The sun., 1873-05-02
TIE LATEST BANK SCARE.
THE PACIEfC MAIL COLLATERAL l.
BLOWN TO THE WINDS.
| The MRnufsciurrrs' and Merchants Bank
sennd-rhe Howe Sewing Machine stock
Does the Mortgage Cover the SecuriticsS

The Hanufacturcrs' and Merchants Bank
seand-rbe Howe sewing Machine stock
Dees the Mortgage Cover the Securities
For some days runors respecting the
solvoncy OF the Manufacturers and Merchants
| Bank Of bei broadway have been in circulation.
Yesterday things were brought TO Issue by
the appointment Of an examining committee by
the Clearing House. The circumstances which
immediately led To this are hereafter recorded.
The following facts are learned from the special
counsel of the late Mr.. Howe;
Mr. Elias Howe, Jr., was one Of the incorpo-
rators Of the Manufacturer and Merchant
Bank. lie invested in the project s2iOID. aud
was the largest stockholder at its inception. A
business connection was thus begun between
Mr.. Howe and the bank. just before Mr.. Howe's
death he was greatly embarrassed pecuniarily.
This arose from his having expended S75O,0D0 on
his factory at bridgeport, and from his realizing
these circumstances he made application to the
Manufacturer and Merchants Bank for aid
This was given, and f2JDtt0 worth of the stock
of The Howe Sewing Machine Company was
pledged az security for advances made, or left
as collateral to his future acceptances
MR.. sToCKwELLs MORTGAGE.
The prevailing belief that tho bank held larvs-
ly Of Howe Sewing Machine etock the entire
stock, together with the stock-in-tradc, tools.
ALREADY mort gagged TO the Pacific Mail steamship
Company 10y Mr.. StuckweIl. the President Of the
Howe Sewing Machine Company added Inn
pOrance 10 an otherwise faint and vague rumor
that the Manufacturer and Merchants Rank
was In n precarious condition, and resulted. its
already said, in the appointment of an eIamin-
TO verify the above statement, sus reporter
President Of the bank. Mr.. johnson says that
the bank holds over s%N,VO worth Of How
has discounted bills for the company to moth
Ina like that amount. Mr.. johnson also says
hs Mr .AaLs all d.. q In
Howe Sewing Machine Company, to the Pacific
Mail Steamship Company, and that the mort
panv and outside the purview Of the part'er-
slip, aud not having been agreed to by the
whole Of the stockholders IA utterly ''luelesH.
THE NORTGAGE DECLARED ISvALtD.
II the mortgage valid, Of course the bank
might rlnor. but a. IL II not, according to tho
best legal advice, aud "a the Indebtedness % q
Howe Sewing Machine Company does not even
approach the market value Of the stock held Us
security by the bank, Mr.. johnson thinks that
the bank has nothing whatever to fear on that
score.
there ls reason to believe that the mortgage
is indeed invalid. and that, moreover. the prop
crty not worth the amount Tor which IL Is
moTgagcd. Counsel of known ability recently
examined tho deed, and they unhesitatingly
pronounce that part II II which assumes to
mort,ge the patent of the Howe Sewing Ma
chine Company most Transparent deception
Counsel assert that II is Impossible to find with
in tho range Of legal decisions any case in which
the MORTGAGE Of patent was declared To be
valid 4 patent Is not a material thing, but AN
signmen: placed ON the records of the Patent
Once in Washington.
THE PROPERTY SOT WORTH THB MORTGAGE.
Counsel also say that the property il worth
nothing like the $1,140tHl for which IL has been
mortgaged. In the first place, IL Is claimed that
the sewing machines are not In popular de
mnnd, and that, moreover, ON foreclosure not
one machine could he made or sold bv the
mortgage, Us the patents are not transferable
complica,cd patents which require special
tools for their manufacture. These tools
are ~ delicate and peculiar structure,
aud have to he made by hand and by the
most skilful workmen. Their manufacture
has cost over slO1,O11, but In the market they
would he worth simply the price Of old iron.
Coun Il lay that in reality all that there i to
show for the 81 0uomortgage u the real estate,
which might bring s4,aAW
II l. maintained by the Manufacturers and
rrhdn.s' iank. and by the stockholders gen
orally, that tire mortgage is utterly invalid ~ 1t
the consent of the STOCKHOLDERS. and To secure
30 h"ncit- for the corporation, but a. scrurity
of tne corporation. An Injunction IS to he pro-
cured 20 ItcNcnt foreclosure, and n suit is to he
ihstit tdted with view To set aside the mortgage.
rHE BANK PROVED SOUND.
The committee appointed 10y the Clearing
House "a examine int" tAe condition of the
Manufacturers and Merchants Bank met yes.
terlay afternoon and made the suhJoined re-
port
WV YORK. May I. 1874.
ing "" me .'vra "HyS of The % and defS NSf
ehants hans ne ,i.T,ng House Committee have. 4
iastos alo i, gSndiiion at he close o. 6Ssae.. rs
day. with toe iolowing result
bll' discomcd. estuatcd value ........... sWG9G rs
c6s.lpe'kc aud ohio 6ond., estimated 80
Real estate. estimated value 90. ....... ..'S 10
Lea tender mote. .',,'. 'Sss5 !;
chlcs,oh civ b.nk. exchanges. 1875 q 2ssli p
Due IRON 'M "
Torii ,iss7 seS y
Liabilities other than capital viz deposits ,Dosso II
ID 4 hat