The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-07-29
NATIONAL BANK TROUBLES.
Reported Collapse Of the UnadIIIa Ma
LiOnhl Bnnlk-Lin hilitIea 92OO.OO0.


National Bank at Unadilla, in Otsego county,
New York, had made a bad break, with liza
biities said to amount to $1,000
The bank was chartered about twelve years
ago, under the old Safety Fund law of this
State, and about two years since it took its
national character, with a capital of Sl50,0O0
and power to Increase to $3.50, 900.
Its officers were Arnold b. Watson, President,
and Clark j. Hayes, Cashier. The President, it
is sad owned 100000 of the capital, and the
balance was in the hands of the Cashier and
some relatives in Albany.
1t is reported that the assets of the bank will
not 60 far towards meeting its liabilities.
Fast living on the part of somebody connected
with the institution, together with wild and un-
profitable speculations in produce and mining
stocks, contributed to its downfall.
Its redemption agency is said to be the house
OF Watson Co., leather dealers, OF Albany
". 7. Herald
TROY N. Y, July 27.-It appears upon trust
worthy information that the management of the
Unadllla National BaRk has been OF an exceed
ingly reckless character. The managers of the
bank own large majority of the stock, and 1t
understood that they have lost 1t IN eXtraYagant
mining and produce speculations. In doing
this they have not only used up the capital of
the bank, but have also taken the special depo-
sits, at very heavy rate OF interest from all
the old farmers and other conhding people in
the neighborhOod. On these special deposits
they have paid seven per cent interest, while
the usual interest upon such deposits ranges not
to exceed five per cent, and ottentimes as low
as four per cent
also learn that many of the merchants in
and around that neighborhood have been send
ing certifL ates of deposit on this bank to pay
their debts in New York, which, having been
returned to the bank Tor New York funds, have
remained in the hands of the Unadilla Bank
unpaid. 1t IS probable that the holders of these
certificates will be compelled to await the
action of the receiver, to be appointed, before
they can ascertain what proportion OF the
assets they will receive as dividends.
For some time the authorities of this bank
have struggled to get back under the old State
system, TO the end that they might administer
their affairs much more economically and with
less popular suspicion. Of course the innocent
people of that section of the country are in the
highest state OF alarm and Indignation at the
reckless acts of the bank officers.
Corresponding banks throughout the country,
| which have sent the Unadilla items for collec-
tion, have in no instance received resp Inse for
| some time past. Hence it has been found neces-
sary to send special agents TO Unadllla to ascer-
| tain the true status OF affairs 1t appears that
| the Government Examining Agent some time
since paid the bank an official visit to ascertain
| its standing, and to learn ii it was COM
| plying with the National Banking law. 1t is
| understood that the bank was then very ded-
cient in the number OF legal,tenders which the
| law required 1T TO have on hand. This shows
| full well that the law can be violated at any
| time by all national bank officers. In the case
| of this failure, as in many other similar IN
| stances, it has been aScertaned that the legal
| tender security to be kept in the bank for the
| benefit and safety of depositors has always been
| found missing when the receivers are appointed.
The assets of the bank are very light compared
| with the liabilities.
Defunct Newton (AIass.) National Bank.
BOsToN, Mass, July 27-The newly appointed
| receiver of the Newton National Bank lately
deiunct, has collected the liabilities and for
warded the amount to Washington. The dis
| count notes amount to about $4,000, OF which
nearly $50, 900 has beea collected. The balance
$4,000, is considered good and $4,000 doubt
tul or bad, including in the latter category S2500
OF forged paper of William II. Lane.
The authorities having charge OF the bank
| propose, In case 1t is wound up, to resist the
payment of the checks obtained through the
cashier, Mr.. Dyer.
The WeedspOrt Bank DefalcatIOn.
The Auburn Advertiser prints the following
respecting the collapse of the Weedsport Bank:-
1--WE are informed that the failure is in conse.
quence of dabbling in stocks by prominent
; officer of the bank, who, finding himself in a
close corner, pledged everything available In
order 10 carry the speculations along while
awaiting rise in stocks, and efecting an insu-
rance to the amount OF $50, 600 on his life to be
used as collateral The failure sweeps the
entire capital of the bank-Sl0OI0O0 We un.
derstand receiver is TO be appointed at once to
wind up its aftairs,N
Additional Particulars of the Collapse OF
the UnadilIa National Bank.
TROY, N. Y, July 2s.-The assignment of the
Unadilla National Bank is a general one, and
|
law, though doing no business. A receiver
from Washington has been applied for, and will
probably arrive in few days. The owner OF
$40, 600 OF the stock in Albany is son of Mr..
Watson, the President of the bank. II Is stated
: by the President and Cashier that had the bank
| been closed some months ago. something would
have been saved; as it is, the loss will, am told
| be total.
As l telegraphed last night, great distress pre-
It walls in ali the country surrounding Unadilla
e my Information sho wing that one woman, {
Il WIDOW, has become crazed by her losses, anC
y mat another has attempted 70 commit suicide
II me losses cover a wide extent of country, anC
Is VIII be desolating in their effects.
probable Collapse of the Whole National
ie Ba"k system.
~ Ihe following National Bank failures hay,
" Deen reported within the past few days. ThC
+, weakness OF the whole system is here exhibited
~ Ii ln prosperous times these institutions cannO
et SUSTAIN themselves what effect would suddeI
as hnanclSl SrlNs have upon them? They Wonlt
Il go OIL by the hundred-
% UNADILLA NATIONAL RArSK oTepco ,.o,,,,,c,,
of Cause OF failure Provision ., nd to, enc
: .,. culattons.
NJ Preslueh I"'''''''''''''''''. Arnold b. Watson
ut Cashier ''''''''''''''''''''''' Clark j. Hayes
Capital al.,....s...s''"''''''''., $3.50 600
| 80.
,g REDEEM ption Agents.. Watson a 10 Alho,,,
" WEEDsPol'r NAIloSAI SEI 1oSK' YoS' oAYUeA COUNTY
Id Cause OF fallure~.......... Stock speculations
CT President t,...,''..'."''''' ~; ~ Havens.
u Cashier ~ - lawrence,
,h Caplt0 l... gay0gVVVys