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Fifteen More Georgia State Banks And Four In Florida Close Doors Total Number Listed As Closed In Georgia To 64 Following Bankruptcy Against Bankers' Trust Co., Of Atlan ta; Many Likely To Reopen. additional state banks in Georgia and four state banks in Florida to night are listed as having closed their doors following the bankruptcy proceedings instituted against the Bankers' Trust company of Atlanta. This brought the total number of banks in Georgia to 64. The closings generally among financial circles were attributed to the banqruptcy proceedings against the Bankers' Trust company which was the financing company for a string of 120 banks. The four Flor ida banks were reported to have been members of the system. Many of the banks, the department said. probably would reopen as soon as other financing arrangements could be made. Officials ex pressed the belief that number of them would be found to be in good shape. having turned their affairs over to the department pending reorganization and the completion of other financing plans. The Georgia banks listed today. together with their capitalization and total resources and liabilities as of December 31. 1925. were: Banks Listed Taylor County bank. Butler $15. 000 and Bank of Lyerly. $15,000 and $236,670.77; Bank of Cusseta. $15,000 and 4,236 Rockmart bank $30.000 and $412. 989.04: Bank of Smyrna, and $204 Fairmount bank. $15.000 and $178,297 Macon County bank. Oglethorpe. $15,000 and $149.812.80; Lakewood bank. Atlanta. $50.000 and $184 485 Bank of Rochelle. $25,000 and $192. 58 000 and 06; Cornelia bank Cornelia. $40,000 and $734. 22; Bank of Lula. $15,000 and $14.273.90 Bank of Cassville. $15,000 and $65 453.27: Bank of Williamson. $25 000 and $178,812.11. and the Cornelia bank Demarest. whose financial statement was not available. The four Florida banks reported closed were the Citizens' bank. of Eustis. Bank of Mount Dora. Bank of Tavares and the Bank of Uma. tilla. each of which through notices posted on their doors announced that they were 'closed temporarily for the protection of depositors. Suit Instituted The Bank of Umatilla Tuesday instituted a suit against the Bankers' Trust company. applying for re. ceivership for the company and obtaining temporary injunction to prevent officials of the company from in any manner the status of the chain of banks for which it acted as financing In its suit. the Umatilla bank alleged that the Bankers' Trust company had several hundred thousand dollars from the bank and distributed the money among various banks of Georgia and another hankers financing comnany in Florida. The bank alleged officials of had ad mitted their inability nav, and charged the Bankers' Trust companv with being insolvent Atlanta creditors of the Bankers' Trust company intervened today and the federal court assumed jurisdiction of the case. Judge Samuel Sibley announcing that he would ap- pany Florida creditors resisted federal by endeavoring to show that the company conducted an insurance business. insuring the deposits of member banks, and that was not under federal jurisdiction. The Umatilla bank joined in seeking to foretsall federal interAtlanta creditors charged that the company had committed acts of bankruptcy when it "preferred certain clients over others when the bank was They also filed rceivership granted in super: for Judge Orville Park, of Macon, general counsel the Georgia Bankers' association. testified that the company. being a trust company, was not amenable to the state banking department and could not conduct a banking business with out an amendment to its charter. The trust company served financial agent for 120 banks, Paul Baker. its treasurer, told the court. but did not receive deposits subject to check Forty-one banks closed their doors after the receivership was sought for the Bankers' Trust company Five banks closed on Tuesday and two on Monday. Bennet Talks T. R Bennett director of the state banking department. declared in statement late today that the designation of Governor Dor sey and Mr. Ottley. who is president of the Fourth National bank as rehad "added confidence to the The two were designated as receivers by Judge Sibley after his decision in federal court to assume jurisdiction in the bankruptcy proceedings brought against the Bank ers' Trust company by Atlanta creditors. The statement by Mr. Bennett declared the atmosphere was "clear ing 'While several additional banks closed their doors today. he said. "the number is much less than an ticipated. One bank which closed yesterday wired this morning to disregard the notice. as found that it was able to carry on its business. Another reported as closed advised that had effected a con solidation with neighbor bank and is caring for all of its Several which advised the department that they would not be able continue have assured US today that they would be able to do "The appointment by Judge Sib ley. of the United States court, of former Governor Hugh M. Dorsey and Mr. K. Ottley. of the Fourth National bank, Atlanta, has added confidence to the situation. The appointment of the receivers sures careful and business- like administra of the affairs of the Bankers' Trust company and the preservation and proper application of its assets Practically all of the banks which have suspended in the last few days were connected with the Bankers' Trust company. and the failure of the trust their suspension. When it is known that the trust company affairs are being properly administered. the banks and their customers will have a new feeling security. Nothing Wrong "I repeat what said yesterdav that there is nothing wrong with Georgia and her financial institutions. The present flurry is due entirely to causes originating outside the state and does not indicate any weakness on the part of Georgia banks. But the difficulties the Bankers' Trust company, brought about by conditions in Florida, not bank in Georgia would have closed. "When it was announced that the trust company was no longer in nosition to finance the banks for whom had acted as financial agent. these were immediatly thrown on their own resources. Before they could adjust themselves and make new connections. all sorts of wild rumors were started. and in quite a number of places runs on the banks were started "To prevent the depletion of their assets pending the forming of new connections, it seemed to many banks necessary to suspend active business. As soon as they can readjust is confidently believed that large proportion will reopen. as the reports show that most of the banks which have suspended are solvent and many of them in excellent condition "In a number of cases there was no necessity for the closing of the banks even temporarily The directors simply lost their heads and turned over the banks to the department. In a few days when the present of hysteria has passed they will realize that they acted hastily and without proper consid-
