The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1905-08-25
A Report on Western National
Expected Soon.
Large Loans Are Said Ia Have Caused
the Comptroller To Order II
Closed.
EXPECTS TO RESUME SHORTLY.

W. thornton, appointed receiver OF
the Western National Bank by the
controller of the currency, arrived in
Louisville from Texas and at once as
sumed chargc of affairs at the bank.
He said he could not tell when his re-
port would be ready.
The schedules and reports of Ex-
amlner Garrctt have not yet been
completed and II may be several days
before they are. They will be sub
mitted first to Mr.. Thornton, who, In
turn, will s-nd them to the controller
In Washington. The investigation of
the books continues and Mr.. Garrett
said there had been no recent de-
yelopm nts of special note.
Mr.. T. l.. Jefferson, president of
the bank, continues to make his
headquarters at the bank and is do
ing everything in his power to assist
the government officials He said
that he has not yet had time to make
definite plans for reorganization or
resumption. Conferences are being
held, however, which add strength to
the report that as soon as the recelv-
er completes his work move will
be made toward rehabilitation.
During the last two days of examl-
nation into the condition of the bank,
il Is understood that the condition OF
The institution has been steadily I'M
proving and that the chances 70"
paying out should liquidation be
necessary, are brighter than ever be-
fore. According to a statement made
by an official clos ly connected with
the bank. the paper which Is falling
due is being paid promptly, and sew
eial pieces considered doubtful have.
proved good. II Is said that several
large loans of large amounts have
been made.
According to the law governing
the business of a national bank, a
bank is not allowed to loan to one
association, Arm OF individual. or the
members OF such firm or association
more than one-ienth of it's capital
stock
Section 5200 of the National Bank
Act reads as follows:
Restriction on Loans-The total
liabilities to any association. or to
any person. or 10 any company. cor
poratlon or firm, for money borrowed,
including in the liabilities of a COM
pany or firm the liabilities of the
several members thereof, shall at no
time exceed one-tenth part of the
capital stock of such association, act
ually paid in. But the discount of
bills of exchange, drawn in good faith
against actually existing values and
the discount of commercial or bust
ness paper. actually owned by the
person negotiating the same, shall
not be considered as money borrow
ed. +"
This section Is included In section
10 of the banking laws book
compiled by the controller of the cur
rency
The penalty for accepting such
loans as provided in the act is said to
be closing of the bank on the part
of the controller OF the currency or
his agent. Prominent members of
the board of directors of the Wes--
ern National bank have been reported
as saying that two loans amounting
TO 100000 have been made by the
bank The discovery of these loans
on the part of Mr., Garrett, the exam
liner, may have been the cause of his
sudden action I'm demanding a com
plete compilation of the standing OF
the bank.
Mr.. Garrett examined the books OF
the bank for two days, and from in
dicatlons and the expressed belief of
the officials of the bank. he was about
TO allow the bank to continue bust
ness. Early Monday morning he
went to the bank to complete his ex-
animation, and 1t was only a few
moments after his last visit that he
sent the telegram which resulted IN
The brder TO close the doors. Wheth
err the discovery of the excessive
loans was made just previous to the
dispatch of the telegram or not is