New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-20
THE MERCANTILE BANK LOANS.

Company.
THE MERCANTILE BANK LOANS
NAVY LOSSES NOT APPREHENDED--THE SEWING
MACHINE CoMPANYs PAPER SECURED.
A TRIBUNE reporter called yesterday morn
,ns on n Ameruan cashier of the Mercantile National
Bank at Broadway and Dey-st, to obtain fuil paItcu
lars of the complications in which that institution was
involved on account of transactions with the poueso
Sewing Mac hiDe Company. Mr.. Amernan salu INA. TIC
had little TO add TO the statement puDnshea ID yesl
davis TRIBUNE f. ]. Blake, the late President
aad lent the money Of the bank from time
"a time 20 the Domestic Sewing Machine
COMPANY I'm which he is Interested as
n stakeholder, and the President OF which, George
Blake Ia his brother. There was nothing irregular III
these loans which made in the usual way, except
shat the Board Of Directors were not informed OF the
They we're secured by the commercial paper OF the sew
apR.machine company, which, no doubt, Mr. Blake
xhouRht perfectly good. The loans had extended
Ihrough long period Of time and the notes. as they
fen due had been promptly paid until Anew Gays ago,
when some Of them returned protested. This caused
4poury meeting Of the directors was called ana
Mr. Blake resigned the Presidency, and Norman White
MAS chosen 10 FIJI the place thus made vacant.
Nj Amerman asked II the resignation wasIvolnn-
tary He answered: "of Mr.. Blake couldn't re-
main under the circumstances" BE added that ii was
unlikely that the bank would suffer any loss and a. the
most the could not absorb its surplui Of sS5Ooo
Nj White newly appointed President, told tho re-
porter that the Government Bank Examiner Mr. Melgs
had been called in to make official examination OF the
affairs Of the bank and had already expressed the opn
1oD from the examination he had made, that
the loss, II there should DO any, would be very
aght MI. White said that there were no
defalcations or any apparent attempts at iauui
Mr. Blake had simply acted in irregular manner IN
losning the money OF the bank without informing the
directors and the case improved by the fact OF
his intimate connection with the party TO whom the
money was lent Mr.. Blake had had the utmost conf
denoe Of the Board he had been looked upon as a
wealthy man. and only short time ago held l,lOO shares
pf the Mercantile Bank stock, though he had probably
disposed Of large part Of this Mr.. White expressed
perfect confidence that the bank would lose little any
thing through the Domestic sewingMachine Company,
and said that negotiations pending for the consO
dalton Of that with another company, which, If carried
80 completion, would insure the payment Of all the
formers notes in full
few minutes before 3 p rn.--the regular hour for
closing the STOCK ExcbangeMr Megs visited the Ex-
change and requested the presiding officer read a
brief paper that he had prepared Informing the brokers
that examination OF tho affairs Of the Mercantile Ma
and that Its losses any, would be very trfing. He
told that at that hour the paper could not be read
but that sounding OF the gong for the
business he, member Of the Exchange could make
any speech might wish. Accordingly, after the close
OF business but while I9any members Of the Exchange
stl present, Mr. Melgs mounted the rOstTum and
made an announcement substantially az above.
Bercanue Bank, examining It's accounts. He Wis
ited there by Tribune reporter %hon he tod mat ne
examination OF the accounts Of the Domestic Sewing
Machine Company ava o. Ia i; o. bdAe, tne te Pres ,
lOanEamOunting TO about szO0000-were substantially
occurred. he DeheVed tDeIe would DC no less
the Stock Exchange, knowing that ia these
excited times The slightest rdInors were picked up on
broker broker His OPINION Of the security Of the loan
based partly upon ms knowledge OF the point which
Irn Hgn n far rho
consolidation Of the Domestic Sowing Machine Company
with another company which he declined to name,
ing VAS not 10 talk too much about trade before
IL was concluded. On being asked II II was not the
Grover Baker Company to vhicn reference made,
George Blake, President Of tue Domestic and brother
of exPresdent OF the Mercantile Bank said that the
troubles had grown OF tho strlngeDcy in the money
ther building at Foureenth-st and Broadway They
the habit OF doing business the lease system
pete with other companies. He thought they had
been extending their business too rapidly in the
lace Of me panic me-, although the troubles
mounted ordinary times The assets of the Company
fully uilon over az Liabilities, and he thought
distributed all over the country, and should
their organization DO broken up 1t would cause them
EIeat loss assets of the Company not including
patents, about S,SJO0OO and the liabilities about
h3OOOo These assets were composed of notes, leases
and merchandise while the total amount OF their pro-
tested would he covered by $4,000. Within the
last 90 days $4,000 bad come IN on their lease
account, but he thought that II they could not
pay all their notes they had no right % pay
any aIrang ements made An extension
OF time would ne thought, strengthen out everything
The banks their creditors bad thus far treated them
with great consideration meeting OF the creditors
would soon be called when definite arrangements would
made and tho Company would be better prepared 10
give Information respecting it's affairs. AS iJ they
had not suspended nor closed their doors. Mr. Blake
said that negotiations had been pending for time
with reference 10 the consolidation OF the Domestic and
the Grover Baker ewing Machine Companies at the
request OF tho latter sno he thought they might Gull
inmate within ten days. The Company solvent.
The following letter was sent BY the Company TO its
agents yesterday:
sHvYosE. Eou 10 1873
probably IN the pspes pecuniary
treubs truth in refer 10
THIS say that with abundant property par al add
kye early and
i.h Cur vail be made 30 viii ebsr-
Ssay fts eli nssesd indalseRst