Omaha daily bee., 1905-12-28
THREE HOUSES CLOSE DOORS
Two Banks and One Trust Company
suddenly GO Ont of
Business.

MEMPHIS. Dec. 27.-Threo financial in
stitutions failed to open their doors for
business today. The Merchants Trust
company, with a capital stock of 10000
the American Savings Bank and Trust
company and the Mechanics Savings bank
smaller institutions allied with the first
named concern. have gone into liquidation.
The following notice was posted on the
doors of the Merchants Trust company:
This bank is closed by order of the
board OF directors. and will go into liquida-
ton FF IboT. POPE, President"
Another notit 70 DIS as follows:
This bank hs- gone into liquidation.
John p. Edmondson has been appointed
receiver"
The cause Of the suspension Of the Mer-
chants Trust company is said to have been
over-loans on discounts. One of the di-
rectors said to a representative Of the
Associated Press that the three institutions
| had ample assets and would pay dollar for
| dollar
When the officers of the Merchants Trust
company decided to suspend business Chan
! cellor Heiskel was asked to appoint o re-
\ ceiver for the institution and named John
| p. Edmondson, a Memphis lawyer. The
| Merchants Trust company recently alb
| sorbcd the Memphis National bank and, it
! is stated, owns the controlling stock Of
/ the American Savings Bank and Trust COM
pany. The latter institution has practically
absorbed the Mechanics Savings bank
The suspension of the three institutions
caused little excitement in financial circles.
| 1t was later learned that the American
Savings Bank and Trust company had
actually absorbed the Mechanics Savings
bank several days ago.
II was stated today that the suspension
| of this institution Is only temporary and
that its affairs are in good shape. Officers
! say that the suspension was decided upon
because they feared a run when the doors
were opened this morning. the public gen
orally being aware of the banks relation
to the Merchants Trust company.
At the latter institution it was said that
a thorough investigation would be made
and hope is expressed that the bank would
again open its doors for business in a
short time.
A condensed statement of the condition
of the Merchants Trust company at the
close Of business December 26 was given
out follows: Total assets, 1856 O55; in
debtedness of every character to deposi.
tors $2lS2,3l9; all other obligations, exclu.
sive of capital stock, $ss9.O5S cash actually
on hand, $4,000
Major @. w. MacCrae, president of the
Memphis Savings bank said
l believe the liquidation to be a result OF
taking on too much business by the Mer
, chants Trust company; too much spread
ing out and too large advances in pur
chasing other properties.
c. w. Schultz, president Of the Nemphi
! Clearing House association. made the fol
lowing statement in behalf OF the dssocia
ton:
, Fifteen days ago the Merchants Trus
: company applied for help to the Memphi
Clearing House association.
The clearing house association appointe.
3 a committee to investigate. the matter
, The committee went over the assets of tn
% tiis limited tTms me fioIes ad fsts he Dssocia a
ton advanced through the Merchant
y Trust company the sum OF $4,000
Subsequent investigation revealed til
fact that while it the. opinion of tn
e members of the clearing house ussocia
= tion that the depOsitors of the Concer
D., are safe, Yet 1t would take an eXIraord
narily large sum TO pay all immediate de
! mands.
y In the interests Of the city and the dc
positors and OF the various institutions q
the city, which for the last month ma
: anticipated some such movement, it Wa
: deemed wisest TO allow the concern I
= close its doors.
Representatives Of the large banks {
$ New York, Chicago and st. Louis al
- in the city with great quantities Of none
. in furtherance of the legitimate busines
u interests of the city.
r 1t is deemed advisable that no undu
Il excitement be INDUCED in. Old and g,
=. perienced bankers and members Of II
Memphis Clearing House association haN
O the situation well in hand. No danger
a apprehendrd and the commercial lm,ercs
OF the city are competent to meet an
situation that is liable To arise.
NEW YORK, Dec 1.-THE America
a Savings Bank and Trust company of Men
;, phis, Tenn, according to a recent stat
. rneut owed depositors S625 OpO