The Lee County journal. (Leesburg, Ga.) 1904-19??, 1908-01-03
AS SET OFF TO NOTES
Deposits III Defunct Neal Bank Car Be
Used-c0urt Issues Order to
That Eject.

&RaL GMkCt
II person has deposit OF $500
IN the defunct Neal bank at Atlanta
and in consideration Of loan Of an
equal Or larger amount, has given his
note, his deposit can be applied in tho
payment Of his note provided the
same is still ii the banks possession
and has not been sold to an innocent
party
An order to this effect was issued
by Judge Pendleton at Atlanta on
application of Attorney General John
G, Hart through Gambler, Thomson
& Hirsch. Judge Pendleton's order
makes no distinction between notes
held by the bank and notes which
have been hypothecated, but those ia.
miliar with the law declare that the
order will apply only to notes now
actually held by the bank.
This matter has been the subject Of
great deal Of interesting discussion
since the state authorities took charge
OF the bank. Some have held that all
obligations would have to be met and
that depositors who owe the bank
would have to take their chance Of
getting their money back the same as
depositors who are not In debt to the
bank, claiming that any seton would
make a preferred creditor of the de-
position who happened to owe the bank
Others have held that bank stands in
the same position as any individual or
other corporation and where man is
both debtor to and creditor of the
bank there must be set-off, only the
difference to be paid. There seems to
be practically ne division of opinion as
to the fact that where the bank has
sold note the giver must meet it at
maturity whether any deposit he may
have had in the bank is returned to
him or not. The note having been sold
is in the hands of an innocent party,
the bank is known only as an indorser
and the man who made it is RESPONSE
Bile for its payment, the fact that he
is depoSitor in the bank having no
bearing on the case.
All unpaid checks on other banks de.
posted with the bank to the accounts
Of depositors will be charged off and re-
turned to the depositors.
This applies to similar checks not
yet reported and not on the list at.
tached to the petition as an exhibit.
In describing the notes in question
the petition stated that there were
numerous notes and other evidences
Of Indebtedness signed by customers
with deposits on hand at the time a
receiver was appointed, some of~which
have been become due and some are
approaching maturity, that depositors
had claimed and would claim set-offs,
and it was asked that such notes
should receive the credit of deposits.
AS to the checks on other banks, it
set out that drawers had ordered pay.
ment on them stopped before presen-
tation and that the order was obeyed
by the bank. This was before a re-
ceiver was named and before the fact
Of insolvency. The petitioners asked
that the amounts of these unpaid
checks be charged off the accounts
and returned to the depositors.
Deputy Sheriff Dan Peterson took
charge of the stock of dry goods, mer-
chanidse, ETC.. of G. G. Reid at 165-167-
1859 Peters street to satisfy the chattel
mortgage held by the Neal bank and
foreclosed by the Central bank and
Trust company, receivers. The amount
of the Indebtedness of G. G. Reid was
$1O,999.1O plus $S0772, principal and
interest Of four promissory notes
drawn August 20 of this year. The first
was for $1,000 due October Is, the Sec
ond for like amount due November /,
the third for $4,000 due December /
and the fourth for s5,09o.1O due Jan
uary /, 1908
Only the stock and store and store
fixtures are involved.