Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-05-28

sumption. a. suspended national bank.
[ estimated H. assets Ut about the value
/ OF two hundred aud fifty thousand doh
| lars. is2iO.UOOl ard the comptroller ~
| the currency. IN View Of that fAet. RE
/ commended 10 the directors Of said hank,
that the stock Of said bank be reduced
TO the above amount or one-half Of its
/ cniire capital.
That Of the debts Of said bank. H. w.
/ Taylor, it's former president. aud u. l..
Chase, a former viceprcsidcnt, together
and severally weue owing the said bank
sums aggremiing nearly S2OO.OOO, which
| they had obtained from the said hank.
as officers thereof. These facts, with
many Others Of similar character,
caused the said bank to have a bad rcpn.
tation. and Il was looked upon as bad
Institution.
Upon the resumption Of business as
aforesaid many Of the stockholders OF
said bank solicited this defendant TO take
charge Of the affairs Of snid bank as
| it, president, which he declined TO do.
| That they then solicited him TO become
| q director and accept the position OF
yice-prrsident thereof; that after much
solicitation upon the pnrt .ot various
stockholders Of said Institution, anu Ia
view cf tho fact thar he was very
large stakeholder IN said bank. NJ ihat
time owning over 1850 shares Of sHmr'
aud in view Of tue fact that he had made
the said notes a. aforesaid. and ~ view
OF the further fact thnt the stockholdefs
aforesaid. or many 1f them, la most ln-
fnentinl, agreed to change the maze OF
said bank. 80 that II would not be- idon-
lifted with the name Of this INSTITUTION.
this defendant accepted the position ot
director In said bank, land was 1ller-
ward elected lis yicr-prc-idenD ~ tue
sane time A. B Smith was elected
q IL ala ltE
board OF directors rs cashier; and a. T.
I.nckett was also at said time elected
director, and afterwards by the directors
elected as president II, NJ Nyune' u
lawyer Of hirh standing and man ni
grcat personal Integrity, was elected
director: T. Il. Littcj0hn, man ol
uuquestioned integrity and business dbil-
nv. was also elected director. G. j.
SwAscy. man of considerable wealth
and influence In the city Of Fort Worth.
aud regarded AZ a man of unqucatlOnCd
integrity. was elected 4 director ~ saiu
bank. mud the directors 81 elected began
the almost hopeless tax NJ rchnbiliint.
ing the said institution, nnl niirrwnrl
this respondent found that the opposition
Of the stockholders WAS snch thul N
was utterly hopeless to change the name
nf the institution. and the Old NAME OF
the said bank has been kept MP. to rs
great injury. Tint had he known tlht
lie name of said bank would not be
clnt ppd, or had he known that the for
NOR uiEcprs OF the bank. and it, debtors,
had contemplated the wreck and ruin OF
sud institution ~ they have IN many
ways attempted Ia do us hereinafter rN-
planned. he would never have had any
| thing whatever IN 40 with said lhStl-
| tuition as an officer thereof
Respondent shows thut AFTER he hnd
| discovered that the stockholders nt SAID
bank were not willing 10 change the
name thereof, In order to prOtecs him
| self and get new name therefor, ana
| tu Hnvc the money he had already invest
| ed In said institution, he begun To pur-
| chase stock of said bank, which he would
| NOT otherwise have done, for SOME OF the
| stocl, that hc had purchased M said
| bnnk during the early part Of
| business transacted after the rcsunp-
| lion Of business by said bank ns alutc-
| said he paid ns high ~ seventy cents
| Oh the dollar; that his mnin object ia
| this was not to make money by the pur-
chase of snid stock, so much MS 10 pro-
tect himself aud be In u position to
control the business Of said bank, aud
| hy that MEANS. save himself and the
other shareholders thereof from ultimate
loss; and that he might, u he c0ul,l'
obtain II controlling Interest ~ said bank
| and give " new name, which II much
| needed That he continued to buy said
stock buying whatever he could, and
| that the average price paid for same
| 10y him was about forty-iiyc cents on the
| dollar. lie admits that he pnid for some
less than II wax probably worth. but he
AYERS, upon the contrary. that h. paid
for some Of the stock Of said bank so
bought 10y him q greater price than II
was worth Ht the time az which he pur'
cbascd H.
Respondent further shows that nearly
an The time since the reorganization OF
I t..4al La fl.sN IaHIT4 Ia.
hns discounted his own bills receivable
for large sums Of money. aud placed
the money ON deposit with said bank
his deposits running from zen to forts
thousand dollars, That he frequently
endorsed the paper al said bank lol
large sums uf money, aEgrcgnting about
sixty Thousand dollars, That In one IN
stnuur, so as to aid said bank and say,
| u from large loss Of. tn-wit: Sixty thou
sand dollars. he borrowed money ON hii
own note aud mOrlragrd real estate II
the City nf Fort Worth To SECURE Sauc
About February, lSl2. the Phillips In
yestncnt company Of Kansas CRY, VIII,
were the holders 0f vendors lien note
lnale lY II, X, Chase. ihr lien helm
upon property situated In the Bellevue
addition, IN the suburbs " the city o
lHori Worth. Tex. being the same prou
orty upon which u, T.. Chase had rivei
after the purchase by him morjgag
to tho Merchants National hank to ~
cure his Indebtedness 10 same, while
aggregated something over one hnndrr
thousand dollars. the Phillips lnvestmcn
company, knowing that snid bank ha
sccand lien upon said property Il,
nnuded that the notes be- paid on O
! threatened that suit would he brough
, against said Chase, and against sal
4 bank as q lien holder upon said prN
crty, The amount Of the indchtrdnrs
50 held against said property by sal
Phillips Investment company was
prior lien to that Of said bank and IA
principal and interest thereof was IA
IN excess nt twenty thousand dolIr
That AZ said time defendant bank Il,
( not have sufficient money, mud was /
no condition 10 pay said Phillips Iuvas
, ment company, the amount due thel
upon said vendors lien notes This d,
PENDANT then stated TO the dire toes ,
: said hank that he woull take NJ snj
e notes for said bank. II said bank wonl
, agree with him To take same from hi
o aud reimburse him for his outlay
- doing 50 Whenever said hnnk shnnll :
A able to do so; this defendant agreeing
4 carry said Indebtedness and the bank
4 repay him therefor when convenieht +,
i II so TO do That by this means Az
! hank would be entitled to the vendor
q lion nnon said property for said sum
: about iweniy-thousand dollars an
= would also control the mortgage up,
Il | said property, 50 that same would |
h " great value 10 said bank and won
N save to said bank about the sum
4 sixty thousand dollars lS this transactio