The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-05-27
FAILURE OF THE FIDELITY.
OFFICERS OF THE ATLANTA BANK
IN BAD BOX.

small DepOsitOrs ClnmorinE For
Their Money and Threatening
Prosecution If They Are Not Paid.
The Officers Accused OF Receiving
Deposits After They Knew the In
stftutiOn Was InsOIvent-The
Stockholders of the Concern Sure
TO BE Assessed TO the Full Amount
of Their Liability.
Atlanta. Ca. May 26-The affairs Of the
Fidelity Banking and Trust Company.
which was placed in the hands Of re-
ceiver six weeks ago, seem to be getting
in a worse state of confusion each day.
When James Logan took charge as re-
ceiver the officers Of the bank announced
that they would probably make up any
shortage in the assets sufficient to pay of
the depositors, who had something like
$1,000 in the bank, and little apprehension
was felt.
As Receiver Logan's investigation pro-
ceeded, however, the aspect became more
gloomy He found that the cash on hand
did not amount to So and the assets in sight
lacked considerable of being sufficient TO
meet the liabilities. The directors. how
ever. protested that things would straight
en- themselves out all right and that the
creditors need feel no alarm about the
settlement of their claims
It appears, however, that the prospects
is not nearly so rosy as was proclaimed
at the time of the failure To make mat
ters worse, the directors and stockhold-
ers OF the bank are involved in a row.
Some of them are willing to put up the
necessary money, for which they are liable
as holders of stock, in order to pay off
the depositors and thus settle the clamor,
but others are either not willing to do
this or they are not able to raise the ne
cessary money. The stockholders have
already been called upon to put up % per
cent. on their holdings. and the way this
money has gone into the hole has caused
them many anguishing thoughts. So bad
was the wreck of the bank that the stock
holders not only lose their stock in toto,
but the double liability safeguard will have
to be applied to the limit it appears, be-
fore the affairs of the concern are in
condition that will allow the officers VINO
presided at the collapse to feel easy.
Yesterday the stockholders were called
together in secret meeting for the pur-
pose Of going over the situation again.
Some of the depositors have employed at
torneys and are threatening to go into the
criminal courts to make the bankers
sweat for their alleged negligence, and
the violation of law in receiving deposits
when they knew the bank was insolvent.
On account of these threatening skies, one
faction of the stockholders, 1t is learned,
at yesterdays meeting insisted that all
should come up to the rack at once and
complete the fund for the payment of the
depositors. and thus quiet the troubled
waters This did not meet with success,
however, on account of the inability of
some of the stockholders to raise the
amount for which they were liable.
The failure of this meeting to bring about
a settlement caused D. H. LiYermore, the
president of the defunct bank to leave for
New York to-day 1t is said that he goes
to that city for the purpose of getting his
father, who is financier of prominence
in the metropolis, to put up enough ready
cash to settle things up. President Liv-
ermore. who holds fifty shares Of stock,
has already done all he could do to settle
the trouble of the bank and 1t is under
stood that If he is successful in New York
he will depend upon his ability to collect
from the stockholders who have failed to
come up to the rack, or cannot at the
present time, to reimburse himself. II he
does not succeed 1t is likely that the attor
neys representing the clamorous depositors
will apply to the courts without further
delay.
The grand jury has already taken notice
of the situation by serving Receiver Logan
with a summons to appear before that
body and tell what he knows about the
affairs of the bank. This, together with
the clamor of the depositors most of whom
are wage earners who placed their savings
in the bank, which made a speciality of
that branch. put the stockholders and the
officers in an exceedingly uncomfortable
condition and the public is watching for
developments with no little interest.