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AFFAIRS AIRED OPEN COURT
Twenty Witnesses Before pear Solicitor pany in the amount of $25,000. There were others, but do not recall them, not wish trust memory. If have brought me here for you the purpose of showing wrong, cannot tell dates figures without something get my information from. There are other notes referred indictments. tell you date of them by referring notes, but not without them. You will find the other notes gether with the two which you your There transaction which amounts $50,000 which appear among the notes. loans made more than ago could not There liability pany Southern Development $3,250 of vember, 1927; Orange County Investment company, Orange County InvestJune 1927: Orlando Golfers' association, February 1928; Orlando CounClub, March 1928; Orlando Country Club, $2,600 March 21. 1928; Southern Development ruary 20, 1928; ment $16,273.55 April 1927; Southern DevelopMarch 1928, company, $34,933.75, October The other notes are more than years They found the basis the first four which the read tacked $50,000 item which does and which brought the Grand Jury regard pany. This obligation as they gave the bank bonds not note of company. than two years ago the taken by the company. recall other obligations company which were the basis of these With of the four notes, Fidelity Title Loan company, Orlando Orange Groves comcompany, and company, the other notes actually given dated than years ago. As far notes original notes, and not newals. talked the matter of the transaction Orlando Finance Judge Tilden the liquidator State Bank Orlando. This transaction volved $22,000. Finance company trustee, and nothing violating any irregularity those bonds by the State Bank. There matter which came my attention while Grand Jury session regarding the was estate Parker Enright which there had no principal payment. estate had had payments either principal terest know. The Enright no dorsement it my clusion that note ried more period years without payment of either principal interest Mr. Enright dead and his has been closed. also dead and his estate being administered in the county judge's court. of the criminal statute of the state accept when the directors of the bank know that the bank solvent. Even though deposits were taken August and closed Monday, August this In regard the that the Orlando Finance pany, this as assets on of the bank. he cannot protected by law three years these notes represent loans which were made more than two years how can they be tected ment or interest would revive Whitfield: Practicing Attorney in Orlando. investigating the affairs State Bank lando since closed on August Judge Tilden as liquidator for bank requested that found anything thought importance that stating give him the benefit might find two paragrahs the report investigation Tallahassee that deal with regard to statute state. One which comptroller the bank examiners after the hearing Tallahassee that Judge and organization with liabilities the through Captain Gray, course the investi- gation, when became necessary the Captain present to report showing these figures. had request investigate Orlando Finance company got the facts we could from the record which someReport made Bank Examiners.' would the assets of the bank. think this policy the bank, and found the to with reference Orlando corporation. There an error to the dates of notes, but my concluthat original Bank building Within day two following time that the two mortgages had been placed the property the Orlando company made conveyance from the State building. not how the State Bank could carry the bond issue they received They carried portion their assets. The State Bank the title the building in the bank building. The property listed in the bank bart the real estate carried, although there some real tate listed aside from this. loan excessive director the bank pany which he directly directly interested all at one time would violation the statutes, but could be sidered civil liability. not here volunteer information, but will answer any questions you ask me within my have told that you was looking the side the case, am going my stand made to that Homer practilaw in with Beckett, We looking for criminal the investigation State closing, and nothing more than the which you might have would just my There thing the statute would be sidered loans certain amount had been crime committed by loaning much money ago would still the could gain from the catalog from the given Judge Tilden, do see that violation the possible that the Orlando company has the in not the think question for the courts decide. assets not the bank are the bond sue the Leedy, of the for six years. The total number sued by the 3,500 company which number holds about shares. treasurer the have the outside more than the know all about much has money original notes are in our files, being duplinote was paid May, when made, ormally loan outright the bank when there was plenty money Mortgaged was to come increasingly cheap Florseemed that that good chance to sell the bonds. bonds not yet due. believe there other obligations than $23,000 $5,000 the bond issue $50,000. Our business business of money securities, buying other securities. great many bond sues to the State Bank Orlando, among them the Orange County bonds some school bonds. The bonds were not put as collatBeardall, connected with the Fidelity Title Loan Secretary since The total shares standing our company 000 stock, owns stock amounting shares, which was purchased follows: December 31, shares, June twenty shares, July 1928, five shares. Mr. Warlow of the Fidelity Title Since 1926 the Fidelity Loan has the State during that time have not cent from the bank. chased the lot which building stands for approximately $60,000 price for them and note 19, 1929, gave the bank held which was balance the purchase price. cut the down from this figure to amount but the balance purchase price. 1923 borrowed small paid thirty borrowed anything in the last years. Massey not have stock in the Fidelity Title and has not had for two company Bumby, Howe, Beardall, Saxson. Miller has ten shares since Leu shares since 1923 and has ten shares since Howard company has connected this for the past company and was treasurer at years, time. familiar with all loans made from the State Bank Orlando June 29, 1929. The on August 1928. This made originally for $25,000 has the State Bank of lando bonds on 10, and paid for the bank that day. Again September sold some bonds the bank which bore interest, which was paid off semiannually. We have sold them municipal Mrs. Lucy Pruitt, assistant secretary, Orlando Orange Groves have $400,000 worth shares stock par value. Warlow owned stock company and fifty shares this He that in August, 1929, and has never purchased out all the notes for the Orange familiar with all them. There note dated 15, 1929, $15,000 loan from the State Bank This renewal Money borrowed April, 1926. This not all time, taken in amounts from $2,000 There were several loans made, which last May, positive the money from the State Bank for three months before the bank closed. Miller owns shares Orlando Orange Groves Ewan shares, over year ago. although does not stock the Orange pany has not during the past The Orlando Orange Groves pany does any money other than what reported by vice-president Southern Corporation. amount shares the company 2400. amount120 shares. There four notes held by the State Bank Orlando March The Development com. made trust the State Bank Orlando property January 1926, security for which from bank. bank this the The money loaned before the shown the January 1926, one 1926. one January 1926, and another April 12, 1927. The last date which April 12, 1927. These are renewal notes. Otey, connected with the Orange pany vice and Orange County Development company vice-president. Orange County Development has 240 shares, which Warlow owns five shares. The same number shares held by the Orange County Investment company, which he also Orange County Development company dated 1928. The Orange County Investment company notes for and dated June 1927 Both these are notes. These companies have not borrowed may have renewed note within the last two Asher, Orlando Golfers AsThis association holds 260 shares stock, Warlow four Payne, two shares, Miller shares, two shares, two made February 1928, and signed Asher, which renewal note. There note dated December clerk, State Bank Orlando and Trust comseen the records of notes made from State Bank of Orlando and Trust comThere note dated June 1929, signed made the State There security but first estate wife. This original signed company 1928, which renewal the note the Fidelity of 1928, $10,500 loaned Title Loan company and made the was also paid May The Orlando Orange pany had dated On April of July 1928, newed. Orlando Orange com$26,000 the State Orlando. payment was made leaving The Corporation was loaned on February 1928, renewal loaned January 1926, 1927. the amount which was On March newal January balance Tunnycliffe, liquidator. were sued by the the State Bank. show that this Records loans and This as The State Bank hesitated to ahead and for loans, large sue loans was turned the for company, which the receipt from the Orlando Finance company. several of these accounts. The way obligated to the State Bank of for except stated on the receipt given the The various items were carried the bank loans and direct obligations the Finance These amount been in the banking busifor fifteen have had years. charge the Seminole bank Sanford, and many others not made any but given the estates and those bank. back of that The only reason the bank closed Some real been the cause. Fail from real estate has the bank close. These frozen There but that the and the good prove bad the bad holders collected about fortyper and directors bank have partly collected Massey and $16,000. am going possible. has made three He paid $500 and Bumby June. paid full. say sue them after the fourth White, charge the bank just closed. Holbrook has paid his
Tilden. liquidator for State Bank shortly closed. the Bank from 19, 1929, ruary transacted Orlando building in which the mortgage bonds and clased Bonds the of had been lando payable held the The title the building the State Bank. the the teen and held by the the Bank. held the Building company. On the notes they by the rectors and the family The owner the State Bank prior 1927 the State company, which Back 1919 the State Bank bought the Judge Cheney, for $50,000. the feet could given ten and little people came the wanted for $2800 The of $460. the San other and the center bank more tie the more takes away much liquid assets. They started with this plan: all their furnish stock and several depositer the $3000, company and the rectors be sponsible for provide home Then order furnish funds start there the bank, Judge in lieu Shortly after they negotiated the and the Building company, order tect bank the The State ecuted the State trustee bond issue the bonds were by purchased money was borrowed by the State Building company State Bank other banks ahead and the complete around 1925 the State Bank, but in hands outside people. the meantime the bank its earnings off on analysis of the buildshowed that getting along good shape taking Then the decided at that time would like had helped build building the bank property bought outstanding against them. There were $70,000 notes the bank this time. There $90,000 of the directors, notes and notes and were paid time time. April they bought the propthe was State Building that had taken the building, and they had out of their earnings August by William Edwards, were president the State Bank Building company Apopka. We liquid building. asset into the time The then conveyed was unsettled. We did property the Orlando know, course, that the State company for the of these Bank Orlando not open making bonds trustee this keys the safety deposit $223,000. second box care the State There in Bank having which they delivturned them we gave the State Building company August which the the William Edwards, president, and the State Bank failed, but would like back to the taken charge of beginning and review the whole not mistaken on Augroom the Mr. Talton said he had received Bank, Mr. called me from the Bank of Orlando said they taking the currency, matter which would affect me and three certificates indebtedof $20,000 and one They trying to interest away the time he Bize Tampa. back, about to him he wanted July, larger he came in here had all certificates of indebtedinvestigation. that he not naturally wanted the bank known whether the bank belonged cash these certificates but they John Smith, not the money belonged Williams and asked Harry spoke up and they could change the $20,000 Lib$223,000 morterty bonds for City Orlando the presence of all those tificates. more the finanThey agreed to exchange the business the bank. Liberty bonds for certificates He that $160,000 of this The State Bank bills reOrlando decided change the and thought direcerty bonds they the the notes money That about the the bank by the July. At day account having elapsed sufficient for the Apopka the State Bank of Orlando. buildOn July learned the condiand the while coming from depositors Mr. Talton. until Daytona Beach and stayed that night. came home the they Sunday morning, and decided and our money out be right, and they argued
The thing had building had received the bonds which bank shape that taxes up figured the value figure bank should be sold today those dollar. be willing to the notes made the $70,000 Building $160,000 bonds the Finance company. The State Building company the building. shouldn't they building on their there bank building State Florida that built in any other way building The not do not have assets liabilities Banking came down weeks audit books. depositors and collect all and the debts. White he had found would irregularity, he found nothing the least that have any those board direcreport from the bank examiner good. understood that all right, some hard luck about that man know deposited $100,other day could interest note. Some understand the difference between the examiner's statement showing my statement Naturally, when bank closes many checks stopped and approximately checks turned back shortly after the bank closed. also owed the First National Bank some money Atlantic National Bank money, and the difference these the amount checks which payment stopped Talton, cashier, State Bank Apopka since of the State Bank the State Bank Orlando July, 1929, account closed July 18, 1929. money taken Apopka and kept in the vault took me from July vault Apopka, after brought Orlando, where the Bank again. deposit money, put safety deposit instead. The the bank, Dr. with me the deposit brought the money to Orlando protection. drew $90,000 July 18. given three by the and sent them to credit, they recognized and were back Then brought them back Orlando exchange indebtedness gave balance exchanged bond trustees for government bonds which also converted cash and the vaults. From July 18 to July kept Apopka kept policemen guarding the bank night. the decided advisable keep under conditions brought back Orlando protect depositors. and decided was safe to leave where then money the State Orlando officers and did not have the right the The money taken out
Orlando the next morning, July the monthat conditions liable develop Monday morning State Bank Orlando closed would able money. certainly needed there would not chance obtaining the bank should had no assurance that our depositors would start bank and wanted prepared. happened to look the clock came the bank at getting the money, and minutes eight. Mr. opened bank Mr. Saxson and Mr. Girardeau there. came from Apopka by myself opened my and opened the box Mr. Sasser opened bank. money safety deposit There have been number statements, anonymous letter about my taking the money manner. had deposit recently dorsed $5000 and anxious help the situation wanted get credit the they could credit with this the note loan. heard rumors and personally interested George examiner. statement State Bank of Orlando Trust company August 1929, cash including cash and due other banks. The State banks. There about this turned liquidator The difference between these amounts which totals $132,000 follows: for $1000 and deposit and shows the bank. That check the bank respondent collection for Until collected real money, entered such. bank naturally payment stopped on such All these checks are returned the deduct this amount from the There substantial amount of those items in this bank, being bank. applied the money that took charge the bank the bank payable to the extent the difference 472.41 applied bank, which secured assume the State Building corporation, independent company, money from the Bank the form notes signed by the directors the State Bank building and later on Orlando Finance duplinotes placed them the in place of the notes. change the lateral these notes while taking charge. the title to the State Bank building the bank building itself and the estate listed assets though there other real estate listed assets. But there listed assets $160,000 in mortthat particular estate. not consider that the Finance company bonds other obligations amounting to $160,000 asset. This report shows that there were notes the Orlando Finance company secured collateral such by note Nat Burman, note Otto and Cora Bohley. bank loans to some company which director was interested directly indirectly such loan was more two years ago renewal two years charge the loan whether fifteen years. had violation during the when had charge the bank. As of report February 19,
