The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1877-06-13
THE CoNuERo1AL BANK.

The creditors of the Commercial
Bank Of Knoxville had a meeting on
Tuesday of last week. at which the
President of the Bank, r. NJ. Nc
Chung, Esq. reported that he was
satisfied that he could raise all the
money neces sary to pay every dol
lar of the banks Indebtedness, and
have handsome surplus left, if the
creditors would give him time. The
request for a further extension of
time was referred to committee of
five, with instructions to fully inves-
tigate the banks books and report
as to the propriety of granting fur
ther time. To subsequent meet
ing of the creditors the committee
made a lengthy report, giving a list
of the depositors and amounts. the
certificates of deposit. unpaid New
York checks, over drafts, aud notes
purchased and due the bank. There
were 118 depositors, aggregating
$127,681 80. 81 depositors, aggre
eating $48. 168 50. Amount due
different banks, S6,6O2 45, Unpaid
New York checks, 1927. In all
aggregating $143,53 62. The com
mittee report the indebtedness of
the bank officers to the bank 10 be
SOL, 815 50, and say that aside from
this indebtedness, they fluid good as
sets to the amount of about $4,000.
They report other matters that tend
to prove conclusively the complete
ness of the failure. Amongst these
are the facts that the properties Of
the President and Vice President
are already incumbercd to their full
value, and that no written evidence
Of the organization of the bank could
be found. The only hope the Off
GERS OF the bank have OF rep placing
the money over drawn by them. the
committee say, is in the sale of an
interest in a patent for making steel,
which is uncertain of course. So,
what was at first thought TO be only
a suspension, is likely TO prove a
most disastrous failure. Notwith
standing the great anxiety of the
creditors Of the bank when the first
announcement of its condition was
made, the high character and bust
ness qualities. of The officers Of the
bank influenced the creditors 10 give
them two months time in which to
make matters square. The report
Of the committee to the creditors is
minute and unpleasantly astonishing
in the facts developed. AS to fur
Their extension Of time to the officers
of the bank the committee say and
suggest:
Sixty days ago, at the meeting of
creditors, the officers of the Bank re-
quested until now, within which to
pay the Indebtedness due from the
Bank, claiming to have ample means
with which to do it, as well as the
assurance of responsible persons to
back them.
The creditors volun tarily granted
the indulgence asked, and expected
that the officials Of the Bank would,
in good faith. preserve their indivi-
dual means intact without prejudic-
ing vested rights.
And the communications now re-
ferred to US are, as we feel forced TO
report, indefinite as TO time, uncertain
as to promises, and contain no sufi-
cient guarantees of future action to
base thereon the indulgence asked
for.
The basis of this application seems
to be the hope of obtaining means
from the sale of q patent right which
has cost the bank but little more
than $1,000, with which to replace the
large sums that should, in the opinion
of the committee. be represented by
legitimate assets, but in fact repre-
scented by schedule No, 10.
Your Committee, however, deal
ing with the facts as they exist, sug.
gest that the stockholders (who admit
themselves to be SUCH convey to
new Trustee their entire estate, real,
personal and mixed, including their
interest in the patent right, for the
equal benefit of their creditors OF ev-
cry character.
1t is also suggested that Messrs.
McClung and Bearden be permitted
to continue in their efforts to dispose
of that interest, acting under such
and accounting to him for the
proceeds; and, should sum sufi
cient to discharge the Indebtedness
be realized from that or other sour
ces, that the right be reconveyed,
together with any estate not dispos-
ed of, to the proper party.
It is suggested. however, that in
the making of this arrangement care
should be taken that no right to pro.
coed against the other stockholders
be waived.
Col. Hu. L. McClung resigned his
position as Trustee and james Com
fort, Esq, was chosen in his place,
the creditors being unwilling at this
time to enter proceedings in bank
ruptcy.