Shelby County Bank (Montevallo, AL)

Episode Information

Episode UID
5527467091217
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
552746709 hash
Start Date
May 24, 1901
Location
Montevallo, Alabama (33.101, -86.864)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
822d8d4bcda79d88

Response Measures

None

Description

Bank was a private concern; suspension followed withdrawals and later a receiver was appointed.

Events (3)
1. May 24, 1901 Run
Cause
Bank Specific Adverse Info
Cause Details
Large cash withdrawals and inability to collect loans promptly indicating liquidity problems tied to bank's asset/management condition.
Measures
Cashier Burgess Little went East to secure funds to tide over embarrassment; efforts to raise cash reported.
Newspaper Excerpt
heavy withdrawals of cash and failure to collect promptly will cause this bank to suspend payment temporarily.
Source
newspapers
2. May 24, 1901 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Temporary suspension declared due to heavy withdrawals and failure to collect promptly; bank cited as private concern with limited cash on hand.
Newspaper Excerpt
notice posted on the door by the cashier says this action was due to withdrawals of cash and failure to collect promptly and the suspension is temporary.
Source
newspapers
3. June 7, 1901 Receivership
Newspaper Excerpt
J. H. Wallace has been appointed receiver ... put in charge of the suspended Montevallo bank; petition in bankruptcy filed by William Walker.
Source
newspapers

Newspaper Articles (12)
1. May 25, 1901 The Houston Daily Post Houston, TX
Article from The Houston Daily Post, May 25, 1901

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Article Text

Alabama Bank Suspended. Birmingham, Ala., May 24.-A special to the News from Montevallo says the Shelby county bank suspended payment today. A notice posted on the door by the cashier says this action was due to withdrawals of cash and failure to collect promptly and the suspension Is temporary. It is believed that the bank will be able to pay dollar for dollar and resume soon. The bank WAS a private concern. with William Walker of Blockton as president and Burgess Little as cnaster. The last statement available shows that It had $19,025 individual deposits: $2027 bills payable; $17,805 loans, and $2365 in cash.

2. May 25, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, May 25, 1901

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MONTEVALLO BANK CLOSES. Notice on Door Announced a Temporary Suspension. Birmingham, May 24.-(Special.)-A special from Montevallo says that this morning the following notice appeared on the door of the Shelby County Bank at that place: "We regret to say that heavy. withdrawals of cash and failure to collect promptly will cause this bank to suspend payment temporarily. Every effort is being made to raise cash. "B. Little, Cashier.' The special adds that it is believed that the bank will be able to pay dollar for dollar and will soon resume business. Inquiry at Birmingham banks elicited the information that the Shelby County bank is a private concern with William Walker of Blocton, as President, and Burgess Little, Cashier. the last statement received by banks here showed the following concerning the condition of the Shelby County Bank: Individual deposits, $19,925.45; bills payable, $2,507.84; loans, $17,805.13; cash, $2,365.93; interest and exchange, $1,285. This statement was made several months ago and no recent statement has been received here concerning the bank's condition.

3. May 25, 1901 The Sun Wilmington, DE
Article from The Sun, May 25, 1901

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Article Text

Alabama Bank Quits. Montevallo, Ma., May 21. The Shelby County bank has suspended payment. A notice was posted saying the suspension was merely temporary and was eaused by withdrawals of cash and failure to collect promptly. No statement is obtainable.

4. May 25, 1901 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, May 25, 1901

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Article Text

ALABAMA BANK SUSPENDS. Too Much Cash Withdrawn and Too Few Collections. Birmingham, Ala., May 24.-A special from Montevallo says the Shelby County Bank suspended payment to-day. A notice posted on the door says the action was due to withdrawals of cash and failure to collect promptly, and that the suspension is temporary. It is believed that the bank will be able to pay dollar for dollar and resume soon. It is a. private concern.

5. May 26, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, May 26, 1901

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Article Text

SHELBY COUNTY BANK. Cashier Little Went East to Secure Funds to Tide Over Embarrassment Montevallo, May 25.-(Special.)-Mr. Burgess Little, the cashier of the Shelby County Bank, which suspended yesterday morning. left town Thursday for some point in the East to endeavor to raise money to tide over the bank's embarrassment. but it is not known whether he has succeeded. The bank was established here about six years ago by Mr. William Walker of Blocton, with Mr. Little as general manager and cashier. The deposits are something in the neighborhood of $20,000. and the assets are not known. No statement has been issued. Mr. Little has all along enjoyed the confidence and esteem of the citizens of the town and his many friends hope for the best in the affairs of the institution. It is understood that the Girls' Industrial School is indebted to the bank to the extent of several thousand dollars but Professor Peterson, the President of the school was a large individual depositor.

6. May 26, 1901 The News & Observer Raleigh, NC
Article from The News & Observer, May 26, 1901

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Article Text

The Shelby Bank Suspends. I (By the Associated Press.) Birmingham, Ala., May 24.-A special from Montevallo says the Shelby County Bank suspended payment today. A notice posted on the door says the action was due to withdrawals and failures to collect promptly and that the suspension is temporary. It is believed that the bank will be able to pay dollar for dollar and resume now soon. It is a private company.

7. May 31, 1901 Greene County Herald Leakesville, MS
Article from Greene County Herald, May 31, 1901

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Article Text

ALABAMA BANK FAILS. Shelby County Institution Will Settle in Full. Birmingham, Ala.-A special to the News from Montevallo says the Shelby County Bank suspended payment Friday. A notice posted on the door by the cashier says this action was due to withdrawals of cash and failure to collect promptly and that suspension is temporary. It is believed that the bank will be able to pay dollar for dollar and resume soon. The bank was a private concern with William Walker of Blocton as president and Burges Little cashier. The last statement available shows that it had $19,925 in individual deposits; $2,507 bills payable; $17,805 loans and $2,365 in cash.

8. June 7, 1901 The Age-Herald Birmingham, AL
Article from The Age-Herald, June 7, 1901

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BLOCTON BANKER ASKS FOR RECEIVER William Walker Files a Petition in Bankruptcy--), H. Wallace Receiver A petition in bankruptcy has been filed in the United States Court in this city by William Walker who has been conducting a bank at Blocton. He also asks that a receiver be appointed to take charge of the property of the bank. The liabilities aggregate some $23,000, and the assets aggregate on their face $23,101, the real value being something like $10,000. the petitioner sets forth. He states that a committee representing the depositors has charge of the books, papers, etc., of the bank, and he asks that a receiver be appointed to take charge of all of these. J. H. Wallace has been appointed receiver, and has gone to Blocton to take charge. He filed a $5000 bond. Walker was also president of the Shelby County bank at Montevallo which recently suspended.

9. June 8, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 8, 1901

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Article Text

Miners Adjourn. he convention of miners of the odistrict comprising Walker, Winn and Marion counties, which coned at Jasper, Walker county, on nday last, has adjourned. No final reement was arrived at with the optors of the mines in those counties ative to a wage scale for the ensu3 year commencing July 1. A conence between the miners and the erators was held yesterday and the erators offered to renew the contract W in effect. The miners requested a W scale, ranging from 50 to 65 cents ' ton, according to the condition of e coal, eight hours to constitute a y's work, two week pay days and er concessions. The operators resed the demands of the men and e minere declined to accept the of's of the operators. The following npanies are represented in the conence: Tennessee Coal, Iron & RailLd Company ,the Elk River Coal mpany and the Brilliant Coal Comny by the Aldrich Mining Company. e miners decided to hold an adrned convention on the first Monday er the Alabama District No. 20 had t and made a contract with the optors in the other part of the state. Ex-Governor Johnston Speaks. Former Governor Joseph F. Johnston oke by invitation last night at the Immencement exercises of the coled public schools at Bessemer. The eaking occurred at the City Hall. F the negro race some practical them to vice, gave telling their be industrious, homes. ve money and buy own uching the suffrage question he dered in favor of a poll tax with an cational qualification. It is the Montevallo Bank. Vith reference to the application of Iliam Walker of Blocton, for a rever of the private bank of which he president, and his petition in bankotcy filed in the Federal Court here it was to is a sterday. bank referred learned the today Shelby that unty Bank of Montevallo, which reatly suspended. The impression obned from the papers filed in the case s that Walker conducted a bank at oton, whereas he resides at Blocton t the bank in the case is at Montelo. In other words, no banking inests at Blocton have suffered by alker's failure. The Blocton Savings nk, of which J. B. Wadsworth is sident, had no connection with alker's interests. J. H. Wallace has en made trustee of the Bankruptcy urt and has been put in charge of ) suspended Montevallo bank.

10. June 12, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 12, 1901

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RUMORS AS TO LITTLE CASHIER OF DEFUNCT MONTEVALLO BANK. Story That He Has Been Arrested in Another State and Then Released on Habeas Corpus Proceedings. Birmingham, June 11.-(Special)Sensational rumors are afloat regard ing the recent failure of the Shelby County Bank located at Montevallo. One of these stories is to the effect that Burgess Little, the cashier, is not at Montevallo, and is thought to have left the State and that papers for his arrest have been issued. Receiver J. H. Wallace of this city, who was recently appointed to take charge of the bank. when seen this morning stated to a reporter that he knew nothing of the whereabouts of Mr. Little, but that he had heard in Montevallo that 1/ttle had been arrested in another State but that he secured his release upon habeas corpus proceedings before the necessary papers would be sent for holding him. Receiver Wallace stated further that he has not had time as yet to investigate the affairs of the bank fully but that there is no doubt but that the bank had been conducted upon the money of the depositors. The bank was capitalized at $25,000 but Mr. Wallace says that about $4,000 was paid in as far as is known and this went into the building and fixtures. The star is told in Montevallo that less that $4.000 of the capital stock of the bank was paid in and that $600 of de positors' money was used in furnishing the bank. William Walker of Blocton was at the head of the bank and it is said furnished whatever capital went into it, but he left the management of affairs to Cashier Little, he (Walker) being in business in Blocton and going to Montevallo occasionally. Walker recently filed a petition in bankruptcy here and this led to the appointment of a receiver for the bank, he praying that such action be taken. When questioned as to the resources of the bank Receiver Wallace said he could not say definitely, but was of the opinion that the assets would net sufficiently to pay depositors almost 50 cents on the dollar ,if not quite this sum. The deposits in the bank are said to have been about $23,000. It was the only bank in the Montevallo section and was patronized by the population of the entire surrounding country. Cashier Little was one of the most prominent citizens of Shelby County, having had a number of interests outside of the bank. What he is charged with is not stated, but the warrant for his arrest it is said, was sworn out by one of the depositors. Nothing definite of the reported arrest of Mr. Little can be learned. One story is that he was apprehended in Kentucky and another says in Tennessee. He has a family at Montevallo and also has nu merous friends who do not believe that his connection with the bank was in any way questionable.

11. June 13, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 13, 1901

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A DEFENDER OF LITTLE CASHIER'S INTENTIONS WERE NOT CRIMINAL. He Turned Over to the Creditors of the Montevallo Bank Everything That He Possessed. Birmingham, June 12.-(Special.)-A prominent citizen of Blocton, who was in the city this morning, made a statemen to a newspaper reporter concerning the recent failure of the Shefby County Bank at Montevallo. The Blocton man was ardent in his defense of Burgess Little, cashier of the defunct institution. He stated that he knew that Mr. Little has turned over all he had to the creditors of the bank, including his home and his wife's piano, and had not a dollar to his name. He was satisfied that there had been nothing criminal in his cónduct and that he would come clear if brought to trial. The Blocton man stated that Mr. Little sent for him last Thursday night and told him the situation. At this time he explained the charge that he had received $1,100 on the day preceding the bank failure, saying that he did receive it, but that he did not have any idea at that time that the bank would fail. He said, so the Blocton man declares, that he paid this money to a Birmingham bank in satisfaction of a paper held here, and that he expected to negotiate another loan. He failed in this and this led to the shortage in money which resulted in the suspension. He disclaimed any criminal intent. The reporter's informant stated also that he understood that Mr. Little had been arrested at Tullahoma, Tenn., and was now on his way back to Montevallo. The person who made this statement relative to the arrest was a Mr. Johnson, who swore out the warrant against Mr. Little. McCrery Will Be Manager. Charles McCrery, at present connected with the Dominion Coal and Iron Company, the Whitney Syndicate in Cape Briton, will be general manager of the Tennessee Coal, Iron and Railroad Company, with headquarters here, succeeding G. B. McCormack, resigned. Mr. McCrery is expected here in a short time. He was formerly connected with the Duquesne Iron Company of Pennsylvania, which is part of the Carnegie syndicate. A statement given out by Chairman D. H. Bacon of the Board of Directors says that Mr. McCormack tendered his resignation to take effect early in July, but at the earnest request of the company, will remain until his successor is familiar with the properties of the company, which will be some months Mr. McCormack contemplates engaging in another business, opportunity for which was offered him some time ago. To Pay Off Old Debt. It is stated that $2,000,000 of the $15.000,000 bond issue which was approved at a stockholders' meeting of the TenNam

12. June 16, 1901 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 16, 1901

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The Southern Manufacturing Co., Richmond, Va., U. S. A. SHELBY COUNTY BANK. Friends of Burgess Little Defend His Course. Montevallo, June 16.-(Special.)-So much has been said and written concerning the failure of the Shelby Coun. ty Bank that your correspondent has endeavored to get an impartial statement of the whole affair. The friends of Burgess Little say that he is guilty of no wrong-doing, and in support of this position, it is contended that Mr. Little and the President and sole owner of the bank, Mr. William Walker of Blocton, promptly turned over all the books, papers and assets WANTED of the bank to a committee appointed by the depositors, and they attended all the meetings of this committee when called on and did everything in their power to assist this committee in arriving at the true statement of affairs. They also claim that Mr. Little remained in Montevallo for ten days after the failure, and, having nothing to do, applied for a position as clerk in a summer hotel in Tennessee, where he went last week. While on his way, he was One arrested on a warrant sworn out by a depositor here and detained for several days, being finally released on habeas corpus proceedings. His friends also claim that the assets of the bank figure up over $22,000, and the liabilities a little over $23,000, making a deficit of about $1,000. This statement seems to be borne out by an exThousand amination of the bank's books, and the statement of the receiver that the depositors will get over 50 cents on the dollar. They also say they have no doubt that some of the assets will not bring dollar for dollar, but claim that this Is no evidence of criminality on the part of Mr. Little but bad judgment in making loans. Cords On the other hand, many of the depositors claim that false representations were made by Mr. Little of the bank's condition, in that the published statement of the bank showed a capital stock of $25,000 while it was actually not over $5,000. Some of the depositors also claim that at the time of Oak making their deposits it was represented to them that various citizens here were stockholders to a large extent, and that the bank was in a healthy condition. They also say that Mr. Little's account was largely overdrawn, and that he was extravagant and wasteful of the bank's resources, which, it appears, were only the deposits made by its patrons. Taken altogether, this failure is an Hickory object-lesson for the members of the Constitutional Convention, and if they wish to perform a lasting service for the people of the State at large, they I and will incorporate in the Constitution 10 some provision requiring private banks to make sworn statements, and, if necessary, have an examiner to visit them at least once a year and report on their condition. Srould a law of this kind have been in effect, much money and great annoyance to all persons concerned would have been saved here, as Ash well as at other places over the State in the past.