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BANK FAILS TO OPEN WEST PALM BEACH, Fla., June 18.-The first American Bank and Trust Company and the Citizens Bank failed to open for business today. The affairs of both banks have been placed in the hands of the State banking department. The Citizens Bank, it was announced, closed to protect itself against a "run" which might have followed the closing of the First American Bank
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FLORIDA BANKS - FAIL . Two Institutions Closed by State. By United Press WEST PALM BEACH, Fla., June 18.-The First American Bank and Trust Company and the Citizens Bank, both of West Palm Beach, failed to open today. Notices said the institutions, which withstood runs early in the year, were in the hands of the State banking department "for protection of depositors." The First American Bank and Trust Company is capitalized at $500,000.
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Florida Banks Fail To Open By United Press Leased Wire WEST PALM BEACH, Fla., June 18.-The - First American Bank and Trust Company and the Citizens Bank both of West Palm Beach, failed to open today. Notices said the institutions, which withstood runs early in the year, were in the hands of the state banking department "for protection of depositors. The First American Bank and Trust Company is capitalized at $500,600.
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BANK CASES FORM BIG COURT DOCKET Score of New Suits Filed By Tunnicliff, First American Bank Receiver Bank cases formed the bulk of business in circuit court yesterday. score of new suits being started by W. H. Tunnicliff as receiver for the First,American Bank and Trust company and number of final decrees in favor of A. Gutelius, as receiver of the Farmers Bank and Trust com. pany being signed by Judge Vincent Giblin, acting in the disqualification of Judge E. Chillingworth in the Farmers bank suits. total of $190,000 damages were asked for the First American bank through Bussey, Johnston and Lilienthal. solicitors for the receiver from the following: D. M. Barnett, $2,000: B. D. Cole, $19,000: O. B. Carr M. Brombacher $1,000: W. E. AlbertChris Fagg. $3,000: Grace M. Hall. et C. Comer Inc. $1,000: M. B. Monro $2,000: H. Noyes. $1,000: Kathleen F. Reynolds, Charles S. Rice, $2,000: J. Warren E. Young. $2,000. Mortgage foreclosure suits filed by F. Gutelius, as receiver for the Farmer Bank and Trust company decided against the following in God merry a you! final decrees issued by Judge prize winning South American beauty who is spending her F. B. Inc., S. first Christmas in the United States learning the film business in HollyBrown. Joseph wood. D. J. al., Mason al., Other suits: First Bank of Lake LAKE WORTH QUINTS Mrs. M. G. Littman. Mrs. HanMrs. Mrs. G. TO SEE ACTION TONIGHT dam., $45,000. (McCoy and Finch E. W Mrs. and Bryan and Osteen.) Donald Egbert. Mrs. C. Missouri State Life Insurance com Mrs. G. 8. Moore. and Mrs. L. C. Lake boys and pany Atlantic Bond and Mortquintets of Fort high gage company et mf. Miss Anita entertained Lake Worth to Foskett and Wilcox).
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RECEIVER'S STATEMENT ON FIRST AMERICAN BANK AND TRUST COMPANY'S AFFAIRS the express understanding that the money received from the assets of said bank shall be applied to proportional payments of certificates of deposit issued to said depositors, it being expressly that so received shall be first applied to the payment of said ctrtificates of deposit, and then when said certificates of deposit have been paid. proportional payments on the 70 per cent of deposit set aside will then be made in such amount as the remaining assets of the bank will justify, not exceeding in the aggregate, however, 70 per cent of the deposits as hereinbefore mentioned. dividends on the same to be declared from time to time when funds for that purpose have accumulated to equal five per cent. 5. It understood and agreed that any and all moneys deposited after the reopening of said bank shall not be affected by this agreement. 6. It understood and agreed that in order to facilitate the execution of this contract by the depositors this contract may be executed in several counterparts, each of which when so executed shall be deemed an original, and such counterparts together constitute one and the same instrument. In witness whereof, First-American Bank & Trust Company of West Palm Beach. Florida, has caused this instrument to be signed in its name by one of its officers. and its corporate seal to be affixed, and the said depositors have hereunto set their hands and seals the day year first above written. FIRST AMERICAN BANK & TRUST COMPANY WEST PALM BEACH, FLORIDA COMPARATIVE STATEMENT ASSETS Balance Balance Debit Credit 2-28-29 Loans and Discounts $2,190,549.09 245,587.56 Overdrafts 4,613.29 4,308.86 304.43 Stocks and Bonds 1,547,400.00 627,500.00 919,900.00 Premium on Bonds 893.76 10,259.74 Furniture and Fixtures 28,750.00 538.50 28,211.50 Other Real Estate 78,302.84 78,302.84 Due from Banks 311,489.56 262,392.82 53,372.04 State Treasurer, General Fund 97,079.32 State Treasurer, Trust Fund 32,685.82 32,685.82 Current Trust Account 1,736.89 371.15 1,385.74 Claims and Other Resources *********** 494.15 8,108.75 Cash and Cash Items 151,801.84 135,551.53 16,250.31 Loss in Settlements 2,075.75 Receivership Operating Expenses: Attorney Fees 2,644.65 2,644.65 Court Costs & Other Legal Expenses 197.08 197.08 Salaries Paid 8,880.22 8,880.22 Taxes Paid 50.46 50.16 Insurance Premiums 1,731.33 Real Estate Maintenance 743.71 Light and Water 315.50 315.50 Stationery, Printing and Postage 330.30 330.30 Telephone and Telegraph 428.33 428.33 Miscellaneous 192.65 $4,016,845.86 $3,272,707.97 LIABILITIES Capital Stock 500,000.00 $ $ 500,000.00 Surplus 100,000.00 Stock assessment Collected $3,710.49 23,710.49 Undivided Profits $0,368.39 21,211.21 Receivership Earnings: Interest and Discount Collected 11,589.67 11,589.67 Trust Earnings 363.69 363.69 Interest on Bonds 13,274.99 13,274.99 Rents Collected 8,837.93 8,337.93 Recoveries 8,002.75 4,974.80 Individual Deposits 1,678,275.72 8.00 1,047,252.33 Savings Deposits 259,092.57 47,180.45 213,893.80 Certificates of Deposit 1,059,701.61 51,000.00 1,008,701.61 Trust Deposits 248,988.38 3,636.73 409.69 245,756.34 Current Trust Deposits 371.15 1,756.89 1,385.74 Cashier's Checks 68,726.64 52,107.27 16,619.37 Certified Checks 576.90 3,957.98 Drafts Outstanding 67,162.67 18,533.84 48,628.83 Insurance Adjustment Account 5,609.42 8,658.61 3,049.19 $4,016,845.86 $1,452,812.04 $1,452,812.04 $3,272,707.97 RECAPITULATION Receivership Receivership Commission Puts Expenses Earnings Attorney Fees $ 2,644.65 Seal of Approval Court Costs and Other Legal Expenses 197.08 Salaries Paid 8,880.22 On Office Seekers Taxes Paid 50.46 Insurance Premiums 1,731.33 Persistent rumors of a second Real Estate Maintenance 743.71 ********* Light and Water 315.50 white primary were scotched at WedStationery Printing and Postage 330.30 nesday's session of the city com428.33 mission at City Hall when borough Telephone and Telegraph committeemen sent in their official Miscellaneous 192.65 $11,589.67 reports which were ratified by the Interest and Discount Collected Trust Earnings 363.69 The petitions from each of the Interest Bonds three boroughs asked that the nomiRents Collected 4,974.80 nees in the caucus in each borough, Recoveries be placed on official city ballot. In $15,514.23 $38,541.08 each case, after City Clerk Duggan had read the report, motion was Receivership Earnings for the Period 6-18-28 23,026.85 made and seconded without disto 2-28-29 senting vote. $38,541.08 The names which will appear in $38,541.08 the ballots for the April elections,
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OPPOSITION MET HEARING FIRST Postponement Results From Pettibone's Objections to Reopening Plans Instead of meeting smooth sailing their efforts reopen twicedefunct First American Bank Trust company West Palm Beach, New Orleans financial interests tempting the financial resurrection, and Comptroller Ernest Amos opposition the The the hearing until August 26, when attorneys the New interand the comptroller must file by Frank local attorney. against order allowbank opposed the reopening that the clients behalf appearing, and not the freeztendered the defunct bank, will paid 100 their claims upon The hearing was the first in the state under recently enacted banking law which extended new unusual the comptroller the reopening closed banks, and general interest throughout Florida. Attorney Pettibone's contentions behalf of his clients also are unusual interest, that favorable that depositors all defunct banks refused freezing agreements entitled receive payment full In the local bank, agree. ments will only per the Attorneys (Continued on Page Five)
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BANK RECEIVER AFTER TESTIMONY EXCLUSION First American Litigation 19 Entering Local Court In Receiver's Action Exceptions to and motion to strike certain portions of testimony in Special Examiner Alice M. Hayden's report on petition of A1 Yaffey and wife, Irene Yaffey, to establish their claim of approximately $20,000 against the First American Bank & Trust Company in the preferential class was made Tuesday by Receiver W. H. Tunnicliffe through his attorneys, Bussey, Johnston & Lilienthal. On June 15, 1928, three days before the bank closed for the second time, S. D. Morris, of Mrs. Yaffey, purchased draft for $13,160, drawn on the National Park Bank of New York, N. Y., payable to Irene Yaffey, according to the testimony. Again, on Saturday, June 16, Mr. Morris testified he went to the bank few minutes before noon, when the bank closed for the last time and purchased cashier's check amounting to $7,350, made payable to the Morris Investment Company. The bank's doors closed for the last time before he emerged from the institution with the check, Mr. Morris testified. The petitioners base their claim on the belief that the bank officials knew of the insolvent condition of the bank at the time they accepted the petitioners' money.
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DEMURRER IS FILED IN BANK CLAIM CASE Demurrer to petition of three surety companies seeking to have established as prior preferred claims of approximately $100,000 against the First American Bank & Trust Company was filed in circuit court here Wednesday by W. H. Tunnicliffe, receiver, through Bussey, Johnston & Lilienthal, attorneys for the defunct bank. The companies were surety on sums placed in the bank receivers and trustees of bankrupt estates. They paid the money into the bankrupt court following the closing of the bank and are seeking establishment of their claims in the preferred class. Each of the three companies delivered one bond, the Union Indemnity Company of New Orleans. $70.000; the United States Fidelity & Guaranty Company of Baltimore, $35,000; the Hartford Accident & Indemnity Company of Hartford, $19,000.
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WOMAN SEEKS ACTION ON MONEY DEPOSITED ON DAY BANK CLOSED Suit For Preferred Claim Against Citizens Bank Is Listed By Mrs. Gruber In Circuit Court Monday; $10,000 Sum Involved DETITION for the establishment of a $10,000 preferential claim was filed Monday circuit court against George F. Walz. receiver of the Citizens Bank of West Palm Beach, by L. Leone Gruber and her husband, M. Gruber. The petition was filed through the law firm of Fisher, Van Metre Mrs. Gruber alleges the bank closed its doors and suspended business Saturday, June 16, 1928, and that on that date she deposited $10,000 in her savings with the bank after being assured by officers of the the bank was not in a safe, sound bank she could safely deposit her and solvent condition at the time she money in the institution made her deposit and that the of. Mr. Gruber and Mrs. Gruber allege ficers with exercise of reasonable diligence their conduct of the AMERICAN PUBLISHERS bank should have known was not in solvent condition. They allege TO DISCUSS PRICES they have been informed that the to. tal disbursements of the bank after New York. Dec. emer- the making of the deposit until gency convention of the American closed that day did not deplete the Newspaper Publishers Association deposit and that at all times subsewill open Monday at the quently the bank or receiver has had Hotel Pennsylvania to discuss the on hand funds in excess of $10,000. print price The receiver has rejected petiPremiers of Ontario and Quebec tion to have the claim placed in the have urged an increase in price by class. it was set forth, Canadian mills and certain of the but has admitted general one mills have an of Mrs. Gruber alleges her claim is on $5 per ton for next year. bringing parity with all other prefer:ed the $60. claims against the price to The First American Bank & Trust The ancient Greek philosophers Company closed for the second time held that the universe was composed at noon Saturday. June 16, 1928, preof the four elements of earth, air. ceding the closing of the Citizens fire and water. Bank.
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RECEIVER ASKED FOR TRUST DEPARTMENT OF FIRST AMERICAN BANK S.D. Morris Files Amended Bill In Circuit Court Making Request Appointment of a receiver of the trust department of the First American Bank & Trust Company was asked Monday in circuit court bill. The receiver would take charge of $200,000 in securities turned over to the state treasurer by the bank before its closing and all uninvested securities pledged to the trust department of the bank for security of trust funds and would administer the affairs of the trust department under the demands in an amended bill filed by S. D. Morris, as trustee, in circuit court Monday The Florida Bank & Trust Company of this city, of the First Bank & Trust Company; J. P. Cochrane, former liquidator of the bank; State Comptroller Ernest Amos and State Treasurer W. V. Knott are defendants in the suit. Morris alleges that on June 19. 1928, following closing of the bank, it had, as trustee, $12,142.79 to the credit of the trust for which he was appointed successor trustee on May 14, 1929. At that time the bank had on hand to the credit of the various trusts total of $248,983.30. but later set-offs were made, leaving net balance of approximately $238,824.89. Before the bank closed it had deposited $200,000 mortgage and four promissory notes secured by the mortgage to the state treasurer to conform with state laws in qualifying for the purpose of conducting trust department, according to the bill. Morris alleges no effort has been made to collect on the notes or the mortgage that the present liquidator is occupying large part of the premises covered by the mort gage and not paying any rent to the state treasurer for the benefit of the trust funds for which mortgage and notes are pledged, nor the state treasurer making any effort to collect, although his duty to do and deposit the income to the credit of the trust funds held by the bank, the bill continues. Morris alleges the liquidator contends that the $200,000 mortgage is not chargeable for payment of any trusts held by the First American as trustee. The petitioner alleges that the bank is not paying any rent on the property in which doing business and that State Treasurer Knott "is without protest permitting this illegal and unlawful of action to be continued. to the great and irreparable damage of the beneficiaries under the various trusts which the said First American Bank & Trust represented as trusThere is ready market for municipal and United States bonds, but on account of the pretended equity which the Florida Bank & Trust Company, as liquidator, and its predecessors, claimed, they have refused to liquidate and convert them to cash, according to Morris. The liquidator has refused to pay the $12,142.79 due his trust, Morris slants. alleges, despite the fact that practically all of the first mortgages are long past due and that he with other beneficiaries of trusts are entitled to have such moneys as are at present available for payment of trust funds, distributed to them in due proportions to which each is entitled. The law firm of Bussey, Johnston & Lilienthal represents Morris.
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Bank Receiver Is Barred From Ordering Levy Tallahassee, June of closed state banks in Florida have right declare the institutions insolvent and levy assessments stockholders, the Florida ruled today. court these be those the clusively, but said carry orders from the The decision was handed down W. receiver the First American Bank Trust company West Beach, Noyes. The court the circuit Palm Beach Noyes, stockholder in the defunct bank.