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FLORIDA BANK CLOSED ORLANDO, Fla., Aug. bank Orlando and The State failed to open its Trust company, notice posted on doors today the bank had been the door said protection of declosed for the that had been positors and the hands of the state placed in banking department COUNTY COURT IN Woodward her Estate of Thomas were two settlement: Petition her family: order of hearing; notice. report; William Bruett, Criminal hearing. LUR Omaha
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A SERIES OF RUNS BROUGHT FLORIDA BANKS TO THE WALL After Twenty-One Months of Continued Losses, the Fruit Fly Scare Finally Forced the Financial Crash in the State. (By The Stor's Own Service.) IAMI, FLA., Sept. 14.-Florida banks, beginning with M the waning of the boom in 1926, consistently lost $100,000 an hour every banking business hour for twenty-one consecutive months, and gave up in actual cash 400 million dollars in the last four years. July 17. fifteen of these institutions broke under the strain and turned over their affairs to the state comptroller, Ernest Amos. Combined capitalization of the fifteen suspended banks was $3,630,000, deposits of more than 22½ million dollars, and assets of nearly 30 million The Citizens Bank and Trust Company of Tampa, parent for ten smaller banks in West Florida, surrendered to its depositors % million dollars in one day. It was one of the severest bank runs in Florida's Lose $800,000 in Week. The State Bank of Orlando and Trust Company, which closed August 5. gave up million dollars out of total of 416 million in deposits in ninety days, $800,000 of which was withdrawn in the last week of its existence. The closing of this bank, one of Florida's outstanding financial institutions, followed consistent withdrawals of large accounts and was not precipitated by general run. It simply failed to open for business on Monday The Volusia County Bank of Deland. home of John B. Stetson university, fifteen miles west of Daytona Beach, and city with normal population of 15,000 to 20,000, obtained $700,000 in new funds early in the summer with which to carry on its operations, records at the comptroller's office further show. Under ordinary conditions. the amount would have been entirely adequate to support the institution through any reasonable amount of depression in the off-season. However. this reserve soon was wiped out and the bank closed its doors along wtih fourteen others in the mad rush July 17. Federal Reserve Aids. The complete breakdown of the entire financial structure of the state was perhaps only averted by the prompt measures taken by the Federal Reserve Board of Atlanta in forwarding 5 million dollars to Florida to bolster up cash positions of its member banks, and the establshment by the general board of two mil- lion dollar depositories in the state for use in case of emergency. For every effect there must be cause and should be of interest to go back and trace some of the causes which combined to break down the confidence of the people and create in their minds the idea that all banks were unsafe, resulting in widespread capitulations. It is human nature to become panicky when personal savings are endangered. The run on a Brooklyn bank August 15, caused by carbuncle on the neck of its president, is evidence of that idiosyncrasy. Reports prevailed the president had died from the effects of the boil and that a run on his bank followed his death. The rumor of run started a real run, and even the presence of the "dead" president at the head of the withdrawal line could not subdue the excitement. More than million dollars in cash was hurriedly withdrawn. Postal Savings Run. In 1926 report was spread about "dark town" in West Palm Beach, Fla., that the postal savings division of the United States government was going to fail. A wild run was started in the postoffice. Washington postal savings officials assured them the entire financial structure of the government was behind its postal savings but this had no effect upon them. In time the run played out. About the same time. reports were current from all parts of the state of severe bank runs, followed by numerous suspensions. Newspapers in many instances declined to publish any information regarding failures elsewhere in the state for fear of alarming their own citizenry. and for the added protection of their local institutions Nevertheless, the news was transported. one way or another, and the panic proved to be highly contagious. In almost every instance bank failures came in clusters, on the swell of a wave of unrest and broken faith which repeatedly swept the state. Came lull: business men met together and proclaimed prosperity and "good times just ahead. Fruit Fly Brings Depression. Then came the Mediterranean fruit fly, new and unheralded experience. As soon as the quarantine was announced and the lid clamped down, this enthusiasm turned into pessimism; prosperity, at least psychologically. became depression. The cycle had made another revolution and on July 17 a new wave of panic, of far INDIANS SLAY A MEXICAN EXPLORING AN ANCIENT TEMPLE. Seeking Hidden Gold in the Ruins of old Native Building. Party Is Attacked in the Night. greater force and proportions than DIE IN A TREASURE HUNT before, swept the state. Quiet withdrawals of large accounts were rumored Central and South Florida, and those withdrawals fed the flames of distrust into excited runs. Likewise, the failure of one bank was the signal for additional runs, and before these flames could be quenched, Florida had experienced oen of the worst financial scares in the nation's history. These suspensions, Amos says, were caused by combination of developBy JACK STARR-HUNT. ments, chief of which was the feeling (City of Mezico Correspondent of The Star.) of distrust and panic resulting from continued business depression, and THE CITY OF MEXICO, Sept 14.-A climaxed by the appearance of the tale of a treasure hunt in an ancient fruit fly. Among the contributing temple in Oaxaca that ended tragicfactors, in addition to the fly and ally is related in El Universal, Mexico general unrest, the comptroller points City newspaper. out, are hang-over real estate loans by banks from the boom period, and Four City of Mexico men, Jesus 'propaganda, probably originated by Rodriguez, Damaso Lopez, Humberto selfish interests and circulated for Diaz and Manuel Franco, after gainseveral weeks, about the banking sit- ing from the government, uation in South Florida.' searched for legendary wealth supVictim of Complex. posed hidden in the Tepescolula temple in the village with the same name That Florida has been the victim in the state of Oaxaca. of 'psychological complex" is adThe natives were hostile to them mitted by more than one responsible from the first, refusing to sell the official, and on which virtually all treasure hunters as much as & loaf the blame for the extensive bank failof bread. One night & band of Inures laid. A statement issued by the board of directors of the Citizens dians attacked their camp, killing Bank at Tampa. its % mil- Senor Franco and wounding his sislion dollar run and suspension of op- ter, who was with the party. eration said: The treasure. if any, is still conThe present situation is due to un- cealed in the ancient temple. wise and continued adverse conditions gossip following the appearance MORE ACCIDENTS IN KANSAS. the Mediterranean fruit which was responsible for feeling unrest and Labor Commission Announces Comfear developed on the part of the peoparative Figures. ple. At Tallahassee, the comptroller TOPEKA BUREAU placed most of the blame on the THE KANSAS CITY STAR people for lack of confidence in their (By Member The Staff.) own institutions, adding that, "SamTOPEKA, Sept. 14.-There were 1,488 son-like, they have brought down the industrial accidents in Kansas in Autemples upon themselves.' gust, 52 more than in July, according If Florida being shaken down to to the monthly bulletin today of G. solid foundation, as its senior UnitClay Baker. chairman of the commised States senator, Duncan Fletcher, sion on labor and industry. Every observes the situation, the rock bot employer in the state is required to tom must have been reached. and report regularly the accidents in inwill be found when the present dustrial institutions which cause any financial chaos is cleared. injury to workers. There were 1,441 And if, as every circumstance tends accidents which resulted in tempoto prove, that Florida's misfortunes rary total disability, 39 in permanent are purely mythical. public confidence total or part disability. and 8 remust be rebuilt on the foundation sulted fatally Of such accidents 159 that has survived. In the Class of '68 at M. U. Own COLUMBIA, Mo., Sept. 14.-The oldest University of Missouri alumnus to accept an invitation to attend the institution's annual homecoming here October 26 is G. M. Horne of St Louis. Graduated from the university in 1868, Mr. Horne is now 87 years old. He formerly lived at Arrow Rock and served with General Sterling Price during the Civil War. A Stock Show at Newtown, Mo. The Star's Own County Stock Show here next Thursday. Friday and Saturday will bring together great agricultural exhibit from Sullivan, Putnam and Mercer counties. were sustained by minors, 157 resulting in temporary total disability. in permanent partial disability, and in death. There was an increase of 52 in the total number of accidents throughout Kansas over the month of July, with corresponding increase of 56 of those accidents resulting temporary total disability, an increase of over last month in permanent part disability, but decrease of five in the accidents resulting fatally. Of the accidents to minors there was an increase of 14 in the total number reported, which is an increase of 12 over last month in those classed as temporary total disabilities, also an increase of 2 in the permanent partial disabilities There was fatality listed among the accidents to minors in each month.
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COLLATERAL OTHER BANKS IS GIVEN RELEASE $373,439 Payment Will Facilitate Program Of Retirement of $373,439.30 in obligations the defunct State Bank of Orlando and Trust company, representing loans from the Atlantic National Bank of Jacksonville and the National Park Bank of New York City, the consequent release large amounts collateral held by these two banks as security, yesterday Judge liquidator the State Bank. Judge Tilden also announced reductions made secured posits, from amountmore than $50,000. statement given out yesterday for simultaneous publication both Orlando newspapers Sunday morning, the liquidator closed that interest $7,000. due November the $200,000 mortgage the State Bank building, been promptly. This mortgage, added, the "only encumbrance against building, which owned by the bank, and is among the assets to be realized upon for the benefit of depositors. Asks Cooperation Judge Tilden appealed for cooperation in liquidator' operaby the filing depositors' claims, stating that only about one the depositors have performed this action. Release collateral formerly held as security for the outside loans expected facilitate the liquidation materially. The fact that of accounts against notes" will be possible, "should stimulate payments the trust," according Judge Tilden. The liquidator explained that has been made trust deposits," and that was his aim this with the view liquidating the possible moment.' Text Following the text of Judge Tilden's statement: close business Saturday, November 23rd, all bills payrepresented by loans, from lantic National Bank of Jacksonville and National Park Bank New York had been retired. "These loans August 5th. at which the closed ag. gregated In addition the above amount paid by the liquidator the reductions have been made on secured deposcollateral: City Orlando $25,000.00. Orlando Utilities Commission Church Street receiver's account Orlando Commercial Bank, treasurer's account $2,700.00, Bank of Winter Garden, treasaccount $1,600.00. "The semi-annual amounting due Novemthe mortgage $200,the State Bank building promptly met. This mortgage only encumbrance against the owned by the bank, and is among the assets of to realized upon for the beneof depositors. liquidator would like the further cooperation of the depositors filing their claims. At this time claims filed cover only little over half of the posits in amount and only about one-half of the number of depositors. "Now that the Jacksonville and New York loans are paid and forreassignment collateral will hand later than Monday Tuesday, offsets accounts against notes are available, actual collateral being of the liquidator. This should stimulate payments to the trust. appreciable realization been made on securing trust deposits, and the purpose the liquidator to concentrate this department with the view the earlimoment, thereby givrelief to the many patrons of the department, and eliminating large proportion of the detail and expense to the trust.
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ELLARS CONCLUDES QUIRY INTO AFFAIRS OF FORMER STATE BANK OF AND Co. Testimony to the effect that newal loans carried by the State Bank of Orlando and Trust Company were listed current loans given by State Bank Examiner George White the closing session of the public hearing by County Solicitor Ellars into the leading the of the bank Previously had been testified by other witnesses that the loans made institutions in which rectors the bank interested and which aggregated more than the allowed for such renewal loans over long declared that rately they law and made more than two years which would put them beyond the statute limitation. Fictitious Assets The examiner that found no carried by bank in connection with the Orlando Finance Company the State building He said gages carried the bank building but not listed real although the bank did list other real estate that owned White from the stand took the bank find that the corporate liability passed the legal Later however that the directors wider connection than first known. These borrowing firms. added carried the amount lent to firms in which the directors interested be yond 40 per cent allowed Bonds Are Loans He opinion that purchased bonds constitute that criminal bank accept deposits after known that bank insolvent: and criminal to declare dividend when the bank is known to be solvent directors draw their accounts when they know that the bank insolvent. White read from report made by the bank examiners their regular tour state banks some time prior the closing the lando State Bank The report pointed out that reserve was that there were slow pay loans addition frozen but made point telling that directors realized the condition the bank and hard correct condition showed that drew $100 monthly committee members and explained that all loans passed upon by the loan handling books complimented Some Assessments Paid Liquidator have paid in full. They Bumby Harry and Witt Miller He said that Waters Howe and Massey but that low had made no payment on formerly the State Orlando the liquidator, called the stand and read from photostatic the ledger sheet the State Bank Apopka closed its account July 1929 also showed that North Orlando State Bank closed its account August 1929. when made withdrawal of He gave other testimony rela the bookkeeping. explaining that when loans came to him been made they were sup posed have been passed upon the loan committee Various Loans and secretary of the Orlando Golfwhich brook testified that borrowed December, 1924. and that the note in February, 1928. Dun. vice-president of the Southern Development Company, which capitalized shares of $100 par value. of which Warlow 120 shares, stated from the stand the firm had borrowed from the Bank was of ments period of years first cash January 1926. and the April. 1927 The dated March. 1928. Otey. vice-president of the Orange County Investment pany. of the Orange County Development said that Warlow five the development company He also said that the of $14,000. dated January. 1928. made the Orange County Development ComReview Testimony Solicitor Ellars assisted in the hearing by Herman Mohr The former the questioning (Continued on Page Eleven)
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WORK ON AIRPORT IS NEARING COMPLETION Work the administration building the Mattoon airport which locattown nearing compleThe which small structure. will headquarters for transaction business by ingoing and outgoing aviators BANK AT ORLANDO, FLA., DOORS TO PUBLIC Orlando, lando Bank and Trust Company, deposits failed to open its doors today. CASTLE INN. Castle Inn, which was partially stroyed fire last week. being Bert Cole, the owner. McGranahan charge of the
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JONES HOME IN FLORIDA Was Former Wayne Auditor CENTERVILLE, Ind., July Jones, former Centerville and and bankdied suddenly at his home in Orlando, Fla., early toady, from heart disease. He returned there two days ago from two week's spent Centerville, which was abruptly terminated when he received word the failure of Orlando bank which he president. Mr. Jones was 77 years old. Mr. Jones was born in Centerville. For years operated grain term county. After leaving Mr. Jones where was cashier of bank. Moved to Florida Several years ago Mr. and Mrs. Jones where he became cashier bank which operations few days ago. Later Mr. Jones president the institution. presumed that the shock of the failure the attack heart ailment with which he had been afflicted time. Both Mr. and Mrs. Jones were well known Wayne county and their visit to Censtay they spent lightful time meeting their many friends. No word has yet been received concerning arrangements but body will brought here for burial. Mr. Jones survived by the widow, Forest Jones, Mrs. Paul Lewis, Williamsburg, Ind., and sister, Centerville, who is 90 years old.
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COURT ORDERS TO CASE Comptroller Must Show Cause Why He Should Not Pay Estate Funds to Federal County Clerk TAMPA. July State Comptroller Ernest Amos must cause before Judge Alexander Akerman federal court, should not pay over the federal court the to the amount deposited the funct Orlando Bank Trust pany credit of various bank rupt appears that the Orlando Bank Trust Company depository for bankruptcy funds and the order directing Amos either ment show cause failure do signed July ever, the order filed with until late The Orlando bank closed The order cites reports Ellis, referee bank ruptcy that the bank has and and are the hands Amos. the no liquidator has appointed liquidate the bank. Deposits amounting credited bankrupt tates now the federal by deposit the federal court of government bonds $35,000 par value order directs that Comptroller Amos pay over to the clerk the federal court the sum involved deposit some other designated whereupon the clerk be to turn government bonds. The returnable gives Amos opportunity the fed. should not sell and cred the various bankrupt
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BANKRUPT FUND IN CLOSED BANK BEFORE COURT U. S.Judge Orders Amos to Show Cause for Not Making Payment July 30 State Comptroller Ernest Amos must show cause before Judge Alexander Akerman in federal court why he should not pay clerk the federal court the which leged the the defunet Orlando Bank Trust the credit to various bankrupt estates. appears that the Orlando Bank Trust depository for bankruptcy funds and the order recting Amos payment for failure signed July order filed the until late yesterday. Orlando bank closed The order cites the reports of EdWilliams, and referee asserted that the bank suspended payment and its and the hands Comptroller Amos pears that liquidator has been pointed liquidate the affairs Deposits amounting $33.credited bankrupt before the federal court. deposit clerk the federal States bonds of $35,000 order directs that pay clerk of the federal the sum in deposit nated the clerk will authorized to return The returnable today. Amos show the federal clerk should not sell the bonds apply the the credit of the bankrupt estates.
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CALLED IN ORLANDO BANK FAILURE Must Show Cause for Not Paying $33,187. State Comptroller Ernest Amos must show cause before Judge Alexander Akerman in federal court why he should not pay over to the clerk of the federal court the of $33,187.17, which alleged be the amount deposited in the defunct Orlando Bank and Trust company to the credit of various bankrupt estates. appears that the Orlando Bank and Trust company was depository for bankruptcy funds and the order directing Amos either to make payment or to show cause for failure to do was signed July 22. The order, however, was not filed with the clerk until late yesterday. The Orlando bank closed its doors on July The order cites the reports of Edwin Williams, clerk, and William bankruptcy, who that the bank has payment and and affairs in hands Comptroller Amos. addition, continues the order, appears that no liquidator has been appointed liquidate the affairs the bank. Deposits amounting credited various estates now the court, were secured by deposit with the clerk federal of United the States bonds of order directs that The court's Comptroller Amos pay over the clerk of the federal the sum involved deposit in some other the clerk will be authorized turn the bonds. The order, returnable today, gives Comptroller Amos an opportunity federal show cause clerk not sell the bonds apply the proceeds to the credit. the various bankrupt estates.
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DEPOSITORY NAMED. The First National Bank Trust Orlando, designated by the federal court depository the estates in the Orlando division the United States district This institureplaces the Orlando Bank Trust company, which closed its doors on July