The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1914-07-25
VIOLATIONS Of BANKING LAWS CHARGED.
Result Investigation Affairs
of


OF DOnaldsonVllle, which CLOSED it
doors on the 14th inst, is thus Sc
forth in official reports to Attorne,
General Pleasant from State Banl
Examiner w. L. Young and his as
sistant, Henry N. Thompson:
Donaldsonville, La, July 16, 1914.
Hon. R. G.. Pleasant, Attorney Gen
eral, New Orleans, La:
Dear Sir:-In the afternoon of thu
18th inst, receivedsa telegram from
Mr.. J. A. Dalferes, president of the
Peoples Bank of DonaIdsonville, ad
vising me that it's board of director:
had ordered the doors of the banl
closed.
Mr.. Henry N. Thompson, assistant
state bank examiner, being at WORK
in this vicinity, was immediately
directed to go to Donaldsonville anC
take charge of the affairs of the Peo
pies Bank. He arrived here and as
sumed charge on the evening of the
18th inst, and | joined him the fol
lowing morning.
Upon an investigation into the af
fairs of the bank by this department
it was determined that the bank was
in an unsound and failing condition
and, after having made the proper
demand upon its representatives tc
relieve the unsound Condition, ano
upon their failing to comply with
such demand, l took possession OF
the books, papers and effects OF the
bank for the purpose of liquidation
under the terms of Act 800 of 1910.
My investigation has disclosed the
fact that the banks condition has
been very unsatisfactory during seY.
eral months past; it's cash reserve,
according to it's books, has been be
low the legal requirement since May
5 of this year. The shortage in re
serve has been ranging in amounts
up to $4,000. Section Is of Act 179
Of 1902 requires that if at any time
the lawful money reserve of any
state bank shall fall below the legal
proportion of aggregate deposits pre-
scribed by law and shall remain SO
for a period of ten days, it shall theI
be the duty of the president of the
[Udlk W IOLl1} SGGaIS Ud41A ca
aminer within twenty -four hours OF
the end of such ten days shortage;
any bank failing to comply with this
requirement shall forfeit the sum of
ten. dollars per day for each day in
which said banking association Shall
be in default
. The bank examiners office has re-
ceiyed no notice from the preslden
of this bank relative to its impair
ment of reserve, which, according to
its books, has existed since the 5th
of May, 1914.
I find that this bank has failed to
render to the office of the state
bank examiner it's statement in re-
sponse to a called for report of the
condition of business at the c,ose
of business June 80, 1914, issued
from this office, although several
days ago, in response to a telegram
from this office, it was advised that
the report was being mailed. The
Chief, a newspaper
published in the town of Donaldson
Willie, in its issue of July II contain
ed a statement purporting to be
the quarterly statement of the Peo-
pies Bank of Donaldsonville. furnish
ed to the state examiner of state
banks at the close of business June
30, 1914. The clipping of said state
ment is enclosed herewith for your
inspection.
This statement as published ap-
pears to have been sworn to by j..
A. Dalferes, president, and w. j..
Leblanc, cashier, respectively, Of the
bank, the affidavit being taken be-
fore Mr.. B. J. Vega, notary public.
Mr.. Vega, upon being questioned by
me, asserted positively that he did
not administer any such oath to
these gentlemen relative to said
statement.
This published statement appears
TO be false in many respects when
it is compared with statement ia
ken from the books of the bank at
the close of business on June 81,
1914. The published statement
shows:
Demand loans =. ..S 4,o44.Io
Mortgage loans ;. 90, oo2. ~
Other loans and discounts ll6 ,223.77
thus making an aggregate of $I76,-
62061; the books of the bank show
total loans of $176,730.61, making
decrease of $1,000.
The published statement indicates
overdrafts of $2,766.16, while the
books of the bank show oVerdrafts
Of $3,090.09, thus showing a decrease
Of $32392.
The published statement indicates
due from other banks and bankers"
$6,08069, while the books show an
overdraft in this account, of 81 ,897.2l,
thus showing an initiation Of $1,917.8 ~
in this account.
The published statement indicates,
under the head of Cheeks and other
cash items,' s996.74, while the books
show under this item $l,362.30, thus
an increase of s365.66.
The published statement indicates
that the bank had in silver, nickle
and copper s3,89S.21, while the books
show $3,59118, thus showing an in
flation of s30703.
The published statement indicates
that the bank had On hand in cur
rency s3,285.00, while it's books show
the amount of currency to have been
S2,906, showing an Initiation in it's
currency of s279.00.
The published statement indicates
the individual deposit account to be
s107 ,922.S7, while the books show
107,516.49, thus showing an initiation
Of s406.30.
The published statement shows
saving deposits to be s77, ,5o4.80,
while the books show ST., ,549. 80,
thus showing a decrease Of s45.
s submit that these facts indicate
[11afMfhi statement. was false End