Fidelity Banking & Trust Company (Bluefield, WV)

Article Text

E. W. Mollohan, well and favorably known in financial circles, makes positive statement that he is not a director of the Fidelity Banking and Trust Company, of Bluefields, W. Va., which closed its doors on Saturday last. He is connected with banks at Sutton, W. Va., and Roanoke, Va. Business around town is but fair at best. The banks seem to have plenty of cash on hand, but are not overanxious to expand their loans, save where customers are discounting bills or on call loans with collateral. Collections are Just fair. The clearings are running close to the normal, about a million a day, having increased materially 80 far this month over the totals of July and August. Conditions everywhere are such that conservatism is being encouraged.

Article Text

C. L. Williams Made Bluefield Bank Receiver The Treasury Department today announced the appointment of Christopher L. Williams, of Wisconsin, as receiver of the defunct Fidelity Banking and Trust Company, of Bluefield, W. Va., of which Silas M. Smith, of Washington, was formerly president. Mr. Smith was reported arrested last week in connection with the failure. Bank Examiner Sam V. Mathews investigated the Bluefield bank and recommended Williams. Preliminary examinaton of the bank's paper is said to reveal that three men owe the bank $126,000 on what IS believed to be worthless security. That depositors will be paid in full is believed possible, however, according to word sent by Colonel Smith to former business associates in Washington.

Article Text

Receiver for Defunct Bank

Christopher L. Williams, of Wisconsin, has been appointed receiver of the defunct Fidelity Banking and Trust Company, of Bluefields, W. Va., according to an announcement from the Treasury Department yesterday. Sijas M. Smith, formerly of Washington, was president of the bank, and was reported arrested following its failure. Col. Smith has informed Washington friends that the depositors will be paid in full. Preliminary examination of the institution, however, is said to have disclosed the fact that three men owe the bank $126,000 on what is believed to be worthless security.

Article Text

RECEIVER NAMED Bluefield Bank Stockholders Will Get Fifty Per Cent at Once. BLUEFIELD, Sept. 23-C. L. Williams, expert bank man, has been appointed receiver of the de. funct Fidelity Bank and Trust Company and he will now proceed to ar. range a merger with the First Na. tional Bank of Bramwell, W. Va., and to pay depositors fifty per cent now and more later.

Article Text

Huntington

- Warrants were issued here for the arrest of Hiram and Albert Lockhart, steamboat men of Crown City, Ohio, in connection with the death of Carleton Simms, a wealthy farmer, whose body was found in the Ohio river, near Athalia, several weeks ago. Simms was known to have sold $600 worth of cattle a day before his body was found. He started home on a boat owned by the Lockhart brothers. The money has not been found. Wheeling.-Seven persons were more or less seriously injured here when an automobile belonging to William Fisher plunged over the narrows, dropping 150 feet. Six of the occupants managed to jump from the car, which lodged on a ledge of rock. Charles Clegg, who was the most seriously injured, was found at the bottom of the declivity, under the wrecked machine. The failure of the steering gear to work was the cause of the accident. Morgantown.-Lewis D. Beall, 39 years old, of the Monongalia County bar, died at Morgantown. Mr. Beall was a graduate of the West Virginia University and was a member of the Phi Kappa Sigma fraternity. He is survived by his widow, who, before her marriage, was Miss Daisy Wood, of Morgantown. Bluefield.-C. L. Williams was appointed receiver of the defunct Fidelity Bank and Trust Company and will proceed to arrange a merger with the First National Bank of this city and the bank of Bramwell. It is expected depositors will be paid 50 per cent. immediately and more later. Grafton.-Ninety thousand dollars for bonds to improve the city's water system was voted at a special election held here, there being three times as many votes in favor of their issue as those in opposition. Catlettsburg. - Arthur Hirsh, superintendent of the Independent Steel Company of America, at Kenova, filed a voluntary petition in bankruptcy in the United States District Court here. His liabilities were placed at $225,000. His assets were not given. His creditors reside in New York, Pennsylvania, Ohio and West Virginia. Fairmount.-Mrs. Nettie M. Arnett Ice, wife of William D. Ice, of Gray's Flats, near Fairmont, died Monday from blood poisoning brought on by a wound received from a rusty nail a week ago. Wheeling.-Marshall county farmers south of this city are interested, in the whereabouts of L. G. Orr and C. B. Sharp, who a number of weeks ago leased a large acreage and are said to have contracted bills amounting to more than $10,000, leaving the farmers, by virtue of agreements, to foot the bills. Fairmont.-Judge W. S. Haymond made an address at the annual reunion of the Boggess-McDougal-Dudley families held near here. Nearly 300 descendants of the oldest famflies of West Virginia gathered for the celebration.

Article Text

THOMPSON ON THE HUSTINGS

Lays Bare the Corruption of the Old Republican Machine.

William R. Thompson, Democratic nominee for Governor, and Thomas A. Bledsoe, Democratic nominee for attorney-general, started the week's work at Pennboro Monday, speaking there at a night meeting. during last week they spoke at Summersville, Webster Springs. Sutton, Glenville, Grantsville and Elizabeth. They thraveled by rail, on steamboats, in automobiles, on horseback and even part of the way on foot to fulfill their engagements and everywhere the greatest interest was manifested in what they had to say to their audiences.

At Elizabeth Saturday the beautiful new court house of Wirt county was well filled, fully one half of those present being members of either the Progressive or the Republican party. These men listened with interest to the speakers and after the speaking assurances were given by many Republicans and Pragressives that they would vote the Democratic ticket straight in November.

In their speeches last week Mr. Thompson and Mr. Bledsoe discussed the extravagance of Republican administration in West Virginia, contrasting the cost of running the State government under Democratic and Republican administrations and showing that while the population has only increased about 40 per cent since the last Democratic administration in the State, the expense of running the State government has increased nearly 200 per cent while the expenses for clerk hire at the capitol has increased about 400 per cent. They discussed the entreaties of the present Governor for more money with which to still further increase the expenditures; the building up of a big political machine through the creation of appointive offices responsive to the appointive power. They discussed the negligence of the State officials who are seeking re-election, as shown by their having $85,000 on deposit with worthless security when the Fidelity bank failed at Bluefield. They discussed the manner in which the Virgisia debt case had been handled by the Republican administration and the hundreds of thousands of dollars the case has cost the State for extra-lawyers, including W. M. O. Dawson at $5,000 a year, with the result that a verdict has been given against West Virginia, which may reach $28,000,000. They quoted the unanimous report of Republicans and Democrats alike on the elections committee of Congress to the effect that there was strong presumption that the election in McDawell county two years ago in the management of which Dr. Hatfield was very active, "was not intended to be either fair or honest." They deplored the bringing of the State Board of Control into politics by the selection of James S. Lakin for Republican State Chairman. They called the attention of the voters to the statement of Mr. Roosevelt that the new party was made necessary by the corruption and bossism which dominated the old Republican party and inquired how the Progressives were getting away from that with Dawson running their party and handing them over to the Republicans again, leaving the same old crowd of bosses in control of both parties.

This week Mr. Thompson and Mr.

Article Text

That Bluefield Bank That the State Board of Public Works of West Virginia was permitting the use of state funds to increase the business of one financially interested was made apparent by the failure of the Fidelity Banking and Trust Company of Bluefield, on September 18, 1911. The statement of the receiver showed that the state had on deposit in this bank at the time of its failure about $85000. This was almost one-third of the total deposits of the bank and if the failure of the bank had come a few weeks earlier the state would have had on deposit at that time nearly one-half the total d posits of the bank. At the time of the failure, the deposits of the bank were about $300,000, of which $85,000 belonged to the state of West Virginia. A few weeks prior to the closing of the bank the state deposits had been from $125,000 to $135,000 or al most half of the bank,s deposits. State Treasurer E. L. Long was a stockholder in the bank, holding $5,000 worth of stock. Co. S. M. Smith a member of the Governors staff and closely identified in a political way with the members of the State administration. held about $35,000 worth of stock and was the moving spirit in the organization and management of the bank. The bank was new and comparatively small, its capitalization being $100,000. When it was found that the state treasurer and other friends of the administration were financially interested in it, considerable comment was made on the extent of the state's deposit and it seems increditable that as much as $125,000 to $235,000 should have been deposited in this institution when larger and more substantial banks in the state carried much smaller deposits of state money. In addition to this it is generally understood that the bond given to the state by the Fidelity Banking & Trust Company of Bluefield to secure the state's deposits is worthless. So far nothing has been paid to the depositors although more than a year has passed since the failure and the general impression is that with the double liability of the stock holders so far as it can be collected the depositors in the bank will be heavy losers. State Treasurer E L. Long and the other members of the Board of Public Works who permitted this enormous deposit in a bank which proved to be unsafe and without adequate bond for security are with two exceptions the candidates for re-election. There

Article Text

appropriations of the legislature

Now in this manner the Fidelity Bank at Bluefield had gathered a part of the $85,000 of the state's money which was in its possession when it closed its doors. There were other banks in the state that had large deposits at the time this occurred. Suppose that they had closed their doors. Could you blame the administration? No one regrets this sad affair more than the board of public works. There were men who were connected with the bank who swore they were worth $100,000 each, and had filed their bond with us. It seems that the stockholders of this bank, as well as those citizens who were depositars, who were on the ground, were as much surprised as we were when trouble came. The receiver of the Fidelity bank on October 10 paid to the state $25,633.12, and we hope to see yet every cent paid in full, not only to the state, but to all whom it may be indebted. The charges made in this article about the state holding up banks to compel them to make a loan, are perfectly absurd, and every bank, every cashier and every president of every bank which is a state depository, when he reads the article I refer to, will know Jhow absurd and how far it is from the truth. I leave that with them to judge. J. S. DARST,

Article Text

USED WITH WORTHLESS ITY TO HELP BOLSTER UP INSECURE BANK. PUBLIC MONIES UTILIZED TO PROMOTE INTERESTS OF ADMINISTRATION. OFFICIALS WHO PUT $85,000 IN BANK WHICH FAILED ARE SEEKING RE-ELECTION. A sample of the manner in which the money paid into the state treasury by the tax payers is taken care of by the State Board of Public Works is afforded in the case of the Fidelity Banking and Trust Company at Bluefield, and the loss of a large part of the State's deposits in that bank. It appears from this case that the public monies of the State have been used, with apparently litt'' attempt to safeguard them, for the purpose of assisting a financial institution in which at least one member of the State administration was a stockholder and which apparently was badly in need of all the assistance it could get. On September 15, 1911, the Fidelity Banking and Trust Company of Bluefield closed its doors and was placed in the hands of a receiver. At that time the state of West Virginia was a depositor in the bank to the extent of about $85,000. After more than a year has elapsed a small portion of the amount on deposit at the time of the failure has been repaid to the State, but more than two-thirds of the amount on deposit when the bank failed remain unpaid, and it is believed that not one cent of this unpaid amount will ever be realized by the State. State Treasurer a Stockholder. State Treasurer E. L. Long was a stockholder in this bank, owning five thousand dollars worth of the stock. The actual head of the bank and a large stockholder in it was S. M. Smith, a colonel on the Governor's staff, and a very close friend of the present state administration. The last examination of this bank prior to its failure was on April 10, 1911, and it was made by S. V. Matthews. who was then state chairman of the Republican party for West Virginia. The law requires that at intervals of not more than three months the security given to secure state deposits in any bank shall be examined by the State Board of Public Works and the sufficiency of the security shall be passed upon. It was evidently the intention of the law that this examination of the security should be made frequently on account of the changing values of the bonds usually gven to secure such deposits. The Board of Public Works at the time of the bank's failure, consisted of Governor Glasscock, Auditor Darst, Treasurer Long, Superintendent of Schools Shawkey and Attorney General Conley. It is the duty of this Board to examine the security for the deposits in all banks in which the State's money is placed. Every member of this Board, with the QXception of Governor Glasscock, who is not eligible under the law to succeed himself, and Attorney General Conley, who is running for another office, is a candidate for re-election. If these candidates should be re-elected a majority of the new Board of Public Works would be the same as a majority of the present Board: therefore.

Article Text

PUBLIC MONIES UTILIZED TO PROMOTE INTERESTS OF ADMINISTRATION. OFFICIALS WHO PUT $85,000 IN BANK WHICH FAILED ARE SEEKING RE-ELECTION. A sample of the manner in which the money paid into the state treasury by the tax payers is taken care of by the State Board of Public Works is afforded in the case of the Fidelity Banking and Trust Company at Bluefield, and the loss of a large part of the State's deposits in that bank. It appears from this case that the public monies of the State have been used, with apparently litt's attempt to safeguard them, for the purpose of assisting a financial institution in which at least one member of the State administration was a stockholder and which apparently was badly in need of a.l the assistance it could get. On September 15, 1911, the Fidelity Banking and Trust Company of Bluefield closed its doors and was placed in the hands of a receiver. At that time the state of West Virginia was a depositor in th bank to the extent of about $85,000. After more than a year has elapsed a small portion of th amount on deposit at the time of the failure has been repaid to the State, but more than two-thirds of the amount on deposit when the bank failed remain unpaid, and it is believed that not one cent of this unpaid amount will ever be realized by the State. State Treasurer a Stockholder State Treasurer E. L. Long was a stockholder in this bank, owning five thousand dollars worth of the stock. The actual head of the bank and a large stockholder in it was S. M. Smith, a colonel on the Governor's staff, and a very. close friend of the present state administration. The last examination of this bank prior to its failure was on April 10, 1911, and it was made by S. V. Matthews, who was then state chairman of the Republican party for West Virginia. The law requires that at intervals of not more than three months the security given to secure state deposits in any bank shall be examined by the State Board of Public Works and the sufficiency of the security shall be passed upon. It was evidently the intention of the law that this examination of the security should be made frequently on account of the changing values of the bonds usually gven to secure such deposits. The Board of Public Works at the time of the bank's failure, consisted of Governor Glasscock, Auditor Darst, Treasurer Long, Superintendent of Schools Shawkey and Attorney General Conley. It is the duty of this Board to examine the security for the deposits in all banks in which the State's money is placed. Every member of this Board, with the exception of Governor Glasscock, who is not eligible under the law to succeed himself, and Attorney General Conley, who is running for another office, is a candidate for election. If these candidates should be re-elected a majority of the new Board of Public Works would be the same as a majority of the present Board; therefore, no better care of the State funds could reasonably be expected of the new Board than has been given by the present Board. What Could Be Expected? T.C.

Article Text

USED WITH WORTHLESS SECURITY TO HELP BOL^TER UP INSECURE BANK. PUBLIC MONIES UTILIZED TO PROMOTE INTERESTS OF ADMINISTRATION. OFFICIALS WHO PUT $85,000 IN BANK WHICH FAILED ARE SEEKING RE-ELECTION. A sample of the manner in which the money paid into the state treasury by the tax payers is taken care of by the State Board of Public Works is afforded in the case of the Fidelity Banking and Trust Company at Bluefield, and the loss of a large part of the State's deposits in that bank. It appears from this case that the public monies of the State have been used, with apparently litt'* attempt to safeguard them, for the purpose of assisting a financial institution in which at least one member of the State administration was a stockholder and which apparently was badly in need of a.l the assistance it could get. On September 15, 1911, the Fidelity Banking and Trust Company of Bluefield closed its doors and was placed in the hands of a receiver. At that time the state of West Virginia was a depositor in the bank to the extent of about $85,000. After more than a year has elapsed a small portion of th amount on deposit at the time of the failure has been repaid to the State, but more than two-thirds of the amount on deposit when the bank failed remain unpaid, and it is believed that not one cent of this unpaid amount will ever be realized by the State. State Treasurer a Stockholder. State Treasurer E. L. Long was a stockholder in this bank, owning five thousand dollars worth of the stock. The actual head of the bank and a large stockholder in it was S. M. Smith, a colonel on the Governor's staff, and a very close friend of the present state administration. The last examination of this bank prior to its failure was on April 10, 1911, and it was made by S. V. Matthews, who was then state chairman of the Republican party. for West Virginia. The law requires that at intervals of not more than three months the security given to secure state deposits in any bank shall be examined by the State Board of Public Works and the sufficiency of the security shall be passed upon. It was evidently the intention of the law that this examination of the security should be made frequently on account of the changing values of the bonds usually gven to secure such deposits. The Board of Public Works at the time of the bank's failure, consisted of Governor Glasscock, Auditor Darst, Treasurer Long, Superintendent of Schools Shawkey and Attorney General Conley. It is the duty of this Board to examine the security for the deposits in all banks in which the State's money is placed. Every

Article Text

BANKERS Of Bluefield Are Not to Be Tried until the Next Term of Court. BLUEFIELD, Nov. 13.-In criminal court at Princeton the case of the State vs. S. M. Smith former president of the Fidelity Banking and Trust Company which failed a year ago last September has again been postponed until the January term of court on account of the absence of material witnesses for the defense. Also the case against J. Lee Harne, former cashier of the bank, was postponed for similar reasons until the January term. This is the fifth time the cases have been postponed which have caused much unfavorable comment. Smith is blamed for aiding in the wreck of the bank in which hundreds of poor people lost their savings, and he is charged with embezzlement of $82,000 while Harne, the former cashier, got about $15,000 on worthless security, and then took bankruptcy. The state had $85,000 on deposit. A short time ago C.L. Williams, federal receiver, after the sale of real estate and bonds held by the bank declared a 30 per cent dívidend to depositors. Many were indicted for their connection with the failure.

Article Text

tional convention

Our present organic law was not anything to boast of when adopted. However, it has sufficed for many years. But we have long since cutgrown it. It was made for a state of 440,000 people, in round numbers. Fidelity Banking and Trust Company. In September, 1912, the Fidelity Banking and Trust Company, of Bluefield, failed. and on the 22nd of that month I approved the appointment of Christopher L. Williams as receiver of the tank, he having been appointed such receiver by samuel V. Matthews, state commissioner of banking. Criminal and Intermediate Courts. I recommend the repeal of all the laws heretofore enacted creating Criminal and Intermediate Courts with the exception of one creating the Intermediate Court of Kanawha county and the one creating the Criminal Court of McDowell county. I find that the courts in these two counties have a large amount of work to do and more possibly than the circuit courts could properly attend to, but as to these inferior courts in the other counties of the state I am fully satisfied that the work can be done by the circuit courts of these counties without entailing any unnecessary hardship upon any one. I look upon the most of these criminal and intermediate courts as unnecessary burdens to the taxpayers. Parole of Juvenile Offenders. Something ought to be done to prevent young boys from going to our jails and other prisons. Numerous times during my administration boys fifteen and sixteen years of age have been found guilty of carrying revolvers and other deadly weapons in violation of law and it is mandatory upon the justice or judge before whom they are tried to send them to jail for at least six months. I am very much in favor of what is known as our "Pistol Toting Law." but I am just as much opposed to sending boys to jail if it can possibly be avoided. Semi-Centennial Commission. The Semi-Centennial Commission appointed by me more than two years ago, and of which Hon. Henry G. Davis is chairman. 18 making preparations for the celebration of our fiftieth anniversary on the 20th of June next. The legislature of 1911 appropriated for the use of this committee $5,000 for 1911 and $5,000 for 1912. Only a small part of this money has been expended, but it is the opinion of the commission that an additional sum should be appropriated in order that the celebration may be one befitting our state. I, therefore, recommend that you appropriate an additional $15,000 to be used by the commission and believe that the aggregate of these

Article Text

State Board Stands Pat $82,000 TIED UP IN DEFUNCT F1. DELITY BANK MAY BE SAVED. The State Board of Public Works stood pat on its action to make the state a preferred creditor of the de funct Fidelity bank, of Bluefield, in spite of efforts to induce the board to order the attorney general to withdraw his proceedings in the circuit court of Mercer county and allow the state to remain a common creditor. At'a special meeting held yesterday afternoon, at which Governor Hatfield was present. Judge Saunders, of Blue. field, and others appeared and made earnest argument to induce the board to recede from the position taken by the state in the matter and abandon the proceedings. A long discussion ensued, at the close of which the board decided not to interfere with the attorney general's suit in the matter. Not all the members were present. but there was a quorum, and that was enough. General Lilly had previously sug. gested to the board of public works that the state should be a preferred creditor as to $82,000 of the state's funds that were on deposit in the Bluefield bank when it suspended. The board then authorized General Lilly to institute the proper legal pro ceedings, which he did If success. ful. the state will recover probably the full amount of its deposit.

Article Text

MANY OPINIONS Handed Down by Supreme Court, Bluefield Bank Case and Ohio County Cases Most Important. Special Dispatch to the Intelligencer. CHARLESTON, W. Va., June 30.Despite the extreme hot weather of the past week. the Supreme Court today showed that it had been busy during the hot days by handing down seventeen opinions. Some of these are long and involve vital questions. The cases of the Fidelity Banking & Trust Company of Bluefield, in which three suits were pending, the court disposed of the three suits in two opinions, and in effect holds that the bank will have to return to Scott the money he paid for stock in the bank, because the bank was insolvent when the bank sold the stock to Scott. The cases decided to-day are: Robrecht vs. Hubbard, Ohio county. Writ of error granted. Zolsman vs. Totz, from McDowell county. Decree reversed and injunction reinstated and cause remanded. Keller vs. Roetting. from Cabell county. Judgment affairmed. Smith, administrator. vs. Sunday Creek company, from Kanawha county. Reversed, verdict set aside, new trial awarded. Dunn vs. Bank, from Monroe county. Reversed and remanded. Williams vs. Burgess, from Mercer county. Reversed and remanded. State vs. Michael, from Greenbrier county. Reversed, verdict set aside and remanded. Martin VS. White, from Wetzel county. Reversed and judgment denying writ entered here. Atkinson VS. Chesapeake & Ohio Railway Co., from Logan county. Atfirmed. Lowther vs. Oil & Coal company, from Wetzel county. Reversed in part, affirmed in part, remanded. Griffith vs. Adair, from Monroe county. Affirmed. Griffith vs. Runnion, from Roane county. Reversed, verdict set aside, new trial. Abbott vs. Williams, from Boone county. Reversed and remanded. Rowan vs. Tracy, from Monroe county. Reversed and remanded. State vs. Davis, from Raleigh county. Affirmed. Scott vs. Williams, Receiver, from Mercer county. Affirmed. Morrisey et al vs. Williams, Receiver, and Williams, Receiver vs. Fidelity Banking & Trust company, et al., from Mercer county. Reversed, decrees here.

Article Text

SEVENTEEN Appeal Cases Are Passed on by the Supreme Court of Appeals of the State. (SPECIAL TO THE TELEGRAM) CHARLESTON, July 1-Despite the extreme hot weather of the last week the supreme court showed that it had been busy during the hot days by handing down seventeen opinions. Some of these are long and involve vital question. The case of the Fidelity Banking and Trust Company. of Bluefield, in which three suits were pending the court disposed of the three suits in two opinions, and in effect holds that the bank will have to return to Scott the money he paid for stock in the bank because tur bank was insolvent when it sold the stock to Scott. The cases decided are: Zolsman vs. Tots, from McDowell county. Decree reversed and injunction reistated and cause remanded. Keller vs. Roetting, from Cabell county. Judgment affirmed. Smith, administrator, vs. Sunday Creek Company, from Kanawha county. Reversed, verdict set aside and new trial awarded. Dunn vs. Bank, from Monroe county. Reversed and remanded. Williams vs. Burgess, from Mercer county. 'Reversed and remanded. State vs. Michael, from Greenbrier county. Reversed, verdict set aside and remanded. Martin vs. White, from Wetzel county. Reversed and judgment denying writ entered here. State vs. Michael, from Greenbrier county. Reversed, verdict set aside and remanded. Atkinson vs. Chesapeake and Ohio Pailway Company, from Logan county. Affirmed. Lowther vs. Oil and Coal Company, from Wetzel county. Reversed in part, affirmed in part, remanded. Griffith vs. Adair, from Monroe county. Affirmed. Griffith vs. Runion, from Roane county. Reversed, verdict set aside, new trial ordered. Abbott vs. Williams, from Boone county. Reversed and remanded. Rowan vs, Tracy, from Monroe county. Reversed and remanded. State vs. Davis, from Raleigh county. Affirmed. State vs. Williams, receiver, from Mercer county. Affirmed. Morrissey et al vs. Williams, receiver, and Williams, receiver, vs. Fldelity Banking and Trust Company et al, from Mercer county. Reversed. Decree here.

Article Text

BLAMES LONG State Treasurer Held Responsible by Casualty Company For Loss of State Funds in Defunct Bank. Special Dispatch to the Intelligencer. CHARLESTON, W. Va., Sept. 19.Sensational disclosures involving State Treasurer E. L. Long, it is said, will be made in the hearing of a suit filed in Kanawha county common pleas court by the state against the Citizen's Dollar Savings Bank of Fairmont and the Maryland Casualty Co., of Baltimore, to recover $19,000, which the state had on deposit at the time the bank went into the hands of a receiver. The casualty company was on the bank's bond to indemnify the state against loss and suit was instituted by Assistant Attorney General Frank Lively to compel it to make immediate settlement. It is said the surety company will base its defense on the grounds that it had repeatedly warned the state treasurer that the bank was in a precarious condition and warned him to withdraw the state's funds. The same warnings were given the officers of the bank. Defendant claims that in spite of its many warnings. Long would not withdraw or reduce the deposits and therefore it cannot be held responsible. This suit recalls similar litigation in which Long was involved by the failure, September 5. 1911, of the Fidelity Banking and Trust company. of Bluefield. Long had more than $90,000 of the state's money on deposit in that bank when it closed its doors and most of the amount has never been recovered The loss of this great amount of the state's money aroused strong feeling against Long when it became known he was a stockholder in the defunct institution and that the bank held $4,500 of his notes without security or endorsements Suit was instituted and judgement secured