7616. Colonial Bank & Trust Company (New Orleans, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
November 23, 1908
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
040fb082

Response Measures

None

Description

No article describes a depositor run or withdrawals. Court actions led to appointment of receivers (Nov 23, 1908) due to improper/unsafe loans and alleged insolvency; subsequently the Louisiana supreme court (Jan 20, 1909) set aside the receivership judgment and sanctioned liquidators to wind up the institution. Outcome indicates closure/liquidation rather than reopening as an operating bank.

Events (2)

1. November 23, 1908 Receivership
Newspaper Excerpt
In the civil District Court to-day Judge St. Paul named receivers for the Colonial Bank and Trust Company and set aside an order appointing liquidating commissioners for the institution. The character of loans made and the extent, of collateral accepted for loans made to officers of the bank were criticised by the court.
Source
newspapers
2. January 20, 1909 Other
Newspaper Excerpt
The supreme court of Louisiana today set aside the judgment of the lower court, appointing receivers for the Colonial Bank and Trust company of New Orleans... Today's decision sanctions the action of a majority of stockholders in selecting liquidators to wind up the affairs of the institution.
Source
newspapers

Newspaper Articles (10)

Article from The Montgomery Advertiser, November 7, 1908

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Article Text

ACCUSES - BANK MEN CHARGES ARE PREFERRED IN NEW ORLEANS. Stockholders of Colonial Company Declare President Friedrichs And Others Have Been Guilty of Improper Conduct. / of New Orleans, Nov., 6-Charges improper conduct and other offenses on the part of President G. P. Friedrichs and other officers of the Colonial Bank and Trust Company of New Orleans were made by Joseph Rittenberg and Abraham Hurwitz, two of the stockholders, who filed a petition in the civil district court today asking that liquidators recently named be set aside and that receivers be appointed to take over and investigate the affairs of the concern. It is alleged that loans made to the friends of the officers of the bank were not properly secured. A further charge is made to the effect that the bank is heavily indebted to the Hanover National Bank, the Chase National Bank and the Continental National Bank of New York, in a sum exceeding $100,000 which results, from paper which as a whole is worthless. and that the money realized from the re-discounting of this paper was used by the directors and their allies, and thus misapplied and diverted. President Friedrichs declined to issue a statement tonight. He said his answer would be made a matter of public record tomorrow or very soon.


Article from The Birmingham Age-Herald, November 7, 1908

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Article Text

CHARGES AGAINST BANK OFFICIALS New Orleans, November 6.-Charges of improper conduct and other offenses on the part of President G. P. Friedrichs and other officers of the Colonial Bank and Trust company of New Orleans were made by Joseph Rittenberg and Abraham Hurwitz, two of the stockholders, who filed a petition in the civil district court today asking that liquidators recently named be set aside and that receivers be appointed to take over and investigate the affairs of the concern. It is alleged that loans made to the friends of the officers of the bank were not properly secured. A further charge is made to the effect that the bank is heavily indebted to the Hanover National bank, the Chase National bank and the Continental National bank of New York in a sum exceeding $100,000, which results from paper which as a whole is worthless and that the money realized from the rediscounting of this paper were used by the directors and their allies and thus misapplied and diverted. President Friedrichs declined to issue a statement tonight.


Article from Bryan Morning Eagle, November 8, 1908

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Article Text

Officers File Answer. New Orleans, Nov. 7.-Officers of the Colonial Bank and Trust company, who are named in the suit of stockholders asking for a receivership for the concern, appeared in court and filed an answer to the allegations set forth in the petition. The petitioners charge the bank is insolvent to the extent of several hundred thousand dollars.


Article from Bryan Morning Eagle, November 8, 1908

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Article Text

Improper Conduct Charged, W Orleans, Nov. 7.-Charges of oper conduct on the part of Prest G. P. Freidrichs and other offi01 the Colonial and Trust company ew Orleans were made by Joseph inberg and Abraham Hurwitz, two 1e stockholders, who filed a petiin the district court asking that lators recently named be set and that receivers be appointtake over and investigate the TS of the bank.


Article from The Montgomery Advertiser, November 10, 1908

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Article Text

Case is Postponed. New Orleans, La.. Nov. 9.-In the civil district court today the hearing in the case of petitioners asking for a receivership of the Colonial Bank and Trust Company was postponed until tomorrow. The petitioners charge misconduct on the part of the bank off. cials.


Article from The Birmingham Age-Herald, November 10, 1908

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Article Text

Receivership Case Postponed. New Orleans, November 9.-In the civil district court today the hearing in the case of petitioners asking for a receivership of the Colonial Bank and Trust company was postponed until tomorrow. The petitioners charge misconduct on the part of the bank officials.


Article from New-York Tribune, November 24, 1908

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Article Text

RECEIVER FOR A NEW ORLEANS BANK. New Orleans, Nov. 23.-In the civil District Court to-day Judge St. Paul named receivers for the Colonial Bank and Trust Company and set aside an order appointing liquidating commissioners for the institution. The character of loans made and the extent, of collateral accepted for loans made to officers of the bank were criticised by the court.


Article from The Montgomery Advertiser, November 24, 1908

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Article Text

RECEIVER IN NEW ORLEANS. Court Criticises a Colonial Bank and Trust Company. New Orleans, Nov. 23.-In the civil district court today Judge St. Paul named receivers for the Colonial Bank and Trust Company and set aside an order appointing liquidating commissiorers for the institution. The character of loans made and the extent of collateral accepted for loans made to officers of the bank were criticised by the court in passing judg. ment.


Article from The Birmingham Age-Herald, November 24, 1908

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Article Text

Order Is Set Aside. New Orleans, November 23.-In the civil district court today Judge St. Paul named receivers for the Colonial Bank and Trust company and set aside an order appointing liquidating commissioners for the institution. The character. of loans made and the extent of collateral accepted for loans made to officers of the bank were criticised by the court in passing judgment.


Article from The Birmingham Age-Herald, January 21, 1909

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Article Text

Receivers Knocked Out. New Orleans, January 20.-The supreme court of Louisiana today set aside the judgment of the lower court, appointing receivers for the Colonial Bank and Trust company of New Orleans, on motion of certain stockholders who charged mismanagement of the bank's affairs. Today's decision sanctions the action of a majority of stockholders in selecting liquidators to wind up the affairs of the institution.