74. Avondale Bank & Savings Company (Birmingham, AL)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 27, 1929
Location: Birmingham, Alabama (33.521, -86.802)

Metadata

Model: gpt-5-mini
Short Digest: 330d7775

Response Measures

None

Description

Avondale Bank & Savings Co. was taken into charge by the Alabama state banking department and closed; articles describe inability to realize on loans/frozen assets prompting the state takeover. There are reports of runs on other Birmingham banks (City Bank & Trust, Southside, Woodlawn) after Avondale's closing, but Avondale itself was closed by the state and does not appear to have reopened.

Events (1)

1. June 27, 1929 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State examiners found the bank forced to close because it could not realize on its assets/loans and lacked funds to meet immediate obligations; confidential audit prompted takeover by state.
Newspaper Excerpt: Avondale Bank and Savings company closed its doors and turned its affairs over to the state banking department.
Source: newspapers

Newspaper Articles (12)

1. June 27, 1929 The Birmingham Post Birmingham, AL

Article from The Birmingham Post, June 27, 1929

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AVONDALE SAVINGS AND CITY TRUST BANKS ARE CLOSED Two Institutions Cease Business Here Early ThursdayState Department Takes Over Avondale Institution While Run Causes City Firm To Close Three hours after the Avondale Bank and Savings company closed its doors and turned its affairs the over to state its banking doors. department, the City Bank and Trust company closed A run started on the City Bank and Trust company as soon as news of the Avondale closing spread and directors announced that the move was taken to the small protect depositors. Rodderick Beddow, director and attorney for the bank, said that the City bank was solvent and would pay "dollar for dollar. action was taken after an all night session of the board of directors. They decided that the connection of B. Lassiter with the City bank president and with the Avondale institution in the same capacity might start and result loss to the hundreds small depositors. Lassiter. the president both institutions, was reported to route from New York to Birmingham and was expected to arrive here Thursday night. On Tuesday night the directors of the City bank held another meeting and discussed the possibility of taking over the affairs the Avondale bank but decided that the loss would be too great, Beddow said. The directors summoned in session shortly after noon by Judge Thomas, state superintendent of banks. At the meeting was decided to place the bank the hands of the state banking department. After the meeting Judge Thomappointed G. Lockhart, vicepresident and cashier of the City bank, as liquidating agent. Judge Thomas appointed Mr. Lockhart immediately after the bank been taken over by the state banking department. Judge Thomas issued the following statement state banking department taken charge the City Bank Trust company and will begin an examination of the combooks Friday morning. have appointed G. C. Lockcashier and vice-president of bank, as agent for the state liquidating the bank's affairs. is my opinion that more than probably depositors will be paid in full. became necessary the bank when an unexpected run began absorbing the cash rapid rate. statement follow within few days. noon, police entered the City bank and herded customers the lobby out of building. The doors were then closed. large crowd began congregating and additional police from headquarters were sent to the scene to keep the crowd moving and prevent traffic jam. Officials said this was done protect the plate glass windows in the front of the building. The the two banks the first in Birmingham in more 10 say. the The City Bank Trust Co. few months and opened for business short Judge Thomas, state perintendent of and AssistFaucett were Birmingham and in charge of Avondale affairs. Statement Issued assistant state banks, who rived to take over the affairs of Avondale bank, issued the statement for Judge Thomas: Avondale Bank and Savcompany forced close the that could not realize on its enough money to care of the immedithe H. Howle and Daniel H. Thomas, examiners, making audit Thursday of the AvonThe state bank examiner's of in charge institution' affairs Confidential Audit confidential audit of the bank's books made state department ago. This report made public by the department today large gathered outside building of the spread over the Avondale Altho there was disorder, Chief of Police Fred McDuff sent two motorscouts to traffic moving. been

2. June 30, 1929 Sunday News Lancaster, PA

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Probe Closing Four Banks One President ond Accidentally Kills Himself Birmingham, Ala., July Affairs banks which closed day, bringing total of four the banking which failed open the Birmingham district wthin ten vestigation the banking tonight. searching parties redoubling their efforts the body Bell, president Woodlawn Savings Bank, the institutions which closed today. drowned morning Coosa River Vincent. Dr. Bell was reported have gone swimming with of friends shortly his country place for the The report the closing of the Woodlawn bank caused run on the Southside Bank which prompted ficials order its closed. Officials of the Southside Bank that closing was temporary and that would be open for business Monday morning. the spread throughout the district, mild runs started at other banks. Judge Thomas, state superintendent from Montgomery ing situation here. attributed the closing the Woodlawn and banks today runs precipitated closing of the two banks last week The banks closed last week were the City Bank Trust Company Bank and Company. of both New York hospital where news of the closing banks. John R. Wallace, cashier of the Avondale Bank and Savings Company the day before the bank closed bullet through his abdomen. said by members of his family to have when pishe was dropped the rendered verdict of accidental death

3. July 7, 1929 Evening Star Washington, DC

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Attorney General to Ask Solicitor to Organize Special Grand Jury. ATTEMPT TO REBUILD FINANCIAL STRENGTH President of Savings Institution That Shut Doors Drowns While in Swimming. By the Associated Press. MONTGOMERY, Ala., July 6.-Attorney General Charles McCall of Alabama, stated tonight that he would request Solicitor George L. Balls to move at once toward organization of a special Jefferson County grand jury to investigate the recent closing of the Avondaie Bank & Savings Co. and the City Bank & Trust Co. of Birmingham. The attorney general requested that "if possible, the grand jury be convened by July 15." He stated that he and two of the State's assistant attorneys general, Judge J. Q. Smith and Judge A. A. Evans, would participate in the investigation. State Officers to Direct Auditing. The attorney general released his statement shortly after Judge C. F. Thomas, State superintendent of banks, departed for Birmingham to personally direct the audit of the books of these two banks and the Woodlawn Savings Bank and the Southside Bank, which closed their doors today following heavy runs. Judge Thomas stated that he was prepared to remain in Birmingham indefinitely and that he would "exercise the powers of my office to the limit" in an endeavor to re-establish the banks on a firm financial basis. Asks Citizens to Co-operate. He admonished citizens of Birmingham not to become alarmed and requested that they co-operate with his department in its efforts to re-open the institutions. Steady withdrawals, failure to realize on frozen loans and the desire of the directors to conserve their assets resulted in the decisions to close the banks, Judge Thomas said.

4. July 7, 1929 The Galveston Daily News Galveston, TX

Article from The Galveston Daily News, July 7, 1929

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BIRMINGHAM'S FOURTH IN TEN DAYS FAILS TO By Associated Press. July fairs of two banks which closed today. total four banking Institutions which have district failed open the Birmingham past were under of state banking officials lonight their efforts to locate the body W. Bell, president the Woodlawn Saving Bank, one the which closed today. Dr. this Ing the River cent, Dr. Bell reported have In friends shortly rived at his country place for the The of the closing of the the Southside officials order doors Officials the Bank said that closing temporary and that the bank would open business Monday morning the spread throughout started other banks. halted most Instances when nounced that all withdraw their funds would wishing paid promptly. Judge Thomas, state take charge the closing of the Woodlawn Southalde Banks today precipitated by the closing the banks week The banks week were the Bank Trust Avondale Bank and Savings Company (Continued on Page Column

5. July 7, 1929 The Star Press Muncie, IN

Article from The Star Press, July 7, 1929

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Birmingham Has Flurry and an Investigation. Birmingham, Ala., July fairs of banks which closed day bringing total four banking institutions which have failed to open the district within the past ten days, were under investigation tonight. Meanwhile searching parties were doubling their efforts to locate the body of Dr. Bell, president of the Woodlawn Savings Bank, one institutions which closed today. drowned morning in Ceosa Vincent, Ala. He have party friends shortly country place for Runs on Other Banks. The report the closing of the Bank caused the Southside Bank which reported ficials ficials the said that closing temporary the bank for business Monday. Mild runs started other banks. The runs halted most when officials announced depositors wishing withdraw their funds would closed last the City Bank Trust Avondale Bank and Savings Company Lassiter. hospital, where ceiving news of the closing of the banks. Cashier Dead of Bullet Wound. John Wallace cashier of the and died the closed bullet his said members family accidentally inflicted pistol handling dropped the floor and discharged. Coroner Russum rendered verdict of cidental death. Plans for and opening the City Bank Trust today Woodlawn banks The City Bank had capital and the Avondale Bank

6. July 7, 1929 Tampa Bay Times St. Petersburg, FL

Article from Tampa Bay Times, July 7, 1929

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FOUR ALABAMA BANKS CLOSED State Department Investigates Situation in Birmingham July affairs of two banks which closed today. bringing total four banking institutions which have failed open in the Birmingham district within the past 10 days, were under investigation the state banking officials tonight. Meanwhile searching were redoubling their efforts to locate the body Dr. W. Bell, president the Woodlawn Savings bank. one the institutions which closed today. drowned this morning in the Coosa near Vincent, Ala. Dr. Bell was reported to gone in party of friends shortly after he at his country place for the week The report of the closing of the run on the Southside bank, which prompted officials its closed. Officials of the bank said that closing was temporary and that the bank would open for business Monday morning As the report spread throughout the district mild runs started other banks. The runs were halted in most when anthat all to their funds would paid promptly. banks post ed that they would remain open late tonight order those to withdraw deposits. Judge C. Thomas, superof banks, tonight from Montgomery to take charge of the banking He the the Southside banks today precipitated by the closing of the banks week. The closed last week were the City Bank company and the Bank and Savings of both institutions New York hospital where ter receiving news of the closing of John R. Wallace. cashier of the Avondale Bank Savings company. died the day before the bank closed from bullet wound through this abdomen, said by members his family ally inflicted when pistol he handling dropped to the floor and discharged Coroner Russum rendered verdict of accidental death. Plans for reorganization and opening of the City Bank Trust company completed today and Roderick member the board directors and attorney for the institution. more than the $250,000 stock proposed reorganized bank had been He said the bank reopen early next week. The Southside Woodlawn banks capitalized The City Bank had capitalization and the Avondale bank $25,000.

7. July 7, 1929 The San Bernardino County Sun San Bernardino, CA

Article from The San Bernardino County Sun, July 7, 1929

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START QUIZ BANKS CLOSED SUCCESS SEEN Cashier of One Institution Is Fatally Shot and President Of Another Bank Drowns Backers Optimistic Even Though $3,000,000 Spent and Loss For First Year Expected SUCCEED IN ENDING RUNS HOPE VOLUME WILL GROW State Official Takes Charge of Situation, Says Closing of Two Caused by Fear Associated Press) BIRMINGHAM. Ala., July fairs of two banks which closed today, bringing to total of four banking institutions which have failed open in the Birmingham district within the past 10 days, were under investigation of the state banking officials tonight. Meanwhile searching were doubling their efforts to locate the body of Dr. W. Bell, president of the Woodlawn savings bank, one of the institutions which closed today. Dr. Bell drowned this morning in the Coosa river near Vincent, Ala. He was reported to have gone in swimming with party of friends shortly he arrived at his country place for the week-end. Declare Closing Only Temporary The report of the closing of the Woodlawn bank caused run on the Southside bank which prompted officials order its doors closed. Officials of the Southside bank said that closing was temporary and that the bank would reopen for business Monday morning. As the report spread throughout the district, mild runs started at other banks. The runs were halted in most instances when officials announced that all depositors wishing to withdraw their funds would be paid promptly. Judge C. Thomas, state superintendent of banks, arrived tonight from Montgomery take charge of the banking situation here. He attriputed the closing of the Woodlawn Southside banks today to runs precipitated by the closing of the two banks last week. The banks closed last week were the City Bank and Trust Co., and the Avondale Bank and Savings Co. Lassiter, president of both institutions is in New York hospital where he collapsed after celving news of the closing of the banks. Cashier of Bank Shot to Death John R. Wallace, cashier of the Avondale Bank and Savings Co. died the day before the bank closed from bullet his abdomen, said by members his family to have accidently inflicted when pistol he was handling dropped to the floor and discharged. Coroner Russum rendered dict of death. Plans for reorganization and opening the City Bank and Trust Co. were completed today Roderick Deddon, member of the board directors and attorney for the institution, announced that more than $125,000 of the $250,000 stock proposed for the reorganized bank had been subscribed. He said the bank probably would reopen early next week. Southside and Woodlawn banks were capitalized $50,000. The City bank had capital of $50,000 and the Avondale bank $25,000. Fare Just Short of $350 and Official Admits It's High but Hopes for Reduction By CLINTON COFFIN (Associated Press Financial Writer) WASHINGTON, July Business history records few more daring ventures than that which culminates Monday when the Transcontinental Air Transport's big planes, one on each side of America, take to the air with full passenger loads inaugurate ocean-toocean service. More than $3,000,000 has been spent by the transport company before cent of return is obtained, and huge have been expended by both the Pennsylvania and the Santa Fe. Moreover, the are coldly calculating on taking regular and steady loss, running large daily totals, for least year in operation before business develops on which can be paid. More and Larger Planes Planned In spite of that outlook, and before public plane completes the scheduled jump, so certain are the transport of the public demand for the flying journey that negotiations have ready been opened for the acquisition of more and bigger planes augment the service. Paul Henderson, operating of hurried back to Washington this week from rehearsal flight over the route and has set the wheels turning for the enlargement. "Really, our transcontinental flying service starts Sunday," he said, "when the Pennsylvania passenger train pulls out of New York at with the passengers who transfer to our ship leaving Port Columbus at m., Monday. the eastbound plane parts from Angeles. Capacity the start limited to 10 passenday, and the last notice gers per have estimates that about 200 advance bookings have been made. Some them run clear ahead until October so that we are not yet guaranteed capacity loads for present equipment. Speed, Comfort Present Appeal "We can't tell yet how heavy the travel will be, but certain that speed and comfort will appeal Americans. At present the fare high, just short of $350, but can be cut when we get volume, which hope to do rather quickly. To show one advantage, on the trial trip, we dropped down from the high air to the transfer station Kingman, Ariz., with our passencool comfortable, and found ground temperature of 114

8. July 7, 1929 Evening star Washington, DC

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BANKS' CLOSING SPURS OFFICIALS Attorney General to Ask Solicitor to Organize Special Grand Jury. ATTEMPT TO REBUILD FINANCIAL STRENGTH President of Savings Institution That Shut Doors Drowns While in Swimming. Ala., July torney General Charles McCall of Alabama, stated tonight he would quest Solicitor George Balls to move toward organization of special Jefferson County grand jury investigate the recent closing of Avondale Bank & Savings Co. and the City Bank Trust Co. Birmingham. that possible, the grand jury be by July He stated that he and two of the State's assistant attorneys genJudge Smith and Judge Evans, would participate in the vestigation. State Officers Direct Auditing. attorney released after Judge Thomas, State banks, departed for Birmingham personally direct audit the books these banks and the Woodlawn Bank, which closed their doors today following heavy Judge Thomas stated that he remain indefinitely and would the powers office an the banks firm basis. Asks Citizens Co-operate. He of Birmingalarmed quested they department in its efforts to re-open the institutions Steady failure to realize frozen loans and the the directors sulted decisions close banks, Judge Thomas said.

9. July 7, 1929 The Springfield News-Leader Springfield, MO

Article from The Springfield News-Leader, July 7, 1929

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OFFICERS KILLED President of One Drowns, Cashier of Another Dies Of Bullet Wound By The Associated Press RIRMINGHAM. Ala., July 6.-Affairs of two banks which closed today, bringing total four banking institutions which have falled to open in the Birmingham district within the past ten days, were under investigation of the state banking officials. Meanwhile. searching parties doubled their efforts to locate the body of Dr. A. W. Bell, president of the Woodlawn Savings bank, one of the Institutions which closed today. Dr. Bell was drowned this morning in the Coosa river near Cincent, Ala. Dr. Bell was reported to have gone in swimming with party of friends shortly after he arrived at his country place for the weekend. Run Started The report of the Woodlawn bank closing caused a run on the Southside bank which prompted officials to order its doors closed. Officials of the Southside bank said that closing was temporary and that the bank would reopen for business Monday morning. As the report spread throughout the district, mild runs started at other banks. The runs were halted in most instances when officials announced that all depositors wishing to withdraw their funds would be paid promptly. Cashier Dies John R. Wallace, cashier of the Avondale bank and Savings company, died the day before the bank closed. from bullet through his abdomen, said by members of his family to have been accidentally inflicted when pistol he was handling dropped to the floor and discharged. Coroner J. S. Russum rendered a verdict of accidental death.

10. July 8, 1929 Transcript-Telegram Holyoke, MA

Article from Transcript-Telegram, July 8, 1929

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TRAGEDIES MARK BANK One Official Dies in River, Another from Bullet Wounds, in Alabama Four Are Now Closed. Ala., banks banks which closed Saturday, bringing total four institutions hich have open in the Birmingham district within the last days. under vestigation of the state banking offi- searching parties trying to locate the body Dr. Bell. president the Woodlawn Savings Bank. one the two Institutions which closen, Bell gone party friends after his for the The of the closing of the run on the Southside offiorder its Officials the Southside bank said that closing temporary report spread the district. mild started banks. were halted most when officials nounced that wishing withdraw their funds would be paid promptly state attributed the closing the Woodlawn and banks precipitated by closing the banks last week banks closed last week City Bank and Trust Co. the vondale Bank and Lassiter, president both institutions, New York hospital. where receiving news the closing of the banks John Wallace, the Avondale Bank and Savinga Co., died the day before the bank closed from bullet through his abdomen, said members his to have been accidentally tol he was handling dropped the floor and discharged. Coroner Russum rendered verdict dental Plans for reorganization and opening the City Bank and Trust completed Roderick Beddow, member the board of rectors attorney for the institution. that more than 000 the stock the reorganized bank subscribed. Southside and Woodlawn banks capitalized Bank had capital and the Avondale bank, $25,000. Joseph W. Grover. 53. proprietor the Elm Tree Tavern Greenfield. under bonds. Grover's arrest followed shooting of Edward Whalen Whitman July when some boys who were playing Fourth July pranks stopped in front of the tavern. Westboro's new town hall dedicated the 23rd. The structure white stone and brick, in colonial design and cost $150,000. four which would leave about necessary within the next two three Surplus Against this there now the treasury and remaining from bond issue for improvements can spent at the year. program of immediately neces. improvements as many of the projects. the fears. may have be financed by increases taxation rates forms of taxation the refusal the legislative chiefs to agree bond to finance needed hospital His fears ou this are because the financing the hospital program from will apfrom isting hospital made by the the plan the Republican leaders have advo.

11. July 8, 1929 The Valdosta Daily Times Valdosta, GA

Article from The Valdosta Daily Times, July 8, 1929

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BANK FAILURES UNDER PROBE Three Investigations Under Way Into Causes of Failures in Birmingham ANOTHER BANK CLOSES Birmingham. Ala., July banking situation in the Birmingham district was under a three way investigation by state and county officials today as the fifth bank within the past two weeks failed to open its doors The Leeds State Bank did not open for business today and its affairs placed in the hands of the state banking department following a heavy run Saturday. Judge C. E. Thomas, state superintendent of banks, stated that runs which caused two banks to close Saturday were precipitated by the closing of two other banks weeks ago. Attorney General Charlie S. McCall was conducting an investigation into the closing two weeks ago of the Avondale Bank and Savings Company and the City Bank and Trust Company. J. B. Lassiter, president of both concerns, collapsed in New York City when advised of the closing and still is in the care of physicians. Motor boats were searching (Continued On Page Seven)

12. July 9, 1929 The Daily Progress Charlottesville, VA

Article from The Daily Progress, July 9, 1929

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Potato Market Situation In Steady Banking Continues Alabama Investigated As Digging Eastern Shore of Virginia and Fifth Bank In Last Two Weeks Maryland Report Heavy Ship- fails to Open Doors. ments over Week-end. WASHINGTON July 9.-During the early part of last week. potato movement from the Eastern Shore of Virginia and Maryland averaged about 450 cars daily. but shipments of Friday and Saturday were as high as 600 cars each day. and total Eastern Shore movement for the week ending July 10 may be about 2.800 or 3,000 cars. Digging will be very active in Accomac County and in Maryland the coming week. The b. market held steady over the holiday. with best Cobblers still returning per barrel Norfolk Finished. Norfolk section is about finished. with only 260 cars expected during the week ending next Wednesday. Shipments from Oklahoma and Arkanses are rapidly decreasing and will soon be finished. First car has been reported from Missouri Kansas should begin this week. and Kentucky is slowly getting under way. The first complete report on potato acreage and estimated production in all States will be issued next Wednesday, July 10th. at o'clock. BIRMINGHAM July The banking situation in the Birmingham district was under three way investigation by State and county officials yesterday as the fifth bank within the past two weeks failed to open its doors. The ds State Bank did not open for business today and its affairs placed in the hands of the State Banking Department following a heavy run Saturday. The bank capitalized at $25.000 and had a surplus of $25.000 Judge C. E. Thomas. State superintendent of banks who arrived yesterday to supervise the investigation of the banking department stated that runs which caused two banks to close Saturday were precipitated by the closing of two other banks two weeks ago. Attorney General Charlie C. McCall was conducting a personal investigation into the simultaneous closing two weeks ago of the Avondale Bank and Savings Company and the City Bank and Trust Company. J. B. Lassister. president of both concerns collapsed in New York City when advised of the closings and still is in the care of physicians. Motor boats were plying the waters of the Coosa river at Vincent. Ala, searching for the body of Dr. A. W. Bell. president of the Woodlawn Savings Bank which closed Saturday. Dr. Bell was reportel to have drowned a few hours after the bank closed.