The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1897-12-24

issue $4,000 900 six per cent preferred stock
of the Record Publishing company, as col
lateral for loans, was sufficient to Justify
the banks In advancing the needed funds
The members Of the clearing house say
that no other banks are involved in the
failure. Concerning this phase of the case,
Mr. Singerly said today that arrangements
Lad been made to make an extra issue of
$2000,000 by the Record Publishing com
pany, and that it was thought that that
would be satisfactory, but some how or
other the plan fell through.
Can BE Liquidated
1t was stated that if Mr.. Singerly's in
debtedness to the bank could be iiquidated.
all danger of failure would be averted, and
it was suggested that these various finan-
cal interests should join in subscribing to
or underwriting q proposed issue of 81 00),
900 per cent preferred stock of the
Record Publishing company, the proceeds
of which could be devoted to the liquida
ton of that indebtedness and other obi
cations of Mr.. Singerly. statement was
submitted at the same time showing that
the profits of the Record last year amount
ed to $4,000, sufficient to pay the inter
stock twice over
The response was almost unanimous, and
as but few of the institutions individ
uals invited to cooperate refused to do so,
no difficulty was experienced in raising the
81, 900 900 required. a number OF leading
banking houses were invited and consented
to represent the subscribers in the negotia-
TONS AT the close of business yesterday
t-o+ oil nb-ta
cles to the banks continuance in business
had been removed.
Deemed Insufficient
Upon final investigation, however, it was
discovered that the affairs of the nstitu-
ton were more deeply involved than had
been supposed and the condition disclosed
was such that the amount of money raised
was deemed insufficient to relieve the en-
barrassment. The large financial interests
referred to were, therefore, reluctantly
compelled to withdraw their proffer of aid,
and the result was the closing of the doors
this morning. The meeting at which this
decision was reached was held last even
ing the financial interests being represent
ed by a committee of their number, and
it was not until nearly midnight that it
was decided that the catastrophe could not
be averted.
The banks affairs have been under the
scrutiny of the comptroller of the currency
for some time, and he has paid several
visits to this city in connection Herewith
In banking circles the embarrassment of
the Chestnut street bank has recently been
an open secret. The bank has for some
time been a debtor at the clearing house
in making the daily exchanges, and on one
or two occasions some difficulty has been
experienced in meeting its balances. This
morning, however, the Chestnut street
bank was n creditor at the clearing house
to the amount of $12. COO. The liabilities of
the bank and trust company together will
aggregate about SO 900 900, represented by
ST. 200 900 of deposits in the bank and ST.
900 900 in the trust company. Of the 81, 7OO,-
900 in the bank, about S1,20000O was to the
credit of individual firms and corporations
in this city, while remaining $4,000 repre-
sents the accounts of banks in other cities.