2758. Citizens' Trust Company (Augusta, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
July 18, 1912
Location
Augusta, Georgia (33.471, -81.975)

Metadata

Model
gpt-5-mini
Short Digest
2e478a61

Response Measures

Full suspension

Description

A two-day run precipitated by persistent rumors of weakness led the bank to close and make an assignment (suspend) July 19, 1912. An assignee/receiver was named and lengthy receivership/litigation followed; the bank did not resume operations. OCR corrected minor spacing/typos (e.g., 'Citizens' Trust Company').

Events (4)
1. July 18, 1912 Run
Cause
Rumor Or Misinformation
Cause Details
Persistent reports and rumors that the institution was weak precipitated heavy withdrawals over two days.
Measures
Bank closed its doors; later made assignment to an assignee/receiver.
Newspaper Excerpt
An unexpected run on the bank was precipitated Thursday and continued until 1 o'clock Friday when the institution closed its doors.
Source
newspapers
2. July 19, 1912 Receivership
Newspaper Excerpt
Assignment was made Friday to Sam H. Myers, attorney, who will liquidate the business. ... A receiver was soon afterwards appointed and the liabilities of the concern were in the neighborhood of $200,000.
Source
newspapers
3. July 19, 1912 Suspension
Cause
Rumor Or Misinformation
Cause Details
Unable to realize quickly on assets when the unexpected run (caused by rumors of weakness) came, the bank suspended operations and made assignment to an attorney to liquidate the business.
Newspaper Excerpt
The Citizens' Trust Company ... suspended shortly after 1 o'clock to-day, following a run of two days, occasioned by persistent reports that the institution was weak.
Source
newspapers
4. March 17, 1913 Other
Newspaper Excerpt
Temporary injunction granted by Judge Emory Speer ... confronted the State Court here today when Judge Henry C. Hammond entered into a hearing to instruct the receiver ... Proceedings in Citizens' Trust Company of Augusta Blocked.
Source
newspapers

Newspaper Articles (10)
1. July 23, 1912 Atlanta Semi-Weekly Journal Atlanta, GA
Article from Atlanta Semi-Weekly Journal, July 23, 1912

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Article Text

BANK AT AUGUSTA SUSPENDS BUSINESS Trust Citizens' Company, However, Will Liquidate All Claims (By Associated Fresh! AUGUSTA, Ga., July 20.-Inability to, realize quickly on assets when an unexpected run came. was given as the cause for the failure Friday of the Citizens' Trust company, by its manager, M. C. Dowling. Assignment was made Friday to Sam H. Myers, attorney, who will liquidate the business. The bank formerly was the Citizens' bank, which was capitalized at $50,000, which later was increased to $100,000. The liabilities are listed at $250,000, with assets aggregating $300,000. It is said all claims will be liquidated dollar for dollar. An unexpected run on the bank was precipitated Thursday and continued unti 1 o'clock Friday when the institution closed its doors. The run is said to have been precipitated by rumors that the bank was weak. The institution was not a member of the local clearing house.

2. July 25, 1912 The Bamberg Herald Bamberg, SC
Article from The Bamberg Herald, July 25, 1912

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Article Text

BANK FAILURE IN AUGUSTA. Citizens' Trust Company Suspends as Result of Run. Augusta, July 19.-The Citizens' Trust Company, formerly the Citizens' Bank, suspended shortly after 1 o'clock to-day, following a run of two days, occasioned by persistent reports that the institution was weak. Assignment was made by the board of directors to-night to Sam H. Myers, attorney, who will liquidate the business. The bank was organized six years ago with a capital of $50,000, which has been increased to $100,000.. The liabilities are $250,000 and the assets more than $300,000. The statement issued late to-night is that inability to realize quickly on assets, when an unexpected run came, was the cause of the suspension. All claims will be liquidated dollar for dollar. The incident did not occasion the slightest uneasiness in any other banking circles in the city.

3. July 25, 1912 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 25, 1912

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Article Text

RECEIVER IS ASKED FOR AUGUSTA BANK BY STOCKHOLDERS AUGUSTA, GA., July 25.-A petition for a receiver to be appointed for the Citizens' Trust Company has been filed with Judge Henry C. Hammond, of the Richmond superior court. The petition also asks that the appointment of Samuel H. Myers as assignee be set aside and that all of the assets of the institution be disbursed to the creditors and depositors under the order of the court. The petition was filed for Martin & Garrett and Mrs. Carrie Heyman, owners of 70 shares of original stock in the Citizens bank. When it was decided to merge the Citizens bank with the Interstate Trust Company of Aiken, S. C., the petitioners refused to go into the Interstate, and asked to sell their stock. It is alleged that the Interstate offered to buy it, and. in fact, contracted to buy it, but never paid for it, and now Martin & Garrett and Mrs. Heyman insist that they are preferred creditors under the law. Their stock amounts to $70,000. the par value of the shares being $100 each,

4. July 25, 1912 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 25, 1912

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Article Text

RECEIVER IS ASKED FOR AUGUSTA BANK BY STOCKHOLDERS AUGUSTA, GA., July 25.-A petition for a receiver to be appointed for the Citizens' Trust Company has been filed with Judge Henry C. Hammond, of the Richmond superior court. The petition also asks that the appointment of Samuel H, Myers as assignee be set aside and that all of the assets of the institution be disbursed to the creditors and depositors under the order of the court. The petition was filed for Martin & Garrett and Mrs. Carrie Heyman, owners of 70 shares of original stock in the Citizens bank. When it was decided to merge the Citizens bank with the Interstate Trust Company of Aiken. S. C., the petitioners refused to go into the Interstate, and asked to sell their stock. It is alleged that the Interstate offered to buy it, and in fact, contracted to buy it, but never paid for it, and now Martin & Garrett and Mrs. Heyman insist that they are preferred creditors under the law. Their stock amounts to $70,000. the par value of the shares being $100 each,

5. March 1, 1913 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, March 1, 1913

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Article Text

SPEER ENJOINS STATE CORT. Proceedings in Citizens' Trust Company of Augusta Blocked. Augusta, Ga., Feb. 25.-A temporary injunction granted by Judge Emory Speer in the United States District Court confronted the State Court here today when Judge Henry C. Hammond entered into a hearing to instruct the receiver appointed by him to disburse the funds collected from the assets of the defunct Ctizens' Trust Company. The order from the United States Court is brought in the Interstate Trust Company case, which originated in Charleston, S. C., and is directed to J. P. Armstrong, receiver of the Citizens' Trust Company. It is returnable before Judge Speer in Savannah, March 17.

6. March 4, 1913 The Dawson News Dawson, GA
Article from The Dawson News, March 4, 1913

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Article Text

SPEER IS SEVERELY SCORED MAJOR BLACK OF AUGUSTA ROASTS FEDERAL JUDGE. Says Order Restraining State Court Is Outrageous, Violates All Courtesies, and Is Disrespectful. AUGUSTA, Ga.-Is a restraining order issued by the United States district court enjoining an officer of a state court of Georgia from further proceeding under the orders to him by the iatter court and stopping progress of litigation, long since active in the state court, proper judicial courtesy, respect of state's rights and within authority of the law? Such a question arose in the Richmond county superior court yesterday morning, was argued at length by learned and eminent counsel in a considerable number, and finally passed upon by the court. The judicial opinion of the superior court, after the question had been freely debated, is: "A soft answer turneth away wrath." In brief that is the court record at the present stage of the clash between the United States court for the Southern district of Georgia and the Richmond county superior court in the matter of the receivership of the defunct Citizens' Trust Company of Augusta. Further development will be recorded on or about the 17th day of March, in the city of Savannah, when the receiver of the Citizens' Trust Company, the officer of the superior court referred to in the arguments before Judge Hammond yesterday morning, is cited to appear before Judge Speer. I Hearing had been set before Judge Hammond yesterday morning at 10 = o'clock in the Citizens' Trust Company case, when it was the purpose to have the court to direct the receiver as to disbursement of so much of the : funds as have been gathered by the receiver for the benefit of the creditors. Judge Speer's order stopped the proceeding. Major J. C. C. Black took serious a exception to the order issued by W Judge Speer saying: C "Why, may it please the court, he d has enjoined this court, he has enla joined you. It is outrageous and h violates all the courtesies and destroys the comity that should exist C between courts and is without sound a a legal authority. b "Let Judge Speer come before this p court; he should have come before 0 this court insteading of ordering this t court to come before him, and not enS la joined this court from proceeding with what it is already engaged ti upon." S

7. April 8, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, April 8, 1913

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Article Text

AUGUSTA BANK SUIT GOES BACK TO STATE COURTS AUGUSTA, GA,, April 8.-Judge Emory Speer in United States Court dissolved a temporary injunction which he granted J. H. Hewlett, receiver for the Interstate Trust Company against J. P. Armstrong, receiver of the Citizens' Trust Company. to prevent Armstrong from disbursing the assets of the Citizens' company. Hewlett failed to show cause why the injunction should be made permanent within the specified five days. The case now goes back to the State courts and Armstrong will disburse the assets when instructed by Judge H, C. Hammond, of the Richmond Superior Court.

8. April 8, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, April 8, 1913

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AUGUSTA BANK SUIT GOES BACK TO STATE COURTS AUGUSTA, GA., April 8.-Judge Emory Speer in United States Court dissolved a temporary injunction which he granted J. H. Hewlett, receiver for the Interstate Trust Company against J. P. Armstrong, receiver of the Citizens' Trust Company. to prevent Armstrong from disbursing the assets of the Citizens' company. Hewlett failed to show cause why the injunction should be made permanent within the specified five days. The case now goes back to the State courts and Armstrong will disburse the assets when instructed by Judge H. C. Hammond, of the Richmond Superior Court.

9. April 8, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, April 8, 1913

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Article Text

AUGUSTA BANK SUIT GOES BACK TO STATE COURTS AUGUSTA, GA., April 8.-Judge Emory Speer in United States Court dissolved a temporary injunction which he granted J. H. Hewlett, receiver for the Interstate Trust Company against J. P. Armstrong, receiver of the Citizens' Trust Company. to prevent Armstrong from disbursing the assets of the Citizens' company. Hewlett failed to show cause why the injunction should be made permanent within the specified five days. The case now goes back to the State courts and Armstrong will disburse the assets when instructed by Judge H. C. Hammond, of the Richmond Superior Court.

10. June 8, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, June 8, 1913

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Article Text

# AUGUSTA BANK # WRECKING CASE # ON TO-MORROW M. C. Dowling, Alleged to Have Caused Smash, Still Defies Ex- tradition in South Carolina. AUGUSTA, June 7.—July 19, the Citizens' Trust Company, of this city, made an assignment after closing its doors. A receiver was soon afterwards appointed and the liabilities of the concern were in the neighborhood of $200,000. During the coming week the receiver, J. P. Armstrong, is expected to make a report to the court, and if priority claims are allowed the depositors will not get anything, while if they are not allowed the depositors will probably get about 20 per cent on the dollar. More working people were caught in the failure of the Citizens' than any other kind. It was a Saturday night bank and the depositors would turn over their week's wages after finishing work. Refuses to Return. M. C. Dowling, vice president of the concern, left a comparatively short time after the failure for Fairfax, S. C. He was later indicted by the Grand Jury and has refused to come back to Georgia. While charged with embezzlement on thirteen counts, he maintains that he will not return because he can not get a fair trial. He is conducting a large hardware business in Fairfax. He can not be tried until he is extradited, and Governor Blease has so far refused to honor requisition papers. D. H. Willard, an insurance stock