Mechanics Bank (Memphis, TN)

Episode Information

Episode UID
3869462291272
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
386946229 hash
Start Date
December 27, 1905
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
1c516feb7b63f4e2

Response Measures

None

Description

OCR variants of receiver name (Edmondson/Edmunson) in sources; bank went into liquidation.

Events (2)
1. December 27, 1905 Receivership
Newspaper Excerpt
John P. Edmondson (Edmonson) has been appointed receiver.
Source
newspapers
2. December 27, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closures were prompted by over-loans on discounts at the Merchants' Trust Company and its allied institutions, producing suspension and liquidation.
Newspaper Excerpt
Three banking institutions failed to open their doors for business today...the Mechanics' Savings bank ... have gone into liquidation.
Source
newspapers

Newspaper Articles (13)
1. December 26, 1905 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, December 26, 1905

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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 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, December 27, 1905

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Article Text

MEMPHIS BANKING HOUSES GO UNDER Three Institutions Closed Doors There. LITTLE EXCITEMENT CAUSED Statement Issued Showing Condition as to Assets and Liabilities. Memphis, Tenn., Dec. 27.-The Merchants Trust Company has closed its doors and a receiver has been appointed. The institution has a capital of $200,000. The American Bank and Trust Company, and the Mechanics' Savings Bank <have also suspended business. These are small institutions allied with the Merchants' Trust Company. Cause of Suspension. The cause of the suspension of the Merchants' Trust Company, is said to have been over loans on discounts. The Merchants' Trust Company recently absorbed the Memphis National Bank and it is stated that it owns the controlling stock of the American Savings Bank and Trust Company. The latter institution has practically ings Bank. absorbed the Mechanic ree instituThe suspension of tl itement in tions has caused little financial circles. Statement of the conA condensed staten Trust Comditions of the Mercha ness on Depany at the close of as follows: cember 26, was given Indebtedness Total assets $3,665,055. of every character to depositors $3, 132,319. All other obligations exclusive of capital stock is $889,058, Cash actually on hand $30,000. New York Report. New York, Dec. 27.-The American Savings Bank and Trust Company of according to a recent statement, owed the depositors $625,000. According to a recent statement the Merchants Trust Company of Memphis owes depositors $605,000.

3. December 27, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 27, 1905

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THREE BANKS FAN AT MEMPHIS TODAY The Merchants' Trust Company Closes Its Doors and Receiver Is Appointed OTHERS CARRIED WITH American Savings Bank and Trust Company and the Mechanics' Savings Bank, Institutions Connected I With the Failed Bank, Forced to Suspend -Will Pay Depositors.

4. December 27, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, December 27, 1905

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Article Text

THREE MEMPHIS BANKS CLOSE THEIR DOORS Memphis, Dec. 27.-Three financial institutions failed to open their doors for business today. The Merchants' Trust company, with a capital stock of $200,000, the American Savings Bank & Trust company, and the Mechanics' Savings bank, smaller institutions, and allied with the first-named concern, have gone into liquidation. The cause of the suspensions of the Merchants' Trust company is said to have been overloans on discounts. One of the directors said that the three institutions had ample assets and would pay dollar for dollar. The suspension of the three institutions caused little excitement in financial circles.

5. December 28, 1905 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, December 28, 1905

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THREE BANKS GO TO WALL BIG MEMPHIS INSTITUTIONS PASS INTO LIQUIDATION Memphis, Tenn. Dec. 27. - Three institutions failed to open their doors for business today. The Merchants' Trust company with a capital stock of $200,000. The American Savings Bank & Trust company, and the Mechanics Savings bank, smaller institutions allied with the first named concern, have gone into liquidation. The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors and will go into liquidation. FELIX T. POPE. (Signed) "President." Another notice reads: "This bank has gone into liquidation. John P. Edmunson has been appointed receiver." The cause of the suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions had ample assets, and would pay dollar for dollar. When the officers of the Merchants Trust company decided to suspend business, Chancellor Heiskell was asked to appoint a receiver for the institution and named John F. Edmondson, a Memphis lawyer. The Merchants' Trust company recently absorbed the Memphis National bank, and it is stated, owns the controlling stock of the American Savings Bank and Trust company. The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused little excitement in financial circles.

6. December 28, 1905 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, December 28, 1905

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THREE EMBARRASSED. That Number of Memphis Banking Houses Did Not Open Wednesday. "emphis, Dec. 27-Three financial institutions failed open their docrs if business Wednesday, The Merchants' Trust company. with a capital stock of $200,000. American Savings Bank arl Trust company, and Me. chanies' Savings bank. smaller Institutions and allied with the first named concern. have gone into liquidation The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors and will go Into liquidation. FELIX T. POPE." President. Another notice reads as follows: "This bank has gone into liquidation. John P. Edmondson has been appointed receiver." The cause of the suspension of the Mercnants' Trust company is said to have been over loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions have ample assets and will pay dollar for dollar. When the officers of the Merchants' Trust company decided to suspend business, Chancellor Heiskell was asked to apoint a receiver for the institution. Hon. John P. Edmondson, one of the best known lawyers in Memphis, was named as receiver. The Merchants' Trust company recently absorbed the Memphis National bank. and It is said owns the controlling stock of the American Savings Bank and Trust company. The latter institution practically absorbed the Mechanics' Savings bank. The suspension of these institutions caused little excitement In financial circles.

7. December 28, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 28, 1905

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Article Text

THREE MEMPHIS BANKS GO DOWN Assets Said to Be Ample to Pay the Depositors. RESULT OF SPREADING OUT FAILURE CAUSED LITTLE OR NO EXCITEMENT. EMPHIS, Tenn., Dec. 27.-Three institutions failed to open their M doors for business today. The Merchants' Trust company. with a capital stock of $200,000; the American Savings bank & Trust company, and the Mechanics' Savings bank, smaller institutions allied with the first named concern, have gone- into liquidation. The following notice was posted on the doors of the Merchants' Trust company: "This bank is closed by order of the board of directors, and will go into liquidation. (Signed.) "FELIX T. POPE. "President." Another notice reads: "This bank has gone into liquidation. John P. Edmonson has been appointed receiver.' Assets Are Ample. The cause of the suspension of the Merchants' Trust company is said to have been over-loans on discounts. One of the directors said to a representative of the Associated Press that the three institutions had ample assets and would pay dollar for dollar. When the officers of the Merchants' Trust company decided to suspend business, Chancellor Heiskell was asked to appoint a receiver for the institution, and named John P. Edmonson, a Memphis lawyer. The Merchants' Trust company recently absorbed the Memphis National bank, and, it is stated, owns the controlling stock of the American Savings Bank & Trust company: The latter institution has practically absorbed the Mechanics' Savings bank. The suspension of the three institutions caused little excitement in financial circles. A Run Was Feared. It was later learned that the American Savings Bank & Trust company had actually absorbed the Mechanics' Savings bank several days ago. It was stated today that the suspension of this institution is only temporary and that its affairs are in good shape. Officers say that the suspension was decided upon because they feared a run when the doors were opened this morning, the public generally being aware of the bank's relation to the Merchants' Trust company. At the latter institution it was announced that a thorough reorganizatio would be made, and hope was expressed that the company would again open its doors for business in a short time. A condensed statement of the condition of the Merchants' Trust company at the close of business Dec. 26 was given out, as follows: Total assets, $3,665,055: indebtedness of every character to depositors, $2,132,319; all other obligations exclusive of capital stock, $889,058; cash actually on hand, $30,000. Aided by Clearing House. C. W. Schulte, president of the Memphis Clearing House association, made the following statement in behalf of the association: "Fifteen days ago the Merchants' Trust company applied for help to the Memphis Clearing House association. 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. "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 extraordinarily large sum to pay all the demands. "In the interests of the city and depositors and of the various institutions of the city, which for the last month have anticipated some such movement, it was deemed wisest totallow the concern to close its doors. Other Banks Safe. "Representatives of the large banks of New York, Chicago and St. Louis are in the city with great quantities of money in furtherance of the legitimate business interests of the city. "It is deemed advisable that no undue excitement be indulged in. Old and experienced bankers and members of the Memphis Clearing House association have the situaiton well in hand. No danger is apprehended and the commercial interests of the city are competent to meet any sttuation that is liable to arise." Major G. W. McRae. president of the Memphis Savings bank, said: "I believe the-liquidation to be a result of taking on too much business by the Merchants' Trust company, too much spreading out and too large advances in purchasing other properties."

8. December 28, 1905 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, December 28, 1905

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BANKS FAILED TO OPEN THE DOORS Three Memphis Banks Go Down With a Crash GO INTO LIQUIDATION OVERLOANS AND DISCOUNTS SAID TO BE RESPONSIBLE.INSTITUTIONS CLAIM THEY WILL PAY OUT. Memphis, Tenn., Dec. 27.-Three financial institutions of this city failed to open their doors today. They are the Merchants' Trust company, capital stock two hundred thousand: the American Savings (bank and Trust company and the Mechanics' Savings bank. The two last are smaller institutions allied with the first named institution. John P. Edmondson, a well known attorney. was appointed receiver of the Mechanics' Trust company. Overloans and discounts are said to be the reason for the action of the directors. Felix T. Pope is president of the Merchants' Trust company. which recently absorbed the Memphis National bank and later secured a controlling 'nterest stock of the American Savings bank and Trust company. A director of the institution told al representative of the American Press today that the banks were solvent and would pay dollar for dollar. The arfairs of the American Savings and Trust bank are said to be in excellent shape and its suspension is only temporary. The public, however, knew its relation to the Merchants' Trust company, and its officers say that to avoid 1 run on the institution today they closed its doors. They hope to reorganize and begin business again in and Co., and allaeeinsegteraEshrd two weeks. Off'cers of the Merchants' Trust company say they expect to reorganize. Statements how the assets of all the institution to be a little less than four million dollars, with liabilities considerably under that sum. The deposits in the two institutions are over two millions. The Merchants' Trust company, so the directors say, will pay dollar for dollar. Rumor, however, says only 80 per cent. on the dollar will be paid. The American Savings will undoubtedly pay out in full. The capital of the Merchants' Trust company is $200,000. The American Savings bank's capital, counting the capital of the Merchants' Savings bank is $100,000.

9. January 1, 1906 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 1, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank falls. 26-Barberton, O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (I11.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Ch'cago. Chicago National, Home Savingsand Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.

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

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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.

11. January 6, 1906 Morris Tribune Morris, MN
Article from Morris Tribune, January 6, 1906

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KEEPING TAB ON THE WORLD Concluded from page 7. Porto Rican Freight War. The Peck Steamship company is competing with the New York and Porto Rico company for trade with Porto Rico and already the freight rates have been cut 25 per cent. The island has had an extra good sugar crop, amounting to 200,000 tons. $150,000,000 For American Telephone. The issuance of convertible bonds to the amount of $150,000,000 was authorized by the stockholders of the American Telephone and Telegraph company. Call Money at 90 Per Cent. In anticipation of the payment of dividends by the great industrial combinations on Jan. 1 aggregating $150,4000,000 the banks had been hoarding their reserves to such an extent that the interest rate on call money rose to 00 per cent, after which it fell again to 25 per cent. Secretary Shaw refused to give any government aid in relieving the stringency. Three Memphis Banks Fail. The Merchants' Trust company, the American Savings bank and the Mechanics' Savings bank, three allied institutions of Memphis, Tenn., have been closed following application for a receiver for the trust company. The Alter claimed ample assets to cover all liabilities, and the officers said depositors would not lose, Biggest Farmers' Combination. F. E. Andrews, attorney for the National Farmers' exchange, announces that the amalgamation of the National Farmers' exchange and the American Farmers' union is about perfected. The new organization will be the greatest society of farmers in the United States. The National Farmers' exchange, capitalized for $100,000,000, operates several hundred elevators in Illinois, Iowa, Nebraska, Kansas, Minnesota and the Dakotas. The American Farmers' union has an extensive membership in Texas, New Mexico, Nevada, Indian Territory and Oklahoma. A new name is to be chosen for the combined associations.

12. January 9, 1906 Wausau Pilot Wausau, WI
Article from Wausau Pilot, January 9, 1906

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THREE MEMPHIS BANKS FAIL. Closing of Institutions Causes No Disturbance in City. Memphis, Tenn., experienced the closing of three banks Wednesday without feeling the least disturbance in financial circles. The Merchants' Trust Company, anticipating a heavy run, 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 John P. Edmondson, a lawyer, as receiver. The American Savings Bank and Trust Company, 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, 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 with 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.

13. January 12, 1906 The Springdale News Springdale, AR
Article from The Springdale News, January 12, 1906

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dividends by the great Industrial combinations on Jan. 1 aggregating $150.000,000 the banks had been hoarding their reserves to such an extent that the interest rate on call money rose to 90 per cent. after which it fell again to 25 per cent. Secretary Shaw refused to give any government aid in relieving the stringency. Three Memphis Banks Fail. The Merchants' Trust company, the American Savings bank and the Mechanics' Savings bank. three allied institutions of Memphis, Tenn.. have been closed following application for a receiver for the trust company. The latter claimed ample assets to cover all liabilities, and the officers said depositors would not lose. Biggest Farmers' Combination. F. E. Andrews, attorney for the National Farmers' exchange. announces that the amalgamation of the National Farmers' exchange and the American Farmers' union is about perfected. The new organization will be the greatest society of farmers in the United States The National Farmers' exchange. capi Italized for $100,000,000, operates sev eral hundred elevators in Illinois, Iowa, Nebraska, Kansas, Minnesota and the Dakotas. The American Farmers' 1111 ion has an extensive membership in Texas, New Mexico, Nevada, Indian Territory and Oklahoma. A new name is to be chosen for the combined associations.