The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-02
ANOTHER NATIONAL BARK FAILURE
Collapse Of the Croton National
Bank, Of This City.
Liabilities -Four Hundred and Thirty
Thousand Dollars.

Acknowledgement the Alleged Solo
Cause Of Suspension.
Some excitement was caused down town yesterday by
rumor which soon extensively circsIatsd 70 the
effect that the Csoaon National Bank corner Of Nassau
and Cedar streets, had suspended payment The sus-
pension took place ct ten O'Clock A. NJ being ociay
declared that the bank entirely unable to redeem IL
notes Mr.. Charles n Calender. the govsrnmsns
bank examiner for the district comprising the city
Of New York and the state or New Jsrey. Is nov IN
his opinion that the creditors mot counting the stock
holders) will be At no los BY the suspensos. as W
The Croton National Bank commenced operations ON
the lst Of October 1885, and u consequently Just two
years old yesterday. It's principal stockholders start
ing Mesara Harvey Fisk and A. Hatch, bank
ss; but after while they drew out OF the concern,
their purchased BY the firm Of Hosford
vancampen Co., brokers, Nj. Henry =. Hosford BE-
coming president and Mr. r. n. Raven cashier Mr.
Hosford subsequently went 10 Europe, whsa Mr. VAN
campen bis business partner the acting pres-
dent and was at the time the bank stopped paymsns-
The institution was not member Of the Clear
ing House, bus made its exchanges through he
Ocean Bank, which early this mornng notifies
the other banks that It had ceased TO act for The
Croton. When the bank opened III doors yesterday
morning package Of ito circulating notes was pre-
ssnted for redemption, and IL failed TO respond 70 the
demand. Hence the examiner closed IL doors under
section forty six Of the National Currency act-ths
ton Of the Treasury being apparently prsmeditassd,
owing to it, condition having been unsatisfactoy foe
some time past The deposits st the time Of failure
ma
5000 900 oty dsposta The bank had been regarded
unsafe for past and IL capital too small -
enable It to transact Wall street business. The
Treasury in wedding Il out Of existence has pursued
the proper course and the all similarly
institutions under the national banking Law treated
in the the better 10 expected that tho
creditors Of the bank viii ultimately DO paid in full ous
Of the Of bank and the notes are Of couns
sure OF redemption from the proceeds OF the bonds do
posted with the Treasury basis OF circulation. The
national banking system there Is too much reason %
fear, has many rotten tmbers In it. and their
posurs impsravsy demanded by the public ntsrsssa
The sections OF the act under which the bank sszed
and according to which its aaiu will DO wound up BY
receiver. whose appointment will probably DO made -
morrow, read follows:- s .aEta a.t sHsgt 20 q
SECTION A. And be 1t further enacted That II any such
association shall At time fail to redeem. in the Law
full money OF the United States, Of its circulating
notes, when payment thereof shall DO lawfully de-
manded during the usual hours OF business a the oc0
Of such association o. a. is place o. REDEMPTION
package BY notaiy public, unless the president or
cashier Of the association whoss ne,es for
payment, the president cashier OF the association
Mt the place At winch they redeemabe shalt oer 70
waive demand and notice Of the protest. and shall 10 pur
making such demand admission Ia writing, stating
the time Of the demand the amount demanded, and the
fact OF the thereof and such notary pub
c on making such protest upon receiving such ad-
mission, shall forth with forward such admission
seOs coDy thereof %ne s such On
animation OF the facts BY the Comptroller and notice BY
socaton suffering the same 10 pay out any Of is notss
discount any notes or bills or otherwise prosecuts The
business Of bankns receive and safely kesp
SIC. So Aud be il further enacted That becoming
satisfied specified this ACT that any association has
refused to pay Its circulating notes as therein mentioned
and Is in default the Comptroller Of the Currency may
forthwith appoint receiver, and require Of him such
bond and security he shall deem proper Who under
the direction tho Comptroller shalt take possession
OF tho books records and OF every description of
longing 10 such association. and upon the order Of
court OF record OF competent Jurisdiction sell
compound all bad or Doubtful debts Aad on IKE order
ton such terms the court shall Direct and may, IL
necessary TO pay the debts Of such association enforce
tho individual liability or the stockholders provided
by the twelfth section Of this act; and such receiver
shall pay all money made 10 the Treasurer Of
troler Of tho Currency, and also mako report TO the
Comptroller Of the Currency Of all his acts and
be given BY advertisement in such newspapers - he
may direct for three consecutive month"; calling all
persons who may have claims against such assocaton
70 present the same and 70 make legal proof thereof
And from time to time the Comptroller aftef full pro-
vision shall have bcen first made for rsfunding the
United States any such deficiency IN redeemiug the
notes Of such associaton in this act,
shall make raiabIe dividend OF the money 90 paid
over 10 him BY such receiver such claims a. NAY
have been proved bis Satisfaction adudcatsd il
court OF competent jurisdiction; and from time TO time.
the proceeds Of the OF such association shs -
paid over to him, he shall make further dvidsnds -
Aforesaid all claims previously proved adjudscasea
and the remainder Of such proceeds. Il any, shall -
legal representatives IN proportion TO the stock BY thsm
respectively held. H ftsMlta 81 tf.l
The liabilities % deposisorslars estimated BY Mr. CsI-
lender to b In the neishbohood OF S2so.ooa nscr-
cuiation $4,000. This 10 secured BY deposits n
government hands OF $4,000 The amount or capital
on which the bask was operated was s9oo, ooo Ansr
securing the bhoders there will remain s32,o 900 -
help pay the $3.50, 900 Of other liabilities isavise
q balance OF 42is00o TO DO paid from the ssssss
Of the bank. These Mr. Calender avers are ample rsr
the purpose. and he expects In short time have ths
aai Of the institution % arranged that the bank O.
90 into liquidation.
The cause Of suspension 10 alleged TO bs msmauaes-
msnt solely There has boon dsacation on the part
Of any OF the oncen employees, and 70 speculative
venture aloss the leaning Of the funds Of The nss
lion on properly which has proved b nsufcisns %
secure the Investments, b attributed the falurs
About days since examination the standiux
OF the bank was commenced BY Mr. CALENDER.
who very soon discovered It's shaky conditios.
but In order TO give the stock holders An
opportunity 70 remedy its Affairs, no did not imms-
dalsly close its operations Az appeared there
was no probability OF the Institution being able 10 re-
deem LOSSES however, that gentleman compelled
take possession OF II IN order 10 cvdtou
and hence It's formal Suspension yesterday The con-
dnou OF the bsuk 10, however, much better to-day
than II some time ago; for since the examination
into iis Affairs commenced loans have been
s.ds III hora da>
they were turned assets for the benefit Of
creditors