Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-27
FAILURE AT MEMPHIS
TRUST COMPANY AND TWO Al
LIED BANKS CLOSED DOORS.

MEMPHIS. Tenn. December 27.-Three
| financial institutions failed to open their
| doors for business today The Merchants
Trust Company, with a capital stock of
, 500 900; the American Savings Bank and
Trust Company and the Mechanics Savings
Bank, smaller institutions and 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 liquidation.
(SigneD FELIX T. POPE. President"
Another notice reads as follows:
This bank has gone into liquidation John
P Edmondston has been appointed re-
ceiver."
The cause of the suspensions of the Mer-
chants Trust Company is said to have
been over loans on discounts. One of the
directors said to q representative OF the AS
ISOLATED 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 HeskeH was asked to appoint re-
ceiver for the institution. and named John
p Edmondson, Memphis lawyer.
The Merchants Trust Company recently
absorbed the Memphis National Bank. and
1t is stated owns the controlling stock of
the American Savings Bank and Trust
Company.
The latter institution absorbed the Me-
chanics' Savings Bank several days ago.
The suspension of the three institutions
caused little excitement In financial circles.
Suspension Temporary.
1t is stated that the suspension of the
American 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 generally
being aware of the banks relation. to the
Merchants Trust Company.
At the latter institution 1t was announced
that thorough reorganization would be
made, and hope was expressed that the
company would again open its doors for
business in short time.
condensed statement of the condition
of the Merchants Trust Company at the
close Of business December Is was given
out. as follows
The Last Statement.
Total assets $3.50 .o55: indebtedness of
every character to depositors ST. 1872, 319; all
other obligations exclusive of capital stock,
$Ss9.O5S; cash actually on hand. $4,000
The American Savings Bank and Trust
Company gave out the following statement
of its condition, which includes the bust
ness of the Mechanics Savings Bank:
Assets: Loans $685.. 092; bonds, So 200; fur
niture and fixtures, s4,3+5: cash hand
and due from other banks, $166,O66; total.
$75S, 7O3.
Liabilities: Capital stock $4,000 due
Merchants Trust Company for capital stock
OF Mechanics Savings Bank. $4,000; sur
plus S2.61G; deposits, $6O9, $50; rediscounts,
$1,000; due banks and bankers. 1926; In
terest account (profiD, s1S,9s6; dividend
checks. $50; certified checks 81 1872; CASH
iers checks. SS1; total, $75S, 703.
CIoarinn uo,,.o
c. w. Schultz. president of the Memphis
Clearing House Association, made the
following statement in behalf Of the as
ISOLATION:
Fifteen days ago the Merchants Trust
Company applied to the Memphis Clear
ing House Association for help.
The Clearing House Association ap-
pointed committee to investigate the
matter. The committee went over the as
sets of the Merchants Trust Company as
carefully as the limited time allowed and
the association advanced through the
100000
subsequent investigation revealed the
fact that while 1t was the opinion of the
members of the Clearing House -Assocfa-
ton that the depositors of the concern
are safe, yet it would take an extraordi-
narlly large sum to pay all immediate de-
mands
In the interests of the city and the de-
positors. and of the various institutions
of the city, which for the last month had
anticipated some such movement. 1t was
deemed wisest to allow the concern to
close its doors.
Representatives of the large banks
of New York. Chicago and ST. Louis are
in the city with great quantities of money
in furtherance of the legitimate business
interests of the city.
odd and experienced bankers and MEM
bers of the Memphis Clearing House AS
ISOLATION have the situation well in hand
No danger is apprehended and the COM
mercial interests of the city are Jmpe-
tent to meet any situation that is liable
to arise"
Statement From New York.
NEW YORK, December 27.-According to
recent statement the Merchants Trust
Company of Memphis. Tenn, owed deposit
tors s6O5,OG
The American Savings Bank and Trust
Company of Memphis, Tenn, according to
recent statement. owned depositors s625,-
900.