541. Paragould Trust Company (Paragould, AR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
December 23, 1926
Location
Paragould, Arkansas (36.058, -90.497)

Metadata

Model
gpt-5-mini
Short Digest
d230021b

Response Measures

Full suspension, Books examined

Other: Bank was closed by the state bank examiner; receiver not initially appointed.

Description

Paragould Trust Company did not open Dec 23, 1926 and its affairs were placed in hands of the state bank examiner after a quiet/heavy run triggered by the death of major borrower/director Ad. Bertig whose firm owed ~$155,000. The bank was closed by state examiner and appears to have remained closed (no reopening reported).

Events (2)
1. December 23, 1926 Run
Cause
Bank Specific Adverse Info
Cause Details
Death of Ad. Bertig froze Bertig Brothers' assets; their firm owed the bank about $155,000 leading depositors to withdraw funds.
Measures
None reported; heavy withdrawals preceded closing; state examiner later placed affairs in his charge.
Newspaper Excerpt
this was generally known in the city it was said and Bertig's death was followed by a quiet run on the bank.
Source
newspapers
2. December 23, 1926 Suspension
Cause
Government Action
Cause Details
Assistant State Bank Examiner Dickinson (and Examiner W. Jarrett) ordered the institution to close and took charge of the bank's affairs after the run and discovery of large indebtedness.
Newspaper Excerpt
The Paragould Trust Company did not open today and its affairs were placed in the hands of the state bank examiner.
Source
newspapers

Newspaper Articles (5)
1. December 23, 1926 The Sun Jonesboro, AR
Article from The Sun, December 23, 1926

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Article Text

PARAGOULD TRUST COMPANY FAILED OPEN DOORS TODAY; BERTIG LOAN BROUGHT CRISIS The Paragould Trust Company failed! to open its doors this mornAssistant State Bank ExamRAJE Dickerson last night ordered the institution to close and Examiner W. Jarrett is in charge of the bank's affairs. Cause of the failure is attributed to the recent death of Ad Bertig The Bertig - interests are reported to owe the institution over $155,000 which they could pay. The capital and surplus was $150,non, Deposits were $400,000 and loans in the neighborho of $400,000. Dr. M Scott was president The crisis was brought to a head by the death of Mr. Bertig, the Bian to the Bertig interests being frozen tightly. Heavy withdrawals are reported to have been made State Banking Department officlais claim that affairs are not in extremely bad shape and indicate that targe part of the deposits will be paid | Receiver has not been appointed The bank closing was attended by calm, according to reports from Paragouid, there being no exciteThe Paragould Trust Company was located in building at corner of Pruett and Fourth Streets, It was established 23 years ago.

2. December 23, 1926 The Daily World Helena, AR
Article from The Daily World, December 23, 1926

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Article Text

TWO GREEN COUNTY BANKS FAIL BECAUSE OF $155,000 LOAN Paragould, Ark., Dec. 23. (AP)Two banks in Greene County. the Paragould Trust Company and the Bank of Marmaduke at Marmaduke, Arkansas, nine miles north of this city closed their doors today. The Paragould Trust Company did not open today and its affairs were placd in the hands of the tsate bank examiner. The Bank of Marmaduke closed today following a run. The Paragould Trust Compay had a capital and surplus of $150,000 and deposits of approximately $400,.00. The Bank of Marmaduke was spitalized at $15.00 and held deposits of about $55,000. J.C. Markham, cashier of the Pargould Trust Company stated that he reason for the closing of that intitution was the inability of Bertig ?rothers Department Store immeditely 0 repay a loan of $155,000 Ad. Bertig, a member of the firm and a director in the bank, died re- Dr. F. M. Scott is president of the Paragould Trust Company. Outtanding loans of the bank were esimated at about $400,000 The Bank of Marmaduke had a urplus of $4,000. Bills payable amounted to about $4,000. Bills Burks is president of the institution Little Rock, Dec. 23. (AP)-R. G. Dickinson assistant state bank commissioner who returned today from Paragould said the death two weeks 1go of Ad. Bertig, a director, together with a run made on the Paragould Trust Company, for the past two weeks were responsible for its closing today. The firm of which Mr. Bertig was head was a heavy borrower from the bank, Mr. Dickinson said. This was generally known in the city it was said and Bertig's death was followed by a quiet run on the bank.

3. December 23, 1926 The Daily World Helena, AR
Article from The Daily World, December 23, 1926

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Article Text

TWO GREEN COUNTY BANKS FAIL BECAUSE OF $155,000 LOAN Paragould, Ark., Dec. 23. (AP)Two banks in Greene County. the Paragould Trust Company and the Bank of Marmaduke at Marmaduke. Arkansas, nine miles north of this city closed their doors today. The Paragould Trust Company did not open today and its affairs were placd in the hands of the tsate bank examiner. The Bank of Marmaduke closed today following run. The Paragould Trust Compay had a capital and surplus of $150,000 and deposits of approximately $400,#00. The Bank of Marmaduke was spitalized at $15.00 and held deposits of about $55,000. J.C. Markham, cashier of the Pargould Trust Company stated that he reason for the closing of that intitution was the inability of Bertig ?rothers Department Store immeditely 0 repay a loan of $155,000. Ad. Bertig, a member of the firm and a director in the bank. died re- Dr. F. M. Scott is president of the Paragould Trust Company. Outtanding loans of the bank were esimated at about $400,000. The Bank of Marmaduke had a urplus of $4,000. Bills payable amounted to about $4,000. Bills Burks is president of the institution Little Rock, Dec. 23. (AP)-R. G. Dickinson, assistant state bank commissioner who returned today from Paragould said the death two weeks 1go of Ad. Bertig, a director, together with a run made on the Paragould Trust Company, for the past two weeks were responsible for its closing today. The firm of which Mr. Bertig was head was heavy borrower from the bank, Mr. Dickinson said. This was generally known in the city it was said and Bertig's death was followed by a quiet run on the bank.

4. December 24, 1926 Daily American Republic Poplar Bluff, MO
Article from Daily American Republic, December 24, 1926

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Article Text

PARAGOULD BANK CLOSED DOORS Trust Co. Had Deposits of $400,000-In Hands of Ex aminers. The Paragould Trust Company of Paragould, Green County Ark one of the big banks of Northern Arkan sas, closed its doors yesterday and its affairs were placed in the hands of the state bank examiner The trust company had a capital and surplus of $150,000 and Seposits of over $400,000. No cause was assigned for the failure.

5. January 8, 1927 Evening Star Washington, DC
Article from Evening Star, January 8, 1927

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Article Text

VERDICT IS SUICIDE. Authorities Decide as to Mysterious Death of Financier. PARAGOULD, Ark., January 7 (A). -Ad Bertig, merchant and financier of Paragould, who died under mysterious circumstances December 12. killed himself, according to the death certificate which was signed by Dr. James A. Dillman, the physician said yesterday. Bertig's death was followed by the closing of the Paragould Trust Co., whose accounts showed the Bertig's interests owed the bank $155,000 and shortly thereafter the Bank of Marmaduke, near Paragould, was closed after a run on the institution, which held some of the Bertig paper.