The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-12
CUT OFF A CONSOLIDATION.
STATE SAVINGS BANK RECEIVER
SHIP A SENSATION.

1t Was to Have Been Merged With
Two Other Banks and the Largest
Savings Bank in the city Would
Have Been the Result--A Suspicion
That the object of the Receiver
ship Was to Prevent the COnsOIl-
..dntion in the Interest OF Rival
Banks.
Atlanta, Ca, Feb. 11.-It came to light
this afternoon that the failure Of the State
Savings Bank, which was placed in the
hands of a receiver on Monday nipped in
the bud a plan for the consolidation of
that bank with two other banks and the
formation out of their combined assets of
the biggest savings bank in the state.
Behind the disclosure OF this fact there
is also much sensational rumor touching
the motives alleged to have been behind
the receivership. 1t is intimated that
desire to prevent this consolidation by
other bankers who thought they would be
hurt by the entry of the proposed consol-
idated institution into the fed was one
of the motives.
According to. the plans, the papers for
which were all drawn up and shown to-
night by T.. A. Richards, the we'll
known railroad man, lessee of
the Northeastern road, the three
banks, which were to have been consoli-
dated, were the State Savings. now in a
receivers hands the Atlanta Trust and
the Fidelity, the latter being a savings in
stltutionS, and the other doing a large
general banking business. Mr.. Richards
was the active mover in the transaction,
and had associated with him other prom
lnent financiers, who proposed to buy out
the banks named and thus form the insti-
tuition. Just as the transaction was being
brought towards its close, however, the
bill for receiver was fled based upon
STOCK held an the name of an employe of
the Bates-Farley Savings Bank the stock
having been secured but the day before
the bill was filed, Mr.. Bates being one of
out.
Those interested in the Richards plan of
consolidation say that the receivership
was inspired by desire to keep The State
Savings Bank out of the consolidation and
turn its patronage in another channel
Mr. Richards who had the papers all
the three banks, left for New York 10
night. He said that to his knowledge the
State Savings Bank was in good condi-
and could easily have carried on its bus
mess.
Another sensational feature of the re-
celVerSh1p is the report that has been in
circulation to the effect that certain de
positors were given a tip Monday morn
ing that the bank would be put ia a re-
ceiVers hands that day, and that these de-
positors drew out their money, amounting
to over $4,000. one of these "tips' is said
20 have been overheard on the telephone.
The application for a receiver was made
| very early Monday morning, and the re-
ceivers We're named early In the day, but
for some reason they did not see fit TO
take charge, allowing thd steady
stream of Withdrawals to go onsthrough-
out the day, until the regular closing
hour.
As the affairs of the defunct bank are
developed, these facts are causing more
and more comment and it is not at all
| improbable that there will be some sensa-
tional disclosures made in the courts
when the case comes up.
The Clearing House Association has ap-
pointed a committee to investigate the
facts surrounding the receivership and
they have commenced the work by asking
all the parties concerned to appear before
them and give IN their statements, the
first of these being taken to-day.
A meeting of the stockholders of the
bank viii be held Saturday.
The meeting is called for the purpose of
deciding whether to attempt to continue
the business or to wind up the company $
affairs and distribute what remains after
paying its debts.