Merchants Bank & Trust Company (Jackson, MS)

Episode Information

Episode Type
Suspension → Closure
Start Date
April 8, 1933
Location
Jackson, Mississippi (32.299, -90.185)
Bank Type
trust

Metadata

Episode ID
Bank ID
City ID
280711543
Model
gpt-5-mini
Short Digest

Notes

Bank closed April 1933 and entered liquidation under state supervision; RFC loan used to pay depositors.

Events (4)
1. April 8, 1933 Suspension
Cause
Government Action
Cause Details
Placed into liquidation and taken under state supervision by the superintendent of banks/receiver
Newspaper Excerpt
On April 8, 1933, the institution's liquidation began under J. S. Love, state superintendent of banks
Source
newspapers
2. April 8, 1933 Receivership
Newspaper Excerpt
The money then will be available to J. T. Brown, receiver for the Merchants Bank and Trust company; liquidation began under J. S. Love ... through James L. Berry as liquidating agent On April 8, 1933, the institution's liquidation began ... and under direction and supervision of Judge Stricker. Chancellor ... appointed ... receiver for the old Merchants Bank and Trust company here (1935).
Source
newspapers
3. December 9, 1933 Other
Newspaper Excerpt
RFC Office Says New Orleans Branch Will Advance Merchants Bank Money the loan will be placed to the credit of the bank's receiver by the New Orleans loan agency. The money then will be available to J. T. Brown, receiver for the Merchants Bank and Trust company. work of checking in the collateral of the Merchants bank was begun Friday ... in preparation for payment of a $3,030,000 liquidation loan. checks aggregating $2,500,000 will be ready for distribution ... by the Merchants Bank and Trust Company of Jackson which closed last April (Feb 14, 1934).
Source
newspapers
4. February 14, 1934 Other
Newspaper Excerpt
$2,500,000 To Be Paid Depositors ... checks aggregating $2,500,000 will be ready for distribution Monday by the Merchants Bank and Trust Company of Jackson which closed last April.
Source
newspapers

Newspaper Articles (8)
1. December 9, 1933 Clarion-Ledger Jackson, MS

Article Text

LOAN PAYMENT IS DUE SOON RFC Office Says New Orleans Branch Will Advance Merchants Bank Money Jackson's $3,030,410 Christmas present drew a step nearer yesterday as Washington officials of the Reconstruction Finance Corporation dispatched to state banking officials details of the procedure to be followed in clearing the loan through which 75 per cent of the depositors in the closed Merchants Bank and Trust company will be paid. Directing an extra force of 10 or 12 checkers, State Bank Superintendent J. S. Love told the Clarion-Ledger last night that his department rapidly is completing all necessary preliminary work and that he will have a definite idea of just when all channels will be cleared after studying instructions from Washington today. The instructions were sent by air mail in an effort to have all details of the loan cleared up so Jackson depositors will have their money by Christmas. Actual transfer of the funds, it was explained by Washington RFC officials, will be made by the New Orleans loan agency, the loan having already been approved by Washington and proper authorization having been sent to New Orleans. Estimating that something less than two weeks will be necessary to get through all "red tape", Washington officials pointed out that the loan will be placed to the credit of the bank's receiver by the New Orleans loan agency. The money then will be available to J. T. Brown, receiver for the Merchants Bank and Trust company.

2. December 9, 1933 Clarion-Ledger Jackson, MS

Article Text

Estimating that something less than two weeks will be necessary to get through all "red tape", Washington officials pointed out that the loan will be placed to the credit of the bank's receiver by the New Orleans loan agency. The money then will be available to J. T. Brown, receiver for the Merchants Bank and Trust company. State Banking Superintendent Love said last night his extra crew would carry on a day-and-night program of checking the bank's notes and other assets by way of speeding up the transaction "in every way possible." He will contact the New Orleans RFC group just as soon as he has worked out a course from the Washington instructions due to arrive today, he said, and added that the banking department "is bending every effort to make the money available to Jackson depositors before Christmas." Out of the loan, $630,000 is to be applied to preferred depositors, $430,000 to bills payable and approximately $2,000,000 to common depositors, Love estimated.

3. January 11, 1934 Sun Herald Biloxi, MS

Article Text

WALKER ENTERS PLEA OF GUILTY (Continued from first page) Walker, but suspended 9 months pending the defendant's good behavior. The only other matter taken up at today's session was relative to penitentiary sentences imposed earlier in the week upon Bill Cruthirds and Harry Jackson, each of whom had been sentenced to a year in the state penitentiary following their pleas of guilty to a charge of burglary and larceny in connection with a theft of some cash and cigarettes from the Gulfport municipal pavilion. Recalling the two before him, Judge White told Jackson that he had decided to recommend to Governor Conner the suspension of 6 months of the sentence imposed upon him, but informed Cruthirds that he could not follow this course regarding his sentence due to the latter's having already served a two-year penitentiary sentence. With only one case on the docket remaining for trial or disposition otherwise, it was apparent today that court would adjourn for the term, although it was a scheduled three week term. Jurors summoned for service next week are already being notified that they need not report next Monday, it was announced by court authorities as this will be the final and concluding week of the term. The lone remaining case for disposition at this term is that of Milton Marshall and Buddy Rushing, charged jointly in an indictment with burglary and larceny in connection with the theft of some gasoline. Rushing has already entered a plea of guilty to the charge when arraigned earlier in the term, but Marshall entered a plea of not guilty. LAUREL SEES ENOUGH FUNDS IN SIGHT TO PAY ALL BILLS Laurel, Jan. 11.—Addition of $13,500 to the city treasury is anticipated soon as a result of the Mississippi supreme court's final decision in the case of Pearl River County vs the Merchants' Bank and Trust Company of Jackson, which declared that amount of Laurel school funds impounded when the bank suspended several months ago a preferred claim. "Our financial ills will be cured when we receive that money," stated Mayor G. W. Hosey. "As we stand now, with the $13,500 the city can clear all its bills and will only have to look out for current expenses." COOLEY IS COUNTY AGENT Grenada, Jan. 11.—The Grenada County Board of Supervisors has appointed J. L. Cooley as county agent for this year. Mr. Cooley since Oct. 1, last, has been emergency agent in Grenada county, Grenada county having been without the services of a regular agent since January, 1929. Legal Notices 68 Department of Justice, Division of Investigation, 500 Baltar Bldg., New Orleans, La., January 11, 1934. Notice is hereby given that one Chevrolet coupe automobile, motor No. 1100295, will be sold at public auction to the highest bidder, for cash, at Shorty's Tire Service, Gulfport, Miss., on January 22, 1934, at 2:00 p.m., as provided in Section 3460, United States Revised Statutes. W. K. Bruner, Deputy Collector of Internal Revenue. advg11 1t Department of Justice, Division of Investigation, 500 Baltar Bldg., New Orleans, La., January 11, 1934. Notice is hereby given that one Ford coupe automobile, motor No. 1827782, will be sold at public auction to the highest bidder, for cash, at Shorty's Tire Service, Gulfport, Miss., on January 22, 1934, at 2:00 p.m., as provided in Section 3460, United States Revised Statutes. W. K. Bruner, Deputy Collector of Internal Revenue. advg 11-1t

4. January 14, 1934 Clarion-Ledger Jackson, MS

Article Text

First National Will Pay $118,113 March 1; Check Of Merchants Bank Rushed Another welcome credit on the Mississippi credit ledger was the announcement yesterday, of the pending distribution of $118,113.03 to 4,000 depositors of the closed First National Bank of Jackson. The dividend is expected to be paid about March 1, and represents a 7 per cent distribution and is the third dividend to be paid by the bank which closed January 17, 1931. Meanwhile the thousands of depositors of the closed Merchants Bank and Trust Company of Jackson, were anxiously waiting word from New Orleans where the assets of the closed bank are being checked by agents of the Reconstruction Finance corporation in preparation for payment of a $3,030,000 liquidation loan. J. S. Love, state superintendent of banks, announced last night receipt of a message from the New Orleans RFC that a crew of ten experts will begin work this morning in an effort to speed payment of the approved loan. Work of checking in the collateral of the Merchants bank was begun Friday, and so far RFC officials have requested that only a few minor changes be made, Superintendent Love said. The checking in is expected to be completed Tuesday and "we should know just how we stand then," the bank official explained. "Whatever

5. February 14, 1934 Sun Herald Biloxi, MS

Article Text

$2,500,000 To Be Paid Depositors Jackson, Feb. 14 (AP)—J. S. Love, state superintendent of banks, announced today that checks aggregating $2,500,000 will be ready for distribution Monday by the Merchants Bank and Trust Company of Jackson which closed last April. The sum represents full payment of all preferred deposits and 60 per cent of common funds in the bank which is being liquidated by the state banking department. Approximately 10,000 depositors will share in the distribution, which was made possible by a loan from the Reconstruction Finance Corporation.

6. November 1, 1935 Clarion-Ledger Jackson, MS

Article Text

MERCHANTS BANK RECEIVER DIES James L. Berry Will Be Buried Near Old Home at Prentiss James L. Berry, 52, receiver for the Merchants Bank and Trust company of Jackson, died at his Madison street residence late Thursday. Death followed an extended illness, Mr. Berry having been forced to bed July 5, and having lost ground steadily since that time. A native of Prentiss and a graduate of Millsaps college, Mr. Berry was in the banking business at Picayune and at Gulfport before coming to Jackson to join the state banking department staff under Superintendent J. S. Love. He was placed in charge of the bank's affairs under Mr. Love's administration and then was appointed receiver by Chancellor Judge V. J. Stricker. At the time of his death, affairs of the bank had been so expeditiously handled that what was the biggest banking institution in Mississippi at the time has been 90 percent liquidated, 75 percent of the depositors being paid in full, the remaining 25 percent having received a 60 percent dividend. Funeral services will be held at Prentiss Friday afternoon at 3 o'clock from the Methodist church, of which Mr. Berry was a lifelong devout member. Interment will follow in the Prentiss cemetery. Besides his sorrowing wife, Mr. Berry is survived by two young daughters.

7. November 5, 1935 Clarion-Ledger Jackson, MS

Article Text

SPEAKER BAILEY TO RULE AT FETE Presiding Officer of House To Be Toastmaster at Major Homecoming Speaker of the House Tom Bailey will act as toastmaster at the big Homecoming Day get-together in the Millsaps dining-hall of Major alumni and friends Friday night. MERCHANTS' BANK RECEIVER NAMED Harold Cox Succeeds Late James L. Berry As Liquidation Director Chancellor V. J. Stricker at the current term of chancery court at Raymond, appointed William Harold Cox, prominent Jackson attorney, receiver for the old Merchants Bank and Trust company here, it was learned yesterday at the Hinds county courthouse. Attorney Cox, a member of the state board of bar examiners, succeeds the late James L. Berry who died last Thursday after an extended illness. The bank's liquidation, under the supervision of Chancellor Stricker, was able during the period of the late Mr. Berry's receivership to pay 90 per cent in the past two years. Seventy-five per cent of its depositors have been paid in full and the remaining 25 per cent have received 60 per cent of dividends. One of the most active practitioners before the Jackson bar and widely known, the appointment of Attorney Cox won favorable comment in banking and legal circles here and the receiver will assume his new duties immediately, it was stated. Chancellor Stricker returns to Jackson the third Monday of this month to open chancery court here November 18.

8. August 22, 1940 The Durant News Durant, MS
Article from The Durant News, August 22, 1940

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Article Text

payoff in excess of fifty per cent was unusual. "This makes the record of Judge Stricker the more impressive. "In every major liquidation in his jurisdiction, with one exception which is still in the process of liquidating, depositors have received all their money. "In several instances stockholders have had their entire investment returned. "In every instance stockholders have been returned a substantial volume of assets after all depositors have been paid in full. Judge Stricker has been told by eminent attorneys that no similar record exists in the nation. "During one period, the jurist had under his immediate jurisdiction and supervision seven banks, one bond and mortgage company, one building and loan association, and one or more minor establishments in liquidation. "The liquidation of the Merchants Bank and Trust company of Jackson is 2 prime example. "It was the largest banking institution in Mississippi back in 1933, with some 12,000 depositors. On April 8, 1933, the institution's liquidation began under J. S. Love, state superintendent of banks, through James L. Berry as liquidating agent, and under direction and supervision of Judge Stricker. "The bank had assets of approximately six and one half million dollars, with an equal amount of liabilities. "On Thursday, July 6, 1939, six years after the bank's closure, Judge Stricker terminated the receivership after repaying depositors in full and returning assets with a book value of more than $600,000 to the stockholders. "Not all the liquidations supervised by Judge Stricker were placed in such a position by the exigencies of the depression era. "The Building & Loan Associa tion of Jackson went into voluntary liquidation under the court's supervision. At the time of its closure it was the largest such institution in Mississippi, with assets approximately three and one-half million dollars, and an equal amount of liabilities, consisting of thousands of items of distressed and depressed real estate scattered through all the counties of the state. "When the liquidation had run its course, stockholders had received more than the full amount f their investments. "In similar fashion the Guaranty Bond and Mortgage Company of Jackson paid its creditors in full and a substantial dividend was paid to stockholders. "Under Judge Stricker's supervision the Mississippi Life Insurance Company of Indianola was liquidated, with 20,000 policy hold ers reinsured, creditors paid in full and stockholders repaid their entire investment. "The list goes on and on: "The Mississippi Building and Loan Association of Jackson paid stockholders the full amount of their investments. "The Commercial Bank of Brookhaven, to the surprise of that city and section, paid depositors and creditors in full. S "The United Industrial Insurance Company of Jackson paid all crede itors in full, to the extent of ap proximately $350,000.00. "The Citizens Savings Bank and Trust Company of Jackson remains in the process of liquidation. It 1 came into the court with assets of approximately $300,000.00 book value but of so depressed and varied a nature that the liquidation has d been extremely tedious and difficult f "This institution has repaid den positors 85 per cent, with prospects for an additional five per cent, and possibly a hundred per cent. "These liquidations were started and conducted during one of the worst depressions the country has known, and when the Judge was d holding ten terms of court a year, with the largest volume of busin ness of any chancery district in Mississippi including estates in administration, guardianships, trusts and the like, involving other millions of dollars. "The nature and success of the