Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-08-25
BANK INVESTIGATION
STIRS GAINESVILLE
Entire Town Is Excited
Over New Move
of DEPOSIT
tors.
az MILL SAUL.

BY MILF SAUL.
BARNFsVILLE. Ca. Aug. 23.-That in
tense feeling which ran rampant in last
DEFENDERS days. following Barnesville's
double bank failure. Is duplicated today
and the business heart OF the thriving
town IS scared with the same hot passion
that arose at the first announcement OF
the suspension Of the GAINESVILLE Savings
bank and the New South bank. There Is
more bitterness in the feeling today, now
ever because the business heart, torn
then BY the financial losses. is infiamed
now with a strong suspicion Of inegality
IN the management OF the banks ana a
deep set determination TO punish the
guilty managers IL the suspicion Is proven
70 be well founded.
The employment OF Dupont Query and
a A. Murphy as counsel 10 push in Pike
county court the investigation OF the
banks and their management is the direct
cause OF the renewed interest in the bank
failures The depositOrs who lost their
money in the banks employed the attor-
neys Indictments by the grand jury are
standing against the bank officials and
these attorneys Will assist the states at
torney IN the trials at the October term
OF Pike county court.
Rigid investigation Is On.
The employment of the attorneys is
merely the first step in the rigid investiga-
depositors 70 assume at this time that
the banks were looted by the bank Of
ficials. They merely assert that their
money. or its equivalent securities. when
the hank doors were closed. was. or should
have been. on the side OF the counters
where the officials were and they want
an accounting. II the court investiga-
ton proves that the banks were looted
then the deposit0rs want the proper pun
tshment dealt out TO the officials. On the
other hand. II the investigation shows
that the money went through other chan
nels than dishonesty. the rumors and sus-
picfons that are now affecting the towns
prosperity win be allayed and the Of
fcials set right in the public mind
fairer proposition. they assert. could not
be asked Of a set Of business men who
are carrying the burden OF a financial loss
amounting 20 thousands OF dollars. What
ever the decision OF the court may be. the
depOsitOrs viii be satisfied with II. but
they are determined that every stone will
be upturned and every corner Of the case
explored before the decision Is rendered
Notwithstanding the conservative posi-
ton OF the depositOrs the town proper Is
intensely excited In watching the progress
Of the Investigation 10 see II guilt or in
nOcence l. proven for the bank officials.
All the men concerned IN the management
OF the two banks are well known and
highly Connected in this section Of the
state Each has hts friends and relatives
- nHrk him - a bis claims OF clean
hands n the bank failures. These claims
are heard on the streets daily. along with
the rumors and stories OF various char
acters concerning the failures. Street
Nights have been on several occasions mar
rowiy averted and II may be the situation
VIII yet lead 20 personal encounters.
Savings Bank Failure.
The GAINESVILLE Savings bank ran about
nve years " s William. the president
Is said 70 have resigned about thirty days
before the hank failed. leaving the man
agement in the hands OF the cashier and
assistant cashier The crash came when
about 5000 Of depOsitors' money or its
security was supposed TO be IN the vaults
u was about the first OF last December.
The dspositors had made a run on the
bank the day before the doors were closed
and when il was announced that the run
had cleaned out the hank those who were
not so fortunate as 10 get in the line the
first day set up clamor for their money.
The announcement was a complete sur
prise as the business men OF the town
considered the bank absolutely safe and
sound in every particular. About $4,000
was due 70 the depositors. Walter r.
Smith was made receiver
After trying IN vain for several months
20 get any considerable portion OF their
deposits from the defunct institution. the
oepositors finally agreed on a cornDron,ise
the compromise they received one-third Of
their deposits IN stock OF the BarnesviIIe
Manufacturing Company and the balance
IN two certificates. one payable in Ian
uary' lsos. and the other in January. 1904.
at per cent interest the certfac...s
backed up by $500 bonds.
The oeposftors would not agree how
ever, 70 a proposition that no crfn,fnaT
suits should be pushed against the banlrss
ofncers They had determined then that
the banks management should be inves-
ugated In court. and II was this detern,I-
nation that led 10 the employment OF
counsel last week. In the meantime the
grand jury met and indicted the three or
fcers OF the bank after hearing, state
ments from number OF the depositors. II
was charged that the bank received de-
posts when the officials knew II was in
solvent
New South Bank Failure.
The New South bank went down aInos,
simultaneously with the GAINESVILLE Saw
ings bank, though II has not been shown
that there was any connection outside Of
ordinary business relations existing he
tween the two institutions. II was only
q day or 50 after the first SUSPENDED thar
a run was made on the New south and
the suspension OF that bank followed the
first days run.
The town was literally paralyzed al the
news OF the second failure There was
Que deposltors ny this bank about $40 600
and the fact soon became apparent that
practically none OF the money could be
paid 7. ". Cochran was made receiver
for the institution and after working six
months he managed to get in about $500
but the cost OF collection left little for
the depositorE. he made a report to the
court showing the assets 20 be 81 Ol9 with
liabilities OF sane but he added a state
ment that the GAINESVILLE Savings bank
claimed the New South bank owed IL a
sum OF money. the claim being commonly
reported IN GAINESVILLE as $500 This
claim the New South bank officers deny
and there IS a mystery connected with Il.
The grand jury indicted the officers Of
the New South bank along with the saw
fnEs bank officers and the Investigation OF
their management Eill be made along with
the Investigation Of the savings bank
management
No expert examination OF the New
South's books has been made. There Is
an effort on foot now 10 have an expert
employed for the purpose. The depositors
want the examination. and Il will proba-
bly, be made when they can select the man
from several who have been mentioned.
Officers Borrowed Money.
The receivers report. however. shows