Click image to open full size in new tab
Article Text
and just before this bank failed these defendants, claiming, as they do now, and as they have always done, that they held this stock for the benefit of the bank, transferred the same from themselves back into the bank. There was no money passed or received by either of them, but they gave themselves each credit for $1,900 upon the book of the bank and signed a transfer for the stock to the bank. It was merely an entry of bookkeeping and no money was passed at all. When the affairs of the Merchants and Traders Bank were before the court in the receivership matter, in which your honor has passed a good many orders, there was a petition filed by R. Y. Lane, the father of Mr. A. H. Lane, the defendant in this case, and this transaction was dealt with in that petition, which I will read to your honor. 'Petition of R. Y. Lane, of Lowndes county, Georgia, respectfully shows into the court: First, that he is the father of A. H. Lane, formerly of Glynn county, Georgia. Second, that upon the organization of said Merchants and Traders Bank of Brunswick, one of the defendants in the above stated case, the said A. H. Lane, was elected and entered upon the duties of cashier of the said bank, which position he held until the year 1894, when he was elected vice president thereof; that during all the time said A. H. Lane was vice president, and until the first day of November, 1897, at which time he had formally tendered his resignation as such vice president, to take effect, he had active charge of the management and conduct of the affairs of the said bank; that after Nov. 1, 1897. said A. H. Lane did not have charge of the affairs and business of said bank.'
### The Father's Prompt Action.
"The petition goes on and sets out the presenting of the petition for the receiver of the Merchants and Traders Bank, and the granting of the restraining order and the appointment of a permanent receiver, and subsequent to the appointment of a receiver that the petitioner heard rumors that the Merchants and Traders Bank was rendered insolvent largely by reason of the injurious management of its affairs by the said A. H. Lane during the time he was connected therewith as one of its active managers, and that petitioner immediately upon hearing said rumors, proceeded to have a thorough investigation thereof made. and to that end employed counsel, for the purpose, so far as was possible for him to do, to correct and rectify and make good to the stockholders and creditors of said bank any loss caused and sustained by reason of the injudicious management of its affairs by the said A. H. Lane, or of his participation therein, petitioner being especially desirous that neither the stockholders of said bank or any of its creditors should sustain any loss by reason of the alleged injudicious management of its affairs by his said son, or on account of his connection therewith; that ptitioner's counsel began conferring and corresponding with Messrs. Goodyear and Kay, attorneys for the stockholders and directors, and many of the creditors of said bank, for the purpose of ascertaining what worthless notes or other items of doubtful solvency among the assets of said bank became such assets by reason of the alleged injudicious management of petitioner's said son, or his participation in such management of its affairs by his said son or on account of his connection therewith, that after repeated conferences and a thorough investigation of the affairs of said Merchants and Traders Bank with said attorneys for said stockholders, directors and creditors, made in the presence of James S. Wright, receiver of said bank, your petitioner finally agreed with said stockholders, directors and creditors, through their attorneys, that the items hereinafter mentioned among the assets of said bank, were regarded as of doubtful solvency, and it was agreed that these were all of the items among the assets of said bank for which petitioner's said son was in any way responsible by his alleged injudicious management of its affairs or participation therein."
### The Stock Transaction.
Then follows a detailed statement of the items that are to be paid by Mr. Lane. And then the petition goes on as follows: "Petitioner shows that among the items above enumerated is an item of $1,900 for nineteen shares of the stock of said Merchants and Traders Bank, which is one half of a block of thirty-eight shares of said stock, which until some time prior to the faliure of said Merchants and Traders Bank was carried in the name of Medden and Lane, and which before the failure of said bank, was transferred by Madden and Lane to the sald Merchants and Traders Bank, and for which the said J. M. Madden, and the said A. H. Lane, were each credited with $1,900 upon the books of said bank. that being the par value of said stock. This item it was and is contended by petitioner's said son was carried by the said Madden and Lane for and in behalf of the said Merchants and Traders Bank from the time of its organization, these shares not having been subscribed, for by any person whomsoever, petitioner's said son claiming that the said Madden and Lane agreed to carry these thirty-eight shares for the bank in order that it might appear that all of its capital stock had been subscribed for, and that the said A. H. Lane in good faith, accepted the $1,900, being one-half of the par value of said thirty-eight shares of said stock, believing at the same time that he was carrying said stock for the bank, and that it was nothing more than right and just to him that the said bank should refund to him said $1,900 for said stock and there was no intention whatever upon his part to occupy the relation of a selier of the bank's stock to the bank itself, and up to the present time said A. H. Lane still contends that the foregoing was the only relation that he occupied in the transfer of
