The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-10-31
All Cash Accepted by True Re
formers After October 20
Placed Elsewhere on Advice
Of Counsel-Of Of6cials ST.
lent on Question Of
!. Il Prosecution.

i 5ssHy tAFlCoC(QtkOAls35.fE :
Facts brought out yesterday regard
i Ing the failure of the Savings Bank o
i True Reformers, and admitted by th
NEGRO officla1s Themselves, show tina
j lnotwithstand nding they were supposed I,
! know officially on Thursday, Octobe,
! 20, that the Institution was In an insol
vent condition, they ,conlnued to re
! scetve. deposits UP to and including Tues
4 day, October %.
The penalty for receiving deposits
4 knowing a bank to befinsolvent, wllfel
/ is an offense classed as cmbezzlement
fs a finesOr imprisonment In the jai
or penitentiary, in the discretion o
the jury. for each offense. However
4 whether or not the bank officials are
4 liable to persecution. there seems to b.
no way. under the construction OF tn.
banking law by the State Corporate OF
evidence can be brought to the atten-
Ition of the attorney for the Common.
wealth. II; Il
Kept ON Taking Money.
According the explanation made BY
the banks officers. they were Informed
| on Thursday. October 20. bySS State Bank
Examiner G. G. BaIksdale, THAT In his
| opinion their institution was insolyent
They continued TO receive deposits a,
before. until the afternoon OF Tuesday y
October d. when an official notice was
served on them by Bailiff Sam w. Big
(, ger. of the Corporation Commission
| Since that time they have taken no de-
| posits. -.
Following the appointment Of ". A.
hIoncure as receiver. counsel for The
bank advised the officers TO set apart
all deposits received since the opinion
was expressed by Mr.. Barksdale. and
to place the money In another bank.
which was done. The status OF this
money makes a most interesting prob
lem. and the courts will no doubt be
called upon TO rul le as to whether or
not II should be returned to the depos-
| itors or be added to the other assets OF
the bank for general division among
| the creditors. .
Pensltx Provided.
Furthermorc, the action taken in
this respect by the banks officers. uil-
der tho advice Of counsel. is taken IN
some quarters as a tacit admission that
the law had been violated. Section
tS1l11 of the Code provides that any Off
Ger or cmploye of any ban nix who shall
take and receive money from any de-
posttor with the actual knowledge that
the said bank is al the time solvent,
shall be guilty OF embezzlement and
shall be punished BY a fine OF double
the amount so received or be confined
In jail not less than fift teen days nor
more than one ear. or be confined In
the penitentiary not less than one nor
more than three years. in the discre-.
tionH OF the jury, for, each offense.s
s.s No N office II equircd.
The point as to whether or not the
officers knew that the bank was insol- ;
Vent Is the one on which such case
would hinge. Those familiar with the
law say there Is no thinf; In the ban KS
that Mr.. Barksdale did not
serve ansofflcial notice. As matter Of
fact. to make thel officer culpable under
the law, IT. Is not necessary that any
notice at all shall be given the insti-s
tuition by the Corporation Commission!
It Is enoug that the officer shall have
knowledge of the Insolvency OF the
bank. That the officers did have suct
knowledge will Doubtless be the con-,
tention of the prosecution.
Further It appears from an eXami y
nation ofS the official paper served by
cial notification that the bank was
insolvent, q and has no bear ring on 7 hels
Law relating to the reception OF de-.
rosits sat al IL was, In fact, action
Under y anothersec ton of the statute,
complying g with the technicalities Of
the Code. to correct the SirreE eEularities
which had been found .s Such notice
must: be- given bel ore the Corporation
ply to a. court or the appointment of
rs 40 Action. ns ret. 4
scommonwealth's Attorney Folkesg
50 that he has received no official
iniorn,ati lon on the subj Of the tail,s
such. widespread distress among II he
trusting members of the colored race
lnSg3t his 81 ca mo ot,.ss Of fA4co CURSE
proceed upon rumo,r,5s bu Z must have
would seem to be doubtful
this informant ioni can 1 be given him..
Not. pealsing OF tn e Il True Reformers''
bank, but Of any bank in the State
by
ture apparently prev yents the giving
outgof Informal ion. The section55ins
lnesttona 8 provides that 40 B records OF
infornlat /, ton once ing bar ks hicllS1
to- any one save Ulcers and employees
OF tho 4 sta to 9Who q ma WI have occasion
and autl tllori tyg 20 81 ms pee T. them In hes
performance Of their duties. n Disnis-
ulAGc
Law 'IalScn Literally n
,4s. his law $ bel construed literally
by the Corporar zion Commits ssion, and
the silence OF he grave Isl being
preserved In Its onlces, for Instance.
regarding tho 'l,ru e n r }ef ornlers' y ba nk,
This In spite OF he fact that ne in
stltutinn I; y ruins and could not
anyIssort itof publication which could
sWhflee eEi t ss9 ne rfact IL ,i,j y, y " !,
the intent of the .Iegi stature 1 WAS
',leerely I'll protect solvent banks from
from publicity Regarding their condil.|
tlon; and from r; ssarss e. might
Been redllired to- connect s one b ii:' trsF
Gsgulari,tyghie might
!,lisslon has deci led that "a must abide
I; 7, Letter 4, ana not the Of
ne .st q nceHs
Who ia 81 the ma ter Y as. thouEh.i
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