Multiple contemporaneous articles describe a run by small depositors beginning July 3, 1907 that was large and continued for several days; the bank appears to have suspended/closed by July 6, 1907 and receivers were appointed July 8, 1907. Causes: the immediate trigger was vague rumors/misinformation about bank officials (including suicide and alleged shortages), but bank examiner and later reporting cite large loans on poor security and embezzlement/overdrafts discovered. The sequence is: run → suspension/closure → receivership. Bank type inferred as state (no 'National' or 'Trust' in name).
Events (4)
1.July 3, 1907Run
Cause
Rumor Or Misinformation
Cause Details
Vague and intangible reports and wild rumors about former officials (including alleged shortages and the suicide of an official) prompted small depositors to withdraw funds.
Measures
Run was offset by $65,000 in deposits from friendly customers and a $100,000 loan from other city banks; bank paid every depositor who asked for money.
Newspaper Excerpt
A run was made by small depositors on the Exchange Bank today, resulting in the withdrawal of a total of $75,000
Source
newspapers
2.July 6, 1907Suspension
Cause
Bank Specific Adverse Info
Cause Details
Although the immediate trigger was rumors, bank examiner later cited large loans on poor securities and internal losses (embezzlement/overdrafts) as responsible for the suspension/closure.
Newspaper Excerpt
As a result of four days heavy run on the Exchange Bank it is admitted to-night that the institution will not open its doors again.
Source
newspapers
3.July 8, 1907Receivership
Newspaper Excerpt
At a directors' meeting of the Exchange bank plans were made for applying to the superior court ... Dr. T. N. Baker, A. D. Schofield and B. P. O'Neal were appointed, and now have the assets and the banking business of the institution in hand.
Source
newspapers
4.December 31, 1908Other
Newspaper Excerpt
Another dividend of ten per cent. will be paid the depositors of the Exchange Bank which failed July 6, 1907 ... total of seventy per cent. which the receivers have paid since they took charge a year ago.
Source
newspapers
Newspaper Articles (20)
1.July 4, 1907The Montgomery AdvertiserMontgomery, AL
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RUN ON MACON BANK. Every Depositor Paid and Crisis Is Passed. Macon, Ga., July 3.-A run was made by small depositors on the Exchange Bank today, resulting in the withdrawal of a total of $75,000, which was more than offset by the day's deposits of $65,000 made by friendly depositors and the loan of $100,000 by other banks of the city to meet the emergency. The run developed from vague and intangible reports prevailing for several days past, which reached a head yesterday in the withdrawal of their deposits by a small number of excited depositors. Every depositor who asked for his money was paid. The run was soon checked.
2.July 4, 1907The Times DispatchRichmond, VA
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MADE RUN ON MACON BANK Deposits, However, Offset Withdrawals, and Institution Still Safe. MACON, GA., July 8.-A run was made on the Exchange Bank to-day resulting in the withdrawal of a total of $75,000, which was more than offset by deposits of $65,000 made by friendly depositors and the loan of $100,000 by other banks of the city to meet the emergency. The run developed from vague reports prevailing for several days past, and it had been anticipated and prepared for. Every depositor who asked for his money was paid, and the run was soon checked.
3.July 4, 1907The Pensacola JournalPensacola, FL
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RUN UPON A MACON BANK Begun by Indefinite Talk and Stopped by Cash When Demanded. I By Associated Press. Macon, Ga., July 3.-Frightened by intangible rumors, small depositors today withdrew seventy-five thousand dollars from the Exchange Bank, but this amount was offset by deposits of sixty thousand and a loan of a hundred thousand dollars by other banks of the city. The run was soon checked.
4.July 4, 1907The Brunswick NewsBrunswick, GA
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A BIG A RUN UNI MACON BANK YESTERDAY ( SMALL DEPOSITORS HEARD WILD RUMORS AND RUSHED FOR THEIR MONEY, DRAWING OUT SIXTY THOUSAND, BUT THE BANK PROVED TO BE IN A GOOD CONDITION. Macon, July 3.-There was a big run on the Exchange Bank of Macon today and for awhile the scene around the bank was a lively one, depositors making a mad rush to draw their money. The rush started the minute the bank opened its doors this morning and kept up for three or four hours, but the institution proved to be solid and paid cevry depositor who came for his money. Most of the frightened people were the small depositors and they drew out about $60,000. Large depositors of the bank did not touch their money, but instead made deposits while the rush was in progress. The big rush on this well known banking house was caused by wild rumors which started last night and continued this morning before the bank opened. \ One of them was to the effect that Vice Presdent and Cashier Corbin, who recently suicided, was short, another that no dividend had been declared, and various other rumors of the kind were afloat, which caused the small depositors to make a mad rush for their money. President Cabaniss stated tonight that every depositor who called today was paid promptly and that his bank is not in a weak condition, but more than able to pay every depositor. The Exchange Bank is one of the best known and largest banking hous. es in Macon and has always been in a fiourishing condition.
5.July 4, 1907The Birmingham Age-HeraldBirmingham, AL
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MACON BANK SOLID AFTER RUN IS OVER $75,000 Drawn Out by Depositors On Intangible Rumors-Friendly Customers and Banks Help Out. Macon, Ga., July 3.-A run was made by small depositors on the Exchange bank today, resulting in the withdrawal of a total of $75,000, which wa smore than offset by the day's deposits of $65,000, made by friendly depositors, and the loan of $100,000 by other banks of the city to meet the emergency. The run developed from vague and intangible reports prevailing for several days past, which reached a head yesterday in the withdrawal of their deposits by a small number of excited depositors. Every depositor. who asked for his money was paid. The run was soon checked
6.July 7, 1907The SunNew York, NY
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RUN MAY CLOSE MACON BANK. Old Financial Institution of Georgia In Trouble Through Many Rumors. MACON, Ga., July G-As a result of four days heavy run on the Exchange Bank it is admitted to-night that the institution will not open its doors again. Manager Oscar Dooley of the Macon Clearing House Association said to-night that he believed that the bank would not attempt to do business again owing to the heavy drain caused by the run which began on last ednesday and continued up to the very close of banking hours to-day. President Cabanis of the bank would not make a statement as to what the bank would do on Monday. He said he had not had time to determine what course would be necessary. It is said that the bank settled with the clearing house this afternoon. The run on the bank. which is one of the oldest and largest of Macon's financial institutions. is due to rumors affecting former officials of the bank. These rumors have been current for some time and finally caused such alarm among depositors that a run was begun on Wednesday. The rumor that caused the most injury was to the effect that an official who was removed some time ago was short $92,000. The recent suicide of Mr. Corbin, who was connected with the bank, also added to the uneasiness of the depositors.
7.July 9, 1907Americus Times-RecorderAmericus, GA
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A RECEIVER FOR EXCHANGE BANK Continued Run Has Caused its Suspension. 0 Macon, Ga., July 8.-At a directors' meeting of the Exchange bank plans were made for applying to the superior court of Bibb county for a receivership for the institution, and counsel immediately sought out Judge U. V. Whipple, of Cordele. Dr. T. N. Baker, A. D. Schofield and B. P. O'Neal were appointed, and now have the assets and the banking business of the institution in hand. Through Counsel nced to Judge A. L. Miller, it IS an the public that the assets of the b.nk are ample to pay depositors and credìtors in full and leave a surplus for distribution among the stockholders.
8.July 10, 1907Americus Times-RecorderAmericus, GA
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STATE HAD FUNDS IN THE BANK. But Protected Therein By Ample Bond. Atlanta, Ga. July 9.-It was stated by Bank Examiner Park that the state had a deposit of $5,289 in the Exchange Bank of Macon, which has closed its doors. The deposit is well protected by a bond of $100,000 and the state will not lose by the suspension. Speaking of the suspension of the Exchange bank, Bank Examiner Park said that he had called the attention of the directors of the institution to a number of outstanding loans when the report of the bank was made. "Large loans upon poor securities appear to have been responsible for the suspension of this bank," said Mr. Park.
9.July 12, 1907The SunNew York, NY
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SENATOR BACON LOSES FORTUNE. Failure of Macon Bank Takes About All He Had Saved. MACON, Ga., July 11.-About half of United States Senator Bacon's small fortune was swept away by the failure of the Exchange Bank last week. The Senator was worth about $75,000. half of which was represented by Exchange Bank stock. This stock is not only worthless but it is said the Senator and other stockholders will be assessed heavily to pay depositors. It is feared that when the affairs of the bank are wound up Senator Bacon's fortune will be entirely gone. Expert accountants are working on the bank's books. Former Cashier Orr owed the bank $96,000. part of which he has paid. The capital stock and surplus of $650,000 are gone and when the bank closed after a run of four days $300,000 was still due the depositors and there was not a dollar in the vault.
10.July 12, 1907The Washington HeraldWashington, DC
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SENATOR BACON PENNILESS. Macon Bank Failure Heavy Blow to the Stockholders. Macon, Ga., July 11.-About half of United States Senator Bacon's small fortune was swept away by the failure of the Exchange Bank last week. The Senator was worth about $75,000, half of which was represented by Exchange Bank stock. This stock is not only worthless, but It is said the Senator and other stockholders will be assessed heavily to pay depositors, It is feared that when affairs of the bank are wound up Senator Bacon's fortune will be entirely gone. Expert accountants are working on the bank's books, and sensational revelations are looked for. Former Cashier Orr owed the bank $96,000, which he has partly settled. The capital stock and surplus of $650,000 is gone, and when the bank closed, after the run of four days, $300,000 was due depositors, and there was not a dollar in the vaults,
11.May 28, 1908The Butler Weekly TimesButler, MO
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Three (3), and the south half of the northeast quarter of Section Number Three (3) in township Number Thirty eight (38), range Number Thirty-three (33).
Being portions of certain property conveyed to The Exchange Bank of Macon, Georgia by Asher Ayres, Receiver of the Planters Banking Company of Macon, Georgia, by deed recorded in the office of the Recorder of Deeds for Bates County, Missouri, in Book Z Number 1 A for recording deeds, at page 577.
Said real estate will be sold in two parcels, above described as Numbers 1 and 2, and each parcel will be offered first for cash and then on the following terms: One-third cash, one-third in six months, and one third in twelve months, the deferred payments to be secured by purchase-money deed to secure debt on the property purchased, and the highest and best bid obtained on each method of sale will be submitted to the Court for acceptance or rejection.
The successful bidders on each method of sale will be required to deposit ten per cent of the amount of their respective bids as part payment on the purchase price, and the remainder on confirmation, any bidder refusing on confirmation to comply with his bid to forfeit said deposit, but said deposit to be forthwith returned to the bidder if such sale be not confirmed.
Said sale will be held on the 22nd day of June, 1908, during the legal hours of sale.
31-4t
R. J. TAYLOR,
B P. O'NEAL,
C. T. KING,
Receivers.
12.June 13, 1908The Brunswick NewsBrunswick, GA
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HILLYER MADE A GOOD REPORT CALLED ATTENTION TO PROSPER OUS CONDITION OF BANKS IN GEORGIA. Secretary L. P. Hillyer, of the Georgia Bankers' Association, made the following interesting report at the meeting here Thursday: Mr. President and Gentlemen of the Georgia Bankers' Association: It gives me much pleasure to report to you that our association is flourishing in spite of the late depression, and that our membership is larger than ever. The recent group meetings were largely attended and were very enjoyable as well as beneficial. The panic of 1907. the worst in some particulars this country has ever seen, affected our Georgia banks as lightly, perhaps, as the banks of any state in the union. The state treasurer reports only two failures of state banks in Georgia for the year 1907. Thése fail. ures were the Neal Bank of Atlanta and the Exchange Bank of Macon. The Exchange Bank closed its doors some time before the panic, the Neal Bank was the sole weak spot in our 600 odd banks developed by the panic of 1907. In order that an accurate report might be made, I wrote to the comptroller of the currency at Washington, asking him to give the name of the National Banks which failed in Georgia since June 1st, 1907, as well as the full particulars concerning them. He replied as follows: "Washington, June 6th, 1908. Mr. L. P. Hillyer, secretary Georgia Bankers' Association, Macon, Ga. Sir: In reply to your letter of the 3d instant, you are respectfully informed that there have been no failures of National banks in the state of Georgia subsequent to May 15th, 1904. The First National. Bank of Macon suspended payment on that date, and its affairs were finally closed May 12th, 1906, the claims of creditors having been paid in full wth interest. T. P. Kane, Respectfully, Our record is a magnificent one, and none of us can estimate how much of it is due to the educational and moral influence of this association. Our members frequently, without knowing it, acquire valuable knowledge through social contact, and hints suggested at group meetings and annual conventions often enables us to avoid the treacherous pitfalls of banking. The program committee, of which your secretary is a member, has secured speakers for this convention whose addresses will furnish food for thought, and who will, no doubt, suggest important work for our association to accomplish. I beg of you to give them careful attention. and let us make this the greatest convention 'ever held since our organization. L. P. Hillyer, Respectfully, Secretary.
13.December 29, 1908The Montgomery AdvertiserMontgomery, AL
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Pay Another Dividend. Macon, Ga., Dec. 28.-Another dividend of ten per cent. will be paid the depositors of the Exchange Bank which failed July 6, 1907, on Decemberai 31. The total amount to be paid will be $60,000. This dividend will nake a total of seventy per cent. which the receivers have paid since they took charge a year ago.
14.June 2, 1909The Dawson NewsDawson, GA
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# CABANISS PAID OVER $40,000.
Former Banker Has Paid Every Dollar He Owed Defunct Institution.
Receiver B. P. O'Neal of the Exchange Bank of Macon declared as a witness in the trial of former President J. W. Cabaniss of the bank that he had paid every dollar he owed the institution on accounts, notes and cash loans. He stated that Cabaniss had paid in over $40,000 in cash. This statement found a crowded court room greatly surprised.
15.January 12, 1910The Dawson NewsDawson, GA
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# MACON MEN ARE ACQUITTED
BANNON AND WACHTEL TRIED
IN EXCHANGE BANK CASE.
Charged That Overdraft Was Fraud
Plan. C. M. Orr Brought From
Milledgeville to Testify.
MACON, Ga. The trial of Charles
P. Bannon and Alex Wachtel,
charged with embezzling $32,000
from the Exchange Bank, after last-
ing two days was ended here tonight
by the return of a verdict of not
guilty at 11 o'clock.
Bannon and Wachtel were jointly
charged with embezzlement of funds
from the defunct Exchange Bank.
It was charged that Bannon, who was
assistant cashier and bookkeeper of
a portion of the individual ledger
accounts, connived with Wachtel to
overdraw the latter's account to the
extent of approximately $32,000.
In his statement Bannon explained
that he allowed Wachtel to over-
draw, as he did many others, and
that he had no intention of wrong
doing, although he violated the rules
of the bank. The defendants con-
tended they were promised that no
prosecution would result if restitu-
tion were made to the receivers.
They paid back $14,000 of the al-
leged overdraft.
It was the effort of the state to
bring out that the accounts of the
Exchange Bank, particularly the
Wachtel account, had been manipu-
lated and falsified, and that the
Wachtel account had been improp-
erly used and kept by Bannon. The
state endeavored to prove that Ban-
non had made false entries on the
Wachtel and another account, there-
by running up an overdraft of over
$30,000 and at the same time con-
cealing it.
A. J. Haltiwanger and S. C. Coop-
er, expert accountants, testified as
to the alleged false entries and ma-
nipulation of the Wachtel account,
and explained to the jury the meth-
od by which the overdrafts and
shortages were concealed. The ac-
count was shown in a series of books
extending over nearly four years.
The accountants testified that Ban-
non, who kept the accounts from L
to Z, would give Wachtel false credit
on the book, frequently doing this
by prefixing, for instance, a "1" to
an actual deposit of $200. The cred-
it was thus made $1,200. It was
shown that a check drawn by Wach-
tel usually followed an entry of this
character. The entries several times
ran as high as $2,000 and as small
as $7.80, according to the witnesses.
This verdict brings to an end the
prosecution of cases growing out of
the failure of the Exchange Bank.
Clifford M. Orr, the cashier, was con-
victed of embezzlement, and is now
serving a sentence of seven years.
J. W. Cabaniss, president, was found
guilty of declaring false dividends,
and his case is now pending before
the supreme court.
Orr was brought from Milledge-
ville to appear as a witness for the
state, and Cabaniss was also pres-
ent in the same capacity. Orr was
secluded in the solicitor's office all
of yesterday, no one but officials of
the court and attorneys being al-
lowed to see him.
16.September 14, 1910The Dawson NewsDawson, GA
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# URGE PARDON FOR CLIFF ORR
Governor Brown May Pass Upon Petition of the Ex-Cashier Tuesday Afternoon.
Tuesday morning's Macon Telegraph says that with the view of placing before Governor Brown an application for the pardon of C. M. Orr, the convicted cashier of the defunct Exchange Bank, now serving sentence, Minter Wimberly, his attorney, and B. P. O'Neal, one of the receivers of the bank, went to Atlanta Monday. The governor, however, was at his farm in Cherokee county Monday, and did not return to Atlanta until night.
The matter was, therefore, not presented to him officially until Tuesday, and it is expected that he will render his decision one way or the other this afternoon.
The movement in behalf of Orr was renewed Saturday afternoon when it became known that J. W. Cabaniss, the president of the Exchange Bank, had been pardoned. Everybody was glad of the pardon of Mr. Cabaniss, and the action of the governor met with universal approval, but just as soon as the people read that Cabaniss had been relieved of the charges against him there were many expressions to the effect that Orr should also be freed.
It was recalled that Orr had been away from the bank for more than six months when it failed, and he had surrendered everything he had to the officers of the institution to make good what he owed.
Some time ago petitions, one of which was circulated in Dawson, were signed by numerous people asking for the pardon of Orr, but the matter was not presented to the governor or the prison commission. The fact of Mr. Cabaniss' pardon, however, put the friends of Mr. Orr to work, and now the sentiment seems to be in favor of his release from the state farm.
It is believed that the request of the receivers and the strong showing which Attorney Minter Wimberly can make will result in the governor pardoning Orr.
17.August 27, 1912Atlanta GeorgianAtlanta, GA
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STOCKHOLDERS SUED FOR $145,000.00 TO PAY DEPOSITORS OF BANK MACON GA., Aug. 27.-Suits aggregating $145,000 have been filed against 156 stockholders of the Exchange bank, which failed in 1907 with a deficit of a half-million dollars. The stockholders are scattered all over Georgia and the United States. Two of the largest stock owners are Senator A. O. Bacon and Representative Charles L. Bartlett. The stockholders are sued by the receivers for $29.60 per share, but are offered a compromise of $20 per share, if paid before October 10. Many have already agreed to avail themselves of this privilege. By this means every depositor will be paid his claim in full, with interest. The deposits alone amounted to more than $1,200,000 at the time the bank failed. The depositors have already been paid 90 per cent in dividends.
18.January 15, 1914Atlanta GeorgianAtlanta, GA
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Article Text
# Stockholders Liable
# For Bank's Deposits
Solvent stockholders of a defunct bank are liable for money owing to the depositors, according to a decision rendered by the Supreme Court of Georgia.
The ruling was in the case of Lamar, Jr., vs. the Exchange Bank of Macon, when the court upheld the action of the receivers in suing solvent stockholders on behalf of the depositors. The decision stated that the stockholders are liable to the amount of capital stock they had subscribed.
19.January 15, 1914Atlanta GeorgianAtlanta, GA
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Article Text
# Stockholders Liable
# For Bank's Deposits
Solvent stockholders of a defunct bank are liable for money owing to the depositors, according to a decision rendered by the Supreme Court of Georgia.
The ruling was in the case of Lamar, Jr., vs. the Exchange Bank of Macon, when the court upheld the action of the receivers in suing solvent stockholders on behalf of the depositors. The decision stated that the stockholders are liable to the amount of capital stock they had subscribed.
20.January 15, 1914Atlanta GeorgianAtlanta, GA
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Article Text
# Stockholders Liable
# For Bank's Deposits
Solvent stockholders of a defunct bank are liable for money owing to the depositors, according to a decision rendered by the Supreme Court of Georgia.
The ruling was in the case of Lamar, Jr., vs. the Exchange Bank of Macon, when the court upheld the action of the receivers in suing solvent stockholders on behalf of the depositors. The decision stated that the stockholders are liable to the amount of capital stock they had subscribed.
