Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1906-02-16
Bank in Hands of Receiv or.

TIE Bank Of America in Chicago ir-
corporated last December, with capital
stock of $3.50, 900, last night was placed
in the hands of receiver by Judge
Chylraus, of the Superior Court, on COM
plant of John +. Kavanaugh, q stock.
holder. The bill asking for the receiver
ship holds former Judge Abner Smith,
president, and three other officers of the
bank responsible for the alleged insOl-
yeucy of the institution.
In the few weeks since the opening Of
the bank, President Smith is charged
nth having so manipulated securities,
mortgages, and notes, aud the stock of
the bank that he has obtained amounts
agg egeting SAG, 900.
The other three officers who, in con-
nection with President Smith, are held
responsible for the alleged insolvency of
the bank are G. +. Sorrow, vice presi-
dent Jerome Y. Pierce. cashier, and +.
+. Crerlman, a stakeholder and director.
/ is charged against these officials, to-
gelber with President Smith. that they
had absolute control of the bank and its
funds; that they have dominated the
directorate of the bank; have d)ne as
they pleased with the funds of the bank
have voted themselves such salaries as
they desired, and have loaned the money
of the corporation on such secutilies
rs they saw it,
The operations of President Smith and
the other officers mentioned In the bill
are said to have beer begun before the
bank opened for business.
Judge Smith is said then to have bor-
wed money and placed it in the treas
ury to deceive the State aud tor into be-
lieviug that The stock had been paid up.
President Smith was one of the prime
movers in the formation of the bank,
having subscribed for $40, 900 of the
stock.
Information as to the al legged insol-
yency of the bank is said to have come
to the notice of Kayanaugh and other
stockholders two days ago ln order to
prevent, if possible, run on the bank,
il was decided to file the bill for the ap.
pointment of receiver at night
Notice was served on President Smith,
but he did not appear in court or send a
representative.
The court entered az order appointing
Daniel j. Healy, a stakeholder, receiver,
in bonds of $3.50, 900. Mr.. Healy took
charge OF the bank.
It il alleged that President Smith bOr-
rowed $40, COO from the bank. giving
in return notes signed by his vile and
his brother-in-law which are declared
tn be of little value; that within few
weeks after the bank opened for bust
ness Smith secured $62, 500 from tie
bank for himself, giving in riurn real
estate mortgages which are said to be in
adequate security.
1t is also alleged that President Smith
entered into contract with +. K. Creel-
man, stakeholder, by which the latter
Vas to subscribe to 25O shares of the
stock, and was to be permitted to with
draw $3.50, 900 from the bank at any
time he wished. This contract, it is
stated in the BILL was carried out, and
Creelman withdrew, il is said, nearly
5000, 900, giving in exchange drafts on
other corporations 10 which he is inter
ested. Many of these drafts, it is assert
ed, were sent back unpaid until Creel-
man owed the bank $50, 900.
President Smith wss member OF
the Cook county bench for many years,
hayin retired from the court in 1904