The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-06-25

and just before this bank failed these de-
PENDANTS, claiming, as they do now, and
as they have always DONE that they held
TINS Stock for the benefit of the bank
transferred the same from themselves
Dack into the bank There was no money
passed or received by either of them. but
they gave themselves each credit for 81 900
upon the book of the bank and signed
transfer for the stock to the bank 1t
was merely an entry of bookkeeping and
no money was passed at ALL When the
affairs of the Merchants and Traders
Bank were before the court in the re-
Ownership matter, in which your honor
has passed good many orders, there was
a petition filed by r. Y. Lane the father
or Mr.. A. H. Lane, the defendant in this
case. and this transaction was dealt with
in that petition, which 1 will read to your
honor Petition of r. Y Lane. of
LoWndes county, Georgia respectfully
shows into the court: First, that he is
the father of A H. Lane, formerly of
Glynn county, Georgia. Second. that
upon the organization of said Merchants
and Traders Bank of Brunswick, one of
the defendants in the above stated case,
the said A. H. Lane, was elected and en-
tered upon the duties of cashier of the
said bank. which position he held until
the year 1894, when he was elected
vice president thereof; that during all the
time said A. H. Lane was vice president.
and until the first day of November. 1897.
at which time he had formally rendered
his resignation as such vice president
to take effect, he had active charge of the
management and conduct of the affairs
or the said bank; that after Nov /, 1897.
said A. H. Lane did not have charge of
the affairs and business of said bank
The Fathers Prompt Action.
THE petition. goes on and sets out the
presenting of the petition for the receiv-
er OF the Merchants and Traders Bank
and the granting of the restraining order
and the appointment of a permanent re-
ceiver, and subsequent to the appoint
ment of a receiver that the petitioner
heard rumors that the Merchants and
Traders Bank was rendered insolvent
largely by reason of the Injurious man
aSoinent OF its affairs By the said 4. IL.
Lane during the time he was connected
herewith as one of its active managers
and that petitioner Immediately upon
hearing said rumors, proceeded to have
a thorough investigation thereof made
and to that end employed counsel, for the
purpose, so, far as was possible for him
to do, to correct and rectify and make
said bank any loss caused and sustained
by reason of the injudicious management
of its affairs by the said A. H. Lane. or
of his participation therein, petitioner be-
ing especially DESTROYS that neither the
stockholders of said bank or any of its
creditors should sustain any loss by rea-
son of the alleged injudicious management
of its affairs by his said son, or on
account of his connection Herewith; that
ptitioner's counsel began comforting and
corresponding with Messrs. Goodyear and
Kay, attorneys for the stockholders and
directors. and many of the creditors OF
said bank. for the purpose of ascertaining
what worthless notes or other items of
doubtful solvency among the assets of
said bank became such assets by rea-
son of the alleged injudicious manage
ment of petitioners said son, or his par
ticipation in such manag cement of its af-
fairs by his said son or on account of
his connection Herewith, that after re-
peated conferences and thor
ough investigation of the af-
fairs of said Merchants and
Traders Bank with said attorneys for
said stockholders. directors and creditors.
made in the presence of James S. Wright
receiver of said bank. your petitioner fin
ally agreed with said stockholders, di-
rectors and creditors through their at
torneys, that the items hereinafter men
toned among the assets of said bank
were regarded as of doubtful solvency.
and II was agreed that these were all
of the items among the assets of said
bank for which petitioners said son was
in any way responsible by his alleged in
judicous management of its affairs or
participation therein"
The stock Transaction.
Then follows a detailed statement OF
the items that are to be paid by Mr..
Lane. And then the petition goes on as
follows: Petitioner shows that among
the items above enumerated Is n item of
81 900 for nineteen shares OF the stock OF
said Merchants and Traders Bank. which
IS one half OF a block of thirty-eight
shares of said stock. which until some
time prior to the failure OF said Mer-
chants and Traders Bank was carried In
the name OF Medden and Lane, and
which before the failure of said bank
was transferred by Madden and Lane to
the said Merchants and Traders Bank,
and for which the said J. NJ. Madden. and
the said A. H. Lane, were each credited
with 81, 900 upon the books OF said bank,
that being the par value Of said stock.
This item II was and Is commended by Pc
titloner's said son was carried by the
said MADDEN anu Liant AOf III bthaAA
of the said Merchants and Traders Bank
from the time of It's organization. these
shares not having been subscribed. for by
any person whomsoever. petitioners said
son claiming that the said Madden ana
Zane agreed to carry these thirty-etght
shares for the bank In order that Il might
appear that all OF It's capital stock had
been subscribed for. and that the said
A. H. Lane In good faith. accepted the
II 900 being one-haIf OF the par value OF
ia thirty-elght shares OF said stock, be-
uevInQ al the same time that he was
carrying said stock for the bank. and
that Il was nothing more than right and
tnet 10 him that the said bank should re-
,,,,d 90 MIN said 81 300 for said stock and
there was no intention whatever
mon his part TO occupy the
relatlon OF seller OF the banks
stock 20 the bank Itself ana UP 20 tne
..a.o,t time eaid A. r. Lane SIN con-
lends that the foregoing was the only re.
iatlon that he occupied Ia the transfer o.