The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1910-11-03
REFORAIBRS BANK CLOSED.

CoNT1Nr-rn FnnM Dog
through ignorance and gross mis-
management, or as the order OF the
Insurance Bureau, intimates, eff not
criminal negligence" succeeded in 40
d1sposing Of the assets as to make
1t doubtful If the order can again re-
sumo business. 1t may be wiped
from the face Of the earth, taking
with it the hopes and labor and dol
lars of 10000 members, represent.
ing in large degree the sober, in
dustrious, thrifty element of the col
bred race in America.
Condition is Bad.
Nothing can more forcibly depict
the financial condition Of the now
1efunct bank than q brief statement
According to It's own published
statement to- the State Corporation
Commission, as Of date September 1,
| last, 1t had total deposits of $780,
468.34, including time certificates,
deposits subject to check and cash
,er's checks outstanding. Yet the
Grand Fountain of True Reformers
| alone has on deposit at this bank ap-
proximately $274,000,. and in addi-
| ton the bank owes the order SOL
100 Of borrowed money, making a
| total which is due the order by the
bank of about $335,100.
The alleged bookkeeping methods
of the bank beggar description.
| Mortgage loans are twisted in every
conceivable way, showing as assets
| when they are really in possession
Of outside banks as collateral, securi-
ties for loans which the bank has
contracted. Money has been poured
for long time into an. allied con-
| Germ known as the Reformers' Mer-
| camille and Industrial Association,
| which runs a chain of stores and
printing office.
Cant Pay Claims.
AS to the insurance order itself,
1t has been found in the examination
just made by the Bureau of Insur-
ance that the bank is holding $751;
900 worth of checks drawn by the
order to pay insurance claims, which
| the bank has been unable to honor.
In addition so far as can be learned
| the True Reformers owe other I'M
paid claims to the amount Of $780,
600. The figures given above indi-
| cate clearly that it could pay these
without the slightest trouble If it
could use the money which belongs
to it in the bank
But when the banks affairs are
wound up by the receiver the salvage
| may or may not be sufficient to pay
on the insurance orders debt. If
1T, is, the order may yet get on it's
feet by pocketing it's losses, which
are certain to be heavy, by proceed
ing to do business on it's current in
come, and by forever eschewing all
iconbiuations Of any sort with any
other kind Of business enterprise
whatever.
The application for receiver for
the Savings Bank of True Reformers
was made by the order. AS it is all
in the family, with the same officers
and the same interests, there was no
resistance. Judge Daniel Grinnan at
once appointed William A. Moncure,
Of the law firm Of Smith, Moncure
land Gordon, counsel for the order,
as receiver He gave bond at once
In the sum Of $4,000 with the Vir-
ginia Trust Company as surety and
began an inventory of the property
Of the institution.
Was Popular Order.
For nearly thirty years the True
Reformers has held leading place
in the admiration and affection OIL
the colored people Of this part of the
country It's home office, with ite
bank and it's printing office, are To- |
Gated on Second Street near Leigh, !
In Richmond. Only few weeks ago
the biennial session Of the Grand |