The herald and news. [volume] (Newberry S.C.) 1903-1937, 1906-08-31

set by Withdrawals by persons who
heard rumors of the company's condi.
ton. The money deposited since
Saturday will, however, not be re,
turned to the dcpositors, but will lie
in the Franklin National bank unit
the courts have decided whether il
shall be paid back.
While the depositors were suppos,
edly placing their money with the real
estate company the directors were
making strenuous efforts to tide the
institution over the difficulty. All
day Monday they worked, but il
became apparent shortly after noon
Tuesday that the clash was inevitable
Application papers for temporary
receiver were prepared and left at the
offices Of the trust company. after
which the directors went to the meet
ing of the clearing house association
to make last appeal for help. The
newspapers were aware of the trend
of events and had men stationed at
the bank building ready to flash the
closing of the bank if it occurred.
There were probably so bank presi-
dents at the clearing house to meet
the directors of the trust company.
The latter stated that they needed
$7,000,000 hut the best the banks
could do was to guarantee $3.500,0 ,000
This was not enough and as all other
means for getting money had failed
Vice President Houston tclcphoned to
the bank to suspend business and send
the receivership papers to court.
In an incredibly short time the
story was on the street and created
great CONSERVATION. Hundreds of
persons gathered about the building
rlamoring for information and he
crowd grew SO great that detail Of
police was sent for to clear the street.
There was no disorder.
The application for the receiver
says That the company has a paid up
capital Of $l,500,000 and apparent
surplus Of an equal amount and de-
posts of aboYt $10,000,000. The as
sets consist of real estate in Phildcl-
phia. loans upon collateral upon de-
mand and on time and other srruri-
ties. President lIipplc. tile applica-
tl"n says. "bv false reports to the
directors of the loans made by him,
brought about the condition Of the
company which was first discovered
by the Officers of the bank subsequent
to tn" death Of the president. The
court then appointed Mr.. Earle re-
ccivcr and he entered security to the
amount of $1,0O0,0OO.
After his appointment, Mr.. Earle
held conference with the directors
and Officers Of the company, at which
the receiver was put in possession of
the condition of the company so far
as the officials of the concern could
inform him. AT the close of the con-
ference. Mr.. Earle made the follow
ing statement:
The Receivers Statement.
''Whist | appreciate the danger of
statements until have made
Il thorough examination, | think it
my duty to state that in my effort
to keep this institution, I have nee
eSSarily ascertained a great deal con-
ccrning its condition. This knowl-
edge brought me to the conclusion
that the company should not be per-
mitted +" fail and that conclusion
still is so strong with me that I be-
lieve. although it may be against my
own interest, that the rcceivership
should not be continued any length of
time. 1t is my hope that so soon as
! may verify my present beliefs, l
can recommend plan to the de-
p"sit"rS that will better serve their
Interests and terminate my services. -
John II. Michener, president Of the
clearing house association, in an in
terview tonight said the failure of the
association to subscribe the $7,000,-
600 guarantee fund requested by the
Real Estate company was due to in
sufficient security. The Trust com
pany, he said, offered $2,900,000 in
gilt edge securities, a two-thirds in
tcrest in the trust company's building
valued at $2,00O,000 and $5,3OO,OOO
securities from the. Scgal securities
worth more than $1,000,000.' and de-
chned to subscribe more than a total
of $4.000,000 unless the remaining Sc
cnritics were fore substantial.
Samuel f. Houston, vice president