2685. Capital City National Bank (Atlanta, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
5490
Charter Number
5490
Start Date
April 1, 1903*
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
12c83531

Response Measures

Full suspension

Other: Bank paid dollar for dollar to depositors and 'retired from business' (closed permanently).

Description

April 1903 embezzlement by G. Hallman Sims triggered heavy depositor activity/anticipated run; bank later suspended and retired from business (paid depositors dollar for dollar). Dates taken from April 1903 reports. No clear reopening; later accounts (1907) state the bank suspended and retired from business.

Events (4)

1. July 9, 1900 Chartered
Source
historical_nic
2. April 1, 1903* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension caused directly by the embezzlement/defalcation of Hallman Sims; bank later paid depositors in full but retired from business.
Newspaper Excerpt
His peculations in 1903 caused the suspension of the Capitol City bank ... Although his defalcations caused the bank to suspend, it paid dollar for dollar to its depositors, and something above par to stockholders, but retired from business as a result of the strain which had been put upon it by the act of Sims.
Source
newspapers
3. April 7, 1903 Run
Cause
Bank Specific Adverse Info
Cause Details
Embezzlement by collector G. Hallman (G. H.) Sims discovered, shortfall of roughly $80,000–$100,000 (reports cite ~$94,000 to $100,000).
Measures
Directors and leading financiers made large deposits/backing; bank opened with large cash on hand and declined outside offered loans (offers of $150,000 and $50,000).
Newspaper Excerpt
When it first became known that G. H. Sims had made away with $94,000 ... it was feared that a terrific run would be made on the bank this morning. ... At 10 o'clock this morning accounts had been closed at the Capital City National bank aggregating $368, while nearly $150,000 had been received in deposits. ... The bank opened at 8 o'clock, and with the opened doors there came a crowd.
Source
newspapers
4. May 16, 1903 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (10)

Article from Americus Times-Recorder, April 7, 1903

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Article Text

BANK COLLECTOR THOUSANDS BEHIND Capitol City Bank of Atlanta Hit Hard. DEPOSITORS SHOW GOOD FAITH. Officials and Patrons Rush to Bank to Prevent Expected Run-Leading Financiers of Atlanta Say Bank Is in Splendid Condition. G. Hallman Sims, a collector for the was arrest Capital Saturday City Bank, charged placed with embez- under zling a large sum from th beank estimated at Between $80,000 and $1000,000. Sims was arrested by United States instance of Cashier Kontz, of the instanc eof President Speer, of the bank, and upon a warrant sworn out before United States Commissioner W. C. Carter. The first suspicion of a shortage of Sims' accounts arose Saturday. As soon as the officials obtained information of crookedness in Sims' books the bank directors were notified. Sims was called in and the conference took place. He was detained at the bank until 11 o'clock Friday night, when Cashier Anton Kontz left the bank in a cab and went to the home of Mark B. Scott, No. 51 West Cain street. He brought Mr. Scott to the bank and placed Sims in his charge as a prisoner. They were at once directed to go to the Piedmont hotel. Sims is reported to have been engaged to a popular young society woman. He gave numerous theater parties and dinners and entertained his friends royally. He occupied a box at the theater Wednesday night and witnessed the Rogers Bros.' performance. It is said the money is all missing and that Sims has spent the entire amount in fast living. At 10 o'clock this morning accounts had been closed at the Capital City National bank aggregating $368, while nearly $150,000 had been received in deposits. It is the most marvelous tribute to the financial standing of a local institution ever known in the history of Atlanta, When it first became known that G. H. Sims had made away with $94,000 of the funds of the Capital City bank, Atlanta was thunderstruck. This news came after banking hours on Saturday, and it was feared that a terrific run would be made on the bank this morning. Instead, the money men of Atlanta and the positors of the bank have come forward unhesitatingly, and by deposits of thousands of dollars have exhibited a magnificent confidence in the bank and its management. Among the largest depositors of the morning were: Frank Inman, $50,000; Hoke Smith, $25,000; J. J. & J. E. Maddox, $12,000; Harry Schlesinger, $5,800; S. H. Phelan $6,000. To these must be added very many more, the details of which could not be ascertained because the receiving tellers could not stop to mention them. The bank opened at 8 o'clock, and with the opened doors there came a crowd. They pushed and elbowed their way into the bank, struggling to obtain places not at the paying teller's window, but at the window of the receiving teller. The crowds increased momentarily. Every now and then some frightened, pale-faced depositor would rush in the door, gasp at the waiting crowds and squeeze himself past the long line of depositors to find the paying teller's window ignored by the throngs. More than $500,000 in bills, gold and silver lay piled up on the long coun. ters in the cage of the paying teller, for the Capital City bank was ready for the run prophesied by the alarm1sts. "The directors of this bank," said a director, "were ready to back it with $1,000,000 and as much more if necessary. Nobody semeed to want any money.


Article from The Savannah Morning News, April 7, 1903

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Article Text

DOWN ON THE FARM SIMS WAS SINKING THE MONEY OF THE BANK. HE HAD A FINE PLACE BUT THE EXPENSES FAR EXCEEDED THE RECEIPTS. Visit to the Farm of the Defaulting Bank Clerk of Atlanta Was Paid by a Representative of the Morning News-What He Found There. No Run on the Capital City Bank. Those Who Intended to Withdraw Were Shamed by Others Depositing. Atlanta, April 6.-There was no run on the Capital City National Bank today as a result of the defalcation of G. Hallman Sims. At the hour of opening the bank had half a million in cash piled up in the paying teller's desk, waiting for any one who wanted to draw out his money. Many who came to draw it out went away ashamed that they came, for at that time there was a long line at the receiving teller's window and money was deposited rapidly in large sums. The total deposits for the day were more than $200,000. Probably less than $2,500 was drawn out. The Atlanta and West Point Railroad offered the bank $150,000, and Sanders, Swann & Co. offered $50,000, but both sums were declined, as they were not needed. The bank officials are highly gratified at the confidence shown in the institution. The representative of the Morning News visited Sims' farm in Greene county to-day, and an inspection of that place shows it is where much of the bank's money went. The farm is at Richland, four miles this side of Greensboro, where Sims was building up a little town, having paid $1,100 for putting in a side track. There are 2,000 acres in the place, extending from the railroad a mile and a half or more down the Oconee river. On the place are 200 head of stock, 200 hogs and pigs, and about twenty horses and mules. Six registered bulls there are valued at nearly $2,000. He was just constructing a telephone line, at a cost of $2,000, from Greenesboro. There are 10,000 cords of wood on the place, waiting to be marketed, and something like 100,000 feet of sawn lumber. Sims had one of the most complete dairy plants in Georgia, making an average of 100 pounds of butter a day, which was marketed in Atlanta. The plant was put in only last summer, at a cost of more than $2,000. The expenses of the place, including constructing, have been something like $2,000 a month, while its income was only one-half that. It is estimated fully $50,000 has been spent on the farm. Sims still refuses to talk.


Article from The Spokane Press, September 21, 1907

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Article Text

BANK WRECKER RELEASED ATLANTA, Ga., Sept. 21.Hallam Sims, the young Atlanta embezzler whose peculations in 1903 caused the suspension of the Capitol City bank, will be released from the U. S. prison tomorrow on account of good behavior. He was under a six-pound sentence. Sims' wealthy coinnections came to the rescue of the bank, which thereby paid dollar for dollar.


Article from The Daily Sentinel, September 21, 1907

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Article Text

HE FINISHES HIS TERM SUNDAY (Sentinel's Special News Service) Atlanta. Ga., Sept. 21-Hallman Sims, the young Atlanta banker and society man who was sentenced to the United States prison in April, 1903, for embezzlement of $100.000 from the Capital City National bank, causing the suspension of that institution, will conclude his term of imprisonment tomorrow. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by the law for good behavior. Slm's arrest and conviction caused a great sensation at the time. as he was one of the leaders in the younger set of Atlanta society and a welcome visitor in every home of the capital. Although his defalcations caused the bank to suspend, it paid dollar for dollar to its depositors, and something above par to stockholders, but retired from business as a result of the strain which had put upon it by the act of Sims.


Article from Americus Times-Recorder, September 21, 1907

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SIMS GETS OUT ON SUNDAY Swiped $100,000 From Capital City Bank. ATLANTA, GA., Sept. 20.-(Special.)-Hallman Sims, the young Atlanta banker and society man who was sentenced to the United States prison in April, 1903, for embezzlement of $100,000 from the Capital City National Bank, causing the suspension of that institution, will conclude his term of imprisonment on Sunday. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by law for good behavior. Sims' arrest and conviction caused a great sensation at the time, as he was one of the leaders in the younger set of Atlanta society and a welcome visitor in every home of the caiptal. Although his defalcations caused the bank to suspend, it paid dollar for dollar to its depositors, and something above par to stockholders, but retired from business as a result of the stain which had been put upon it by the act of Sims.


Article from The Seattle Star, September 21, 1907

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SOCIETY MEN OUT OF JAIL (By United Press.) ATLANTA, Ga., Sept. 21.-Hallman Sims, the young Atlanta banker and society man who was sentericed to the United States prison In April, 1903, for the embezzlement of $100,000 from the Capital City National bank, causing the suspension of that institution, will conclude his term of imprisonment tomorrow. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by law for good behavior. Sims' arrest and conviction caused a great sensation at the time, as he was one of the leaders in the younger set of Atlanta acciety, and a welcome visitor in every home of the capital. Although his defalcations caused the bank to suspend, It paid dollar for dollar to Its depositors, and something above par to Its stockholders, but retired from business as a result of the stain which had been put upon it by the act of Sims.


Article from East Oregonian : E.O, September 21, 1907

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EMBEZZLER FREED. On Account of Good Behavior, From United States Prison. Atlanta, Ga., Sept. 21.-Hallam Sims, the young Atlanta embezzler whose speculations in 1903 caused the suspension of the Capitol City bank, will be released from the United States prison tomorrow on account of good behavior, He was under a six year sentence. Sims traveled in the best of southern society and his connections came to the rescue of the bank which paid back dollar for dollar."


Article from Pine Bluff Daily Graphic, September 22, 1907

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WILL RELEASE BANK EMBEZZLER Atlanta, Ga., Sept. 21.-Hallman Sims, the young Atlanta banker and society man who was sentenced to the United States prison in April, 1903. for embezzlement of $100,000 from the Capital City National Bank, causing the suspension of that institution, will conclude his term of imprisonment tomorrow. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by law for good behavior. Sims' arrest and conviction caused a great sensation at the time, as he was one of the leaders in the younger set of Atlanta society and a welcome visitor in every home of the capital. Although his defalcations caused the bank to suspend, it paid dollar for dollar to its depositors, and something above par to stockholders. but retired from business as a result of the stain which had been put upon it by the act of Sims.


Article from The Daily Ardmoreite, September 22, 1907

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RELEASE BANK EMBEZZLER YOUNG ATLANTA BANKER FINISHES TERM IN PRISON TODAY. WAS A SENSATION. Ardmoreite Special. Atlanta, Ga., Sept. 21.-Hallman Sims, the young Atlanta banker and society man who was sentenced to the United States prison in April, 1903, for embezzlement of $100,000 from the Capital City National bank, causing the suspension of that institution, will conclude his term of imprisonment tomorrow. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by law for good behavior. Sim's arrest and conviction caused a great sensation at the time, as he was one of the leaders in the younger set of Atlanta society and a welcome visitor in every home of the capital. Although his defalcations caused the bank to quespend, it paid dollar for dollar to its depositors, and something above par to stockholders, but retired from business as a result of the strain which had been put upoin it by the act of Sims.


Article from Yorkville Enquirer, September 24, 1907

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Scraps and facts. Atlanta, Ga., Sept. 21: Hallman Sims, the young Atlanta banker and society man who was sentenced to the United States prison in April, 1903, for embezzlement of $100,000 from the Capital City National bank, causing the suspension of that institution, will conclude his term of imprisonment tomorrow. Sims was sentenced to serve six years behind the bars, but his excellent conduct has given him the benefit of the full reduction allowed by law for good behavior. Sims' arrest and conviction caused a great sensation at the time, as he was one of the leaders in the younger set of Atlanta's society and a welcome visitor in every home of the capital. Although his defalcations caused the bank to suspend, it paid dollar for dollar to its depositors, and something above par to stockholders, but retired from business as a result of the stain which had been put upon it by the act of Sims. - New York, Sept. 21: Members of the American Newspaper and Publishers' association have appointed a committee and instructed it to call the attention of President Roosevelt to what the association asserts is the unlawful combination of paper manufacturers to keep up the price of white paper and to demand relief from what they consider an oppressive burden. Herman Ridder, president of the American Newspaper and Publishers' association, in an interview, said: "This is a fight in the common interest. The printing and newspaper industry is the third largest business in the United States. Its future cannot be left to a few manufacturers who hide behind the tariff wall and 'hold it up.'' G. F. Underwood, of the International Paper company. said in an interview, "that the cost of labor and the articles entering into the manufacture of paper have increased and that very few manufacturers are making money under the present conditions, and that new contracts must be made on a higher scale." Boston Transcript: The results of a special investigation prosecuted for six months past by a committee of which Prof. Charles R. Henderson of the University of Chicago, is chairman, are before the public. Its largest generalization sums up the prison practice that it finds followed throughout the country in these words: "Force a man into idleness and give him thieves and degenerater for companions.' Well does the report characterize this as a "satanic recipe for manufacturing crime;" but it goes on to demonstrate that this is the policy literally and systematically followed in this country. Especially are the county jails in the United States "a national shame.' "The very structure of the typical jail is wrong," says the report. "From ocean to ocean one uniform plan has been slavishly copied from bad models -a cell or cave of cells surrounded by a corridor." In most cases this corridor is the only spot where the prisoners are permitted to walk or take exercise, and this must be necessarily in an atmosphere full of taint both physical and moral. As the report points out, "No man builds a pigpen or a hencoop on such a plan, much less a residence: the modern barn or chicken house has an outside court for daily exercise." For several months past the Philadelphia Rapid Transit company has been having a great deal of trouble in trying to satisfy the demands of the people of Philadelphia, and the service given by the transit company has been constantly and harshly criticised and condemned by the press and public of the city. The transit company claimed to be doing the very best it could with the money and facilities at hand. That every dollar of its earnings went into improvements, for fixed charges and extraordinary expenses. That the stockholders got nothing in the shape of dividends. Last week at the annual meeting of the stockholders, President Parsons of the company, gave a detailed statement of receipts, expenses, etc. In part it read like this: "Receipts for year ending June 30, 1907, $18,292,080.27; cost of operation, $18,656,128.80; deficit, $364,048.53; cause of deficit-increased wages, increased cost of supplies and large amounts paid in settlement of accident claims; amount paid for accident claims last year, $1,217,586.85 increase of $326,266.62 over previous year. This increase is due largely to a new enterprise which has grown up, and which has been termed ambulance chasing. The slightest accident is hunted up and reported by runners in the employ of lawyers of doubtful standing, many of whom are briefless except for this class of business, but who are most expert in preparing cases of this character in such a manner that they will meet the requirements of the law and catch the sympathy of the jury. There are many physicians in league with these lawyers, whose testimony is of such a nature as to exaggerate the injury and to show that any trouble the claimant may be suffering from might have been caused by the accident. New York, Sept. 20: Records of the stockholders of the Standard Oil Company of New Jersey. laid bare here today at the hearing of the government's suit for the dissolution of the alleged oil combine, disclosed the fact that John n Rockefeller owns 247,692 shares, or nearly five times as much stock as any other individual shareholder, and that he and his associates who signed the trust agreement in 1882 still control a majority of the Standard Oil stock. Measured by the present market price of $440 a share, the holdings of Mr. Rockefeller in the Standard Oil company have a value of $109,000,000. The stockholders' record