The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-20
ANOTHER BANK GONE.
TIE MECHANICS AND TRADERS BANK
sUsPENDs.
Tne sheriff in Charge ana n statement
In Preparation.

Traders Bank had followed in the footsteps O
the Southern Bank and suspended payments
In short time after the suspension Civil Sheriff
GauLh reaux appeared and took possession
under an order of the Fourth District Court
Issued In the proceedings. an account OF which
will be found below.
The president and other officers Of the banl
were seen by a reporter Of the DEMOCRAT shortly
after he closing Of Its doors. but in reply to In
uuires as to the causes which had led to tn,
suspension. they eald they had nothing to sa!
at present. one Of them. however volunteering
the information that there had been run OF
the institution yesterday up to the time of tn
cessation OF the business Of the bank and also
on the preceding day.
They said, further. that Mt an early day the,
would submit TO the public statement Of the
condition Of the institution.
Inquiry on the street called forth the informa
ton tn { the inability Of the bank to meet the
calls upon 1t was occas toned by the deprecia.
tion in city consols. OF which it held large
amount RS coilateras for loans.
The opinion among business men and fnan-
ciers was that but few persons would be bad y
hurt by the failure Of the institution. as 1t has
for some weeks past been considered shaky. so
shaky. In fact that its stock only brought 81 per
share on par value OF 500. The results OF the
those oc -asioned BY the fai lure If the uthern
Bank as it was bank of exchange. and was
ASSOCIATED WIN h the bsd eed was manifested
by the anxiety Of small depostors In regard to
thea0undnesS ana
THE STABILITY OF TIE OTHER BANKS
OF the city: and on several Of them there was
consi ierable OF run. ThisfeelinR Of concern
WAS however, confined almost exclusively to
those whose balances are never very large as
fine heavy depositors generally speaking are
VIC inf u tn tho condition n han ka
TO which they intrust their funds. and are salts
fed of their ability to repay them on demand.
The several banks on which the runs were
yesterday made, were visited by reporter Of
the DEMOCRAT and the officers seen. They all
st ted that the pressure had been very light and
that thew were fully able to meet all demands
which were likely to be made upon them
Men OF judgment and business ability express
REGRET AT THE PANICKY FEELING
which was apparent yesterday slight as The
manifestation was. and they deprecate and pro-
nounce unnecessary the excitement ana scare
which have followed the suspension OF the two
banks. Both they say, have been regarded. for
good reason. with suspicion for somei tine past
as their condition. ON their own showing, was
bad. Thesouthern Bank was generally regarded
among business men rs being SO weak that 1t
won u be- unable to stand any pressure at all
and the Mechanics and Traders was looked
upon as being not much better than the South
Careful Inquiry they say. fails to furnish any
grounds for alarm as regards the other bank
ing institutions. and their only anxiety is that
this suspension Will result in panic. which
would eliminate in general suspension of all
business throughout the City. and occasion ire
parable loss to the trade and commerce of New
Orleans.
THE LEGAL PROCEEDINGS
In regard tn the Mechanics and Traders Bank,
to which reference was made above are as fol-
10 the Honorable the Judge Of the Fifth Dis
triet Court for the parish of Orleans:
The petition of the State of Louisiana, ex rel.
A. " Wegan. who s domicied in the city of
New Orleans, respectfully represents that he
has been for some time past a deposit of
money 10 the Mechanics and Traders Bank. a
banking institution created under the free
banking system as established by the laws of
this State, and as such institution your petit
toner has kept an individual account as de-
positor In said bank. and from time TO time was
In the habit OF drawing his checks against his
deposits o suit his wants and necessities, which
have been promItly paid by said bank.
That on this. the pineteenth day, Of March,
1879 there being on the books of said bank to
the credit your petitioner az such depositor
a sum Of about 500 against which relator drew
his check in proper form. and presented the
same, duly stamped. to the paying teller OF said
bank for Immediate payment, and the said
teller, In the name and by the authority of the
not be- paid, and thereupon declined and
refused to pay tho same. as will appeal
from the accompanying protest hereto
That one Il the paramount conditions of the
law under which such bank was created, or
ganized and has ear red on business, Is that 1t
should punctually pay all checks of depositors
drawn by them against money deposits made
by them in said bank, and that the failure Of
said, is an act Of insolvency which destroys and
forfeits It's charter. and therefore, IL Il to the
interest Of all parties Concerned that said char
Wherefore relator prayS that said bank be
cited and ordered to show cause according to
law why the charter of said bank should not be
declared forfeited and its affairs liquated. and
after due proceedings had that there be judg-
ment decreeing the forfeiture q the charter Of
said bank as executed before Pierre Chas Gu
vilier a notary public in this city. on the ninth
day Of August. 1873. ard that the civil sheriff of
the assets Of said bank: that three commits
sioners be at once appointed to lquidate the
affairs OF aid corporation that an Inventory be
ordered 70 be taken as the law provides by no
tary public OF all the assets Of said bank, and
ii al appraisers be appointed to value the same.
That after taking PC ession OF the said assets.
the civil sheriff be ordered to deliver the same
to the commissioners appointed. who shall ad- |
minister the same under directions OF court |
that an attorney be appointed to represen the |
creditors and stockholders OF the bank absent |
from the otate. snd that all proceedings against
said bank be stayed; and relator prays for all
other further general equitable relief that may |
In the premises be granted and such as the |
nature Of the case requires and the law per- |
mits. a. v. WOGAN.
ANSWER OF DEFENDANT.
The defepd ant, the Mechanics and Traders |
Bank free banking institution. created under |
the laws Of this State and domiciled in New
Orleans. now comes into court. and for an |
FIXTURE OF It's charter and other purposes. re- |
specially says;
That circumstances beyond its control and |
foresight have made it its peremptory duty to
abstain from receiving further deposits and |
making further payments. and that 1t has GUS |
pended further payment both In justice to It's |
deposil ors creditors and stockholders. That it |
il Tor the present beyond its power to meet Its |
cas- b liabilui+s 5. That under the circumstances
1t humbty submits 10 the court the case pre-. |
scented by the relator, on the evidence adduced |
by him. praying that such judgment be rem |
dered in The same as It's nature demands and |
the law will allow.
SINGLETON & BROWNE
Attorneys for Defendant.
THE JUDGMENT.
In this case. submitted for adjudication, the |
court contidering the facts presented Justify,
and decreed hat the charter Of the Mech MICS |
and Traders Bank. the defendant her-in, be