20840. Merchants Trust Company (Memphis, TN)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
trust company
Start Date
December 27, 1905
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
619db397

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension

Other: Receiver appointed; clearing house advanced $160,000; stockholders arranged capital subscription to resume business.

Description

Multiple contemporaneous articles (Dec 27–31, 1905) report heavy withdrawals/anticipation of a run that precipitated suspension and appointment of a receiver (John P. Edmondson). Papers discuss overloans and New York money stringency as root causes. Later reports (Dec 30–31) show stockholders taking steps to rehabilitate and statements that the bank 'may resume business' but no definitive reopening date is reported in these clippings — outcome therefore uncertain.

Events (3)
1. December 27, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals/anticipation of a run following overloaning of the bank's capital; inability to liquidate loans quickly and New York money stringency precipitated depositor withdrawals.
Measures
Bank suspended payment and a receiver was appointed; Clearing House advanced funds ($160,000) and related institutions also suspended as precaution.
Newspaper Excerpt
Anticipation of a heavy run ... preliminary intimation of which was given by the withdrawal of many deposits Tuesday afternoon
Source
newspapers
2. December 27, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Decision to suspend followed heavy withdrawals and overloaned condition of Merchants Trust Company; stringency in New York money market contributed; receiver John P. Edmondson (Edmundson) appointed and American Savings Bank and Trust Company also suspended fearing contagion.
Newspaper Excerpt
Three banking institutions failed to open their doors for business today. ... John C. Edmonason was appointed as receiver.
Source
newspapers
3. December 30, 1905 Other
Newspaper Excerpt
At a conference of stockholders of the suspended Merchants' Trust Company ... steps were taken looking to a rehabilitation ... it is announced that the institution may resume business on Tuesday.
Source
newspapers

Newspaper Articles (22)
1. December 26, 1905 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, December 26, 1905

Click image to open full size in new tab

Article Text

THREE BANKS CLOSE DOORS. Special to The Sentinel. Memphis, Tenn., Dec. 27.-Three banking institutions failed to open their doors for business today. The Merchants Trust company capitalized for $200,000 and the American Savings bank and Trust company, and the Mechanics' Bank, two institutions allied with the first named were the banks that failed to open. John C. Edmonason was appointed as receiver. The cause of the suspension of business was overloans on discounts. The deposits amounted to $625,000.

2. December 27, 1905 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, December 27, 1905

Click image to open full size in new tab

Article Text

FAILURES IN BUSINESS Two Banks of Memphis Have Closed Their Doors THE LIABILITIES ARE VERY HEAVY Another Grain Brokerage Firm of San Francisco Goes Under-Too Much Speculation. MEMPHIS, Tenn., Dec. 27-The Mer chants Trust company of this city went into liquidation today. The American Savings Bank and Trust company closed its doors to avoid a run. The Merchants' Trust company had a capital of $500,000 and deposits of $600,000. The American has a capital of $250,000 and deposits of $625,000. Both institutions were allied with the Memphis Trust company, which absorbed the Memphis National Bank and which controls the American Savings Bank. One of the directors stated that all depositors will be paid off. There are rumors of settling at 80 cents on the dollar. Lawson and Standard Oil are blamed for the failure.

3. December 28, 1905 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, December 28, 1905

Click image to open full size in new tab

Article Text

Anticipation of Heavy Run Caused Memphis Trouble THREE BANKS ARE INVOLVED President of Merchants' Trust Co. Says the Stockholders Will Undoub Realize a Large Percent. of Their Investmer cipation of Memphis, December 27 F iants' Trust a heavy run on the et, preliminary company, 111 Madison intimation of which given by withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of a receiver. The American Savings Bank and Trust company, 176 South Main street, which is dominated by the directorate of the Merchants' Trust company, fearing that the failure of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants' Trust company shall have been adjusted. The American Savings and Trust company, it develops, recently absorbed the Mechanics' Savings bank at Main and Calhoun streets and took charge of the latter company's business. Will Pay Dollar for Dollar. It is stated by the officials of these institutions that depositors will be fully protected and paid dollar for dollar. The stockholders of the Merchants' Trust company, it is said, will suffer to the extent of 20 per cent on the capital invested, as the liquidation of the bank's finances are expected to entail a slight loss. The assets of the Mercahnts' Trust company greatly exceed the liabilities. The American Savaings Bank and Trust company, according to its latest statement, is in excellent condition and is carrying more ready cash than is usual for an institution of its size. The Mercahnts' Trust company has on hand only $30,000, the remainder of its capital being loaned our. The fact that the bank had overloaned and the stringency of the New York market are given as the direct causes of the suspension. John P. Edmondson, a prominent attorney of this city and one of the directors, has been appointed receiver for the Merchants' Trust company. A. Y. Allen, cashier of the American Savings Bank and Trust company, has been made the receiver of that institution. The decision not to open the doors of the Merchants' Trust company today was reached after an all-night conference of the board of directors. Felix T. Pope, president of the Merchants' Trust company, gave out the following statement: Bank Is Amply Solvent. "The bank is amply solvent and every depositor will be re'The stockholders paid will in undoubtedly full. alize a large percentage of their investments. "The Merchants' Trust company had loaned too much money and was unable to realize on its loans fast enough to meet the demands. "I am not in position to make a statement now as to reorganization or future plans." W. A. Percy, attorney for the Merchants' Trust company and the directors of that institution. make the statement that all depositors of both of the American Savings Bank and Trust company and the Merchants' Trust company will be paid in full. Statements of the financial status of the closed banks at the close of business December 26: Merchants' Trust company-Assets, $3.655,055; liabilities, $2,132,319. American Savings bank-Assets, $758,703; liabilities, $758,703. Deposits in these institutions exceed $2,000,000. Since the recent absorption of the Mechanics' Savings bank by the American Bank and the of the former concern been business Savings Trust American. company has conducted directly by the

4. December 28, 1905 The Waxahachie Daily Light Waxahachie, TX
Article from The Waxahachie Daily Light, December 28, 1905

Click image to open full size in new tab

Article Text

RUN ANTICIPATED. This Was the Cause of Suspension of Merchants' Trust Company. Memphis, Dec. 28.-Anticipation of a heavy run on the Merchants' Trust company. preliminary intimation ot which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of a receiver. The American Savings Bank and Trust company. which is dominated by the directors of #the Merchants' Trust company. fearing the failure of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchant Savings bank shall have been adjusted. The American Savings Bank and Trust company, It is said, will suffer to the extent of 20 per cent on the capital Invested. as the liquidation of the bank's finances 19 expected to entall a stight loss, The assets of the Merchant's Trust company greatly exceed the liabilities The American Savings Bank and Trust company, according to its latest statement, is in excellent condition.

5. December 28, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, December 28, 1905

Click image to open full size in new tab

Article Text

MEMPHIS BANKS CLOSE ANTICIPATION OF RUN THE CAUSE OF ASSIGNMENTS. One of the Concerns Will Pay Dollar for Dollar, While Creditors of the Other will Lose Money. Memphis, Dec. 27.-Anticipation of a heavy run on the Merchants' Trust Company, 111 Madison Street, preliminary intimation of which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of a receiver. The American Savings Bank and Trust Company, 166 South Main Street, which is dominated by the directorate of the Merchants' Trust Company. fearing that the failure of the other institution would cause a run on its own deposits. also suspended payment until the affairs of the Merchants' Trust Company shall have been adjusted. The American Savings Bank and Trust Company, it develops, recently absorbed the Mechanics' Savings Bank, at Main and Calhoun Streets, and took charge of the latter company's business. It is stated by the officials of these institutions that the depositors will be fully protected and paid dollar for dollar. The stockholders of the Merchants' Trust Company, it is said, will suffer to the extent of 20 per cent. on the capital invested, as the investigation of the bank's finances are expected to entail a slight loss. The assets of the Merchants' Trust Company greatly exceed the liabilities. The American Savings Bank and Trust Company, according to its latest statement. is in excellent condition, and is carrying more ready cash than is usual for an institution of its size. The Merchants Trust Company has on hand only $30,000. the remainder of its canital being loaned out. The fact that the bank had overloaned and the stringency of the New York money market, are the direct causes of the suspension. John P. Edmonson, a prominent attorney of this city and one of the directors, has been appointed receiver for the Merchants' Trust Company. A. Y. Allen, cashier of the American Savings Bank and Trust Company has been named as the receiver of that institution. The decision not to open the doors of the Merchants' Trust Company today was reached after an all-night conference of the Board of Directors. Felix T. Pope. President of the Merchants' Trust Company, gave out the following statement: "The Bank is amply solvent and every depositor will be paid in full. "The stockholders will undoubtedly realize a large percentage of their investments. "The Merchants' Trust Company had loaned too much money and was unable to realize on its loans fast enough to meet the demands. "I am not in position to make a statement now as to reorganization or future plans." W. A. Percy, attorney for the Merchants' Trust Company and the directors of that institution make the statement that all depositors, both of the Merchants' Trust Company and the American Savings Bank and Trust Company, will be paid in full. e Statements of the financial status of the closed banks at the close of busi, ness December 26: ) Merchants' Trust Company-Assets, ) $3,665,055; liabilities, $2,132,310. American Savings Bank-Assets, $758,703; liabilities, $758,703. , The deposits in these institutions exceed $2,000,000. :

6. December 28, 1905 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, December 28, 1905

Click image to open full size in new tab

Article Text

MEMPHIS HAS THREE FAILURES By Associated Prese Memphis. Dec. 27.-The Merchants' Trust Company has closed its doors and a receiver has been appointed. Felix T. Pope is president of the Merchants Trust Company. The institution has a capital stock of $200,000.

7. December 28, 1905 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, December 28, 1905

Click image to open full size in new tab

Article Text

Two Memphis Banks Go Under. MEMPHIS, Tenn., Dec. 28.-Anticipation of a heavy ryn on the Merchants' Trust company here, preliminary intimation of which was given by the withdrawal of many deposits. was the inimediate cause of the suspension of that bank and the appointment of a receiver. The American Savings Bank and Trust company, which is dominated by the directors of the Merchants' Trust company, fearing that the suspension of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants' Trust company shall have been adjusted.

8. December 29, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, December 29, 1905

Click image to open full size in new tab

Article Text

Memphis, Tenn., December 27.-Anticipationof a heavy run on the Merchants Trust Company, 11 Madison street preliminary intimation of which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of a receiver today. The American Savings Bank and Trust Company, 176 south Main street, which is dominated by the directors of the Merchants Trust Company fearing that the failure of the other institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants Trust Company shall have been adjustd. The American Savings Bank and Trust Company, it developed, recently absorbed the Mechanics Savings Bank, at Main and Calhoun streets, and took charge of the latter company's business. It is stated by the officials of both institutions that the depositors will be fully protected and paid dollar for dollar. The stockholders of the Merchants Trust Company, it is said, will suffer to the extent of 20 per cent. on the capital invested, as the liquidation of the banks finances are expected to entail a slight loss. The assets of the Merchants Trust Company generally exceed the liabilities. The American Savings and Trust Company, according to its latest statement is in excellent condition and is carrying more ready cash than is usual for an institution of its size. The Merchants Trust Company has en hand only $30,000, the remainder of its capitalization being loaned out. The fact that the bank had overloaned and the stringency of the New York market are given as the direct cause of the suspension. John P Edmondson, a prominent attorney of this city and one of the directors has been apointed receiver for the Merchants Trust Company. A. Y. Allen, cashier of the American Savings and Trust Company has been appointed receiver of that instituion. The decision not to open the doors of the Merchants Trust Company today was reached after an all night session of the board of directors. Felix T. Pope, president of the Merchants Trust Company, gave out the following statement: "The bank is amply solvent and every depositor will be paid in full. "The stockholders will undoubtedly realize a large percentage of their investments. "The Merchants Trust Company had loaned too much money and was unable to realize on its loans fast enough to meet the demands. "I am not in a position to make a statement now as to re-organization or future plans." W. A. Percy, attorney for the Merchants Trust Company and the directors of that institution make the statement that all depositors, both of the Merchants Trust Company and the American Savings and Trust Company will be paid in full. Statements of the financial status of the closed banks at the close of business December 26: Merchants Trust Company, assets $3,665,055; liabilities $2,132,319. American Savings Bank, assets $758,783: liabilities $758,703. The deposits in both institutions exceed $2,000,000. C. W. Schultt, president of the Memphis Clearing House Association made the following statement in behalf of the association: "Fifteen days ago the Merchants Trust Company applied to the Memphis Clearing House Association for help. "The Clearing House Association appointed a committee to investigate the matter. The committee went over the assets of the Merchants Trust Company as carefully as the limited time allowed and the association advanced through the Merchants Trust Company the sum of $160,000.

9. December 29, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, December 29, 1905

Click image to open full size in new tab

Article Text

Merchants Trust Company First to Suspend. DEPOSITORS ARE SAFE of Such is the Declaration of Officials Both, Institutions. American Savings Bank, the Second Institution, Dominated by Directors of the First Named. (By the Associated Press.) Memphis, Tenn., Dec. 27.-Anticipation of a heavy run on the Merchants Trust Company, 11 Madison of street, preliminary intimation which was given by the withdrawal of many deposits Tuesday afternoon, was the immediate cause of the suspension of that bank and the appointment of a receiver today. The American Savings Bank and Trust Company. 176 South Main street is dominated by the Merchants of which the Trust Company, the directors other fearing that the failure of institution would cause a run on its own deposits, also suspended payment until the affairs of the Merchants Trust Company shall have been adjusted. The American Savings Bank and Trust Company, it developed, recently absorbed the Merchants Savings Bank, at Main and Calhoun streets and took charge of the latter company's búsiness. It is stated by the officials of both institutions that the depositors will be fully protected and paid dollar for dollar. The stock holders of the Merchants Trust Company, it is said, will suffer to the extent of 20 per cent on the capital invested, as the liquidation of to the bank's finances are expected entail a slight loss. The assets of the Merchants Trust Company greatly exceed the liabilities. The American Savings Bank and Trust Company, according to its latest statement, is in excellent condition is and carrying more ready cash then usual for an institution of its size. The Merchants Trust Company has on hand only $30,000. the remainder of its capital having been loaned out. The fact that the bank had overloaned and the stringency of the New York money market are given as the direct cause of the suspension. John P. Edmondson, a prominent attorney of this city, and one of the directors, has been appointed receiver A. for the Merchants Trust Company. Y. Allen, cashier of the American Savings Bank and Trust Company has been appointed receiver of that institution. The decision not to open the doors of the Merchants Trust Company today was reached after an all night session of the board of directors. Says the Bank is Solvent, Felix T. Pope, president of the Merchants Trust Company, gave out the following statement: "The bank is solvent and every depositor will be paid in full. "The stockholders will undoubtedly realize a large percentage of their investments. "The Merchants Trust Company had loaned too much money and was unable to realize on its loans fast enough to meet the demands. "I am not in a position to make a statement now as to reorganization or future plans.' W. A. Percy, attorney for the Merchants Trust Company, and the direc- the tors of that institution make that all depositors of both Trust statement the Merchants Company Trust Com- and the American Savings and pany will be paid in full. Statements of the financial status of the closed banks at the close of business December 26: Merchants Trust Company, assets, $2,132,319; liabilities, $3,665,055; American Savings Bank, assets, $758.783: liabilities, $758,703. The deposits in both institutions exceed $2,000,000. C. W. Schulte's Statement. C. W. Schulte, president of the Memphis Clearing House Association, made of the following statement in behalf the association: 'Fifteen days ago the Merchants Trust Company applied to the Memphis Clearing House Association for help. The Clearing House Association appointed a committee to investigate the matter. The committee went over the assets of the Merchants Trust Company are carefulty as the limited time allowed and the association advanced through the Merchants Trust Company the sum of $160,000. "Subsequent investigation revealed the fact that while it was the opinion of the members of the Clearing House Association that the depositors of the concern are safe. yet it would take an extraordinary large sum to pay all immediate demands. In the interests of the city and the depositors, and of the various institutions of the city, which for the last month had anticipated some such movement, it was deemed wisest to allow the concern to close its doorsRepresentatives of the large banks New York, Chicago and St. Louis are of in the city with great quantities of money in furtherance of the legitimate business interests of the city. "Old and experienced bankers and members of the Memphis situation Clearing House Association have the well in hand. No danger is appreand the commercial interests are competent any hended of the city to arise." meet situation that is liable to AN ASTOUNDING STORY.

10. December 30, 1905 The Sun Tallahassee, Jacksonville, FL
Article from The Sun, December 30, 1905

Click image to open full size in new tab

Article Text

In anticipation of a run, two financial institutions at Memphis, Tenn., have been forced to suspend business. The officials of the two concerns involved, the Merchants' Trust Company and the American Savings Bank and Trust Company, have made the statement that the depositors will be protected. Receivers have been appointed. C. W. Schulte, presi-

11. December 30, 1905 Gainesville Daily Sun Gainesville, FL
Article from Gainesville Daily Sun, December 30, 1905

Click image to open full size in new tab

Article Text

TRY TO REMOVE RECTIVER. Who Was Appointed in Memphis Bank Falures. Memphis, Dec. 29.-A bill has been filed and will be argued before Chan celler Heiskell seeking to have John P. Edmondson, removed as receiver of the Merchants' Trust company which closed Its doors Wednesday. The bill was filed by T F. Worrell end W. F. Ladd. who sue for themselves and all other creditors of the Merchants Trust company. The bill sets forth that the Hablit ties of the Merchants' Trust company amounts to $3,300,000. and that the ILY. sets of the institution are only $2,500... 000, when the same are realized on. The bill alleges that the company is Insolvent, and owes $500,000 more than It further alits assets will bring. leges that Receiver Edmondson Is a director in the Merchants' Trust com. pany, and a large stockholder. and the court is asked to appoint another re celver.

12. December 31, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, December 31, 1905

Click image to open full size in new tab

Article Text

MAY RESUME BUSINESS. Merchants Trust Company Stockholders Have Meeting. Memphis .Tenn. Dec. 30.-At a conference of stockholders of the suspended Merchants Trust Company held late today steps were taken looking to rehabilitation. A committee of disinterested parties was appointed to Investigate the affairs of the company. secure an Audit of the books and to report at a meeting to be held next week when Sik obable definite action will be the John P. Edmundson, named as temporary receiver was endorsed. as permanent receiver Mr. Edmundson stated that within a few days he believes he can raise $500,000 for the benefit of the company. At the meeting stockholders agreed to pay $44,500, the amount of stock of the American Savings Bank and Trust Company, which suspended on the same day as the Merchants Trust Company, owned by the latter institution. The whole amount practically was subscribed before adjournment of the meeting. This proposition will be referred to Chancellor Helskell and if accepted it is announced that the institution will resume business Tuesday. A. Y. Allen was endorsed as permanent receiver of the American Savings Bank and Trust Company at the meeting, 3,632 shares of 5,000 being represented.

13. December 31, 1905 The St. Louis Republic Saint Louis, MO
Article from The St. Louis Republic, December 31, 1905

Click image to open full size in new tab

Article Text

TRUST COMPANY MAY REOPEN. Memphis Stockholders Take Steps to Resume Business. Memphis, Tenn., Dec. 30-At a conferonce of the stockholders of the suspended Merchants' Trust Company, held late today. steps were taken looking to a rehabilitation of that institution A committee of disinterested persons was appointed to investigate the affairs of the company. secure an auditing of the books and to report at a meeting to be held next week. when It is probable deflnite action will be taken. John P. Edmunson. named as temporary receiver was Indorsed as permanent recelver. It 1- announced that the institution may resume business on Tuesday.

14. January 2, 1906 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, January 2, 1906

Click image to open full size in new tab

Article Text

MAY SOON RESUME BUSINESS Steps Taken Toward Rehabilitation of the Suspended Merchant Trust Company in Memphis. Memphis, Tenn., December 30.-At a conference of stockholders of the suspended Merchants Trust Company, held late tonight, steps were taken looking to a rehabilitation of that institution. A committee of disinterested parties were appointed to investigate the affarra of the company, secure an audit of the books, and to report at 3 meeting to be limit rext week when it is probable definite action will be taken. John P. Edmundson, named as temporary receiver, was endorsed as permanent receiver. Mr. Edmundson stated that within a few days he believed he could raise $500,000 for the relief of the company. At the meeting stockholders agreed to pay $44,500 the amount of stock of the American Savings and Trust company which suspended on the same day as the Merchants Trust Company, owned by the latter institution. The whole amount practically was subscribed before adjournment of the meetings. This proposition will be referred to Chancellor Heiskell, and if accepted it is announced that the institution will resume business on Tuesday. Mr. A. Y. Allen was endorsed as permanent receiver of the American Savings Bank and Trust Company. At the meeting 3,632 shares of 5,000 were represented.

15. January 2, 1906 The Farmer and Mechanic Raleigh, NC
Article from The Farmer and Mechanic, January 2, 1906

Click image to open full size in new tab

Article Text

BANK TO RESUME BUSINESS. Meeting of the Stockholders of the Suspended Merchants Trust Company. (By the Associated Press.) Memphis, Tenn., Dec. 30.-At a conference of stockholders of the suspended Merchants Trust Company, held late tonight, steps were taken looking to a rehabilitation of that institution. A committee of disinterested parties were appointed to investigate the affairs of the company, secure an audit of the books and to report at a meeting to be held next week when it is probably definite action will be taken. John P. Edmundson, named as temporary receiver, was endorsed as permanent reciever. Mr. A. Y. Allen was endorsed as permanent receiver of the American Savings Bank and Trust Company.

16. January 2, 1906 The Morris County Chronicle Morristown, NJ
Article from The Morris County Chronicle, January 2, 1906

Click image to open full size in new tab

Article Text

BANKS IN MEMPHIS FAIL Trouble Ascribed to Too Ambitious Consolidation. Generally Believed That Depositors Will Be Paid and That the Stockholders Will Not Lose Heavily. Memphis, Tenn.-The Merchants' Trust Company, the American Savings Bank and the Mechanics' Savings Bank failed to open their doors for business in the morning. The three institutions are related and an application for a receiver on the report of the officers and directors of the Merchants' Trust Company late at night caused the other two to take precautions, anticipating a run. No depositors will lose, so all the officers say. Heavy withdrawals of deposits from the Mercliants' Trust Company, which corporation conducted a Savings Bank feature in addition to its interests in the other banks named, caused the reeeivership application to be filed. The officers of the Merchants' Trust Company and the American Savings Bank and Trust Company gave out statements. The Mechanics' Savings Bank, claiming to be intact, made no statement. Merchants' Trust Company assets, $3,665,055; liabilities, $2,132,319. American Savings Bank assets, $7,643,193.82; liabilities, $614,178.88. The deposits of these two will go over two millions and the Merchants' Bank will add half a million more. Felix Pope, President of the trust company, says that all the depositors will be paid in full, though the stockholders may lose a heavy percentage. President Pope is a large stockholder and a director in the other two, and speaks for them also. The reason assigned for the failures is the over confidence and consequent liberal branching out of the Merchants' Trust Company, which recently absorbed the Memphis National Bank. taking over all of its liabilities without getting all of its directors, stockholders and depositors, who were among the conservative business men of Memphis. Afterward the trust company took over the American Savings Bank and an interest in the Mechanics' Savings Bank, without interesting the leading men of the two institutions. C. W. Schulte, President of the Memphis Clearing House. who is also President of the State National Bank of Memphis, said that every other financial institution here was amply able to take care of itself and ascribed the foregoing reasons as the cause of the present failures. The presidents and cashiers of other leading banks here were in line with the Clearing House President in their statements. At a late hour in the afternoon W. A. Percy, attorney for the Merchants' Trust Company, on behalf of the directors said: "All depositors will be paid in full. No one, save possibly the stockholders. of either institution will suffer any loss. I do not think the latter will lose more than twenty per cent. in the liquidation proceedings, if so much." It is possible that the corporations involved may be placed on a sound footing and reorganized with even less loss to the stockholders. At the close of business at night only $50,000 was in the vaults of the Merchants' Trust Company. No report was made as to the cash on hand of the other two banks.

17. January 4, 1906 The Brandon News Brandon, MS
Article from The Brandon News, January 4, 1906

Click image to open full size in new tab

Article Text

May Resume Business. Memphis.-At a conference of the stockholders of the suspended Merchants' Trust Company held, steps were taken looking to a rehabilitation of that institution. A committee of secure an audit of the books and to investigate the affairs of the company, secure an audit o fthe books and to report at a meeting to be held next week when it is probable that definite action will be taken. John E. Edmonson, named as temporary receiver, was endorsed as permanent receiver. Mr. Edmonson stated that within s few days he believes that the can raise $500,000 for the relief of the company. At the meeting stockholders agreed to pay $44,500 the amount of stock of the American Savings Bank and Trust Company, which suspended on the same day as the Merchant's Trust Company, owned by the latter institution. The whole amount practically was subscribed before the adjournment of the meeting. This proposition will be referred to Chancellor Heiskell and if accepted it is announced that the institution will resume business on Tuesday. A. Y. A1len was endorsed as permanent receiver of the American Savings Bank and Trust Company. At the meeting 3,632 shares of the 5,000 were represented.

18. January 5, 1906 The Penn's Grove Record Penns Grove, NJ
Article from The Penn's Grove Record, January 5, 1906

Click image to open full size in new tab

Article Text

BANKS IN MEMPHIS FA Trouble Ascribed to Too Ambitious Consolidation. Generally Believed That Depositors Will Be Paid and That the Stockholders Will Not Lose Heavily. Memphis, Tenn.-The Merchants' Trust Company, the American Savings Bank and the Mechanics' Savings Bank failed to open their doors for business in the morning. The three institutions are related and an application for a receiver on the report of the officers and directors of the Merchants' Trust Company late at night caused the other two to take precautions, anticipating a run. No depositors will lose, so all the officers say. Heavy withdrawals of deposits from the Merchants' Trust Company, which corporation conducted a Savings Bank feature in addition to its interests in the other banks named, caused the receivership application to be filed. The officers of the Merchants' Trust Company and the American Savings Bank and Trust Company gave out statements. The Mechanics' Savings Bank, claiming to be intact, made no statement. Merchants' Trust Company assets, $3,665,055; liabilities, $2,132,319. American Savings Bank assets, $7,643,193.82; liabilities, $614,178.88. The deposits of these two will go over two millions and the Merchants' Bank will add half a million more. Felix Pope, President of the trust company, says that all the depositors will be paid in full, though the stockholders may lose a heavy percentage. President Pope is a large stockholder and a director in the other two, and speaks for them also. The reason assigned for the failures is the over confidence and consequent liberal branching out of the Merchants' Trust Company, which recently absorbed the Memphis National Bank, taking over all of its liabilities without getting all of its directors, stockholders and depositors, who were among the conservative business men of Memphis. Afterward the trust company took over the American Savings Bank and an interest in the Mechanics' Savings Bank, without interesting the leading men of the two institutions. C. W. Schulte, President of the Mem. phis Clearing House, who is also President of the State National Bank of Memphis, said that every other financial institution here was amply able to take care of itself and ascribed the foregoing reasons as the cause of the present failures. The presidents and cashiers of other leading banks here were in line with the Clearing House President in their statements. At a late hour in the afternoon W. A. Percy, attorney for the Merchants' Trust Company, on behalf of the directors said: "All depositors will be paid in full. No one, save possibly the stockholders. of either institution will suffer any loss. I do not think the latter will lose more than twenty per cent. in the liqui-dation proceedings, if so much." It is possible that the corporations involved may be placed on a sound footing and reorganized with even less loss to the stockholders. At the close of business at night only $50,000 was in the vaults of the Merchants' Trust Company. No report was made as to the cash on hand of the other two banks.

19. January 5, 1906 Greene County Herald Leakesville, MS
Article from Greene County Herald, January 5, 1906

Click image to open full size in new tab

Article Text

May Resume Business. Memphis.-At a conference of the stockholders of the suspended Merchants' Trust Company held, steps were taken looking to a rehabilitation of that institution. A committee of secure an audit of the books and to investigate the affairs of the company, secure an audit o fthe books and to report at a meeting to be held next week when it is probable that definite action will be taken. John E. Edmonson, named as temporary receiver, was endorsed as permanent receiver. Mr. Edmonson stated that within a few days he believes that he can raise $500,000 for the relief of the company. At the meeting stockholders agreed to pay $44,500 the amount of stock of the American Savings Bank and Trust Company, which suspended on the same day as the Merchant's Trust Company, owned by the latter institution. The whole amount practically was subscribed before the adjournment of the meeting, This proposition will be referred to Chancellor Heiskell and if accepted it is announced that the institution will resume business on Tuesday. A. Y. Allen was endorsed as permanent receiver of the American Savings Bank and Trust Company. At the meeting 3,632 shares of the 5,000 were represented.

20. January 11, 1906 The Brandon News Brandon, MS
Article from The Brandon News, January 11, 1906

Click image to open full size in new tab

Article Text

Would Take Over Business. Memphis, Tenn.-The Commercial Trust and Savings Bank has officially offered to take over the affairs of the American Savings Bank, and Trust Company one of the institutions which recently suspended business in connection with the failure of the Merchants Trust Company. The matter has been placed in the hands of Chancellor Heiskell for approval.

21. January 18, 1906 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, January 18, 1906

Click image to open full size in new tab

Article Text

# IN A NUT SHELL Lieutenant General Adna R. Chaffee, chief of staff, favors the army bill providing for a reserve of 50,000 men. Leon Zolotkopf of Chicago was elected grand master of the Order of the Knights of Zion at the convention in St. Louis. Regular train service on the road built between Elkins and Charleston, W. Va., by ex-Senator Henry Gassaway Davis was inaugurated Jan. 1. Andrew Carnegie has a pipe organ for an alarm clock. He is wakened every morning by the strains of "Lead, Kindly Light" or "Silent Night." E. E. McDaniel, president of the Dallas Abstract Company, was shot and killed in a Dallas, Texas, saloon by Elmo Trimble, a discharged employe. Governor Herrick of Ohio, as a New Year's gift, pardoned Leonard Kitzel-man, who has served twenty-three years for murder in the second degree. James Kittredge, who was a patient in a private sanitarium in Philadelphia, jumped from a second-story window of the institution and was instantly killed. The Montreal Express on the Boston and Maine railroad was wrecked at Wallamoosac station, New York, and seven persons injured. The switch had been spiked and the signal light turned to indicate a clear track. The Wabash lines east of Pittsburg have decided to issue no more passes. The Pittsburg and Lake Erie railroad of the Vanderbilt system has also abolished free transportation. A well-known ticket broker of St. Louis declared that 100 ticket brokers and hotel keepers around the Union station were compelled to pay money to the police for protection. While attending a ball at Hague, Va., Mrs. Mary Willoughby Brown Williams, wife of Professor John Roger Williams of Princeton University, was badly burned by her dress catching fire from a lamp. A cable dispatch from Caracas, Venezuela, says that the visit of courtesy of Mr. Bax-Ironside, British minister to Venezuela, to President Castro is resulting in a settlement of the dispute with Great Britain. Creditors of the failed Merchants' Trust Company at Memphis filed a bill asking for a new receiver in place of John P. Edmondson, who, they charge, is a director and heavy stockholder in the bank. They also declare that the liabilities are $3,000,000 and the assets $2,500,000. The Kansas Supreme Court at Topeka decided that a man who has murdered his wife may claim her property even though he killed her for the purpose of obtaining it. The case was that of the husband of Kate Brandt, who killed his wife and then made over her property to his attorneys. He is under sentence of death.

22. January 23, 1906 Wausau Pilot Wausau, WI
Article from Wausau Pilot, January 23, 1906

Click image to open full size in new tab

Article Text

IN A HELL Lieutenant General Adna R. Chaffee, chief of staff, favors the army bill providing for a reserve of 50,000 men. Leon Zolotkopf of Chicago was elected grand master of the Order of the Knights of Zion at the convention in St. Louis. Regular train service on the road built between Elkins and Charleston, W. Va., by ex-Senator Henry Gassaway Davis was inaugurated Jan. 1. Andrew Carnegie has a pipe organ for an alarm clock. He is wakened every morning by the strains of "Lead, Kindly Light" or "Silent Night." E. E. McDaniel, president of the Dallas Abstract Company, was shot and killed in a Dallas, Texas, saloon by Elmo Trimble, a discharged employe. Governor Herrick of Ohio, as a New Year's gift, pardoned Leonard Kitzelman, who has served twenty-three years for murder in the second degree. James Kittredge, who was a patient in a private sanitarium in Philadelphia, jumped from a second-story window of the institution and was instantly killed. The Montreal Express on the Boston and Maine railroad was wrecked at Wallamoosac station, New York, and seven persons injured. The switch had been spiked and the signal light turned to indicate a clear track. The Wabash lines east of Pittsburg have decided to issue no more passes. The Pittsburg and Lake Erie railroad of the Vanderbilt system has also abolished free transportation. A well-known ticket broker of St. Louis declared that 100 ticket brokers and hotel keepers around the Union station were compelled to pay money to the police for protection. While attending a ball at Hague, Va., Mrs. Mary Willoughby Brown Williams, wife of Professor John Roger Williams of Princeton University, was badly burned by her dress catching fire from a lamp. A cable dispatch from Caracas, Venezuela, says that the visit of courtesy of Mr. Bax-Ironside, British minister to "Venezuela, to President Castro is resulting in a settlement of the dispute with Great Britain. Creditors of the failed Merchants' Trust Company at Memphis filed a bill asking for a new receiver in place of John P. Edmondson, who, they charge, is a director and heavy stockholder in the bank. They also declare that the liabilities are $3,000,000 and the assets $2,500,000. The Kansas Supreme Court at Topeka decided that a man who has murdered his wife may claim her property even though he killed her for the purpose of obtaining it. The case was that of the husband of Kate Brandt. who killed his wife and then made over her property to his attorneys. He is under sentence of death.