The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-06
GUARANTEE TRUST
SHUTS OFFICE HERE
Crisis in Affairs OF Atlanta Bank
Causes Concern in
Richmond.
OPERATIONS LITTLE KNOWN
Local Bankers Not Familiar With
Business OF Georgia
Institution.

The crisis in the affairs OF the Guar
Atlanta. was reflected here yesterday
in the form of a notice on tho door OF
the company's Richmond branch in the
Virginia Railway and Power Company s
building, reading as follows:
office closed. Direct all communi-
cations to the home Office In care of
the Guarantee Trust and Banking Com
pany. Box 1924, Atlanta. Ga"
An attempt to find the local manager
of the company was unsuccessful Tho
latest Issue Of tho City Directory gives
g. H. Paylor as the name of the man
ager at that time in charge of the
company's Offices in tho Mutual Build
ing. The change to the Virginia Rail
way and Power Company Building was
made about a month ago
the company had branches in four
Virginia cities - Richmond. Norfolk.
Roanoke and Lynchburg. one OF it's
widely published advertisements of
fered for sale easy payment, profit
sharing per cent coupon trust bonds.
paying interest semi ANNUALLY. issued
IN denominations OF $1,000 and more.
Unknown TO Bnnkcrs.
Representative Richmond bankers
when asked yesterday about the oper-
atoms OF the Atlanta company in this
city. replied that tho company was
practically unknown to them The
cashier of one of the large national
banks said that at tho request of a
customer he recently investigated the
concern with the idea Of ascertain its
solvency. Richmond stockholders. In
conjunction with stockholders in other
cities. sought several months ago to
institute reccivership proceedings for
the protection OF their holdings
y local holder of several Of the com
pany's bonds stated yesterday that in
terest payments have for some time
been omitted Similar complaints reg
istered by other citizens support the
belief that a large number OF the COM
pany's obligations are outstanding in
particularly In the four cities
in which the branches were situated
The company's difficulties came to
head in Atlanta Wednesday, when the
Fulton County grand jury Indicted sam
h. Smith, president, ana Henry 5. Miles.
secretary and treasurer on five charges
each-two felonics and three INSIDE
Ineanors. The indictment followed re-
ownership proceedings Instituted
against the company last week. The
TWO men were released after they had
furnished bond aGgrcgating the sum OF
Sll.500.
The first felony Indictment charged
that the concern. as a bank. had paid
an unearned dividend OF per cent
prior TO 1912, in violation OF the act
OF 1904. The second felony indictment
charged the officers with buying CAPT
tai stock with the money of the cor
poration.
1t was charged among other things
that the indicted officers bought the
stock OF dissatisfied stock holders. and
that one purchase OF $4,000 OF stock
made by a clerk OF the bank. was really
for Smith and Miles.
Civil proceedings are still pending
for the appointment of n receiver for
the bank. The depositors who brought
tho receivership proceedings charged
that the concern had no more than
$500, 600 assets instead OF the 100000
that II claimed