The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-17
AN ATLANTA BANK ASSIGNS.
HEAVY WITHDRAWALS OF DE-
POSTS THE CAUSE.

The Trouble Brought on by the
Circulation of Damaging Reports
in Connection with the Investiga-
tion of the ONCE OF Tax Collector
Reconsideration TO BE Paid in
Full But the Amount Stockh olders
VIII Receive Uncertain
Atlanta, Ga. oct. 1G-The assignment OF
the Merchants Bank to-day created a
small furry In financial circles. The fall
ure was not wholly unexpected, for 1t has
been known for some time that the bank
was in a weak condition. and IA fact,
Withdrawals have been going on among
the deposltors steadily for several days
past. Day before yesterday the With
draWals amounted practically 70 run,
although the deIositors acted quieL~ and
without causing an immediate excite
ment. Since the first Of the week 5000
has been withdrawn. and seeing that
they could not meet another days de-
rnand IL they should be as heavy as on the
past days Of the week, the directors Of
the bank held a meeting last night and de-
termined 20 make an assignment.
Accordingly. when the usual hour for
the opening arrived this morning, instead
of unlatching the doors the porter who
did that duty posted notice on the plate
glass. making the simple announcement
that a deed Of assignment had been given
10 J. q. Oglesby, George ". Scott and
George Winship. Z he depositors, the no
tice read. would be paid In fun In the due
process Of liquidation.
The deposits amount 10 approximately
sZ75 90. with 2s0.99J due other banks. No 10
cal banks are involved, and although there
was q good deal OF excitement for a while
and many merchants withheld their de-
posts from their regular banks this after
noon. no other failures are anticipated as
a result Of the Merchants National Bank
assignment AL Of the banks however,
experienced an unusual demand from de-
positOrs.
In the deed Of assignment, which covers
everything in the way OF personality and
realty owned by the bank, either In fee or
as cola teral the aggregate Of the assets,
in notes. bills. drafts. etc. IS placed at
Si6s. 025.52, OF which amount sZ70,5JO is said
to be good, @l74,75l doubtful, and 81, 755
bad
The rediscounts scheduled are the Ma
tional Bank Of the Republic, New York.
81 1916; the Third National Bank of
Boston, s30,V0, and the Lowry Banking
Company. Of Atlanta. S39971-05. making a
total Of SIP. 206.O1.
Among the Georgia banks involved are
the Georgia Railroad Bank Of Augusta.
SIS, $40; the Germania Bank Of Savannah,
s. 3l0; and the Savannah Bank and Trust
Company, @,s66.
The officers OF the bank are j. II. Par
ker. president; and r. NJ. FaTrar, cashier.
it was organized twenty years ago and
in that time has paid $3.50 90 in dividends
TO the stockholders The capital stock
was $4,000.
While the depositors will probably re-
ceive dollar for dollar, many persons be- |
lleye that the stockholders will not get !
back anything
President Porter and the directors, how |
ever. say that the stockholders will re-
ceive at least % cents on the dollar.
The bank made no request Of the local |
clearing house for assistance.
Some Of the other banks paid out gold !
to-day TO quiet any uneasiness that might |
be felt All the other banks in the city
are pronounced 10 be safe.
Both President Porter and Cashier Far
rar, who had considerable loans from the /
bank turned over their stock In the bank |
and real estate 10 cover the Indebtedness. |
Some weeks ago President Porter mort |
gagged his home on Peachtree street to /
keep the bank going.
The immediate cause OF the failure IS 1
stated by the bank officers TO have been I
the circulation Of damaging reports IN con- 1
nection with an investigation Of the Office 4
OF the state and county tax collector, A. I
7. Stewart, report Of which appeared I
IN these dispatches several days ago The I
investigation disclosed the fact that the I
has some $4,000 on deposit In the I
bank which should have been in the hands /
OF the state treasurer and the county I
treasurer. IT was reported on the streets I
that the bank was unable to pay this 7
money on demand, but. nevertheless, Col (
lector Stewart, since Oct. 3. has checked /
81 all out, day by day, paying the last 81, 600
TO. the state on Wednesday. While the I
bank might have wlthstood the with /
orawal Of this state and county money all |
right under ordinary circumstances, II |
could not weather the storm brought on |
b. the reported trouble with the tax col |
aector. Nothing was said about the mat |
Ter by the local papers. for fear Of precip- |
itating a run on the bank, but the reports |
were 50 generally current that this did |
not prevent II, and deposits were quietly
withdrawn on the strength OF them. |
Among those who considered It prudent
20 draw out was State Commissioner OF /
Agriculture Nesbitt. He had nearly s.. 600 |
OF state funds In the bank, but yesterday
drew II out on Information as to the banks |
condition.