2719. Mercantile Banking Company (Atlanta, GA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 28, 1889
Location
Atlanta, Georgia (33.749, -84.388)

Metadata

Model
gpt-5-mini
Short Digest
49e45b6c

Response Measures

None

Description

Superior Court appointed a receiver (permanent receiver C. S. Northern) after discovery that cash assets were essentially nil (60 cents) and officers apparently misappropriated funds; president and cashier jailed. No article describes a depositor run prior to suspension; bank placed in receivership and effectively closed.

Events (2)
1. January 28, 1889 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Apparent theft/misappropriation by officers (collections of about $15,000 missing); articles state theft 'too patent' and officers jailed; insolvency discovered leading to receivership.
Newspaper Excerpt
On Saturday the Mercantile Banking company was in the hands of a receiver...the cash assets so far as could be found were sixty cents
Source
newspapers
2. January 30, 1889 Receivership
Newspaper Excerpt
The Superior Court to-day made C. S. Northern permanent receiver of the Mercantile Banking Company...liabilities ... $36,000; assets so far are only sixty cents. Tolleson and Richards are still in jail and refuse to say anything as to the assets of the company.
Source
newspapers

Newspaper Articles (10)
1. January 29, 1889 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, January 29, 1889

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Article Text

Bank Officials Sent to Jail. ATLANTA, Ga., Jan. 28.-Saturday the Mercantile Banking company was in the hands of a receiver, and to day the receiver made a report stating that cash assets so far as could be found were sixty cents, while he is reliably informed that the company had made collections of about $15,000 within the past few years. Upon this showing Judge Clark sent President Tollron and Cashier Richards CO jail. The theft was too patent to pass by. The company has been advertising extensively that it could make collections for practically nothing, and in this way has caught banks in different parts of the country.

2. January 29, 1889 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, January 29, 1889

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AFTERNOON SESSION. Justice Ophir 8 2@2 05 Mexican 3 40 Julia 35c G. & C 2 70@2 75 Caledonia 40c B. & R S. Hill 51%@65 80c Con. Va Occidental 81/20/85 1 65@1 70 sevage 3@2 95 4 40 Challenge Chollar 3 25 Andes 1 10 Potosi 2 35 Scorpion 45@50c H. & N 4.85 New York 40c 51 Point W. Comstock 50c Jacket 43) Prize 1 15@1 20 75c B. Isle Imperial 40@45c 1 95 Mt. Diablo 2 25 Alpha Belcher 4 55 N. B. Isle 2 45 Confidence Com' wealth 12½ 51/2 S. Nev 3 N. 'wealth 1 65 Kentuck 2 10 Delmonte 1 80@1 90 Utah 1 20 Bodie 1 55@1 60 Bullion 1 25 Peer 40c 2 85 Crocker 1@1 05 Seg. Belcher Overman 1 30@1 25 Peerless 1 25@1 30 -IXTY CENTS. The Sum Found in the Coffers of a Bursted Bank. ATLANTA (Ga.), January 28th.-On Saturday the Mercantile Banking Company was put into the hands of a Receiver, and to-day the Receiver made his report, stating that the cash assets, so far as could be found, were sixty cents, while he was reliably informed that the company had made collections of about $15,000 within the past few days. Upon this showing Judge Clarke sent Preside nt Tolleson and Cashier Richards to jail, saying that the theft was too patent to pass by. The company have been advertising extensively that it would make collections for practically nothing, and in this way has caught the banks in different parts of the country.

3. January 29, 1889 Evening Star Washington, DC
Article from Evening Star, January 29, 1889

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Article Text

President and Cashier in Jail. OFFICERS OF AN ATLANTA BANK GET AWAY WITH $15,000 IN A COUPLE OF DAYS. J. R. Tolleson, president, and Jas. Richards, cashier of the Mercantile banking company, of Atlanta, Ga., were sent to jail Monday by Judge Clarke for contempt at court. On Saturday the company was put in the hands of a receiver, and Monday the receiver made a report stating that the cash assets so far as could be found were sixty cents, while he was reliably informed that the company had made collections to about $15,000 within the past few days. Upon this showing the judge sent the president and cashier to jail, saying that the theft was too patent to pass by. This concern has been advertising extensively that it would make collections for practically nothing, and in this way has caught banks in different parts of the country. The downfall of the bank was brought about by a newspaper expose of its methods.

4. January 31, 1889 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, January 31, 1889

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Article Text

Broken loncern. (By telegraph to the Dispatch.] ATLANTA, GA., January 30. - The Superior Court to-day made C. S. Northern permanent receiver of the Mercantile Banking Company, the concern of which J. R. Tolleson is president. The receiver also takes charge of the Atlanta Mercantile Company and the private property of J. R. Tolleson, president; J. M. Richards, cashier, and E. L. Fowler, ex-president. The liabilities as per books in the receiver's hands figure up $36,000. and it 18 be. lieved will be much greater. The assets so far are only sixty cents. The private property of the officers that can be got hold of will not increase this materially. Tolleson and Richards are still in jail and refuse to say anything as to to the assets of the company.

5. January 31, 1889 The Morning News Savannah, GA
Article from The Morning News, January 31, 1889

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GEORGIA'S CAPITAL CITY. The Woolfolk Case-The Bankers-No Bail for Echols. ATLANTA, GA., Jan. 30.-The Woolfolk case was reached in the supreme court this morning. Owing to the importance of the case, the record of which covers over 700 pages, the time limit for argument was extended to seven bours for each side, and the hearing will hardly be concluded before Friday. Capt. Rutherford, the counsel for Woolfolk, occupied to-day in his argument and was still speaking when court adjourned at 4 o'clock. A number of ladies were present during the argument to-day. THE BANKERS. The superior court to-day made C. S. Northern permanent receiver of the Mercantile Banking Company, the concern of which J. R. Tolleson is president. The receiver also takes charge of the Atlanta Mercantile Company and the private property of J. R. Tolleson, the president, J. M. Richards, the cashier, and E. L. Fowler, vice president. The liabilities, as per the books in the receiver's hands, figure up $36,000. and it is believed will be much greater. The assets so far are only 60 cents. The private property of the officers that can be got hold of will not increase this sum materially. Tolleson and Richards are still in jail and refuse to say anything as to the assets of the concern and feel confident of their discharge for contempt of court. They will doubtless be confined until they reveal something. Tolleson and Richards were in court during the hearing and both looked depressed. especially when led off again to jail. The judge overruled a motion for the discharge of Richards. ECHOLS REFUSED BAIL. Judge Harris of the Coweta circuit heard a motion for bail for Echols in the State li rary to-day. The defendant's counsel made a strong showing, which the state fought. Bail was refused. The money from the sale of ex-Tax Collector Wilson's property and state fi. fas., whi h has been held in the sheriff's hands by the county commissioners, was to-day by order of the court, paid to the comptroller general. The amount was $6,500. The governor has designated the bank of Thomasville as a state depository. Blanche Wilson, a good looking member of the demi monde at Mme. Burton's bagnio, made a probably successful attempt at suicide to-night with 25 cents worth of morphine. The doctors are working with her at midnight, but with little hope of bringing her out.

6. February 8, 1889 Iowa County Democrat Mineral Point, WI
Article from Iowa County Democrat, February 8, 1889

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a large portion of the diamonds were recovered. IT is dangerous to pace the floor at nightin Arkaneas. Hon. John M. Clayton, while engaged in that pursuit was shot at through the window, the buckshot taking effect in the neck and kill ing him instantly. $5,000 reward bas been offered for the capture of the murderer. THUR-DAY night, at Mt. Horeb, Wis, G. G. Mandt, editor of the Sun, a prohibition paper, was summoned to bis kitchen door by loud rapping, and upon opening it was shot and mortally wounded by some person unknown. AT Atlanta, Ga., a receiver has taken charge of the Mercantile Banking comDANY and of the Atlanta Mercantile company, both concerns being operated by the same persons. There are only 60 cents assets, with about $36,000 liabilities. J. R. Tolleson, president, and J. M. Richards, cashier, are in prison.

7. February 8, 1889 The Weekly Union Times Union, SC
Article from The Weekly Union Times, February 8, 1889

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BANKING ON SIXTY CERTS,-Atlanta, February 4.-C. R. Northern. receiver of the Mercantile Banking Company, furnishes tonight a complete list of the liabilities heard from. amounting to $31,964. Payments was stopped on a few drafts that fell into the receiver's hands. Absolutely the only assets are the sixty conts found in the drawer on the first day of the receivership. Tolleson, president, and Richards, cashier, are still in jail.

8. February 8, 1889 The Weekly Union Times Union, SC
Article from The Weekly Union Times, February 8, 1889

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BANKING ON SIXTY CERTS,-Atlanta, February 4.-C. R. Northern, receiver of the Mercantile Banking Company, furnishes tonight a complete list of the liabilities heard from, amounting to $81,964. Payments was stopped on a few drafts that fell into the receiver's hands. Absolutely the only assets are the sixty conts found in the drawer on the first day of the receivership. Tolleson, president, and Richards, cashier, are still in jail.

9. February 9, 1889 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, February 9, 1889

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Mrs. Lucy Ferguson, aged 75, was convicted of murder in the first degree at Olathe, Kan. A motion for a new trial was overruled and the death penalty pronounced upon her. John Wanamaker's Sales averaged $100,000 a day over the holidays, and his advertising cost him $5000 a week. He says: "continuous advertising, like continuous work, is the most effective." First-class, full, and complete stores for every branch of trade, and judicious advertising, would keep thousands of dollars at home in every town. The Receiver found the cash as. sets of the Mercantile Banking Company, Atlanta, to be sixty cents, though $15,000 had been collected within a few days, and the President and Secretary of the concern were committed to prison.

10. June 23, 1889 The Morning News Savannah, GA
Article from The Morning News, June 23, 1889

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CAPITAL OF THE STATE. TOLLESON STILL A PRISONER IN THE JAIL. Judge Clarke's Sticking Qualities in the Matter of a Family InheritanceA Boy Turns Against His FatherThe Argument Not Completed Yet in the Whitlock Murder Trial. ATLANTA, GA., June 22.-It is beginning to look as though the confinement of Banker J. R. Tolleson in Fulton jail will be perpetual. He was sent to jail because he refused to show up the assets of the Mercantile Banking Company, and it has been a case of "stay there" without variation ever since. He tried to get out on a habeas corpus writ and he then got desperately ill, but in each instance came the inexorable command from Judge Clarke to "stay there." HIS OFFER TO COMPROMISE. Some time since Tolleson made an offer to settle with the creditors of the Mercantile Banking Company on certain conditions. The creditors declined the proposition, but it had the effect, however, to impress Judge Clarke with the belief that Tolleson has money, and that is one reason why all efforts to secure the release of the imprisoned banker have failed. The truth of the matter is that Tolleson is still doing some financiering. He knows if he were to give up his money to be released from jail he wouldn't get to the gate before he would be recommitted on a dozen warrants, and it would still be a case of "stay there," with no cash to console him. RUNS IN THE FAMILY. The staying qualities of Judge Marshall J. Clarke in this case seem to run in the family. A case parallel to that of Tolleson came up before a brother of Judge Clarke, Judge John T. Clarke, in 1864. Jacob L. Cobb, in Randolph county, refused to turn over certain assets to a receiver, and was sent to jail, where he remained a year and a half. He only got out then by being drafted into the confederate army. In the Tolleson case, however, even that possibility is not possible. A BAD BOY. Call Officer George Hamilton of the Atlanta police force was called upon this morning to perform a sad duty. John I. Stocks, an old gentleman living at No. 20 Ivey street, sent for the policeman to carry his son, Edward Stocks, to the lock up. The boy had become unmanageable and this morning, while trying to whip him, he attacked his father and tried to kill him. The father interviewed his son shortly after was never he leave the locked city and up, and told return, him if he he would would have him released. The boy promised to leave immediately and was turned out. THE MURDER TRIAL. The argument has not been completed in the Whitlock murder trial, yet. Two more sp eches are to be delivered, and the court adjourned over this afternoon until Monday. The verdict will not be reached probably till Tuesday. The nogro burglar who defied and shot at two policemen Sunday morning last, while they were trying to arrest him, was. arrested by Patrolman Pelot to-night. The negro made a desperate effort to kill the policeman with a pistol and was badly clubbed.