2431. Colonial Bank and Trust Company (Miami, FL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
May 15, 1929
Location
Miami, Florida (25.774, -80.194)

Metadata

Model
gpt-5-mini
Short Digest
5aa1e874

Response Measures

Full suspension, Books examined

Other: State and federal officials began reorganization or liquidation of the bank after suspension.

Description

Multiple contemporaneous newspaper reports state the Colonial Bank and Trust Co. of Miami ceased business and failed to open on May 15, 1929 after several days of heavy/steady withdrawals; state/federal officials began reorganization/liquidation by July 12. Cause appears to be bank-specific adverse condition (insolvency/weakness) that produced withdrawals. OCR errors in articles (e.g., spacing and missing characters) corrected when extracting dates and quotes.

Events (3)

1. May 15, 1929 Run
Cause
Bank Specific Adverse Info
Cause Details
Steady/heavy withdrawals of cash over several days precipitated loss of liquidity; bank records reportedly showed inadequate cash on hand.
Measures
Ceased business; did not open on May 15
Newspaper Excerpt
attributed its closing to steady withdrawals of cash during the last four days.
Source
newspapers
2. May 15, 1929 Suspension
Cause
Government Action
Cause Details
State examiners/authorities closed the institution (failed to open) and later state/federal officials began reorganization or liquidation.
Newspaper Excerpt
the Colonial Bank and Trust company of Miami failed to open on that day.
Source
newspapers
3. July 12, 1929 Receivership
Newspaper Excerpt
state and federal officials began reorganization or liquidation for three Florida banks today ... the Colonial Bank and Trust company of Miami failed to open on that day. Approximately $9,000,000 in depositors' money was tied up today as state and federal banking authorities worked toward the reorganization or liquidation of six Florida banks which have closed within the last eight days, ... the Colonial Bank and Trust company of Miami failed to open on that day. While banking department officials from the state and federal government audited the books of the six banks ... John L. Fouts ... prepared for preliminary hearing on three charges involving violation of state banking laws. (multiple articles, July 12-13, 1929).
Source
newspapers

Newspaper Articles (15)

Article from The Salisbury Post, July 12, 1929

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Article Text

Fouts, Headed Four Banks, FurnBond. Jacksonville, July 12 While state and federal officials or liquidation three Florida banks today, the president four other Florida faced charges of violating of the state banking Two of the banks that closed yesterday were Deland, banks that city. They were the Volusia County Bank Trust company and the First National banw Deland. which shut its doors during the after heavy by ing Volusia bank. The third was the Colonial Bank and Trust company of Miami. John made bond of $10,000 after his arrest filed by State Solicitor Hardin Polk county, president director the State bank of the First bank First National bank and the State bank Winter Haven. Information filed against Fouts three counts charging had "loaned" himself $5,000 from funds the State bank of Bartow without consent board of directors, that had altered the minutes of the board make the loan appear and that had taken money when sources of the institution were not legal The banks headed closed May 15.


Article from The News-Star, July 12, 1929

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FLORIDA BANKERS FACE CHARGES OF VIOLATING LAWS Associated Fla., July While state and federal officials be. gan Florida banks today, the president four other central Florida banking institutions faced charges violating the state banking laws. Two of the banks that closed yes banks Volusia County Bank and Trust pany and the First National bank of DeLand, which shut its doors during the after heavy run cipitated by the closing the lusia County third institution the Colonial Bank and Trust company of Miami. John Fouts, made bond of $10,000 after his arrest on filed State Hardin Peterson Polk county, and director of the State bank of Bartow, the First National bank land, the First bank Auburndale and the State bank Winterhaven.


Article from The Vicksburg Post, July 12, 1929

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STATUS UNDER INQUIRY IN FLORIDA AREA Banks Face Charges of Violating State Banking Laws (By JACKSONVILLE, Fla., July While State and Federal officials began liquidation for three Florida banks today, president four other Central Florida banking institutions faced charges of violating the state banklaws. Two the banks that closed yesterday were in Deland, the only banks in that city. They were the Volusia County Bank Trust Company and the First National Bank Deland, which shut its doors during the after heavy run precipitated the closing Volusia County Bank. The third institution was the Colonial Bank and Trust Company Miami. John Fouts, who made bond of $10,000 after his arrest on information filed by State Solicitor Hardin Peterson Polk county, was president and director of the State Bank of Bartow, the First National Bank the First National Bank Auburndale and the State Bank of filed against Fouts in three counts charged he had "loaned" himself $5,000 the funds the State Bank of Bartow without consent the board of directors, that he had altered the minutes of the board to make the appear regular, and that he had taken the money sources of the institution were legal requirements. The banks headed closed May 15. Time arraignment for preliminary hearing was expected to be set in few days.


Article from Daily Sentinel, July 12, 1929

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Seven Florida Institutions Afoul State Bank July state and Federal officers began reorganization or liquidation for three Florida banks today, the president of four other Central Florida banking faced violating the state bank laws terday De Land, the stitution Colonial Bank and Trust Company Miami John Fouts. made bond $10,000 after his arrest formation filed by State Solicitor Hardin Peterson Polk and director the Bank tional Bank the First Bank and the State Bank Winter Information against Fouts three counts charged himself $5,000 from consent the rectors. minutes the board to loan appear and had taken when the not requirement.


Article from Finger Lakes Times, July 12, 1929

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Three Florida Banks Close, Banker Arrested Jacksonville, Fla., July While state and federal officers began liquidation for three Florida banks today, the of four other central Florida faced charges of violating of the state banking Two the banks that closed yesterday were the onbanks that city They were Volusia County Bank and Trust Company and the First National Bank of De Land, which shut doors during the morning after precipitated closing of the VolusiaCounThe third institution the was Colonial Bank and Trust Company Miami John Fouts, bond of $10,000 after his arrest on information filed by Solicitor Hardin Peterson of Polk counpresident director the State Bank of Bartow, the First Bank of Lakeland, the First National Bank of Auand the State Bank Winter Information filed against Fouts three counties charged he had "loaned" himself $5,000 from the funds State Bank of tow without consent the of directors, that tered the minutes of the board to make the loan appear regular, and that he had taken the money when resources of the institution were not legal The banks he headed closed May The Colonial Bank and Trust Company was capitalized 000 with surplus $50,000 had been organized for attributed its closing to dy withdrawals of cash during the last four days. Carpenter president.


Article from Imperial Valley Press, July 12, 1929

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Two More Florida Banks Close Up JACKSONVILLE, Fla., July 12 (U.P)-Deland was without a financial institution today, resulting from the closing yesterday of the First National Bank and the Volusia County Bank and Trust Company. Runs during the past four days also caused the Colonial Bank and Trust Company, of Miami, capitalized at $100,000, to cease business. John L. Fouts, of Bartow, was arrested late yesterday at Winterhaven on a charge of violating the state banking laws and was freed on $10,000 bond. Fouts was president and director of four central Florida banks which closed their doors on May 15 of this year.


Article from The Shreveport Journal, July 12, 1929

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Reorganization Of Three Florida Banks Is Begun (By the Associated Press.) JACKSONVILLE. Fla., July 12.While state and federal officials began reorganization or liquidation of three Florida banks today, the of four other central Florida banking institutions faced charges of violating the state bank. ing laws. Two of the banks that closed yesterday were in Deland, the only banks in that city. They were the Volusia County Bank and Trust company and the First National Bank of Deland, which shut its doors during the morning after heavy run precipitated by the closing of the Volusia County bank. The third institution was the Colonial Bank and Trust company of Miami. John L. Fouts, who made bond of $10,000 after his arrest on an information filed by State Solicitor Hardin Peterson of Polk county, was president and director of the State Bank of Bartow, the First National Bank of Lakeland, the First National Bank of Auburndale and the State Bank of Winterhaven.


Article from Sun Herald, July 12, 1929

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INVESTIGATING BANK CLOSING President of Four Florida Institus tions Face Charges of Violating Banking laws. Jacksonville, Fla., July reorganization of liquidation for three Florida banks today, the president four other central Florida banking stitutions faced charges of violating the state laws. banks that closed yesterday were in Deland, the that They were the Volusia County Bank Trust the First National Bank of Deland, shut its doors during the morn after heavy run closing of the Volusia County Bank. The third was the Colonial Bank and Trust Company Miami John L. Fouts, who of $10,000 after his arrest filed by State Solice Hardin Peterson of Polk county, and director of State Bank Bartow, the First Nate ional Bank of Lakeland, the First National Bank of Auburndale and the State Bank of Winterhaven. Information filed against Fouts three he had himself $5,000 the funds of State Bank Bartow without of that had altered the minutes of the board to make the loan appear regular, that he had taken the money when of the institution were not to legal The banks headed closed May 15. Time of arraignment for prelime nary hearing was expected to be in few days.


Article from New Britain Herald, July 12, 1929

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FLORIDA BANKING UNDERGOES PROBE Three Institutions Close-President of Four Faces Charges Jacksonville. Fla., July 12 (P)While state and federal officers began reorganization or liquidation for three Florida banks today, the president of four other central Florida banking institutions faced charges of violating the state banking laws. Two of the banks that closed yes terday were in De Land, the only banks in that city. They were the Volusia County Bank and Trust Co., and the First National Bank of De Land. which shut its doors during the morning after heavy run precipitated by the closing of the VoluMiami Bank Closes The third institution was the Cojonial Bank and Trust company of Miami. John L. Fouts, who made bond of $10,000 after his arrest on an information filed by State Solicitor Hardin Peterson of Polk county. was president and director of the State bank of Bartow. the First National Bank of Lakeland, the First National bank of Auburndale. and the State Bank of Winter Haven. Information filed against Fouts in three counts charged he had "loaned" himself $5,000 from the funds of the State Bank of Bartow without consent of the board of directors. that he had altered the minutes of the board to make the loan appear regular. and that he had taken the money when sources of the institution were not up to legal requirement. The banks he headed closed May 15. Organized Three Years Ago The Colonial Bank and Trust pany was capitalized at $100,000 with surplus of $50,000. It had been organized for three years and attributed its closing to steady withdrawals of cash during the last four days. J. V. Carpenter was president. The Volusia County Bank and Trust company had resources of $2.capital stock of $200,000: surplus of $100,000. and discounts of $1,724.The First National Bank of De Land had resources of $1,789,972.81: capital stock of $100.000: surplus of $25,000 and deposits of $1,211,750.47.


Article from The Buffalo News, July 12, 1929

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HEAD OF FARM BANKS IN FLORIDA ACCUSED John L. Fouts Faces Arrest as Finance Scandal Spreads. JACKSONVILLE Fla. July 12 (P)While and officers began reorganization liquidation three Florida today the president of four Florida banking institutions faced charges of violating the state banking Two the banks that closed vesterday were in De Land, the only banks in that city They were the Volusia County Bank and Trust company and the First National bank De Land. shut its during the morn ing after heavy run by the closing of the County bank The third institution was the Colonial Bank and Trust company of Miami John Fouts. who made bond of $10,000 after on an information Hardin Peterson of Polk was president and director of the State bank of Barton. the First National bank of Lake land the First National bank of Auburndale and the State bank of Winter Information filed against Fouts in three he had "loaned" himself $5000 from the funds of the State bank of Barton without consent the board of directors, that he had altered the minutes of the board to make the loan appear regular and that he had taken the when reof the were not legal requirement The banks he headed closed May 15


Article from The Greensboro Record, July 12, 1929

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REORGANIZE 3 FLORIDA BANKS President Of Four Others Held For Law Violations JACKSONVILLE, Fla., July 12. state and federal of ficials began reorganization or Hquidation for three Florida banks today, the president of four oth er central Florida banking Institutions faced charges of violating of the state banking laws. Two of the banks that closed yesterday were in Deland the only binks in that city. They were the Volusia County Bank and Trust company and the First National bank of Deland. which shut its doors during the morning after heavy run precipitated by the closing of the Volusia county bank. The third institution was the Colonial Bank and Trust company of Miami. John L Fouts, who made bond of $10.000 after his arrest on an information filed by State Solicitor Hardin Peter son of Polk county. was presi- dent and director of the State bank of Bartow, the First National bank of Lakeland The First National bank of Auburndale and the State bank of Winterhaven. Charges Information filed against Fouts is three counts charged he had "loaned" himself $5,000 from the funds of the State bank of Bartow without consent of the board of directors. that he had altered the minutes of the board to make the loan appear regular. and that he had taken the money when resources of the institution were not to legal requirement. The banks he headed closed May 15.


Article from New Britain Herald, July 13, 1929

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FLORIDA BANKS IN FINANCIAL TROUBLE TWO More Fail in Daytona Beach-Probe Continues Jacksonville, Fla.. July 13 (AP) Approximately $9,000,000 in depositors' money was tied up today as state and federal banking authorities worked toward the reorganization or liquidation of six Florida banks which have closed within the last eight days, five of them since Thursday, The latest to fail were two in Daytona Beach. the Merchants Bank and Trust company and the Atlantic Bank and Trust company, which suspended business vesterday. Both were closed. according to notices on their doors, by state bank examiners pending reorganization for the protection of their customers. The failure of the Daytona Beach banks brought a run on the two remaining institutions in the city, which continued business despite heavy withdrawals. De Land. in the same county, suffered closing of the only two banks in the city, the Volusia County Bank and Trust company and the First National bank. Thursday, while the Colonial Bank and Trust company of Miami failed to open on that day. The Peoples' bank of Jacksonville nad closed last Friday morning. While banking department officials from the state and federal government audited the books of the six banks. John 1.. Fouts. president of four other closed central Florida banks. prepared for preliminary hearing on three charges involving violation of state banking laws. Fouts was president and director of the State bank of Bartow, the First National bank of Lakeland, the First National bank of Auburndale and the State bank of Winter Haven.


Article from The Spokesman-Review, July 14, 1929

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MORE FLORIDA BANKS GO UNDER Oldest Institution in Seminole County in Hands of Comptroller. HUGE SUMS TIED UP Two Daytona Beach Houses Fail to Open Face Heavy Runs. SANFORD, Fla., July 13. (AP)-The First National bank, oldest banking Seminole county, was closed today. notice its affairs had been placed hands comptroller. The First National was more than years old. and deposits $1,800,000. Only other bank remains here, the Sanford Atlantic National bank. Sanford the heart of the celery growing belt. $9,000,000 Tied Up. Approximately in dewas tied up today as state and authorities and liquidation six Florida banks which have closed within the last eight days. The were two in Beach, the Merchants Bank and the Atlantie Bank and Trust company which yesterday. Failures Runs. The failure the Daytona Beach banks brought the on maining the city, which continued despite heavy withdrawals. Deland, the same closing of the only two banks the the Volusia County Bank and Trust company and the First National bank, Thursday, while the Colonial Bank and Trust company of Miami falled The People's closed last Friday While banking department offi. clais from and federal ments audited the the six banks, John Fouts, president four other closed central Florida banks, prepared for preliminary hearing three charges involving violation of state banking laws.


Article from The Palm Beach Post, July 20, 1929

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PROBE TO BE OPENED ON MIAMI BANK CASE Miami, July tigation the county solicitor's fice in attempt origin with being responsible the run forced the Colonial Bank and Trust Comclose its doors will been moned appear for


Article from The Miami Herald, May 13, 1930

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SCANDAL MILL Continued from Page barrassing M. Lehman, sheriff: N. Vernon Hawthorne. state's attorney: George McCaskill, county solicitor, and Chappell, member of the legislature from Dade county. It charged that 5,000 pamphiets bearing extracts from an published ing the Dade headed "How Should Have Been Written." charging that officials named sanctioned the of gambling houses, were printed and circulated by the group. were indicted for conspiracy in the alleged kidnaping of Lally 1930, subsequent refusal the grand jury Later, of his Gautier, before grand jury, after he had been charged with contempt and said have admitted that alleged kidnaping hoax about the indictment Sheriff M. Lehman, on that the sheriff had part the alleged kidnaping The against Lally and charges alleged naping the dego before the grand jury Lehman kidnaped Lally to prevent him from appearing and certain testimony claimed to have had touching on the question of alleged malpractice of under "the color of his office sheriff. The charges that Lally the grand that the charges of and for indicting the sheriff. The two men specifically charged with delaying and embarrassing and hindering Mr. Hawthorne and the grand jury its vestigation and that the acts of Lally Sheneman others the grand jury agreed be falsely and maliciously and committed to injure the morals and prevent the of the state and to prevent or Morgan Sheneman placed under bail bond of $1,000 and Lally under bond $2,000. The grand jury's final report attacked Sheriff Lehman, charging that the "neglects and omissions of Sheriff M. P. Lehman chief executive law enforcement officer of this county has seriously reflected upon all governmental and has been largely for bringing nity into disrepute one having for the obedience to its The report also that "Sheriff Lehman take into account his oath of office, resign or be reThe method of operations of the county the report, which forth that separate, and expensive are being by the county make tax burdens for the taxpayers. The grand jury when empaneled charged specifically to into the matter of taxation in its investigations. The report criticized W. Cecil Watchairman county commissioners, for private secretary not maintain offices the and did report the though he is county fund Ernest state criticized for allowing the Colonial Bank Trust Company to operate after he had notified the officials banking institution in November, 1928, of its condition, and on the part for in assessing property grand jury's report follows: empanelled sworn, the Hon. Atkinson charged with reference to matters taxation and the expenditures of tax money. of the court we have kept in mind; its and the welfare of this been realized the point of inquiries some of the of find the established practice has for the county sioners inclined themreference their separate districts ruler kingdom all his own, exercising and authority programs and make expenditures public suit his individual whims, and to many instances to be offended if such program and expenditures were questioned the of the board of comfind that result of this practice, the taxpayers burdened with additional expense five complete, distinct, independent expensive ganizations, with attendant and additional expense of maintaining the various and deheads each. "The taxpayers under this system Five seperate road departments. separate sets of road machinery Five separate road supervisors or foremen. "(d) Five separate machine shops. Five separate machine shop foremen. Five of trucks, tracroad road shovels, drag and the implements used in doing the county's work. has been the common practice for individual to purchase expensive machinery, equipment, tools, material whenever fit, in small quantities. use in district, when similar equipment not available in all the districts, but ing be stored exposed the elements wasted. The recent attempt to adopt resolution thwarted by the agent to advertise for "Competitive Bids" for road material already purchased and delivered, indicative the manner which the county's be administered find in desolate and sections the county been for, and within their respective and independent districts, involving immense amounts public funds, without seeking the counsel of the board, and without its "We find that the efforts of the county agent the duties his office in purchasing and for county purposes met and meeting So autocratic have been of the commissioners exercise their districts without or molestation, that determined efforts have been threatened and made have the office of purchasing agent abolished. spite the maintenance by the ters in the in which the are furnished public expense, and equipment they necessary needful, appears that the present chairman of the board of coundoes now and has for period in excess of four years, maintained on county pay roll private quartered the fice in with the dollars day. The duties this according his testimony. mostly running errands, making up pay rolls, writing letters. and answering inquiries that come the office commissioners' office in the maintained for the county's business has complete force, including help all The prito in the office in the never ports services being either not available any the sioners, or not taken advantage of by them. "The cost of maintaining the county has been subject of complaint, and make thorough Their copied indicates that this respect the county commissioners are deserving of commendation. committee found, contrary to adverse that the building is being operated cared for efficiently by apparently employed good operating this other buildings vastly methods required that no very evident program retrenchment appears. Comparison this building other public buildings of similar nature, specifically Los Angeles, maintenance rather below than above the average. report should not be Interpreted to mean that has been found but the personnel in charge appears aware adand made time and allow. "Colonial Bank and Trust Company. We have the fnto the of be one great The closing bank, their directly hundred (900) depositors. The had on posit, according to their records, approximately hundred thirty thousand dollars ($330,000), and in actual cash at the time its closing less than dollars though there no run on the bank, almost belief. appears from the records of the that state condition the number and had called its condition to the of the president directors far back November, 1928. The bank remained open, conditions going from the tenth day 1929. In addition heard stock appears from their published and