Article Text
Fort Smith Bank Suspends. FORT SMITH, Ark., March ..The Southern Bank and Trust company, with a capital of six hundred thousand dollars, failed to open today. It anannounces that it will pay in full.
357. Southern Bank and Trust Company (Fort Smith, AR)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- March 2, 1906
- Location
- Fort Smith, Arkansas (35.386, -94.399)
Metadata
- Model
- gpt-5-mini
- Short Digest
d2dbfdac
Response Measures
None
Description
The Southern Bank and Trust Co. of Fort Smith failed to open on March 2, 1906 and was placed in the hands of a federal receiver (Ira D. Oglesby) March 6, 1906. Coverage describes insolvency, fraud/indictments, and ultimately a receiver paying limited dividends — no article describes a depositor run triggering the suspension. Classified as suspension leading to permanent closure/receivership (suspension_closure).
Events (5)
1.
March 2, 1906
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank failed to open; subsequent reporting describes insolvency, watered assets and alleged fraud by officers/stockholders leading to suspension.
- Newspaper Excerpt
- Fort Smith Bank Suspends. ... The Southern Bank and Trust company ... failed to open today.
- Source
- newspapers
2.
March 6, 1906
Receivership
- Newspaper Excerpt
- Ira D. Oglesby ... took charge of the affairs of the Southern Bank and Trust company as receiver. he having been appointed by Judge Rogers ... .
- Source
- newspapers
3.
March 29, 1906
Other
- Newspaper Excerpt
- Frenzied Finance. The receiver ... reports that only $1200 in assets were available ... schedules show $334,313 in assets, but this amount was made up of worthless notes and other watered paper.
- Source
- newspapers
4.
April 12, 1906
Other
- Newspaper Excerpt
- Arrests at Fort Smith ... Tom W. Neal, John London and J. M. Langston jr., ... were this evening arrested upon indictments found by the grand jury ... conspiracy to defraud ... indictments ... connected with the failure of the Southern Bank and Trust company.
- Source
- newspapers
5.
October 12, 1906
Other
- Newspaper Excerpt
- Receiver Oglesby files his report ... asked for and obtained an order authorizing him to pay the depositors a dividend of 30 per cent ...
- Source
- newspapers
Newspaper Articles (14)
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Article Text
Walters still Missing. Fort Smith, Ark., March 2.-Robert Dawson, a real estate dealer and W. D. Young, a merchant today brought suit to recover deposits made by them aggregating $1,200 In the Southern Bank and Trust Company, before it closed its doors yesterday. The suits were precipitated by a report than an attorney had gone to Hot Springs for the purpose of making application to Federal Judge John Rugers for the appointment of a receiver or the bank. It was believed by the depositors that such action would delay a settlement. President Walters who left the city hurriedly following the closing of the bank had not been located today. His friends Insists he will return within a few days after the excitement incldent to the failure has died down.
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FAILURE OF ARKANSAS BANK Petition for Receiver Ends Plan for Reorganization of Fort Smith Institution. FORT SMITH. Ark., March 2.-Attachments and suits against the suspended Southern Bank and Trust company filed today by depositors and other creditors put an end to the reorganization project which last night seemed to promise a reopening of the bank. J. E. Reynolds, a stockholder. today petitioned for appointment of a receiver, alleging that the assignee is himself insolvent and that the officers of the bank have committed fraud. President Waller of the bank is in Dallas, Tex., and says he will return to Fort Smith in a few days to assist in straightening out the bank's affairs. Vice President Lang. ston telephoned today from Coffeyville, Kan that he would be here tomorrow. Today's litigation. it is said. makes it likely that depositors will lose much of their money.
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IN RECEIVER'S HANDS OGLESBY APPOINTED TAKE AFFAIRS OF SOUTHERN BANK AND TRUST COMPANY. Action of Federal Judge-Attorney to Make Application to Set Aside Receivership. Fort Smith, March 6.--rra D. Oglesby came up from Hot Springs this morning and took charge of the affairs of the Southern Bank and Trust company as receiver. he having been appointed by Judge Rogers upon the showing by A. D. Morris that C. C. Waller and Vice President Lemon had. some months ago, given him five notes for $1,000 each, secured by stock of the bank, and of John J. Moss that he is a stockholder to the extent of $2,000. Israel Beeben of Dallas, Texas, attorney for Waller. will arrive in the city tomorrow morning for the purpose of taking action to have the receivership set aside. Mr. Lemon expresses the opinion that the position taken by Judge Rogers is not a tenable one, and says that his only regret is that the appointment will delay any settlement by Tom Neal, who has only a specified time in which to carry out the terms of the contract made with him by the board of directors. He likewise says that the Southern Bank and Trust company of Dallas will come to Fort Smith and open (up a branch here if it is found necessary to do that in order to straighten matters out.
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Friday, March 2. The Southern Bank and Trust company of Fort Smith, Ark., has suspended. It has deposits of about $80,000. General Benjamin Bixby Murray, who at one time occupied a prominent position in national affairs, is dead at Calais, Me. Construction work on the new docks at Baltimore, for which the people recently voted a loan of $6,000,000, was begun Thursday. Alfred Beit, the well known London merchant, who was born in Hamburg, has given $500,000 to found a university at Hamburg. Representative Edgar D. Crumpacker has been renominated by the Republicans of the Tenth congres. sional district of Indiana. The steamship Dakota brings advices from Nagasaki that the famine situation in the northern provinces of Japan is steadily growing graver.
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Fort Smith Bank's' Condition Bad. Fort Smith, Ark., March 3.-There is no loosening up of the affairs of the Southern Bank and Trust company. The indications are now that the depositors will receive but a small per centage of their claims owing to their haste in bringing suits. All day long Friday attachments were run and suits filed by depositors and the bank is now in the hands of the sheriff on a general attachment.
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Friday, March 2. The Southern Bank and Trust company of Fort Smith. Ark., has suspended. It has deposits of about $80,000. General Benjamin Bixby Murray, who at one time occupied a prominent position in national affairs, is dead at Calais, Me. Construction work on the new docks at Baltimore, for which the people recently voted a loan of $6,000,000, was begun Thursday. Alfred Beit, the well known London merchant, who was born in Hamburg, has given $500,000 to found a university at Hamburg. Representative Edgar D. Crumpacker has been renominated by the Republicans of the Tenth congressional district of Indiana. The steamship Dakota brings advices from Nagasaki that the famine situation in the northern provinces of Japan is steadily growing graver.
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Friday, March 2. The Southern Bank and Trust company of Fort Smith, Ark., has suspended. It has deposits of about $80,000. General Benjamin Bixby Murray, who at one time occupied a prominent position in national affairs, is dead at Calais, Me. Construction work on the new docks at Baltimore, for which the people recently voted a loan of $6,000,000, was begun Thursday. Alfred Beit, the well known London merchant, who was born in Hamburg, has given $500,000 to found a university at Hamburg. Representative Edgar D. Crumpacker has been renominated by the Republicans of the Tenth congressional district of Indiana. The steamship Dakota brings advices from Nagasaki that the famine situation in the northern provinces of Japan is steadily growing graver.
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NEWS CONDENSATIONS Wednesday, Feb. 28. The president has signed the urgent deficiency bill. Richard Mansfield denies a report that he was suffering from cancer and would soon retire from the stage. Japanese officers have assumed control of the imperial war college, trade and commercial schools at Canton, China. Councilman Jeremiah Amundsen of Akron, O., has been sentenced to pay a fine of $500 for soliciting a bribe from a sewer pipe company. A resolution favoring the repeal of the duty on hides has been adopted by the executive council of the Massachusetts state board of trade. Major Joseph M. Kennedy, who was on General Fremont's staff in the Civil war and distinguished himself by extreme daring in the famous charge at Springfield, Mo., is dead near Middle town, O., aged seventy-two years. Thursday, March 1. The president has sent to the senate the nomination of David C. Owen to be postmaster at Milwaukee. Four persons are dead and three are missing as the result of a fire in a vaudeville theater at Santiago, Chile. Charles E. Leland, the last of seven brothers, all of whom were well known in the hotel business throughout the country, is dead in Broadalbin, N. Y. He was sixty-three years old. Rear Admiral Colby M. Chester, superintendent of the naval observatory, has been placed on the retired list. He will be retained on temporary active duty in the bureau of navigation. An offer of $125,000 from John D. Rockefeller for a hospital for children suffering from tuberculosis is announced by R. Fulton Cutting, president of the New York Association for Improving the Condition of the Poor. Friday, March 2. The Southern Bank and Trust company of Fort Smith, Ark., has suspended. It has deposits of about $80,000. General Benjamin Bixby Murray, who at one time occupied a prominent position in national affairs, is dead at Calais, Me. Construction work on the new docks at Baltimore, for which the people recently voted a loan of $6,000,000, was begun Thursday. Alfred Beit, the well known London merchant, who was born in Hamburg, has given $500,000 to found a university at Hamburg. Representative Edgar D. Crumpacker has been renominated by the Republicans of the Tenth congressional district of Indiana. The steamship Dakota brings advices from Nagasaki that the famine situation in the northern provinces of Japan is steadily growing graver.
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Frenzied Finance. The receiver of the defunct Southern Bank and Trust Company of Fort Smith, after an Investigation of the affairs of the institution, reports that only $1200 in assets were available for use in paying the debts of the bank The schedules show $334,313. in assets, but this amount was made up of worthless notes and other watered paper. The bank at its best period, is said to have only possessed a few hundred dollars of actual capital.
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Frenzied Finance. The receiver of the defunct Southern Bank and Trust Company of Fort Smith, after an Investigation of the affairs of the institution, reports that only $1200 in assets were available for use in paying the debts of the bank. The schedules show $334,313. in assets, but this amount was made up of worthless notes and other waterThe bank at its best peried paper. od, is said to have only possessed a few hundred dollars of actual capital.
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Arrests at Fort Smith on Bench Warrants Charging Fraud. =-Fort Smith, April 12. Tom W. Neal. John London and J. M. Lang. ston jr., the latter one of the directors of the Southern Bank and Trust company, were this evening arrested upon indictments found by the grand jury. This morning Neal went to the office of the circuit clerk with his bond and was informed that no warrant had been issued for him, but subsequently learned that he and London had been indicted on a charge of conspiracy to defraud. Langston is charged with franci. There were four other indictments returned, but as yet no warrants have been issued. and the identity of the indicted persons is still a secret. It is believed, however, that they are against other directors of the bank. It is claimed by attorneys here that the indictments can be quashed onthe ground of irregularities in the grand jury room. Col. Oglesby, counsel for the receiver, is said to have conducted the examinations in the grand jury room. The mystery surrounding the indictments upon which warrants have been served and those not yet served is causing a great deal of street speculation, as in some of the cases instructions were given not to issue warrants until ordered. then the Warrants were issued. then withdrawn before service and subsequently reissued. Tom Neal and John London say they will demand immediate trials and affirm that their indictment is the result of their expressed intention to bring suit against the stock. holders to compel payment of de positors and that the suits are in course of preparation. Prosecuting Attorney Cravens had nothing to do with the indictments thus found. the grand jury securing the services of Col. Oglesby to conduct the examination of witnesses.
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CABOT. From the Guard, Sept. 21. W. M. Patton has bought the S. J. Cherry farm about a mile south of Cabot. The farmers warehouse is nearing completion, and as the old saying goes, is as big as all out of doors. Work is progressing nicely on the new store house of Dr. Thompson,south of railroad. There will be an unveiling of the Confederate monument at Camp Nelson near the camp ground spring in Lonoke county, 4 miles east of Cabot, 5 miles from Austin, on Oct. 4 1906. All are invited to come with well filled baskets in order to have dinner on the ground. Rev. Sidney H. Babcock of the Forrest City M. E. church has been transferred to the Missouri conference. He has been assigned to the pastorate of the Centenary M. E. church at St. Joseph, Mo. It was Rev. Babcock who took the stump in the late primary campaign and made several speeches in St. Francis county in the interest of Berry's candidacy for the United States Senate. George W. Neal, late professor of Indianola College, has accepted the deanship and chair of languages in Arkansas Cumberland College, at Clarksville. Dr. Neal is a post-graduate of the university, at which he received the degree of Ph. D. J. M. Langston, Jr., a Sunday school leader, and one of the men indicted for complicity in the failure of the Southern Bank and Trust Company, has been again indicted by the grand jury of Fort Smith. He is charged with obtaining money under false pretenses. Langston was at the head of a townsite company. and sold lots to several ministers and churchmen of the city, taking their notes in payment. He then disposed of the notes, and his representations of the property did not pan out, hence his latest indictment. In a Big Four wreck at Norris City, III., Engineer Frank Erwin was killed, his head being severed by the wheels of his own engine. He leaves a widow and two children at Mount Carmel. III.
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RECEIVER OGLESBY FILES HIS REPORT. Fort Smith. Oct. 12.-Receiver Ira D. Oglesby of the Southern Bank and Trust company has filed his report in the federal court. The receiver says he has claims filed with him amounting to something over $23,000. He recommends the allowance of claims aggregating something over $14,000. The balance of the claims filed do not, he thinks. have any standing. He recommends the rejection of the claim of Robert Dawson for $1,000. This sale. he says. grew out of Dawson having sold $20,000 worth of stock given to Neal and Condon by President Waller for legal services, for which sale he was given a commission of $1,000 and his stock. which he surrendered to the bank in exchange for a certified certificate of depoist. Then there is a claim for $250 presented by Ed Hunt, the cashier. The receiver finds that the amount was an alleged payment on stock valued at $750. J. M. Langston presented a claim for something over $3,000, which he said he had on deposit when the bank collapsed. The receiver holds that Mr. Langston is indebted to the creditors in a much greater amount because of his participation in the wasting of the bank assets. and recommends the rejection of the claim. There are something over $8,000 worth of claims recommended for rejection. The receiver asked for and obtained an order authorizing him to pay the depositors a dividend of 30 per cent and he will begin paying it out in a week. There are several suits pending against stockholders and others. out of which the receiver hopes to recover something for the creditors He has on hand in cash between $10,000 and $11,000.