The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-22

The stock of the bank has been subject
10 sharp declines on the Pittsburg Exchange
this week. On Monday the stock sold down
from lis to So, but was forced up again to
101
All day yesterday it sagged and the clos
ing quotations were 80 bid and So asked a
number of transactions having been made
at 80. The course of the stock has attracted
much attention, and numerous adverse
ports were in circulation, but they were
promptly and fully denied by President j.
y. Langfitt- He stated yesterday evening
that the bank had suffered only one possi-
bic loss. that of $4,000. for which ii held
notes of the Eastern Tube Company, of
GAINESVILLE, o. That company is In the
hands OF receiver and a plan of reor-
ganization is being worked out, he said.
and the banks losses on that account may
be small.
Following is the signed statement of
President Langfitt: THE Federal National
Bank has finally yielded to the combined
assaults of it's stockholders and depositors
and has closed It's doors until ARA ngements
can be made to discharge all depositors'
claims. The question of reopening will
then be decided. When the business de-
preston came the stockholders from
necessity or fear. began throwing the stock
upon the market. The stock issue was
large and the market weak. Thereupon dis
quoting rumors sprang into birth, ground
less. baseless and perhaps in some cases
malicious These increased the weakness of
the stock. and the weakness increased the
rumors until our splendid list of depostors
took fright and the rapid withdrawal OF
daily until, despite our best efforts to call
in loans and provide funds, the bank could
no longer meet the demands upon il, and
drastic measures became necessary Our
demand loans could not all be collected
forthwith and oar time notes had not yet
matured Last night the directors beliey-
ing such course to be the proper one under
the circumstances. ordered the bank to be
closed temporarily and requested the con-
troller of the currency TO take charge
Two weeks ago our deposits exceeded
four million dollars and until yesterday
when the floods came, we had maintained
our full legal reserve. Nobody has de-
faulted or committed suicide, or absconded
The board of directors is and has been al
ways loyal 10 the bank and in full accord
and harmony. We have had no actual
losses, and, with one exception our COM
bined losses up TO date would not aggregate
one-half of 1 per cent. of our capital The
exception referred TO is our claim against
the Eastern Tube Company. which may or
may not result in loss, and even If a total
i'm full out of our individual profits of $780,
900 without touching either our capital of
100000 or surplus OF 100000
The officers and directors are but the
servants of the stockholders and trustees
for the depositors. They have tried their
utmost to prevent this climax-this acme of
financial stupidity and money madness
When all other efforts failed to stem the
tide. they sought the financial help of the
committee of associated banks OF Pittsburg
and received most courteous and kindly
closed we had approximately s1,9OO.OOO of
deposits to secure which we had on hand
in cash. time and demand loans and other
good securities about St.6OO,o00 This was
Cur condition after having paid out TO
depositors I'm addition to current receipts
and disbursements over s2.0O00O0 within
fifteen days in period OF generally strenu-
financial conditions. Despite this full
and ample security, quickly available our
depositors seemed almost frenzied in their
haste 10 get their money lest they should
lose it all. There is not and never