The sun., 1898-12-23
v PAPER SURPLUS
Ink at Smyrna Loses
O,OOO of Its
Hoardinss.
IS SOLVENT:
5curities Carried as Cash
iIars and Now Figures
Profit and Loss
" Olumns of the
Ledger.

Id in the strong-box OF the
bwers' National Bank of SMYRNA
70 loss OF over $4,000 is now
Enp on the books Of that institu-
serted that the bank is solvent
Ino individuals will suffer d.
The bank itself, however, will
Or less affected by the dis
the story as told by staff cor
Int OF the Evening Journal.
ina is not loaded down with SEN
y financial character, and when
Ees it runs like wildfire. The talk
Immunity at present is the re-
by the Fruit Growers National
its surplus from $50, 600 to about
and the shrinkage of $50, 800 in
figures carries with it tale which
Ist become public property. The
lcation of the bank statement
J. The matter to light, and it came
~ nature of a surprise to those who
Crested in banking and financial
q.
re ago there was but one bank i'll
IA, the First National, of which
vi George H. Raymond was, prior
He founding of the second one,
fdent. David J. Cummins decided
be wanted the presidency and by
Ma manipulation of the stock hold
he obtained it. William M. Bell
cashier and Nathaniel Wilds teller.
2jee who were dissatisfied with the
nmins control, decided to start a
bank, and Colonel Raymond head
ri The project. Mr.. Wilds went with
I'M as cashier. At that time Smyrna
~ in the peach belt, and it was
bought hit to call the new bank
~ institution the Fruit Growers Ma
6nal Bank OF Smyrna. Nor were the
Fomoters mistaken, for the new bank
ON began cutting a big swath into
" deposits and earnings of the old
BE, so much so, in fact, that up to a
secent period the old bank had been pay
B per cent. on deposits, although against
The advice of Benjamin B. Comegys, the
veteran banker, of Philadelphia, who
toId them that in his experience he had
never known national bank to profit by
offering trust company and savings fund
Inducements to depositors. This action.
of course, increased the volume OF the
old banks business, but the Fruit Grow
ers' National Bank continued to do bust
ness at the old stand, and profitable
business at that. The old bank had been
hard hit by the Lord & Polk troubles
md was compelled, to protect itself, to
tske certain real estate at high figures on
4 low market, and to hold it longer than
xhe FIVE years allowed by law, President
Gummins representing to the Washing
Ion authorities that it would be losing
1ame to sell when values Of iarm lands
we're so deprecated, and the Washington
authorities acquiescing in the business
eense Of the proposition.
4 About eight years ago wave of West.
|ern speculation swept over Smyrna.
Word came that there was big money in
bWastern investments, and the Winner
nyestment Company secured the bulk
the local trade. Colonel George H.
Cashier Wilds, William NJ.
Bell, Joseph FAIRIES, Abel FAIRIES and
|bthers who had cash OF their own, sent
+ West and it never came back. The
losses in this section probably
amounted to $4,000 or $50, 900. Some o.
I}e losers were merely crippled; Others
sSractically ruined, but the investments
! IRE made in individual capacity and
Ahe two banks were in nowise affected
BShly inasmuch that the volume of loca
(Sirculation was reduced by that amount
N About that time there was a project
|to build big bridge across the Missouri
river at or near Kansas City. A pros
lbectus was sent out: in glowing termi
khe great financial advantages of the
Enterprise were set forth, and the aid O.
Ithose who had money to invest and who
wanted big returns was invoked. Al
that time the Fruit Growers Nationa
Bank had more money than it could ad
yantageously and proftably dispose o
Eclose at home. The glamour OF thii
Western project attracted President Ray
mond and Cashier Wilds, Of the Fruit
Growers National Bank. President Ray
mond now says that the cashier induced
him to do it; and the cashier. it Ii
understood, lays the blame to Colone
Raymond, or, at least, demands that HI
share the burden. At all events, Cash
Ter Wilds took trip to the West, look
1 ed at the turbid waters Of the Missouri
and the bridge site; made what he re
lgarded as thorough and critical exami
nation OF the enterprise and then return
ed home. He reported to President Ray
mond that it was good thing and prom
ised big returns. With or without tn,
consent OF the bank directorate, presum
ably without, they sent out about $57,
600 of the banks money, not for thei
own benefit, understand, but for tn
benefit of the bank. They had no per
sonal interest in the matter further thai
I It affected the veal or woe of the bank
No one here entertains the least ide'
that they had any motive other than
By bold stroke, making the bank, il
whose interests they had always laboret
most zealously, richer by several thou
sand dollars. But their judgment was
fault. The bridge tumbled down abou
their ears, so to speak, and the banl
had to hold the bag. It was given ou
BY the promoters of the scheme that tn
collapse was but temporary, and tina
time would right all things. There wa