The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-22
terost. some of Theses notes run for

y - W. OF NIleS$ years. II.
MIR. Montague stated that the actual
amount OF the debt OF the American
Guild to the Interstate Bank was only
( $4,000. which, considering It's deposits
monthly. Is n small sum-.
The blu alleges that the action of
the board in making n contract With
the Bank Of Commerce and Trusts Is
illegal and therefore void AS to this.
Mr.. Montague said tho defendants Will
say In their bill: "rhis Is denied. and
tho defendants assert that this Is both
legal and highly proper We claim
that 1t was the best thing that could
possibly be done"
AS to the allegation of the bill that
the bank BY this action has sought to
dissolve itself and to wind up It's nf-
fairs, Mr.. Montague said that the
{ Southern Interstate Bank has called II
meeting OF It's stockholders for June
list TO approve the action of the di-
rectors. and that It Is known that u
majority in interest or the stockhold-
ers indorse 1t. When asked IL ~ ma
jority of the stockholders as we'll as
a majority of tho stock vote Endorsed
the plan, Mr.. Montague could not an.
swer positively He said: 1T is he
lievod that practically all except those
stockholders interested in this suit Will
~-fI1'-o.' v ~ t''tioil VI Tie pOHr0.1
Report Concerning Loans NIndc
Owing to the iinpossibility of pre-
paring the necessary papers in order
that the application might be heard
and because the attorneys had other
engagements, 1t was dccmed best to
tlA tomorrow as the day for argument
OF the application for Il receiver
Attorney John a. Lamb has made an
examination of the books of the bank,
as he was autho.czed by the court
yesterday to do. Among other things
Mr.. Lamb states that the books and
papers of the bank show that large
sums have been loaned to officers and
former officers of the American Guild
by the Southern Interstate Bank, these
loans being secured By Endorsements.
by real estate security and various
stocks as collateral DR.. S. Galessi,
president OF tho bank and supreme
governor of the guild, according to
this examination. has made the fol-
lowing loans: He has discounted at the
bank the notes of j. Osho, of Phila-
delphia, for s23,0O0 payable at the
rate of $500 per month, the last note
being due in 1915, unless sooner anticl-
pated and retired The books show
that DR.. S. Galeski discounted eighteen
notes for $500 each, making a total Of
$4,000, with the American Guild as
security.
According to Mr. Lamb. the bank has
made loans to Judge Beverly r. Crump
aggresating $7,740. divided as follows:
The sum Of $4,000, secured by 1000
shares Of the American Guild stock,
OF the par value of 81 per share: the
sum Of 1915, for which he gave as
security three shares OF the stock of
the James River Coal Company; the
sum of s1,525, for which he gave as
security 5000 shares OF the stock Of
the Atlantic and Pacific OIL Company;
the sum of $1,000, for which he gave
an security so shares of the stock Of
the Mason Park Land Company, near
Manchester: the sum of $40. for which
he gave the American Guild as In
dorser; total, s7.74O
Tho following loans are said to have
been made by the bank to Mr. Joseph
B. Montgomery, supreme treasurer of
the American Guild, according to Mr.
Lambs statement of the result of his
investigation Of the banks books and
papers: The sum of sl,770.45. for which
deed of trust on certain property on
Cary Street, lin Henrico county. is
given as security; the sum Of $2,477.SG,
for which he gave as security the in
dorsement of his wife and 500 shares
OF the stock Of the Ohio and Western
OIL Company. of tho par value of $40
per share: the sum of s1.925.7S for
which 1000 shares of the stock of the
Southern Interstate Bank were given
as security; the sum of $240 secured
by the Endorsement of his wife: the
sum of $500. for which w. L. Warning
is indorser: the sum of 5000, for which
he gave as security a note Of Samuel
REGISTER for $500; the sum of $500, for
which hc gave as security DR.. Stone,
or this city.
Statement OF DIR. Gnlcski.
Dr. S. Galeski. president of the
Southern Interstate Bank and supreme
governor OF the American Guild, when
asked for statement as to the suit
against the bank, and as to its loans
and affairs. said:
AS to the allegation that the guild
owes $4,000 to the bank. as published
yesterday, 1t did owe this sum. but
most OF this has been paid; all but a
small amount. In fact. The American
Guild has always been able to take
care of any of its loans, and is still
doing So. =.
When asked ms to the Ohio and
Western OIL Company and the value
OF It's stock, DR.. Gnleski said:
i haven't any idea; but believe 1t
Is SO per share, par. But / do not
own any of it. and therefore know
nothing as to its value"
Judge Beverly T. Crump. when asked
as to the suit and the allegation that
certain officers Of the guild and ex-
officers had borrowed from the Inter-
state Bank. stated that he had moth
Ing to say, not being an officer or
stakeholder of the bank. He had bust
ness with the bank which handled
some of his paper but he had always
been: able to meet his paper in any
bank, and his business affairs were
his own private business.
Mr.. Montgomery could not he reach.
ed. even by telephone last night. HI
resides at Bon Air. and had left the
city earlier in the evening, and hai
not a phone.
Indebted to Bank.
1t may be of interest to note tina
tho joint report of the Insurance Com
m!ssoners of Maryland and Virgni,
on he examination Of the American