The true Democrat. [volume] (Bayou Sara [La.]) 1892-1928, 1913-10-18
MR.. YoUNe's REPORT TO
ATTORNEY GENERAL.

| AS so much curiosity is felt, con-
cerning any and all details of transac-
tons relative to the Feliciana Bank &
Trust Co.'s affairs, and especially as
regards the State Bank Examiners
actions, the following copy is given
of the State Bank Examiners report
| to the Attorney General:
"On the 9th ultimo, received the
following telegram: On account of
Withdrawals and our inability at this
time to realize on our loans, we have
suspended and will thank you to come
at once and take charge. Feliciana
Bank & Trust Company
con the following morning, August
18th, in company with my assistant,
Mr.. R. H. Ward, arrived at st. Fran
cisville, repaired to the Feliciana Bank
land Trust Company and at once took
charge of its assets and affairs.
81 found that during several days
Iprior to the suspension of the Bank,
Its Cashier had been holding UP re-
Imittances for checks on the Bank and
tother items sent by various cores
Ipondences for collection. All checks
land other items received in the mail
lsince that date were handled in this
manner: when the letters enclosing
Isuch items were received, the checks
ON the Bank were passed through the
books of the Bank and charged to the
Irrespective accounts of the drawers
land the other items enclosed were col
Ilected and mingled with the funds of
the Bank.
4 "Then the Cashier would draw a
draft on the Banks correspondent
i (Whitney Central National Bank of
New Orleans) for the amount Of the
Items enclosed in such letters, less
the collection charges.
1 "These checks however, were not
mailed out promptly from the Bank
to the parties from whom the collec-
itions were received and there were
being held when / arrived at the Bank
on the 28th, checks of this character
on the Whitney Central National Bank
laggregating more than Ten Thousand
Dollars. On the morning OF August
the 28th all of these checks were mail
ed out by the Cashier of the Bank.
found that the Banks cash had not
been balanced nor it's books been post
led since Saturday, August 2Srd. When
the books of the Bank were closed
3 under date of August 26th, after my
T, 2arrival, its account with the Whitney
Central National Bank showed an ov.
. erdraft of more than 100000, the
jstatement received from the Whitney
Central National Bank showed that
:, 1.-THE Feliciana Bank & Trust Company
+ ahad a credit balance of something over
+ $4,000 at that time When asked by
!, me. why these remittance checks had
|been held up Mr.. Matthews, the Cash
g lier of the Feliciana Bank & Trust
}, Company, stated that he did not mai
3 Them out because he knew they woult
r mot be paid, for he had been advised
II that no overdraft would be allowed by
n Whitney Central National Bank. /
n these checks on the Whitney Contra
J. National Bank, issued in payment o
the above mentioned items for collec
Ition were worthless, being overdrafts
a and il under such constructions !
e. would be held that no payments wer
C. made thereby, such failure to pay b.
the bank checks of its customers, cor
stituted an act of bankruptcy or in
lsolvency on the part of the Felician
Bank & Trust Company as such check
al were it's demand obligations. Sectio
IN l16 Of Act 179 of 1902.
,r "On taking possession Of the asset
Eof the Bank, found several deposit
RS (which had been received ON Saturday
e, August 23rd, segregated and apai
II, Ifrom the other business OF the Bank
e. ITO the ticket representing thes
deposits, there were attached tn
y. funds so deposited. On inquiring frol
ne 1.-THE officers of the Bank why these d
oil Iposits had been segregated, / was il
,g Horned by Mr.. Matthews, Cashier
st 1.-THE Bank, that on Friday ne had cor
lmunicated to Judge Lawrason, Pres
"a. tdent of the Bank, the fact that heay
to Withdrawals had been made on tt
N. Bank and that the Bank had impai
80 led seriously its available funds; TIL
ry Eunless more funds were obtained
Ionce, the Bank would be compelled
re-. suspend; that the President had !
on structed him to segregate all deposi
lreceived thereafter, so that they mig
be returned intact to the depositors