Article Text
The Farley National Bank of Montgomery, Als., has suspended payment. It 19 thought the suspension is only temporary nd matters will soon be arranged.
191. Farley National Bank (Montgomery, AL)
Bank Information
- Episode Type
- Suspension → Reopening
- Bank Type
- national
- Bank ID
- 4180
- Charter Number
- 4180
- Start Date
- August 21, 1891
- Location
- Montgomery, Alabama (32.367, -86.300)
Metadata
- Model
- gpt-5-mini
- Short Digest
1b39d10b5e35bf42
Response Measures
None
Receivership Details
- Date receivership started
- 1891-10-07
- Date receivership terminated
- 1892-02-15
- OCC cause of failure
- Losses
Description
The Farley National Bank suspended payments on 1891-08-21 due to inability to make good protested drafts drawn on New York parties (discounted paper). A receiver (Henry M. Hall, Jr.) was appointed on 1891-10-07. The bank was permitted to resume business after shareholders restored capital and resumed operations on 1892-02-15/16. There is no explicit report of a depositor run in the articles; cause of suspension is failure of correspondent New York parties to pay protested paper.
Events (7)
1.
December 18, 1889
Chartered
- Source
- historical_nic
2.
August 21, 1891
Suspension
- Cause
- Correspondent
- Cause Details
- Inability to raise funds to make good protested drafts (about $100,000) drawn on New York parties which the bank had discounted.
- Newspaper Excerpt
- notice was posted in the Farley National bank stating that the directors of the bank had agreed to suspend payment temporarily... inability to raise money to make good paper drawn by others and protested in New York.
- Source
- newspapers
3.
October 7, 1891
Receivership
- Source
- historical_nic
4.
October 7, 1891
Receivership
- Newspaper Excerpt
- the controller of the currency to-day appointed ... Henry M. Hall, jr., receiver of the Farley National Bank of Montgomery, Ala.
- Source
- newspapers
5.
February 15, 1892
Reopening
- Newspaper Excerpt
- The Farley National Bank... resumed business today. It has cash on hand to pay every dollar of its liabilities and its capital of $100,000 is restored intact. The impaired capital stock has been fully restored by voluntary contribution of the shareholders, and the bank is now in a thoroughly solvent condition.
- Source
- newspapers
6.
February 15, 1892
Restored To Solvency
- Source
- historical_nic
7.
July 16, 1906
Voluntary Liquidation
- Source
- historical_nic
Newspaper Articles (21)
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Business Troubles. MONTGOMEEY, Ala., Aug. 21.-At noon today notice was posted in the Farley National bank stating that the directors of the bank had agreed to suspend payment temporarily. The cause stated is their inability to raise money to make good paper drawn by others and protested in New York. Matters will soon be arranged. No one will suffer money loss. NEW YORK, Aug. 21.-William P. Dane, manufacturer and dealer in cards and paper, assigned today. His liabilities are given as $75,000, with assets sufficient to cover this.
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A Bank Closes Doors. MONTGOMERY, ALA., August 21.-A notice was posted on the doors of the Farley Na. tional Bank at noon today stating that the bank had agreed to suspend temporarily. The'cause being inability to raise money to make good paper drawn by others discounted by the bank and protested in New York. It is understood on the street that the paper is a lot of drafts amounting to about $100,000 on New York parties.
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BANK SUSPENDED AT MONTGOMERY. Protested Paper the Cause-The Suspension Only Temporary. MONTGOMERY, Ala., Aug. 21.-[Speciall--A few minutes after 20'clock noon to-day, President Hall of the Farley National Bank, posted a notice on its doors that the bank by vote of the directors had agreed to suspend payment temporarily. The cause stated being inability to raise money to make good the paper drawn by others and discounted by the bank and protested in New York. It is understood on the streets that the paper is a lot of drafts amounting to about $100.000 on New York parties, by President Woolfolk, of the Alabama Terminal and Improvement Company, of this place. The bank has been handling these draft for some time and they were always honored before. The bank depositors are about $65,000. The president of another bank is quoted as saying that none of the Farley Bank paper, is held here by banks and that suspension will not affect them. It is thought that the suspension is temporary and that matters will soon be arranged. No one suffering money loss.
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A Montgomery Bank Suspends. (By telegraph to the Dispatch.] MONTGOMERY, ALA., August 21.-A few minutes after 12 o'clock, noon, to-day, President Hall, of the Farley National Bank. posted a notice on its doors that the bank, by a vote of the directors, had agreed to suspend payment temporarily. the cause stated being inability to raise money to
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The Farley National Bank Suspends. MONTGOMERY, Ala., Aug. 21.-At noon to-day notice was posted on the Farley National bank that the directors of the bank had agreed to suspend payment temporarily, the cause stated being inability to raise money to make good paper drawn by others and protested in New York. Matters will be soon arranged, no one suffering a money loss.
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FORT WORTH AND RIO GRANDE. Miles Miles 40 Comanche Pranbury 113 76 Stepheny ille Blanket 125 Dublin 8. Brownwood 142 HOUSTON AND TEXAS CENTRAL. Miles Miles azahachie 41 Calvert 158 Corsicana 76 166 Hearne Mexia 106 185 Bryan 117 Groesbeeck Navasota 214 Kosse 133 234 Hempstead Bremond 144 285 Houston I ALABAMA BANK SUSPENDS. Due to the Failure of New York to Protect Certain Discounted Paper. MONTGOMERY. ALA., Aug. 21.-A few minutes after 12 o'clock, noon. President H:.11 of Farley national bank posted a notice on its doors that the bank, by a vote of its directors. had agreed to suspend payments temporarily. the cause stated being the inability to raise money to make good the paper drawn by others. discounted by the bank and protested in New York. It is understood on the streets that the paper is a lot of drafts amounting to about one hundred thousand dollars, on New York parties by President Wolfolk of the Alabama terminal and improvement company of this place. The bank has been handling these drafts for some time, and they were always honored before. The bank's deposits are about sixty-five thousand dollars. The president of another bank is quoted as saying that none of the Farley bank's paper is held here by other banks, and that the suspension will not affect them.
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CENSUS OFFICE CORRECTED. Acting Superintendent Replies to the Contradiction of His Figures. UNCLE SAM'S FINANCIAL CONDITION. Secretary Foster Says There is Money Enough in the Treasury to Meet All the DemandsWashington Notes. WASHINGTON. D. C., August 26.-The atten. tion of the Acting Superintendent of the Census was called to-day to the dispatch from Charleston, S. C., stating that there was no foundation for the figures given in the bulle. tin issued by the Census Bureau last Wednesday showing the value of real and personal property of that State. "The bulletin," he said. "shows precisely the valuation of real estate and personal property for that year 88 reported to this office by the several counties of the State and as published by the Comptroller. It seems, however, from the report of that officer that in making up the total taxable property of the State for 1890 there is included an additional sum of $17,905,913, value of railway property which is not classed as real or personal property in the bulletin. the county reports or the report of the Comptroller. Only a few States give any valuation to railroad property for taxation purposes. and it is not the intention of the Census Office to include any such values as part of the assessed valuation of real or personal property of the country. The value of railroad property will be separately considered for all the States." THE TREASURY FINANCES. The amount of 41/2 per cent. bonds contin. ued at 2 per cent. to date is $21,338,150. and Secretary Foster says that it was his impresthat theamountwouldrunover$30,000,000 before the transaction closes. If his expectations are realized there will be less than $20,000,000 of the 43/2 per cent. loan sub. ject to redemption after September 2d. the limit within which it must be presented for continuance. Secretary Foster says that there will be no difficulty whatever in meeting this payment, or a larger one if necessary, without recourse to the one-hundred-million-dollar gold reserve and the $17,000,000 on deposit with National banks. TheSecretary said that including #49. 000,000, representing disbursing officers' balances. outstanding checks, the National is bank redemption fund, &c. there an available balance of $106,000,000, exclusive of the "gold reserve" of $100,000,000, and he regarded that as ample to meet all current obligations of the Government. The bonds, he added, are of course redeemable in gold, if demanded, and there is over $29,000,000 of that coin in the Treasury in addition to the 'gold reserve," an amount in itself more than sufficient to redeem all the41/2 per cents that will be outstanding September 2d. The Secretary said also that he regarded the amount of public funds in the hands of disbursing officers as greatly in excess of the needs of the service, and that he was considering a plan whereby it may be greatly reduced. There is now, he said, a balance of $35,000,000 in the hands of these officers, for a considerable portion of which there is no immediate need, and it is his opinion that this amount could be reduced to about $30,000,000 and maintained at that figure without embarrass. ment to public business. THE BANK MAY RESUME BUSINESS. Bank-Examiner Campbell, in a report to Aeting-Comptroller Nixon, says the present indications are that the Farley National Bank of Montgomery, Ala., which closed its doors a few days ago, will resume business. The depositors. and stockholders, he thinks, will not lose a cent. At the Treasury Department the Farley bank is said to have had too much money on hand to make money. It does not owea cent. has no bad debts excepting the one that closed it, and was in all respects a model bank. Its surplus was about $110,000. The bank had been in the habit of cashing drafts for the Alabama Terminal Railroad Company and the last draft of $109,000 was not paid when presented in New York. Even should the bank lose this large amount it is represented as solvent.
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GENERAL DOMESTIC. Cardinal Gibbons is said to be rapidly breaking down in health. The Farley National Bank of Montgom ery, Ala., has suspended temporarily. Two conviots were killed and one wounded while trying to escape at Walla Walla Wash. Four Chicago men are under arrest charged with trying to blackmail insurance companies out of $30,000. Government rain makers at Midland, Tex., haven't had a good opportunity to make a thorough test yet. Catillo, the famous bandit, was shot dead by offcere near Walsenburg, Colo., to whom he refused to surrender. The crew of the steamer Obdam mutinied at mid-ocean. Captain Baker shot and killed Peter Duzen, the ringleader. Texas Alliance men opposed to the subtreasury bill will hold a convention in opposition to the regular Dallas convention. A scheme to enable farmers to hold onethird of the r cotton one year has been indorsed by the Farmers' Alliance in South Carolina. Masked robbers held up the express messenger on a train near Griffin, Ga, and got away with an amount variously stated at from $2,500 to $30,000. Senator George's re-election to the Senate is now practically certain. George Van Houten opened the Republican campaign at Mason City, Io. John C. Randall made a partially success. ful trial of his airship at Cincinnati. In a railroad wreck near Coahoma, Miss. two men were killed and three injured. A monument in commemoration of the Sioux massacre in 1862 was dedicated at New Ulm, Minn. Governor Boies opened the Democratic campaign in Iowa at Cherokee and spoke to a great crowd. Frosts occurred in Iowa and the Dako tas. Boomers are ou the line awaiting the word to cross over and take possession of the Sac and Fox lands when opened to settlement. General Miles disapproves the sugges tion to consolidate all the State troops and place them under control of the Secretary of War. Frank Almy, who murdered his sweetheart in Hanover, N. H., has been Uniti fied as a desperate highwayman who has served in State prison. Canadian newspapers arriving at Sault St. Marie, Mich., have been opened. examined and detained for containing lottery advertisements. A five-story bullding in Park Place, New York, collapsed, carrying with it most of the occupants. Ninety five p rsons are said to be dead. An explosion from an unknown cause, followed by tire, did the work. Searching parties are still at work in the smold ring ruins. The President took part in two recep. tions at Saraloza. stera Kansas has a boom in crops and the farmers are happy. Salton Lake, Mornia's inland-sea, is dry ng up and wilsoon disappear. The with annual encampment of the Sons of Vererans began in Minneapol's M. Dudley of Indiana save that State wis send a Blaine delegation to the national conventi n. A baby born at Danbury. Conn., weighed only eighteen ounces and was as long as a lead pencil. It is healthy. A cloud-burst did over $100,000 damage of Potterilla, Pa
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ACTING CONTROLLER NIXON has decided that there is no necessity for the appointment of a receiver for the Farley National Bank of Montgomery, Ala.
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The Farley Bank at Montgomery. (By telegraph to the Dispatch.) WASHINGTON, September 1.-The Acting Comptroller of the Currency has decided that there is no necessity for the appoint. ment of a receiver for the Farley National Bank of Montgonery. Ala.
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No Receiver Needed. WASHINGTON, Sept. 1.-The acting controller of the currency has decided that there is no necessity for the appointment of a receiver for the Farly National Bank of Montgomery, Ala.
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RECEIVERS APPOINTED.-The controller of the currency has appointed Benjamin J. Haywood receiver of the First National Bank of Clearfield, Pa., and Henry M. Hall, jr., receiver of the Farley National Bank of Montgomery, Ala.
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Appointed Bank Receivers. W ASHINGTON, Oct. 7.-The - controller of the currency to-day appointed Benjamin J. Hay wood receiver of the First National National Bank of Clearfield, Pa.. and Henry M. Hail, Jr., receiver of the Farley National Bank of Montgomery, Ala.
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Two Bank Receivers'Appointed. WASHINGTON, Oct. 7.-[Special|-The comptroller of the currency to-day appointed Benjamin J. Haywood receiver of the First National Bank of Clearfield. Pa., and Henry M. Hall, Jr., receiver of the Farley National Bank of Montgomery, Ala.
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RESTORED To A BUSINESS BASIS.-The controller of currency has permitted the Farley National Bank of Montgomery, Ala., to resume business as an active banking association. In August, 1891, the capital stock of this bank was found to be seriously impaired, and on October 7 it was placed in the hands of a receiver. The impaired capital stock has been fully restored by voluntary contribution of the shareholders, and the bank is now in a thoroughly solvent condition.
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A Bank Resumes Business. MONTGOMERY, ALA., Feb. 15,-The - Farley National Bank, which suspended payment on Aug. 21 last, resumed business today. It has cash on hand to pay every dollar of its liabilities and its capital of $100,000 is restored intact. Not a dollar was withdrawn from the bank to-day. The former receiver states that this is the second instance of the kind in the history of the national banking system.
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A Bank Restored. WASHINGTON, Feb. 16.-Thecomptoller of the currency has permitted the Farly national bank, of Montgomery, Alabama, to resume business as an active national banking association. In August, 1891 the capital stock of this bank was found to be seriously impaired, and on October 7 it was placed in the hands of a receiver. Theimpairedcapitalstock has been fully restored by voluntary contributions of the share holders and the bank is now in a thoroughly solvent condition.
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IN GENERAL. The bill to incorporate the East River Bridge Company was Tuesday passed by the New York assembly. The strike at Blackwood colliery, Tamaqua Pa., involving about 200 men, was settled Tuesday and work was resumed. The Mississippi house on Tuesday adopted a resolution inviting Senator Hill of New York, to visit Jackson and to deliver an address. Edward Tenny, colored, of Washington, was stabbed and killed on Monday night by Edward Small, also colored, during a 10W in a saloon. Minnie Nichols, aged 30 years, a former opera singer, died in New York city last evening from the effects of chloroform administered by herself. Thomas Stevenson, the keeper of a notorious dive known as "The Slide," in New York. was convicted Tuesday of keeping a disorderly house. The steel workers of the Columbia iron and steel works, at Uniontown, Pa., yesterday rejected the proposed reduction in their wages, holding that the present scale should remain in force until July. A resolution was introduced in the Virginia house of delegates Tuesday memorializing congress to purchase the celebrated farm at Yorktown, in York county, the scene of the surrender of Lord Cornwallis. Anonymous letters have been sent to Mrs. Henrietta Snell, widow of A. J. Snell, Tascott's victim, during the past two or three weeks, demanding the payment of $2,000, under pain of being blown up with dynamite. The Allegheny river is gorged with ice for miles above and below Parker's, Pa., and the town is threatened with inundation. Nitro-glycerine was shipped from Pittsburg, Tuesday, to be used in breaking up the ice-pack. Bert Hard, a deputy sheriff, was shot dead by a negro named Walter Austin, whom he was trying to arrest in Arcadia. Fla., on Monday night. The murderer was captured by a posse and lynched in the woods near the town Tuesday night. The Chicago city council has adopted a resolution providing that hereafter all buildings to be erected shall be limited to a height of 150 feet and that they shall only be constructed to that height when fronting width. on streets of 80 feet or more in The Farley National Bank of Montgomery, Ala., which on October 7th, was placed in the hands of a receiver, has been permitted by the comptroller of the currency to resume active business. Its impaired capital has been restored by the stockholders, and it is now solvent. An Indianapolis dispatch says that the "brewery war" which has been raging in Ohio, Indiana, Missouri. Kentucky, Wisconsin and Illinois, and which brought down the price of beer to the lowest point ever reached, is about to be settled by the formation of a compact to regulate prices. According to a Deming. New Mexico. dispatch, 07 of the prisoners under arrest for participating in the revolt at Ascension, Mexico, will be taken to Chihuahua for sentence within the next few days. It is understood that two of the leaders in the revolt "are not to reach Chihuahua alive." The brakemen on the Mobile & Birmingham road, a branch of the East Tennessee, Virginia & Georgia railroad, struck on Sunday for increased wages, and their places have been filled by negroes. The latter have not been molested, but the strikers say they have no intention of giving up the road to them. The body of Anton Glatzbach. aged 19 years, was found Tuesday morning on the river bank at Pittsburg. He had bullet holes through his heart. his right temple and his left breast. over the heart, and a revolver, with three empty chambers. was lying by his side. He is said to have had a large sum of money when he left home, but only 10 cents were found on the body. Murder is indicated, though his brother 0019 bei bei
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DECIDES OLD SUIT IMPORTANT DECISION OF ALABAMA SUPREME COURT. Stockholders of Terminal and Improvement Company Are Liable for Money Received From Montgomery Bank. Litigation of many years' standing yesterday reached its climax when the Supreme Court of Alabama decided that all stockholders in the old Alabama Terminal and Improvement Company, with an original capital stock of $150,000, are liable for the full amount which they received improperly, it is alleged, from the Farley National Bank. It will be remembered that January 25, 1892, the Farley Bank went into the hands of a receiver as the result, it was claimed, of drafts and loans and discounts charged to the Alabama Terminal and Improvement Company. The Comptroller of the Currency appointed H. M. Hall of Montgomery as the receiver. The stockholders in the bank only a year or two ago recovered $56,000 from Fox Henderson of Troy, which is said to have been the amount invested by him in the Terminal and Improvement project which included the building of the Alabama Midland Railroad into Montgomery. The building of the old Montgomery, Tuscaloosa and Memphis Railroad, now the property of the Mobile and Ohio Railroad out of MontIt gomery, bankrupted the concern. likewise sent the Farley Bank into bankruptcy and the stockholders of the bank have been ever since trying to get back the $150,000. The Montgomery City Court decided that the promoters of the railroads were not liable, but the Supreme Court yesterday reversed the decision. In 1892 Mr. Hall, the receiver of the bank, succeeded in getting a judgment against the promoters in the sum of $117,890.47, but on execution the money could not be collected. There was some interference of the law and the debt has been pending since. Soon thereafter the bank, having been restored from bankruptcy, assigned the debt to the orators in the suit before the Supreme Court, Hall and Farley. The stockholders of the Alabama Terminal and Improvement Company, who are held liable for the assets of about $100,000 which were obtained from the Farley Bank are as follows: Charles Henderson, $10,000; Jerre C. Henderson, $5,000; Lafayette and William J. Henderson, a firm, $20,000; Gustavus Hendricks, $17,000; John S. Carroll, $3,000; Carroll and Murphree Company, $2,000; J. M. Henderson & Co., $7,500; Oliver C. Wiley, $9,000; Wiley and Murphree, a firm, $12,000, and T. K. Brantley & Son, $5,000. Gunter & Gunter, J. M. Chilton and Horace Stringfellow represented the trustees in the suit against the Terminal and Improvement Company and the defendants were represented by R. L. Harmon and W. S. Thorington.
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# BACK TO THE LOWER COURT Farley Bank Case Again in Supreme Court. # DECISION FOR THE PLAINTIFFS Suit Involves Fiffeen-Year-Old Debt of $151,000. Decision on Demurrers in Appellate Court Sends Famous Case Back To Chancery Court To Be Tried On Its Merits, The celebrated litigation between J. L. Hall and L. B. Farley, as Trustees, against the Alabama Terminal and Improvement Company, the (old) Farley National Bank, and others, was restored to the Chancery Court yesterday by a decision of the Supreme Court, which affirmed en appeal and reversed and remanded on cross appeal. The suit, which was instituted in January, 1892, involved a debt of $151,000 owed by the Alabama Terminal Company to the Farley National Bank, which was forced to suspend business when the Company failed, the execution in the original suit against the company being returned by the sheriff with the report: "No property found." The effect of the decision in the appeal and the cross appeal is to place the suit once more before the Chancery Court for trial on its merits. It has now been before the Supreme Court three times. The plaintiffs in the original bill, Hall and Farley, secured a judgment which the Supreme Court set aside. The bill was amended, and in the second trial the defendants received a favorable judgment, which was reversed. In the third and latest trial the plaintiff's victory in the lower court on demurrer was upheld by the Supreme Court The case will now be tried on its merits. The defendants are numerous and many of them are citizens of Pike County. The litigation had as its indirect source the Alabama Midland Railroad, which the Alabama Terminal and Improvement Company contracted to construct. This original bill was brought in the Chancery Court of the Southeastern Division by Joseph L. Hall and Louis B. Farley against the Alabama Terminal and Improvement Company, the Farley National Bank, Joseph W. Woolfolk and others. The Alabama Terminal and Improvement Company's failure, it was alleged in the bill, had caused the suspension of the Farley National Bank, to which it owed $151,000, on August 21, 1891. H. M. Hall was appointed receiver of the Bank, and in January, 1892, he brought suit against the company to recover the indebtedness. He received judgment for $117,900.92, the debt having been reduced by payments while the suit was pending. The sheriff returned the writ of execution resultantly issued with the report: "No property found." February 15, 1892, the Bank was authorized to resume business and February 23, the debt was transferred to the orators in the bill. Charles Henderson and others had subscribed to stock in the Alabama Terminal and Improvement Company, the payments to be made when the Alabama Midland Railroad had been completed within a mile of Montgomery. List of Decisions. To obtain payment of the debt, suit was brought against the subscribers of the stock. It was then alleged that J. W. Woolfolk, as president of the Terminal Company, had bought the stock from the subscribers for the company and it was upon this point that much of the litigation bore. The Supreme Court yesterday handed down the following decisions: Tyson, C. J.-Alabama Terminal and Improvement Company et al. vs. J. L. Hall and L. B. Farley, as trustees, etc., et al, appeal from Montgomery Chancery Court, affirmed, J. L. Hall and L. B. Farley, as trustees, etc., et al vs. Alabama Terminal and Improvement Company et al., cross-appeal, from Montgomery Chancery Court, reversed and remanded: Haralson, J.-C. W. Henry vs. Board of Revenue of Jefferson County, appeal from Birmingham City Court, affirmed. Ashby Brick Company, et al. vs. Ely and Walker Dry Goods Company, appeal from Birmingham City Court, reversed and remanded. Simpson, J.-Birmingham Railway, Light and Power Company vs. Mabel Moran et al., pro ami, appeal from Jefferson Chancery Court, affirmed. Rainer Mercantile Company vs. J. M. Deal, appeal from Coffee County Court, affirmed. J. M. Deal vs. Rainer Mercantile Company, cross-appeal from Coffee County Court, affirmed. Llewellyn Jordan vs. Fennell McDonnell, ef al, as administrator, etc., appeal from Madison Circuit Court, affirmed. John D. Roquemore vs. Vulcan Iron Works Company, appeal from Montgomery City Court, reversed and remanded. Denson, J.-R. H. Martin vs. Jesse French Piano and Organ Company, appeal from Chilton Circuit Court, reversed and remanded. Nim Lawson vs. State of Alabama, appeal from Hale County Court, reversed and remanded. Per Curiam-J. F. Layton vs. George L. Campbell, appeal from Henry Probate Court. Certiorari awarded. J. W. Sparks, vs. J. S. Reeves and Company, appeal from Clay County Court, motions for Certiorari and to