The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-12-28
ME|MP MS BANKS
CO TO- THE WALL |.
Merchants Trust Company and
American Savings Bank
Suspend Payments.
DEposIToRs PAID IN FULL
.----------------
Officials Say Latter Will Not
Lose a Observation-Disclosures
Suffer 20 Per Cent.
DEposIToRs PAID IN FULL
u,y Associated 1orcss.)

(J}y HSSOClutcuH ITCES)
MEMPHIS. TENN, DECEMBER 27-An-
ticipation OF ~ heavy run on the Mer-
cbnnts Trust Company, No. ii Madison,
street, preliminary intimntion OF which
vas given Ivy the withdrawal of many
deposits Tuesday afternoon, was the i'm
mediate cause Of the suspension of that
bank and the appointment OF Il receiver
to-day.
The American Savings Bank and Trust
Company, No. 17G south Main Street,
which Is dominated by the directors Of
tho Merchants Trust Company fearing
tllht the failure Of the other institution
would cause a run on It's own deposits,
also suspended payment until the affairs
OF the Merchants Trust Company shall
have been adjusted. The American Saw
iEgs Bank and Trust Company II de-
telopcd, recently absorbed the Mechanics
Savings Bank, ut Main and Calhoun
Streets, and took. ,charge Of tho latter
companys business. 1t Is stated ky the
officials OF both Institutions that tho
deposltors will be fully protected and
paid dollar for dollar.
Tho stockholders OF the Merchants
Trust Company, It Is said, will suffer to
the extent OF % per cent. on the capital
invested. as the liquidation of the banka
finances arc expected to entail slight loss.
Tho assets OF the Merchants Trust
Company greatly exceed the liabilities.
The American Savings Bank and Trust
s Company, according to It's latest state
carrying more ready cash than is usual
for an institution of It's size. @
The Merchants Trust Company has on
hand only S;U,0U). The remainder Of It's
capitalization being loaned out. The fact
that tho bank had oterloaned and the
stringcncy OF the New York money mar
kct are given as the direct cause OF the
suspension.
Iohn r. Edmondson. a prominent at
torney OF this city, and one OF the drec-.
tors has been appointed receiver for
the Merchants Trust Company. a.. T..
Allen, cashier OF the American Savings
Bank and Trust Company. has been ap-5
pointed receiver OF that institution.
The decision not TO open the doors OF
the Merchants Trust Company to-day
was reached after an all-nlght session
OF the board Of directors.
Statements OF the financial status OF
the closed banks ut the close OF business
December 2Gth:
Merchants Trust COMPREHENSIVE,
1866 .o55; liabilities. s2132,3l3.
American Savings Bank--Assets, s75S, 783;
liabilities, s75s.7o3.
The deposits in both institutions cx-
coed 100000.
c. W. Shuttle. president OF the Mem
rhis Clearing House Association. Inadc
the following statement in behalf OF the
association: Isl d .al HI l5i ~ ls Il HI "a
Fifteen days ago the Merchants Trust
Company applied TO the Memphis Clear
ing House Association for help.
THE Clearing House Associat ton ap-
pointed q committee to investigate tho
matter. The committee went over the
assets Of ,lie Merchants Trust Company
ms carcfrlly re tia limited time allowed
and the association advanced through tho
Merchants Trust Company the sum OF
$3.50, 900
Subsequent investigation revealed the
fact thar. while II was tho opinion OF the
members II the Clearing House AssocIa-
ton that tho deposltors OF tho concern
arc safe, yet 1t would take an extraordl.
narily LARGE sum to pay all immediate
+ demand
"In the interests OF the city and thu
depostors, and of tho various institutions
or the city. which for the last month had
anticipated some such movement. II was
deemed wisest to allow the concern 10
close It's doors.
Representatives OF the large banks of
New York, Chicago and st. Louis are III
tho city With grca. quantities OF money
in furtllerancc OF the legitimate interests
of tho city.
Old and experienced bankers and mem.
bcrs Of the Memphis Clearing House AS
sociation have tho situation well in hand.
No danger is unprecedented ana the COM
mcrcial interests OF the city are com
petent to meet any situation that is Liable
to arise