Bank of Pratt City - Pratt City, AL

Bank Information

Episode Type: Suspension → Run → Closure
Bank Type: state
Start Date: January 23, 1911
Location: Pratt City, Alabama (33.540, -86.869)

Metadata

Model: gpt-5-mini
Short Digest: c5b2181b

Response Measures

Full suspension, Books examined

Other: Receiver appointed by court after examiner report; bank declared insolvent and bankrupt.

Description

Court-ordered closing/receiver appointment (Jan 23, 1911) due to insolvency and worthless loans. Depositors gathered and made threats after news of the receiver — described as crowds at the doors — so sequence is suspension followed by depositor agitation; bank remained in receivership and was described as bankrupt in the February report.

Events (4)

1. January 23, 1911 Receivership

Newspaper Excerpt: Charles H. Abbott was appointed to take charge of the business of the bank...The bond of the receiver was fixed at $25,000.
Source: newspapers

2. January 23, 1911 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiner reported insolvent condition, real estate overstated and at least $20,000 loss from worthless loans; court placed bank in hands of receiver.
Newspaper Excerpt: Attorney General Robert C. Brickell...Chancellor A. H. Benners issued a decree to this effect, and Charles H. Abbott was appointed to take charge of the business of the bank
Source: newspapers

3. January 24, 1911 Other

Newspaper Excerpt: a crowd assembled around the doors, many with anxious expression and tearful eyes, hoping against hope...clamorings and threats were una[n]d that the legal course would be pursued.
Source: newspapers

4. February 17, 1911 Other

Newspaper Excerpt: REPORT ON BANK OF PRATT CITY A report on the condition of the Bank of Pratt City, bankrupt, was filed yesterday in chancery by Charles H. Abbott, who was appointed as receiver by the court last January 23.
Source: newspapers

Newspaper Articles (4)

1. January 24, 1911 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, January 24, 1911

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Article Text

TRAGIC SIDE OF FAILURE BY C. H. MANDY There was considerable excitement in stitution. The more conservative of them fairly large depositors, Pratt City yesterday morning when it hopefully of the situation and became known that the Bank of Pratt out the fact that the matter was City had gone in the hands of a receiver. hands of the court, and that crie As is usual with the failure of banks in clamorings and threats were una industrial centers, quite a number of and that the legal course would 1 small depositors, some of them aged peosued. ple and widows, had their life savings in It was small comfort to the m the bank and to this class the failure of however, and there was many an the bank is a tragedy. The news of the heart in the little city last night, closing of the bank by order of the court statement of the bank examiner spread rapidly and a crowd assembled the assets of the bank were anythi around the doors, many with anxious exencouraging. pression and tearful eyes, hoping against There are those who predict a hope. Others made futile threats and better showing when the final sett were loud in their denunciation of those comes and to this hope the small who had charge of the affairs of the in- tor clings.

2. January 24, 1911 The Birmingham Age-Herald Birmingham, AL

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Article Text

RECEIVER NAMED FOR BANK OF PRATT CITY Capital Stock of Institution Was Owned By Defuct Guarantee Bank and Trust Company Following a bill of complaint filed in chancery yesterday morning by Aattor. ney General Robert C. Brickell, praying that the Bank of Pratt City be placed in the hands of a receiver, Chancellor A. H. Benners issued a decree to this effeet, and Charles H. Abbott was appointed to take charge of the business of the bank, which will involve the collecting of its assets and the paying of its liabilities. The bond of the receiver was fixed at $25,000. The petition was filed by Attorney General Brickell following a report made by Assistant Bank Examiner L. S. Hosmer, who was directed to make the investigation. The report of Examiner Hosmer contains among others the following articles: W The entire-capital stock of the Pratt City bank was owned by the defunct Guarantee Bank and Trust company of Birmingham, Ala., which is now in the hands of the receiver. "5. The item of banking house and real estate carried at $17,000 is greatly in excess of the true value of the property, said property not being worth more than $7000. "6. From a careful estimate of the loans now carried by said bank, there will be a loss of not less than $20,000 by reason of worthless paper now carried. "10. That in view of the insolvent condition of the affairs of said bank on the date above mentioned, that in his judgment it is necessary that a competent person be appointed receiver of the said Bank of Pratt City immediately to protect the interests and rights of the creditors and depositors of the said band." According to a statement by G. M. Wehb, who was formerly president of the bank, the affairs of the bank had been recently in the hands of Wilbur Atkinson and his assistant. Mr. Webb. stated that he resigned the presidency of the bank about 60 days ago.

3. February 17, 1911 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, February 17, 1911

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Article Text

REPORT ON BANK OF PRATT CITY A report on the condition of the Bank of Pratt City, bankrupt, was filed yesterday in chancery by Charles H. Abbott, who was appointed as receiver by the court last January 23. In making a short resume of the history of the bank the report shows that

4. February 17, 1911 The Birmingham Age-Herald Birmingham, AL

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of character, poise and depth of understanding." W. B. Leedy "I am very much pleased with the selection," said Mr. Leedy. "All of the men named are fine, and they will give the city excellent service." Webb W. Crawford "Oh! they could not have been beaten," cried President Crawford of the American Trust as he swung aboard the train for Montgomery. "That selection if positively made will be bully. I am very much pleased. I hope it will not be changed in the slightest." Judge H. B. Abernethy "The selection of the commissioners was very good," said Judge Abernethy. "I am very much pleased with the three men named. They are all high-toned men and infinitely capable." Horace Shropshire "I am greatly pleased over the selection, said H. E. Shropshire, Jr. "The men are all capable, have a broad knowledge of municipal politics and will serve in masterly style." B. A. Pepperman "A man on the outside has very little conception of the intricate work of the city," said Mr. Pepperman. "And when they come in they are at once dismayed at the changes from their set notions. Thus mistakes are made. But the three new commissioners are men eminently capable and will rule justly." Dr. Charles Whelan "I am very much pleased with the three commissioners and know they will do the work well," said Dr. Charles Whelan. Fergus W. McCarthy "I am very much gratified over the selections made," said Mr. McCarty. 'They are capable men and know the game well." the Bank of Pratt City was originally incorporated in 1907 with a capital stock of $25,000. W. M. Drennen was president: Tom Stobert, vice president; Wilbur Atkinson, cashier, and Henry Donaldson, assistant cashier. In 1909 the entire capita! stock was acquired by the City Bank and Trust company through W. M. Drennen, and its affairs were conducted by Wilbur Atkinson and Henry Donaldson, cashier and assistant cashier. A sum of $4000, which represents 40 shares of the capital stock held in the City Bank and Trust company, and $1054.61, a balance due by the Guarantee Bank and Trust company, which went into the hands of the receiver, are accounted for in the report of the investigation made by the receiver. The assets of the bank amount to $80,767.28, and the liabilities, including deposits to the amount of $49,544.45 and the capital stock of $25,000, will amount to the same. The value of the real estate in the assets is $17,650. This, however, it is stated will not be realized in full, nor will a large part of the loans and discounts, of which many are said to be of an extremely doubtful nature.