconstruction that "the time come for Virginia, and all other states, adopt legislation preventing payment of exces. compensation settling the affairs of insolvent banking institutions." The letter addressed Jesse Jones, RFC chainman, and concerned court allowance to ceivers of American Bank and Trust company Richmond and their attorneys fees which Byrd called "exorbitant." The fees amounting more than $60. 000 were allowed by Circuit Judge Gunn. Byrd said he hoped the general assembly at its next session provide for the state banking de. partment take over the affairs of insolvent institutions lowing only reasonable compensation for such expert additional assistance must be employed perform this work." Byrd's letter tfollows: desire to confirm by letter to you my verbal protest made yesterday your assistant, Honorable Clemi Shaver with respect the payment excrbitant in connection with the liquidation the affairs American Bank Trust Company "The failure of this bank was one of the greatest financial distresses that has ever Richmond, thousand depositors and many stockholders. realize that perhaps you have no direct control the penditures, but in view of the plication pending for additional loans this institution think you would be this position would be glad supyou-in requiring that the affairs of the conducted very economical and efficient basis, funds spent reduce the assets of the bank. am not attempting to say what just and fair compensation to pay the lawyers and ceivers, do think that the compensation now authorized, until January first only, and which will be supplemented later, is exces-
14.January 5, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Cannon Prepares Bill of Review
Gunn Will Be Requested to Reconsider Order; Bright to Confer on Plans for Legislation
Mayor Bright yesterday urged the Bank of Commerce and Trusts. one three receivers of the American Bank and Trust Company of Richmond. to join the other two receivers in about review and rebringing duction fees which the Mayor termed princely and exhorbitant. John Wilson. president the Bank of and Trusts. of the business out City meeting York, learned. United States Senator he had Harry Byrd from tion that every and all influence effort exerted to prevent of excessive fees and receivers of American bank. both with respect and fees future already authorized Acting on the request of Mayor Bright, City Attorney Cannon is preparing formal bill review whereJulien Gunn will be urged Judge fees of each the Bank and Trusts and Bronson. Moore, receivers, and Barton and Parker. for receivers. Mr Bronson Moore letters to the mayor indicated their accept which satisfactory to the mayor
Mayor Comments
In brief statement Bright hope the presithe Bank Commerce and Trusts will, after more mature flection. his colleagues signify willingness to have case viewed and agree substantial compensation for services rendered our distressed people. Acting over the large ringing in his for o'clock to diswhereby the General Asnext week, will asked pass recurreceivership fees ginia. The mayor asked Richmond delegation the legislature, the three members of the State CorCimmission, and State Bank Bristow with him at City Nine the invited talk the matter with the are leading the may obtain helpful how the of exceslaw exists in North whereby closed banks are liquidated little cost by the State Banking may the of legislation in Virginia,
Wicker In Delegation
Richmond's delegation consists of Senators Wicker. R. Fuller Hill and Delegates Charles Albert William H. Horace Edwards and B. Eng Hooker and W. Ozlin the State Banking Commissioner the conferees. Delegate Charles speech before the First Club last night denied statement published yesterday that legislation providing for the receivership closed banks had been blocked by members the General Assembly since Mr. Moss said that such measure had the 1932 by Senator John Wicker. and Senator but had held up in the Senate close the session and as member of the he,
15.January 6, 1934The News and AdvanceLynchburg, VA
Click image to open full size in new tab
Article Text
Gunn Asks Pollard Pick
Jurist A Depositor ican Bank And Trust; Has Other Reasons
Richmond. Jan. Julien Gunn city circuit Governor Pollard designate some other judge to sit in the suit of the closed Bank and Trust Company of against Oliver Sands, and other officers and directors for the covery more than in dividends alleged to have been paid contray to state designation of another judge was asked by Judge Gunn because he depositor the closed bank for other The letter did not the troversy the lowance of and attorneys which Mayor Fulmer Bright had declared Mayor Bright has asked for bill step in his fight to have the fees reduced.
16.January 9, 1934The Roanoke TimesRoanoke, VA
Click image to open full size in new tab
Article Text
Grand Jury May Be Asked To Look Into Richmond Bank Case
Richmond. Jan. grand jury probe of the affairs of the closed American Bank and Trust Company Richmond, may be asked by Commonwealth's Attorney T. Gray Haddon, the new prosecutor said today. His statement was made after Judge John L. Ingram fixed February 16 the date for hearing argument on demurrers and other technical answers to the suit filed by attorneys for the bank receivers against directors and several officers. Receivers seek to cover more than $600,000 in dividends which they allege were unlawfully paid to stockholders. The common attorney said he would await the outcome of the rectors' suit hearing before initiating grand jury He indicated he would make formal announcement within the next few days, after studying reports now part of the receivership record in the city cir. cuit court. Counsel for the receivers allege, in their suit dividend payments, that the bank was known by its responsible officials to be insolvent when certain dividends were declared.
17.January 12, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Court Favor Reinstatemen Bank Claims
Counsel for American's ceivers Refer to on Withdrawal
American Bank and Trust Compan depositors who withdrew preferre claims based on alleged insolvency who made deposits on March the day of the bank's closing are titled ask claims to an order yesterday by Judge Gunn in City Cir cuit Court. should be open to deposit tors affected. counse) for the receiver in the light written by bank official on seeking legal permission restric withdrawal per cent The exist ence of this letter was not known receivers when they asked withdrawa all preference claims based alleged possible RFC loan and dis. tribution. the said The order entered by Judge that while the does not proof of insolvency runs on the bank March "shows complete ness by the bank with the public during the period following March 13 in June of the audit of April Another bank development yester day was the of resolution the Downtown and Old Market Bright his stand against the large fees paid receivers the Bank The resolution part view of the fact that of wage are need the present time and affected by disposition of funds in the AmeriBank and Trust Downtown Old Market Association hereby goes record indorsing the stand taken by the Mayor their
18.January 13, 1934The Richmond News LeaderRichmond, VA
Click image to open full size in new tab
Article Text
Continued From First Page. ceivership is vacated, since the receivers in event would no longer have authority to prosecute. The Depositors Protective Committee was not represented at the meeting. but Its members have indicated that they individually in sympathy, with the efforts other positors effect reduction in the cost of receivership.
Hart Silent on Plan.
Harris Hart, chairman of the depositors' said today that he had comment make the plan outlined by Mr. for the bank take over the liquidation American bank. The plan suggested by Mr. Andrews the formation state bank with capital of $500,000 and surplus $125,000, with the RFC $250,000 preferred stock and depositors the American subscribing the remainder. Success the proposed depends "upon even more specific condition than the mere creation and preservation harmony among the parties interest," Andrews said, "because contemplates, first the vacation of the present celvership and the resumption of the the affairs of the old bank the state corporation commission, the delivery these fairs the depositors and the Reconstruction Finance Corporation. obvious that the co-operation and support Judge Gunn, the receivers, the corporation commission obtained before into effect. Reconstruction Finance Corporation already has approached, and every reason believe that its co-operation will forthcoming. assumed that Judge Gunn will vacate the if the depositors request and the agreeable. Indeed. that Judge Gunn would refuse grant such petition, the depositors and the RFC the only parties have any interest in the assets the bank. Some Details Plan. receivership vacated, the situation then would be back in the hands of the state corporation commission. which at least liquidating agent. every reason to believe the RFC "This proposal have every reason to believe the RFC would desire, that the liquidating agent permit the new bank service the papers the old receive fee therefor. confidently that liquidation of the assets of the old institution through institution controlled by the depositors the old gives the greatest assurance of the assets the old bank, therefore offers the depositors the best means of keeping their losses shudder when we contemplate what will happen the present plan of firms and by the score will be forced into no matter how policy the ceivers might pursue. contend this no time for such unfortunate happenings. "Liquidation through receivers liquidation nothing by its very destructive values, regardless how noble the intentions the court and the receivers might be. be borne mind that the proposed new bank would be absolutely clean that its deposits will be fully protected under the federal deposit guaranty as the deposits of any other bank the country, that hardly probable that safer depository could be selected by anyone. "This proposal should appeal the American bank depositors citizens Richmond from the selfish point view alone opportunity make good but even this opportunity did not exist civic pride itself impels try the situation. and would justify the undertaking."
No Review Petition. City Attorney James Cannon does not intend file his petition for review of the fees to the receivers American Bank and Trust Company with the city circuit court today. Cannon, has been drawing up the petition for review the request mayor, intimated today that papers will be fied in the city circuit court in the coming week.
19.January 16, 1934The World-NewsRoanoke, VA
Click image to open full size in new tab
Article Text
ASSETS OF CLOSED RICHMOND BANK TO BE REVIEWED
Seek Increase in Loan From the Reconstruction Fi. nance Corporation
Jan Byrd today he vised by Merriam, RFC director. that would be sent to Richmond immediately to the of the closed American Bank and Trust Comwith increasing the to that Byrd behalf bank's receivers for "the Maximum Loan" the basis of the finding the representative the value the loan of which 000 was distributed to depositors granted the bank by total preferred liabilities Byrd the receivers Austin Moore. Sherlock Bronson and John Wilson, president of Bank of trusts at Richmond hour's with Merriam This afternoon they had appointment with Robert Fleming Washington, president of the Riggs of fifth reserve committtee Fleming must pass the application for addiByrd said he was advised by the RFC directors that the $750 per month fee granted by court at Richmond to each of receivers for period beginning January was satisfactory The receivers in pointed out that the positors' the bank had approved up to per month per The original application by the receivers was loan $7,500,000 on which the $3,500,000 loan ity granted Byrd the request the instance receivers was not for specific for the granted the securities that bank might offer
20.June 20, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Haddon to Ask Jury Probe Of American
Officers. Directors to Make Defense in Court: Depositors Will Meet June 26
Developments yesterday in the American Bank and Trust Company case, filing of the bank's which certain officers and directors were charged with negligence, includfor meeting depositors June to discuss plans less and by Attorney Haddon he would ask. fall. grand jury the bank's Meanwhile for officers and directors in stated that they would their court not newspapers, and asked the public and serve judgment until the can be thus presented and dealt
Swink Angus O. director the bank. and president the lantic Life Insurance Company prepared statement said: loss understand counsel the receivers bank and the receivers should bring my name into such adding loan the being curtailed regularly and will has for cirthe providing pooling their terests the purpose affording the purchase the stated by the Bank Depositors' Committee. in nouncing meeting next Tuesday night o'clock at the John Marshall School Expects Hart Unit Support Mr. Abbott made public the the group serving as bank follows: Simmons, Frank Rennie Henry Woody Wilbur Havens and Coleman Andrews. former State auditor of public George former State and Callon formerly sistant United States District Attorare serving as counsel for the committee Disclosing that his group has been the Depositors Committee
21.August 10, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Bank of Commerce Quits as Receiver
Liquidators Will Buy American's Building
Offers made by two directors of the closed American Bank and Trust Company pay $135,000 suits against them alleging negligence are dropped, were rejected yesterday Judge Julien Gunn on the ground that ceptance might release other direcare parties Judge Gunn. door all the direcby stating that the proper plan which the between the and the former officers and the bank would speedily and adjusted.
Depositors Might Lose
Judge his decision ruled accepted the interest the that bank would they might money by the action this court.' Luther Jenkins had offered pay and Walter surrender on Sams claims deposits against Some directors jointly and severally yesterday the Bank were resignation the Bank Commrce and Trusts the bank's granted Bank office Tenth Main for development was the Commonwealth's ney Gray Haddon, when asked comment editorial demands for prompt the bank case grand jury, would sevmore before he would institute such preceedDue other cases. Haddon said he not opportunity his full time an the until the the trial Legenza, Mais alleged gangsters now under indictment for murder.
Lauds Wilson's Work
In tendering the bank's August John Wilson president the Bank and that "the most ficult the receivers have either worked out plans for their the affairs the receivers ized for the future routine liquidation that time with the inconvenience the and our the time our officers released for the direction of our own banking business Judge Gunn. accepting the wrote Mr. that "your untiring work strict
Continued on Page 26, Column
22.November 1, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Court to Probe Bank Despite Suit Settlement
American's Failure to Be Sifted by Grand Jury This Month, Says Haddon
Grand Jury investigation of the American Bank Trust Company's failure be launched this Commonwealth's Attorney Haddon stated yesterday, notwithstanding the settlement of civil against former directors officers the closed bank The involving was approved yesterday morning Judge Julien Gunn, The question of whether criminal statutes violated matter for Grand determination and is not affected settlement of civil proceedings, Commonwealth's Attorney Haddon said. The stipulates the payment within days of $200,000 the surrender of deposit claims amounting and the tendering promisory notes amounting $12,000. Three pending suits, two against directors and and one against some 12,000 alleging illegal declaration and payment dividends, to be dropped. The directors waive their right to sue stockholders. Coincident with Judge Gunn's acceptance the compromise settlement the move by the Successor Bank Committee to obtain of the and utilize the common stock capital for the proposed new bank. The committee asked that this sum be set apart for reasonable period, the meanwhile attempting secure approval of reorganization plan from 75 per cent of the secured creditors the closed bank. Plan for New Bank
The next development hearing on this date fixed Judge Gunn. mittee in its petition asserts that now deposits amounting approximately and claims helped obtain the settlement consummated yesterday. The decree signed Judge Gunn includes statement the bank ceivers that the former directors officers denied liability statement issued on behalf of defendants yesterday set that the comprowas agreed to defendants realized faced long, tedious and expensive litigation,
Continued on Column
23.November 9, 1934Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Court Ask May For Advice On Successor Bank
American's Receivers Seen Any Plan as Approving Depositors' Interest in
Richmond bankers to Views of new bank opegoing concern and American Bank and liquidate Trust Company through holding proposed by the corporation cessor bank depositors' committee terday sought by Judge Gunn learned last night that this was suggestion has made to court. In business was regarded probability that the court also would ask the views of the largdepositors of the closed bank, including the of the feasibility plan which recommends abolition of the present Meanwhile receivers of the Amerbank yesterday withheld comthe latest but persons close the pointed that are record having they in the of all the of the bank. plainly that the ceivers intend maintain neutral attitude in the pending fight giving opinion the bank if called upon Judge Gunn. There no desire the part of the receivers indicated. attempt influence the views of some The new bank plan contemplates purchase of closed bank's sets by the claims of the participating The depositors represented by George Allen and Callom has urged Judge Gunn make available common stock capital the proposed sum cash be paid by former directors the old bank settlement claims against embodied the two suits filed The $200,000 settlement expected
Continued Page Column
24.March 19, 1937Evening StarWashington, DC
Click image to open full size in new tab
Article Text
POWHATAN OWNERS TO GET SALE OFFER The offer of the Roger Smith hotel chains of Stamford. Conn., to purchase the Powhatan Hotel here will be submitted to stockholders of the Powhatan Hotel Corp. within the next two weeks, Arthur J. Harnett. managing director of the hotel, said today. His statement was made in connection with negotiations in progress at Richmond for sale of the Washington hotel, which is owned largely by Richmond banks. Directors of the corporation met there yesterday. "The sale, if consummated, would involve about $650,000," Harnett said. "The offer cannot be accepted without the approval of stockholders. It will be submitted to them within two weeks. If approved, the sale will be completed immediately thereafter." Neither Harnett nor Sherlock Bronson, co-receiver of the defunct American Bank & Trust Co. at Richmond and president of the hotel corporation, would disclose other details of the proposed sale or the meeting. The Smith hotel chain's principal holdings are in New York.
