The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-06-14
New Sensation in The Besse-
mer Bank Failure
DEPOSITORS M HOPEFUL
1t Is Claimed That Cornwall Bought
the Bank In Illegal Manner and
That the Former Owners
May Be Held Liable.

is without an added sensation in connec-
tion with the failure of the Bessemer
Savings bank and this was no excep-
tion to the rule. There was great re-
joicing this morning when the news be-
came known throughout town that those
in charge at the bank had received $12.-
627, and intense curiosity was maintained
as to the source from which 1t came, as
but s760 was found In the vault when it
was opened yesterday in the presence of
number of witnesses.
For time speculation was rife as to
where this additional sum came from.
The following statement, which was
given out this afternoon. explained the
matter:
Statement Given Out.
'sOn Wednesday night when the board
of directors were called together, or
rather met, with Cashier cockrell they
commenced an examination of the hold
ings of the bank. Several Of the directors
were large depositors; some Of them to an
extent that would seriously imperil their
affairs and credit, If their deposits were
sacrificed. They hardly knew where they
stood In relation to their connection with
and duty to the bank. whether 1t was in
the nature of trusteeship or that 1t
would justify them in some measure to
protect themselves. They found, or rather
the cashier disclosed to them, some $4,000
They called in their attorney and the
matter was discussed, and 1t was found
that the aggregate OF the deposits of
four of the directors about eQualled the
funds on hand.
The attorney advised that with the ac-
quiescence of the cashier these directors
take this mones and hold 1t subject to
the developments which might ensue and
the determination of their rightn and
claims in the premises, so each director
became the yustodian OF an amount APP
proximately eoualling his deposit, as fol-
lows: w. ]. Long, s7os7; Sam Lefkovits
$500; A. A. Randle, $2700; J. w. Rarden
$1,000, aggregating $12.627.
On the determination Of the receiver
ship and the final acceptance Of George
H. Stevenson by all interests as the re-
celver, Mr.. Long returned the amount
In his possession to the receiver, and he
was followed in this course by the other
gentlemen mentioned, returning the
amounts in their possession
Drop In the Bucket.
While $4,000 divided among the large
number of depositors of the bank will
prove but drop, in the bucket, it is at
least something, and serves to brighten
the spirits of those who thought they
might lose their all.
If it is decided that the $4,000 worth of
real estate mentioned among the assets
of the Bank of Commerce Is really the
property of the Bessemer Savings bank,
the situation will be still further improved
for the depostors.
r. ci1hctnufia1
dividend might be realized for the deposit
tors that with the cash in hand, the SOL
vent paper and the bank building and
other real estate holdings, probably s45,-
900 to $4,000 will be secured.
CockreIl Talks.
IL d. Coclkrell the cashier, states that
1t was his determination If Captain Corn
wall did not return with some money on
Wednesday, to close the bank Thursday,
as he realized his inability to keep it rum
ming longer on the funds In hand. He
explains his refusal to cash the notes pre-
sented by Birmingham parties after bank
ing hours Thursday afternoon for about
$500 by saying that he did not think 1t
right to pay out money to them then when
he knew he would have to refuse pay
ment to others the next morning.
H. NJ McNutt of Birmingham has been
added to the force of experts at work at
the bank Mr.. McNutt was formerly sec
retary Of the Bessemer Land and Inn
provement company and lived here for
number of years.
Banks Of Commerce All Right.
1t was not at first generally considered
probable that the Bank of Commerce
would resu.ne business, but r. H. Lopez,
the president, states that is the intention,
and that he hopes this can be brought
about at an early date. He adds his as
80 Iaf of ha II T.
Bemis, that the depositors will be paid in
full.
Captain CornwalIs present whereabouts
are unknown as far as the public of Bes-
semer is concerned, though many theories
continue to be advanced as to where he
would be most likely to hide himself.
Directors In Name Only.
Investigation of the accounts of the
bank shows that Cornwall owned the en-
tire capital stock. and that the directors
were merely directors in name only, own
Ing no interest in the bank They had
confidence in Cornwall and simply loaned
him the use of their names.
The facts in the case are that about
three years ago Cornwall, 1t is said, pur-
chased the entire stock of the bank
amounting to 100000, from j. N Car
penter of Natehez Miss, and a party or
parties In New York. Cornwall paid $780,
900 for the stock. The records of the bank
show that at the time he paid this money
he put his note in the bank for s100 900.
In other words, he purchased the entire
stock Of .he bank with the money of the
depositors This, 1t is said, being clearly
illegal, 1t is possible that those deposit
ors who have lost their funds may bring
suit to recover the amount paid to the
former owners of the bank stock by Corn
wall. 1t seems that the bank was entire
ly one-man concern. and that no one
knew anything about its affairs except
Cornwall