The Palatka news and advertiser. [volume] (Palatka, Fla.) 1908-19??, 1917-01-19
JACKSONVILLE BANKS
SUSPEND PAYMENT
Action Said To Have Been
Taken to Prevent Loss
to Depositors.

! On Tuesday morning the big Heard
National Bank of Jacksonville failed
to open its doors for business.
The affairs of the bank were left
In the hands of j. X. Doughton, chief
national bank examiner. On Wednes-
day evening ]. B. Pike, one of the
vice presidents of the bank was ap-
pointed receiver.
President Heard said:
The suspension comes as a result
OF four years in which business has
been admittedly not of the best, and
while the progress of the institution
during that time has been remarka-
BILE under the circumstances, at spe-
clal meeting of the board of directors
Monday night it was decided to take
summary action as a protection
against loss to the depositors. The
bank has $1,046,396.6S cash on hand
and in banks, and deposits of $3,-
020,555.31.
Comptroller Williams of Washing
ton in statement issued on Tues
day night attributed the suspension
to "mismanagement by the banks Of
ficers," whom he characterized as
incompetent and reckless" and to
directors, who seriously neglected
their duties and ignored their res
possibilities"
On Wednesday President Heard
took exception to the language of the
comptroller; he denied all of the COMP
troller's statements and reiterated his
belief that every depositor would be
paid in full. This seems to be the
general opinion of business men in
Palatka who are posted regarding the
Heard's assets.
On Wednesday the First Germania
Bank of Jacksonville also closed it's
doors and notified State Comptroller
Ernest Amos. The Germania is a
State Bank.
d. j. Herrin, president of the bank,
said that the board of directors had
met at his residence Tuesday night,
and that after full discussion of
the condition of the bank it had been
decided to close the institution. This
bank is composed of the First Savings
bank and the Germania bank, two in
stitutions which were consolidated
about two years ago.
The bank is declared to be solvent
and it is the belief of the officers
and directors that the depositors will
be paid in full. 1t was stated by
President Herrin that there was no
physical connection between the First
Germania bank and the Heard Ma
tional bank.
Live Oak Bank Closes.
On Wednesday afternoon a special
to The News also contained the in
formation that a silent steady run
on the Live Oak Citizens Bank this
afternoon was responsible for a meet
ing of the directors and officers, held
last night, at which time it was de-
cided to close the bank and notify
the state comptroller of such action,
this step being deemed the proper one
to protect all interests concerned.
The uneasiness here was caused by
the failure of the Heard National
Bank of Jacksonville, to open its doors
on Tuesday, it being the general i'm
preston that there was some connec-
tion between the two banks. While
the closing Of the doors of the Live
Oak Citizens bank caused inconveni-
ence, the depositors feel confident that
their interests will be protected. So
strong was the confidence of the peo-
nle in the bank that in the face of
the run being made, friends continued
to make deposits up to the hour of
closing.