The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1910-02-16
SAVINGS BANK
STOCKHOLDERS
Held Under Double liz
ability Law
BY U. S. COURT JUDGE EVANS
An Appeal Will be Taken TO
Higher Court for Fur
Their Hearing.


States Court has handed down an
opinion in which he held that the
stockholders OF the Greensboro Saw
ings Bank and Trust Company which
failed in April, 1908, who have not
been discharged In bankruptcy, are
liable to the creditors under the
double-liability act of the State of
Kentucky. That is where a stockhold-
er, for instance, held $1,000 in capt.
tai stock, he loses that amount in the
loss of the stock and he must put up
$1,000 more to be distributed among
the creditors Of the defunct bank who
prove their claims
Prior TO June, 1906, the Greensboro
Savings Bank and Trust Company
was capitalized at 100000. On that
date the capital stock was increased
to 100000 1t is alleged that James
H. Parrish, president of the bank;
A. L. Parrish, ]. Otis Parrish, George
w. s. Parrish, w. e. Parrish and
Isaac N. Parish, all directors in the
bank, owned over 100000 of the capt.
tai stock when the institution was
forced into the hands of receiver
in April, 1908, by the Secretary Of
State. These bank officials have been
discharged in bankruptcy and the
judgment given recently excerpts
them. James H. Parrish, since the
failure of the bank, has been tried
and sentenced to five years in the
penitentiary on the charge of mis-
appropriating the funds of the bank.
When T. A. Pedley, of Owensboro,
was appointed receiver of the bank,
John Conway and other foreign credi-
torS-that is, nonresidents of the
State-brought suit in the Federal
Court to compel the stockholders under
the State double-liability act to put
up an additional sum equal to the
amount of their holdings of the capt.
tai stock to be distributed among
IhS CNtulpOhS' AhCAS orc <hDOuI live
creditors, representing an indebted
ness of nearly $1,5OO,OOO. So far, ac-
cording to the judgment, claims
amounting to $77S,134.S5 have been
proven and filed. The other creditors
still have time In which to prove
their claims.
The stockholders in the concern
were numerous outside Of the Parrish
family, but most of them only held
small amounts Of stock. In the case
George w. Jolly, of greensboro, and
Alex P. Humphrey, of Louisville, rep
resented the following stockholders
of greensboro: ]. N. Alsop, $4,000; AL
Ian Reid, $4,000; Samuel R. Ewing,
$1,000; William E. Whitley, $1,000;
Mrs. E. Hale, $1,000; Mrs. NJ. H.
Roberts, $1,000; Mrs. Virginia Cal
hoon, $500. Ezekiel Rice, of Louis
VILE, is alleged to hold $4,000 worth
of stock.
Even should the creditors finally
obtain the money from the stock
holders, 1T is claimed that the per
cent. liquidated of the Indebtedness
would not amount to over 3 per cent
after the costs of litigation are de
Quoted. Immediately after the judg-
ment had been filed Attorney Jolly
for the stockholders gave notice that
a supersedeas bond would be given
for a stay of execution until the
case had been heard in the United
States Circuit Court of Appeals.
The stockholders are resisting the
suit to the charges that the bank was
wholly insolvent in 1906 when the
capital stock was increased from
100000 to 100000, and that they
were deceived by the officers into
taking additional stock as sold. 1t
is charged that the bank was $4,000
in debt when the capital stock was
increased.