Mechanics Savings Bank (Richmond, VA)

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MECHANICS' SAVINGS BANK IS CLOSED BY EXAMINER Rumors That Institution Had "Failed" Spread Through Jackson Ward, Where Majority of 10,000 Depositors Live, and Detail of Police Called to Scene. The Mechanics' Savings Bank, a morrow or Tuesday. It was shortly after 3 o'clock that colored institution, at 214 East Clay the two deputy examiners under orStreet, was closed yesterday afterders from Mr. Richardson, presented noon by Chief State Bank Examiner their credentials to Albert V. Norrell F. B. Richardeon. by order of the Jr., cashier of the bank. instructed State Corporation Commission. The Detective Captain Alexander S. appointment of a receiver for the AfWright and Detective Sergeants fairs of the bank will probably be Wilshire and Organ to clear The asked for tomorrow in one of" the place of its customers, and closed the courts of this city. doors. The order to suspend operations Rumors that the bank had "failed" was given late in the afternoon and spread like wildfire through old was received with surprise by John Jackson Ward. where the majority of Mitchell, Jr., president of the Instithe more than 10,000 depositors live. tution. Mitchell declared last night In a few minutes a crowd of several that the bank was solvent and that hundred people gathered in front of the eavings of the depositors were the building in an effort to withdraw seoure. He also said that the bank their savings. A detail of police probably will reopen for business to(Continued on Page 8, Coi. 1.)

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The following resolutions were unanimously adopted last night at a meeting of the depositors of the Mechanics Savings Bank, held at the City Auditorium, Rev. Dr. W. T. Johnson, presided:

We, your committee appointed at your meeting, held Friday night, July 21st, 1922, in the City Auditorium, beg leave to make the following report: We find that while we expected otherwise the receivers, who were appointed by the judge of the Chancery Court, His Honor, William A. Moncure, have been unable to complete a report within a brief period of time as was expected, due to the construing of the order of the court to mean that all the pass-books must be turned in to the receivers at the bank and a report made thereon to the court, and that there are hundreds of depositors unwilling to part with the pass-book, which is the evidence of the liability of the bank to them, and that this would mean months of delay.

We are of the opinion that the bank should be opened and the president of the Mechanics Savings Bank be permitted to comply with the requirement of the Banking Division of the Corporation Commission in the delivery of the required securities of ($83,500.00) Eighty-three Thousand Five Hundred Dollars. In the meantime after the bank is opened, the pass-books could be turned in from time to time and balanced. We learn that the probable liability on any pass-book can be secured by a bond to be given in such an amount as the honorable court may see fit to require. As many of us are in need of money to pay our expenses and many organizations are held up on account of the inability to pay sick and death claims, and many others have money to be deposited for safe-keeping and cannot utilize the facilities provided by the institution with which they have been doing business for so many years, it was deemed advisable to file a petition and a plea with the judge of the honorable court, asking that the officers and stockholders of the aforesaid Mechanics Savings Bank be permitted to open for business, along the lines indicated.

We further pledge ourselves to use our best efforts to prevent anything even resembling a "run" on the aforesaid institution, as we realize that such a step would tend to destroy one of the leading Institutions in the country, which institution is a monument to the far-sightedness of the better class of white people, who have shown us the way to practice economy and thrift in this life's-battle. We ask that our course in this matter be approved by you, and that all depositors be urged to join in this petition for the relief prayed to the end that the unfortunate conditions now existing shall cease.

We further commend the steady devotion of the colored people to the Mechanics Savings Bank and the unanimous support and encouragement accorded it by all other financial institutions in this city and State. We again emphasize our appreciation of the hearty expression of good-will and support accorded to us by practically all of the white people of this community and assure all parties that it has done more to cement the friendship previously existing between the races than any other thing could have done.

Respectfully submitted, J. W. THOMPSON, J. O. COOK, J. H. BINFORD, A. W. HOLMES, MAGGIE L WALKER J. THOMAS HEWIN Chairman

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asking all individual depositors to turn in their books in order that final check may be made of assets and liabilities. Assembling the widely-scattered books is a slow process

A meeting of depositors of the bank is announced for tonight at the city auditorium. At that time statements in relation to the affairs of the institution will be made and assurances given that the bank is, as contended all along by President Mitchell, solvent and ready to resume business as soon as it is allowed to do so.

The Mechanics Savings was ordered closed by the banking division of the state corporation commission Saturday, July 15. On the following Monday, upon petition of the corporation commission, Judge Moncure appointed receivers to take charge; naming James W. Gordon of Smith and Gordon and John Randolph Tucker.

Judge Moncure's order sought to impress the desirability of a speedy report by the receivers, it being represented to the court in the petition for receivers that there was reasonable ground for the belief that the bank might be in position to resume business upon discharge of the receivership.

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PLAN UNDER WAY TO REOPEN THE MECHANICS BANK A plan is under way to reopen the Mechanics Savings Bank in conjunetion with a leading financial institu tion in this city as soon as the approximate amount of the liability has been obtained as a result of the receivership. A meeting of the depositors will be held and plans submitted. By the arrangement; no run on the Bank will precipitate and each depositor will receive the full amount of his deposit with interest. This plan is being promoted in a way that will be mutually sutisfactory to all parties concerned and the Receivers it is un derstood will co-operate in any move ment which they can properly approve.

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PLAN UNDER WAY TO REOPEN THE MECHANICS BANK A plan is under way to reopen the Mechanics Savings Bank in conjunetion with a leading financial institu tion in this city as soon as the approximate amount of the liability has been obtained as a result of the receivership. A meeting of the depositors will be held and plans submitted. By the arrangement; no run on the Bank will precipitate and each deposftor will receive the full amount of his deposit with interest. This plan is being promoted in a way that will be mugually satisfactory to all parties concerned and the Receivers it is un derstood will co-operate in any move ment which they can properly approve.

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URGE PASS--BOOK DELIVERY We recommend and urge all depositors to carry their pass-books to the Receivers of the Mechanics Savings Bank, taking a receipt therefor, in order to facilitate the early reopening of that institution. On motion of Rev. J. W. Pryor, See onded by John F. Brown, the report of the committee was unanimously adopted. The conditional agreement on the part of the depositors was sign ed and sent up to the secretary's table. The utmost harmony prevailed. Mr. Frank Hallion served as secretary. Benediction was announced by Rev. J.W. Pryor.

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The unofficial information given was that the Mechanics Savings Bank would be returned to its owners in ten days. Instead, it has been more than two months. The Receivers insist that the pass-books must be turned in before they release their hold on the Bank. Let us deliver to them the pass-books and remove this basis of complaint. The white people of this community have cordially co-operated with the colored people both with their sympathy and offer of money.

The Depositors have come forward and offered to share in the liability should that liability exceed the amount approximated by the Receivers. This removes the necessity for the return of all the pass-books. The leading white financial institution, which is the largest and only creditor of the Bank except the Depositors, offers to aid and will not embarrass the institution. Then why not re-open the Bank. The Depositors have agreed not to make a run on the Bank and they will accept a limited amount of cash on their deposits in order to aid the Bank.

Winter is here and the people need some of their money in order to ward off suffering. It seems to us then that there is no excuse for keeping the Bank closed. The cost of keeping it closed is approximately from fifty to one hundred dollars per day. It is essentially necessary that it be opened. One pull, a strong pull and a pull all together should accomplish this feat since the Receivers themselves are reported to be anxious to get out.

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"And it being represented to the Court that the closing of said bank by the plaintiff was because of the presence in its assets of obligations of the Bonded Realty Company Inc., amounting to the sum of $83,500.00, which are not secured to the satisfaction of the plaintiff and it being further represented to the Court that there is a reasonable prospect of the defendant being able, within a short time, of satisfying the plaintiff as to said obligations of the Bonded Realty Company, Inc., and as to the entire solvency of said bank, it is further ordered that said receivers be authorized and instructed to report to the Court, at the earliest possible date, together with a statement of the assets and liabilities of said bank, such offers and plans as may be submitted to them by the defendants, or others on its behalf, with a view of satisfying the requirements of the plaintiff and effecting a prompt discharge of said receivers, and the return of the assets of said Mechanics' Savings Bank, of Richmond, Va., to its proper authorities."

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MITCHELL CASE SET FOR TRIAL HERE TODAY

Accused Faces Charge of Misappropriating Certain Funds of Bank He Heads.

The case of the Commonwealth against John Mitchell, president of the Mechanics' Savings Bank (colored), will be called for trial today in Hustings Court.

Mitchell is alleged in indictment to have misappropriated certain funds of the bank. He claims that while there is an apparent discrepancy in the various statements as to the liabilities and the assets of the bank, whatever errors that may be are through bad bookkeeping and not through criminal irregularities or negligence.

Mitchell is represented by S. S. P. Patteson and R. Lynch Montague. The bank has been closed several months, pending official examination of the books.

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But how much more is needed? The Receivers assert that they cannot determine this amount until all the pass-books of the depositors have been turned in and balanced. To meet this condition the depositors, in meeting assembled, by unanimous vote, decided to share in any liability in excess of the amount already ascertained. This relieves the situation and enables the Receivers to strike a balance and submit the same to the Court with such a recommendation as may, in their judgment be fair to the people whom they represent. This then will necessarily end the delay as the Receivers have been unofficially reported to be in favor of re-opening the Bank and willing to do all in their power to help the colored people of this community. The issue is plain. Personal feeling and animosities should not figure in this matter. Let us re-open the Mechanics Savings Bank in order that those depositors who are urgently in need of some of their money may be able to get it and those who wish to deposit their savings may be permitted SO to do. The depositors stand pledged not to make any run on the Bank Other issues and conditions can be met as they are presented The primary purpose at this time is to do business again. Let us ascertain the approximate amount of liability, put up the assets necessary and with the aid and support of the good white people and the self-sacrificing colored ones, backed by an abiding faith in the Almighty God, let us re-open the Bank.

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DEPOSITORS SIGNING

In the meantime the depositors have been signing the petition which will decrease the liabilities of the insti tution over a quarter of a million dollars and when completed will cause tee removal of the receivers and the payment shortly afterwards of cash on all deposits. Arrangements have been made for the financing of the project and under new management there is every probability that the Mechanics Savings Bank will reopen for business under the direction of competent white financiers for a time, but with colored officials and employees. This will enable the institution to get rid of the heavy expense to which it is being sub jected.

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THE BANK WILLING

They are willing to accord to the Mechanics Savings Bank every oppor tunity to settle its acounts. Upon the payment of the expense, the sale was postponed, John Mitchell, Jr., having paid the expense. The property at 816 N. ih street was also advertised for sale by a leading real-estate firm, on account of the failure to pay one of the interest notes. Editor John Mitchell Jr. took the matter up with the firm and they agreed to cancel the sale if the interest note was paid or the rents were assigned to take care of same. One of the receivers was consult ed and he stated that he saw no reas on why this could not be done.

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HIGH BANKING OFFICIAL ENDORSES PLAN In referring to the plan for the vacating of the receivership and the reopening of the Mechanics Savings Bank, a high official in one of the leading banks of the city in a letter received Thursday. August 30, 1923, writes among other things: "I think your plan is a happy solution of the problem. if it can be carred out." The people to carry it out are the depositors. Notify those who have not. already signed.

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But how much more is needed? The Receivers assert that they cannot determine this amount until all the pass-books of the depositors have been turned in and balanced. To meet this condition the depositors, in meeting assembled, by unanimous vote, decided to share in any liability in excess of the amount already ascertained. This relieves the situation and enables the Receivers to strike a balance and submit the same to the Court with such a recommendation as may, in their judgment be fair to the people whom they represent. This then will necessarily end the delay as the Receivers have been unofficially reported to be in favor of re-opening the Bank and willing to do all in their power to help the colored people of this community. The issue is plain. Personal feeling and animosities should not figure in this matter. Let us re-open the Mechanics Savings Bank in order that those depositors who are urgently in need of some of their money may be able to get it and those who wish to deposit their savings may be permitted so to do. The depositors stand pledged not to make any run OR the Bank Other issues and conditions can be met as they are presented The primary purpose at this time is to do business again. Let us ascertain the approximate amount of liability, put up the assets necessary and with the aid and support of the good white people and the self-sacrificing colored ones, backed by an abiding faith in the Almighty God, let us re-open the Bank. JOHN MITCHELL, JR.

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"And it being represented to the Court that the closing of said bank by the plaintiff was because of the presence in its assets of obligations of the Bonded Realty Company, Inc., amounting to the sum of $83,500.00, which are not secured to the satisfaction of the plaintiff and it being further represented to the Court that there is a reasonable prospect of the defendant being able, within a short time, of satisfying the plaintiff as to said obligations of the Bonded Realty Company, Inc., and as to the entire solvency of said bank, it is further ordered that said receivers be authorized and instructed to report to the Court, at the earliest possible date, together with a statement of the assets and liabilities of said bank, such offers and plans as may be submitted to them by the defendants, or others on its behalf, with a view of satisfying the requirements of the plaintiff and effecting a prompt discharge of said receivers, and the return of the assets of said Mechanics' Savings Bank, of Richmond, Va. to its proper authorities."

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Corporation Commission, the Mechanics Savings Bank will reopen. The recoivers re-echoed the opinion of the State Corporation Counsel, Oscar Shumake, Esq. John Mitchell, Jr. announced that the requirements would be complied with upon securing the necessary signatures of the depositors

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' 'And it being represented to the Court that the clesing of said bank by the plaintiff was because of the presence in its assets of obligations of the Bonded Realty Company, Inc., amounting to the sum of $83,500.00, which are not secured to the satisfaction of the plaintiff and it being further represented to the Court that there is a reasonable prospect of the defendant being able, within a short time, of satisfying the plaintiff as to said obligations of the Bonded Realty Company. Inc., and as to the entire solvency of said bank, it is further ordered that said receivers be authorized and instructed to report to the Court, at the earliest possible date, together with a statement of the assets and liabilities of said bank, such offers and plans as may be submitted to them by the defendants, or others on its behalf, with a view of satisfying the requirements of the plaintiff and effecting a prompt discharge of said receivers. and the return of the assets of said Mechanics' Savings Bank, of Richmond, Va. to its proper authorities.''

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ONE TO BE CHOSEN.

"I had a personal talk with one of the Receivers and it was a straight talk with him. I asked him the pointed question: If they could pay fifty cents on the dollar, if they retained charge of The Mechanics Savings Bank. He replied to my question, 'No.' "--Extract from Col. C. R. Keiley's remarkable address at Fifth Street Baptist Church, Tuesday night, September 25, 1923.

"I want to impress upon you the difference between a live Bank and a dead something. It is up to you to say whether it shall be a scare-crow or a monument. If you don't sign the waiver, you will be a fool. You will be giving up an opportunity to do one of the greatest things to help your own people."--Extract from the great analytical address of Banker James D. Lecky at the Fifth Street Baptist Church, September 25, 1923.

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citizens of this Grand Old Commonwealth. To this end, he has expressed the hope that some way, some plan may be worked out to bring about the protection of the depositors and stock holders of the Mechanics Savings Bank. As to what is best to be done, he is leaving this to the receivers, the patriotic white citizens, who under the leadership of Col. C. R. Keiley are doing so much to bring about the rehabilitation of the bank and to the Baptist Ministers' Conference Committee, under the chairmanship of Rev. Dr. T. J. J. Mosby,

His Honor, George Ainslie, Mayor of Richmond city occupies substantially the same position. With the help of God and the depositors themselves, reinforced by patriotic citizens of the community there is no reason why the hopes of these distinguished citizens should not be realized.

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MECHANICS SAVINGS BANK CASE NEARS ADJUDICATION The Mechanics Savings Bank case is now in the hands of the special attorney having charge of the matter and it is understood that the State Corporation Commission and the Chancery Court will be approached in conjunction with the final settlement of the matter by the vacating of the Receivership and in coopera-

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But how much more is needed? The Receivers assert that they cannot determine this amount until all the pass-books of the depositors have been turned in and balanced. To meet this condition the depositors, in meeting assembled, by unanimous vote, decided to share in any liability in excess of the amount already ascertained. This relieves the situation and enables the Receivers to strike a balance and submit the same to the Court with such a recommendation as may. in their judgment be fair to the people whom they represent. This then will necessarily end the delay as the Receivers have been unofficially reported to be in favor of re-opening the Bank and willing to do all in their power to help the colored people of this community. The issue is plain. Personal feeling and animosities should not figure in this matter. Let us re-open the Mechanics Savings Bank in order that those depositors who are urgently in need of some of their money may be able to get it and those who wish to deposit their savings may be permitted SO to do. The depositors stand pledged not to make any run on the Bank Other issues and conditions can be met as they are presented The primary purpose at this time is to do business again. Let us ascertain the approximate amount of liability, put up the assets necessary and with the aid and support of the good white people and the self-sacrificing colored ones, backed by an abiding faith in the Almighty God, let us re-open the Bank. JOHN MITCHELL. JR.

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But how much more is needed? The Receivers assert that they cannot determine this amount until all the pass-books of the depositers have been turned in and balanced. To meet this condition the depositors, in meeting assembled, by unanimous vote, decided to share in any liability in excess of the amount already ascertained. This relieves the situation and enables the Receivers to strike a balance and submit the same to the Court with such a recommendation as may, in their judgment be fair to the people whom they represent. This then will necessarily end the delay as the Receivers have been unofficially reported to be in favor of re-opening the Bank and willing to do all in their power to help the colored people of this community. The issue is plain. Personal feeling and animosities should not figure in this matter. Let us re-open the Mechanics Savings Bank in order that those depositors who are urgently in need of some of their ToHey may be able to get it and those who wish to deposit their savings may be permitted SO to do. The depositors stand pledged not to make any run on the Bank Other issues and conditions can be met as they are presented The primary purpose at this time is to do business again. Let us ascertain the approximate amount of liability, put up the assets necessary and with the aid and support of the good white people and the self-sacrificing colored ones, backed by an abiding faith in the Almighty God, let us re-open the Bank. JOHN MITCHELL. JR.

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authorities But how much more is needed? The Receivers assert that they cannot determine this amount until all the pass-books of the depositors have been turned in and balanced. To meet this condition the depositors, in meeting assembled, by unanimous vote, decided to share in any liability in excess of the amount already ascertained. This relieves the situation and enables the Receivers to strike a balance and submit the same to the Court with such a recommendation as may, in their judgment be fair to the people whom they represent. This then will necessarily end the delay as the Receivers have been unofficially reported to be in favor of re-opening the Bank and willing to do all in their power to help the colored people of this community. The issue is plain. Personal feeling and animosities should not figure in this matter. Let us re-open the Mechanics Savings Bank in order that those depositors who are urgently in need of some of their money may be able to get it and those who wish to deposit their savings may be permitted SO to do. The depositors stand pledged not to make any run on the Bank Other issues and conditions can be met as they are presented The primary purpose at this time is to do business again. Let US ascertain the approximate amount of liability, put up the assets necessary and with the aid and support of the good white people and the self-sacrificing colored ones, backed by an abiding faith in the Almighty God, let us re-open the Bank. JOHN MITCHELL, JR.

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MONEY FOR ALL DEPOSITORS

Checks for those depositors of the Mechanics Savings Bank, who signed up with the Depositors' Protective Committee, are now being written in the offices of Attorney M. J. Fulton in the Mutual Building and will be delivered to them in a few days. The receivers have also been sending out checks this week. Money for the Christmas Savings Club depositors is also available and all depositors, those who signed and did not sign will get money. The matter is being handled quietly and successfully.

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K. OF P. IN STAUNTON I STAUNTON, VA., June 26-In diacussing here the situation concerning the affairs of the Mechanics Savings Bank of Richmond, Mr. John Mitch ell, Jr. said that his only interest was to secure every penny possible for the depositors of the bank. With the aid of his white friends and the support of the colored, ones, he hoped and expected to be able to pay in full ultimately the amount on de posit in that institution. He had villingly assigned enough of his property to protect the interest of the Grand Lodge, Knights of Pythiaa and the Grand Court. Order of Ca lanthe. DID NOT RECEIVE BENEFIT. While he did, not benefit himself in any way from the money, it having been taken away from him by clerical errors or worse, he did not shirk responsibility. It was for this reason that he took active interest in the affairs of the bank and the Order. When persons, who had no fraternal interest in the Order were profiting by these misfortunes, he was forced to protest The startling disclosure that W. H. C. Brown, of Newport News, Va., J. R. Pollard of Richmond, and Levi C. Brown were on record as being the promoters of the scheme to purchase the $170.000 worth of the assets for $25,000. and had actually entered into competition with the depositors themselves. bidding as high as $31,250 for the same, made it necessary for him to protest against this action. GRAND CHANCELLOR INVOLVED. It was something more than a surprise. when Attorney W. H. C. Brown announced to the Grand Lodge, as reported, that Grand Chance'lor W. B. F. Crowell was also interested in the effort. Mr. Mitchel] stated that some white speculators at Richmond had willingly gotten out of the way when they found that the colored depositors wanted the assets Here is a copy of the letter sent to Grand Chancellor Crowell THE BROWN-BYRD LETTER. "Richmond. Va.. April 7. 1926 "W. B F. Crowell, Grand Chance! for Grand Lodge. K. of P. of Virginia, 14 N. Henry Street. Roanoke, Va. Dear Brother:- members of the Grand Lodge we are bringing to your attention matters that seem serious to us. "We are informed that the Mechanics Savings Bank owed the Grand Lodge about $70,000 and the Grand Lodge of course, like the balance of the depositors wants and should get back the most they can out of the assets so as to reduce its loss. We are informed that the attorneys of the Grand Lodge are, W. H. C. Brown, of Newport News and J. R. Pollard, attorney of this city, and as attorneys for the Grand Lodge it should be their sole duty to get all they can out of these assets for the Grand Lodge, but we are informed that W. H. C. Brown and Levi C. Brown and J. R. Pollard have organized a corporation among themse'ves for the purpose of buying about $170.000.00 of assets of the Mechanics Savings Bank for the low dollar mark. to Day as little as they can for them. The least they huv them for the more they will individnally make and the more the accord