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STEADY NO NEW DEPOSITS WITHDRAWALS, President Says Run on Bank Has Been Constant for Weeks-A. Martin, State Bank Examiner Placed in Charge. The Farmers and Mechanics Bank, corner High and Monroe streets failed to open its doors this morning. A. C. Martin, deputy of the State Finance department is in charge of the closed institution. The bank was closed at the request of Julius H. Conrath, who was elected president of the bank five days ago to succeed James Houchin. Mr. Conrath said that the constant decrease in deposits and the withdrawals of deposits prompted him to place the bank 'in the hands of the finance department in order to safeguard the interests of the depositors. He was of the opinion that the depositors would not sustain loss as the result of the closing of the bank. No Excitement. The failure of the bank to open its doors caused no great excitement. It first became known when one of the county officials went there this morning to cash a check and found the doors closed. A typewritten sign, "This bank is in the hands of the state finance department," signed by H. Conrath apprised the public of the closing. The bank, according to the last report as of December 31 had total resources of capital stock of $20,000, no surplus; $618.20 in undivided profits, deposits of $186,828.48 and total loans of $118,893.09. The bank it was said, was not in an insolvent condition and those familiar with the situation were confident that no loss would be sustained. City Funds on Deposit. It was learned this morning that about $36,000 of city funds were on deposit in the bank. Collector Otto B. Pohl kept the receipts of his office there until early in the month when he turned the deposits over to the City Treasurer, A. A. Speer. The practice was begun by City Collector Moore and continued by Mr. Pohl. Some of the county officials also had small amounts deposit there. No large run was made on the bank but there had been steady withdrawal of deposits ever since it became known that James Houchin was under investigation by Federal grand jury. Mr. Conrath who took charge of the bank five days ago made thorough all conditions and early morning determined to close bank. Mr. Conrath was president of the bank before he departed for Europe. He took charge of the bank when Jesse W. Henry retired and was in charge until he resigned in order to enjoy a vacation. The following statement was given out by Mr. Conrath today: "Steady decrease in, and withdrawals of Deposits in the past six weeks have caused the present President of the Farmers and Mechanics Bank to ask the Commissioner of Finance to take over the Bank in order that the interests of the Depositors may be safeguarded. The Commissioner made an examination of the bank on March 26, and recommended that the personnel of the bank be changed immediately, and in compliance with that order, J. H. Conrath was elected by the Directors as President. It was hoped that the change would enable the Bank to tide over its difficulties, but the withdrawals became heavy that no other course was left open to the Bank. It is honestly believed that the assets of the bank will enable the bank to pay the depositors in full, and both the Commissioner of Finance and other Banks have expressed their willingness to cooperate to that end. The examination of the Commissioner was complete and careful, and from his report delivered to the Bank, we believe that we are justified in saying that there will be no loss." The board of directors of the bank were in conference this afternoon. Former President Houchin declared that he would have a statement to make after the meeting of the board but until that time he regarded it as best to maintain silence. It was indiacted here this afternoon that the other banks of the city might take over the closed bank in the near future and that the depositors would be paid dollar for dollar. Few believed there would be any loss. They said that the officers of the bank acted wisely in calling upon finance department before irreparable damage had occurred.
