2698. Fidelity Banking & Trust Company (Atlanta, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
March 26, 1897
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
f647b438

Response Measures

Full suspension

Other: Receiver appointed; bank placed in receivership and later declared failed.

Description

Articles report a small run (late March 1897), immediate appointment of a receiver (James L. Logan) and the institution placed in permanent receivership; by May 26, 1897 the receiver reports insolvency and the bank is effectively failed. Cause of run/suspension is bank-specific mismanagement and worthless loans/collateral. OCR minor errors corrected (e.g., 'bark' -> 'bank').

Events (3)
1. March 26, 1897 Receivership
Newspaper Excerpt
James L. Logan was this morning appointed receiver for the Fidelity Trust and Banking Company...the petition for a receiver stated that the institution owed depositors $15,000 which it could not pay.
Source
newspapers
2. March 26, 1897 Run
Cause
Bank Specific Adverse Info
Cause Details
Reports of gross mismanagement and large amounts ($25,000-$30,000) loaned to insiders; many worthless collaterals and alleged insolvency (owed depositors $15,000).
Newspaper Excerpt
There has been a small run on the bank.
Source
newspapers
3. May 26, 1897 Other
Newspaper Excerpt
The affairs of the Fidelity Banking and Trust Company, which was placed in the hands of a receiver six weeks ago, seem to be getting in a worse state of confusion...the cash on hand did not amount to $3 and the assets in sight lacked considerably of being sufficient to meet the liabilities.
Source
newspapers

Newspaper Articles (5)
1. March 27, 1897 The Morning News Savannah, GA
Article from The Morning News, March 27, 1897

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Article Text

SMALL ATLANTA BANK SHUT. Former Officers Guilty of Gross Mismanagement. Atlanta, Ga., March 26.-James L. Logan was this morning appointed receiver for the Fidelity Trust and Banking Company, a savings institution, which has been in business here for the past five years. The application for the receiver was made late last night before Judge Lumpkin, at his residence, by Sampson Booth and William Snyder, but he refused to interfere on an ex parte showing, and the hearing was heard in open court this morning. No charges of mismanagement are made against the present officers of the barkD. H. Livermore, president, and S. A. Corker, cashier-but the collaterals shown as assets indicate that there was a good deal of looseness in the management prior to the present administration. These papers show that $25,000 or $30,000, directly and indirectly, were loaned to J. R. Collins, the former vice president, Hiram Middlebrooks, the cashier, and-their business associates. It is now alleged that these assets or collaterals are absolutely worthless. Middlebrooks is the young man who figured extensively last summer as a defaulter. He suddenly got out of his position with the bank and then left town. Later he was arrested and brought back and remained some time in jail. The case against him was, however, compromised. Among the assets are several of Middlebrooks' worthless notes. It is alleged that the bank now has on hand less than $100 and that it is absolutely unable to meet the demands of depositors. The apparent assets are stated at $60,000, but, as stated, half of this amount is declared to be utterly worthless, and the value of the balance is questionable. The deposits, amount to $15,000, the depositors being people who had their savings in the institution. President Livermore states that the depositors will probably get their money, but the stockholders will lose all they had in the bank. When he took charge of the bank Mr. Livermore said he was assured that it was in good condition, but he soon discovered that it was simply rotten, and he has been drawing on his own private funds to keep it going up to the present time. Several days ago Cashier Corker tendered his resignation, but it has not yet been acted upon by the directors. All the directors are well known business men. The bank has been unable to pay its rent for several months.

2. March 30, 1897 The Morning News Savannah, GA
Article from The Morning News, March 30, 1897

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IN GEORGIA AND FLORIDA. NEWS OF THE TWO STATES TOLD IN PARAGRAPHS. The Superintendent of the Alabama Midland Railroad Heroically Rescues a Boy From Drowning-An Herb Doctor Found Dead in Whitfield County-Effects of the Freshet Still Seen at Americus-A Big Suit Against the Eagle and Phenix Mill. GEORGIA. The receivership of the Fidelity Banking and Trust Company of Atlanta has been made permanent, with James L. Logan continued in charge. J. A. Crawford of Cartersville is out for the position of collector of internal revenue for the northern district of Georgia, under the McKinley administration. Henry Pitman, a negro, living at Lindale, near Rome, became enraged with his wife Saturday afternoon, while drunk, and shot her, inflicting a dangerous wound in her side. A suit for $32,400 was filed in the United States ofrcuit court at Atlanta Saturday, for H. B. T. Montgomery of Opelika, Ala., who is suing the Eagle and Phenix mills for six promissory notes for $5,000 each. John G. Kelly, an herb doctor, was found dead half a mile from Red Clay, in Whitfield county, Saturday. He was walk. ing, leading his horse, which was hitched to a small wagon, and is supposed to have dropped dead from exertion in going up a hill. Heart disease was the cause. The effects of the recent freshet at Americus are still to be seen. The streets of the city were badly damaged, and at least $2,500 will be required to put them in condition again. The heaviest loss, however, falls upon the farmers, and is incalculable. Lands recently planted were badly washed, and the loss of crops, labor and guano will be enormous. Nine inches of rain fell within thirty-six hours. Several bridges in the county were carried away, thus adding to the heavy cost of the floods. E. B. Parker of Boston, Mass., one of the purchasers of the Armstead Dodson plantation, near Americus, was there a day or two ago looking after his purchase. The plantation contains 5,200 acres, and is one of the most valuable in Georgia. Already, Mr. Parker says, he is beseiged by letters from every part of the northwest, making inquiries about lands in Sumter county, and he thinks that many desirable settlers may be induced to come to Southwest Georgia by a little effort. Mr. Parker and his associates will put out thousands of peach and other fruit trees this spring, having already planted one orchard of 21,000 peach trees. The company may also erect a large cannery on their property at an early date. Bainbridge correspondence Atlanta Constitution? A daring rescue of a drowning boy was witnessed at Bainbridge Saturday by a large crowd of citizens. The hero was C. O. Parker, superintendent of the Alabama Midland railway. The boy was D. A. Russell, son of Judge D. A. Russell of Bainbridge. In a rowboat with a negro, young Russell attempted to cross the overflow, as it bounded under a railroad trestle. When they reached the stream the boat became unmanageable and capsized in raging waters. The negro was fortunate enough to grasp the piling and was driven up to the track, while Russell was attempting to hold to the capsized boat. The force of the current soon dislodged him, but being a good swimmer he managed to keep on top of the water until he reached a pine tree, fifty yards below. The tree being too large for his arms to go around, it required the strength of the drowning man to hold on. While the excited throng was running up and down the track vainly endeavoring to respond to the frantic appeals of the boy, whose strength was fast failing, Superintendent Parker divested his outer garments, lashed a rope to a crosstie and dashed It from the trestle at a point where it would float to the boy. As it struck the water, he leaped into the flood and with the tie reached the boy just in time to rescue him from his perilous position. Giving the rope a turn around a tree, both clung with all strength to the tie, now dancing up and down in the rushing torrent. Finding it impossible to hold longer to the unsteady timber, it was losed from the tree. and with it both shot down the stream at a fearful

3. March 31, 1897 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, March 31, 1897

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Judge Simonton has issued a restraining order against Gov: Russel, of North Carolina, in the railroad case. Gen. William L. Reddy, 0. irginia, one of the last commanders of the Stonewall brigade died in Manchester county, Va, Sunday. Mrs. Margare; J. Preston, the well known writer, died in Baltimore Sunday. A disastrous fire destroyed $200,. 000 worth of property in Portsmouth, Va., Sunday. The British steamer Yanariva, bas arrived at Glasgow with sixteen of the St. Nazaire, who were picked up in an open boat. The Western railroads have begun to cut freight rales. Philadelpbia, March 26 -Three men were blow 0 to atoms and ten others injured by a explosion of nitroglycerine at the Repauno Chemical Works, near this city, to-day. Atlanta, March 26.-James L. Logan was to-day appointed temporary receiver of the Fidelity Bsnking and Trust company of Atlanta. There has been a small run on the bank. and the petition for a receiver stated that the institution owed depositors $15,000 which it could not pay. D. H. Livermore is president of the bank. Its nominal assets are $60,000, but it holds $25,000 of worthless paper. Cape May, N J., March 26.-Joseph Vance, a farmer living near here, who last year raised several samples of rice and cotton which turned out satisfactory, will this season enter more largely on the plan by planting a large amount of ground in the two staples. Owing to the mildness of the climate, due to the peculiar insular position of Cape May, the Southern products, it is. claimed, will prosper here. A big New York firm, it is said, is paying for the experiments.

4. April 2, 1897 Tensas Gazette Saint Joseph, LA
Article from Tensas Gazette, April 2, 1897

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Small Atlenta Bank in Distress. James L. Logan was Friday appointed temporary receiver of the Fidelity Banking and Trust. Company of Atlanta. There has been a small run on the bank and the petition for a receiverstated that the institution owed depositors $15,000 which it could not pay. D. H. Livermore is president of the bank. It nominal assets are $60,000, but it holds $25,000 of worthless paper.

5. May 27, 1897 The Morning News Savannah, GA
Article from The Morning News, May 27, 1897

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Article Text

FAILURE OF THE FIDELITY. OFFICERS OF THE ATLANTA BANK IN A BAD BOX. Small Depositors Clamoring For Their Money and Threatening Prosecution If They Are Not Paid. The Officers Accused of Receiving Deposits After They Knew the InStitution Was Insolvent-The Stockholders of the Concern Sure to Be Assessed to the Full Amount of Their Liability. Atlanta, Ga., May 26.-The affairs of the Fidelity Banking and Trust Company, which was placed in the hands of a receiver six weeks ago, seem to be getting in a worse state of confusion each day. When James Logan took charge as receiver the officers of the bank announced that they would probably make up any shortage in the assets sufficient to pay off the depositors, who had something like $15,000 in the bank, and Ittle apprehension was felt. As Receiver Logan's investigation proceeded, however, the aspect became more gloomy. He found that the cash on hand did not amount to $3 and the assets in sight lacked considerable of being sufficient to meeet the liabilities. The directors, however, protested that things would straighten themselves out all right and that the creditors need feel no alarm about the settlement of their claims It appears, however, that the prospects is not nearly so rosy as was proclaimed at the time of the failure. To make matters worse, the directors and stockholders of the bank are involved in a row. Some of them are willing to put up the necessary money, for which they are liable as holders of stock, in order to pay off the depositors and thus settle the clamor, but others are either not willing to do this or they are not able to raise the necessary money. The stockholders have already been called upon to put up 25 per cent. on their holdings, and the way this money has gone into the hole has caused them many anguishing thoughts. So bad was the wreck of the bank that the stockholders not only lose their stock in toto, but the double liability safeguard will have to be applied to the limit, it appears, before the affairs of the concern are in a condition that will allow the officers who presided at the collapse to feel easy. Yesterday the stockholders were called together in secret meeting for the purpose of going over the situation again. Some of the depositors have employed attorneys and are threatening to go into the criminal courts to make the bankers sweat for their alleged negligence, and the violation of law in receiving deposits when they knew the bank was insolvent. On account of these threatening skies, one faction of the stockholders, it is learned, at yesterday's meeting insisted that all should come up to the rack at once and complete the fund for the payment of the depositors, and thus quiet the troubled waters. This did not meet with success, however, on account of the inability of some of the stockholders to raise the amount for which they were liable. The failure of this meeting to bring about a settlement caused D. H. Livermore, the president of the defunct bank, to leave for New York to-day. It is said that he goes to that city for the purpose of getting his father, who is a financier of prominence in the metropolis, to put up enough ready cash to settle things up. President Livermore, who holds fifty shares of stock, has already done all he could do to settle the trouble of the bank and it is understood that if he is successful in New York he will depend upon his ability to collect from the stockholders who have failed to come up to the rack, or cannot at the present time, to reimburse himself. If he does not succeed it is likely that the attorneys representing the clamorous depositors will apply to the courts without further delay. The grand jury has already taken notice of the situation by serving Receiver Logan with a summons to appear before that body and tell what he knows about the affairs of the bank. This, together with the clamor of the depositors, most of whom are wage earners who placed their savings in the bank, which made a specialty of that branch, put the stockholders and the officers in an exceedingly uncomfortable condition and the public is watching for developments with no little interest.