The Birmingham age-herald., 1905-12-28
Anticipation of Heavy Run Cau5-
 ed Memphis Trouble
THREE BANKS ARE INVOLVED
President of Merchants Trust Go. Says the Stockholders Will UndoubS S' Realize a Large PercentTS
 &S of Their InvestmerSo

Memphis, December P oS lcipation of heavy run on the Q -lants Trust company, III Madiso' st, preliminary intimation of which given by with drawal of many deposits Tuesday after noon was the immediate cause of the suspension of that bank and the appoint ment of a receiver.
 The American Savings Bank and Trust company, 176 South Main street, which is dominated by the directorate of the Merchants Trust company, fearing that the failure of the other institution would cause a run on it's own deposits. also sus- pended payment until the affairs of the Merchants Trust company shall have been adjusted.
 The American Savings and Trust com pany. it develops, recently absorbed the Mechanics Savings bank at Main and Calhoun streets and took charge of the latter company's business.
 Will Pay Dollar for Dollar. It is stated by the officials of these in- stitutions that depositors will be fully 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 bank s finances are expected to entail d slight loss.
 The assets of the Mercahnts' Trust com- pany greatly exceed the liabilities. The American Savaings Bank and Trust com pany, according to it's latest statement, is in excellent condition and is carrying more ready cash than is usual for an if- stitution of its size. The Mercahnts Trust company has on hand only s3o,Ooo, the remainder of it's capital being loaned ous, The fact that the bank had Ove1loaned and the stringency of the New York mar ket are given as the direct causes of the suspension.
 John P. Edmondson a prominent at torney of this city and one of the direc- tors, has been appointed receiver for the Merchants Trust company. A. Y Allen, cashier of the American Savings Bank and Trust company, has been made the receiver of that institution. the Merchants Trust company today was reached after all-night conference Of the board of directors.
 Felix T. Pope, president of the Mer- chants Trust company, gave out the fol- lowing statement:
 Bank Is Amply Solvent.
 "The bank is amply solvent and every depositor will be paid in full ''The stockholders will undoubtedly re- alize a large percentage of their invest ments.
 "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 future plans"
 w A. Percy, attorney for the Mer- chants Trust company and the directors of that institution. make the statement that all depositors of both of the Amer ican Savings Bank and Trust company and the Merchants Trust company will be paid in full Statements of the financial status of the closed banks at the close of bus mess December 26: Merchants Trust company-Assets, s3,- 655, ,O55; liabilities, s2,132,3l9. American Savings bank-Assets, S5S, ,I03; liabilities, $75S,70 Deposits in these institutions exceed | $2 GOO, 900.
 Since the recent absorption of the Me | chanics' Savings bank by the American I Savings Bank and Trust company the | business of the former concern has been conducted directly by the American.