64. City National Bank (Bessemer, AL)

View Charter #11905 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
11905
Charter Number
11905
Start Date
December 23, 1930
Location
Bessemer, Alabama (33.402, -86.954)

Metadata

Model
gpt-5-mini
Short Digest
d4334692

Response Measures

Capital injected, Full suspension, Books examined

Other: State examiner assumed charge; reorganization financing sought; receiver later appointed and stockholders assessed.

Receivership Details

Depositor recovery rate
48.0%
Date receivership started
1931-01-12
Date receivership terminated
1938-06-25
Share of assets assessed as good
23.4%
Share of assets assessed as doubtful
62.3%
Share of assets assessed as worthless
14.3%

Description

The City National Bank of Bessemer failed to open / suspended payments on Dec 23, 1930 after the Bessemer Trust & Savings Bank suspended; articles mention a threatened run following the other bank's closing (local bank contagion). The bank attempted reorganization/reopening plans in Jan–Feb 1931, but ultimately was treated as defunct and a receiver (Jacob A. Salmon) pursued claims; stockholder assessments dated May 11, 1931 and receiver activity reported through 1932 indicate permanent closure. Cause of initial distress is contagion from another local bank (local_banks). Dates are taken from newspaper reports; OCR errors in some articles corrected (e.g., BessemTrust -> Bessemer Trust & Savings).

Events (7)
1. January 3, 1921 Chartered
Source
historical_nic
2. December 23, 1930 Run
Cause
Local Banks
Cause Details
Withdrawals/threatened run triggered by the closing/suspension of the Bessemer Trust & Savings Bank (contagion from local bank failure).
Measures
Bank issued statement that it had suspended payments temporarily to protect depositors; failed to open for business.
Newspaper Excerpt
The bank was closed ... threatened run following the closing of another institution in Bessemer.
Source
newspapers
3. December 23, 1930 Suspension
Cause
Local Banks
Cause Details
City National suspended payments/failed to open in consequence of the Bessemer Trust & Savings Bank suspending payments and related depositor withdrawals/weakened reserves.
Newspaper Excerpt
The City National Bank and the Bessemer Trust and Savings Bank failed to open for business today and officials issued statements saying they were 'acting for the best interests of depositors.'
Source
newspapers
4. January 12, 1931 Receivership
Source
historical_nic
5. January 20, 1931 Reopening
Newspaper Excerpt
BESSEMER BANK PLANS TO REOPEN ... bank reopening the City National Bank which closed its doors ... Steps reorganization ... $125,000 reserve to offset any resources may result from the reorganization. to sell stock ... committee composed ... with depositors ... . (Jan 20, 1931 report on plans to reopen.) Also: BESSEMER BANK TO BE REOPENED ... Re-opening of the City National practically assured ... $150,000 pledge. (Feb 18, 1931).
Source
newspapers
6. May 11, 1931 Receivership
Newspaper Excerpt
Jacob A. Salmon, receiver for the City National bank at Bessemer, filed suits ... Salmon also asks eight per cent interest since May 11, 1931, when the United States comptroller of currency assessed stockholders the total amount of the $100,000 capital stock. The bank closed Dec. 30, 1930. (reports of receiver actions and assessments).
Source
newspapers
7. September 1, 1931 Other
Newspaper Excerpt
Depositors To Get Cut Of 25 Per Cent; $135,000 Total Involved ... The checks, 25 per cent dividend, have been ready for dispatch between Sept. 15-Oct. ... Copies Dispatched defunct City National Bank of Bessemer ... (Sept. 1, 1931 report on distribution of dividend).
Source
newspapers

Newspaper Articles (15)
1. December 23, 1930 Hattiesburg American Hattiesburg, MS
Article from Hattiesburg American, December 23, 1930

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Bessemer, Ala., Suspend; Million Dollar Surplus BESSEMER, Ala., City National Bank and the BesseTrust Savings Bank failed mer open for today and ficials issued statements saying "acting for the best inthey terests of depositors. Officials of the Bessemer Trust and Bank said the closing that state banking by Dent superintendent, who was here yesClosing the national terday. said statement to be bank was result of the other bank suspendpayments. Bessemer Trust and Savings The Bank, according its last published report, had capital surplus $2,000,000 with deposits $442,660. The City National capitalizwith surplus of at 630 shown in the last published and deposits of port

2. December 23, 1930 Tallahassee Democrat Tallahassee, FL
Article from Tallahassee Democrat, December 23, 1930

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MIAMI BEACH BANKING INSTITUTION IS CLOSED Atlantic Hop On January15 Repairs Completed German Seaplane At Lisbon. Berlin, Dec. 23. giant DO-X will be ready to seaplane begin its long-awaited flight across the Atlantic on January announced by Dr. Claude was Dornier, designer of the machine, here today. The huge air liner, according to present plans, will leave Lisbon on that date for the Canary Islands, thence proceeding to Cape Verde, Rio de Janeiro, Havana and New York. It was announced that Clarence Schildhauer, American co-pilot of the DO-X, would return to Lisbon January 10 to be ready for the take-off. The DO-X has been delayed at Lisbon by fire which destroyed one wing. Subsidiary Penney Bank In Miami. Following heavy run on deposits after the closing of the City National Bank of Miami yesterday, the City Bank of Miami Beach, subsidiary of the defunct institution, was also forced to main closed this morning, Ernest Amos, state comptroller, has been informed. The two other subsidiaries of the National bank have not been however, as they do entirely trust business, the comptroller was told. Upon confirmation of the information, Mr. Amos tendered the position as liquidator for the City Bank of Miami Beach to E. Duncan, county liquidator for Dade and Broward counties. The City Bank of Miami Beach was capitalized at $100,000 and was established following the failure of the Miami Beach subsidiary of the defunct Bank of Bay Biscayne in Miami this summer. Investigation Started Miami. Dec. City Bank of Miami Beach was ordered closed today as investigation in an was begun by State's Attorney M. Vernon Hawthorne into the alleged violation of state banking laws the closing vesterday of the Citv National Bank here. The state bank examiner ordered the Miami branch bank be closed. and officials of this stitution said depositors eventualwould be repaid in full. Bessemer Banks Closed Bessemer. Ala., 23. The City National Bank the and Bessemer Trust and Savings Bank (Continued on page five)

3. December 23, 1930 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, December 23, 1930

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PHILA. BANK VISITS HOOVER, FLAYS NORRIS placed before President Hoover but he has said nothing Meanwhile the Republican independent group in the Senate for serious diswas preparing Norris himself is. pute. statement last night desued and today Senanouncing tor Brookhart. Republican indeof issued statement which said: "Secretary Mellon has no right to set up a Republican committee with money to over. ride any Republican Senator who listens to the voice of the people. "Robert H. Lucas says there a cancer in the Republican party and that it must be cut out. He is right. But he does not recognize the cancerous part. The personal head of this cancerous growth is Andrew W. Mellon. "Robert H. Lucas is only little wart under the toenail of this big personal- USED G. O. FUNDS The Senate Campaigns Funds Committee. which Lucas had financed some antiNorris campaigning in Nebraska. yesterday found Lucas had used funds of the Republican National Committee in securing the loans he made from bank here to pay the anti-Norris propaganda Stunned by the furore of the sudden controversy. the Senate Republican leadership is watching silently Senate Republicans insist the issue of Norris right to party recognition is not up them and they are watching the attitude of the President and the national committee toward Lucas The Kentuckian still has his job and. therefore. apparently the support of the party On reaching the capitol. Representative also heads the Appropriations Committeesaid he had President Hoover: "It is the duty of every Republican to stand behind Mr. Lucas. Although all might not agree with the way Mr Lucas did things am sure every real Republican agrees with his idea. Wood later declared "It is time for the Republicans to speak out in meeting and rid themselves of people like Norris. He is nothing but wolf in sheep's clothing. Why. would lot rather have to deal with Democrat in the Senate, than pusedo Republican like the Nebraskan.' and stockholders having claims of more than $2,000,000 against the closed Bankers Trust Company and its 19 branch offices were assured to. day the bank is solvent and that they will receive 100 cents on the Plans already are under way for the reorganization and the early re-opening of the huge institution according to Samuel H. Barker president of the 000 concern. MIAMI Fla., Dec. The City Bank of Miami Beach which underwent heavy run yesterday following the closing of the City National Bank in Miami. did not open this morning. HARTFORD Conn. Dec. Hartford banks. the Riverside Trust and Pallotti Andretta & Co., were pended today by Bank Commissioner Lester Shippee. followon both institutions ing runs which have been in progress since last July. BESSEMER Ala. Dec City National Bank the Bessemer Trust and Savand ings Bank failed to open today. Officials said they were "acting for the best interests of depositors.

4. December 23, 1930 The Huntsville Times Huntsville, AL
Article from The Huntsville Times, December 23, 1930

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BESSEMER BANK FAILS TO OPEN City National Remains Closed for Best Interests Of Depositors BESSEMER, Dec. 23 (AP)-The City National Bank and the Bessemer Trust and Savings Bank failed to open for business today and officials issued statements saying they were "acting for the best interests of Officials of the Bessemer Trust and Savings company said the closing of that institution was authorized by Dent F. Green, state banking superintendent, who was here Closing of the National bank was said in a statement to be result of the other bank suspending payments. G. Foote, state bank examiner, assumed charge of the affairs of the Massemer Trust and Savings bank toMr. Green said the institution solvent and that reorganization /may be attempted. Green said withdrawls by depositors to tide them over periods of unemployment had reduced deposits from more than $500,000 year ago to $270,000 and that the bank was unable to realize on assets to maintain its legal reserve. A statement issued by the City National said that institution had suspended payments temporarily. J. C. R. Gwin, vice president said the action was taken "to protect depositors" and to give all a chance "to fare alike." The Bessemer Trust and Savings bank, according to its last published report, had a capital of $60,000 and surplus of $2,000 with deposits of The City National was capitalized at $100,000 with surplus of $33,630 shown in the last published report and deposits of $800,160 Another at Miami MIAMI, Fla., Dec. 23 (AP)- The City Bank of Miami Beach, which underwent a heavy run yesterday fol. lowing the closing of the City National Bank in Miami did not open this morning C.L. Clements, vice president and cashier ,said the bank closed at the order of state bank examiners to protect its The bank had a capital stock of $100,000 surplus of $50,000 and deposinstof $600,000 at the last call. Two At Hartford NARTFORD Conn., Dec. 23 (AP) wo Hartford banks, the Riverside Trust Company and Palotti Andretta and Company, were suspended today by Bank Commissioner Lester B. Shippe, following runs on both institutions which have been in progress since last July. The state manual for 1930 gave the capital of the Riverside Trust com pany, incorporated in 1907 at $400,000. surplus $600,000, undivided profits 805.23 and commercial deposits $3,-

5. December 23, 1930 The Fresno Bee Fresno, CA
Article from The Fresno Bee, December 23, 1930

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State Takes Over Chelsea Bank In New York State Superintendent of Banks Broderick announced to. day he had taken the Chelsea Bank and Trust Company The institution according to the latest figures, had gross of $16,323,000 on December 20th, The bank was closely identified with the motion picture industry in New York and two directors are active figures in the film world. ANOTHER MIAMI CLOSES MIAMI BEACH Dec. 23. The City Bank of Miami Beach was closed to-day to protect depositors, officials announced, after run on the bank yesterday. The city bank had capital stock of $100,000 and of approximately $600,000. The City National Bank of Miami was closed yesterday. CLOSE IN HARTFORD HARTFORD Dec. 23 Hartford banks, the Riverside Trust Company and Pallotti Andretta and Company, were suspended to-day by Bank Commissioner Lester E. Shippee, following runs both institutions. Pallotti Andretta and control the Riverside Trust ComThe state manual for 1930 gave the capital of the Riverside Trust Company as $400,000, surplus $600,000, undivided profits $24,229, savings deposits $643,805 and commercial deposits $3,185,455.10. B7SSEMER (Ala.). Dec. 23 The City National Bank the Bessemer Trust and Savings Bank failed to open to-day. RICHMOND (Va.), Dec 23 The state division of insurance and banking to-day the People's Bank of Gretna, Va., had

6. December 23, 1930 The Stuart News Stuart, FL
Article from The Stuart News, December 23, 1930

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Miami Beach City Bank Shut Today MIAMI, Dec. 23. City Bank of Miami Beach, which underwent a heavy run yesterday following the closing of the City National of Miami, did not open its doors today. C. L. Clements, vice-president and cashier, said the institution would pay depositors 100 cents on the dollar. He said the bank was closed on order of state bank examiners to protect the assets. The City Bank of Miami Beach had a capital of $100,000, $50,000 surplus and deposits of $600,000. The September 30 statement of the lank listed its total resources at more than $1,000,000 and deposits of nearly $900,000 at that time. Meanwhile, Hugh H. Gordon, jr., president of the suspended City National Bank of Miami, was questioned privately today by State's Attorney Vernon Hawthorne, concerning three statements made at various times by C. Penney, New York capitalist, regarding his support of the bank. Gordon said before going into Hawthorne's office he would not comply with a request to produce the originals of telegrams sent by Penney April and June, assuring President Gorden and the depositors that he "stood squarely behind the bank." BESSKMER, Ala., Dec. 23. The City National Bank and BessemTrust Savings Company with total deposits of nearly $1,250,000 failed today.

7. December 24, 1930 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 24, 1930

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CHELSEA BANK Closes In New York. Small Institution Patronized By Theatrical Profession-Tv Suspend In Hartford. New York, December 23-(AP)The Chelsea Bank and Trust Company, small institution patronized mostly by theatrical people, was taken over by State Superintendent of Banks, Joseph Broderick, today following heavy withdrawals Broderick said he closed the bank to preserve its assets for depositors. The institution operated seven offices. It owned the Chelsea Ex change Safe Deposit Company and the Chelsea Exchange Corporation, securities firm. The run developed last night and this Broderick said it was caused by rumors. Officials began an investigation of reports that a malicious campaign was under way to injure banks by circulating false The Chelsea Bank was a national and state depository, but not member of either the Federal Reserve or the New York Clearing House. It was capitalized at $2,500,000. had deposits of approximately $18,000,000 and total resources of $23,000,000. Hartford, Conn., December 23Hartford banks. the Riverside Trust Company and Pallotti, Andretta & Co., were suspended today by the Bank Commissioner following runs on both institutions which have been in progress since last Pallotti, Andretta & Co. control the Riverside Trust Company. The state manual for 1930 gave the capital of the Riverside Trust Company at $400,000, surplus $600,000. undivided profits $244,229, savings deposits $643,805 and commercial deposits $3,185,455.10. Miami, Fla., December 23-(AP) The City Bank of Miami Beach, which underwent a heavy run yesterday following closing of the City National Bank in Miami, did not open this morning. The bank had capital stock of $100,000. surplus of $50,000 and deposits of $600,000 at the last call. Bessemer, Ala., December 23 AP) The City National Bank and the Bessemer Trust Savings Bank failed to open today. Official said they were "acting for the best inter ests of

8. December 24, 1930 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 24, 1930

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CHELSEA BANK Closes In New York. Small Institution Patronized By Theatrical Profession-Two Suspend In Hartford. New York, December 23-(AP)The Chelsea Bank and Trust Company, a small institution patronized mostly by theatrical people, was taken over by State Superintendent of Banks, Joseph Broderick, today following heavy withdrawals. Broderick said he closed the bank to preserve its assets for depositors. The institution operated seven offices. It owned the Chelsea Exchange Safe Deposit Company and the Chelsea Exchange Corporation, securities firm. The developed last night and this morning. Broderick said it was caused by rumors. Officials began an investigation of reports that malicious campaign was under way to injure banks by circulating false rumors. The Bank was a national and state depository, but not member the Federal Reserve or the New York Clearing House. It at $2,500,000. had deapproximately $18,000,000 and total resources of $23,000,000. Hartford Conn., December 23 Hartford banks, the Riv. erside Trust Company and Pallotti, Andretta & Co., suspended today by the Bank Commissioner following runs on both institutions which have been in progress since last July. Pallotti, Andretta & Co. control the Riverside Trust Company. The state manual for 1930 gave the capital of the Riverside Trust Company at $400,000, surplus $600,000, undivided profits $244,229, savings deposits $643,805 and commercial deposits $3,185,455.10. Miami, Fla., December 23-(AP)The City Bank of Miami Beach/ which underwent a heavy run yesterday following closing of the City National Bank in Miami, did not open this morning. The bank had capital stock of $100,000. surplus of $50,000 and deposits of $600,000 at the last call. Bessemer, Ala., December 23-(AP) The City National Bank and the Bessemer Trust & Savings Bank failed to open today. Official said they were "acting for the best interests of depositors.

9. December 24, 1930 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 24, 1930

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are obliged to close our doors to protect The bank was established in 1888. Its deposits are estimated excess $2,000,000, mostly by small merchants in the TWO BANKS CLOSED IN BESSEMER, ALA BESSEMER, Ala, Dec The City National Bank the Bessemer Trust and Savings Bank failed to open today. Officials said they 'acting for the best interests of depositors. Virginia Bank Suspends RICHMOND, Dec 23 (A. P.)The Banking that the Peoples Bank of Gretna, Va, has suspended business. The bank capitalized at $50,000 and had deposits of $474,000.

10. December 24, 1930 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, December 24, 1930

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NEW YORK BANK CLOSES FOLLOWING HEAVY RUNS NEW YORK, Dec. 23 (AP) The Chelsea Bank and Trust company, small institution patronized mostly by theatrical people, was taken over by State perintendent of Banks Joseph Broderick today following heavy withdrawals. Broderick said he closed the bank to preserve its assets for depositors. The institution operated seven offices It owned the Ohelsea Exchange Safe Deposit company and the Chelsea Exchange corpora ation. securities firm. The Chelsea bank was national and state depository but not a member of either the federal reserve or the New York clearing house It was capitalized at $2,500,000, had deposits of approximately $18,000,000 and total resources of $23,000,000. HARTFORD Conn., Dec 23 (AP) Two Hartford banks the Riverside Trust company and Palotti Andrea & Co., were suspended today by Bank Commissioner Lester E. Shippe following runs on both institutions The state manual for 1930 gave the capital of the Riverside Trust company. incorporated in 1907. as $400 000 surplus $600,000. undivided profits $244. 229.61, savings deposits $643.805 23 and commercial deposits $3,185,455 10. MIAMI, Fla Dec. 23 (AP) The City bank, of Miami Beach. which underwent heavy run yesterday following the closing of the City National bank in Miami, did not open this morning The bank had capital stock of $100,000. surplus of $50,000 and deposits of $600,000 at the last call. WASHINGTON Ga., Dec. 23 (AP) A notice the door of the National Bank of Wilkes county here today said the institution had been closed pending a meeting of the board of directors The bank was capitalized at $50,000 and assets were reported at $400,000 BESSEMER Ala. Dec. 23 City National bank and the Bessemer Trust and Savings bank failed to open for business today and officials issued statements saying they were acting for the best interests of depositors The Bessemer Trust according to its last published report had capital of $60,000 and surplus of $2,000. with de. posits of The City National was capitalized at $100.000. with surplus of $33,630 shown in the last published report and deposits of $800,150 JACKSON Miss. Dec. 23 The Bank of McCool. small Attala county institution. closed its doors today The bank. capitalized at $15,000 car. ried deposits of $100.000 with surplus listed by the banking department at

11. December 24, 1930 Evening Vanguard Venice, CA
Article from Evening Vanguard, December 24, 1930

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Additional Banks Closed In East A run that started on the Prankli Trust Company yesterday after the the Bankers' Trust company had voluntarily closed its doors to conserve its assets, began to subside today bank officers an- MIAMI Fla. Dec. 24 (AP)-The City Bank of Miami Beach, which underwent a heavy run yesterday following the closing of the City National Bank in Miami, did not open this morning BEESEMER Ala. Dec 24 (AP) The City National Bank and the Beesemer Trust & Savings Bank failed to open today Officials said they were actir or the best in- Four of the five members of the basketball team of Carleton college, Northfield. Minn.. have played together three years.

12. January 20, 1931 The Birmingham News Birmingham, AL
Article from The Birmingham News, January 20, 1931

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BESSEMER BANK PLANS TO REOPEN With the declaration that the bank reopening the City National Bank which closed its doors protect president the aid officials in this task. The was attended friends officials tional semer forced doors Dec. declared regularities found with the could Resources the bank given deposits loans the bank. Steps reorganization mittee Dr. Snider Bryan, and W. secretary. favored bank and agreed their posits, $125,000, reserve to offset any resources may result from the reorganization. to sell stock in the and Johnston, committee get with depositors composed Bruce Leggett John Neal.

13. February 18, 1931 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, February 18, 1931

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BESSEMER BANK TO BE REOPENED City National Financing Almost Completed Re-opening of the City National practically bank of assured with the the field Wedin nesday cleaning up the necessary for the $150,000 plans will be Re-organization the has not been set. The ing date committee, headed working with W. W. Elhenny, of the closed bank, expected to finish refinancing Wednesday The state department recommended the re-opening and specified $150,000 pledge. The money raised tirely Besesmer business men, Mr. Hollingsworth stated The bank was closed in Decemthreatened "run" followber by ing the closing of another stitution in Bessemer.

14. September 2, 1931 Birmingham Post-Herald Birmingham, AL
Article from Birmingham Post-Herald, September 2, 1931

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OUT OF DEFUNCT BESSEMER BANK Depositors To Get Cut Of 25 Per Cent; $135,000 Total Involved Ala., Sept. 1-Divisecretary the and approximating $135,000 Goode, member of the State dend checks depositors of the Board of Agriculture. will ready for Copies Dispatched defunct City National Bank of BesCopies telegram dissemer between Sept. 15 Oct. Salmon. for the tural leaders North Carolina. Jacob Institution. announced Tuesday. South Carolina. Georgia, Florida, Tennessee. Oklah The checks. 25 per California and Arizona cent dividend. have been urging they appeal Texas Mr. for by support such program. signature of the comptroller of cur- group the rency. ferred Miller of this amount in consideration decides Bessemer section bank special Alabama closed doors Legislature. The governor declined

15. September 28, 1932 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, September 28, 1932

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STOCKHOLDERS SUED BY BANK RECEIVER Jacob A. Salmon, receiver for the City National bank at Bessemer, filed suits in federal court Tuesday against five stockholders of the defunct bank in an effort to collect the amount of the par value of their stock. Salmon bases his suit on the individual liability clause of the federal reserve act. Named in the suits are B. B. Waldrop, $1,000; J. Glenn, $500; A. G. Parsons, $1000; C. Pope, $2,000, and J.C. B. Gwin, $21,000. Salmon also asks eight per cent interest since May 11, 1931, when the United States comptroller of cutrency assessed stockholders the total amount of the $100,000 capital stock. The bank closed Dec. 30, 1930. Its capital stock's par value is $100 a share.