The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-09-11
The Broken Bank,
Especial telegram

which, in a poorer or less powerful man
would have been characterized as a crime.
is known that Mr.. Sharon and several of tn
other directors of the bank have gone to Mr.
Mills's country residence to- day to get from
him denial of the story which was ma lie or
his authority. Up to this hour, 2. NJ, the.
have not returned. Should they reach thu
city in time for the telegraph 1 will send yor
the result of their negotiations. But even al
explicit denial from Mr.. Mills now, ate
twenty-four hours of reflection and hobnob
bling with directors, will prove of little avail
to undo the evil which has been done. The
public are always willing to believe the wors
OF man, and it is easier to ruin character
than to reinstate it; besides, there have beer
| MANY LIES TOLD BY THE DIRECTORS
of this bank that no one knows what to be-
lieve and consequently man believes pre-
cisely what he likes The whole aft lir has
| been miserably murdered from the beginning
and instead of unraveling the mystery, each
succeeding day seems to be clouded more and
more Whether the story be true or false, it
came with very poor grace from D. o. Mills,
who owes every penny that he possesses in
the world to the generosity and friendship of
VIM. G. R,lston. 1t is right that the public
should know the facts. But this should have
come from the directors in the shape of q
statement to depositors, and not from an in
dividual through the columns of newspaper.
Neither does the truth or falsity of the charge
affect the stability of the bank. Whatever
moneys Mr.. Ralston took from the institution
are more than covered by the property which
he turned over to Sharon for the benefit of
the bank. 1t is simply question of
HIS HONOR OR DIsHoNoR,
and perhaps after all, the story had better
Lea al .1ofov hoe, 1alr do
for all his faults by his ruin and death, and
retributive justice can ask no more. This
being Sunday, no progress has been made in
adjusting the afftirs of the institution.
have examined to-day the legal papers by
which the syndicate bind themselves to pay
all depositors dollar for dollar, and the sys-
tenn by which this is proposed to be done is
interesting as sho wing how broken bank in
o hard money country may escape bankruptcy,
if but few solid men Can be found to throw
themselves into the breach. In this case
SYNDICATE HAS BEEN FORMED
to assume the management of the bank g
affairs, collect the assets and pay the debts.
These gentlemen are all men of great
wealth, who give their personal guaran-
tees to the extent Of their individual sub
shall be paid in full. They make ar
rangements with the heavier creditors for
their payment at certain stated periods agreed
upon, while the smaller depositors and cred
itors are paid on the opening of the bank.
Should the collection of moneys due the bank
be delayed or interrupted, then the syndicate
is assessed from time to time to make up the
required amounts These assessments are
treated as advances or loans to the bank, upon
which 10 per cent interest is paid up to a
time specified in the articles of agreement.
At another specified time, when all
THE LIABILITIES HAVE BEEN PAID,
then the syndicate has the option OF taking
the stock in its hands, paying the stockhold-
ers for it at par, or 500 per share, or return
ing it to the stockholders, and in which last
mentioned case the management would revert
to the present stockholders, and the syndi-
cate as such would retire. The assumption
is, however that the gentlemen composing
the syndicate have taken hold of the matter
with the main purpose of reinstating and
building a great banking institution, to be
continued under the new management, and
the favorable showing of its affairs and the
amount of business which is already guaran-
teed it will probably make the Bank of Cali
fornia stock
DESIRABLE INVESTMENT
even at premium, long before the time set
in which the sydicate have the option of
taking it at par. Up to this time the SUBJ
scription to the syndicate aggregates nearly
$1,000, OOO with favorable prospects of its in
crease to $4,000 900, while the assurances
are ample that the bank will resume with
nearly its former line of stock and COM
mercial business and such additional custom
as the solid guarantees of its stability and
careful management are sure to bring. In
addition to the subscriptions to the syndicate
all of the subscribers will give it their bust
ness, and most of them will make heavy de-
posts of from $500 to 100000 in gold
coin at once The bank has now about ST.
900, 900 in its vaults.
Sharon will deposit $1,000, 600; Keene,
$500, 900, and large number Of brokers and
operators from $50, to $1,000 each, and
there are assurances that on the day of open
ing the vaults will contain from S3,000,0 900
to SIS, 600, 600 in gold coin. Under the showing
made, it is not likely that the syndicate will
necessarily be called upon for dollar, but as
PRECAUTIONARY MEASURE,
and to strengthen the institution an assess
ment of 10 per cent upon the amounts SUBJ
scribed will probably be levied and paid at
once. When the subscriptions are complete,
the names and amounts will be published,
from which the public may judge of the
guarantees of stability and good faith offered
tha