The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-12-05

| After a conference and an investi.
cation lasting from yesterday morn-
! ing until after midnight last night
the officers Of the Pensacola Stats
Bank decided to suspend operations
| for the present and to call on tha
state comptroller to make an examina-
ton of the affairs of the institution,
President F.. Z. Brawner issued the
following statement:
PRES. BRAWNER'S STATEMENT.
TT has been considered advisable
to call on the state comptroller ia
make an examination of the affairs OF
the Pensacola, State Bank. In cOnse-
quence the business of the bank wiz
be temporarily suspended. 1 feel sura
that arrangements will soon be made
so that all depositors will be duly
paid"
b. C. Whitfield. representing Comp
troller w. Y. Knott, arrived in the
city last night and is examining the
condition of the bank. President
Brawner has also called a meeting
of the stockholders for three o'clock
this afternoon at the bank.
CLEARING HOUSE CALLED ON.
Yesterday morning President Braw-
ner called on the members of the PEN
sacola clearing house with a request "a
examine the affairs of the bank and
to make suggestions or devise a plan
1OT SOIfI&fdlE& It's OD6IdAlO4As LliH
clearing house representatives spent
the day and a large part Of the 1lignE
going over the affairs OF the instttu-
tion with the result as announced in
President Brawner'S' statement.
The suspension of the Pensacola
State Bank will not cause much sur
prise as ii has been known for soma
time that the institution was strug-
Cling against heavy odds. The result
has therefore been largely discounted
in advance and the Suspension will not
materially affect the business .condt-
tion in Pensacola,
There is on deposit in the State
Bank something over one hundred
thousand dollars of the city's funds.
but these are protected by bond ana
the city will be secure even should
the bank not be able to resume opera
tions.
FOUNDED BY o. L. BASS.
The state bank was founded seven
years ago by O. L. Bass and asso-
ciates. bIt- attersappaTently prospecting
for about one year, met with reVefseS
when George G. i Scudamore, ITS casll-.
Ter, wa,s found short in his 2cCountS
which aggregateG a large amount. This
loss was 3. heavy one, especially Tor a
new institution, but the stockholders
met the situation and tiGed the bank
over for the time, only to meet with
other setl1acks when the financial panic
of 1907 overspread the entire country.
Later the bank was reorganized and
had strong men behind ii and on its
T, A. Jennings was elect
ed president and the bank continued
under this management for a. year or
more, when the stock was sold 10
Blount, Hyer and others, and
w A Blount, Jr., elected president
It continued under this management
until a little over a year ago, when F.
E. Brawaer became a heavy stockhold-
er and was named a director, later be-
coming president and he began push
ing the business of the institution. A
year ago he acquired control of over
SO per cent of the stock, pur-
chasing the remaining interests OF
Messrs Blount and Hyer and Tor.
while the bank appeared to be gaining
business and prospering, but it could
not overcome the heavy obligations
acquired in years previous and as q
result its doors will be closed this
It is capitalized at 100000.