Pine Bluff daily graphic., 1914-07-03
This Action Decided Upon at Conference Ending This
 Morning at 1:30.
FULL STATEMENT TO
 BE ISSUED TODAY
Inability to Realize IF Collateral and Heavy Demands of Past Thirty Days ImpeIs Officers tc
 Take Action.

"The bank is in the hands of the state bank commissioner, and a state ment will be issued by the directors this morning to the customers, public and friends of the bank"
 This was the statement made by Cashier W. c. Hudson of the Bank of Pine Bluff at the conclusion this morning at 1:30 o'clock of d coHfer- ence of officers and directors of the Bank of Pine Bluff, members of the clearing house association and State Bank Examiner Alvin J. Reap. MT. Hudson said further that the action was decided upon as result of unusually heavy demands made upon the bank during the past thirty days and the fact that at this season of the year it was unable to realize upon it's collateral, s The bank will not open for business this morning, but it is not certain that the institution will not realize sufficiently on it's assets in 2 few days and resume business. It was intimat- ed that the entire situation will be made clear in the statement to be is- | suedsby the directors today. I The bank is said to be entirely soly- ent and in position to pay dollar for 1 dollar to all if 1t were possible to l realize upon it's securities at once. There is said to be little likelihood that the dep0sitors of the institutions will lose.
 Securities for $3O0,OOO were offered last night, but the ready cash was not obtainable. Realizing that ru- mors would probably cause an unus-al : ual demand today, it was deemed to be the Wisest course to place the insti- tuition in the hands of the state bank commissioner until it could he deter mined what course is best to pursue to protect the interests of depositors and stockholders.
 "Run" Three Weeks Ago.
 The Bank of Pine Bluff sustained something of "run"on Monday, June 8. as the result of rumors. The clear ing house association supplied more than enough money to meet the de- mands of depositors that day, and business men, who knew of the actual situation deposited more than the amount withdrawn.
 Since that time, however. it is understood there were heavy with drawals. This, coupled with the fact that the bank has been unable to. realize upon securities it holds. prompted the action taken this | morning.
 The Bank of Pine Bluff was organ ized on October 10, 1889, and has steadily grown in strength. It. is one of the most popular banks in the city, and has numerous friends in the adjacent Pine Bluff country as we'll
 J. s. Mcdonnell, who became presi- dent of the institution on May 30. suc- ceeding w. D. Hearn, is regarded as one of the wealthiest planters in the state. When the run" was experienc- ed several weeks ago, Mir. Mcdonnell announced he would place all his re- sources behind the bank and it is not intimated that he has altered his atti- tude. MT. Mcdonnell, however, is un- derstood to be in position similar to that of the bank-he is unable to realize upon securities and property. An unofficial explanation of why the clearing house association did not furnish all the cash needed to supply the banks momentary demands is that there was difference of opinion be- tween the officials of the Bank of Pine Bluff and the officers of the clearing house association as to the liability that should be assumed by the indi- dividual officers of the bank. When Mr. Mcdonnell became presi- dent on May 30, w. D. Hearn was made vice president. The other off cers are w. c. Hudson cashier and c. w. Pettigrew assistant cashier. Both of these gentlemen have been with the institution for years. The officers are A. w. Nunn, J. w. Sanders and H. l.. |Westbrook comprise the directorate. Although the situation may not be considered bright with the banks