The interior journal., 1914-05-26
PARIS BANK PRESIDENT HELD



As a climax to the closing OF the
doors OF the bank OF George Alexander
< Co., OF Paris, last TUESDAY evening
George w. Alexander, president OF the
institution, was arrested Friday night
upon warrants sworn out by State
Banking Commissioner Thomas J..
smith and placed under a bond OF S50,-
500 Commissioner Smith came to- Paris
Saturday from Frankfort, accom-
panied by State Examiner X. K. Re-
viii, and after a conference with Ex-
amintr John Chenault and the directors
of the bank, went before County Judge
{. \. Mcmillan in the county court
and caused to be issued three warrants
against Alexander cha, ging him with
embezzlemeni, making false reports to
the State Banking Commission and
making false entries upon the books of
the institution.
The warrants were placed in the
hands OF Sheriff w. +. Talbot for SER
wee and accompanied By Deputies and
McClintock, the Sheriff went to the
horne Of Mr. Alexander in Pleasant
street and placed him under arrest. The
bend for ombezzlemcnt and making
false reports to the Banking Commis-
sion was placed at SIS 600 each and that
OF making false entries, which is a mis-
dcmeanor. at $500 The bond was sign
ed by Charlton Clay, A. b. Hancock,
Samuel Clay and Oscar Taylor, the
latter OF New York. County Judge
McMillin approved the bond that day,
aud Mr. Alexander was released from
custody.
The bank OF George Alexander x
Co., was closed by Commissioner Smith
following a report by Bank Examiner
Chenault that the bank was insolvcnt
The cause Of the failure was given out
as due to bad loans, but it has develop
ed that. according to the examiners.
the entire surplus and deposits wer,
wiped out by the alleged peculations o.
Mr.. Alexander, who. according to the
State officials, had an obligation thai
will reach quarter OF million do.
lars, while the obligation of the bank
to the depositors will reach about S20U.
900
a large number OF business men ir
laris will suffer from the crash ane
the savings of hundreds were wiped out
when the bank failed.
Examiner Smith returned to Frank
tort tonight after appointing John
Williams, OF Paris. legal adviser %
the State at the trial of Alexander, the
late OF which will be set later by Judge
Mcmillan
Directors OF the bank held a meeting
FRIDAY with an attorney and sent the
attorney to consult with Mr. Alexande,
about his making arrangements to meet
the banks obligations. 1t is said the
situation was presented TO him in the
most serious phase This meeting
however, had nothing to do with the
banking commissioners action, and he
was not concerned with il.
The condition of the institution ~
much worse than at first supposed by |
the public. Ii is understood that facts |
were brought out which indicated thar |
the solvency of the bank depended upoL |
the solvency of Mr.. Alexander. When !
the bank was found to be insolvent $50. |
OOO of his own assets were wiped ou,,
As he held 20G shares OF the stock
block OF which recently sold for $3.50 !
the share. They are. of course, worth |
nothing now. Aside from his home il il |
not known what asseuts Mr.. Alexander |
has left OF the considerable fortune
which once belonged to him. His lia.
bilitios, II is said, may run over S22O-
DU0
The deposits in the bank amounted |
10 about S2S5,0O0 and the bank owed |
like $4,000, on paper dis
with other banks Hall its |
stock liable for double assessment is
owed by Mr.. Alexander. Mr.. Alexan
der lest large amount. estimated az
S50OOO. in promoting a patent known as
the ONe'l Hemp Brake Co. How much
Mr. Alexander is indebted to the bank
directly and indirectly has never been
given. hut il is alleged that a number |
oi people hold the banks obligation
signed by Mr.. Alexander as president
and that these do not appear in the
banks assets.
1t is said the failure of Alexander &
Co.. bankers, probably will result in
litigation of interest to the banking |
world to determine the liability for
incurred by the president
acting for the bank