The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-19
THE SOUTHERN BANK SUSpENDS
STATEMENT OF ITS CONDITION.
Receivers Appointed who are the suf-
fePers.

Receivers AppOinted-WhO are tho suf-
II ferers.
Yesterday morning, shortly after the OPEN
Ing hour, the Southern Bank suspended ope-
rations, and was taken possession of by the
civil sheriff. under an order from the Fourth
District Court, issued in an amicable suit in
stituted by Mr.. G. E. Girardey for the ap-
pointment Of receivers.
| The bank has been considered shaky for
some time past, and In consequence has done
very little commercial business. It sphere Of
action has been more that of custodian of
funds of charitable associations than that of
a bank OF exchange, and consequently its sus-
pension will not materially hurt the business
| community, and for this reason, also, the
status of the other banks will not be affected,
and therefore no apprehension In regard to
them is entertained.
| The principal sufferers will be beneficiaries
OF the charitable funds which the bank had
on deposit.
The condition Of the institution on March l.
as per statement published In the DEMOCRAT
| March 8, shows the total liabilities to be
$95S,O58 Is, and the assets $1,013,161 20. The
| amount of assets. however, includes six hum
dred and seventy odd thousand dollars In city
| and State bonds, which. III sold at their mar
ket value on the day the statement was
made, would not have brought more than
two hundred and seventy odd thousand
dollars making o difference of 100000 reduc-
ing the assets to S6t3,OOO and leaving deficit
| of $345,05S Is, and II the iudgm ent of the city,
now before the Supreme Court, be added, it
wi ba inbi
the deficit 1886, 600.
To cover this difference of $345, O5S Is the
bank has 1894 800 Of what is called dead weight
real estate, long loans, etc.,, whose real
value cannot at present be estimated.
The directors of the bank think that Its con-
dition was such that they could have pulle.
through, II 1t had retained the public conf
dence, but they appreciated the fact that they
could not stand a run and at the first In lea
ton Of one they determined to suspend opera
tions, so that the interest OF none of the de-
positors would be jeopardized, and to further
protect them they took the proceedings In
court under which the seizure of the bank was
made and which were as follows:
The petition OF c. E. Girardey, filed In the
Fourth District Court, averring that he has
been for some time past keeping an Individual
account with the Southern Bank; that on the
eighteenth day of March, there being to his
credit In the bank about one hundred dollars,
relator drew his check for the said amount,
and presented 1t to the paying teller of the
said bank, who declared, In the name of said
bank, that the same could not be paid that
one OF the paramount conditions of the law
under which the bank was created, organized
and has been doing business, Is that it should
punctually pay all checks OF depositors. and
that the failure of the bank to pay REALTORS
check Is an act of insolvency which deter
mines the forfeiture Of its charter, and that
1t Is to the interest Of all parties concerned
that said charter be declared forfeited, and |
the affairs OF the bank liqudated that the
civil sheriff be ordered to take possession of
the assets Of the bank, that three commits
affairs of said corporation; that an inventory
be ordered to be taken by notary public OF |
all the assets OF said bank; that appraisers
be appointed to value the same, and that, |
after taking possession OF the said assets, the |
civil sheriff be ordered to deliver the same to
the commissioners appointed. who shall ad-
minister the same under the direction of the |
court; that an attorney be appointed to rep
resent the creditors and stockholders of the
bank absent from the State, and that all pro-
ceedings against said bank be stayed, and
relator prayS for relief, etc.
PLAINTIFF OFFERED IN EVIDENCE
protest annexed to the petition the charter |
OF defendant and defendants answer.
The answer of the bank recites that circum-
stances absolutely beyond its control have |
made it its peremptory duty to abstain from |
receiving further deposits and making fur
Their payments, and that 1t has suspended |
both In justice to its depositors, creditors |
and stockholders; that it is for the present |
beyond its control to meet its cash liabilities;
that 1t trusts that with successful termina-
ton OF the judicial proceedings IL has institu-
ted and which are pending on writ OF error to
the Supreme Court Of the United States for
the vindication OF its rights as holder for
upwards OF 100000 of the bonds OF the CITY of
New Orleans, issued under section 81 Of the
enabled not only to pay all its liabilities, but
also benefit its stockholders considerably;
that under the circumstances it humbly sub.
m1tS to the court its case presented BY the
relatOr on the evidence adduced by him.
praying that such judgment be rendered in
the same as Its nature demands and the law
will allow.
r. BERMUDEz, OF Counsel.
1t was agreed that this case be submitted
TO the court for adjudication ON the evidence
accompanying the petition and that the iudg-
ment rendered be signed and executed forth
with
The court decided as prayed for, appoint
Ing Tho5. Layton, John T. Moore and G, i.
Llrardey commissioners to effect the liuuida-
ton OF the affairs OF the corporation. C. T.
ooniat, notary public, was appointed to take
Inc inventory, and Jules Lavergne and A. j.
Where were named and sworn to value the
assets Charles Claiborne is the attorney to
the creditors and stockholders who
Ire absent from the State
ever cease to love. What Shadines.