The Birmingham age-herald., 1909-10-29
PEOPLES SAVINGS
 BANK IN COURT Meridian Concern Put on Legal
 Gridiron CROOKEDNESS IS CHARGE0 3 It Is Claimed That Stock Was Over rated and That Purchasers We're efrauded-Number of Com
 plaints Named.
CR0OKEDNESS IS CHARGED

Meridian, Miss, October 2S.-(Special.)- 1 A suit concerning the business affairs of the old Peoples Savings bank was filed yesterday in the chancery clerks office, by Attorneys Ethridge & 5thridge, rep resenting some of the shareholders, against the officers and directors of the corporation. The style of the suit is Dr. l W. ". Hamilton, ct al. vs. F. w. Will Hams. ct al
 The compliments are given as follows: Dr. ". W. Hamilton, Mrs Fannie J. Rigley. Ben Cohen. E. M. Feibelman, J. B. Ramsey, H. Schall. c. c. Wyatt, Mrs Bell Heyman, r. J. Holberg and Martin Seiger The defendants are given as follows: F. W. williams, A. s. Bose man. A. c. Weems, w. A. Martin, Tom Lyle S. A Klein. F.. B. McRaven, c. Phillips, V. B. Martin and the estate of George W. Meyer.
 The bill goes on to give somewhat of a history of the bank saying that it was organized with a capital stock Of s25, ,Oo0 which was later increased to s5o,- OO0O It is alleged that the stock was represented to the complainants to be
  belief of the plaintiffs that it was not worth that amount; that the additional stock was issued to tide over the then present bad condition of the corporation; that the dividends declared and paid by said bank to shareholders was fraudu- lent transaction and was done to induce complainants and others to invest in said bank stock.
 Complainants further allege that the 25O shares last sold were at s19o per s10o, and that the S90 of all the shares made total of 5000 and that this amount was placed on the books as profits in- stead of being placed fin capital stock. interest and discount, making the books show a false earning capacity. Plain tiffs allege that they paid sl20 for stock on the statements of the officers and the sworn and published statements of the bank.
 Complainants further state that said statement made by directors was false and fraudulent and made with the pur- pose to deceive. It is declared In the bill filed that the complainants are informed and believe that the stock never was worth H0O; was never worth over $71 per 3100 and that said directors knew or could have known this.
 It is further alleged that when at the time of the sale or the attempted sale of the Guaranty Loan, Trust and Banking company, said stock was not worth over $31.
 The complainants aver that when w. A. Martin was made cashier that he told some of the officers or directors that he was inexperienced; that he informed the said parties that he was not com petent, and 1t is then alleged that MT. Martin was not familiar with the inside workings of a bank.
 The charge Is made that the books were not correctly kept and that there were false and fraudulent entries.
 |. Portable savings banks, for $l were charged as furniture in the general &C., counts, it is alleged and the declaration is made that they could not be found.
 The bill charges that a note was ac- cepted from MT. Martin for payment for stock, and loans were made without be- ing passed upon; that parties were al lowed to overdraw their accounts; that s1600O of the capital stock has disap- peared and that the 900 in assets are worth about 30 cents on the dollar. It Is charged that the books show that S750o of the S18O00 assets went to the officials of the bank.
 Complainants ask that the defendants be cited to appear before the chancellor on the second Monday in November and after the hearing of the case that an award be made to the complainants against the defendants for the differ ence in the present value of the stock and the value at the time of purchase. The Meridian Terminal company held a meeting in this city yesterday, and at tended to some routine business and reelected the old officers. President D. D. Curran of the New Orleans and North eastern was reelected president. Super intendent S E. Flanagan of the. New Orleans and Northeastern was reelected chairman; w. J. Kellehan, secretary Messrs. Sidney Prince of the Mobile and Ohio I w Evans of the Alabama Great Southern, Stanfield and Hodges were present
 
 Scottish Rite Officers.