New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-22
OTHER BANKS CRIPPLED.

OTHER BANKS CRIPPLED.
SUSPENSION OF THE NATIONAL TRUST COMPANY
Soon after II o'clock, on Saturday, the Ma
tional Trust Company having offices the first floor OF
Nos. 261 and 263 Broadway, suspended payment Ihe
Secretary Of the Company, Mr. Merrill. stated 10
reporter Of THE TRIBUNE that the Immediate cause Oh
their suspension was the failure OF inc COMPANY
to realize ON their securities b"S ." 'no
day the President b. T. Mangam, went down 10 wan
ST. taking with him s8OOOOO OF securities, most Vi Tue"
IT, s. currency SKIES The conversion OF these SECURITIES
would have involved very great loss, ana inc irus'eo'
therefore, to suspend believing IL WOuid do
for the best interests OF all concerned Inc
capital Of the Company Is SOOo,ooo' anu ai'or 'no
declaration of the dividend, there was surplus Oh
about five per cent of the capital On FRIDAY anu
Saturday up TO the time the Company suspended thero
had been drawn out between 100000 ana s6ooo' iho
Comnany ia entirely solvent The cause OF the suspen-
sion was the utter impossibility OF realizing on
good collaterals. AS as these can DC uisPoseu
of az fair price the Company VIII resume Inc amount
Of deposits before the began was about soVO'OOo
Tho Company is in no wise interested In rairoau SocAs
or bonds The deposors need not De aariheu' LUIS
statement was corroborated by the President b. H.
Mangam
srsprvsroN OF THE BANK OF THE COMMONWEALTH.
The National Bank of the Commonwealth
suspen ded early Saturday. The consequent excite
vi intense,
connection between the banks under the national sys-
TEN would result in other suspensions On FRIDAY tnere
was "a slight it. over million was pld OUT ana
checks were certified amounting in the aggregate
to millions. At the close of business hours IL was
ascertained that " through some unaccOuhtaDie
mistake" the paying teller had perihttou
the clearinghouse Of Edward Haight Co..
to overdraw their account. s225,OoO' A demand
WAS at once made upon them to make good the over
and n
Saturday morning they replied they unable, and
thai they were at numbered among the suspended
Not relying, however upon their statement promising
10 refund Mr. Ellis, the President OF the bank visited
the officers the other national bonk asking for assist
ance in case heavy demands were made upon theu'
they promised TO grant and appointed $3.50 a. m as
an hour for consultation and for making good their
promises. but failed to keep their appointment.
Upon returning TO his bank the President found
q large crowd Of his depOsitOrs ready to withdraw
their deposits. The situation was conprehended
at a glance. Haght & Co. could not mako good their
account and after hurried consultation the directors
decided 10 suspend payment II was done ana the de-
posors in waiting informed Of the decision Dis
may fell upon the crowd and pleading and begging had
no effect on the bank officers The was at once
carried INTO the street, and at first hardly credited
and men fastened to themselves If 1t was true
A visit 10 the bank building at Pine and
Nassausts. only confirmed the news. The ex-
cltement became intense. and the thOroughtare
was completely blocked with an angry and excited
throng Immediately upon the suspension Of the bank
word was dispatched the Controller Of the Currency.
He will arrive to-day when 1t Is probable that the bank
will be placed in the hands OF receiver. An exami-
nation OF the affairs of the institution will be
begun, and the Controller will then decide whether the
bank will be privileged to resume. The bank was or
gained in 1853 as q bank and successfully stood
the panic of 1851 In 1863 went into the National bank
system has continued National bank until the
present. In 1871 ii experienced very severe run
owing to the circulation of numerous street rumors
OF its instability At this tmeL the clearinghouse Com
mttee made thorough examination OF its assets and
liabilities and at the conclusion OF their Investigations
estimated the capital stock OF the company to be worth
about O9 Since that time 1t has been regaining public
confidence and up to yesterday stood high in the est
nation Of the public. 1t deemed TO be in perfectly
solvent condition, and its officers acknowl-
edged financial ability It's deposits aggregated about
s2OOOOOO which is to be considered fair average OF
banks deposit.
George Ellis its President stated Saturday that the
suspension made with great regret. They oxpe-
renced a slight on Friday morning, owing 20 the
run on the Fourth National Bank and about 100000
paid out After the close Of the days business he
certained that Haght & Co had overdrawn their ac-
count to the amount of s225oO He at went to tho
Office Of the firm at No. Wast., and found that Mr..
Haight had gone home but his partner stated that the
overdraft would be made good. Yesterday morn
ing he Mr.. Haight, aud then informed that
the firm OF Haght Co. had suspended, nothing could
be done to make good the overdraft He then consulted
with the presidents Of other national banks OF
whom proffered assistance, and advised him to go
This assistance not forthcoming In time and while
an immediate suspension not absolutely necessary
still he thought, in justice to his depositors, it would not
do TO subject the bank ota drain of Its funds and he
therefore thought it advisable to suspend. Mr..
Ellis also said that arrangements had been made to
cause the cearings OF the bank to be duly made. He
could not at present render statement as to the
diton Of the bank thought that perfectly
solvent condition He said that the Controller had
been teegraphed TO- would probably arrive to-day, when
a thorough examination would DO made and the bank
placed in the hands OF receiver In an in
qury he said that the question Of the resumption the
bank would depend upon the decision of the Controller
In the meantime he had nothing furtherto communicate