1988. Kelsey City State Bank (Kelsey City, FL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 18, 1928
Location
Kelsey City, Florida

Metadata

Model
gpt-5-mini
Short Digest
2ddc724a498f1d0c

Response Measures

None

Description

The bank failed to open June 18, 1928 and was closed along with two West Palm Beach banks. Reports say it was closed (affiliated with First American) and that other closures prompted fear of a run. A receiver (R. C. Barker) was appointed in August 1928 and later liquidator activity continued through 1931, indicating permanent closure rather than a temporary suspension and reopening.

Events (2)
1. June 18, 1928 Suspension
Cause
Local Banks
Cause Details
Closed to avoid a run growing out of the suspension/closing of the First American Bank in West Palm Beach; affiliated with First American.
Newspaper Excerpt
The Kelsey State bank at Kelsey City, adjoining West Palm Beach also was closed. ... The Citizens bank's door bore the statement that the bank was closed to avoid a run, and for the protection of depositors. It was feared that a run on the Citizens would following the closing of the First American, it was said.
Source
newspapers
2. August 9, 1928 Receivership
Newspaper Excerpt
BARKER IS NAMED BANK RECEIVER KELSEY CITY. Appointment of R. C. Barker of Kelsey City as receiver for the Kelsey City State bank, made August by State Comptroller Ernest Amos was confirmed by Judge E. Chillingworth of the circuit court here.
Source
newspapers

Newspaper Articles (10)
1. June 18, 1928 The Orange Leader Orange, TX
Article from The Orange Leader, June 18, 1928

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Article Text

MORE FLORIDA BANKS CLOSED WEST PALM BEACH, Fla., June 18.-The First American and the Citizens banks here failed to open for business today. The Kelsey State bank at Kelsey City, adjoining West Palm Beach also was closed A statement on the door of the First American said the bank was in the hands of the state banking department. The Citizens' bank's door bore the statement that the bank was closed to avoid a run, and for the protection of depositors. It was feared that a run on the Citizens bank would following the closing of the First American, it was said.

2. June 18, 1928 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, June 18, 1928

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Article Text

Two Palm Beach Banks Are Shut WEST PALM BEACH, Fla., June 18.-(A))-The first American and the Citizens banks here failed to open for business today. The Kelsey State Bank at Kelsey City, adjoining West Palm Beach also was closed. A statement on the door of the First American said the bank was in the hands of the state banking department. The Citizens bank's door bore the statement that the bank was closed to avoid a run, and for the protection of depositors. It was feared that a run on the Citizens would follow the closing of the First American, it was said.

3. June 18, 1928 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, June 18, 1928

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Article Text

Two Palm Beach Banks Are Shut WEST PALM BEACH, Fla., June 18.-(A))-The first American and the Citizens banks here failed to open for business today. The Kelsey State Bank at Kelsey City, adjoining West Palm Beach also was closed. A statement on the door of the First American said the bank was in the hands of the state banking department. The Citizens bank's door bore the statement that the bank was closed to avoid a run, and for the protection of depositors. It was feared that a run on the Citizens would follow the closing of the First American. it was said.

4. June 18, 1928 The Daily Advertiser Lafayette, LA
Article from The Daily Advertiser, June 18, 1928

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Article Text

FLORIDA BANKS IN LIST OF CLOSED AT WEST PALM BEACH Failed To Open For Business This Morning And Brief Statement Made (By The Associated Press) WEST PALM BEACH. Fla., June Three banks in the West Palm Beach area with aggregate resources of more than $7,500,000, failed to open their doors for business today. A statement on the doors of one of the banks merely said that it was suspending through fear run growing out of the suspension of another bank. The suspended banks are: The First American and The Citizens, two of the oldest financial institutions in West Palm Beach, and the Kelsey City State Bank at Kelsey City which was affiliated with the First American. The First American merely announced that the bank was in the hands of the state banking department and the officials have not elaborated upon that information.

5. June 19, 1928 Evening Star Washington, DC
Article from Evening Star, June 19, 1928

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Article Text

THREE BANKS FAIL TO OPEN IN FLORIDA First American Institution at West Palm Beach Gives No Statement. By the Associated Press. WEST PALM BEACH. Fla., June 19.-Two banks in West Palm Beach and one nearby, with aggregate resources of more than $7,500,000, failed to open yesterday and the statement was made on behalf of one of them that it was closed to avoid a possible run growing out of the suspension of one of the others. The banks closed are the First American Bank. the Citizens Bank, two of the oldest financial institutions in West Palm Beach, and the Kelsey City State Bank at Kelsey City near here, which is affiliated with the First American. Officials of the First American could not be reached for a statement. The bank is in the hands of the State banking department. The closing of the Citizens Bank, It was said, was caused by the First American's closing. The First American had been reopened and has been operating for several months following a temporary closing two years ago. The suspensions today did not affect the Central Farmers' Trust Co., the only other bank in West Palm Beach, or the First National. Palm Beach's only financial institution.

6. June 21, 1928 Opelousas News Opelousas, LA
Article from Opelousas News, June 21, 1928

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Article Text

FLORIDA BANKS IN LIST OF CLOSED AT WEST PALM BEACH Failed to Open for Business Monday Morning and Brief Statement Made Three banks in the West Palm Beach area with aggregate resources of more than $7,500,000, failed to open their doors for business Monday. A statement on the doors of one of the banks merely said that is was suspending through fear of a run growing out of the suspension of another bank. The suspended banks are: The First American and The Citizens, two of the oldest financial institutions in West Palm Beach, and the Kelsey City State Bank at Kelsey City which was affiliated with the First American. The First American merely announced that the bank was in the hands of the state banking department and the officials have not elaborated upon that information.

7. August 9, 1928 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, August 9, 1928

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Article Text

BARKER IS NAMED BANK RECEIVER KELSEY CITY Appointment of R. C. Barker of Kelsey City as receiver for the Kelsey City State bank, made August by State Comptroller Ernest Amos was confirmed by Judge E. Chillingworth of the circuit court here. Mr. Barker is widely known resident of Kelsey City. W. Terry Gibson and D. L. Southard. West Palm Beach lawyers, act as counsel for the receiver.

8. August 13, 1929 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, August 13, 1929

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Article Text

DAILY RECORD CIRCUIT COURT National Bond & Investment Company, corp., VS. L. E. Glass, fj for defendant; Abbott & Gaulden. Mary A. Willson vs. Mala E. M. Crittenden, et al., fd mf; Williamson Dorothy Clark Barton, et vir, VS Marjorie McNealy. single person, order of dism.: James K. Stump. Edward J. Barton vs. Marjorie McNealy. single person, ord. of dism.; James K. Stump. Fairbanks Morse Company, Inc., a corp., vs. F. E. Murphy, dec., dams. $1,000; A. Melrose Lamar Alice Johnson vs. Henry E. Johnson. fd div.; H. E. Dennison. Prosper Shevenell VS. Fred W. Gradolph, et al., be fm.: J. W. Salisbury. R. C. Barker, as rec. of the Kelsey City State Bank, Florida bank corp., VS. Selby Investment Company, corp., organ. and exist. under the laws of the state of Ohio, et als., fd mf.: Southard Gibson. MARRIAGE LICENSE Milton Strong. 1735 S. W. Eighth, Miami, to Dorothy M. Brown, 1704 North Poinsettia avenue. WD-$10.00 and ove Greynolds and Monroe, Inc., to Miss Thelma H. Maus, lots and 9. blk 7, Monroe Heights, Riviera, 11-68. WD-$100.00 and ove W. H. Gardner and Mary Rose Gardner, his wife, to Benjamin D. Kerr. sgl., lot 12. blk Cocoanut Lodge, Riviera. WD-$10.00 and ove-S. R. Copper and Margaret A. Copper, his wife, to John H. Kinkade, SW 1-4 of SE 1-4 of SE 1-4 sec 21-41-36. Special WD-8-9-29, $10.00-F. A. Gutelius, as receiver of Farmers Bank & Trust Co., to Elise Hommond: Tract 1. Beginning at pt on the E shore of Lake Worth and 924 ft north of the SW cor of lot 3, sec 343-43, and being the NW cor of the land conveyed to (Mayor Meeks) Kate Louise Meeks. running th E along the N line of said Meeks property to the Atlantic ocean, th northward along the ocean 240 ft more or less, the land conveyed to Thomas C. Boyd: th W along Boyd's S line to the shore of Lake Worth: th southward along the lake shore 240 ft. more or less, to pt of beg. together with all riparian right thereunto belonging Tract Being all that part of lot 1, section 2-43-43, and lying E of above described tr and to the Atlantic ocean, together with all riparian rights thereunto belonging. Tract 3. Comm at stake on the E shore of L. W. 240 ft S of the stake marking the S line of certain tract of 10 acres conveyed by Thomas P. McKenna, by John P. McKenna, his atty. in fact, John P. McKenna and Eleanor Ridge McKenna, his wife, Christopher C. McKenna, unmarried, by John P. Mc. Kenna, his atty in fact to Thomas C. Boyd, by deed dated January 13, 1893, and recorded in Deed Bk "G," page 335, Dade county, Florida, records: running th S along the shore of L. W. 300 ft; th E to Atlantic ocean; th north along the ocean beach 300 ft; th W to pt of beg. being part of lot of sec and part of lot sec 2-43-43, and cont. 12-1 acres, more or less, together with all R-R thereunto belonging. Excepting however, lots 1-A, to 12 both inc, 17 of E1 Canto, s-d in the Town of Palm Beach. Florida. QC-$363.82-1. Otto and Warren Otto, her hus, to Own Your Own Home Company, Inc., east 25 ft of W 1-2 of lot 2, blk 23, Old Town plat of city of West Palm Beach. Master's Deed - $5,000.00-Homer T. Amis, spl master. to Margaret Sanders Le Blanc and Mary Edith LeBlane, lot 4, blk 45, Northwood, WPB. (correction deed). WD-$10.00 and ove-D. J. Ross and Florence E., his wife, to L.-F. Realty Company, lot 12, blk 28, Flamingo Pk, WPB. Master's Deed-$2,000.00-J. S. White, as spl master, to Bessie M. Bussey, admirx of estate of H. Bussey, dec, lot and East 15 fet of lot in blk 1, Delavan Lodge Add, WPB. Trustees' Deed $1,000.00-John Zimmer. trustee in bankruptcy of Pinewood Development Co., to GrayBrown Co., lot 3, blk 31; lot 25, blk 39: lot 18, 19 and 20. blk 67: lot 14 and 15, blk 69: lots and 2, blk 86: lots 38 and 30, blk 90: lot 24, blk "H," all in Northwood, WPB. Eustis-Powell's studio and store moved to remodeled quarters. People of Great Britain bought 100,000 pianos last year.

9. August 26, 1930 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, August 26, 1930

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Article Text

COUNTY TAKES ACTION TO REGAIN COLLATERAL FROM BANK RECEIVER Many Matters of Business Handled By Commission In Monday Meet Legal action to recover on collateral worth approximately $140,000 given by the Kelsey City State Bank to secure county deposits aggregating approximately $135,000 representing Special Road and Bridge District No. 3 funds, taken over the bank receiver, will be pushed, to the county commission in meeting Monday. The board directed George W. Coleman to proceed with the suit he had started against the bank. The action, taken on motion of Commissioners Willard G. Smith, of Pahokee, and Ralph Osborn, of Lake Worth, with Chairman I. Himes, of this city, voting for the motion, was Mr. Coleman expected to bring his suit to successful conclusion as soon as possible. The collateral was placed in the bank by the district trustees and the receiver, on taking over the bank, claimed the securities, mostly in the form of notes and mortgages, as part of the bank's property. Replying to letter of inquiry from County Attorney Rufus M. Robbins, County Attorney John E. Matthews, of Duval County, wrote "I know absolutely nothing concerning any money which may be due the county from the state.' Attorney Robbins had addressed the letter of inquiry to Mr. Matthews following the reading of despatches that Fred O. Eberhardt Tallahassee publisher, had entered into contract with the Duval County commission for securing certain money for the county from the state. Eberhardt was arrested several days ago in connection with an alleged assassination plot against Governor Carlton. letter from Raymond S. Yeomans, as attorney for the town of Riviera, concerning the board's plans for the repair of Singer Bridge which was badly damaged by the 1928 hurricane, was referred to Commissioner A. B. Wilson, of Jupiter, who is out of the state as is Commissioner T. M. O'Neal, of Delray Beach. The board relieved the bondsmen of former Deputy Sheriff Elmer Padgett from further responsibility by Sheriff R. C. Baker that he had revoked Padgett's County Engineer Jake Boyd was instructed by the to prepare float for the Labor Day parade to represent the county A communication read from Charles J. Parmelee, president of the Greater East Coast Labor Day celebration, inviting the commission to participate in the parade

10. January 27, 1931 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, January 27, 1931

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KELSEY CITY BANK EXPECTED TO PAY 10 PER CENT SOON Dividend Expected About February 1, Following Settlement The Kelsey City State Bank is expected to pay 10 per cent dividend by next Monday or shortly thereafter, J. P. Cochrane, as liquidator of the defunct bank, announced Monday following final settlement with the county of suit involving approximately $105,000 in collateral and $15,000 cash. In the event the dividend becomes available as Liquidator Cochrane expects total of about $6,700 will be distributed among depositors. The bank closed in June, 1928, and has not made a dividend payment. Liquidator Cochrane already has asked State Comptroller Ernest Amos for permission to make the payment. The county commission Monday morning gave instructions to George W. Coleman, attorney for the trustee, to dismiss damage suit brought against the former receiver, R. 6. Barker, involving col ateral amounting to approximately 6143,000 for deposit of about $130,000 made by trustees of Special Road and Bridge District No. 3. Praecipe for dismissal of the suit was signed for the county Monday after Liquidator Cochrane had given $15,000 check, collateral having face value of $105,019.50 and jurisdiction over three or four suits involving mortgaged property to the county Suit was started after former Receiver Barker had appropriated the collateral which had been placed in a safety deposit box in the bank the receiver claiming the collateral should be listed among the general assets of the bank. Confirmation of the settlement has been given by Comptroller Amos and Circuit Judge C. E. ChilSettlement of a claim for $21,000 held against the Citizens Bank of West Palm Beach to the credit of the Palm Beach County Road Special Fund, was authorized by the board. The original claim was for $30,000, secured by $21,000 in Town of Boynton bonds Receivers certificates for $9,000 were issued and negotiations for the settlement reached Monday was started. Under the terms of the settle-