2623. State Bank of Winter Haven (Winter Haven, FL)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 15, 1929
Location: Winter Haven, Florida (28.022, -81.733)

Metadata

Model: gpt-5-mini
Short Digest: 44faa089

Response Measures

None

Description

Multiple contemporaneous articles report that the four banks headed by John L. Fouts, including the State Bank of Winter Haven, closed May 15 and were placed in the hands of state/federal authorities for reorganization or liquidation. The coverage does not explicitly describe a depositor run on the Winter Haven bank itself; closures are described as being handled by state/federal examiners. Therefore this is classified as a suspension by authorities that resulted in permanent closure/liquidation.

Events (1)

1. May 15, 1929 Suspension

Cause: Government Action
Cause Details: Closed and placed in the hands of state and federal banking authorities for reorganization or liquidation after examinations; president later arrested on charges related to improper loans and violations of banking laws.
Newspaper Excerpt: All four of the banks headed by Fouts closed on May 15... were placed in the hands of federal authorities pending reorganization or liquidation.
Source: newspapers

Newspaper Articles (11)

1. July 12, 1929 The Times Trenton, NJ

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FLORIDA PRESENTS BANKING PROBLEMS Three Banks Closed-President Of Four Others Facing Charges JACKSONVILLE, Fla, July While State and Federal officers began reorganization or liquidation for three Florida banks today, the president of four other Central Florida banking stitutions faced charges of violating the State banking 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 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 Barton, the First National Bank of Lakeland, the First National Bank 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 Barton 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 mony when of the institution were not up to legal requirement. The banks he headed closed May 15. The Colonial Bank and Trust Company was capitalized at $100,000. with surplus of $50,000. It had been organized three years, and attributed its closing to steady withdrawals cash during the last four days. J. was president The Volusia County Bank and Trust Company had resources of deposits of capital stock of $200,000; surplus of $100,000, and discounts of $1,724,516.08. The First National Bank of Deland had resources of capital stock of $100,000; surplus of $25,000, and deposits of $1,211,750.47.

2. July 12, 1929 The News Journal Wilmington, DE

Article from The News Journal, July 12, 1929

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3 BANKS CLOSED IN CENTRAL FLORIDA; OFFICIAL ACCUSED Move to Reorganize or Liquidate Institutions; Arrest Made. INFORMATION FILED (By The Associated Press.) JACKSONVILLE Fla., July 12.While State and Federal officials be. gan reorganization or liquidation for three Florida banks today, the president of four other central Florida Lanking institutions faced charges of violation of the State banking laws Two of the banks that closed yesterday were in that city. They were the Volusia County Bank and Trust Company and the First National Bank of De Land. which shut its doors during the morning after a 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 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 resources of the institution were not to legal requirement. The banks he headed closed May 15. Time of arraignment for preliminary hearing was expected to be set in a few days.

3. July 12, 1929 New Britain Herald New Britain, CT

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 (AP) 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 lerday 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 a heavy run precipitated by the closing of the Volusia County bank. Miami Bank Closes The third institution was the CoIonial 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 company was capitalized at $100,000 with a 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 $2.816,188.12; deposits of $1,840,043.19; capital stock of $200,000; surplus of $100,000. and discounts of $1,724,516.08. The First National Bank of De Land had resources of $1,789,372.81; capital stock of $100,000; surplus of $25,000 and deposits of $1,211,750.47.

4. July 12, 1929 Fort Lauderdale News Fort Lauderdale, FL

Article from Fort Lauderdale News, July 12, 1929

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PRESIDENT OF BANK IS FREED John L. Flouts Head Of Four Institutions Arrested In Failures July 12. state and officials began of liquidation for three Florida banks today, the president of four other central Florida faced charges violating the state banklaws. of the banks that closed yesterday were in Deland, the only banks in and among the oldest in Volusia county. They the Volusia County Bank and Trust CHICAGO, July company the First National though little Bennie Welzer's paBank Deland, which its rents, Isaac and Lena Welzer, came doors during after heavy run precipitated by the from Russia Bennie knows about the Volusia county bank. The American divorces, and disapproves third institution was the Colonial them. Trust company Miami. process server came his house John Fouts, made bond $10,000 after his arrest informa- with paper notifying Bennie's tion filed state solicitor Hardin father that Mrs. Welzer had started Peterson Polk county, was presi- suit for Bennie dent director of the bank the did want his not Bartow, the First National Bank parents divorced. First National The child noted that the case was Bank of Auburndale, and the State be called yesterday. yesterday Bank of Winter Haven. skipped school and slipped into COTTON STEADY NEW YORK, July Pretty soon his mother the futures opened steady July, witness He heard her Oct., her husband had beaten her threatened her with

5. July 12, 1929 The Clarksdale Press Register Clarksdale, MS

Article from The Clarksdale Press Register, July 12, 1929

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Florida's Banks are Reorganized or Liquidated; President Faces Charges JACKSONVILLE, Fla., July state and federal officials began reorganization or liq. uidation for three Florida banks today, president of four other central Florida banking institutions faced charges of violation of the state banking laws. Two of the banks that closed yesterday in only banks in that city. They were the Colusia County Bank and Trust comand the First National Bank pany of Deland, which shut its doors during the morning after heavy run precipitated by the closing of the Colusia County Bank. third in stitution was the Colonial Bank and Trust Company of Miami. John Fouts, who made bond of $10,000 after his arrest on 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 NationBank of Auburndale, and the State Bank of Winter Haven. Information filed against Fouts in three counts charged "loaned himself $5,000 from the funds of the State Bank of Bartow without consent of the board of directors, that had altered the minutes the board to make the loan appear regular, and that he had taken the money when resources of the insti tution were not to legal require ment. The banks he headed closed May 15. Time of arraignment for prelimin ary hearing expected to be set few days. The Colonial Bank and Trust com pany was capitalized $100,000 with surplus of $50,000. It had

6. July 12, 1929 The Tampa Times Tampa, FL

Article from The Tampa Times, July 12, 1929

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JOHN L. FOUTS, POLK BANKER, IS ARRESTED Lent Bartow Money to Himself, Says Solicitor. By The Associated Jacksonville, July 12. While state and federal officials began the process of reorganization or liquidation for three Florida banks today following closing of the institutions, the president of four other central Florida banking institutions faced charges of "lending" himself $5,000 from one of the banks without consent of the board of directors, and with other violations of the state banking laws. Two of the banks that closed were in DeLand the only banks in that city and among the oldest in Volusia county. 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. Headed Four Banks. The bank official, who made bond of $10,000 after his arrest on an information filed by State Solicitor Hardin Peterson. of Polk county, was John L. Fouts, 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 that he had "loaned" himself $5,000 from the funds of the State Bank of Bartow without consent of the board of rectors, 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. Time of arraignment for preliminary hearing is expected to be set in fe wdays. All four of the banks headed by Fouts closed on May 15. Technical charges against him name violation of state banking laws. Steady Withdrawals. The Colonial Bank and Trust company was capitalized at $100,000 with a surplus of $50,000. 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 $2,818,888.12; deposits of $1,840,048.19; capital stock of $200,000; surplus of $100,000: and discounts The First National Bank of DeLand had resources of $1,789,971.81; capital stock of $100,000; surplus of $25,000, and deposits of D. B. Tuten, president of this institution, said in statement 'that a strong unexpected run had exhausted our cash supply and we had no time in which to secure additional funds We, therefore. were compelled to close our doors for the protection of depositors, believing it for the best interest of everyone." He added that the bank had been placed in the hands of federal authorities pending reorganization or liquidation. Dr. Lincoln Hulley, president of Stetson university, recently became president of the Volusia County bank. According to statement posted in the window of this institution, the bank was closed and placed in the hands of the state banking department "for protection of all depositors by order of the board of directors. Plans have been discussed and further action is contemplated looking to reorganiaztion of the bank with the purpose in view of paying the depositors in full."

7. July 12, 1929 The Daily Record Long Branch, NJ

Article from The Daily Record, July 12, 1929

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Federal Officials Begin Reorgganization For Three Institutions Today. July sociated state and federal officials began reorganization liquidation for three Florida banks today the president of four other central Florida banking institutions faced charges of violation of the state banking laws two of the banks that closed yes. terday were in Deland, the only banks in that city. They were the Volusia County Bank Trust Comand the First National Bank pany of Deland which shut its doors during the morning after heavy by the closing of the precipitated Volusia County Bank third institution was the Colonial Bank Trust Company of Miami John who made bond of $10,000 after his arrest in all information filed by State Hardin Petof Polk 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 from the funds of the State Bank of Bartow without consent of the board of rectors, that altered of the board make the utes and that he had appear the money when resources of taken the institution legal The banks he headed quirement closed May 15.

8. July 12, 1929 New Britain Herald New Britain, CT

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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.

9. July 12, 1929 The Valdosta Daily Times Valdosta, GA

Article from The Valdosta Daily Times, July 12, 1929

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PRESIDENT FOR FRAUD Loaned Himself Five ThousWithout Conand Dollars sent of Directors FLORIDA FAILURE IN A July federal officials While state and of reorganizabegan the process for three Flortion or liquidation following closing ida banks today of the institutions, the president of four other Central Florida banking institutions faced charges of "lending" himself $5,000 from one consent of the banks without the board of directors, and with the state bankother violations of fng laws. banks that closed Two of the only banks were in the oldest of that city and among Volusia county. They were the Volusia County Bank and Trust company and the First National which shut its Bank of Deland, doors during the morning after heavy run precipitated by the closing of the Volusia County Bank. institution was the the third Colonial Bank and Trust company of The bank official. who made bond $10.000 after his arrest on an information filed by State Solicitor Hardin Peterson of Polk county. was John L. Fouts, president and director of the State Bank of Bartow. the First National Bank of Lakeland. the First National Bank of Auberndale, and the State Bank of Winter Haven All four of the banks headed by Fouts closed on May 15. Technical charges against him name violation of state banking laws.

10. July 13, 1929 New Britain Herald New Britain, CT

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.

11. July 18, 1929 Herald and News Randolph, VT

Article from Herald and News, July 18, 1929

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races, which promise to be very excitthis year In consideration of the interest shown during many years in the motion of the development of this summer resort, and also in promoting sports and the regattas held here during the past five years, motion was made by Dr. Hand that Egbert Platt, H. Riford and Thayer be made life members of the society It was carried by unanimous vote. was further voted that each year person should be elected. the one who had done the most during the past to promote the best interof Highgate Springs, and of course this included sports, etc. Mr. Thayer expressed his deep appreciation the honor. though he thought it hardly deserved in his case. Florida Banks in Trouble especially from Ran dolph and vicinity. many have spent winters or sojourned. have property interests in near De Land. Fla., learned with surprise of the failure of the two banks in that city last week. the Volusia County bank and the First National. Law rence Stockwell, of Mr. and Mrs. Stockwell of Randolph. has been cashier of the latter bank. following several years service in the institu tion subordinate capacity His of its directors. news despatch reports the closing these two banks follows: DeLand, July Volusia CounBank and Trust company. oldest financial institution in this county, failed open its doors at o'clock this morning. and an hour later the First National bank closed temporari ly, run on that institution notice. signed by George White state bank examiner. was posted the door the Volusia County Bank and Trust company. announcing that the suspended business and is now in the hands of the state bank ing Another notice on the door stated that the institution the protec tion of all depositors has been closed by order of the board of directors Plans been discussed and fur action contemplated looking of the bank with the purpose in view the deposit in full. concluded the announcement. which not signed. Dr. Lincoln Hulley. president of Stetson university here recently bepresident the Volusia County Bank and Trust company. The First National bank. the only other bank in DeLand. experienced heavy run during the morning business hours and shortly after 10 o'elock the doors were closed. notice posted the door of that institution stated that the unantici oated run has exhausted the supply of ash on hand. necessitating business pending arrival of federal bank B Tuten is president of the First National bank The DeLand failures were preceded the closing of four banking institu tions located in the central part of the which took place May 13th These State Bank of Bartow. First National Bank of Lakeland. First National Bank of Auburn and State Bank of Haven John Fouts president and director these four banks, arrested July 11 Winter Haven. charged with violated the banking 'aws in loaning himself $5,000 of the funds of the Bartow bank without the approval of the board of directors and with altering the minutes of the board make appear that the loan was regular the resources of the bank up to the legal requirement. Last Friday. the day following the DeLand failures. two of the four the neighboring city of Day Beach. the Merchants' Bank and Trust company and the Atlantic Bank and company. closed. Runs made the remaining sanks but they were able to meet the lemands depositors withdrawals The Colonial Bank and Trust bany Miami closed Thursday