2683. Bankers' Trust Company (Atlanta, GA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 15, 1926
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
b0fdf930

Response Measures

None

Description

The Bankers' Trust Company of Atlanta was placed in receivership in mid-July 1926 (petition by the Bank of Umatilla). Receivers were designated and grand-jury investigations followed. The receivership/bankruptcy of the Trust company precipitated the suspension/closure of many smaller chain banks; the Trust itself remained under receivership (permanent closure). Articles allege fraudulent misapplication/diversion of funds by the Trust and its president W. D. Manley. Dates taken from mid-July 1926 newspaper reports (petition and receivership reported July 15-17, 1926).

Events (3)
1. July 15, 1926 Other
Newspaper Excerpt
the Bankers' Trust company suspended business early last week; receivers for the Bankers' Trust company ... instructed ... to present records to the grand jury. Bankruptcy proceedings last week brought about the closing of more than 80 small banks in Georgia and Florida, members of a chain for which the Bankers' Trust Company served as fiscal agent.
Source
newspapers
2. July 15, 1926 Receivership
Newspaper Excerpt
the receivership of the Bankers' Trust Company was granted upon the petition of the Bank of Umatilla, Fla., which alleged that the company had obtained $491,500 ... The petition charged that the Bankers' Trust Company and W. D. Manley, its president, were insolvent 'due to fraudulent misapplication and misuse of funds...'
Source
newspapers
3. July 15, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Petition by Bank of Umatilla alleged Bankers' Trust had obtained and misapplied funds ($491,500) and diverted funds from trust purposes; allegations of fraudulent misapplication and misuse of funds by the company and its president W. D. Manley.
Newspaper Excerpt
the receivership of the Bankers' Trust Company was granted upon the petition of the Bank of Umatilla, Fla.
Source
newspapers

Newspaper Articles (12)
1. July 15, 1926 The Evening Journal Wilmington, DE
Article from The Evening Journal, July 15, 1926

Click image to open full size in new tab

Article Text

Failures in Florida and Georgia DurWeek BANKING OFFICIALS ARE NOT ALARMED ATLANTA, Ga., July 15. (United officials day declared there no for alarm the failure small Georgia and Florida banks since the the week. The banks have been quietly closing their doors since Monday when the Bankers' Trust Company, of Manta, thrown into receivership through the action officials of the Bank Umatille Fla., creditor The Atlanta bank, according to Bennett, State of banks. the source of funds the smaller institutions and to their assets the banks were turned over to the State department is no cause for alarm. sound condition Many of the institutions which have closed their doors are solvent and could have meorganized their finances in few days. The Georgia banks are clean sounder and better able their customers than they have been since the also riod of deflation following action against the Trust the failure of Florida banks which Interested, was learned the State department. where The Bank charged its petition for receivership that the sisted had funds and converted them to its own The the wholesale bank failure yesterday. banking heads the closing institutions refused detailed information concerning particular bank declaring busy having investigated and the counts audited.'

2. July 15, 1926 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 15, 1926

Click image to open full size in new tab

Article Text

# 48 CHAIN BANKS (Continued from Page One) G. H. Howard in Fulton Superior court the affairs of the Bankers' Trust Company were turned over to the receivers. The opinion was expressed in financial circles that most of the banks closed were not insolvent, but because of the closing of the Bankers' Trust Company, on which they relied for funds, they were forced to close. Many of the banks of the chain were said to have been able to make other financial arrangements and remained open. All of the banks other than the Georgia State banks, were said to have been members of a chain. Judge Orville Park of Macon, Ga., general counsel for the Georgia Bankers' Association, expressed a similar opinion, explaining that most of the banks which closed today were relying upon the Bankers' Trust Company and when that organization went into a receivership they were forced to close. The receivership of the Bankers' Trust Company was granted upon the petition of the Bank of Umatilla, Fla., which alleged that the company had obtained $491,500 from the Umatilla bank to be placed on investment. This money, the petition said, had been distributed among the Bankers' financing company to finance banks in Florida, Georgia, banks for the Bankers' Trust Company and the Barney Banking Company of Brooks county, Georgia, and a member of the chain. Of the amount, the petition said, $23,000 had been retained by the Bankers' Trust Company for its own purposes. The company paid $70,000 on account on June 14, the petition said, leaving a claim due of $441,500. The petition charged that the Bankers' Trust Company and W. D. Manley, its president, were insolvent "due to fraudulent misapplication and misuse of funds of the petitioners and other institutions, and diversion of funds from trust purposes to personal gain and benefit of the offices of the corporation."

3. July 16, 1926 Greenfield Daily Recorder Greenfield, MA
Article from Greenfield Daily Recorder, July 16, 1926

Click image to open full size in new tab

Article Text

ATLANTA, Ga., July Smith, president of the Atlanta real estate board, and director the Bankers' Trust company for which receivership designated federal district court here yesterday shot himself at his home in Morningside, suburb, early today Mr. Smith was dead when found by servant attracted by shot. The door of Mr. Smith's room was locked and the servant broke it down His daughter, Mrs. Julia Lifsey, was among the first to reach the The load of shot gun entered his abdomen. Belief pressed that he fired the shot with Several letters found beside the body turned over the coronthat inquest probably would be held later in the Smith former member was the realty Smith and Rankin Company. Later he been connected the Sylvan Hills Morningside Development projects. In addition having been director the Bankers Trust company, he also was director of Farmers and Traders Bank Atlanta, which was closed early this The suicide came as climax to the bankruptcy proceedings against the Bankers Trust Company and the closing of 70 state banks, many which members chain 120 Georgia and Florida for which the Bankers Trust Company served financing agent. Today the Georgia State banking department that 13 additional banks have closed their doors Georgia and in Florida since yesterday. The closings brought the total number that have suspendoperations this week to 83 two states. The state banking department tributed their closings bankruptey proceedings of the Bankers Trust Petition for receivership was brought days ago in court here board receivers designated and temporary granted restraining officers of the company from ing in manner status of the banks. The petition was brought by the Bank of Umatilla. Florida.

4. July 17, 1926 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, July 17, 1926

Click image to open full size in new tab

Article Text

LIFE ENDED Atlanta Banker Georgia-Florida Money Crisis Is Climaxed. Seventeen More State Institutions Closed. Checks. Evidence of His Plight, Beside Body. Inquiry Ordered Into Affairs of Concern. Books Are To Be Placed Before Grand Jury. Suspensions Have Had No Ill Effect on General Prosperity of Georgia, Reserve Chief Avers. struction of R. Smith, prominent realtor and banker and once power in Georgia politics, came today as aftermath of the tangled affairs of the Bankers' Trust Company. of he was Director. following bankruptcy proceedings for this corporation and closing of 85 banks Today banking authorities declare that the situation is much improved that many of the closed Institureopen near future Mr Smith was in his bedroom members of his family heard The was and his Mrs Julian and servant were forced to hack It open to gain The body was lying on the side of the bed. with shotgun on the floor Investigators declared he placed the muzzle of the gun to his abdomen and pulled the trigger with his toe On table in Mr. Smith's room mass of business including number canceled checks drawn bank recently It upon police that he had pored these papers attempt straighten his business James R. Smith was for years merchant of operating under the firm name of Smith & where he amassed He achieved prominence when he managed the first campaign of Joseph M. of for Governor of in which Brown expectedly overthrew the Hoke Smith power. Later he took charge of Hoke Smith's campaign for United States again achieving brilliant success. His appearance in tics when he managed the cause of William Schley Howard candidate for the United States Benate SUBURBS ARE DEVELOPED. At that time he retired from activity in the firm of Smith & Higgins and became : Atlanta developer Entering the firm of Ewing & Rankin. he achieved notable success in the development of residential subdivision on Atlanta's He was President of the north Atlanta Real Estate Board and for mer President of the Lions Club Mr. Smith is understood to have been interested heavily in the Farm. era and Traders' Bank. one of those for which receiver recently was ADpointed as result of the difficulties of the Bankers' Trust which served n.a. fiscal agent for great chain of 120 institutions in Georgia and in T State clared the troubles of the Bankers Trust originated in its Florida conOFFICIALS TACKLE CRISIS. The State Banking Department is co-operating with the state banks closed during the week na result of the receivership of the Bankers' Trust Company, and will work with the banks in helping them to reopen as ment made Friday by Mr. Dennett Seventeen other state banks affiliated with the Bankers' Trust Company were taken over by the State Banking Department Developments In Atlanta today in. cluded the Issuance of an order by Judge G. M. Howard. of Fulton Suvestigate affairs of the Bankers' Trust Company, and instructing officials of the State Banking Department and receivers of the organization to have their records ready for presentation the grand jury Tuesday and statement by M 11 Wellborn Gov. CONTINUED ON SECOND PAGE

5. July 17, 1926 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 17, 1926

Click image to open full size in new tab

Article Text

# Director Involved # Atlanta Trust Co. # Commits Suicide Atlanta, Ga., July 16.-(AP)-J. T. Smith, president of the Atlanta Real Estate Board and a director of the Banker's Trust Company for which a receivership was designated in Federal district court here yesterday shot himself at his home in Morningside, a suburb, early today. Mr. Smith was dead when found. The body was found by a servant, attracted by a shot. The door of Mr. Smith's room was locked and the servant broke it down with an axe. His daughter, Mrs. Julia Lifsey, was among the first to reach the body. The entire lead of a shotgun had entered his abdomen. Belief was expressed that he fired the shot with his toe. Several letters found beside the body was turned over to the coroner, who announced that an inquest probably would be held later in the day. Mr. Smith was a former member of the realty firm of J. R. Smith and W. S. Rankin Company. Later he had been connected with the Sylvan Hills and Morningside development projects. In addition to having been a director of the Bankers' Trust Co., he also was a director of the Farmers' and Traders' Bank of Atlanta, which was closed early this week. The suicide came as a climax to the bankruptcy proceedings against the Bankers' Trust Company and the closing of seventy state banks, many of which were members of a chain of 120 in Georgia and Florida for which the Bankers' Trust Company served as financing agent. Today the Georgia State Banking department announced that 13 additional banks have closed their doors in Georgia and one in Florida since yesterday. The closing brought the total number that have suspended operations this week to 83 in the two states.

6. July 19, 1926 Birmingham Post-Herald Birmingham, AL
Article from Birmingham Post-Herald, July 19, 1926

Click image to open full size in new tab

Article Text

GRAND JURY WILL PROBE BANK CASES Solicitor General Of Atlanta District To Direct Quiz RECORDS WILL GO TO INQUIRY BODY More Than 80 Small In- stitutions Are Involved In Action AFFAIR IS MARKED BY SMITH SUICIDE Bankers' Trust Company Will Be Object Of First Move By Affected State By Associated Press) ATLANTA, July With two-day respite from bank closings, interest today centered in the grand jury investigation opening Tuesday into affairs Bankers' Trust company, whose bankruptcy proceedings last week brought about the closing of more than small banks in Georgia Florida, members of chain for the company served as fiscal agent. Receivers for the Bankers' Trust company and officials of the state banking department instructed court order issued Friday to present records company to the grand jury. The investigation will be conducted by the solicitor general of the Atlanta district. The Bankers' Trust company suspended business early last petition receivership presented Fla., Umatilla, was Bank of by granted the in superior court restraining Wednestemporary day, officials of issued preventing order from altering in any the company for status of the way the acted as fiscal which the company agent. Banks Suspended of the Coincident came the anbankruptcy proceedings defrom the of activisuspension partment Georgia, virsmall banks ties of the Bankthem members all of company chain. Trust creditors of the Four Atlanta Trust company their petition upon hearing day and, federal for receivership jurisSamuel H. Sibley designated diction of and K. Hugh M. Dorsey former Gov. Fourth National president The brought past and Florida and Friday banking deOfficials of the Georgia troller, Reserve district, banking situaagreed proceedings the company belief many banks should to within and fithe proceedings tragedy Real Estate Trust the who The suicide which rector one attribsuspended worry over financial reported in suspensions were Judge Orville Georgia and of Bankers' the the remaining score most of would be to banks the carry of the The banks which susand prior pended during the the Trust that Florida Amos titutions had Bankers' Trust company chain, closed their He also expressed the belief that passed their into the use when needed.

7. July 19, 1926 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, July 19, 1926

Click image to open full size in new tab

Article Text

seemed to be working pretty well until the Bank of Umatilla called for $490,000 which it had advanced to the Bankers' Trust Company. The trust company could not deliver and the Umatilla bank asked for a receivership. It was granted. The failure of the Atlanta concern immediately frightened the little State banks, for which it had been acting as a central bank, and 120 of them have closed up shop. The Georgia situation disclosed an unsound banking system. It's a case of an irresponsible investment house acting virtually as a reserve bank for a lot of small town concerns. It would be interesting to know in how many States the same thing is going on.

8. July 19, 1926 The Tampa Times Tampa, FL
Article from The Tampa Times, July 19, 1926

Click image to open full size in new tab

Article Text

CLOSED BANKS' GRAND JURY Panel to Peer Into Financing Firm's Dealings. Associated Atlanta, Ga., July of the Bankers' Trust company, whose bankruptcy proceedings last week brought about closing of more than 80 small banks in Geor. gia and Florida, will be presented to the grand jury tomorrow by receivers for the banking institution and officials of the state banking department. investigation be conducted by the solicitor general of the Atlanta district. Granting of petition for receivership by the Bank of Umatilla, Fla., early last week, brought suspension of business by the Bankers' trust company and restraining from the superior court preventing officials of the company from altering in any way the status of the banks for which the company acted as financial agents. With the institution of bankruptey proceedings, came an nouncement the state banking department the suspension of virtually all members of the Bankers' Trust Added Thursday and Friday brought the number Georgia and Florida to more Ernest Amos, of Florida, Wellborn, governor of district and officials the bankdepartment agreed the general banking situation in the They attributed the closings the bankruptcy proceeding the Bankers' Trust company and expressed the belief that many the banks should be able reopen within short time, they Were able plete reorganization and other arrangements. No reported in Saturday, Judge Orville general counsel for the he the had passed. Comptroller Amos, also expressbelief crisis in that state had been passed. He attributed closings to inability of the banks call their serves into use when needed.

9. August 29, 1926 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, August 29, 1926

Click image to open full size in new tab

Article Text

AFFAIRS OF MANLEY UNDER FOUR PROBES Last One Bankruptcy in Personal Business. Private Believes Banker Would Have Recov. ered if Let Alone. ATLANTA, Ga., Aug. 28 legal into the cial affairs of W. D. banker, increased to four Manley, today jury the would that federal grand the closing of the Bankers' Trust pany, of Atlanta, banks in Georgia and Florida. Manley, who was president trust company, fiscal agent for chain of institutions which business at the Atlanta bank's was in hospital his special lunacy following the finding attorneys commission Thursday that Bankruptcy proceedings against Bankers' Trust company, went into federal court testimony that Manley received today $40,000 when year as of the cern was introduced. The be Monday morning hearing and Manley will as witness. Manley indicted in the state charge with the the and Traders of banks Fulton which closed last the string The county grand jury will take again week the inquiry into closing these institutions. The fourth will be resumed Monday, which the bank. also hearing the personal affairs of the indicted Miss Lena Long, formerly Manley's private secretary, was principal witness today bankruptcy in the Bankers Trust company testified in her opinion not foresee the collapse his Manley business did and that if be had been let alone he would have "worked Replying to question how much Manley worth collapse plied of this bank.' Miss before Long cannot be positive. but after visit Florida be told me he worth as much as he had thought His former declared ley $40,000 president of the Bankers' Trust Her mony was chiefly concerned with leged assets of the indicted banker and the Bankers' Trust company

10. September 5, 1926 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, September 5, 1926

Click image to open full size in new tab

Article Text

JURY MADE 'GOAT' Declaring that Bennett has been investiof the closing of the Trust company its affiliated chain banks, Park, counthe Georgia Bankers' asso. attorney state defending the state of banks from lodged by the Fulton county grand jury. The grand jury, in special returned Friday after noon Judge E. demanded removal Mr. Bennett for neglect bank failures. immediately issued denying that there has been any neglect duty in state ment, called upon Governor investigate his Mr. Bennett declared that the grand made after behind closed doors and without his side He the action of the unusual, that the jurors him with neglect duty, failed indictment for misdemeanor, which thorized under the law, he pointed Governor Walker stated Saturday that jury the reply Mr. but not prepared to say what action he Park's Statement Mr. Park's Injustice and efficient public Until the present have been officially the bank ing department. but counsel for Georgia Bankers' association, kept the January 1920. For six have spent practically all of my time in Atlanta been constant touch Bennett and the offihis No scientious, and faithful officials to be found in Georgia banking act went into effect of the prosperous times World Becould be period deflation greatly aggravated by advent the weevil. The conditions confronting perintendent serious. the sound judgment, firmness and business Bennett proved equal task. But for his wise and of the grave delicate responsibility office. many bank now strong faithfully its community gone in defeat. The show that almost that were closed forced count of conditions which arose prior his coming into office and great majority of cases he improve the situation that the depositors and credihad the banks immediately deflation owes debt gratitude which she never To her serv. devoted his every energy has well-nigh sacrificed his life. Criticisms Unfounded with the department, its duties stances recent made the the apparent that the jury that unfounded. body undoubtendeavored faithfully discharge its duties. commended and ments indulg ing in the goat' pass the crash comes, must found. looking the the the sworn the ing of the passed on the called Manley the call money and were primarily sponsible act with the grand body responsibility on him. He The Bankers' Trust financial agent for almost many Florida Georgia, many banks chain banks, number them being na tional All loaded with the Manley paper more did Georgia the Georgia should office, comp troller the banking officials the states, and that not do things flock of in Passed the Buck" the conditions represented grand and Bennett has guilty negiect duty and misconduct the indict him remove The responsibility action theirs. They should not have passed the buck the discussed the banking pointing should editors the act nothing have raised and cry for amendment the impossible failures. The than Paton, eral of the American Bank best, the United the best features the other Alabama With from gives adopted the ample and drastic in its as should perhaps, few minor There are, changes which should be made, but essential it is sufficient all however, Georgia ought trust Trust modern unless regular

11. November 13, 1926 Bristol Herald Courier Bristol, TN
Article from Bristol Herald Courier, November 13, 1926

Click image to open full size in new tab

Article Text

COMPLETES Former Treasurer of the Bankers Trust Co. One Witness Heard COULD NOT EXPLAIN ABOUT HIS INCOME Ha Also Made Loans to Brick Co. Without Manley Knowing It; Adjourn Trial to Mon. ATLANTA, Ga, Nov. 12. The state today completed its effort to prove Manley sane der that he stand trial may indictments charging him with the failure of the Bankers' Trust Company, Atlanta, and the subsequent crash of 83 corporate banks Georgia Attorneys for Mr. Manley enterspecial plea insanity for him Monday Judge Howard had overruled demurrer which asked that the indictment quashed. The of the speplea aside all other issues and the former bank head will not face trial any count unless until sane by the jury. Should he be found Insane will be confined to the state hospital for insane. The state introduced number during the day tified to having known Mr. Manley before and after the bank failures. The majority they thought him Two witnesses summoned the state, however, said they were opinion "there something wrong with Mr. Manley the present Baker Testifies Paul Baker, former treasurer the defunct Bankers Trust Company, called stand late the the fense an opportunity examine him concerning his participation the Manley Baker with Manley in connection with the failure. direct question from Ben Conyers, defense Baker his salary was $8,500 He source income. sir, kindly tell you, then how able deposit your personal count the Farmers Bank during the year 1925?" Mr. Conyers Mr. Baker he couldn plain since he did not recall all the deposits he made during the then check over list and tell me where in any them wrong?" Mr. Conyers asked. Mr. Baker took the list handed him and unable to of the DeBrick Decatur, Conyers asker. Mr. Baker rephed that he had. you not stockholder company? the classics reminiscent Loaned Brick Co. Money "Will you tell comes Fought Death for Weeks that that has become part the Bankers Trust Com$100,000 fur- weeks off pany money and Ten) refusing with iron will (Continued On Page his

12. November 13, 1926 The Knoxville Journal Knoxville, TN
Article from The Knoxville Journal, November 13, 1926

Click image to open full size in new tab

Article Text

ATTEMPT TO PROVE BANKER SANE W. D. Manley On Trial For Bank Failures. ATLANTA, Ga., Nov. 12. The state today completed its effort to prove W. D. Manley sane in order that he may stand trial on 18 indictments charging him with the failure of the Bankers' Trust company, Atlanta, and the subsequent crash of 83 ent banks and Florida. Attorneys Manley entered special plea him Monday, after Judge Howard in superior court had overruled demurrer asking that indic:ments be quashed. The entering the plea set aside all other issues and the former bank head will trial count unless sane by the jury. be found insane will be confined to the state hospital for The state introduced number of witnesses during the day testified to having known Manley before and after the bank failures said they thought him sane at that Two sumby the state said were the wrong with Mr. Manley the present time.