The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-28
THREE MEMPHIS
BANKS GO DOWN
Assets Said to Be Ample to Pay the
Depositors.
RESULT OF SPREADING OUT
FAILURE CAUSED LITTLE OR NO
EXCITEMENT.

AZ EMPHIS, Tenn. Dec. 27-Three
IEI institutions failed to open their
doors for business today. The
Merchants Trust company. with cap
ital stock of 100000; the American Saw
ings bank & Trust company, and the
Mechanics Savings bank, smaller in
stitutions allied with the first named
concern, have gone. into liquidation.
The following notice was posted on the
doors of the Merchants Trust COM
pany:
This bank is closed by order of the
board of directors, and will go into
liquidation.
(Signed) FELIX T. POPE.
president
Another notice reads:
This bank has gone into liquidation.
John +. Edmonson has been appointed
receiver"
Assets Are Ample.
The cause of the suspension of the
Merchants Trust company is said TO
have been over-loans on discounts. One
of the directors said to a representa-
tive Of the Associated Press that the
would pay dollar for dollar.
When the officers of the Merchants
Trust company decided to suspend
business, Chancellor Heiskell was
asked to appoint a receiver for the in
stitution, and named John P. Edmon-
son, a Memphis lawyer.
The Merchants Trust company re-
Gently absorbed the Memphis National
bank, and, IL is stated, owns the con-
trolling stock of the American Savings
Bank & Trust company: The latter in
stitUtfon has practically absorbed the
Mechanics Savings bank
The suspension of the three institu-
tons caused little excitement in fnan-
eial circles.
A Run Was Feared.
1t was later learned that the Ameri-
can Savings Bank & Trust company
had actually absorbed the Mechanics
Savings bank several days ago.
IL was stated today that the suspen-
sion of this institution is only tenn
porary and that its affairs are in good
shape. Officers say that the suspen-
sion was decided upon because they
feared a run when the doors We're
opened this morning, the public gem
orally being aware of the banks rela-
ton to the Merchants Trust company.
At the latter institution it was an
nounced that thorough reorganizat ton
would be made, and hope was eX-
pressed that the cOmpanv would again
open its doors for business in a short
time.
A condensed statement of the con-
dition of the Merchants Trust company
at the close of business Dec. 20 was
civ ,4rf al
Total assets, S3,665 055: indebtedness
Of every character to depOsitOrs. 81
49,, 319; all other obligations exclusive
Of capital stock. $3.50 05S; cash actually
on hand. $4,000.
Aided by Clearing House.
C. w. Schultz, president of the Mem
phis Clearing House association, made
the following statement in behalf Of
the association:
Fifteen days ago she Merchants
Trust company applied for help to the
Memphis Clearing House association.
The Clearing House association ap-
pointed & 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
the sum of $3.50, 600.
Subsequent investigation revealed
the fact that while it was the opinion
of the members of the Clearing House
association that the depositOrs of the
concern are safe, yet it would take an
extraordinarily large sum 10 pay all
the demands.
I'm the interests OF the city and
depositors and of the various institu-
tions of the city, which for the last
month have anticipated some such
movement, il was deemed WiseSt to- al
low the concern to close its doors.
Other Banks Safe.
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.
1T is deemed advisable that no I'M
due excitement be INDUCED in. Old
and experienced bankers and members
of the Memphis Clearing House asso-
citation have the situation well in hand.
No danger ia apprehended and the COM
mercial interests Of the city are COM
petent to meet any situation that is
liable to arise"
Major G. w. McRae. president of the
Memphis Savings bank. said:
II believe the liquidation to be a re-
suit of taking on too much business by
the Merchants Trust company, too
much spreading out and too large ad-
vances in purchasing other properties"