George Alexander & Company (Paris, KY)

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BANK CLOSED, SHORT $210,000. Kentucky Club Has to Give Up Its Ball Because of Lost Funds. LEXINGTON, Ky., May 20.-The bank of George Alexander & Co. at Paris was closed to-day by orders of the State Banking Department. There is a shortage of $210,000 in the bank's accounts. George Alexander, the president, declares that the shortage is due to bad loans. A special commissioner was put in charge of the bank's affairs this afternoon and to-night Alexander assigned his individual property. worth $100,000, to help make up the loss. At the last statement, made in February, the bank had deposits of $340,000. The capital stock was $45,000 and there was a surplus of $70,000. The Bourbon Cotillon Club was to give its annual spring German to-morrow night, but all its funds went with the other losses at the bank, so it recalled the invitations.

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ALEXANDER & CO

BANK IS CLOSED BY COMMISSIONER State Officials Close Doors After Making An Investigation of Affairs RECEIVER TAKES FULL CHARGE Bad Loans Is Said to Have Been Cause of Failure of Institution The bank of George Alexander & Co., of this city has been closed by order of State Banking Commissioner Thomas J. Smith and the affairs have been placed in the hands of the State Banking Department for liquidation. Mr. Buckner Woodford, Sr., has been appointed special commissioner to wind up the bank's affairs. This action was taken by a majority of the Board of Directors of the bank late Tuesday afternoon, at which meeting the report was placed before the board, after the examination, which had just been completed by State Bank Examiner John B. Chenault. Thomas J. Smith, State Banking Commissioner attended the meeting, as did Deputy Commissioner Rankin R. Revill and Examiner Chenault. None of the officials while here would discuss the conditions leading to the closing of the bank. The directors who made the order closing the bank were Harry B. Clay, E. P. Claybrook, J. W. Bacon, J. M. Brennan and R. B. Hutcheraft. The bank at the time of its last examination, had a capital of $40,000 and showed a surplus of $22,500 with deposits of $204,343.04, with loans and other securities showed the bank to be fully solvent. The last public statement was in January Bankers' Encyclopedia, which showed: Capital, $40,000; surplus, $21,000; deposits, $275,000; cash on hand, $41,000; loans, bonds and other securities, $342,000. The extent of the loss to the depositors and stockholders will be determined after the real value of the banks' assets are determined.

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BANK SUSPENDS [BY LEASED WIRE] PARIS, Ky., May 22.-The private banking house of George Alexander and company has closed its doors. It was said today the losses as a result of the bannk's failure would be close to $200,000.

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PARIS BANK PRESIDENT HELD On Charge of Embezzlement, Following Closing of Its Doors As a climax to the closing of the doors of the bank of George Alexander & Co., of Paris, last Tuesuay evening George W. Alexander, president of the institution, was arrested Friday night upon warrants sworn out by State J. Banking Commissioner Thomas Smith and placed under a bond of $50,500. Commissioner Smith came to Paris Saturday from Frankfort, accontpanied by State Examiner R. R. Revill, and after a conference with Examiner john Chenault and the directors of the bank, went before County Judge C. A. McMillian in the county court and caused to be issued three warrants against Alexander, charging him with embezzlement, making false reports to the State Banking Commission and making false entries upon the books of the institution. The warrants were placed in the hands of Sheriff W. T. Talbot for service and, accompanied by Deputies and McClintock, the Sheriff went to the home of Mr. Alexander in Pleasant street and placed him under arrest. The bond for embezzlement and making false reports to the Banking Commission was placed at $25,000 each and that of making false entries, which is a misdemeanor, at $500. The bond was signed by Charlton Clay, A. B. Hancock, the Samuel Clay and Oscar Taylor, latter of New York. County Judge McMillin approved the bond that day, and Mr. Alexander was released from custody. The bank of George Alexander & Co., was closed by Commissioner Smith following a report by Bank Examiner Chenault that the bank was insolvent. The cause of the failure was given out as due to bad loans, but it has developed that, acocrding to the examiners, the entire surplus and deposits were wiped out by the alleged peculations of Mr. Alexander, who, according to the State officials, had an obligation tha' will reach a quarter of a million do: lars, while the obligation of the bank to the depositors will reach about $200, 000 A large number of business men in Faris will suffer from the crash and the savings of hundreds were wiped out when the bank failed. ( Examiner Smith returned to Frank fort tonight after appointing John : 1 Williams, of Paris, legal adviser OF the State at the trial of Alexander, the late of which will be set later by Judge McMillan Directors of the bank held a meeting n Fridav with an attorney and sent the attorney to consult with Mr. Alexander J about his making arrangements to meet r the bank's obligations. It is said the situation was presented to him in the P most serious phase. This meeting. however, had nothing to do with the banking commissioner's action, and he was not concerned with it. The condition of the institution 18 much worse than at first supposed by the public. It is understood that facts were brought out which indicated that the solvency of the bank depended upon the solvency of Mr. Alexander. When S the bank was found to be insolvent $50.W 000 of his own assets were wiped out, bl as he held 200 shares of the stock. in block of which recently sold for $250 the share. They are, of course, worth nothing now. Aside from his home it is not known what asseuts Mr. Alexander has left of the considerable fortune which once belonged to him. His has pl bilities, it is said, may run over $220K 000 The deposits in the bank amounted to about $285,000 and the bank owed something like $88,000, on paper discounted with other banks. Half its stock liable for double assessment is o owed by Mr. Alexander. Mr. Alexan bi der lost a large amount, estimated at C $50,000, in promoting a patent known as t the O'Neil Hemp Brake Co. How much fi Mr. Alexander is indebted to the bank W directly and indirectly has never been ta given, but it is alleged that a number of people hold the bank's obligation or signed by Mr. Alexander as president at and that these do not appear in the ti bank's assets. failure.of. Alexander & bi

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made to individuals without proper security. The directors are denying that they gave any such sanction and that they had any knowledge of many of Alexander's largest transactions. The stock of the bank was held to the extent of 51 per cent. by Alexander and the members of his family. He personally had 187 of the 400 shares, E. P. Claybrook was the next largest stockholder. He had 27 shares. Mrs. Harry B. Clay, as trustee for her sister, Mrs. Frank Clay, had 19 shares and Harry B. Clay had 4 shares. The holdings of other directors were in 'blocks of 5 to 10 shares, while the remainder of the stock was held in 1, 2 and 3 shares by small investors. Under the law the stockholders will be required to put up $100 a share in addition to its original cost to them, which in the greatest number of instances was $250 a share. Depositors who have been very hopeful of securing at least 50 cents on the dollar have about given up, as it has been found the condition of the bank is much worse than first anticipated. There has been some talk of forcing Alexander into involuntary bankruptcy, with a view of getting deeper into the situation. Mr. Alexander several days ago made an assignment to Samuel Clay, his nephew. Mr. Clay appeared before County Judge C. A. McMillan yesterday and waived his right to qualify as the assignee. There has been no mention of any one to take charge of the assigned estate. A list of the liabilities and assets of the individual estate of George Alexander were filed Saturday with County Clerk Pearce Paton. The assets were: House and lot on Pleasant street, $20,000. One-third interest in warehouse on Ruckerville pike, $1,500. Five hundred shares Northern Life Insurance Co., $5,000. Fifteen shares Paris Grand Opera House, Company, $100. One share L. M. Rubber Company, $100. Four shares Bourbon Fair Association, $50. Five shares Chicago and New York Electric Air Line, $125. One hundred shares Travelers' Insurance Machine Co., $300. Eleven shares Fifth-Third National Bank of Cincinnati, $2,156. Trustees' certificate of same, $250. Two shares Bourbon Tobacco Warehouse Company, $250. Twenty shares Central Land Company, $200. One hundred and eighty-nine shares Power Grocery Company of Paris, $37,800. One hundred and eighty-four shares George Alexander Bank, value unknown. Automobile of Mrs. Alexander, surrendered to estate, $4,000. Horse and carriage, $250. One-third interest in O'Neal Hemp Breaking Machine Company, value unknown. Household and kitchen furniture, and other personalities, $3,500. Cash on deposit in bank, $3,000. Total, $78,836. The liabilities are as follows: S. E. Bedford, agent, secured by forty-five shares bank stock, $10,000. Fifth-Third National Bank of Cincinnati, 100 shares of bank stock, $2,500. Mrs. H. O. Jones, eight shares bank stock, $2,000. Mrs. A. P, Alls, of Richmond, $300. John C. Current, $3,000. E. H. Owings, $1,000. George Alexander & Company Bank $4,000. Total $25,500. Alexander is an endorser for the Power Grocery Company to the amount of $30,000. In addition to collateral pledges to secure these notes, 164 shares of the Power Grocery Company stock are collateral on accommodation notes to the bank, something about $36,000.

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CLOSING OF ALEXANDER BANK GREAT SURPRISE The closing of the banking house of George Alexander & Company, by the State Banking Commissioner, Thomas J. Smith, on Tuesday of last week, was a great surprise to the entire state. Mr. George Alexander, the President of the bank and owner of a majority of its stock, has been engaged in the banking business since his early manhood, having been for many years connected with the Paris branch of the Old Northern Bank, of which his father, the late Charlton Alexander, was cashier. Upon the liquidation of that bank some fifteen years ago, Mr. George Alexander opened a private bank under the name of George Alexander & Company, at the location of the Old Northern Bank, and afterwards, when the laws of the State were so changed as to require all banks to incorporate under the State Banking Laws, he. incorporated the bank under the same name increasing the capital stock to $40,000. The bank has had a large patronage and has paid semi-annual dividends of eight per cent. to sixteen per cent. annually each year since its incorporation. At its last statement at the close of business February 2, 1914, the bank showed deposits of $303,745.17 and a surplus of $22,500, and loans and discounts amounting to $379,865.32. No statement has been given out by the commissioners in charge of the bank, but there is common street rumor to the effect that the suspension was due to bad loans and that the loss will amount to about $125,000. Mr. Alexander on Wednesday made a general assignment of all his property for the benefit of his creditors, naming his nephew, Mr. Sam Clay, as assignee. Probably no banker in Kentucky has a wider circle of friends and acquaintances than George Alexander and the sympathy of his home town in the time of trouble is the best assurance of the high esteem in which he is held.

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Commissioners Sue Louisville and Cincinnati Banks For Notes. ASSIGNEE FILES HIS STATEMENT. Depositors Hold Second Meeting and Perfect Plans For Action. Thomas J. Smith, of Frankfort, State Banking Commissioner, Buckner Woodford, of Paris, Special and Deputy Banking Commissioner, who are winding up the affairs of the bank of George Alexander & Company, State Bank, of Paris, filed suit in the Jefferson Circuit Court Thursday against the American National Bank, of Louisville, to secure the return of notes aggregating $35,211.17, held as collateral by the defendant to secure a loan of $33,000 made to the defunct Paris bank July 1, 1907. The plaintiffs ask that if the notes can not be had, that they be given judgment for their value and damages, no sum being specified. It is alleged that at the time the Alexander bank suspended it had on deposit with the American National Bank $10,837.45, which the plaintiffs claim should be in their hands. It is claimed a check for the amount was drawn in favor of J. J. Williams, attorney for the plaintiffs, but that payment at the American National Bank was refused. It is also alleged that Attorney Williams made demand on the bank for the return of the notes, or the proceeds that might have been realized on any of them, and that this demand also was refused. The plaintiffs claim that the highest amount of indebtedness or liability which George Alexander & Co., under its articles of incorporation might incur, is $10,000, and that it was not empowered to become indebted to any person or corporation in excess of that amount. It is alleged that at the time the loan was made by the American National Bank the Alexander bank was already involved in a sum in excess of that allowed by law. It is claimed that, under the conditions, the defendant bank had no authority to execute the loan to the Alexander bank, and that the notes are void. Plaintiffs claim it is necessary to secure the assets held by the American National Bank in order to satisfy all creditors of the Paris institution. The bank of George Alexander & Co., of Paris, was placed in the hands of State Banking Commissioner Thos. J. Smith, May 19, 1914, and since then it has been under the personal supervision of Buckner Woodford, appointed by Commissioner Smith to wind up its affairs, and Judge John M. Lassing, of Newport, and J. J. Williams, of Paris, attorneys for the Deputy Commissioner, and the depositors The former president is now under more than thirty indictments and is at liberty on bond of $50,500 awaiting trial at the next term of the Bourbon Circuit Court at Paris in the fall. Alleging that the George Alexander & Company Bank, of Paris, and its president, George Alexander, had no authority, under the bank's charter to borrow $35,000 from the Fifth Third National Bank, of Cincinnati and give as collateral promissory notes aggregating $56,000, suit was instituted in the United States Dis trict Court by Thomas J. Smith Banking Commissioner, and Buckne Woodford, Special Deputy. Banking Commissioner of Kentucky, agains the Fifth-Third National Bank, 0 Cincinnati, to recover the collateral 0 its money value. Judgment for $56 000 is asked. In the petition it is alleged that 0 January 22, 1914, the Alexander ban borrowed $10,000 from the Fifth-Thir of Cincinnati, giving its note for $10 000, payable in four months: that 0 March 2, 1914, it borrowed $15,00 more on a note payable in fou months and that on May 5, it execu ed another note for $10,000, payabl in eixty days. Each of these note the plaintiffs claim, was signed t the bank, "per George Alexande President," and the notes were assig ed the Fifth-Third as security for tl $35,000 borrowed. A. second meeting of the deposito of the George Alexander & Compa Bank, was held Friday afternoon the Catholic Club room on Hi Street. The depositors present we addressed by Judge John M. Lassin of Covington, and Attorney John

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SUIT TO BE BROUGHT AGAINST BANK STOCKHOLDERS.

From authoritive sources it has been learned that a suit will be filed in the Bourbon Circuit Court in the office of the Circuit Clerk in the next few days by State Banking Commissioner Thomas Smith, against the stockholders of the defunct George Alexander & Co. banking house to require them to pay to Buckner Woodford, Receiver for the banking house, the amount of legal liability.

On Friday last a number of the impatient depositors of the bank brought suit against the banking commissioner through Attorneys Harmon Stitt and Talbott & Whitley to require him to declare an immediate partial dividend of the funds which he has already received and is holding for the benefit of the depositors.

The plaintiffs allege that the banking commissioner has had in hand for several months a large amount of cash with which he could pay a substantial dividend to the depositors and creditors whose claims are not disputed after setting apart enough to pay expenses and a like dividend on all disputed claims.

The plaintiffs allege that because of the closing of the Alexander bank money matters are close and that it is a great inconvenience and loss to the depositors, whose claims are not in dispute, for their part of the cash on hand to be withheld from them, and the purpose of the suit is to require an immediate distribution of the cash among the depositors.

The stokholders who are contesting the assessment have resisted it upon the ground that the collapse of the bank was caused by the appearance of a arge number of notes given by Mr. Alexander, which, while they purported to be the obligations of the bank, and that the bank should not be required to stand responsible for them, and that if this contention is sustained the bank will stil be solvent.

The amount or money to be realized by the depositors should the suit or the banking commissioner prove successful, may not be large, as the greater part of the stock was owned by Alexander himself, and he has already assigned all of his property to the receiver of the bank.

Stockholders in banks are liable under the law for double the amount of their capital stock in the event of a bank failure, which would mean an assessment of $100 upon each share of the stock.

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Broad Powers Given.

"The banking commissioner is vested with power to sell and convey the real estate of a bank in his hands for liquidation, as well as its personal property, without first obtaining the consent or direction of the court, and he may make such sale either publicly or privately and upon such terms as he believes to be for the best interests of all concerned," said the court of appeals in an opinion by Judge Hannah reversing the Bourbon circuit court in ex parte proceedings brought by State Banking Commissioner Thomas J. Smith in regard to the sale of real estate belonging to George Alexander & Co., State bank, of Paris. The court went on to say that interested parties had the right to have the act of the commissioner reviewed in court just as a receiver, but that the law invests him with broad powers in order to liquidate the bank expeditiously and for the advantage of depositors and creditors.

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MR. R. B. HUTCHCRAFT ASSIGNS TO MR. JAS. MCCLURE.

R. B. Hutchcraft, for many years one of the most prominent business men of Paris, on Friday executed and lodged with County Clerk Pearce Paton for record a deed of assignment to James McClure, cashier of the First National Bank of Paris, conveying all his property of every kind to Mr. McClure in trust to be by him sold and converted into money and the proceeds used to pay Mr. Hutchcraft's debts. Suits aggregating about $80,000 had been filed against Mr. Hutchcraft during the last week, and the assignment was made to protect his creditors and place all on an equal footing. Mr. McClure's acceptance was filed with the deed of assignment.

Mr. Hutchcraft for many years has been looked upon as a safe and conservative business man. He has always enjoyed the confidence of the community, did an extensive business and accumulated a large property. He dealt largely in wheat, corn and bluegrass seed and in addition was a farmer on a large scale, handled extensively cattle, hogs and other live stock, and was one of the largest tobacco growers in the county. His holdings of real estate, besides city property in Paris, worth some $40,000 to $45,000, include some 800 acres of Bourbon County land.

Mr. Hutchcraft was a director in the failed bank of George Alekander & Company and was one of the borrowers from that bank, and the failure of the bank helped to precipitate the financial difficulties which led to his assignment.

Mr. McClure's bond was fixed at $250,000 by Judge McMillan.

The schedule of liabilities and assets, which was filed Friday is as follows:

BOURBON COUNTY COURT.

SCHEDULES.

In the matter of the assigned estate of R. B. Hutchcraft:

ASSETS: 915 acres of Bluegrass land as follows: 400 acres near Muir; 340 acres near Leesburg; 118 acres near Kiserton; Balance in small tracts around Paris $100,000 Home, Houston avenue and Second street 10,000 Nine rent houses in Paris 9,000 Highland warehouse, Pleasant street 2,000 Overbey Tobacco Barn 2,000 F. & C. tobacco barn, Main street 3,000 Old Fair Grounds tobacco barn 1,500 One-third interest in tobacco warehouse, Clintonville pike 1,500 Cattle barn, silo, etc., Peacock pike 4,000 One-half interest in grass seed cleaning plant 7,000 Shawhan Station corn cribs 700 Vacant lots, Houston avenue 3,700 Vacant lots, Henry Addition 1,000 Vacant lots in East Paris 4,000 Vacant lots on Sixteenth street 2,500 Vacant lots. Twentieth street 1,300 Vacant lots on Clifton avenue 350 Vacant lots on Maysville street 300 Vacant lots, Rassenfoss Addition 250 Vacant lots on Third street 1,000 Farm tools and machinery 2,000 Horses and mules 3,000 Cattle, sheep and hogs 2,000 Interest in 135 acres of tobacco 7,500 Due from tobacco tenants, secured by landlord's lien on crops 2,000 Sundry crops (245 acres) 2,450 Grain and seeds 22,000 Grain and seed bags 4,200 Notes and book accounts 10,000 Wagons, buggies, harness and gear 1,000 Marmon automobile 1,000 10 shares First National Bank stock 2,500 3 shares Bourbon Tobacco Warehouse Company stock 30 Bourbon Fair Association stock 15 Cash in bank 40 Total $215,600

LIABILITIES: American National Bank, Louisville $ 4,000 Second National Bank, Lexington 10,000 Security Trust Company, Lexington 10,000 B. Weil, Lexington 12,000 S. Weil, Lexington 10,000 Mrs. Martha S. Withers, Lexington 3,000 John H. Roseberry, Paris 6,000 Wm. B. Allen, Paris 6,000 Agricultural Bank, Paris 4,600 Blake estate, Paris 3,000

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DIVIDEND OF 25 PER CENT READY FOR DEPOSITORS. A complete and exhaustive report, in which every phase of the affairs of the George Alexander & Co. Bank is fully. covered, was filed by Deputy Banking Commissioner Buckner Woodford in Circuit Court yesterday. After submitting a statement of the condition of the bank on May 20, 1914, the commissioner files a statement showing condition of the institution on Nov. 7, and shows by a comparison of the two how affairs have been managed. Under the head of Resources, one item shows the sum of $77,183.40 credited to "George Alexander's misappropriation account.' onhand on Nov. 7, 1914 is shown to be $118,908.52. Of overdrafts amounting to $28,837.84, Commissioner Woodford has collected $19,171.51, leaving a balance of $9,666.33, of which $1,613.49 is estimated as being collectible. The report gives the total expenses of $3,149.27 for liquidation, including expert accountant services, attorney fees, etc., from May 20 to Nov. 7. Total bills of exchangej are listed ammounting to $47,862.75, of which $68,448.47 is worthless paper and $8,043.37 doubtful paper, leaving "good" paper amounting to $61,370.91. The report states that Mr. N. Kriener holds what he calls the bank's notes for $37,500, and claims that the bank by its President, Geo. Alexander, assigned and delivered to him a number of bills receivable of the bank of Geo. Alexander & Co. State Bank amounting to $40,300, and has brought suit against the Commissioner to recover all of said collateral. The Commissioner states that he has been advised by counsel that the directors of the bank are liable to him representing the depositors and creditors, in a sum of money sufficient, he hopes, with other assets available to pay the depositors and creditors of the bank in full; that there is now to his credit in various banks of the city of Paris sums of money amounting to $118,908.52; the total out standing indebtedness of the bank including rejected or contested claims, is $406,151.81. Commissioner Woodford makes the cheering statement that he is now able to distribute 25 per cent to all the creditors of the bank, whose claims he recognizes, and he now asks to be allowed to distribute this 25 per cent. to them. Mr. Woodford's report is as complete as intelligent systematic work could make it, and reflects great credit upon him for the thorough and painstaking manner in which he has endeavored to get at the real affairs of the bank, to bring order out of chaos and to safeguard at once the best interests of the depositors and creditors and all others vitally concerned.

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SUPPLEMENTAL REPORT FILED IN ALEXANDER CASE

State Banking Commissioner Thos. J. Smith, of Frankfort, through his attorney, Mr. John J. Williams, of this city, filed in the Bourbon Circuit Court on Wednesday afternoon a supplemental report giving a full list of the depositors in the George Alexander & Co. State Bank, which is in his hands, together with the amount of each depositor's account. The report indicates that the depositors will receive 25 per cent. of their deposit some time within the next three weeks. The list of claims recognized by the Commissioner comprises 460 names, and a further list of claims in appended which have not been proven by their owners, containing 210 names, making at the time the bank was taken over by the Commissioner 670 depositors who had money in the Alexander Bank. There were 440 accounts in which the depositors had $100 or more; ninety-flve accounts which showed a balance of over $500; sixty-one aicounts of $1,000 and over; ten accounts of more than $5,000; three accounts over $15,000, and two exceeding $20,000. The largest deposit was $29,392.09, and the smallest balance of one cent. The unproven claims run from one cent to $100. Next to the $100 claim the largest claim to remain unproven is that of Pattie R. Bedford for $73.52. Another interesting account is that of the Children's Missionary Board, which has a balance remaining to its credit of $20.43.

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DEPOSITORS MAY GET 25 PER CENT Through John J. Williams, attorney, State Banking Commissioner Smith filed in the Circuit Court a supplemental report giving a full list of the depositors in the George Alexander & Co., State Bank, Paris, Ky., which is in his hands, together with the amount of each depositor's account. The report indicates that the depositors will receive 25 per cent. of their deposit some time within the next three weeks. The list of claims recognized by the Commissioner comprises 460 names, and a further list of claims is appended which have not been proven by their owners containing 210 names, making at the time the bank was taken over by the Commissioner 670 depositors who had money in the Alexander bank. There were 440 accounts in which depositors had $100 or more; ninetyfive accounts which showed a balance of over $500; sixty-one accounts of $1,000 and more; ten accounts of more than $5,000; three over $15,000, and two exceeding $20,000. The largest deposit was $29,392.09, and the smallest was a balance of 1 cent. The unproven claims run from 1 cent to $100. Next to the $100 claim the largest claim to remain unproven is that of Pattie R. Bedford for $73.52. Another interesting account is that of the Children's Missionary Board, a balance of $20.43 remaining to its credit.

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The third day of the trial of A Alezander began Wednesday morni at 8:30 o'clock and even at that ear hour, the court room was filled wi spectators, many women being in tendance, and the crowd increas during the day until there was n even standing room. The first witness called to the sta was Pearce Paton, the Clerk of t Bourbon County Court, who testifi as to the assignees who had been a pointed by the court to take char of the individual property, real a personal of George Alexander. T first one named, Samuel Clay, decli ed to qualify, and afterward W. Hinton consented to take the tru and qualified in the office of the cler Mr. Hinton, the assignee, then to the stand, and stated that the pub sale of the assigned property result in realizing $26,000. He was questioned on certain clair which were filed against Alexande personal estate, amounting to $21,00 He reported that he still had on ha some shares in the Citizens' Nation Life Insurance Company, and stock 2. few other concerns of not mu value. Mr. Hinton was also question as to Mr. Alexander's interest in t O'Neil hemp machine, but that w not listed with the assignee. The next witness was Buckn Woodford, Special Deputy Banki Commissioner, who has been in char of the George Alexander & Compa Bank since it was closed last Ma Mr. Woodford stated that when took charge of affairs h efound ca on hand amounting to $126,000, $4 000 in good paper and $40,000 ' other paper," and real estate valu at $7,000; a total of $213,000. Al $301,000 of individual deposits. Wh asked if by resolving every dollar a piece of litigation on hand in favor the bank and realizing on all asse how much the bank would be able pay its creditors, he replied 75 I cent. But he did not think it possil to pay in full. Mr. Woodford at request of the la yers for the defense prepared a 1 01 Galms, names and amounts maki up claims listed to the sum of $11 000; also a list of notes and outstar ing obligations amounting to abo $270,000 and a list of the doubtful bad names and amounts. Mr. Wo ford stated that the customary rate interest on deposits in the Paris ban was 3 per cent. not 5. Paul C. Snyder, accountant, was quested by the attorneys for the e fense to prepare a copy of the asse and liabilities of the bank. The f ures presented by Mr. Snyder in ] further examination by the defen were the same as presented in 1 testimony the previous day. A Woodford, recalled and asked abo the expenses of the settlement, stat that about $3,300 had already be used, and $15,000 or $20,000 was S aside for the purpose. He said tl $118,000 had been collected recent and a dividend of 25 per cent. h been paid to the depositors. LONG CONSULTATION HELD A long intermission was taken this stage of the trial for consul tion, after which E. M. Dickson, torney for N. Kreiner, was recalled regard to notes that had been taken as collateral for notes of Mr. Krier amounting to $37.000. for which he

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MORROW PARDONS PARIS BANK WRECKER Governor Says He'll Make Public His Reasons For Freeing George Alexander Frankfort, April 5.-Prior to issuing a pardon for George Alexander, convicted of wrecking the Alexander Bank of Paris, Governor Morrow today announced he would make public his reasons for not freeing Alexander. The failure of the bank in 1914 created a sensation. Miss Kate Alexander, daughter of the former banker, has labored indefatigably to obtain a pardon for her father. The statement was coupled with the Governor's definite announcement that he would issue the pardon. Alexander is said to be in bad health. He entered the prison a robust person and is now a physical wreck. The Governor's reasons for issuing the pardon are embodied in a statement which he dictated to a stenographer during the forenoon. Alexander has served approximately five years of a practically indefinite sentence. Those who know Alexander say that few of his most intimate friends would recognize him to-day. When he entered the penitentiary he was a man of distinguished bearing, and apparently in perfect health. He now is said to be literally a mere shadow of his former self. His health is reported to have been shattered, and it is said that Governor Morrow has consented to pardon him largely for this reason. Failure of the Alexander State Bank at Paris caused one of the biggest financial sensations in the history of Kentucky. Hundreds of depositors, a great many of them persons of limited means, lost all their savings in the crash. Alexander is nearly 70 years old. Until the closing of his banking institution, known as George Aelxander & Co., May 19, 1914, Alexander was considered to be among the most prominent and respected citizens of Central Kentucky. He and his family were social favorites. They belonged to a distinguished family and lived and of Alexander was to expensively, his bank until the regarded failure be a man of immense wealth. As the firm was not a national bank but was in business under a state charter, the arrest and subsequent were about under prosecution brought and conviction the jurdisdiction of State Courts. He was sentenced to and since has been confined in the Kentueky State Prison. The failure, the prosecution and the conviction attracted widespread interest, not only because of the prominence of the Alexanders, but because of the extensive loss to depositors of ranks and conditions of life. A veteran sadder was reported to have lent to the banker his life savings of almost $10,000, colle teral for which was missing when the examiners took charge of the bank after the failure. Losses of from $15,000 to $20,000 were men nd women reported by who had considered withdrawing and reinvesting their funds but who had been prevailed upon by Alexander to leave them in the keeping of his company. aside The pathetic element of the case from the losses suffered by the depositors, was said to be the sorrow and visited of humiliation the defaulting banker. upon the Relatives family sought to sustain and comfort him, both before and after the trial, refusto believe that was any intent or to wrongful ing desire there defraud, and contending that the bank failure was due to a faulty system of keeping accounts.