The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-12-29

Memphis, Tenn, December 21.-An-
ticipationof a heavy run on the Mer-
chants Trust Company, IL Madison
street preliminary intimation Of which
was given by the withdrawal of many
deposits Tuesday afternoon, was the
| immediate cause of the suspension of
| that bank and the appointment of a
| receiver today
The American Savings Bank and
Trust Company, 176 south Main street,
| which is dominated by the directors of
the Merchants Trust Company fearing
| that the failure of the other institution
| would cause run on it's own deposits,
also suspended payment until the af-
! fairs of the Merchants Trust Company
shall have been adjustd. The Ameri-
! can Savings Bank and Trust Company,
| it developed, recently absorbed the Me-
chanics Savings Bank, at Main and
Calhoun streets, and took charge of
the latter company's business. 1t is
stated by the officials of both institu-
lAOuS tHdC Tic Will Iully
protected and paid dollar for dollar.
The stockholders of the Merchants
Trust Company, it is said, will suffer
to the extent of 20 per cent. on the
capital invested, as the liquidation OF
the banks finances are expected to en-
tail slight loss.
The assets of the Merchants Trust
Company generally exceed the liabil-
| tiles.
The American Savings and Trust
Company, according to its latest state
ment is in excellent condition and is
carrying more ready cash than is
| usual for an institution of it's size.
The Merchants Trust Company has
en- hand only $4,000, the remainder of
it's capitalization being loaned out.
The fact that the bank had oyerloaned
and the stringency of the New York
market are given as the direct cause
of the suspension.
John = Edmondson, 4 prominent at
torney of this city and one of the di-
rectors has been appointed receiver for
the Merchants Trust Company. A. Y.
Allen, cashier of the American Savings
and Trust Company has been appoint
ed receiver Of that institution.
The decision not to open the doors of
the Merchants Trust Company today
was reached after an all night session
of the board of directors.
Felix T. Pope, president of the Ner-
chants Trust Company, gave out the
following statement:
The bank is amply solvent and
every depositor will be paid in full.
ctn hn1 u
realize a large percentage of their in
veStments.
1.-The Merchants Trust Company had
loaned too much money and was una
BILE to realize on its loans fast enough
to meet the demands.
II am not in position to make
statement now as to reorganization or
future plans"
". A. Percy. attorney for the Mer-
chants Trust Company and the direc-
tors of that institution make the state
ment that all depositors, both of the
Merchants Trust Company and the
American Savings and Trust Company
will be paid in full. Statements Of the
financial status of the closed banks at
the close of business December 2f:
Merchants Trust Company, assets
So, ,e65, ,0J5; liabilities s., ,132, ,319.
American Savings Bank, assets
S15S. sS3: liabilities S75S, ,703.
The deposits in both institutions ex-
ceed 100000
G. w Schultz, president of the Mem
phis Clearing House Association made
the following statement i'm behalf OF
the association:
Fifteen days ago the Merchants
Trust Company applied to the Memphis
Clearing House Association for help
1.-The Clearing House Association ap-
pointed a committee to investigate the
matter The committee went over the
assets of the Merchants Trust Com
pany as carefully as the limited time
allowed and the association advanced
through the Merchants Trust Com
pany the sum of $4,000.