6f6afb2dFull suspension, Books examined
Other: Affairs turned over to state banking department; grand jury investigation later found irregularities and large indebtedness of president.
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TWO BIRMINGHAM BANKS ARE CLOSED AFTER HEAVY RUNS (By Associated Press) banks closed doors today following heavy of deposits by officials the closing ten days ago of other bankinstitutions here. The Woodlawn Bank closed this morning with the announcement that funds were not available to meet and Its affairs turned over state banking Southside Bank closed the that H business Monday morning. The latter closed, of heavy withdrawals following closing of the Woodlawn Bank
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BANKING SYSTEM OF STATE SOUND, ASSERTS THOMAS Institutions On Safe Foundation, Says Superintendent; Blames Publicity MONTGOMERY Ala., July "There is no need for alarm over the banking system Alabama,' Judge Thomas, state superintendent banks, said Saturday. 'runs' are caused by undue ment that much publicity caused. safe and run and sound am coming Saturday evening will stay there the situation has officials of each of the banks that and some them the Woodlawn Bank due number heavy loans that could not quickly convert into cash avoid the rush of the depositors withdraw their money. This however, should no bank with other banks the city when he became member of the Board of Revenue. Woodlawn Bank Is Closed As Safety Plan The Woodlawn Bank, 5502 First Avenue, North, closed its doors Saturday morning opened for but withdrawurday als several large closed order of Dr. A. W. Bell. president. Withdrawals of large accounts had been going the bank for the last teller week, the bank. said, was deemed added, small depositors by closing Miss Gribbon, cashier, belief the bank and the would for Deposits was sudden rush on the bank," Mr. Robertson said. "Throughout the week large depos. itors have been withdrawing their funds several others Saturday the only thing to do Judge Thomas, state superinformed of its closing said H. state examiner number of of perience, would charge of the of the The forced to close cause many outstanding loans that could not be converted ready cash, Judge Thomas The bank organized November, 1914 stock of and of the Dr. are Dr. Wallace, H. Nesbitt and In connection on small H. the directors, the End Bank opendoors at regular hours Saturmorning. There small the but all depositors paid full as they called for their and maining left the confidence that the bank closes its doors Saturday. but in to reassure the public that the bank and in safe the Saturday Continued on Page Sixth Column
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Tragedies Accompany Bank Runs President of Alabama Institution Drowns in River STATE TAKES CHARGE Situation Is Complicated as Depositors Elsewhere Ask for Cash of banks which closed today ing to total four banking institutions which failed open the Birmingham district within the past ten days, investigation of the State Banking officials tonight. parties doubling efforts locate the president of the Savings Bank the which closed drowned morning the Coosa River near Dr Bell reported gone in friends arrived his country place for the The report of the closing of the Woodlawn Bank Southside which prompted ficials order closed Officthe said that closing was that the would be open for business Monday As the spread throughout the district, mild runs started other banks. The runs halted in most instances announced that wishing funds they paid promptly Several banks that they would main open tonight necessary in oirder to accommodate those seeking to withdraw deposits Judge Thomas, State superintendent of situation here He attributed the of Woodlawn and Southside today to runs cipitated by the closing of the two banks The banks closed last week the City Bank and Bank Savings Company both New hospital where collapsed after receiving news of the closing John cashier of the Avondale Bank and Company died the day before bank closed from bullet his abdomen. said by members been inflicted pistol he was handling dropped to the floor discharged Coroner Russum rendered verdict of accidental Plans re-organization and reopening of the City Bank Trust Company were today by Roderick the board for tution He probably would reopen early next week
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INVESTIGATION Failures Yesterday Bring Total in Ten Days to Four, Other by to Pay. Associated Press. July banks which closed bringing to total four institutions which failed in the Birmingham district last under investigation of the officials tonight. Meanwhile searching parties were doubling their efforts to locate the Dr. Bell, president Woodlawn Bank, of institutions which closed today. Bel this morning Coosa River near Vincent, Bell was reported to gone party of friends after his Run Closes Bank. report of the closing of the Bank caused South Side bank, which promptofficials order its doors closed. Officials the Southside Bank closing temporary and bank would reopen for business Monday morning. the report spread throughout district, runs started other banks. The runs were halted most when officials nounced that all depositors wishing withdraw their funds would promptly. Judge Thomas, State Supertonight from to take the banking situation here. He tributed closing of WoodSouthside banks today precipitated by the closing of banks week. Banks Closed Last The banks closed last week were City Bank and Trust Company Avondale Bank and Company. Lassiter, president of both institutions, York hospital where lapsed after receiving of the closing banks. John cashier the Bank and Comdied the day before the bank closed from bullet through abdomen, said by members his family accidentally flicted when pistol he dropped to the floor and dis-
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FOUR BANKS CLOSED falled the Birmingham district within the past days under investigation the banking officials tonight arching doubling their locate body president DE with party shortly arrived of friends for the week his country end. of the closing of the report Woodlawn bank caused run on the Southside which prompted officials to order its doors closed of the Southside bank closing temporary and that would for that the bank Monday morning the spread throughout district started the banks The nounced that all depositors withdraw funds would promptly
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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.
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Alabama Officials Start Banking Probe Of Two Banks Newly Closed Total Of Four Failing To Open Within Past Ten Days Calls For Action; Officials Of Two Meet Death Birmingham. Ala., July Affairs of two banks which closed tobringing total four banking which have failed to open the Birmingham district within the days, were under Meanwhile state banking officials investigation tonight. searching parties were to locate the body of Dr. president of the Woodlawn Savone of the institutions which today, who drowned this mornthe Coosa River. Bell was reported to have gone in swimming with party of friends shortly after he arrived at his country place for the week end. The report the closing of the Woodlawn Bank caused run on the Scuthside bank which prompted officials to order its doors closed. Officials of the Southside bank said that closing was temporary and that the bank would be open for business Monday. Mild Runs Checked As the report spread throughout the Continued Page 10D; 6th Column on
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ALABAMA BANKS CLOSED; CAUSES STATE SCRUTINY Four Institutions in Birmingham Area Fail to Open Past Week TRY TO PREVENT "RUNS" BIRMINGHAM, Ala., July of two banks which closed Saturday, bringing to total four banking institutions which have failed to open in the Birmingham district within the past ten days, were under investigation of the state banking officials Saturday night. Meanwhile searching parties were doubling their efforts to locate the body of Dr. W. Bell, president of the Woodlawn Bank, of the institutions which closed Saturday. Dr. Bell was drowned Saturday morning the Coosa river near Vincent, Ala. Had Been Swimming He was reported to have gone in swimming with party of friends after he arrived at his country place for the weekend. The report of the closing of the Woodlawn bank caused on the Southside bank which prompted cials to order its doors closed. Officials of the Southside bank said that closing was temporary and that the bank would for business re-open Monday morning. "Runs" Halted As the report spread throughout the district, mild runs started other banks. The runs were halfed most instances when officials announced that all depositors wishing to withdraw their funds would paid promptly. Judge Thomas, state supt., banks, arrived Saturday from Montgomery to take charge of the banksituation here. He attribuited the closing the Woodlawn and Southside banks runs precipated by the closing of the two banks last week.
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FIFTH BANK TO CLOSE DOORS IN LAST TWO WEEKS LEEDS, Leeds state bank failed to open its doors today. Officials announced that the affairs of the institution had the state banking department after heavy deposits Saturday The Leeds bank was fifth the Birmingham district Lindon the institution which at and had surplus similar amount. Ala., July Affairs two banks which closed Saturday, bringing four banking which in the disthe past 10 under of the state banking parties are the the institutions which who drowned morning in the Coosa Dr. Bell was reported to have swimming with friends shortly after be arrived place for the The report the closing the bank caused the bank. which prompted ficials order doors closed. Officials the Southside closing temporary and the would be open for business day As the report spread throughout the runs were started banks. The most instances when officials anthat all to their funds would promptly The banks closed last week were the City Bank company the Avondale Bank Savings pany. Lassiter, president both New York hospital where after receiving news of the closing the banks. John Wallace, cashier of the Avondale Bank Savings died the day before the bank closed bullet through his abdomen, members his family to have been inflicted when the floor and Coroner Russum rendered verdict of accidental death. Plans for reorganization and opening the City Bank completed and Roderick member the board and attorney the that than $125,000 of the $250,000 stock proposed for the reorganized bank been Southside and Woodlawn banks were at The band had capital $500,000 the Avondale bank $25,000.
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INFINE CONDITION, THOMAS ASSERTS Institutions Are In Substantial Shape, June Call Shows, Says Examiner THOSE IN SUBURBS DOING USUAL RUN OF BUSINESS Conditions Again Normal, Say Reports From Different Sections Of City MONTGOMERY. Ala., July 8-Reof the state bank call made 29 are very encouraging and banks of the state are in substantial shape, Judge C. E. Thomsuperintendent of banks, his return here Monday from Birmingham. reports indicate that all Birmingham and Alabama substantial shape and we exmore of the restlessness that prevailed in Birmingham banklast week," Judge Thomas closing of the Bank of Leeds the result its failure to realize enough ready cash from its assets the rush of Saturday solvent, and will depositor dollar for dolOther banks in that section are provided for any emergency, but be no recurrences the rushes of in the and Southside Banks, and reports are encouraging The resident of the Southside Bank reopen that bank and we with him as far as the of the state will per this reports of the City and Avon. banks have been delayed beexaminers were called back but we hope to have sometime this week. glad to hear that all Birmingham banks reported normal Monday morning. and feel the people will be patient for that two or possibly three banks will reopen. Thomas indicated that an of funds had poured into City since runs started Woodlawn Bank Savings and the Southside Bank Saturday morning. He expressed himself highly satisfied with work of the examiners as. signed take over the affairs of the There more money available Birmingham now than there has years," Judge Thomas enough to care for any and demands. The banks weathered little caused by deposSaturday well and do not anfurther restlessness Banks In Suburbs Report "All's Well" BY ANDREW W. SMITH Birmingham's suburban were operating Monday under apparently conditions. There appeared to be no recurrence the slight flurry among depositors. which Saturday followed closing of two institutions. The Southside the Woodlawn Banks, which closed Saturunder supervision of Judge E. Thomas. state superintendent president of the Southside Bank. said bank would reopen as soon as public got over its state ex. while Margaret Gribbon, of the Woodlawn bank, prethe depositors of that bank be repaid dollar for dollar. Monday of suburban banks in Greater Birmingham found open for business and reno abnormality. A number of banks reported that money withSaturday placed back in Page First Column
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Finds in Defunct By the The Jefferson County grand returned partial report activities in investigating practices Birmingham day. The report were the method handling defunct Woodlawn Bank. It declared Dr. president of the bank, found to have been indebted the extent of "many dollars" to the bank. Dr. drowned swimming Coosa River here hour before the bank closed its doors result heavy His death nounced accidental by the The report did not mention result the grand jury's gation concerning three banks in the district which closed early this month. Quash Under MARION July Charles Mitchell of West fort, took under advisement fense motion to quash an ment against Huff. charged the death Lorene year-old Herrin school through an alleged illegal tion June, 1926. Judge said he would rule on the Aug.
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'Drowning' of Bank President Are Found in Failure of Bank Charges Are Made in Montgomery That Head of Wasn't Victim of Accident. Ala., July Charges made today partial the Jefferson county grand irregularities' defunct bank followclosely here attorney determine president of bank. as his confirmation of ports Attorney Charlie McCall independent investiga Bell did that suicide body thrown in The paper said its formation disclose the basis inquest was that Bell July while with friends and within hour his bank forced coroner has returned on the He closeted the grand began which to the closing of up five the report to McCoy. had there irregular of funds the report said estate Dr. Bell indebted the The that Wilkinthe bank. of any assets from Bell estate. The grand the after Howle, state bank examiner. was allow their the Woodlawn accounts. indication when the complete report will be pre- records and are earndaily funds "Obie" great delight commenting amusing incidents their flight. Jackson described message snoring. snoring again." he wrote. am place between this sleeping 'Obie. Can't tell which noise, easily tell them apart because vibrates more speed. The flight the already has the army Mark aloft 150 hours in the spring the year. They the world record 246 hours. only few weeks by nearly 100 103 ahead the Billionthe in two are attempting to set PLANE IS STILL ALOFT Houston. Texas, July time air made this endurance flight the City, which had been aloft 227 hours at The refueling ship, called the Flying Milk Wagon. by Lieutenant national 50 gallons gasoline the big and standstill made unusually low altitude of 300 feet the airport, which the close since barograph ran the of the Houston bad two official observ check endurance fliers has granted by the National Aeronautical The weathered sharp which lasted two and a half hours, today. FLIERS MARK Pilots Captain night completed fourth day endurance refueling flight. they had been in the 102 hours.