7506. Union Bank (Franklinton, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 22, 1913
Location
Franklinton, Louisiana (30.847, -90.153)

Metadata

Model
gpt-5-mini
Short Digest
85a13e2c

Response Measures

None

Description

State bank examiner ordered the Union Bank closed (Sept 22–23, 1913) because of excessive loans; depositors were agitated (50 armed depositors guarded doors) but there is no clear report of a prior run. The bank was closed and appears to be undergoing liquidation; later articles discuss depositors' committee and liquidation matters. A separate receivership was appointed for Babington Brothers (a related firm), not explicitly the bank. Classified as suspension_closure because the bank was suspended by examiner and did not reopen in the available coverage.

Events (4)
1. September 22, 1913 Suspension
Cause
Government Action
Cause Details
Closed by State Bank Examiner W. L. Young because he considered it dangerous and hazardous on account of excessive loans; ordered closed without notice to directors.
Newspaper Excerpt
State Bank Examiner William L. Young and Assistant Robert H. Ward came last night and this morning ordered the Union Bank of this place closed.
Source
newspapers
2. September 23, 1913 Other
Newspaper Excerpt
Following the closing of the Union bank of Franklintown, La., 50 armed depositors stood guard at the doors to prevent any money being taken out. / The excitement occasioned by the suspension of the Union Bank has materially subsided if ever existed. A few persons were seen to make a demonstration by violent gesticulation and loud talking, but nothing serious occurred. (Articles note demonstrations and armed depositors.)
Source
newspapers
3. September 24, 1913 Other
Newspaper Excerpt
As an aftermath of the suspension of Union Bank, the real estate firm of Babington Brothers Limited ... has resolved to accept citation for an application for a receivership ... Robert Babington, formerly cashier of the crippled bank, has been appointed receiver under a bond of $15,000.
Source
newspapers
4. November 11, 1913 Other
Newspaper Excerpt
Depositors of the Closed Union Bank met yesterday afternoon to hear a report from a committee that previously had been elected to look after their interests. ... Complaint was expressed that expenses of liquidation were too much.
Source
newspapers

Newspaper Articles (6)
1. September 25, 1913 The Era-Leader Franklinton, LA
Article from The Era-Leader, September 25, 1913

Click image to open full size in new tab

Article Text

Franklinton, La., Sept. 25, 1913 The Era-Leader is authorized to announce Bascom D. Talley as a candidate for delegate to the Constitutional Convention from Washington Parish, in the coming Democratic Primary election, Oct. 14th. Franklinton Bank Forced to Close. Franklinton, La., Sept. 22.-State Bank Examiner William L. Young and Assistant Robert H. Ward came last night and this morning ordered the Union Bank of this place closed. The bank operated a branch at Hackley, which was ordered closed with the parent bank. Mr. Young gave as his reason for closing the bank that he considered it dangerous and hazardous an account of excessive loans. No regularities are expected to be found and it is believed that if the bank is conservatively liquidated that the depositors will be paid in full. Steps will be taken to endeavor to reopen the bank immediate ly by getting other interests to take over the assets and pay the depositors. This will save the delay of a regular liqidation proceeding. The bank officials are H. B. Magee, president, J. S. Brock Jr., active vice president, S.H. Burris and F. M. Brown, vice presidents, Robert Babington, cashier, W. S. Burris and J. H. Dickinson, assistant cashiers. The Union Bank was formed by the consolidation of the bank of Franklinton and the Farmers and Merchants bank the first of the year. The two banks are the oldest in the parish. Since the failure of the Bickham banks last May confidence wavered in the Union Bank, and it failed to get an increase of deposits that should came along at this season of the year. Franklinton, La., Sept. 23. The excitement occasioned by the suspension of the Union Bank has materially subsided if ever existed. A few persons were seen to make a demonstration by violent gesticulation and loud talking, but nothing serious occurred. Rumors prevail to the exten that at the time of organization of the Unian Bank by the inergink of the Farmers and Merchants Bank with the Bank of Franklinton, Examiner W. L. Young's suggestions were closely followed in every detail, including the acception of the portfolio of loans as it then stood. At that time the Babington interests aggregated some hundred thousand dollars, which amount was being carried by the bank of Franklinton; but on the merger this amount was reduced to about sixty thousand dollars. From February, the time of actual consolidation the two banks, no objection seemed to exist as to the Babington paper. But a short time ago the Babiugtons reduced their obligation $4,000. Apparently Mr Young was not aitogether satis. tied, for without notice, some directors state, he ordered the bank closed, giving thew no chance to make good any detier ency. The opinion expresse. among commercial wen is thise snap judgment had been tak by the bank xaminer having effect the DISTRUCTION of the ii

2. September 25, 1913 The Era-Leader Franklinton, LA
Article from The Era-Leader, September 25, 1913

Click image to open full size in new tab

Article Text

Babingtons Apply For Reciever. Franklinton, La., Sept. 24._As an aftermath of the sus pension of Union Bank, the real estate firn of Babington Brothers Limited, capital paid in $150,000, has resolved to accept citation for an application for a receivership, and H. Willis Magee, having a passed due claim of $3,100, has petitioned the district judge for receivership to liquidate, and Robert Babington, formerly cashier of the crippled bank, has been appointed receiver under a bond of $15,000. The liabilities of Babington Brothers, Limited, cannot be ascertained for a week, but the assets are stated to be $200,000, represented by holdings in reality, principally situated in Washington and St. Tammany Parishes. Believing that this place needs a bank founded on principles more conservative than heretofore exercised, business men are figuring on the prospects of or. ganizing a new bank in the event the present institution fails of rehabilitation,

3. October 2, 1913 The Farmington Times Farmington, MO
Article from The Farmington Times, October 2, 1913

Click image to open full size in new tab

Article Text

under 16 years of age, and their mother were burned to death as they slept in their home on St. Francis street, Quebec. Two girls were rescued. A theft of gold coin from the United States mint at San Francisco, which may reach into hundreds of thousands of dollars, has been discovered and federal secret service men called from Washington are working on what is believed to be the most extensive rob. bery since the same mint was looted of a fortune in gold bars a decade ago John Purroy Mitchel, fusion nominee for mayor of New York, accepted the Independence league offer to run as candidate of that party after the resignation of James Allen, its candi date. Lieut. Schulz, an army aviator, was killed by a 150-foot fall at Johannis thal, Germany. He was flying a mon oplane which turned turtle. Mrs. Etta McDonald, charged with shooting and killing her husband at Fort Worth, Tex., two months ago, was found guilty. Her punishment was fixed at two years in prison. The executive council of the American Federation of Labor asked Presi dent Wilson to aid in securing the im mediate passage of labor measures, in cluding the seamen's bill, the anti-in junction bill and the minimu mwage law. The New Orleans grand jury is in. vestigating the affairs of Smith Bros. Company, Ltd., who failed for a mil lion dollars after a flyer in coffee. Banks of that city demanded a probe, and indictments are expected. Thomas H. Troy of Brooklyn was made the guardian of Helen, Ruth and Marion Gaynor, minor daughters of the late Mayor William J. Gaynor. They inherit most of the $2,000,000 estate. Following the closing of the Union bank of Franklintown, La., 50 armed depositors stood guard at the doors to prevent any money being taken out. Wreckers tearing down the famous old mansion erected here 40 years ago by Col. Snell unearthed the body of a child buried in a starch box that had been skillfully concealed within the walls of the house. The wife of former King Manuel of Portugal, who was Princess Augustine Victoria, daughter of Prince William of Hohenzollern, was taken suddenly ill at Munich and was rushed to a private hospital. U. T. S. Rice, preacher-broker, who was indicted for embezzlement at Mattoon, III., pleaded guilty and was sentenced to the southern Illinois penitentiary for a term of one to ten years. The state department, on the request of Senator Sherman, asked the United States consul at Progresso, Mexico, to obtain full particulars of the murder of Victor East of Illinois, and have the body shipped to New York in a sealed casket. 81 Following the threat made by Rancho Villa to kill all the American officials, work has been discontinued f at the La Bouquiila dam project on the Conchas river, in Chihuahua. An agreement was reached on the tariff bill by the conference commit tee of the senate and house. On practically every detail the conferees are a in accord, except as to the Clarke a amendment taxing cotton futures. 1 a World grain crops, with the exception of wheat, will fall below the average of last year, according to the International Institute of Agriculture at e Rome. o f The Philadelphia Athletics won the h pennant in the American league by taking a double-header from Detroit, and will be the contenders, probably with the New York Giants, in the sea iies for the baseball championship of b the world, which will be played next C month. it King Constantine of Greece, who is visiting in England, made preparations for a hurried return to Athens. tl The Balkan situation is regarded by N the Hellenic government as very dis8) quieting. o M Accused of having swindled a large number of girl college students and many of Chicago's most prominent women, Miss Mabel Sturtevant, Mis m souri university graduate who won

4. October 3, 1913 McNairy County Independent Selmer, TN
Article from McNairy County Independent, October 3, 1913

Click image to open full size in new tab

Article Text

Eight children of Ulric Trudell, all under 16 years of age, and their moth er were burned to death as they slept in their home on St. Francis street, Quebec. Two girls were rescued. A theft of gold coin from the United States mint at San Francisco, which may reach into hundreds of thousands of dollars, has been discovered and federal secret service men called from Washington are working on what is believed to be the most extensive robbery since the same mint was looted of a fortune in gold bars a decade ago. John Purroy Mitchel, fusion nominee for mayor of New York, accepted the Independence league offer to run as candidate of that party after the resignation of James Allen, its candi date. Lieut. Schulz, an army aviator, was killed by a 150-foot fall at Johannisthal, Germany. He was flying a mon oplane which turned turtle. Mrs. Etta McDonald, charged with shooting and killing her husband at Fort Worth, Tex., two months ago, was found guilty. Her punishment was fixed at two years in prison. The executive council of the American Federation of Labor asked Presi dent Wilson to aid in securing the immediate passage of labor measures, in cluding the seamen's bill, the anti-in junction bill and the minimu mwage law. The New Orleans grand jury is investigating the affairs of Smith Bros. Company, Ltd., who failed for a million dollars after a flyer in coffee. Banks of that city demanded a probe, and indictments are expected. Thomas H. Troy of Brooklyn was made the guardian of Helen, Ruth and Marion Gaynor, minor daughters of the late Mayor William J. Gaynor. They inherit most of the $2,000,000 estate. An agreement was reached on the tariff bill by the conference commit tee of the senate and house. On practically every detail the conferees are in accord, except as to the Clarke amendment taxing cotton futures. Accused of having swindled a large number of girl college students and many of Chicago's most prominent women, Miss Mabel Sturtevant, Missouri university graduate, who won the distinction of being the "world's best scholar," was arrested in Chicago. Following the closing of the Union bank of Franklintown, La., 50 armed depositors stood guard at the doors to prevent any money being taken out. Wreckers tearing down the famous old mansion erected here 40 years ago by Col. Snell unearthed the body of a child buried in a starch box that had been skillfully concealed within the walls of the house. The wife of former King Manuel of Portugal, who was Princess Augustine Victoria, daughter of Prince William of Hohenzollern, was taken suddenly ill at Munich and was rushed to a private hospital. "No butter for dinner and all our mattresses gone!" was the wailing cry heard in Poughkeepsie, N. Y., raised by Vassar students over these two sacrifices to economy and hygiene. The state department, on the request of Senator Sherman, asked the United States consul at Progresso, Mexico, to obtain full particulars of the murder of Victor East of Illinois, and have the body shipped to New York in a sealed casket. Following the threat made by Rancho Villa to kill all the American officials, work has been discontinued at the La Bouquilla dam project on the Conchas river, in Chihuahua. A plot to assassinate the Japanese minister of foreign affairs, Baron Nobuaki Makino, and dynamite the foreign office has been unearthed by the police of Tokio. World grain crops, with the exception of wheat, will fall below the aver age of last year, according to the International Institute of Agriculture at Rome. Six hundred private houses and many commercial establishments were destroyed by fire at Ninguta, Manchuria. The Philadelphia Athletics won the pennant in the American league by taking a double-header from Detroit, and will be the contenders, probably with the New York Giants, in the series for the baseball championship of the world, which will be played next month. Rev. W. E. Pippin, a Baptist minister of Bentonvile, Ark., after pleading guilty to passing a worthless check on a member of his congrega tion, was sentenced to three years in the Arkansas centrentiary

5. November 15, 1913 St. Tammany Farmer Covington, LA
Article from St. Tammany Farmer, November 15, 1913

Click image to open full size in new tab

Article Text

BICKHAM CASE POSTPONED. I Depositors of the Closed Union Bank Hear Committee Report. Franklinton, Nov. 11.-A large number of depositors of the recently closed Union Bank met yesterday afternoon to hear a report from a com. mittee that previously had been elected to look after their interests. A vacancy on the committee occasioned by the resignation of Robert Babingto, was filled by the election of George Knight. Complaint was expressed that expenses of liquidation were too much. It was announced that as one of the clerks had resigned an expense for his salary would be :t-ssened. Advice Was freel: giv. 'n assist the special agent in obtaining the best prices for real -- at.. and other securities that bad ic 3.0 Mr. d to satisfy claims. The case against H. D. Birtham and 0 hera relating to matters invoiri..: the supension of banks at invie a:d your: Herman and the Com17-19. Lank of Bogalusa and 111. liea y damage suits were portponed.

6. December 10, 1914 The Era-Leader Franklinton, LA
Article from The Era-Leader, December 10, 1914

Click image to open full size in new tab

Article Text

Notice-No hunting with dog or gun on land of O. E. MORRIS. Mrs. J. L. Brock is suffering from a very severe attack of rheumatism. Miss Leona Stringfield who is teaching in Varnado, made a visit to the home people last week. Mr. and Mrs. G. W. Magee and Miss Lucille Magee spent Sunday and Monday in New Orleans. Miss Rachel Hutchinson, of Kentwood, whois teaching musicat Enon, spent Monday with Mrs. M. W. Ott. Mr. and Mrs. C. Ellis Ott, and Mr. and Mr. B. D. Talley of Bogalusa, were guests the tirst of the week of Mr. and Mrs. M. W. Ott. Mrs. W. M. Edwards, of BonAmi, came Saturday and will remain thru the Christmas holidays with her parents, Rev. and Mrs. C. T. Corkern. Wm. Magee, who is again strong and vigorous after his recent serious illness, spent last week in Hackley with his son and daughter-in-law, Mr. and Mrs. Milton Magee. A meeting of the stockholders of the Standard Land Co. Ltd., will be held at the office of the Company at Franklinton, La., on Monday, Jan. 11, 1915, for the purpose of voting on proposed ammendments to Charter. Robert Babington. Sec'y. Notice-The property tax for the Town of Franklinton is now due and will be delinquent Jan. 1, 1916, after which a penalty will be imposed. All property owners subject to Town Tax are-requested to settle on or before Jan. 1, 1915, and avoid the penalty. J. N. Simmons, Marshal. The Christmas spirit fairly beams OH you at the Boston Store and Mrs. L H. Magee's Milinery establishment, in both of which places the Christmas colors brighten up the whole scene as red bells and green garlands are artistically draped and festooned over head and on all sides. No pains have been spared in decorating these stores and the pleasing results seem to have more than justified the labor. One of the sequences of the suspension of the Union Bank which occurred fifteen months ago, was the closure of the store of Peoples Drug Co., and the at, tachment of its stock of goods and fixtures to secure the payments of notes that bore the endorsement of A. Fricke, Sr. Messrs Robert Babington and