The Montgomery advertiser., 1905-12-28
MEMPHIS BANKS CLOSE
ANTICIPATION OF RUN THE CAUSE
 OF ASSIGNMENTS.
One of inc Concerns Will Pay Dollar for Dollar, While Creditors of the Other Will Lose
 Money.

Memphis, Dec. 27.--Anticipation of a heavy run on the Merchants Irust Company, III Madison Street, prelimi- nary intimation of which was given oy the withdrawal of many deposits Tues- day afternoon, was the immediate cause of the suspension of that bank ana the appointment of receiver.
 The American Savings Bank and Trust Company, 166 South Main Street, which is dominated by the directorate of the Merchants Trust Company, fear ing that the failure of the other insti- tuition would cause run on It's own deposits. also suspended payment until the affairs of the Merchants Trust Company shall have been adjusted. The American Savings Bank and Trust Company, it develops. recently absorbed the Mechanics Savings Bank, at Main and Calhoun Streets, and took charge of the latter company's business.
 It is stated by the officials of these institutions that the depositors will be fully protected and paid dollar for doi- lar.
 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 investigation of the banks finances are expected to entail a slight loss. The assets of the Mer- chants Trust Company greatly exceed
  Bank and Trust Company. according to it's latest statement, is in excellent condition, and is carrying more ready cash than is usual for an institution or it's size. .-
 The Merchants Trust Company has on hand only s30.o00. the remainder of Its capital being loaned out
 The fact that the bank had over loaned and the stringency of the New York money market, are the direct causes of the suspension. John P. Edmonson. a 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 Saw ings Bank and Trust Company has been named as the receiver of that institu- tion.
 The decision not to open the doors of the Merchants Trust Company today was reached after an a1l-night confer ence of the Board of Directors. Felix T. Pope. President of the Mer- chants Trust Company, gave out the following statement:
 "The Bank is amply solvent and every depositor will be paid in full. "rhe stockholders will undoubtedly realize a large percentage of their in- vestments.
 "The Merchants Trust Company had loaned too much money and was unable | to realize on it's loans fast enough to meet the demands.
 "I am not in position to make state ment now as to reorganization or fu- l ture plans"
 W. A. Percy. attorney for the Mer- l chants Trust Company and the direc- | tors of that institution make the state ment that all depositors. both of the Merchants Trust Company and tpe American Savings Bank and Trust | Company. will be paid in full. I Statements of the financial status oi l the closed banks at the close of busi- | ness December 25
 Merchants Trust Company--Assets s3,665,055; liabilities. $2.132.310. American Savings Bank-Assets | s75S,703; liabilities $75S,703. | The deposits in these institutions ex- ceed $2,000,000.