The true Democrat. [volume] (Bayou Sara [La.]) 1892-1928, 1914-04-04
Col. Goethals is now Governor O
the Canal Zone.
CAPT. STEELE EXPLAINS
CONDITIONS.
Baton Rouge, La, April 2, 1914.
To the Editors of The True Democrat,

Baton Rouge, La, April g. 1914.
To the Editors of The True Democrat,
St Francisville, Louisiana:
I have read your editorial contained in
the last issue of The True Democrat re-
lating to the liquidation of the Felciana
Bank & Trust Company of st. Francis
vile. If the readers of The True Demo
crat understood the true situation | feel
satisfied there would be little disposition
! to criticise the course which has been
pursued in the liquidation of this bank.
When the Feliciana Bank & Trust Com
Ipany closed it's doors in August last. there
was S3,226,97 in cash on hand; the bank
was borrower 10 the extent of $95, 900,
this money having been obtained from
the National Bank of Commerce of New
York City, the Whitney Central National
Bank of New Orleans the Continental
I'Bank & Trust Company of Shreveport,
the City Bank & Trust Company of Mo-
bile, Ala, Messrs. M. & f. Wolf of St
Francsyille, Mr.. V. M. Jackson of West
Felciana, and others; and to secure the
payment of these loans, the bank had
pledged $132000 of collateral, presumably
the very best paper to be found in it's
portfolio. The other paper found in the
banks portfolio consisted of such paper
as had not proved attractive to those
lending money to the bank The imme-
date cause of the failure was the ina
bility of the officers of the bank with the
use of its portfolio and the personal en-
dorsement of all but one of the Board of
Directors of the bank to secure loan of
100000, which was needed to prevent the
failure of the bank.
This was the condition of affairs when
the bank examiner took charge for the
purpose of liquidation. 1t will be seen at
once that the liquidators had no control of
the 1872, 900 Of paper held as collateral by
the above mentioned creditors All rea-
sonable means have been followed to re-
duce the balance of the banks portfolio
to cash: and the sum of $780, 600 has been
collected by the liquidators, including the
money found on hand at the time of the
failure, and this money is now deposited
in the Bank of Baton Rouge and in the
Louisiana Trust & Savings Bank of Baton
Rouge at the rate of interest allowed on
puDilS luiltS
When the State Examiner of State
Banks took charge of the liquidation of
this bank two methods of liquidation pre-
sented themselves: first, the harsh one. of
closing out all indebtedness as fast as the
same became due, bringing suits and sell
ing the property of the debtors in order
to enforce payment; the other, to use
pressure and moral suason to induce all
debtors of the bank to meet their pay
ment without resort to legal process ex-
cept when the same became absolutely
necessary.
The liquidators realized that the people
of the Parish of West Feciana, the
debtors of this bank, were almost uni
versally PROSTATE in a financial sense
owing to the disorganization of business
and wreck of the agricultural interests of
the parish due to the devastation of the
boil Yeevil. The failure of the Feliciana
Bank & Trust Company, the only bank
ing corporation in the parish, accenuated
the wide spread distress, and rendered it
impossible for many to procure money
who. otherwise might have done so with
the bank open and doing business Added
to these considerations. was the general