gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ffaf2f3f32f4a635
Response Measures
None
Description
State-declared banking holiday in March 1933 preceded withdrawals; receivers appointed in June 1933 and the bank remained closed.
Events (3)
1.March 5, 1933Run
Cause
Macro News
Cause Details
Contagion from New York bank closings and regional banking holidays triggered heavy withdrawals in Virginia.
Measures
Limited withdrawals on savings accounts / applied passbook contract limits (e.g., limiting withdrawals to $10 without notice).
Newspaper Excerpt
considerable sum was withdrawn yesterday from banks... The American Bank and Trust Company applied ... limiting withdrawal savings account deposits
Source
newspapers
2.March 6, 1933Suspension
Cause
Government Action
Cause Details
State-declared (Governor Pollard) two-day banking holiday in response to banking crisis and New York closings.
Newspaper Excerpt
A mandatory bank holiday in Virginia for Monday and Tuesday was ... proclaimed by Governor Pollard
Source
newspapers
3.June 16, 1933Receivership
Newspaper Excerpt
Judge Julien Gunn yesterday entered an order approving four steps recommended by receivers of the American Bank and Trust Company of Richmond... the eight branches of the American bank will be closed as rapidly as customers withdraw their special trust deposits and surrender their lock boxes.
Source
newspapers
Newspaper Articles (24)
1.March 5, 1933Richmond Times-DispatchRichmond, VA
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Article Text
Roosevelt Warns Invoke War-Time Power As Hail To Meet Crisis 250,000 Inauguration; Two-Day Holiday Declared For Virginia's Banks
Pollard Cites Pressure; Federal Reserve Heads Summoned by Woodin
Action by en Only After Banks in New York Are Closed by Temporary Holiday
Order Is Preceded By Discussion
Bankers AdvisReserve ed Moratorium Forced by Outside Influences Crisis Over S. in
A mandatory bank holiday in Virginia for Monday and Tuesday was last night by Governor proclaimed while in Washington atPollard, tending the Roosevelt inaugural ceremonies. this power, GovIn exercising Pollard said his action was ernor taken upon the recommendation of Reserve banks of the the Federal district. "Since making my statement of Friday night," the Governor's an"there have nouncement been unforeseen developments New York and in other financial centers of the country where bank holidays have been declared. night Governor Pollard Friday necessity day view of Virginia's law permitting banks to restrict withdrawal of deposits, subject to approval the State Corporation Commission Pollard's statement last night, in reference to the New York bank holiday development, which included closing of the New York Stock Exchange and Cotton Exsaid: "This new development changes the and imposes an undue burden upon the banks of Virginia. "While Virginia has statute which under less critical circumstances would meet the situation through application of the banks to the Corporation Commission, the machinery incident to the operation of this law would cause delay which must be avoided under existing unprecedented conditions. "In order, therefore, to relieve the banks of the necessity of making separate applications with the recommendation of the Federal serve banks of this district, declaring legal holiday operative for Monday and Tuesday. March and through the State and binding all the banks." Governor Pollard's announcement of the two-day banking holiday came few hours after Richmond bankers conferred at the Federal Reserve Bank of Richmond, the conference being attended by M. Bristow. State Banking Commissioner, and Assistant AttorneyGeneral Collins Denny Jr. Virginia remained one of the last States to declare banking holiday. and the closing was forced upon banks because of the pressure outside influences, was learned last night. Most Virginia banks maintain balances in New York City. The sult of the closing there was that New York corporations with deposits here drew on Virginia banks, which in turn saw part of their funds tied up in New York. The strain on Virginia banks began with the declaring of bank holidays in Maryland, West Virginia, Kentucky and Tennessee, neighboring States, and the closing of large bank in Washington, Despite this ring drawn around the Old Dominion, this State maintained normal banking until the New York closing precipitated crisis which caused member banks of the Federal Reherve Bank Richmond. in the interest of their own depositors, to recommend State-wide closing for two days. The New York holiday was proclaimed for yesterday and tomorrow. Reopening of New York banks Tuesday would clarify the Virginia atmosphere, as well that of other States, was stated last night by local banker. considerable sum was withdrawn yesterday from banks, but there was action suggestive The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10. learned yesterday that the Federal Reserve Bank during the past ten days has lent
Continued on Page Seven.
Call for Discussion of Bank Situation Comes Just After New SecreGoes Into Office tary
2.June 4, 1933Richmond Times-DispatchRichmond, VA
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Costs at Minimum
Committee Convinced Old Charter Is Useless
Continued From First Page. recovery of the percentage their deposits the old the cited reasons bank liquidator would more than forced The listed its reasons follows: the bank would receive all the be paid instead going private new bank valuable banking buildings from possible loss of would profitable the old court could might be ruined receivership: the bank have which for improved mar ket in the slow and bank would retain much the good will built up by the old
The complete text of the statement issued Harris Hart chairman the board the American Bank and also chairman of the depositors' protective committee, follows Depositors' Protective Committee the American Bank and Trust Company desires make this statement the report the examination of the bank. realizes because nature of the report very difficult give true picture of the affairs the brief compass. the examiners document several hundred contains analysis of every standing loan the bank and estimate the present value the underlying collateral and other assets. appraisal based what the believe to be fair estimate what the assets would bring today but, in the nature of things. the examiners cannot estimate trend of values during the period that would be required for the liquidation the bank under any arrangement that can made. "The substance of the report the briefest words. is that the capital and surplus the old bank would virtually wiped out the probable losses reported by the examiners were charged off today as ascertained losses. There thousand dollars on one side the ledger the other, out would not considerable the assets of the bank had to be und If liquidated over reasonable time. there considerable salvage in the items reported losses.
Depositors Considered impossible to say what percentage their deposits can ultimately who had balances in the Bank and Trust when denied the right Everything will depend the manner in which the assets are marketed. and the values when they marketed. receivership ordered no question. in our opinion. but that the depositors would lose heavily-how heavily, we cannot attempt "On the other hand. the American Bank and Trust Company had an accumulated value built through many had large and department owned two large bank buildings several small buildings, useful for banking purposes but doubtful not for those purposes, or If converted other "Many of the loans of the bank are based on real estate. the value which will increase most substantially general business recovery When these are combined. they the depositors contingent on the allowed for liquidation and the wisdom with which that liquidation effected. "We are convinced that impossible for the American Bank and Trust Company to reopen and operate under its old charter. In the same way we believe that receivership with forced and liquidation would be costly in the It would entail heavy the depositors for court costs, etc. In addition. would that the bank depositors are also would be called upon their loans time when all assets are tied up in the bank They would lose as depositors and as borrowers.
New Bank Proposed "The the best return the depositors their money our deliberate bank and quest this for for institution. If this the depositors will gain in several ways "First they will save the greater part of the cost of compensation allowed for such in liquidation will be payable to the bank new bank using the present Main and banking would from pos. sible loss rental that would be tained the buildings were not used for banking the new bank could with the consent of the court courts having jurisdiction take over the trust accounts of the old bank "Fourthly the new bank would able to assist the present might ruined by the time that the other because the be put forced hold good will the friendly dealings its customers "Finally the new bank would time which hope for better market for the slow "For these we conclude and recommend depositors that they co-operate the organization bank giving the best assurance for the the maximum of their in the old bank. An part of deposits new in larger part the deposits be lost under forced new officers directors Comptroller
3.June 7, 1933Richmond Times-DispatchRichmond, VA
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collateral for This an encouraging indication The complete text of the statement by Oliver Sands president of the American Bank and Trust Com pany organization years ago, "At the meeting of the stockholders held on May full report that time The of the bank has been and not until June was the report of the available the directhe "The directors officers have not had the opportunity to make an amination of this report in every detail, being very voluminous docucovering of assets and liability and making up over the would be contrary all good public the names of the borrowers and their information relating their private affairs. and it. might work great injury to debtors to have publication their indebtedness this institution. as it would misunderstood and cause action by others which would embarrass individuals, firms and corporations which have dealt with us in confi dential way. disclose such details of the report would be to betray business which standpoint of good good business do not right my deal very frankly with the stockholders bringing such salient and important results this examination your tention affects the financial standing of the bank reported by the Estimates of Examiners. desire that these estimates are made by the not in by the and in which they are familiar and the of by the examiners are much than have ever those most familiar the affairs of the The duty facing the aminers was appraise assets on the market April The slight change in conditions which has already been experienced has appreciated many the sets, both directly held and held as "The did not criticize the and directors. the large capital the the credit standing the concerned and the value the collateral. this not venture out proportion to the of conservative This list directors, course, means the directors the bank on the 15th April and not the that have recently been appointed by the depositors' only to say that the (doubtful and estimated) the basis present day and prices. Already the conditions have resulted the value the assets both owned and held collateral by the bank. With of the business improvement reasonable rise real estate these figures would necessarily be adjusted upwards. Obligations where moral are highly regarded and where are sands the decrease the value should not make the loan valueless. for the character the citizens constitute an intangible asset which the not justified taking into but which very sound and the loans are liquidated report in great and length the management the They make no comment After of study and consideration as what would the best the this bank and after the advice of the highest authorities the the approval of the nance Corporation the Federal Rethe Clearing House banks of the City and upon the dation exhaustive the has that the terest this bank new bank be for the purpose assets and business the institution for the benefit its creditors would seem hardly necessary say that anything other than orderly the assets the would in loss and that many the bank further secured handled orderly and dollars which on this market. appear intelligent handling fully This experience this bank and by all others who deal credits
Outlines "The plan for the organization of new one which being put effect all the country the reports from those already established are most new bank will be organized for the purpose creating type of advance will be made by the and upon the the bank that the this bank will placed their credit the such of their deposits in this
Board of Directors Report To American Stockholders
Continued From First Page.
Loss estimated examiners REALTY real holding tracted. Owner 95 parcels of real estate for company con-
Original cost of properties $1,711,974.79 Recent appraised value Amount HAMPTON GARDENS DEVELOPMENT tirely owned Holding pieces real estate improved and unimproved. All taken for debts acquiring value Mortgages outstanding Appraised of properties Amount Loss estimated examiners assets the bank the date the examination and doubtful shown by the date Loans and Main Office Branches Past due Loans Bonds and Securities Overdrafts Shortages Accounts Receivable Escrow (Debits) Remittance Accounts and Securities 1,642.70 2,376.30 Debit against Savings and American Trust of Wm. 3,000 Barclays in Exchange 00 600 capital of the bank at this date was Surplus Profits Reserves losses and depreciation
Total From this see losses estimated the examiners are $33 less than the reserves the institution the management bank Under head and quote the lowing from report kept in book of directors stockholders' Did you inspect the minutes of directors' and stockholders' meetings since important received from supervising far as know spread the minutes? examination Federal Reserve State and the board directors? Executive discounts directors and their firms specially acted upon the there active Discount Committee? Are minutes kept action taken by Book over active Examining Are the not completed acted officers directors acted upon as answered in the in the question preceding There examiners' report the department They that and found possession proper includes department as well as safe custodian examiners their report the following examiners public's best the this through that Examiner of Banks and (Virginia) by Respectfully submitted
HARRIS Chairman. Board Directors HART. bank as may be possible from the this loan. The new bank will start out out any obligation with fresh and capital and The earnings the established which will be able take over and from service will render the tion of the old bank will make this Institution success from the start and with its facilities contacts with the customers the old it should render at much lower the the old bank than be possible any other closing this report the will repeat the statements heretofore made the causes leading closup the ing of and its failreceive license reopen. The consequences of this depression have been serious and fatal in many the entire nation. banks have been the victims Only One Failure "Richmond fortunate that has only one bank that was seriously affected by the heavy withdrawals prior March In many cities banks were and the intelligent self-interest has induced great consideration the part the people and the for the number of the city of Philadelphia and throughout Pennsylvania have been an additional period months work out their plans here the many and depositors this bank for their kind expressions their great patience and considera- responsibility for any other form liquidation be assumed by those considering the than tors who will be directly such the that responsibility of may permitted add personal word to this would say for silent pending the of report has been source of very great regret passed through time acute business depression. This not be better shown taking different stocks on the New Stock Exchange On January 1930 they were valued In December 1932 the were valued therefore, that the estate and loans held by this bank should depreciation Already there improvement April 15. statistics lists 421 whose been 64 per cent from April Demands Cited. "During the fall the culminated in an exhibition of mob psychology rarely in the country Had that state of mind existed for few more and had not every bank in this country been venture to say that there are banks which could have withstood another the unusual drains and it. now fee] justice to myself, the directors and the loyal officers and employees, the the Richmond that should say that the most drastic to which any bank Virginia ever been submitted has shown that there are irregularities. but that the mistakes which been made were primarily the mistake such, of exerting of the bank for preservation the business and this City, and secondly taking advantage of the opportunities by the administration the R. with which carry on the helpful work this institution has trying to maintain and enlarge Richmond's business life 'Having spent years in building this institution having invested in my own and my family's cannot regard myself one but the largest individual the of the bank share with you the banking different that other The pubno than the depositors and the Anything life of this City that affects adversely 50,000 banking cannot be The obligation rests upon all aside any self so that can done, and that which the best of the firmly believe and that belief confirmed by the mature the Clearing House Banks of and by the examiners of this bank. the plan suggested best for the is best for the City of
Economical Management. easy make and circumstances as these think
4.June 16, 1933Richmond Times-DispatchRichmond, VA
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Group Meets Daily
First Report Submitted to Judge Gunn on Progress
Judge Julien Gunn yesterday entered an order approving four steps recommended by receivers of the American Bank and Trust Company of Richmond. The court designated the First and Merchants' National Bank, StatePlanters' Bank and Trust Company, Central National Bank, Virginia Trust Company, Bank of Commerce and Trusts, Savings Bank and Trust Company, Mechanics' and Merchants' Bank, South Richmond Bank and the Morris Plan Bank of Virginia as depositories for the closed bank's funds, and directed that an equality of balances, as far as possible, be maintained at the depositories. The court instructed the receivers, the Bank of Commerce and Trusts, Logan R. Ritchie and Sherlock Bronson, to give customers free access to safety deposit boxes and to the American's "safe-keeping department,' and also to pay to rightful owners the proceeds arising from checks, drafts, notes and other negotiable paper before the receivers were appointed. The last-named stipulation is to take care of cases. the court order read. where no relation of debtor and creditor exists between the bank and such owners, but where the relation is that of principal and agent only In their first report to the court. the receivers informed Judge Gunn that customers of the old American had been and embarrassed by not having free access to safety deposit boxes. The bank, the receivers said. had no banker's lien on the contents of such boxes secure any loans. advances or overdrafts of such customers due to the The eight branches of the American bank will be closed as rapidly as customers withdraw their special trust deposits and surrender their lock boxes The three receivers are holding their daily sessions the board room of the American bank at Tenth and Main streets.
5.October 3, 1933Richmond Times-DispatchRichmond, VA
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City Claim Next
Preferred Status Sought for $500,000 Deposit
An investigation by the Commonwealth's Attorney into the operations of the closed American Bank and Trust Company of Richmond has been neither discussed nor considered by the protective of which he is Harris Hart stated yesterday in making formal denial of the of published statement that such step was being weighed. Meanwhile, it was reported yesterday that the next development of moment the bank case may maduring the City of Richmond's hearing for preferred status relative to its deposit of more than in the institution now governed by The City contending that the bank deposits from the muwhen officials of the bank knew to be insolvent W. Kirk Mathews, chancery for Judge Julien has stated he will set date for hearing the City's claim at the convenience of City Attorney James Cannon, who is now studying the audit and report made by the receivers last week. Following meeting yesterday of the Chairman Harris Hart issued the following "In today's edition of the News Leader. referring the proposed meeting of the depositors' protective committee, there appears the following statement At that meeting It is expected that discussion. asking an investigation by the At. torney into the affairs of the closed bank made understood that letter on the subject is ready for submission to the committee for consideration. "What was the basis of the expectations of the writer do not know. can only say that such suggestion has not been considered or cussed by this committee at any time. "The committee party to the suit which established the Our meeting was purely routine meeting at which the interest of the depositors up to the receivership was canvassed. and future activity of the committee in behalf was discussed. Counsel for the bank receivers are expected to file today in City cuit Court the declaration their suit against officers and directors an effort than 000 authorized by the board as dividends and paid stockholders In the Herbert Mercer has begun serving on more than 1,200 stockholders. against whom notice of suit was filed last week by the bank's receivers, in companion suit to recover bank dividends declared disbursed during a specified M. E. Bristow, State Commissioner of and Insurance yesterday issued the might point out as all well-informed that the American was national bank until the beginning of when became bank also member of the Federal Reserve System. and subject to examination by the examiners of the Federal Reserve Bank All of the examinations of the American made since such time have been made jointly by examiners of the Federal Reserve Bank and the State examiners and the report of the examination signed by set examiners. great deal has said about stock loans and particularly those to the Bankshare Corporation, but apparently there has the that was to make loans up to two-thirds the book value of such stock under the State law until about the middle of June, 1932. This latter law was changed after repeated requests from the banking department, but in changing the limit and rendering loans on stock unlawful. there saving clause in favor of loans previously made in with the provisions of the law prior the amendment and was that such loans were not to be this and such loans might from time to time be provided reduced or collected in full, the case may be. as ably to conform to the provisions the "Copies all examinations were sent to the board of directors of the American. following each exThis gave full particulars concerning directors' loans and the amounts of them.
Segal Will Probated The will of Harry who lived at 3325 West Grace Street, was in Court yesterday. Mrs. Sarah Segal his widow was named sole legatee and executrix of the estate,
6.October 28, 1933Richmond Times-DispatchRichmond, VA
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Stockholders to Plan Procedure Next Week
Sub-Committee Discuss American Bank Suit
Members of the representing the AmeriBank and Trust Company Richmond suit filed ceivers recover approximately $600,000. paid shareholders the dividends specified will meet week with the discuss the procedure to defending court This statement was made yesterby the mittee added that the exact time for the meeting has not been deAfter filing suit against directors the closed bank. receivers the bank followed up suit against alleging that declaration and payment dividends and receiving of same. illegal.
7.November 10, 1933Daily PressNewport News, VA
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WILL APPRAISE ASSETS RICHMOND, Nov. J(P)-Manager J. K. Daughton of the Richmond branch of the Reconstruction Finance Corporation today said appraisal of the assets of the closed American Bank and Trust Company would be given preferred attention to "the exclusion of other matters."
8.November 23, 1933Richmond Times-DispatchRichmond, VA
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Month Granted Holders to File BankSuitReply
American Receivers Object to Order in Action Seeking $600,000 Recovery
Gunn yesterday entered an order giving stockholders the American Bank Trust Company Richmond thirty days after pending pleas are disposed file answers the suit brought to more than paid them in Chrisfor the bank receivers, objected By this extension of time stockholders are not liable default, was pointed out in legal circles. Cabell and R. Grayson Dashcounsel for the stockholders headed by Fensom. filed pleas in and general the behalf of approximately 400 In their answer they ask Judge Gunn to disthe bill filed There eight other lawyers already record aid the efforts Cabell and Mr. Dashiell to defeat recovery dividend payments They are Archie Robertson. Wyndham John Wingo. Stuart ChrisDavid Meade White and Joseph William C. Bibb of Louisa, and Butzner of matter of conjecture among whether ceiver's suit against directors alleged illegal declaration dividends will precede follow the suit lodged against stockholders. There are 1,200 defendants among the to extent the being the largest its kind filed in Virginia.
9.December 5, 1933The News and AdvanceLynchburg, VA
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To State Reasons For Bank's Failure
Former Officers Of American Bank And Trust Will Testify Today
Richmond, Dec., for the failure the American Bank and Trust Company of Richmond will stated under oath tomorrow former officers of the closed testify before W. Kirk Mathews hearing on claims that responsible officials knew the bank to insolvent deposits inspected. claim, first made by May, and the which was the largest depositor, hundred other depositors the two original claimants in asking preference over general Bristow, state commissioner banking Logan Ritchie chief state bank and until recently receiver the American Bank Oliver Sands, and the bank during its of years are among moned appear witnesses. are Walter HollaWilliam Camp, Hill, Carter Cocke, Perry Seay, Randolph Vertner, Mann. Gregory, Cabell Sauer, Jr., Stewart Wilson. Mr. Wilson, president of the Commerce Trusts, acting the receivers, T. Justin Moore being his Mr in charge of and the City bank when Ryland. appear for Christian Louis counsel receiver, will attempt defeat preference
10.December 6, 1933The News and AdvanceLynchburg, VA
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Depositors Cannot Cite Receivers' Allegations
Ruling Made At Hearing Of Suit Against American Bank And Trust
Richmond, Feb. 5 (AP)-Allegations made by of the American Bank and Trust Company of Richmond against directors and stockholders in a suit to recover dividends allegedly declared and paid unlawfully, cannot be cited by depositors in of preference over general Commissioner Kirk Mathews ruled today. The receivers pending suit was cited by City James Cannon and Attorney W. H. Ryland, Jr., in an effort to prove their that the bank was insolvent before March 4, 1933. The hearing will be resumed tomorrow "The morning. hearing today also brought forth the from John Wilson, of the bank's receivers, that the source of information on which the suit against directors and stockholders was based was the audit made by A. M. Pullen and Company. Frank Stewart, in charge of the Pullen audit, testified that relatives three minor officers of the bank. working in branch offices, withdrew their funds shortly before the bank was closed. Oliver J. Sands, president of the closed testified that he exchanged his American Bank stock for stock of the bank shares corporation formed to deal in stock of the American and other banks. When questioned regarding the line of credit extended by the American to firms and corporations of which he was an officer or director, Mr. Sands asked for oppor"tunity to the records and he was It was expected he would be recalled testify tomorrow. During the hearing, City Attorney Cannon at what he described as the "hostile attitude" taken by the receivers for the bank to defeat preferred claims. M. Bristow, state commissioner of insurance and banking, testified that the American Bank was not examined for year before its close. "The law our department to examine banks at least twice year.' Mr. Bristow said. adding that "I regard the statute as directatory not mandatory. Asked if he considered that the law had been violated by failure the department the American year before its close, Mr. Bristow guests of Mr. and Mrs. T. N. Giles in Robert E. Loving who is employed in & C. camp at Thanksgiving "day with his father. Houston Loving here. Mr. and Mrs. Woodrow Hatter of Waynesboro spent the past week-end with their parents, Mr. and Mrs. D: K. Hatter Tyro and visited relatives on Sunday Mr. and Mrs. W. E. Massie of Tyro are visiting relatives and friends in New Jersey. The night bridge club met in the home of Dr. and Mrs. Homer E. Clarke near Massie's Mill on Friday evening when score prizes were awarded and refreshments were served. said that for bank the size of the American, It took force of from twenty to twenty-four examiners to do the work. "We had only nine examiners, and some two hundred state banks to examine. he said, "Obviously the task was impossible of fulfilment." He said date had been set in February to examine the but called off because of unsettled conditions in Baltimore and elsewhere. "We hoped." he said. "after March that the American would be reorganized.' In the course of the hearing. City Attorney Cannon said that "we can prove our claim of insolvency only by circumstantial evidence.' now.
11.December 15, 1933Richmond Times-DispatchRichmond, VA
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Liquidation Head Gives His Approval
Release of Preference Claims Seen Aid in Quick Consideration by Officials in Washington
By Radford Mobley Washington Correspondent construction Finance receive for action tomorrow the American Bank and Trust Company application for loan. mitting cash dividend Richmond in the near Robert V. Fleming. chairman the Federal commitfor that district, here Following weeks intensive activiwhip the loan application shape at Fleming said received by his office here and be turned over once corporation for final action. understood that Fleming has approved the could learned was for the entire asked smaller
RFC Officials Silent
RFC officials today stated no comment would made until the plication has been but dicated that action would pedited in the belief that all possible should released to American early there no doubt here the corporation will today substantial the the full for mond other interests against believed the release much as posonce depositors. Fleming Comments Discussing the application Fleming said: state that has been received and will submitted RFC final action tomorrow that action will quickly officials anticipated RFC the application today. Inreceipt dicating them the tion final form and them for consideration this work by the liquidation comAll loan application has The Fleming certified the figures of the various recent months. And accounts in to the RFC. It believed this work the light conditions." and the recomchanged request for mendation carries considerably larger than was proposed last March reopen the bank under liberalized of the administration has been policy adopted.
To Charge to advanced will be lent Funds the the will interest loan cent the bank's total than request is substantially than this figure. Action come any day may that the Richmond loan application has been given bank
Continued on Page Column
12.December 23, 1933Richmond Times-DispatchRichmond, VA
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Checks Sent ToDepositors Of American
35,000 Will Get Shares of Final Check on Assets Results in Loan Grant
Merchants Asked To Aid Receivers
Officials Urge Prompt Honoring of Drafts to Loose Funds at Once
Richmond depositors of the closed American Bank and Trust Company will receive dividend checks today. This was made certain late last night when receivers for the bank mailed out dividend amounting 15 per cent on each positor's account, to 35,000 depositors, following the grantloan to the closed ing of the Reconstruction Finance bank by Corporation. Checks totaling $1,300,000 mailed which 15 per every cent the total deposit amounted of $1.
The RFC loan was granted shortly after 10 o'clock last night; after of. ficials of the local RFC office had and night checking the worked day collateral of the closed bank preliminary. Checks had necessary been made out and receivers of the American waiting only the final word from the RFC before putting them in the mail. In completion of announcing R. Combs, head of the RFC grant. his that could get their checks apply the money Christtime Officials used effort expedite the steps prelimigranting of the and decision was made few and red tape main to be attended to today.
Christmas Cheer
The dividend which gifts Santa Claus thousands whose funds tied the closed banks since bank holiday last are drawn the Bank of Commerce and To prompt circulation of the bank funds and permit use been merchants and other with in cashing the dividend checks satisfactory identification furnished The granted last required the of the office the as the loan already been thorized by the board at Washington last Saturday Advance of the to depositors made possible by signed Thursday by Judge Julian Gunn of Circuit with the approval Judge Moncure who jurisdiction over trust and fiduciary In the decrees the American Bank to pay out another preferred when these shall been proved valid Mailing of the checks last night milestone the hard the ceivers of the closed bank have had to travel in thei refforts get fairs of the bank straightened and to make assets to By the dividend the last address Checks mond placed the mail within the granting loan destination Postmaster Berkley Williams has agreed them precedence other wherever but the they are not received on the first depositors should not alarmed as they are the way. officials said The local office the RFC will entire the loan, available of the and Trust Company this Mailing did not the check however. The that the cash would be was suffor immediately effort has been made Christmas but for several days the those hungrily the balance Techmatters had to be ironed red tape cluttered up the process, officers and employees, realizing the of payments thousands people, generously time and worked day night to put the matter through The receivers had checks made out. in for and ready to the postthat word came through to Employees the RFC and receivers but pleased their the action the mailing of the checks
13.January 3, 1934The Richmond News LeaderRichmond, VA
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CANNOT JUSTIFY TO BANK RECEIVERS. Leader: allowances the attorneys the AmerBank and Trust Company shocking. commend Mayor Bright for his criticism of Judge Gunns liberality granting such sation the and attorneys the defunct American Bank Trust The writer should like to ask these attorneys that should granted liberality. indeed that they should lavished with pay? appears that his honor Judge Julien Gunn. has the that very unlike receivership. sadly different because are depositors. some children, orphans persons almost poverty bank's state. depositors understood that the receivership kept minimum. this done? writer with Mayor Bright his protest
14.January 4, 1934Danville Register and BeeDanville, VA
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WEAK BANKING LAW
Sen. Layman Would Have State Banking Dep't Act as Receivers
NEW CASTLE, Va., though hitherto opposed to vesting in the state banking department the power to discharge duties ceivers defunct banks, State Senator George Layman. chairman the banking today he reached the inevitable conclusion that the advantage of depositors for such power be granted. The senator said he would support legislation providing for the change when to the lowance of granted by cuit Judge Julian Gunn Sheriock Bronson Justin Moore, the ceivers the American Bank and at Richmond When legislation providing for the state discharge duties bank receivers recent session the Senator Layman voted against the In the Richmond case and others, he his decision to support such based. matter of policy, opposed to state banking department the power the receivers failed taking away from circuit courts function appointing receivers. have followed the excessive made for their services, have inevitably reached the that in order to the assets defunct failed for distribution it would their advantage banking department liquidate such particularly have in mind the receivers the American Bank and Trust company. This an outstanding ample the excessive cost of liquidating banks under the present laws. But not the only instance in which depositors. many whom widows and orphans. suffered account excessive allowances receivers their ployes liquidating banks. gard this of the weak spots our present banking law should corrected the by next legis-
15.January 5, 1934Richmond Times-DispatchRichmond, VA
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Cannon Prepares Bill of Review
Gunn Will Be Requested to Reconsider Order; Bright to Confer on Plans for Legislation
Mayor Bright yesterday urged the Bank of Commerce and Trusts. one three receivers of the American Bank and Trust Company of Richmond. to join the other two receivers in about review and rebringing duction fees which the Mayor termed princely and exhorbitant. John Wilson. president the Bank of and Trusts. of the business out City meeting York, learned. United States Senator he had Harry Byrd from tion that every and all influence effort exerted to prevent of excessive fees and receivers of American bank. both with respect and fees future already authorized Acting on the request of Mayor Bright, City Attorney Cannon is preparing formal bill review whereJulien Gunn will be urged Judge fees of each the Bank and Trusts and Bronson. Moore, receivers, and Barton and Parker. for receivers. Mr Bronson Moore letters to the mayor indicated their accept which satisfactory to the mayor
Mayor Comments
In brief statement Bright hope the presithe Bank Commerce and Trusts will, after more mature flection. his colleagues signify willingness to have case viewed and agree substantial compensation for services rendered our distressed people. Acting over the large ringing in his for o'clock to diswhereby the General Asnext week, will asked pass recurreceivership fees ginia. The mayor asked Richmond delegation the legislature, the three members of the State CorCimmission, and State Bank Bristow with him at City Nine the invited talk the matter with the are leading the may obtain helpful how the of exceslaw exists in North whereby closed banks are liquidated little cost by the State Banking may the of legislation in Virginia,
Wicker In Delegation
Richmond's delegation consists of Senators Wicker. R. Fuller Hill and Delegates Charles Albert William H. Horace Edwards and B. Eng Hooker and W. Ozlin the State Banking Commissioner the conferees. Delegate Charles speech before the First Club last night denied statement published yesterday that legislation providing for the receivership closed banks had been blocked by members the General Assembly since Mr. Moss said that such measure had the 1932 by Senator John Wicker. and Senator but had held up in the Senate close the session and as member of the he,
16.January 9, 1934The Roanoke TimesRoanoke, VA
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Grand Jury May Be Asked To Look Into Richmond Bank Case
Richmond. Jan. grand jury probe of the affairs of the closed American Bank and Trust Company Richmond, may be asked by Commonwealth's Attorney T. Gray Haddon, the new prosecutor said today. His statement was made after Judge John L. Ingram fixed February 16 the date for hearing argument on demurrers and other technical answers to the suit filed by attorneys for the bank receivers against directors and several officers. Receivers seek to cover more than $600,000 in dividends which they allege were unlawfully paid to stockholders. The common attorney said he would await the outcome of the rectors' suit hearing before initiating grand jury He indicated he would make formal announcement within the next few days, after studying reports now part of the receivership record in the city cir. cuit court. Counsel for the receivers allege, in their suit dividend payments, that the bank was known by its responsible officials to be insolvent when certain dividends were declared.
17.January 12, 1934Richmond Times-DispatchRichmond, VA
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Court Favor Reinstatemen Bank Claims
Counsel for American's ceivers Refer to on Withdrawal
American Bank and Trust Compan depositors who withdrew preferre claims based on alleged insolvency who made deposits on March the day of the bank's closing are titled ask claims to an order yesterday by Judge Gunn in City Cir cuit Court. should be open to deposit tors affected. counse) for the receiver in the light written by bank official on seeking legal permission restric withdrawal per cent The exist ence of this letter was not known receivers when they asked withdrawa all preference claims based alleged possible RFC loan and dis. tribution. the said The order entered by Judge that while the does not proof of insolvency runs on the bank March "shows complete ness by the bank with the public during the period following March 13 in June of the audit of April Another bank development yester day was the of resolution the Downtown and Old Market Bright his stand against the large fees paid receivers the Bank The resolution part view of the fact that of wage are need the present time and affected by disposition of funds in the AmeriBank and Trust Downtown Old Market Association hereby goes record indorsing the stand taken by the Mayor their
18.January 13, 1934The Richmond News LeaderRichmond, VA
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Continued From First Page. ceivership is vacated, since the receivers in event would no longer have authority to prosecute. The Depositors Protective Committee was not represented at the meeting. but Its members have indicated that they individually in sympathy, with the efforts other positors effect reduction in the cost of receivership.
Hart Silent on Plan.
Harris Hart, chairman of the depositors' said today that he had comment make the plan outlined by Mr. for the bank take over the liquidation American bank. The plan suggested by Mr. Andrews the formation state bank with capital of $500,000 and surplus $125,000, with the RFC $250,000 preferred stock and depositors the American subscribing the remainder. Success the proposed depends "upon even more specific condition than the mere creation and preservation harmony among the parties interest," Andrews said, "because contemplates, first the vacation of the present celvership and the resumption of the the affairs of the old bank the state corporation commission, the delivery these fairs the depositors and the Reconstruction Finance Corporation. obvious that the co-operation and support Judge Gunn, the receivers, the corporation commission obtained before into effect. Reconstruction Finance Corporation already has approached, and every reason believe that its co-operation will forthcoming. assumed that Judge Gunn will vacate the if the depositors request and the agreeable. Indeed. that Judge Gunn would refuse grant such petition, the depositors and the RFC the only parties have any interest in the assets the bank. Some Details Plan. receivership vacated, the situation then would be back in the hands of the state corporation commission. which at least liquidating agent. every reason to believe the RFC "This proposal have every reason to believe the RFC would desire, that the liquidating agent permit the new bank service the papers the old receive fee therefor. confidently that liquidation of the assets of the old institution through institution controlled by the depositors the old gives the greatest assurance of the assets the old bank, therefore offers the depositors the best means of keeping their losses shudder when we contemplate what will happen the present plan of firms and by the score will be forced into no matter how policy the ceivers might pursue. contend this no time for such unfortunate happenings. "Liquidation through receivers liquidation nothing by its very destructive values, regardless how noble the intentions the court and the receivers might be. be borne mind that the proposed new bank would be absolutely clean that its deposits will be fully protected under the federal deposit guaranty as the deposits of any other bank the country, that hardly probable that safer depository could be selected by anyone. "This proposal should appeal the American bank depositors citizens Richmond from the selfish point view alone opportunity make good but even this opportunity did not exist civic pride itself impels try the situation. and would justify the undertaking."
No Review Petition. City Attorney James Cannon does not intend file his petition for review of the fees to the receivers American Bank and Trust Company with the city circuit court today. Cannon, has been drawing up the petition for review the request mayor, intimated today that papers will be fied in the city circuit court in the coming week.
19.January 27, 1934Richmond Times-DispatchRichmond, VA
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Bronson Raps Bright on Fee Cut Statement
American Bank Receiver Asks City to Re-open Matter If Dissatisfied
Stirred by report which he said implied that Mayor Bright was not satisfied with action taken reducing the fees paid receivers the closed American Bank and Trust Company, Sherlock Bronson. of the receivers, yesterday challenged the city to open the matter and try to obtain as much by legal means as the receivers given Bright was quoted yesterday as that he was not invited hearing on the petition for reduction the fees, and that his first knowledge of the reduction should come from newspapers. Bronson Answers Statement have just read in the afternoon statement of Dr. Fulmer Bright, the mayor of the City in with the fees of the receivers of the American Bank and Trust Company. Mr. Bronsaid in letter written to James E. Cannon. city attorney, late yesterday
In an endeavor to adjust the situato the entire of City Richmond met your request for 25 per Dr. Bright not satisfied and feels in having the of testifying with this matter. if the newspaper report correct.
Asks Public Hearing "As you know, public hearing on my fee is exactly what want. and under the circumstances you not only have my but urge to set the matter for immediate hearing and disregard the decree entered by the court on permitting 25 per cent of their fees by In making public the contents of the letter last night, Mr. Bronson stressed the fact that the decree issued Judge Julien Gunn Circuit Court Thursday did not require the receivers return fourth their compensation for services in 1933, but only permitted them to do so in of their voluntary wish to grant the city's request for reduction.
20.February 13, 1934Richmond Times-DispatchRichmond, VA
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Magazine Editorial Commends Work of American Receivers
An editorial praising the work of receivers American Bank and Trust Company of Richmond appears in the current issue of Nation's Digest. Fees of $20,000 originally paid two of the three were reduced $15,000 percentage in the fee paid substituted In to the position of Mayor Bright, who termed the fees exorbitant, the Nation's Digest article states, in part: "What we feel is one the bright pages the history of efficient bank receivership work that made by Sherlock Bronson, Justin Moore and the Bank Commerce and Trusts, Richmond, Va., as receivers the American Bank and Trust Company, and Andrew D. Christian, counsel for the bank's receivers. The ceivership this bank conducted in thoroughly efficient and progressive manner has been of told value to its and feel that the will show still further and substantial general public has little realization the work volved in the proper conduct of the receivership of large institution order that its depositors may receive the very best possible results from its condition. "In of this, the attitude of citizens and Virginia generally, whether caused by desire or not, and of whether the appeal was made their intelligence the size the fees which were awarded by Judge Julien Gunn, absolutely unjust and unfair the fine work performed by the their counsel. such an attitude is become general this country will, of course, result men of the highest caliber and ability as well as institutions refusing refraining from having anything to do with the arduous task of straightening out the affairs closed which quires and capabilities of high degree. "In this editorial and our this the editor this publication that we are the sentiments all leaders who any knowledge of works receivers for large banking institution."
21.June 20, 1934Richmond Times-DispatchRichmond, VA
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Haddon to Ask Jury Probe Of American
Officers. Directors to Make Defense in Court: Depositors Will Meet June 26
Developments yesterday in the American Bank and Trust Company case, filing of the bank's which certain officers and directors were charged with negligence, includfor meeting depositors June to discuss plans less and by Attorney Haddon he would ask. fall. grand jury the bank's Meanwhile for officers and directors in stated that they would their court not newspapers, and asked the public and serve judgment until the can be thus presented and dealt
Swink Angus O. director the bank. and president the lantic Life Insurance Company prepared statement said: loss understand counsel the receivers bank and the receivers should bring my name into such adding loan the being curtailed regularly and will has for cirthe providing pooling their terests the purpose affording the purchase the stated by the Bank Depositors' Committee. in nouncing meeting next Tuesday night o'clock at the John Marshall School Expects Hart Unit Support Mr. Abbott made public the the group serving as bank follows: Simmons, Frank Rennie Henry Woody Wilbur Havens and Coleman Andrews. former State auditor of public George former State and Callon formerly sistant United States District Attorare serving as counsel for the committee Disclosing that his group has been the Depositors Committee
22.August 10, 1934Richmond Times-DispatchRichmond, VA
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Bank of Commerce Quits as Receiver
Liquidators Will Buy American's Building
Offers made by two directors of the closed American Bank and Trust Company pay $135,000 suits against them alleging negligence are dropped, were rejected yesterday Judge Julien Gunn on the ground that ceptance might release other direcare parties Judge Gunn. door all the direcby stating that the proper plan which the between the and the former officers and the bank would speedily and adjusted.
Depositors Might Lose
Judge his decision ruled accepted the interest the that bank would they might money by the action this court.' Luther Jenkins had offered pay and Walter surrender on Sams claims deposits against Some directors jointly and severally yesterday the Bank were resignation the Bank Commrce and Trusts the bank's granted Bank office Tenth Main for development was the Commonwealth's ney Gray Haddon, when asked comment editorial demands for prompt the bank case grand jury, would sevmore before he would institute such preceedDue other cases. Haddon said he not opportunity his full time an the until the the trial Legenza, Mais alleged gangsters now under indictment for murder.
Lauds Wilson's Work
In tendering the bank's August John Wilson president the Bank and that "the most ficult the receivers have either worked out plans for their the affairs the receivers ized for the future routine liquidation that time with the inconvenience the and our the time our officers released for the direction of our own banking business Judge Gunn. accepting the wrote Mr. that "your untiring work strict
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23.November 9, 1934Richmond Times-DispatchRichmond, VA
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Court Ask May For Advice On Successor Bank
American's Receivers Seen Any Plan as Approving Depositors' Interest in
Richmond bankers to Views of new bank opegoing concern and American Bank and liquidate Trust Company through holding proposed by the corporation cessor bank depositors' committee terday sought by Judge Gunn learned last night that this was suggestion has made to court. In business was regarded probability that the court also would ask the views of the largdepositors of the closed bank, including the of the feasibility plan which recommends abolition of the present Meanwhile receivers of the Amerbank yesterday withheld comthe latest but persons close the pointed that are record having they in the of all the of the bank. plainly that the ceivers intend maintain neutral attitude in the pending fight giving opinion the bank if called upon Judge Gunn. There no desire the part of the receivers indicated. attempt influence the views of some The new bank plan contemplates purchase of closed bank's sets by the claims of the participating The depositors represented by George Allen and Callom has urged Judge Gunn make available common stock capital the proposed sum cash be paid by former directors the old bank settlement claims against embodied the two suits filed The $200,000 settlement expected
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24.March 19, 1937Evening StarWashington, DC
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POWHATAN OWNERS TO GET SALE OFFER The offer of the Roger Smith hotel chains of Stamford. Conn., to purchase the Powhatan Hotel here will be submitted to stockholders of the Powhatan Hotel Corp. within the next two weeks, Arthur J. Harnett. managing director of the hotel, said today. His statement was made in connection with negotiations in progress at Richmond for sale of the Washington hotel, which is owned largely by Richmond banks. Directors of the corporation met there yesterday. "The sale, if consummated, would involve about $650,000," Harnett said. "The offer cannot be accepted without the approval of stockholders. It will be submitted to them within two weeks. If approved, the sale will be completed immediately thereafter." Neither Harnett nor Sherlock Bronson, co-receiver of the defunct American Bank & Trust Co. at Richmond and president of the hotel corporation, would disclose other details of the proposed sale or the meeting. The Smith hotel chain's principal holdings are in New York.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
