New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-03-21
HEAVY BANK DEFALCATTor
FAILURE OF THE BULLS HEAD p,v

Bulls Head Bank, at Third-ave and Twenty .a,,h..,
consequence OF a heavy loss or defalcatioD can.
found surprise yesterday. II looked upon !. se
the soundes financial Institutions In the CITY 7, ~
one OF the Old State banks incorporated In 1884 via
capital OF 100000. Its clearsnces we're made ,h,.~
the Metropolitan Bank. Immediately after tho 49,
ton Of business by tho latter bank yesterday ,..
the following communication received:
Bulls HEAD BANK +,
NEw-YoRK, March 20. 1873 o'cock m
II. Il. MEAD, President pro TEN.
q. w WILLETT, Cashier.
W; H. MERRITT Assistant Cashier
inform you that in consequence OF heavy defaics,n
or loss, that yet unaccountabe 20 u.s. have gs.
discovered that this bank Ia insOyent and st
meet ts liabilities committee OF our Board h., ~
been all night at work under advice OF counsel and ~
early as pos BILE. that you may refuse 70 redeam h.,
us. Very respectfully, q. W. WILLETT Cashier
In accordance with this Notification the Cle.r,n,
house was informed Of the suspension Of the n.n.
Head Bank and ell other banks the city through IA.
same channel The news spread quickly in the str.a.
and eagerly discussed in the stock Exchange. n.
could give any definite information beyond the bar
announcement that the bank had suspended paymeot
and that the defalcation was very large.
At the Bank very little could he CLEANED early A.
the day On the door Of the main entrance was postal
placard bearing the following annouL cement: RAM
closed affairs being investigated: will report a.
soon as possible" During the day there was .msr
crowd In the vicinity Of the bank but IL not torba
lent. Most OF the depOstors, ihsy Learned
that statement would be made by those investigating
the accounts, went away.
WHAT THE PRESIDENT SAYS
reporter OF The TRIBUNE called late In the day A
the bank and accorded an interview by f. r. Mead
the President pro TEN. Mr. Mead stated that he WA
chosen the 18th inst I'LL the vacancy caused by tia
resignation Of the former President. Richard William
son, who resigned partly on the OF III health
Just previous TO Mr. Wiiamsons resignation the boom
Of the bank were found one morning very much ma-
tilated The general ledger had number Of accouuts
cut out entire and these leaves missing m ethsr
OF the other books had been mutiated In this way the
could have readily been made good by tAs
deposit and otherwise. The mutston Of tbs
general ledger however had completely upset tho ms
cbinery Of the bank When MI Mead assumed
control he at once called for thorough exam
ination OF the books. He did this for hs
own safety In order that he might know just how the
fairs the Bank stood and 10 order that be might b.
able 10 conduct its business Understandings An
lining committee appointed and on Monday the iotA
inst It began its work The books found badly
muated that after considerable search, on Monday
last an expert was called in 10 aid the Committee AZ
the books OF the Bank in daily use, the work Of in
yestigation was very much impeded. On wednesday
night the Committee concluded to work through the
tire night aud endeayOr 10 reach conclusion. There
we're evidences OF irregularities beside tho muatoa
referred TO- but the of many entire accounts
rendered the work exceedingly difficult. After working
nearly the entire night enough irregularities d
covered to make certain that the capital Of the Bank
was very seriously impaired. After consultation tho
Directors deemed it advisable to suspend operations
until the entire liabilities aud assets could be
tanned
What will be the extent OF the defalcaton could nos
say He believed and this the opinion Of the En-
aiming committee that If careful collection and cor
version made OF the assets OF the bank the depote
will be paid In full although will be. OF course, wOrt
of time For the stockholders he could not offer much
encouragement. The capital Of the bank at the LAT
quarterly statement s2OO0OO, and there was sur
plus of $4,000. He afraid there would not be much
this left but he would not attempt to give any az
ures as to the extent OF the loss He only knew thsth
would be heavy. They could not say who was respOns
BILE for this of aeirs It was hard to lose moaey
in this manners seemed harder not to DO able tofasen
the responsibility for it on some one. The paying teller
]. S. Peck. discharged soon after the mutilaonS
the books was disco gered. Nevertheless no Is oot
charged with the dealcat0n nor as yet can the taun
ation of the books be traced to any one. The book
were taken from the safe morning, and placed %
the desks usual, and soon afterward the mutlaeoa
was discovered Ii may have been done Just after the
close OF business and before the books placed in
the safe OF the morning after the books taken
from the safe and before the resumption OF business
The general ledger contains the entries Of whas known
as the foreign banking business, that il checks notos
and drafts OF banks in neighboring cities Reports ara
received from these once Ia two weeks. They were
"pckng up accounts" 1t Is termed, endeayoring 70
piece out these foreign banking accounts 10 many
cases. however. they would have TO wait for reporta
from these banks before they could sraghten out a.
counts with them. The examining committee hoped
to be able to make partial report to-day. Just then
they could do more than conjecture how the accounts
stood.
ACTION OF THE METROPOLITAN BANK.
TRIBUNE reporter called at the metropolitan No
ona Bank which has been the agent Of the Bulls Head
Bank at the Clearinghouse and George l. seoey.
the cashier. Mr. seney said that the officers OF TIC
Metropolitan Bank did not know the for the sa
pension Of the Bulls Head Bank, other than coz
tanned in the letter already given. MI Seney said thz'
the letter was as much of surprise to himself and ih
other officers Metropolitan Bank as TO the genssi
public. No suspicion had been entertained thai sne
Bulls Head Bank insolvent, neither had the Me'''
politan Bank refused TO act for it until the receip
the letter.
The reporter directed Mr.. seney's attention to 'N
heading Of the letter wherein it appeared that X
Mead's name had been interiped in Ink as Presdeh.
pro tenn, and the name Of r. Williamson, Presiaenh
struck out and asked when and why Mr. Williamson b~a
relinqushed the Presidency. Mr.. seney replied 'aA1
Mr. williamson had severed his connection with ths
Bulls Head Bank month or more ago, aud why no ON
so he could not then did he at present understand
There was other information at the command OF 'ss
officers OF the Metropolitan Bank tending to throw a's
light upon the failure. No loss will accrue 70 '~
Metropolitan Bank, as it IS amply secured by as'o'
the Bulls Head Bank pledged to secure clearanee~
THE ExPnEsIDEST NOT VISIBLE
Numerous calls were made by interested persons |"
the residence OF the ex-President, Richard WhismS
at the southeast corner OF Twentiethst and fn'as
He was not at the bank during the day, and tnoe W
called at his residence were told that he was ou' -
was not expected home until late hour one s'.s
man, who called at 81 p. M and at Sp m received
information that Mr. williamson had het Hl9rness- r.
sp. M he again called and told that the person
sought had gone to bed and consequently could see
one; Mr.: Williamson was formerly a mercnan. =. =.