Neal Loan & Banking Company (Atlanta, GA)

Article Text

Run on Atlanta Bank

ATLANTA, Ga., Dec. 21.-The Neal Loan and Banking Company, one of the largest financial institutions in Atlanta, is being examined to-night by the Atlanta Clearing House Association and it is probable that it may not reopen on Monday. Probably it either will go into liquidation or be merged with some other bank. The doors were shut to-day owing to a run caused by rumors affecting the bank's solvency.

Article Text

RUN ON NEAL BANK ATLANTA INSTITUTION FINDS ITSELF IN TROUBLE. Clearing House Association Finds That It Is Solvent and Depositors will Be Paid Every Dollar Due Them. Atlanta, Ga., Dec. 21-On account of certain rumors set afloat concerning the solvency of the Neal Bank, of this city there was a small run on the bank today just before the closing hour and in consequence the officers of the bank requested the Clearing House Association to make an Investigation. This was started tonight. It is stated on the authority of a member of the Association that the bank solvent and will pay its depositors dollar for dollar. The bank will either continue In buriness or conscridate with some 0 her Prank in the city. The heark ke atu its regular clasing hour 304 Td paid every check pre sented learing House will finish its invest ion before Monday morning. The Neal Bank has a capital of $100.000 and a surplus of $450,000. The deposits amount to more than $2,000,000. The bank is a State institution, doing a general business as well as having a savings department. E. H. Thornton is president.

Article Text

NEAL BANK HAS A RUN ON ITS CASH ALTHOUGH EVERY CLAIM PRESENTED IS FILLED, THE CONCERN ASKS CLEARING HOUSE TO EXAMINE BOOKS. Atlanta, December 21.-(Special.)Owing to rumors which have been in circulation for a few days as to the standing of the Neal bank and to an unexpected run which was made upon the bank Saturday morning as a result of the rumors, the officers of the bank, after the closing hour, requested the Atlanta Clearing House association to take charge of its books for a thorough and complete examination. This the association consented to do and the investigation is now being made. The result of it will be made known to the public at the earliest possible moment. In this connection it may be stated that the bank did not close its doors, but kept open until the usual Saturday hour of 12 o'clock and even 10 minutes thereafter, paying every check which was presented across the counters. The rumors which caused the run, had, however, so depleted the supply of cash that the officers of the bank thought it best to ask the advice of the Clearing House association, of which it is a member. It is stated by the bank and generally believed that no depositor will lose a cent as the resources of the bank are believed by all to be in fine condition.

Article Text

WON'T HELP INVOLVED BANK

Atlanta Clearing House WIII Let Neal Company Concern Stay Closed. ATLANTA, Dec. 22.-After an investigation lasting all day, the directors of the Atlanta Clearing House have decided not to aid the Nezl Loan Benking Company, which closed yesterday on account of a run, and to-morrow the State bank examiner will take charge of the institution. The Clearing House directors examined all the securities held by the Neal Bank, and as a result were' convinced that the Clearing House should not give aid. The Clearing House committee expresses the hope that ultimately sufficient money may be realized from the assets to pay the depositors. The Neal Bank is a State institution, and was considered one of Atlanta's strongest concerns. The deposits in its savings department alone are more than $1,000,000. The Neal Bank is one of the oldest in the city and its officers have stood high in the business world. The other banks anticipate no trouble to-morrow because of the trouble in which the Neal Bank is involved.

Article Text

WON'T AID ATLANTA BANK

ATLANTA. Ga., Dec. 23.-After an investigation lasting all day, the directors of the Atlanta Clearing House have decided not to aid the Neal Loan and Banking Company. which closed its doors on account of a run, and the State bank examiner will take charge of the institution. The Clearing House directors examined all the securities held by the Neal Bank. and as a result, were convinced that the Clearing House could not aid the bank.

Article Text

BIG GEORGIA BANK SUSPENDS Bad Loans Responsible for Failure of Atlanta Institution With Deposits of Over $2,000,000. Atlanta, Ga., Dec. 23.-The Neal bank, one of the largest state banks in Georgia, was today placed in the hands of the State bank examiner. The deposits amount to $2,067,000, of which $750,000 is in savings accounts. The nominal assets exceed the liabilities by $600,000 but heavy loans on Cuban and Alabama properties have greatly depreciated. It is believed that the depositors will be paid in full.

Article Text

WILL NOT AID BANK

Atlanta Clearing House Objects to Some Neal Securities, Atlanta, Ga., Dec. 22.-After an investigation lasting all day, the directors of the Atlanta clearing house have decided not to aid the Neal Loan and Banking Company, which closed its doors on account of a run, and to-morrow the State bank examiner will take charge of the institution, The Neal bank is a State institution, and was considered one of Atlanta's strongest concerns. The deposits in its savings department alone are more than a million dollars. At present there is a lack of definiteness as to what is responsible for the bank's trouble.

Article Text

RUN ON THE BANK

Officers of An Atlanta Institution Want Investigation. (By the Associated Press.) Atjanta, Ga., Dec. 21.-On account of rumors set afloat concerning the solvency of the Neal Bank. a State institution, there was a small run today just before the closing hour, and in consequence the officers of the bank requested the clearing house association to make an investigation. This was started tonight. It is stated by a member of the association that the bank is solvent, and will pay its depositors dollar for dollar. The bank will either continue in business or consolidate with some other bank. The bank kept open until its regular hour Saturday and paid every check presented. The Neal Bank has a capital of $100,000 and a surplus of $450,000. The deposits amount to more than $2,000,000.

Article Text

Wonder if any member of the At- lanta Journal's "Smile Club" was caught in the Neal Bank suspension?

Article Text

ASK FOR CO-RECEIVER Depositors in Suspended Neal Bank File Petition. ATLANTA, GA., January 18.-A petition was filed in the State Superior

Article Text

TRAINT UPON VERNOR'S PLANS Watson Has Hand Upon Senatorial Question OGES NOT CARRIED OUT less Is Said To Have Sprung Up tween Governor Smith and Some of His Friends Relative To Senatorship. tlanta, January 21.-(Special.)-Politigossip has it that the three restrain5 influences upon Gov. Hoke Smith's natorial aspirants have been Thomas Watson, the Atlanta Journal with imes R. Gray at its head, and Conressman T. W. Hardwick of the Tenth. Notwithstanding which it appears that he governor's desire to get into the race as not abated one whit, and it is accepted among his close political friends that if he can find a way he is going to do it. Mr. Watson's reasons have been gathered from his publications in which he warned the governor that the people of Georgia would not send him to the Senate until he carried out his campaign pledges, some of which remain, as yet, unfulfilled and are awaiting the action of the general assembly this summer. Mr. Gray's reasons in the Journal were quite similar, though more gently put. He simply suggested that the governor would not think of running for the Senate until all the pledges of the Macon platform had been enacted into law. What Congressman Hardwick's reasons are, other than these, has not been made apparent. It is reported in capitol circles that a coolness has sprung up between the governor and Mr. Gray, though, of course, there has been nothing like an open breach, and it is not expected there will be. Just what the first cause of it was has not been made apparent, but it is said it was accentuated by the failure of Mr. Gray to secure the appointment as receiver of the defunct Neal bank, a position which he very much desired. It is well known that the court, presumably at the suggestion which originiated with the governor, appointed the Central Bank and Trust corporation to wind up the Neal bank's affairs. But to get back to the original proposition. A well-known Georgia politician, who stands quite close to the governor, said today: "I am confident that Governor Smith is anxious to make the race for the Senate, and while I know nothing definite, it is my belief, from all that I have heard. that he will do so. You know if a man like Governor Smith wants to do a thing he generally finds a way of doing it to his own satisfaction, and I believe the governor is going to find a way in this instance. There is a question as to whether he would get the support for the Senate of the Journal and of Mr. Watson, but there is also some question as to whether he needs it. From the way things are looking now I would not be surprised to see the Georgian become the mouthpiece of the administration at no distant date. You cannot tell.'

Article Text

denunciation, which may easily do much harm and no good." 1 Optimistic Over Future. "While it is true the insurance business has suffered to a great extent from the financial depression, conditions are gradually improving and indications point to a full recovery in a very short while," said F. M. Butts of Atlanta, manager of the Cotton Insurance association, and one of the most cheerful optimists in the entire south, just after his arrival in Bir( mingham last night. "Of course, I am not in a position to make any kind of predictions on the future of the cotton market, but it is my personal belief that the farmers of the south will see their hopes realized and receive a fair price for their product this year. Cotton insurance was dead for a while and there was much complaint among the insurance people about the falling off of premiums, but this condition is rapidly becoming a thing of the past." Mr. Butts spoke encouragingly of the situation in Atlanta, saying: "Atlanta is getting along well under prohibition. Every one can get his bottle if he cares to send off for it, but the blind tiger is a very scarce animal in the Gate City. The places formerly occupied by saloons are being rapidly filled by other business houses, and there is no apparent dull business on account of prohibition. "I suppose Birmingham would naturally feel the depression more than Atlanta anyway, though I don't see how anything could affect this town for long at a time. The failure of the Neal bank in Atlanta was, of course, unfortunate, but it is surprising to note how little effect it had in scaring people, Business generally is very good and no one remembers the panic." About Persons. H. H. Kyser of Talladega is at the Morris. R. B. Walker, Jr., of Blocton is at the Morris. G. K. Little of Tuscaloosa is at the Morris.

Article Text

BANK DEPOSITORS WILL GET MONEY Atlanta, March 14.-(Special.)-Depositors of the defunct Neal bank will get their first dividend in next Friday morning's mail. Seven thousand of them will participate in this dividend, which amounts to 20 per cent. The Neal bank had altogether 9000* depositors, but there were more than 2000 of them who had less than $2.50 on deposit, and at least 20 who had to their credit 2 cents or less. These will be paid nothing at present, and the probabilities are they are not seriously worrying over it. Checks for one-fifth of the amount due 7000 depositors are now being drawn in the offices of the receiver, the Central Bank and Trust corporation, and will be mailed Thursday night, March 19, reaching the depositors on the 20th, the date fixed by the court for payment. The aggregate payment to be made to these depositors will be $375,000. It will probably be three or four months before another dividend is paid, and the final settlement will hardly be made under two years from the date of the bank's failure.

Article Text

Neal bank after its indebtedness to the Fourth National Bank of New York, the bank of Manhattan company of New York, the Atlanta Clearing House association and the state of Georgia has been deducted. To these creditors no dividend will be paid. The receiver has approximately $450,000 cash on hand.

Article Text

CHICKENS COME TO ROOST

J. R. Gray, Caught in Crash, Could Not Borrow Money Because of War on Capital in Georgia. From the Gainesville News. Inman & Co., a firm composed of James F. McGowan, of Augusta, and James R. Gray, of Atlanta, one of the largest cotton firms in the South, have failed for over one and a quarter million dollars, and have been placed in bankruptcy. Mr. James R. Gray, who is the editor of the Atlanta Journal, the leading Hoke Smith organ of the state, gives as a reason leading up to this failure that it has been caused by the long and continued depression in the cotton market. But, it is as true as the law of the Medes and Persians that one business cannot fail without affecting others, and that the war upon capital has brought about a chain of disasters.

When the Pins Began to Fall. When the Seaboard Air Line went into the hands of a receiver the Hoke Smith boomers said it was already broke, and that it was placed in the hands of a receiver for political effect. When the Tallulah Falls Railway failed and went into the hands of a receiver they said it was politics. When the Elberton Air Line Railroad, between Toccoa and Elberton, failed they said it was politics. When two or three big cotton mills in middle Georgia failed they said it was politics. When the Neal Bank of Atlanta failed they said it was bad investments. When saw mill after saw mill and several brickyards shut down they said it was politics.

Told Gray They Wouldn't Lend Money While Smith Was Governor. We understand that Mr. Gray visited New York about two weeks ago and made every effort to raise money, but received in reply the statement that just so long as Hoke Smith continued his war on capital in Georgia just so long would they refuse to advance one single dollar for any enterprise whatever in the State, and failing to raise the money there was nothing to do but to go into bankruptcy. It is stated that the estate of Walker P. Inman is involved as endorser to the extent of $450,000. The assets are represented almost by cotton and futures. Much of them were bought at prices far higher than those prevailing now. The failure is admitted to be the severest blow that has struck the Southern cotton industry in a decade, as it was the biggest Southern firm and probably the world's greatest exporting concern.

Article Text

HILLYER MADE A GOOD REPORT CALLED ATTENTION TO PROSPER OUS CONDITION OF BANKS IN GEORGIA. Secretary L. P. Hillyer, of the Georgia Bankers' Association, made the following interesting report at the meeting here Thursday: Mr. President and Gentlemen of the Georgia Bankers' Association: It gives me much pleasure to report to you that our association is flourishing in spite of the late depression, and that our membership is larger than ever. The recent group meetings were largely attended and were very enjoyable as well as beneficial. The panic of 1907. the worst in some particulars this country has ever seen, affected our Georgia banks as lightly, perhaps, as the banks of any state in the union. The state treasurer reports only two failures of state banks in Georgia for the year 1907. Thése fail. ures were the Neal Bank of Atlanta and the Exchange Bank of Macon. The Exchange Bank closed its doors some time before the panic, the Neal Bank was the sole weak spot in our 600 odd banks developed by the panic of 1907. In order that an accurate report might be made, I wrote to the comptroller of the currency at Washington, asking him to give the name of the National Banks which failed in Georgia since June 1st, 1907, as well as the full particulars concerning them. He replied as follows: "Washington, June 6th, 1908. Mr. L. P. Hillyer, secretary Georgia Bankers' Association, Macon, Ga. Sir: In reply to your letter of the 3d instant, you are respectfully informed that there have been no failures of National banks in the state of Georgia subsequent to May 15th, 1904. The First National. Bank of Macon suspended payment on that date, and its affairs were finally closed May 12th, 1906, the claims of creditors having been paid in full wth interest. T. P. Kane, Respectfully, Our record is a magnificent one, and none of us can estimate how much of it is due to the educational and moral influence of this association. Our members frequently, without knowing it, acquire valuable knowledge through social contact, and hints suggested at group meetings and annual conventions often enables us to avoid the treacherous pitfalls of banking. The program committee, of which your secretary is a member, has secured speakers for this convention whose addresses will furnish food for thought, and who will, no doubt, suggest important work for our association to accomplish. I beg of you to give them careful attention. and let us make this the greatest convention 'ever held since our organization. L. P. Hillyer, Respectfully, Secretary.

Article Text

STATE GLEANINGS

Demurrers were fixed in the superior court to the indictments against H. T. Thornton and W. F. Manry, president and vice president of the failed Neal bank of Atlanta, charging violation of the state bankink laws. The annual tax returns of the Atlanta, Birmingham and Atlantic railway, made to Comptroller General W. A. Wright, shows an increase of nearly $1,200,000 over those of 1907. Robert E. Davison of Athens, who received the second largest vote for prison commissioner in the recent election, has withdrawn from the second primary, thus leaving the field open to Wiley Williams who received the greatest number of votes. The Commercial Telegraphers' union of America, which has just closed its convention in Milwaukee selected Atlanta for their next meeting place. The Rockmart Hosiery mills resumed operations and will employ about thirty operatives. The mill has been shut down for several months. The supreme court has reversed the election held in Lafayette some time ago in which bonds were voted for the establishment of an electric plant and water works system. The leading railway lines of the Southeastern Tariff association filed a bond amounting to $600,000 and will go to the higher courts with the latest issue in the famous Tift lumber rate case at Macon. The farmers' co-operative demonstration work under the supervision of Dr. S. A. Knaff, of the department of agriculture of Washington, is meeting with much favor in Floyd and adjoining counties. Work of actual construction has been begun upon the fertilizer plant to be built by the Germofert Manufacturing company of Charleston, at the cost of $250,000 near Atlanta. When completed, early in September, this will be the largest factory for the manufacture of fertilizers in the south. Attorney John R. Cooper of Macon, has entered a fight in the state courts again to keep Jim Yeates from going to the state penitentiary for life for killing of the town marshal at Donaldsonville several years ago. Captain Archibald W. Butt, who has recently been detailed as aide to President Roosevelt, is a native Georgian, being from Augusta, and appointed into the service from there in January. The following officers were elected by the Georgia Bankers' association at the annual meeting in Savannah. Forest H. Crane, Savannah, president; E. D. Walter, Brunswick, first vice president; L. P. Hillyer, Macon, secretary. The steamship Merrimack, Captain Pratt, which arrived at Savannah, brought in the survivors of the crew of the British steamship Caribbee, Captain Ellis, which was lost in the gulf stream. At the last meeting of the city council a license of $1,000 was placed on the sale of near beer in the city of Tifton. Georgia's horticultural and agriculral products for 1908 will be worth about $200,000,000, according to the estimate of T.G. Hudson, commissioner of agriculture, who has compiled a report from information received in response to 1,000 letters sent out to reliable persons in all parts of the state. A terrible death was that suffered by J. E. Rodgers of Ellijay, Ga., at a saw mill plant in Murray county. Mr. Rodgers was operating the mill, when he was caught in some of the flying gear and was almost torn to pieces before the machinery could be stopped. Bob Tuggle, a meat cutter at a Cedartown market, was run down and killed by a Central switch engine. Tuggle was walking close beside the track reading a letter, and the engine came up from behind with a string of cars and struck him. Unexpected activity developed in Augusta cotton circles as the result of the purchase by Augusta mills of 1,164 bales, bought on the local market and sent direct to the warehouses of the local manufacturing concerns. Governor Smith has offered a reward of $200 for the arrest and evidence to prosecute the unknown person who burned the gin house and grist mill of Angus Morrison and also the school house in Morven district, Brooks county. Work has been begun at Covington on the new cotton seed oil mill. The company has bought the old machine works on the Georgia railroad, and the manager is on the ground getting it equipped.

Article Text

PAGE TWELVE What It Means| to Wreck a Bank (CONCLUDED FROM PAGE ONE) the hog-thief. Ignorance, illiteracy, the viciousness of environment and early training are not responsible for their moral turpitude, as may be the case with the negro thief and the burglar. No: usually, the wreckers of banks are men of education, good family, and comfortable circumstances. Generally, they are enterprising persons who, having made some money, wish to make more. They have an idea that criminal statutes were intended to catch poor devils who have no property and no rich friends. So, they conspire among themselves, agree to put the funds into some alluring speculation-trusting to luck to cash in and pocket their gains, without being caught making the plunge. In many instances, a smcoth-talking, "poker-face" outsider leads the bank officers to the top of the mountain, points to "Big Profits", (in a get-rich-quick speculation,) and proposes a partnership in the venture and the gains. The officers, fascinated by the prospect of such luscious profits, consent. The outsider and the bank officials form a "company"; and into the speculation they dump the trust funds, which confiding stockholders and depositors have placed in their custody. They take the gambler's risk-with other people's money. Now, suppose the bank had capital stock to the amount of $100,000; and that the conspirators put $160,000 of the deposits in a land deal; and that, all at once, like a clap of thunder on a sunny day, there resounded the cry of PANIC! PANIC!! Where would that bank be? With more than its entire capital stock unavailable, what fix would it be in, to resist a cyclone? You might as well expect an ocean-going steamer to ride out a storm, after her captain- had thrown overboard a large proportion of her coal-the storm having made every ton of it necessary to her salvation. Under such circumstances, no steamer could escape: and no bank, caught as the Neal Bank was, could possibly weather a panic. With their eyes open, and with calculating turpitude, the well-dressed, well-educated, well-connected gentlemen who wrecked the Neal Bank trampled upon as plain and positive a penal law as was ever put into our Criminal Code. Where the law provided that, with the consent of the board of directors, the two officers of the bank, Thornton and Manry, might borrow $20,000 of the bank's funds, they took and used, without the consent of the directors, $120,000; and they allowed their partner, in speculation and in crime, to use $40,000 more! Who was injured by this cool, deliberate violation of law? The stockholders lost $100,000. The nine thousand depositors were, many of them, made penniless, at the very beginning of one of Atlanta's terrible winters. Just how much suffering was caused among the poorer victims, no human being could know. But there was other damage done by these bank-wreckers, Thornton, Manry and C. T. Ladson, Esquire. The young men of this and other States have seen the criminals go unwhipped of justice. Prison pens, stockades, jails, chaingangs and penitentiaries have

Article Text

TREASURER GETS AFTER

BALANCE IN NEAL BANK

Wants all, Instead of 55 Per Cent of DeKalb Tax Funds There When Bank Failed

On Tuesday the state treasury received from the Central Bank and Trust corporation three checks covering dividends which it, as receiver for the Neal bank, wished to pay under a recent decision of the supreme court.

The three checks aggregated a total of 55 per cent (two dividends of 20 per cent and one of 15 per cent) of the whole amount, $11,871.08 taxes collected, which T. R. Floyd, former tax colector of DeKalb county, had on deposit in his own name in the Neal bank when the bank failed.

Wednesday morning the state was after the rest of it. "The decision of the supreme court was that the state's claim upon that tax money in the bank then, constitutes a prior lien," said Captain Perry, after consulting other authorities. "In other words, the decision was not only that the state is entitled to its money deposited in Mr. Floyd's name, thereby settling a mere question of ownership of the account; but was also that the state is entitled to the whole of it."

Dividends amounting to 5 per cent have been paid all other depositors of the bank at this date.

Vice President W. H. Patterson, of the Central bank, was out of town Wednesday, and the treasury department could obtain no explanation why the dividends and not the whole amount had been remitted. It is believed that a mistake is responsible for the matter.

Article Text

Receiver's Deed

$5-Central Bank and Trust Corporation as receiver of Neal bank to J. H. Porter et al., lot 59 by 150 feet, northwest corner Forrest and Piedmont avenues. February 19.

Article Text

Receiver's Deed $1,750-Central Bank and Trust Corporation as receiver of Neal Bank to G. W. Chamlee, lot 53 by 210 feet, east side Crew street, 157 feet north of Fulton street. January 6.