The Montgomery advertiser., 1907-12-23
Clearing 1ouse Declines
 t Extend Aid.
STATE EXAMINERS IN CHARGE
Neal Bank, State Depository, Has
 Deprecated Securities.
Governor Smith Denies That He Has Been Requested to Declare . Weeks Holiday To Prevent
 Other Runs.

Atlanta, Ga, Dec. 22-Following two days investigation of the affairs of the Neal Bank. one of the largest State repositories in Georgia, 1t was decided tuition in the hands bf the State Bank Examiner. The Clearing House Asso- citation issued this notice:
 ITO the Public:
 After duly considering the character of the assets and resources of the Neal Bank. and investigating its affairs as far as possible. for the purpose of ex- tending to 1t such assistance as its con- dition would warrant. we regret that we find the investments and loans of this bank are of such character that in our opinion they cannot be readily converted, and therefore we do not feel warranted in rendering the assistance that its present necessities require.
 Interest of Deposttors.
 we believe that the interests of the depositors and creditors will be best conserved by allowing the bank to con vert It's assets through the State offi- cials as provided by law. We hope that by the adoption of this course, cred itors and depositors will ultimately be paid.
 (Signed) "The Atlanta Clearing House Association: Atlanta National Bank, Lowry National Bank. Fourth
 
 ing Company, Third National Bank. Central Bank and Trust Corporation"
 With the issuance of the notice the directors of the bank. E. Fl. Thornton W. F. Maury and H. c. Caldwell. order ed a notice posted on the bank doors that it was in the hands of the State Bank Examiner.
 ing were the Atlanta National. Lowry National. Fourth National. Third Ma tional, Maddox -Rucker Banking Com- pany and the Central Bank and Trust Corporation.
 It was hoped, after the result of the deIiberstion ef the Clearing House As sociation on Saturday when 1t became known that the Neal Bank was in trou- ble, plan would De devised st the meeting adjourned to today that would eneole the bank to open Monday.
 Securities Depreciated.
 According to the exanination of the bank completed by the clearing house late today, the nominal assets exceed the liabilities by about $600,000, but 1t was ascertained that extensive loans on Cuban and Alabama properties had so far depreciated as to bring these assets down to a low figure. 4 num- Der of uncollectable notes were also discovered. The aggregate number Of depositors in the bank which did a savings, as well as a regular banking business, is 5000 savings depositors alone, having an aggregate of $723.- 900. Subject otherwise to check was SS96, 900, while the demand and time certificate deposits aggregate $4S,OOO- a total of $2,o67.o00. I
 It Is the geenfal belief. expressed by bankers that the depositors will be paid in full in time. The bank was capitalized at $100 900. and was consid- cred one of the strongest in Atlanta The State used the bank for a deposit of $100.O00, but is protected by bond. No official statement as to the condi- ton of the institution was issued by the State Examiners tonight and none will be issued until after ,their work in going over its affairs is completed
 Many Small DepositoFs.
 In the Neal Bank were many small depositors and it was they who gath cred about the institution Saturday when a report was spread that the bank was insolvent. What started this run Is a matter of speculation. vari- ous stories being afloat as to the re- fusaI to pay a check because it was irregular and of difficulty In cashine exchange. The run immediately re- suited in the banks officers determi' nation to investigate it's affairs and this was followed by a request from the directors for the State to take charge.
 The report was spread tonight that Governor Smith would be asked to de clare a legal holiday of week because of the fear that the trouble might pre- cipitate other runs. This was denied by the Governor to the Associated Press tonight. He declared that every bank in Atlanta was solid.