Sessions Loan & Trust Company (Marietta, GA)

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TEMPORARY RECEIVER FOR BANKING COMPANY (By The Associated Press) ATLANTA, Feb. 13-T. R. Bennett, superintendent of the State Banking Department, was appointed temporary receiver for the Marietta Trust and Banking Company, by an order issued in superior court here today on petition of a number of depositors. The petition set forth the, shortage recently discovered, which had been estimated as high as $200,000 and asserted a temporary receiver was necessary as the bank's charter had expired. Two officers of the bank are out on bond charged with embezzlement.

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BANK OFFICIALS CLAIM CHARTER EXPIRES IN APRIL Hearing Will Be Had Before the Judge of Fulton Superior Court, on Feb. 23rd A petition was filed through Fred Morris and Herbert Clay asking a permanent receiver for the Marietta Trust and Banking Company, before Judge George Bell, of the Fulton county Superior Court this week claiming that the charter of the Marietta Trust and Banking Company had expired. The petition was drawn up by Messrs. Clay and Morris representing T. J. Jackson, Tom Gentry, Ralph Manning, Frank Guinn and John S Walker Judge Bell appointed T. R. Bennett, state superintendent of banks the temporary receiver and a hearing will be had on the petition on February 23rd. The bank charter was granted Off September 8, 1891 for a period of 30 years after $10,000 had been paid in and an organization had been of fected. The Journal has been. furnished the following information from reliable source, regarding the developments in the affairs of the Marietta Trust and Banking Company, which was closed February 4th by the state banking department, after having found a large defalcation. 'The Act of the legislature granting the charter, was approved September the 8th 1891. A. section. of the Act provides that it was not to to be organized until $10,000 was paid in. Another section provides that the charter was to run 30 years from the date of the organization. The amount of $10,000 was not paid in till April 25th, 1892, according to the records on the stockholders ledger. The banks records also show that business began. two days later, April 27th, 1922. The auditing is going on under the supervision of T. R Bennett, State Superintendent of banks. It will be completed by March 1st. It is probable that the bank will then be re-organized under a new man agement and enough new stock raised to make the institution absolutely solvent. If such a re-organization is accomplished, the depositors should ultimately be paid in full." For the general information of Journal readers who may be interested in questions arising as to the disbursement of funds of an insolvent bank. we quote Sections 19 and 20 of Article seven, as given in the "Banking Law of the State of Georgia," under the heading "Taking Possessof Bank by Superintendent' Section 19. ORDER OF PAYING DEBTS.-The order of paying debts of an insolvent bank shall be as follows: 1. Debts due the State of Georgia. 2. Debts due any county, district or municipality of the State, including unpaid taxes. 3. Debts due the United States. 4. The expenses of liquidaton, in(Continued on Last Page)

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BANK'S CHARTER DOES NOT EXPIRE UNTIL APRIL 25TH Decision Handed Down Thursday by Judge Bell. Audit to Close This Week A decision that the Marietta Trust and Banking Company is still a corporation, was handed down by Judge Bell in the Fulton county superior court in Atlanta, last Thursday. This definitely settles a question that arose. two weeks ago when T. J. Jackson, Tom Gentry, Ralph Manning, Frank Guinn and John S. Walker filed a petition through their attorneys, Fred Morris and Herbert Clay, asking that a receiver for the Marietta Trust and Banking Company be appointed, claiming expiration of the bank's charter and that a partnership existed.. The decision of Judge Bell is that the bank is still a corporation, and the charter does not expire until April 25, 1922. T. R. Bennett, state superintendent of banks, who was appointed temporary receiver of the bank by Judge Bell when the petition was filed, has been relieved in that capacity under the decision, and now has charge of the affairs of the bank in his official capacity as state superintendent of banks. The auditing of the bank's books will be completed this week, and a local committee will be appointed to make appraisal of the bank's assets. Until the audit and appraisal is made no definite information can be had as to the loss sustained by the organization.

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DIVIDEND CHECKS ARE AGAIN STOPPED

BY AN INJUNCTION Request for a Receiver Stops Issuance of Second Dividend Checks by Agent Another injunction has been filed to stop the payment of another dividend by the liquidating agent of the Marietta Trust and Banking Company. The case will be heard in Gainesville on July 7 to decide whether or not a receiver is necessary for the bank. This application has already been heard before Judge Irwin, who decided that a receiver was not necessary. This decision was rendered on the 28th of June, and the liquidating agent, Mr. G. P. Reynolds was in the act of mailing out checks for another dividend, when he was again stopped by an order from Judge Jones, of Gainesville, Ga. It is reported that Messrs. H. B. Moss and Geo. F. Gober, who represents the parties wanting a receiver, made the point that Judge Irwin was related to some of the plaintiffs, and he held himself disqualified to try the case, but declined to revoke the order which he had already passed, refusing a receiver. The case was then presented to Judge Jones, who again held it up, and passed an order requiring the attorneys for the liqudating agent, Messrs. Herbet Clay and Fred Morris to appear at Gainesville on July 7th, and show why the previous order of Judge Irwin should not be set aside. In the mean time no dividends can be paid out to the depositors. This makes the fourth Judge before whom this matter has been presented.

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APPLICATION FOR RECEIVER DENIED BY FOURTH JUDGE Law Giving State Superintendent Charge of Bank Held Constitutional, Citizen Says. The followng information is published in The Journal at the request of a Marietta citizen who states that a number of inquiries have been recently made in regard to the suit filed several months ago to have a receiver appointed for the Marietta Trust and Banking Co. The application filed by certain depositors and stockholders of the Marietta Trust and Banking Company to have a receiver appointed to administer the affairs of the bank has been denied. The case has been under consideration by four Judges and has been in court since last April. It was first presented to Judge Searcy. then Judge Bell, and finally presented to Judge Jones at Gainesville. Judge Evans, and also Judge Jones decided that the Act which gave the Superintendent of Banks authority to take charge of the bank and administer it affairs, was not unconstitutona], and that the charter of the bank was legally revived and extended, and that the bank and its affairs and assets are properly in the hands of the Superintendent of Banks. The judgment of the court covers the complaint by some of the depositors and also the one filed by certain of the stockholders. The depositors and stockholders were represented by Judge Gober, H. B. Moss and Joe Abbott, while the Superintendent of Banks was represented by Fred Morris and E. H. Clay. The depostors have been paid a dividend of 30 per cent sinee it closed and we are informed authoritatively that another dividend of 10 per cent will be paid within the next few days.

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For Liberty Bonds

MARIETTA, Ga., July 26.—The defunct Marietta Bank and Trust company was held liable for some $15,000 worth of Liberty bonds deposited with it by various people before its failure, in a decision late Wednesday by Judge John D. Humphries, presiding in place of Judge D. W. Blair, disqualified.

The contention of the bank's receivers was that the bonds were deposited with Vice Presidents J. W. Griffith and George Sessions, and that they, and not the bank, were liable. Judge Humphries directed a verdict ordering that these clients of the bank be paid their proportionate

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Marietta Bank Liable For Liberty Bonds MARIETTA, Ga., July 26.-The defunct Marietta Bank and Trust company was held liable for some $15,000 worth of Liberty bonds deposited with it by various people before its failure, in a decision late Wednesday by Judge John D. Humphries, presiding in place of Judge D. W. Blair, disqualified. The contention of the bank's receivers was that the bonds were deposited with Vice Presidents J. W. Griffith and George Sessions, and that they, and not the bank, were liable. Judge Humphries directed a verdict ordering that these clients of the bank be paid their proportionate share out of the bank's assets along with other depositors. The test case was brought in the name of Miss Elizabeth C. Faw.

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Marietta Bank Liable For Liberty Bonds

MARIETTA, Ga., July 26.—The defunct Marietta Bank and Trust company was held liable for some $15,000 worth of Liberty bonds deposited with it by various people before its failure, in a decision late Wednesday by Judge John D. Humphries, presiding in place of Judge D. W. Blair, disqualified.

The contention of the bank's receivers was that the bonds were deposited with Vice Presidents J. W. Griffith and George Sessions, and that they, and not the bank, were liable. Judge Humphries directed a verdict ordering that these clients of the bank be paid their proportionate share out of the bank's assets along with other depositors. The test case was brought in the name of Miss Elizabeth C. Faw.

Aged Florida Preacher Dies

MANATEE, Fla., July 26.—Rev. Edward Franklin Cates, said to have been the oldest settler in this section, and a member of the Florida Methodist conference for 66 years, died early yesterday morning at his home here. He was 88 years old, the oldest member of the Florida conference.