The Savannah morning news., 1903-05-14
BANKER WITHAM'S
STATEMENT.


The following is the statement of
w. s. Witham. relative to his connec-
ton with the GAINESVILLE Bank 1t was
furnished by Mr.. Witham to the At
lanta Constitution, and we publish 1t
to assist in setting him right before
the people of the state:
Editor Constitution: At the urgent
request of the people of gainesville
and the owners of the GAINESVILLE Saw
ings Bank l was requested to buy an
interest in the same and become its
president Upon examination of the
bank, 1 found the directors owed the
bank large sums of money which We're
not properly secured.
A year later Dr. r. o. Cotter came
TO Atlanta and again urged my con-
nection with this bank, stating that
he had remedied the banks condition
and that the stock could be bought for
about 80 cents on the dollar. Upon
promises of the directors and officers
of the bank that it would be run in
accordance with the proper methods
of banking and the laws governing
banks, / accepted the presidency.
In less than eighteen months the
stock was salable at more than 500
per share on the streets of GAINESVILLE.
The foreign stockholders sold their
interest in this bank a year before it
failed and at the time of its failure l
had no connection whatever with the
bank The statement of the bank show
ed that the directors had borrowed
from the bank for themselves and for
concerns in which they were largely
interested, nearly three times the capi-
tai stock of the bank.
l1aa Of ri
all parties interested. and an adjust
ment of all affairs of the bank was
reached and more than $50 600 was paid
in by the original stockholders and
other parties, and d satisfactory agree
ment entered into by all interested in
the affair.
suits Entered.
Having obtained all of this money.
suits were filed against the former Of
ficers of the bank, including myself.
During the tendency of suits against
me in Pike county growing out of the
failure of the bank, my attorneys for
bade my publishing any statement in
my vindication. These matters having
been finally disposed of, l am urged
by my friends to give to the public
brief statement of my connection with
the GAINESVILLE Savings Bank.
] was charged in one indictment
with embezzling a small amount of
the funds of the bank, and in another
with having used the capital stock of
the bank in purchasing shares of
stock of the bank. Both of these in
dictments We're predicated upon the
same transa ction. That transaction is
as follows: The directors of the
GAINESVILLE Savings Bank, by resolu-
tion duly entered on their minutes, di-
rected me to establish a branch bank
at Molena, Ga, "and to do all things
necessary" to set such branch on foot.
] went to Molena as commanded by
the board of directors and took up the
smatter with the following persons,
prominent citizens OF Molena, to-wit
u. A. Lawrence, J. =. Carrker, w. II.
and j. NJ. Brooks and Henry G. Jor-
dan. / required that each of them
should purchase five shares of stock
in the GAINESVILLE Savings Bank in or
der to cement their interest in the
branch bank. These gentlemen agreed
to do so, and did purchase the stock.
They, upon their part, however, re-
CURED that / should agree for the
GAINESVILLE Savings Bank that if at
any time in the future they wanted
to set up an Independent bank at
Molena, the GAINESVILLE Savings Bank
would take the stock which they were
thus required to buy off their hands
at its book value, they agreeing upon
their part that they would buy and
pay for all of the office furniture and
other assets at Molena owned by the
GAINESVILLE Savings Bank. The above
was my report to the directors at
GAINESVILLE, and they sent Special
Agent Robert Holmes to Molena
whose report confirmed all of the for
going, and is part of the minutes.
After successfully operating the Bank
Mnlana ffV,,a -
of Molena determined to set up the
Molena bank as an independent bank.
They accordingly paid cash into the
GAINESVILLE Savings Bank for the office
furniture and fixtures and demanded
that the GAINESVILLE Savings Bank
should take their stock off their hands
as agreed. They agreed also in sep
arating TO assume all of the debts and
liabilities of the Molena branch, which
amounted to more than $50, 600 ] was
at that time president of the Barnes
vile Savings Bank, and having re-
ceived from Assistant Cashier Holmes
a notification that he had succeeded
in placing ten shares of the stock al
S125 per share, l drew a draft in favor
Of j. P. Carriker for 1925 and one in
favor of Z. A. Lawrence for S625, to
bothSof which drafts their stock was
attached, and these drafts were pre-
sented and paid. These drafts were
payable to an individual and could not
be construed by the cashier or any one
else as stock bought in by the bank
Mr.. Jordan declined to sell his stock
a all. Before the stock of the Brooks
was bought I had resigned my position
as president Of the bank and the Bank
of Molena drew upon the GAINESVILLE
Savings Bank with the Brooks stock
attached for 1880. and the drafts were
paid This was all strictly in honor
able performance Of the contract made
by the GAINESVILLE Savings Bank and
was Irregular in no respect whatever
The Molena bank during the period
Of its connection with the GAINESVILLE
Savings Bank had made money and
paid into the GAINESVILLE Savings Bank
large sum as profits.
Had the grand jury called for these
drafts and for the minute book Of the
bank these bills against me could not
have been found. for the evidence was
entirely IN my favor rather than
against me.
Another indictment against me was
for failure TO pay deposits. I was only
nominally president ~ the Gainesville
Savings Bank, drawing no salary and
uon-resideut the active mana cement
of the bank during my absence being
entrusted ~ the vice president. new
~ ln any instance received q deposit
Into that bank on paid out a deposit,