The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-27
CLOSED TO AVOID A RUN.
The Brunswick State Bank Gets on
the Safe Side.

Orleans Threatened to Apply for
Receiver and the Bank Managers
Decided to Head Him OH-Payment
Refused Because the Teller Was Not
Sure the Draft Would Be Honored.
The People Excited at First But
Soon Gained Down-Plenty of
Money offered, the Bank from the
North.
Brunswick, Ga, May 26.-The Bruins
wick State Bank did not open for bust
ness this morning and has remained
closed all day. The situation at one time
was alarming, but affairs are now under
going investigation and nothing will be
done until the banks condition is known
c. B. Lloyd of the wholesale and retail
builders supply house of Brunswick and
Savannah is president, and Frank E.
Cunningham cashier. Mr.. Lloyd is now
in New York
The Merchants and Traders Bank is
all right and has met every demand on it
for money and closed with $4,000 lying
on its counter. The Brunswick State
Bank was the depository of the state and
the state has in it now $50 900.
CAUSE OF THE TROUBLE.
Rumo~s affecting the bank began to
circulate yesterday. G. Lowenstein had
placed a draft on New Orleans for colIec-
tion for 81 500. 1t was credited to him and
he drew several hundred. He called for
balance of about 81 100 and Mr. Cunning
ham turned the check down, not knowing
whether the draft would be paid and
not caring to take any risks. Lowenstein
went out threatening to place the bank in
the hands of a receiver. Vice President
Alfred j. Crovatt heard the rumors and
called a meeting of the board of directors
and all night they discussed the situation
and telegraphed friends, anticipating u
run this morning. 1t was finally CON
cluded by the directors to temporarily
close the bank.
CROWD IN THE STREET.
At the opening hour this morning a
large crowd of people occupied the street
corners and the street in front of the
bank, and to disperse the crowd and get
into the building Mr. Crovatt came out of
his Office and told the depositors that he
would assure them no preference would
be made in paying them their money,
that the bank was closed and would re-
main so until it's exact condition
was known. He stated that he would not
give any informa tion or make any
promises to deceive them, and could not
say then what would be done, but he
would assure all fair treatment and
would not open until he was sure he could
all I t4.,,. T., IL l.,
lowed to enter the bank and investigate
the books, Offering to leave the key to the
door on the outside so that if they were
determined to crowd in and wreck things
they could do so. Brunswickiansol olnow-
ing Mr.. Crovatt as a man of his word and
thoroughly reliable fell back, and Messrs.
Crovatt and Cunningham entered, no one
trying to follow, and all remaining peace
full outside except for murmurs from
some 1t is impossible to say now whether
the bank will resume business.
OFFERS OF AID.
The Sprague National Bank of Brook
lyn, n. Y, has wired them the privilege
to draw for S25, 900 and later E. s. Marsh
of Brandon, Vt, wired Mr. Crovatt that
he would send him $4,000 provided Mr.
Crovatt would be personally responsible
Other offers of aid were received, but Mr.
Crovatt states positively that he will not
draw on his friends until he has fully in
vestigated and is sure he can protect
them. The depOsitors in both the savings
and other department include many peo-
pie of limited means and the blow is
hard one to the people, affecting them
more than the two bank failures last
week. ..........
CONTROLLED by LLOYD.
Mr.. Crovatt said to-day that he is only
nominally vice president He has devoted
all his timeto his law practice and has
had no time heretofore to attend to the
bank. Croyatt 81 Whitfield are the at
tOrneys for the bank. Mr. Crovatt is
only small stockholder and President
Lloyd owns about four-ifths of the banks
stock Mr. Crovatt being assured from
time TO time that the condition of the bank
was excellent paid no special attention
to it. He was not advised of the situation
until yesterday while on the street. The
bank was organized four years ago by
Crovatt q Whitfield, as attorneys for
eastern capitalists, +. s. Marsh and +. ID.
Thayer of Brandon, Vt, being among
them. 1t prospered. so the present presi-
dent Mr. Lloyd, bought them out and
operated it with Cashier Cunningham,
who is also a stockholder. 1t was thought
by every one that the bank was perfectly
solvent, and to-day's trouble fell like a
thunderbOlt.
THE MERCHANTS AND TRADERS ALL RIGHT.
Early this morning Cashier Lane of the
Merchants and Traders drove down New
castle street in a large 2-horse express
wagon seated on a pile of money in sacks.
This renewed the great confidence the
people have in the Merchants and
Traders and later, when all the screens
around the teller's desk were removed
and over S50,0O0 in bills, gold and
silver were displayed, but few had the
nerve to withdraw. Deposits piled in and
later Messrs Glauber 4 Isaac, merchants,
deposited 81, 900 in silver This completely
restored confidence. The bank has more
money coming in, and is keeping open
extra hours 20 pay any who may call.
The Brunswick Savings and Trust Com
pany is all right and had no perceptible
run
THE STATES LOSS
Atlanta. Ga, May 2G-State Treasurer
Hardeman was notified of the suspension
Of the Brunswick State Bank to-day.
This bank was designated some time ago
as the depository into which the state
taxes from Glyhn. Applng, Camden and
Wayne counties should be deposited By
the officials. About q month ago Assist
ant State Treasurer w. a. Speer in
spected this bank and found its affairs 20
be Ia good condition Tho state has INA
the bank S}O, 800 ~, but IL Will not lose
ANYTHING as n has q bond for $50 900. The
g. &. g.. FH