2870. Putnam County Banking Company (Eatonton, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 1, 1902*
Location
Eatonton, Georgia (33.327, -83.388)

Metadata

Model
gpt-5-mini
Short Digest
980b89e1

Response Measures

Full suspension

Other: Directors opted to liquidate the bank; petition for receiver was filed but refused by the court.

Description

The bank experienced heavy and unexpected withdrawals in September 1902 and has gone into liquidation; articles state the bank closed its doors and directors elected to liquidate and oppose appointment of a receiver. A receiver petition was later denied (Nov 1902) and the officers proceeded to wind up affairs. Thus a run precipitated suspension/closure and liquidation. Bank type not explicit in articles.

Events (4)
1. September 1, 1902* Suspension
Cause
Voluntary Liquidation
Cause Details
Bank went into liquidation after heavy withdrawals; directors chose to liquidate and resist appointment of a receiver.
Newspaper Excerpt
The Eatonton Electric Cotton Mill was compelled to shut down immediately after the bank closed its doors.
Source
newspapers
2. September 13, 1902 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy and unexpected withdrawals of several large deposits (many cotton dealers' accounts) drained liquidity and precipitated failure.
Measures
Stockholders and newly elected officers decided to liquidate affairs; cashier asked to act until hearing; directors planned to wind up business rather than accept a receiver.
Newspaper Excerpt
On account of the heavy and unexpected withdrawal of several large deposits within the past few days the Putnam County Banking Company, of Eatonton, has gone into liquidation.
Source
newspapers
3. November 10, 1902 Other
Newspaper Excerpt
a decision has been rendered relieving the restraining order issued against the bank and refusing to appoint a receiver. Under this decision ... the recently elected officers and directors will proceed at once to liquidate the bank's business.
Source
newspapers
4. January 2, 1903 Other
Newspaper Excerpt
Ever since the Eatonton Electric Cotton Mill closed last September as a consequence of the failure of the Putnam County Banking Company ... efforts will fail, and the tangled affairs of the company are destined to go through the mazy and tedious processes of the courts.
Source
newspapers

Newspaper Articles (5)
1. September 15, 1902 Atlanta Semi-Weekly Journal Atlanta, GA
Article from Atlanta Semi-Weekly Journal, September 15, 1902

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Article Text

PUTNAM CO. BANK IS IN FINANCIAL TROUBLES GOES INTO LIQUIDATION, BUT IT WILL PROBABLY PAY ALL OF ITS DEPOSITORS IN FULL. EATONTON, Ga., Sept. 13.-On account of the heavy and unexpected withdrawal of several large deposits within the past few days the Putnam County Banking Company, of Eatonton, has gone into liquidation. The interests of many cotton dealers are carried by this bank, and this, together with large withdrawals of deposits, has caused the bank to go into liquidation. Robert Young was president of the bank and E. M. Brown was the cashier. It is more than probable that a detailed statement of the condition of the institution will be given out to the depositors within the next few days. It is understood that the assets of the bank when the matter is finally settled up will far and away overbalance the amount of liabilities. It is given out that the assets of the banking company are $190,000, of which $150,000 is in cash, bills receivable and real estate and the other $40,000 in stockholders' liabilities, as provided for under the charter, while the liabilities are said to be only $73,000. With good and quick collections of the assets of the bank, the depositors will recelve every cent of their money, and this is being done as quickly as possible. Many believe that the liquidation of the bank might have been averted, but all agree that those most closely connected with t..e business have taken the right steps in the matter.

2. September 26, 1902 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, September 26, 1902

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Article Text

PUTNAM COUNTY BANK. Affairs of the Concern to Be Liquidated. Eatonton, Ga., Sept. 25.-At a meeting of the stockholders of the Putnam County Banking Company the resignations of the old directors and officers came up for consideration and, with the exception of the cashier, were accepted. E. M. Brown, the present incumbent, was requested to act as cashier until the hearing by Judge Foster, on Oct. 7, of the petition for a receiver. It is believed the bank will be able to establish its solvency before the court, and that the appointment of a receiver will be unnecessary. At any rate, it is the purpose of the directors to liquidate the affairs of the bank. If fairly good collections can be made this fall and winter the indebtedness will be paid in full, and the stockholders will lose but little, if any. The directors will set up a plea against the appointment of a receiver on the ground that the condition of the bank does not warrant such a step, and that it will be against the best interest of the creditors and stockholders. The new directors elected are as follows: Thomas G. Lawson, president: Henry R. DeJarnette, O. B. Nisbet, C. D. Athon. H. C. Walker, B. R. Beck and E. M. Brown, cashier.

3. November 3, 1902 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, November 3, 1902

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Article Text

# WANT NO RECEIVER. Stockholders of Putnam Bank File Counter Petition. Eatonton, Nov. 2.-The case against the Putnam County Banking Co., of this place, in which a petition was filed asking for a receiver, docketed to have been heard at Irwinton on Oct. 7, was postponed. It came up for hearing before Judge Fred Foster at this place. His decision is withheld. A strong petition, signed by the directors and a majority of the stockholders was presented to the court, asking that no receiver be appointed, but that this expense be saved by allowing the newly elected officers and directors to wind up the affairs of the bank. The decision of the judge is awaited with a great deal of interest. P. P. Ezell and W. C. Little, under the firm name of The Eatonton Ice and Manufacturing Company, have just closed a contract with the Salem Machine Works, Salem, Va., for the erection and equipment of an ice plant, grist mill and flour mill. The contract for this work is to be completed by Feb. 1, 1903.

4. November 10, 1902 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, November 10, 1902

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Article Text

THE PUTNAM COUNTY BANK, Decision in the Case Rendered by Judge Foster. Eatonton, Ga., Nov. 9.-In the case filed at the last September term of the Superior Court against the Putnam County Banking Company of this place, in which a receiver was prayed for, and which was heard by Judge F. C. Foster in chambers several days ago, a decision has been rendered relieving the restraining order issued against the bank and refusing to appoint a receiver. Under this decision, provided no other complications arise, the recently elected officers and directors will proceed at once to liquidate the bank's business. Those most intimately acquainted with the status of affairs say that if the business is judiciously and economically administered the extent of the loss will be covered by the net holdings of the stockholders. The pressure that will necessarily be brought to bear upon the debtors of the bank scattered all over the county will cause no little hardship among a class of people so illy prepared to bear it. The Eatonton Electric Cotton Mill was compelled to shut down immediately after the bank closed its doors. Whether or not it will begin operations again under the new status of affairs is not known. The Quintette Manufacturing Company, which has been adjudicated bankrupt by the United States Court for the Southern district of the State of Georgia, is another concern affected by the failure of the Putnam County Bank. While the Equitable Loan and Security Company of Atlanta holds a mortgage against the Quintette Mill for $25,000, the bulk of Its indebtedness is to the Putnam County Bank.

5. January 3, 1903 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, January 3, 1903

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Article Text

EATONTON MILL. Efforts to Put the Concern Into Hands of a Receiver. Eatonton, Ga., Jan. 2.-Ever since the Eatonton Electric Cotton Mill closed last September as a consequence of the failure of the Putnam County Banking Company, the officers / and stockholders have labored assiduously to keep the affairs of the mill out of the courts and to reorganize the business. It seems that every effort will fail, and the tangled affairs of the company are destined to go through the mazy and tedious processes of the courts. There are three cases now pending before the United States court, seeking to have a receiver appointed and to throw the mill into bankruptcy. The petition for a permanent receiver was heard to-day in Macon before Judge Alexander Proudfit, referee in bankruptcy for the Southern district of Georgia. The indebtedness of the mill is about $84,000. Besides the above cases against the mill, is one pending before the state courts, seeking the same end. Owing to the amount involved and the prominence of the parties interested, and the probable effect on the business interests of the community, in case the mill is placed in bankruptcy, the matter is watched with intense concern. Capt. A. S. Reid is the temporary receiver.