2288. Merchants Bank (Atlanta, GA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 16, 1896
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
d7d331ba185c1976

Response Measures

None

Description

Multiple contemporaneous articles (Oct 16, 1896) report heavy withdrawals triggered by a rumor about tax collector A. P. Stewart's deposits, producing a run and the bank's making an assignment (receivership). Receivers' statements and payments/asset liquidation follow; the bank did not reopen as an operating bank.

Events (3)
1. October 16, 1896 Run
Cause
Rumor Or Misinformation
Cause Details
Rumor that tax collector A. P. Stewart had been asked not to draw $49,000; his withdrawal plus rumor-driven withdrawals precipitated heavy outflows
Measures
Bank officers made assignment/closed doors; no evidence of temporary measures to meet withdrawals besides eventual assignment
Newspaper Excerpt
The failure of the bank was due to the withdrawal of deposits within the last few days caused by a rumor ... Tax Collector A. P. Stewart ... withdrew the $49,000, and that, coupled with the withdrawals caused by the rumor, occasioned embarrassment
Source
newspapers
2. October 16, 1896 Suspension
Cause
Voluntary Liquidation
Cause Details
Bank made an assignment for benefit of creditors (voluntary liquidation/assignment) after being embarrassed by withdrawals and rumor
Newspaper Excerpt
The Merchants' Bank ... closed its doors this morning, having made an assignment for the benefit of its creditors. J. G. Oglesby and George W. Scott are named as assignees.
Source
newspapers
3. October 30, 1896 Receivership
Newspaper Excerpt
The receivers of the Merchants Bank filed their statement of assets and liabilities to-day. ... Receiver Oglesby has made a statement for publication ... whether the depositors will get paid in full depends upon the availability of the assets ... total liabilities are $375,894.28.
Source
newspapers

Newspaper Articles (23)
1. October 16, 1896 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 16, 1896

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AN ATLANTA BANK FAILURE. Merchants Bank, One of the Oldest in the City, Closes. Atlanta, Ga., Oct. 16. - -The Merchants' Bank, one of the oldest and for many years soundest financial institutions in this city closed its doors this morning having made an assignment for the benefit of its creditors. J. G. Oglesby and George W. Scott, are named as assignees. The failure was not unexpected in financial circles, but its announcement created considerable excitement among the bank's depositors, a large crowd of whom quickly gathered about the unopen doors. A notice posted on the door simply stated that the bank had assigned to J. M. Oglesby, George W. Scott, and George Winship and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawal of deposits within the last few days caused by a rumor to the effect that tax collector A. P. Stewart, who had $49,000 on deposit there has been asked by the bank officials not to check any of this money out. The officials deny that any such request was made. All of Stewart's checks were honored. He withdrew the $49,000 and that coupled with the withdrawals caused by the rumor occasioned embarrassment and it was deemed best to go into liquidation. The amount owed depositors is $275,000. There is no run on any of the other banks.

2. October 16, 1896 Evening Star Washington, DC
Article from Evening Star, October 16, 1896

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CAUSED BY A WILD RUMOR. The Merchants' Bank of Atlanta Closes Its Doors. ATLANTA, Ga., October 16.-The Merchants' Bank, one of the oldest and for many years soundest financial institutions in this city, closed its doors this morning, having made an assignment for the benefit of its creditors. J. G. Oglesby and George W. Scott are named as assignees. The failure was not unexpected in financial circles, but its announcement created considerable excitement among the bank's depositors, a large crowd of whom quickly gathered about the unopened doors. A notice posted on the door simply stated that the bank had assigned to Judge Oglesby, George W. Scott and George Winship, and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawal of deposits within the last few days, caused by a rumor to the effect that the tax collector, A. P. Stewart, who had $49,000 on deposit there, had been asked by the bank officials not to check any of this money out. The officiais deny that any such request was made. All of Stewart's checks were honored. He withdrew the $49,000, and that, coupled with the withdrawals caused by the rumor, occasioned the embarrassment, and it was deemed best to go into liquidation. The amount owed depositors is $275,000. There is no run on any of the other banks.

3. October 16, 1896 Las Vegas Daily Optic Las Vegas, NM
Article from Las Vegas Daily Optic, October 16, 1896

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Bank Assigns. ATLANTA, Georgia, October 16.The Merchants' bank, twenty-two years old, assigned to-day. The sum of $275,000 is due the depositors, but the bank claims that it will pay all depositors in full. Other banks are not affected. Heavy withdrawals were the cause of the assignment.

4. October 17, 1896 The Herald Los Angeles, CA
Article from The Herald, October 17, 1896

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A BROKEN BANK. A Georgia Concern Closed by Withdrawals of Deposits. ATLANTA, Ga., Oct. 16.-The Merchants' bank, for many years one of the soundest financial institutions of this city, closed its doors this morning, having made an assignment for the benefit of its creditors. J. G. Oglesby and Geo. W. Scott are named assignees. The failure was not unexpected in financial circles, but the announcement created considerable excitement among the banks' depositors, a large crowd of whom quickly gathered about the unopened doors. The notice posted on the doors simply stated that the bank had assigned to J. G. Oglesby and Geo. W. Scott, and it was believed all depositors would be paid in full. The failure was due to the withdrawal of deposits within a few days, caused by a rumor that Tax Collector A. P. Stewart, who had $49,000 on deposit, had been asked by the bank officials not to check any of this money out. The off-

5. October 17, 1896 Birmingham State Herald Birmingham, AL
Article from Birmingham State Herald, October 17, 1896

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PERSONAL SPITE DID IT. That Is How Officials of the Merchants' Bank of Atlanta Explain the Assignment. The Depositors Are Assured. Atlanta, Ga., Oct. 16.-The Merchants' bank of Atlanta closed its doors this morning, an assignment having been made to J. G. Oglesby, George W. Scott and George Winship. The capital stock of the bank was $200,000. The bank owed depositors $275,000, and its total liabilities were $365,000. Of this $90,000 is due to other banks. The immediate cause of the bank's collapse was a run caused by rumors following the withdrawal of the county and state funds. In the past ten days A. J. Stewart, tax collector of this county, withdrew $55,000 due the county and state. This got out on the streets and quiet withdrawals by depositors followed. The bank stood the run for ten days, and the officers state that they could have kept open for two weeks longer, but concluded that it would be best to liquidate as soon as possible. President Portere and the directors say that the depositors will get every dollar and that the stockholders will receive at least 75 cents on the dolar. The bank was organized twenty-four years ago. One of the directors says that the failure was brought about by a fight made on it from the outside by parties who had a personal grievance against some of the officials. The Merchants' owed nothing to the city banks here. It made no request of the clearing house for assistance. Some of the other banks paid out gold today to quiet any uneasiness that might be felt. All other banks in the city are pronounced to be safe.

6. October 17, 1896 The Laramie Republican Laramie, WY
Article from The Laramie Republican, October 17, 1896

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ATLANTA BANK FAILS. Unable to Stand the Strain Under Many Withdrawals. Atlanta, Ga., Oct. 16.-The Merchants' bank, one of the oldest and for many years the soundest financial institutions in this city. closed its doors this morning, having made an assign. ment for the benefit of its creditors. J. G, Oglesby and George W. Scott are named as assignees. The failure was not unexpected in financial circles, but its announcement created considerable excitement among the bank's depositors, a large crowd of whom quickly gathered about the unopened doors. A notice posted on the door simply stated that the bank had assigned to J. G. Oglesby and George W. Scott, and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawal of deposits within the last few days, caused by a rumor to the effeet that Tax Collector A. P. Stewart, who had $49,000 on deposit there, had been asked by the bank officials not to check any of his money out. The of. ficials deny that any such request was made. All of Stewart's check were honored. He withdrew the $49,000, and that, coupled with the withdrawals caused by the rumor, occasioned embarrassment, and It was deemed best to go into liqudation. The amount owed depositors is $275,000. There is no run on any of the other banks.

7. October 17, 1896 The Roanoke Daily Times Roanoke, VA
Article from The Roanoke Daily Times, October 17, 1896

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ATLANTA BANK IN TROUBLE. The Merchants' Bank Makes an Assignment to Protect Its Creditors. Atlanta, Ga., Oct. 16.-The Merchants' Bank, one of the oldest and for many years soundest financial institutions in this city, closed its doors this morning, having made an"assignment for the benefit of its creditors. The failure was not unexpectedjin financial circles, but its announcement created considerable excítement among the bank's depositors, a large crowd of whom quickly gathered about the unopened doors. A notice posted on the door simply stated that the bank had_assigned to J. G. Oglesby, George W. Scott and George Winship, and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawals of deposits within the last few days caused by a rumor to the effect that Tax Collector "A. P. Stewart, who had $49,000 on deposit there, had been asked by the bank officials not to check any of this money out. The officials deny that any such request was made. All of Stewart's checks were honored. He with. drew the $49,000 and that, coupled with withdrawals caused by the rumor, occasioned embarrassment, and it was deemed best to go into liquidation. The amount owed depositors is $275,000. There is no run on any other bank.

8. October 17, 1896 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 17, 1896

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An Atlanta Bank Closed. ATLANTA, Ga., Oct. 16.-The Merchants' Bank, one of the oldest and for many years soundest financial institutions in this city, closed this morning. A notice posted on the door simply stated that the bank had assigned to J. G. Oglesby, George W. Scott and George Winship and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawal of deposits within the last few days, caused by a rumor to the effect that Tax Collector A. P. Stewart, who had $49,000 on deposit there, has been asked by the bank officials not to check any of this money out. The officials deny that any such request was made. All of Stewart's checks were honored. He withdrew the $49,000, and that, coupled with other withdrawals caused by the rumor, occasioned embarrassment and it was deemed best to go into liquidation. The amount owed depositors is $275,000. There is no run on any of the other banks.

9. October 17, 1896 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, October 17, 1896

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TROUBLES IN THE BUSINESS WORLD. Bay State Gas Company Thrown Into the Hands of n Receiver. WILMINGTON, Del., Oct. 16.-Before Judge Wales in the United. States circuit court today, ex-Senator Anthony Higgins made application for the appointment of receivers for the Bay State Gas company of New Jersey, the principal office being located here. Judge Wales granted the application, and named Augustus McCaulley, president of the Artisans' Savings bank of this city, and Dwight Braman of Boston receivers. Security in the sum of $25,000 was demanded. The appointment of receivers being only temporary, a rule was issued upon upon the office of the company, returnable November 7. restraining them from selling or disposing of any of the company's effects. The proceedings were entirely ex parte, Mr. Addicks not being represented. BOSTON, Oct. 16.-The Bay State Gas company of New Jersey was incorporated in 1889, principally for the purpose of consolidating the fourteen gas companies then supplying the city of Boston. This company, in addition to obtaining control of all the Boston gas companies, subsequently absorbed the Brookline Gas company at a cost of about $125,000. The financial statement on January 1, 1896, is as follows: Capital stock, 15,000,000; funded debt: Boston United Gas first mortgage sinking funds, gold, fifty years, $500 bonds, due January 1, 1939, interest January and July, $9,000,000; Boston Gas, second mortgage $500 bonds, due January 1, 1939, interest January and July, $3,000,000; Bay State Gas, income per cent, $1,000 bonds, due 1899, $2,000,000; total stocks and bonds issued, $29,000,000. The authorized issues under the mortgage of 1889 were $12,000,000, of which $7,000,000 is secured by the Mercantile Trust company, trustee of nearly all the stock of the Boston, South Boston, Roxbury and Bay State (of Massachusetts) Gas Light company of Boston, the reported cost of which to the company was $10,000,000. Of the balance, $5,000,000, $2,000,000 was reserved for betterment and improvements and $3,000,000 to acquire control of other gas companies. An annual sinking fund of 1 per cent of the entire issue was provided for and bonds can be drawn at 105. All bonds issued are deposited with the Mercantile Trust company, New York, which issued its Boston Gas trust certificates. PHILADELPHIA, Oct. 16.-Hexter Bros., wholesale clothiers, credited with a capital of $200,000. have failed. The liabilities are stated to be about $170,000. ATLANTA. Ga., Oct. 16.-The Merchants bang. one of the oldest and for many years soundest financial institutions in this city, closed its doors this morning, having made an assignment for the benefit of its creditors. J. G. Oglesby and George W. Scott are named as assignees. The failure was not unexpected in financial circles, but its announcement created considerable excitement among the bank's depositors, a large crowd of whom quickly gathered about the unopened doors. A notice posted on the door simply stated that the bank had assigned to J. M. Oglesby, George W. Scott and George Winship and that it was believed that all depositors would be paid in full. The failure of the bank was due to the withdrawal of deposits within the last few days, caused by a rumor to the effect that Tax Collector A. P. Stewart. who had $49,000 on deposit there. has been asked by the bank officials not to check any of this money out. The officals deny that any such request was made. All of Stewart's checks were honored. He withdrew the $49,000 and that. coupled with the withdrawals caused by: the rumor, occasioned embarrassment and it was deemed best to go into liquidatis The amount owed to depositors is $275,000. There is no run on any of the other banks. LITTLE FALLS, N. Y., One 16.-Freeman. Ives & Co., produce dealers, have assigned. Liabilities and assets and the cause of the failure as yet unknown. The firm was rated at from $150,000 to $300,000.

10. October 17, 1896 San Antonio Daily Light San Antonio, TX
Article from San Antonio Daily Light, October 17, 1896

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FOREIGN AND DOMESTI LATEST OFF THE WIRES FRO OVER THE WORLD. A Complete Epitome of the Day's Happe ings, Briefed and Boiled Down, up to Time of Going to Press. The attempt of the Popocrat to pull Watson off the Populis ticket is not yet accomplished. Effort is still being made un successfully to have Watso withdraw, in the interests . Sewall. Butler is satisfied with Pop cratic and Populist fusion, in a but four states. Watson takes his name off th Popocratic fusion ticket in Kar sas, but it remains on the middl of the road ticket. Watson leaves it with Butle to make public his letter of a ceptance. Butler is in a hole. Watson is ready to receive th Populist committee at any time. Michigan Furniture factory Holland, destroyed by fire; los $300,000. Tennessee Pops and Popocrat are to consider fusion today. Merchants bank of Atlant: closes doors. Deposits $270,000 No statement given. Carlisle urged to address the wage-earners of Baltimore, by : deputation of workmen. but can not go. Palmer and Buckner have : great reception down in Mobile. Watson says that Butler should have had his letter in his hand by this time. Iowa and New York get the name "National Democracy" or the sound money ticket. Rev. D. A. McRae is electe moderator of the Texas Presby terian Synod sitting in Houston Typographical union assume complete control of machinist and linotype men in printing offices and only union men car work in union offices. Receiver asked for the Butt Bros. dry goods house at For Worth. John D. Flewellen assigns a .

11. October 23, 1896 The Red Cloud Chief Red Cloud, NE
Article from The Red Cloud Chief, October 23, 1896

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ATLANTA BANK CLOSED. The Merchants, One of the Town's Oldest, Forced to Make an Assignment. ATLANTA, Ga., Oct. 17.-The Merchants bank, one of the oldest and for many years soundest financial institutions in this city, closed its doors this morning and made an assignment. The failure of the bank was due to the withdrawal of deposits within the last few days. The amount owed to depositors is $275,000. There is no run on any of the other banks.

12. October 23, 1896 Cottonwood Report Cottonwood, ID
Article from Cottonwood Report, October 23, 1896

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GEORGIA BANK CLOSES ITS DOORS Said to Be Caused by Withdrawal of Deposits. Atlanta, Ga., Oct. 16.-The Mechants' bank, for many years one of the soundest financial institutions in this city, closed its doors this morning, having made an assignment for the benefit of its creditors. J. G. Oglesby and George W. Scott are named as assignees. The failure was not unexpected in financial circles, but the announcement created considerable excitement among the bank's depositors, a large crowd of whom quickly gathered about the unopened doors. Notice posted on the door simply stated that the bank had assigned to J. M. Oglesby and George W. Scott, and that it was believed that all depositors would be paid in full. The failure was due to withdrawals of deposits within a few days, caused by the rumor that Tax Collector A. P. Stewart, who had $49,000 on deposit, had been asked by the bank officials not to check any of this money out. The officials deny that such a request was made. All of Stewart's checks were honored. He withdrew $49,000 and that occasioned the embarrassment. The amount owed depositors is $275,000.

13. October 24, 1896 The Universalist Chicago, Cincinnati, IL
Article from The Universalist, October 24, 1896

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TWENTY years have past since the wheat market has seen any such activity. Europeans have been accustomed to wait for war times before expecting such market excitement as seen in Liverpool yesterday. Their uniform cablegrams to Chicago agents were: "Wheat ex cited and 5d higher." On the continent the excitement was still greater. Paris and Antwerp felt the tremendous bulge of Saturday in the Berlin market. Berlin, which set the pace Saturday, advanced 31/2 cents yesterday. On the Pacific coast the net gain for the day was but 5 cents per cental, although at one time it was 8 cents. New York's opening gain was 5 cents, and of this it re. tained 3 cents until the close. December wheat in Chicago waswithin one-fourth of a cent of 80 cents at 11 o'clock Monday morning. This was the highwater mark of the day. Two years ago on October 19, December wheat sold at closing at 60% cents. The closing price was 77%, or 17 cents higher than two years ago. The biggest bear on the market could not take cheer out of that comparison, especially since the foreign demand continues strong and without a sign of letting up. The advance was not checked by the posted figures showing an increase in the visible supply of 2,500,000 bushels, making a grand total in sight of 55,000,000. Europe wanted wheat-wants it still-and that badly. America has the grain. Chicago is the great distributing point. No one better explains the situation or makes it more plain why the eyes of the whole world are now turned to the wheat stores of America than John Hyde, expert special agent of the eleventh census, in his statement: "It is worthy of note that in 1867 and 1868 the failure of crops in Great Britain, which the United States was unable to make good out of its own surplus, caused an advance in price of no less than 42 cents a bushel. Wheat during the last ninety days, owing to deficient harvests in other countries, has advanced from 64 cents to 78 cents per bushel." THE Bay State Gas Company was last week placed in the hands of receivers by the United States Court at Wilmington, Delaware, on the application of William Buchanan, a New York stockholder. A rule was issued upon the officers of the company, returnable, No_ vember 7, restraining them from disposing of any of the company's effects. The Merchants' Bank of Atlanta, Georgia, closed its doors. It is said the failure was "due to a persistent fight made by outsiders on President J. H. Porter." The President says that depositors will get every dollar back. The Willimantic, Conn, Savings Institute suspended payment of deposits yester. day requiring the four months' notice allowed by law. This action was determined upon by the directors owing to recent heavy withdrawals and in order to prevent the sacrifice of the bank's securities. Freman Ives & Co., produce dealers of Little Falls, New York, have assigned. The firm's capital was rated at from $150,000 to $300,000. The assets and liabilities are unknown. A Houghton, Michigan, despatch says that the Sturgeon River Lumber Company, the largest and oldest lumbering concern in the copper district, is in financial difficulties. A DISPATCH on Friday from Juneau,

14. October 31, 1896 The Morning News Savannah, GA
Article from The Morning News, October 31, 1896

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ATLANTA'S BROKEN BANK. The Receivers Make a Statement Concerning Its Assets. Atlanta, Ga., Oct. 30.-The receivers of the Merchants Bank filed their statement of assets and liabilities to-day. The total assets, without real estate, are $711,131.95. Of this amount, however, there are worthless assets amounting to $216,811.11. Deducting this, there is a balance of $494,320.84. This includes loans and discounts, amounts due from banks and bankers, cash items and bonds, and stocks. The proportion of the amount collectable depends largely on the condition of business after the election. Under favorable conditions a large proportion will be collected. The assigness put no estimate on the real estate, but the cost of it was $83,357.78. The total liabilities are $375,894.28. Receiver Oglesby has made a statement for publication in which he says whether the depositors will get paid in fully depends upon the availability of the assets, and the activity of the real estate market, the real estate being largely depended spon.

15. November 4, 1896 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, November 4, 1896

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Domestic. Wheat fell in American markets owing to sales of long stock, but the foreign demand was not lessened. Bradstreet's, too, announced 5,000,000 bushels increase in the world's visible stock. W. T. Rambusch, the absconding banker from Juneau, Wis., committed suicide in the National Cemetery at Fredericksburg, Va. A farmer named Buttks, who has a large income from oil leases, was murdered on his farm, about seventeen miles south of Toledo, Ohio, by robbers, and his wife seriously injured. The robbers obtained little booty. The total registration of Chicago is 383,515, an increase of 36,000 over 1894. Mr. Bryan spoke in twenty Indiana towns in one day. At Muncie gold men and silver men armed with clubs nearly had a collision. Dr. W. H. Gidding, Superintendent of the Vermont State Insane Asylum, was arrested, charged with maltreating female patients. Illinois Day was observed in Canton, Ohio, and Major McKinley received more than 9000 visitors. There was a great parade of horsemen. Mr. McKinley made seven speeches. Two men were killed and three injured while working on repairs to the University of Virginia building at Charlottesville, Va. A battle which occurred at Belle Ellen mines, Bibb County. Alabama, between white and colored miners, resulted in the death of two men and the wounding of two others. Major McKinley addressed at Canton, Ohio, delegations from Sewickley, Penn., and Summit County, Ohio. W. J. Bryan made a journey from Detroit to Zanesville, Ohio, making speeches at way stations. The town of Enfield, Mass., was visited by a fire which wiped out the whole business part. The fire started in a bakery, presumably from an overheated oven. Richard Sandow, three years old, living at Landisville, N. J., was accidentaily shot and instantly killed at his home. Sandow's brother picked up a shotgun to examine it and it was accidentally discharged. The boy stood looking at it and the full charge entered his breast. Harman Calaman shot and killed David Pearl and seriously wounded John Beidelman at Pond Bank, Penn. Pearl and Beidelman were drunk and had raised a disturbance at a neighboring church. The sixteen-year-old son of John Swan, a carpenter, of Belleville, N. J., who sought in vain to get work, died of starvation. Mustapha Bey, the new Turkish Minister to the United States, arrived at New York. W. T. Rambusch, banker and real estate dealer, disappeared from Juneau, Wis., defaulting to the extent of $250,000. At Suffolk. Va, Merritt Briggs, one of Eastern Virginia's leading criminal lawyers, died while pleading do case in the Circuit Court room. Owing to the fact that the drought damaged to a considerable extent the wheat crop of Mexico, and that the Mexican Government has removed the duty on grain for a period of several months, Kansas grain is now on the move into Mexico. The Bank of Commerce, Buffalo, N. Y., closed its doors. Colonel Spillman, aclub man. of Connectieut, was garroted and robbed by women in front of the Union League Club of Chicago. While the United States battleship Indiana was on her way from Hampton Roads to the Port of New York all of her eight-inch turrets broke from their gearing at once, seriously menacing the safety of the ship. The sum of $800,000 in gold coin was withdrawn from the Sub-Treasury, New York City. and deposited in the Chase National Bank. The Second National Bank, the oldes financial institution of Rockford, III., has gone into voluntary liquidation. The result is due to a steady shrinkage of deposits since July 1. Two freight trains on the Northeastern Road came into collision fifty-three miles from New Orleans, La. Both engines were wrecked and the cars were burned. The killed were Engineer Fulcher and Fireman Alexander (colored), of the north-bound train. Thomas E. Watson mailed from Thomson, Ga., his letter of acceptance of the Populist nomination for Vice-President to Senator Marion Butler at Chicago. The Merchants' Bank, Atlanta, Ga., has closed. The bank is a State institution, with B. paid-up capital of $200,000; surplus, $25,000: deposits, $555,000; loans and discounts, $430,000. Mrs. Janet Finley Weir Little, of Huntington, N. J., has surprised that community by marrying her farm hand, named Drake. Temporary receivers were appointed by the United States Court at Wilmington, Del., for the Bay State Gas Company, of which J. Edward Addicks is President, and former Senator Higgins, as counsel for Willlam Buchanan, the complainant, forcibly opened the office desk. There was great excitment in the wheat pit. New York City. and prices advanced two cents, touching 81% cents a bushel. Adolphus Coles, the banker who disappeared from New York in 1894, leaving depositors to whom he owed half a million dollars, has been arrested in Philadelphia. Foreign Notes. Li Hung Chang has arrived at Pekin, China, and will shortly present his report to the Emperor. The Ecuador Government has submitted to the Convention a scheme for a return to the gold standard. A despatch from Paris announces that the wedding of the Marquis des Monstiers-

16. November 21, 1896 The Morning News Savannah, GA
Article from The Morning News, November 21, 1896

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A BANK SEEKS A COMPROMISE. DEPOSITORS OFFERED NOTES IN PAYMENT. Stockholders and Directors Come Forward With 885,000 to Make the Proposition Possible-Rumors That Certain Depositors Were on the Point of Beginning Proceedings on the Criminal Side of the Court. Atlanta, Ga., Nov. 20.-The receivers of the 'Merchants' Bank this afternoon announced a proposition for the payment of the depositors. Since the failure of the bank, a month ago, the receivers have been hard at work on the assets. They found that there was not enough available to meet all of the depositors at once. but in order to insure the final payment of all, dollar for dollar, an arrangement was made with certain stockholders and directors of the bank by which the latter agreed to put up additional money and give indorsements amounting to approximately $100,000 for the purpose of effecting a settlement. Under the proposition made by the receivers to the depositors, the latter are to receive their money in installments, receivers' certificates to be issued for the deferred payments, and these certificates to bear 4 per cent. interest from the date of the failure of the bank. The proposition is to pay the depositors 20 per cent. in December next, 20 per cent. May 1, 1897, 10 per cent. Aug. 1, 1897, 10 per cent. Nov. 1, 1897, 20 per cent. Feb. 1, 1898, and 20 per cent. May 1, 1898. Those who put in the additional money and made possible this proposition are President Porter, who comes forward with $35,000; Vice President Wiley, $10,000; T. L. Langston, $10,000; George Winship, $10,000; A. D. Adair, $10,000, and J. C. Veach, $10,000. The proposition will have to be accepted by all the depositors before it goes into effect. The receivers believe that it will be accepted. The only condition attached to it is that all suits brought by the creditors be withdrawn. Under this head it is said that some sensational developments were about to be made when the offer for settlement came to-day. It is said that criminal prosecution was about to be instituted against the officers of the bank by certain depositors. It is known that preliminary steps in this direction were taken and it may be that this had an important bearing on the putting up of the extra assets by which the bank was enabled to make the proposition for a settlement.

17. November 28, 1896 The Morning News Savannah, GA
Article from The Morning News, November 28, 1896

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DAILY, $10 A YEAR 5 CENTS A COPY. WEEKLY 2-TIMES-A-WEEK $1 A YEAR SETTLEMENT STRIKES A SNAG. MERCHANTS BANK OF ATLANTA MAY HAVE TO LIQUIDATE. / The Capital City Bank Refuses td Walt Eighteen Months for Part of the $5,000 Owed It by the Merch ants Bank-The Capital City Feels Secured by Its Attachment on the New York Funds of the Defunct Bank. Atlanta, Ga., Nov. 27.-The proposition made by the defunct Merchants Bank ta settle with depositors on the instalment plan has struck a snag. The bank proposed to begin the payment of depositors about the middle of next month, and there+ after to continue the installments until the full amounts were paid, with interest from the date of the failure of the bank. After eighteen months the depositors would receive their full share of the assets. In order to make it possible to offer this proposition to the creditors, President Porter and other officers of the bank agreed to put up $70,000 or $80,000 in additional assets. The reason that so long a time was asked by the bank in which to make the payments was that much of the assets of the defunct bank are in real estate and real estate securities, and It takes a good deal of time to realize upon this class of collaterals. It was expected that the creditors would accept this proposition. The rumors afloat since the failure of the bank have not been reassuring to the depositors and when the proposition came under which they were offered dollar for dollar If they would only wait a little while for it the impression was that the offer would meet with general and prompt acceptance. Some of the creditors have agreed to the proposition, but others have failed to do so. To-day the Capital City Bank, to which the Merchants Bank owed $5,000 when it failed, announced that it would not accept the compromise, The directors of the bank had considered the an on some 000 matter City of Bank Merchants fully, has and Bank attachment inasmuch funds as in the New Capital York, $14,* it was determined not to agree to the installment plan, but to fight the matter out in the courts. The bank made it a condition precedent to the compromise plan that all suits should be withdrawn by the creditors. As the action of the Capital City bank precludes this, it is now doubtful If the plan is accepted, although the receivers of the bank and the officials announced to-day that they were still working upon the matter and hoped yet to succeed.

18. November 29, 1896 The Morning News Savannah, GA
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ATLANTA'S DEFUNCT BANK. A Revised Offer of Settlement Made by the Receivers. Atlanta, Ga., Nov. 28.-The receivers of the defunct Merchants Bank to-day issued a circular to the creditors proposing a settlement of all outstanding claims except those in litigation. Under this proposition depositors are to receive 20 per cent. in cash Dec. 15 and the receivers' certificates for the balance, these certificates bearing interest from the date of the failure of the bank and maturing at stated intervals, the last of which is May, 1898. In connection with this proposition, the officers announced that the additional assets recently put up by the officers of the bank in order to make possible the full payment of all creditors are withdrawn, so far as they affect those creditors who refuse to withdraw suits against the bank. When the officers made the proposition to supplement the assets to the extent of $85,000 last week, they expected that all the creditors would accept the compromise. But some creditors, who had already begun action, refused to do this, and now the officials have amended their proposition SO as to deprive all who bring suits of any participation in the additional assets. Prior to the first offer of settlement certain creditors had already taken steps to institute criminal proceedings against the officers of the bank, and to-day's circular may revive these actions. If this is done, according to reports, there will be some sensational disclosures showing up things in connection with the bank that have heretofore been known only as street rumors,

19. January 27, 1897 The Morning News Savannah, GA
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IN GEORGIA AND FLORIDA. NEWS OF THE TWO STATES TOLD IN PARAGRAPHS. GEORGIA. A deal is now on foot which, if it proves successful, will take the Barnesville knitting mills to Atlanta. A colored woman of Atlanta named Lillie Williams has lost her mind through the excessive use of snuff, which she chewed. Dublin correspondence Morning News: Dublin continues to grow. New dwellings are being built on every hand. L. C. Beacham is having a two-story building built in West End. The Pritchett Grocery Company is having the lumber put on the ground for the construction of a building for their bookkeeper. M. E. Land of Abbeville has been appointed temporary receiver of the business of H. L. Manne & Co., who sold and transferred their large stock of dry goods and groceries to preferred creditors on Jan. 20. Judge Littlejohn granted an injunction and appointed the receiver in response to a plea by unsatisfied creditors. At Carrollton Sunday afternoon the prisoners confined in the county jail made a desperate effort to escape, two of them succeeding in getting about a mile from the town before being recaptured. There was no one about the jail at the time of the attempt and the prisoners had several minutes the start. They were run down by dogs. The Security Mutual Life Insurance Company of Atlanta is going out of business. The reasons given for the retirement of the company are that more money is necessary for the company to transact a large business, and that the time required for a southern company to build up a business equaling the established old line companies is too long for the promoters to wait. The body of a white man was found Monday near the railroad track at Melrose. The clothing was badly torn and one shoe was found ten or twelve feet from the body. It is believed that he was killed by the north-bound passenger train Sunday night. The dead man was a turpentine hand and came to Georgia a short time since in company with another white man. His name has not been learned. John Faulk, with several other names, according to the charges preferred by Ginn & Co., of Atlanta, on whose complaint he was arrested, is behind the bars in Floyd county jail, charged with cheating and swindling. He reached Rome about the first of the month and secured a school and began teaching in the country. He represented the book firm of Ginn & Co., it is claimed, and he was arrested by order of Manager Robertson of the firm. Mrs. Sessions, wife of Judge W. M. Sessions, died at Marietta Friday morning. The Southern Age wants the negroes of Atlanta to organize a cotton factory company, with $25,000 of stock. The enterprise is intended to be an ocular demonstration of the fact that negro labor is competent to do the work in cotton mills. It has been contended that negroes are not fit for this business, even after training, and the negroes propose to show that this is not true. For twenty-five years George Huntsingle of Lumpkin county has served in the capacity of inspector for the Yahoola Hydraulic Company. His duty has been to daily inspect the supply pipe from the Yahoola river to the gold fields, a distance of twenty-five miles. For twenty-five years, in all sorts and conditions of weather, Huntsinger has walked the length of this pipe one day and back again the next. When he recently gave up the job on account of failing health he calculated that he had covered -a distance of 35,550 miles on foot. Shortly after a Sam Jones' meeting at Columbus last fall it was announced that a prohibition election would be called in Muscogee county, and a petition, asking that the election be ordered, was circulated and received several hundred signatures. It was the original intention to hold the election at the first of this year, but it now appears that it will not be called in several months yet, hardly before next fall. This postponement is due to the uncertainty and confusion existing regarding the meaning and provisions of the present registration law. Lawrenceville News: On Jan. 14, 1880, the firm of Brown Bros., at Gainesville, in rectifying an error, sent W. L. Vaughan, of Lawrenceville, a check for $10 on the Merchants' Bank of Atlanta. Mr. Vaughan received the check and carelessly laid it aside, when it got mixed with a lot of old papers. Last Sunday Mr. Vaughan was looking through these old papers when he came across the check, which had never been cashed. He had, of course, neglected to send it in for collection. The Merchants' Bank of Atlanta suspended a few months ago, so Mr. Vaughan will probably lose his money.

20. January 14, 1898 The Morning News Savannah, GA
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BANK BUILDING SOLD. It Brings $21,380 While the Receivers Expected to Get $30,000. Atlanta, Ga., Jan. 13.-The building of the defunct Merchants' Bank on Alabama street, between Whitehall and Pryor, was sold at auction this morning, and was purchased by L. F. Blalock of Jonesboro, for $21,380.50. The price paid was $710 per front foot on Alabama street, the building having a frontage of 30 feet and 6 inches, It was an old two-story structure with a new marble front. The receivers of the bank regarded the price so poor that they decliend to sell other property of the defunct bank which had been advertised. They thought the bank was worth $1,000 a foot.

21. January 20, 1898 The Morning News Savannah, GA
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SALE OF BANK BUILDING STANDS. It Brought Only $21,000 When at Least $30,000 Was Expected. Atlanta, Ga., Jan. 19.-Judge J. H. Lumpkin to-day confirmed the recent sale of the Merchants' Bank building on Alabama street, despite the efforts to prevent it, because of the low price bid. The building is in the heart of the business district on Alabama street, It brought only $21,000, while the receiver thought it should fetch $30,000 at the lowest.

22. February 2, 1898 The Morning News Savannah, GA
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PAYING OFF THE DEPOSITORS. Creditors of an Atlanta Bank Get Another Installment. Atlanta, Ga., Feb. 1.-Creditors of the defunct Merchants' Bank were to-day paid 20 per cent. of their claims. The amount paid out by the receivers approximates $75.000, which includes 4 per cent. interest since the date on which. the bank's doors were closed, Oct. 15, 1896. Since they have had charge of the institution's finances the receivers have paid off, including to-day's payment, 80 per cent. of the entire indebtedness. The depositors have received about $280,000, and after to-day's payment ceases there will be only about $75,000 still due them.

23. June 2, 1908 Americus Times-Recorder Americus, GA
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# Some Historic Facts and Timely Words of Caution Given by Robert E. Park, State Treasurer. ATLANTA, GA., May 28, 1908. To the People of Georgia: Certain Georgia bankers have recently stated that my opponent has made promises in the event of his election to "distribute the State's money among the smaller depositories throughout the State," and I note that almost this exact language is used in his recent card of errors. These bankers expressed the opinion that this was intended as a tempting bait or bribe to them to withdraw their allegiance from myself. If Mr. Speer was connected with the State Treasury as Clerk and Assistant Bank Examiner so many years, as he claims, and was posted about the duties, he ought to know that tax-collectors and others who deposit taxes are required by the depository law to place the money of certain counties assigned to them in the banks selected for that purpose by the Governor, who alone has the right to designate such banks. To do otherwise, he should know, would violate the law. I am a stickler for obeying the law (perhaps I am old-fashioned in this respect), but I believe in a strict observance of the Code of Georgia and of the Acts of the Legislature relating to the State Treasury and State Banking Departments. Pardon a recital of some historic facts connected with State Treasurers of several Southern States who have held office during the past thirty years, and who, by violating the letter and the spirit of the law, have caused financial loss to their States, and have suffered personal and official disgrace: A treasurer of Kentucky was a defaulter to his State; a treasurer of Tennessee was punished for abstracting the State, funds; a treasurer of Alabama was convicted of making way with more than $3,000.00 of that State's funds; a treasurer of Mississippi spent four years in the penitentiary for similar conduct; a treasurer of Louisiana is now a refugee from justice in South America; a treasurer of Arkansas was convicted of misappropriation of the State's funds. this is a mortifying exhibit. Let us hope that Georgia will never entrust the management of her finances to any but men of high ideals, who are of iron integrity, and of stainless reputation in social and political life. With such men all shame in the history of our State will be avoided. My opponent brazenly stated that no depositor during his long connection with the State Treasury ever lost a dollar. This can not be a truthful statement in view of the fact that W. C. Hale, President of the State Savings Bank and Union Trust Company of Atlanta, failed utterly to meet the obligations to depositors and creditors of those two institutions, and incontinently fled the State and is now a refugee from justice. This event occurred during Mr. Speer's connection with the Treasury Department. His poor memory has also made him forget the Home Bank and the Merchants Bank of Atlanta, and I might also mention others, notably, the failure in Athens which caused the disappearance of its most trusted officer. I have painful memories myself of my inheritance from Mr. Speer of certain banks which I might mention, the condition of which, to quote his classic language, was "rotten." He has the effrontery to charge my administration with having permitted the Neal Bank to fail. Yet, in the opinion of Attorney-General Hart, and by the decision of Judge Ellis, as well as the freely-expressed views of many of our most intelligent bankers, and of numerous fair-minded people throughout the State, the official acts of myself and assistant in connection with this bank have been approved, and we have been fully absolved from any blame in this affair, now being revamped and rehashed for purely personal and political reasons by this desperate candidate. The high-minded and noble bankers and other citizens of Georgia will resent the suggestions and statements made by W. J. Speer. I repeat, that no treasurer has a right under the law to "distribute the State's money among the smaller depositories throughout the State." At one time, in 1906, there was only $3,500.00 of the State's money in all the depositories, very little to "distribute." I shall continue to be fair to all banks and persons of Georgia. The Governor designates the depositories and the law does not permit the Treasurer to discontinue them or to move deposits from one bank to another except, possibly, under order of the governor. The State of Georgia and its officers can not be directors of the conduct of the financial operations of the 465 State banks. The law directs, and it has been my pleasure to warn, to caution, to guide and to save banks and bankers that are in trouble. Only two chartered banks in Georgia have suspended during the present year, and those two, I am happy to say, have been restored to their former position as active banks. So I am still able to repeat what I stated in my annual report, that only five banks have failed during the past eight years. No other State in the Union can show a better record. I respectfully ask consideration of the above historic facts and these words of well-meant caution, believing that a generous patriotic and thoughtful people, realizing the important trust and responsibilities of the office of State Treasurer, are amply satisfied with my record, and the security of the State's funds while committed to my care.