Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-03-30

/. a DdHkIHg NFIn Ill NdsShu SbitetJ oothD-
lished year or two since from Northern
! Pennsylvania, and representing large IN
terests in the oil region, was reported in
difficulty to-day. Since the foregoing allu-
sion was written, We learn definitely of the
failure of Messrs. Culver, Perm d Co,
| bankers of this City. Their zembarrass-
} ment, we understand, arose from some
railway and other heavy undertakings. 1t
is hoped that these embarrassments will
be only temporary, and that they will soon
resume their usual business. We are in
formed that all connection of Messrs.
Culver, Penn s. Co. with the Third Ma
tional Bank of this city ceased some
| months since. H..
From the New York Tribune.
The suspension of the house of Culver,
Penn & Co, Nos. IS and 2l Nassau street
is announced The connections of the
house are wildly extended, and this sus-
pension will probably be followed by
Others In view CT the rapid fall of gold
and the certainty that it has not done fall
ing the only matter of surprise is that
7 commercial credits are so well sustained.
[From the New York Herald
At late hour yesterday afternoon,
report, which was previously well authen-
tieated, was current to the effect that the
well known financial house of Culver &
Penn, of Nos. l9 and 2I Nassau street,
Lad suspended payment. The liabilities,
though large, are reported toSe more than
counterbalanced by the assets
We find the following in our oil region
exchanges.
[From the Ti,usville Herald, March 2sthl
| A considerable local sensation was oeca-
stoned last evening by the report that the
well known banking house of Culver,
Penn & Co, of New York, had suspended
payment. Upon an investigation of the
rumor, we aseertsined that private tele-
graphic dispatch had been received from
Mr. Culver to the effect above stated.
It vas quite natural that some excite
ment should ensue upon the confirmation
of the report and inquiries were every
where made as to what degree the Titus
vile banks would be affected. Mr., Culver
was largely interested in the banking
business throughout the country, but not
especially so in this city. The Petroleum
| Bank, we understand, is the only institu-
ton affected by the failure here. Mr..
| Culver was a small stockholdsr in the
! First National Bank, but the latter had
operdrawn its account with Culver, Penn
& Co., and is consequently on a perfectly
sound and reliable basis. Its resources
are ample, and all demands from deposit
tors can be promptly discharged at the
counter. lrs szllt .s7s Hul
The Second National Bank had no busi-
ness connection with Culver, Penn & Co.
They had no stock in that institution,
which is probably the only bank in the
oil region outside of Pithole City and
Plumer entirely Independent of the firm.
The banks in which the New York
house are commonly reported to be inter-
ested, and which, if so, are most likely to
be injuriously affected by the failure, are
as follows: sl -s..s
Petroleum Bank, Titusville; Nenango
County Bank, Franklin; First National
Bank, Cory; Bank of Lawrence County,
Newcastle; Crawford County Bank,
Meadville; Oil City Bank, Oil City; First
National Bank, Plumer A. ID. Cotton &
Co, Petroleum Center. l erf-
There wereo other banks in various parts
of the country-one at Bucyrus, Ohio,
one or more in Indiana--in short, total
of thirteen, all of which, we believe, made
tkeir deposits with Culver, Penn & Co.,
| New York. At the time of the failure of
Morris Ketchum & Co., New York, Gull
yer, Penn & Co. succeeded to the distinc-
tion of being the heaviest banking firm in
the United States, and were regarded as
the soun -est.
In what degree the issues of the above
banks will be affected, it is impossible to
say All their currency cannot perman-
emily depreciate, for they are nearly all
National Banks, and hence secured by the
deposit of bonds in the United States
Treasury. That their depositors must
suffer is inevitable, but it is satisfaction
10 know that the First ard Second Ma
tional of Titusville are entirely unaffected
by the crash.
We sincerely regret the disaster, not
alone on account of Mr.. Culver, who has |
been one of the most energetic, public
spirited and successful business men of
the oil region, but for the temporary COM
mercial arrangement which must natural |
ly ensue in the oil producing region. |
There is, however, no real cause for dis |
trust and alarm in this section. The de- |
posits are large, and are scattered all over
the country. --
As regards the condition of the First |
National Bank here, which rumor has |
classed with the "Culver Banks" we are |
authorized to say that Mr.. Culver owns |
but very small amount of its stock; that |
the bank had no funds in the hands of |
| Culver, Penn q Co., and that all drafts |
made by this bank upon that firm, have |
been provided for at another New York |
institution and will be promptly paid on |
presentation; and finally, that all deposi- |
tors can have their money on call
The Herald attributes the failure to the |
Reno scheme, and adds:
Mr.. Culver's failure will be nowhere |
more sincerely deplored than in Titus
ville where he had many personal friends |
and admirers, and had contributed SO lib
orally of his energy and his means to the
/ development and prosperity of the town. |
| He established the first bank of issue in |
TitusVille--the Petroleum Bank-which |
WAS first located opposite the United States |
h sel on Spring street. in the spring of
1901. He was elected TO Congress from
/ this district in 1864, and took his seat in
| December last, but his immense business
engagements have precluded a regular at
| tendance. He is the youngest member of
that body, and one of the ablest. No
man who has ever acquired wealth has
| excited less envy, and mas devoted it to
more benevolent objects, or enjoys for his
social and personal qualities greater es-
teen in the community. A year since his
scheme would have proved practicable
and remunerative Its failure is due as
much to Che general prostration of busi-
ness and the depressioh,o of oil inte-estsas to
the intrinsic difficulties of the undertak-
ling. The public confdencein in his person
al integrity Is unimpaired. He viii prob
ably be able to make satisfactory adjust
ment of his affairs, and bis great business
talents and indomitable perseverance will
epeble him 10 regsiH a commanding posi-
ton In the commercial world -
i The Herald says the excursion through
the oil regions, planned and carried out
/ bv Mr.. Culver in the interest of Reno,
cost s2ssoBe. ~ ai"t fsN
IFrom the MeadElle RepebHfan, March 2sth
The community was startled yesterday
BY the report of the failure Of the BANK
4 ing House of Culver, Penn s. Co, Of New
York. Dispatches to that effect were re-
ceiyed by private parties here, and are
confirmed BY the report Of the Associated
Press. At present We are entirely With
cut particulars. The news created pre-
found sensation in all circles, and was re-