Fed/other loan, Capital injected, Full suspension
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GULFPORT, Miss.. November 28 (A). -Two Mississippi banks yesterday failed to open for business, due, officials said, to uneasiness over deposits and withdrawals. The suspended banks were the First National at Gulfport, capitalized at $400,000, and the Exchange Bank at Canton, capitalized at $110,000.
Ramsay Submits Timber Estimate on Day Tract The Harrison County Board Supervisors morning, having recessed Saturday today. Among other matters coming before the board the matter receiving estitimber owned by Ingram Day Lumber Company sections and which state tax lector claims taxes the state timber these two 2,000, feet and the estimate the Ingram Day Company representative 125,000. There such disparity estimates the board employed Ramsay former member the board estimate the timber the lands. The estihanded to the board this morning by Mr. Ramsey placed the timber 113,000 The board considering funds bonds tied in the closed First National Bank in Gulfport.
First National Bank of Gulfport Claims Deeds Executed for Purpose of Defrauding.
Charges of transfers of Harrison county real estate "for the purpose of defrauding" the First National Bank in Gulfport of a principal sum of $8,974 were included in a complaint filed in federal district court at Biloxi yesterday by Ford, White and Morse, attorneys for A. F. Rawlings, receiver for the bank, against J. H. Wright, former Gulfport lumber dealer, Mrs. Wright, and Mrs. Birdie J. Woodward of Richmond, Va.
National Bank Receiver GrantJudgment Against W. Seafor $40,066.25. heavy cases, for the part formal and today Chancellor Russell brought the first week scheduled two weeks' May chancery court. Argument torneys and was heard during Charles Brown, Gulfport lawyer, named court Redding Esther Redding involving part which the said to be heirs. protest any sort defense from Seaman, series notes the First National Bank Gulfport. Rawlings receiver the First National Bank judgment in total sum $40,066.25 against Seaman the provision that certain lands. under deed trust loans, should satisfy indebtedness unless The judgment cluded principal interest notes, which themtotaled around $29,000. hearing the children Mrs. estranged Fred mother was granted their
O. W. Baldwin, owner of the Baldwin Funeral Home, at 722 Manship, and a funeral director widely known throughout this section, is today announcing the organization of the Baldwin Funeral Benefit association. This is a local company formed to serve local people, and will underwrite burial insurance designed for those who find it burdensome to carry life insurance on the entire family.
"The approximately three years I have served as funeral director in Jackson, has revealed to me the very startling fact that only a small percentage of families have made provisions for such emergencies as are provided for by this association," said Mr. Baldwin, "and for sometime I have seen the growing need for burial insurance for the whole family, and at rates that everyone could afford."
This new venture is characteristic of the progressive spirit that has made O. W. Baldwin not only an outstanding figure in his chosen profession, but a valuable asset to this city and state, for he is capable of foreseeing a need, and has the initiative to provide for it.
The Baldwin Funeral Benefit association has qualified under the laws of the state, as a burial association, and the necessary bond has been filed with the state treasurer.
GULFPORT BANK MAY NOT REOPEN
Comptroller Refuses to Extend Time for Reviving Institution
GULFPORT, July 16 (AP)—J. W. Pole, comptroller of the currency, today denied a request for a 15-day extension of time in which to permit a depositors' committee of the failed First National Bank here to submit plans for a new bank.
In a telegram received here this morning, Pole stated that in the opinion of his office, the interests of creditors of the suspended bank require prompt payment of the largest dividend possible. Doubt of success of the new plan, owing to opposition and length of time required, do not warrant a further extension, the telegram said, and the receiver of the bank will be instructed to act accordingly.
The First National Bank suspended operation last November. Plans by stockholders of the closed bank to organize a new bank were abandoned Thursday night when they failed to obtain the required amount of signatures to a plan which had been approved by the comptroller of currency.
G. V. Fesperman, 80, of Mooresville, N. C., wears a pair of pants purchased in 1874.
Debt Demands Instigated by Jackson and Gulfport Officers
Suits aimed at clearing up affairs of the First National bank of Jackson, and the First National Bank of Gulfport, were filed yesterday, in Jackson division federal court by receivers for the two closed banks.
J. R. Stevens, receiver for the Jackson bank, filed suit for collection of $4,363.32 from the Mississippi Gulfport bank, W. and Union county, for on a note, W. H. Batt
Negotiations Are Opened To Secure Banking Facilities For Coast Town
GULFPORT. Gulfport will have bank in the mediate future negotiations opened by the Hancock County Bank Louis are successfully completed was announced today by Leo W. Seal, president the bank. A lease the building formerly occupied by the defunct First National Bank of Gulfport has been prepared and sent Washington for the approval of the comptroller of currency. the lease is approved, steps will be taken at once for the opening of the bank, Seal said. The Hanceek county bank now operates banks at Bay St Louis Pass Christian and Long Beach. Gulfport has been without bank since the National bank suspended operations last November.
A. F. Rawlings Collects In Interest and Rents $23,874 More Than Administration Costs of 1st National.
The sum of $1,200,033.30 has been collected for the closed First National Bank in Gulfport since the date of suspension, November 25, 1931 to December 31, 1932, according to a statement of the condition of the bank issued by A. F. Rawlings, receiver. Of the total collections $1,144,788.39 is from cash collected from assets and stock assessments; $54,561.13 from cash collected from interest, premium and rents, and $683.78 cash collected by receiver and held as trustee for owners. The total expense including attorney's fees, salaries and all types of expense of administration was $30,686.28. It is noted that the interest alone collected exceeds the complete expenses by $23,874.85.
The bank has borrowed from the Reconstruction Finance Corporation $272,700, and has paid back to the corporation $74,500. The receiver has paid to unsecured creditors an 18 per cent payment on total deposits, the total amount thus paid being $358,260.81. Secured and preferred liabilities paid including dividend total $963,464.20; and collateral account, collections held by secured creditors and not yet applied, total $33,080.62.
The bank now has on hand $11,922.97. Total remaining uncollected assets are $2,857,479.14. Of these assets one item is the stock assessment of 100 per cent thus totaling $400,000. The report shows $15,143.40 collected from stock assessment.
From a digest of the report it is noted that Mr. Rawlings has discharged his receivership to date for 2.55 per cent of the total cash collections, which is considered a very low cost for conducting the affairs of the bank.
STATEMENT OF CONDITION FIRST NATIONAL BANK, IN GULFPORT AS OF QUARTER ENDED DECEMBER 31, 1932—DATE OF SUSPENSION NOVEMBER 25, 1931.
ASSETS Assets at date of suspension (book value, not actual) $4,002,716.00 Additional Assets acquired since suspension (book value, not actual) 13,162.74 Stock Assessment (100%) 400,000.00 TOTAL ASSETS TO BE ACCOUNTED FOR 4,415,878.74 Cash collected from Assets $1,117,166.98 Cash collected from Additional Assets 12,478.01 Cash collected from Stock Assessment ... 15,143.40 Total Cash Collected from Assets and Stock Assessment .$1,144,788.39 Offsets allowed on Assets 215,337.02 Losses charged off: On Assets 198,274.19 On Stock Assessment —0— Total Losses Charged off 198,274.19 Remaining Assets: Uncollected Assets 2,472,622.54 Uncollected Additional Assets —0— Uncollected Stock Assessment 384,856.60 Total Remaining Uncollected Assets 2,857,479.14 TOTAL ASSETS ACCOUNTED FOR 4,415,878.74
Decision Rendered In Case Involving Bank Transaction
Federal Judge Holmes on Dec. 30 rendered an interesting decision in the case of Steward and Lewis vs. A. F. Rawlings, receiver of First National Bank in Gulfport. On Oct. 17, 1931, Harrison county owed plaintiffs $12,000 warrant for which, prior thereto, was assigned to the bank to secure $3700 they owed it. On that date the warrant was delivered, endorsed by bank officers, $3700 deducted and the balance placed to the checking account of plaintiffs. On the same date a garnishment and attachment from the Harrison chancery court against W. D. Steward was served on the bank, whereupon it marked on its ledger that said account of Steward and Lewis was garnished, and refused to pay their checks on it. On Nov. 26, 1931, the bank went into liquidation; but shortly prior thereto it answered the garnishment, saying Steward and Lewis had $7987 on deposit, and averred a tender, but no actual tender of cash into court was made.
Plaintiffs contended that the answer's averments created a trust to the amount stated, and that they were entitled to a preference payment over other creditors of the bank.
Judge Holmes holds that there was no trust and no preference, but only the general relationship of debtor and creditor between the plaintiffs and bank at time it failed which was not changed by service of the attachment and garnishment, and that it was not shown that funds coming to the receiver were augmented by said transaction, nor that he had received any specific sum. The court held, however, that plaintiffs were general creditors of the bank (receiver) for the $7987.06, which the court approved and allowed, as to which plaintiffs were entitled to receive dividends, as other creditors.