The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-15
GREAT BANKS FAILURE.
MORE CONFIDTNG STOCkHOLDERS
TiKEN ~ iND DONE FOR.
rh. suspension of the Bank of the stat. Of

rbs Suspension Of the Bank OF the state Of
New \ Sork- The Accounts Overdrawn TO the
Extent Of from sSOO,OOO to 81. 200, 900
Where the Loss will be Likely to Fall.
The Bank Of the State of New York, at
n william street, closed Its doors at 1i3O yes
terday morning, having been thrown out by the
Clearing House. II had received several depos-
Its, and paid a number OF checks. Tho
bank was established In 1890, and had
a capital Of t2.0OO,0O0. In us exhibit, on
haturoay last, It reported t3es0,OOO in loans
IS5OOO In specie, tl0oj 900 In legal tenders oir-
culntion, t25O,0OO deposits, f2S55,0OO. Its debt
OF Sl0i,0OO at tho Clearing House was paid yes
terday morning. The closing Of the bank Is the
outgrowth OF an Investigation that was made oy
Bank Examiner Meigs on Thursday last. Tho
result OF his researches was made known to the
Clearing House on Saturday but even as late
As yesterday at noon Mr.. Rohird Patrick, the
vIce-Presldent who, In tho sickness Of tho
President, has had char1e Of the business for
more than a year, said that the intelll gence OF
the difficulties was entirely new to him. 1t Is
believed that neither the depJsitofs nor the note
holders will lose anything, and that the | oss will
fall solely upon the stockholders.
The Bank Examiners investigation disclosed
irregular loans to produce dealers and others,
and among the accsptances was 70 und one of
tIOUD, bearing the Eatne OF duncan, Snerm m N
Go. Among the overdafts is one for $4,000 by
the United States Attrition Flour Company, Sc
cured nominally by 100000 stock OF the COM
pany. which some OF tho Clearing House Com
mittee think Is worth about four cents per
pound for old paper. The same concern
that made these overdrafts has time
loan from the bank Of si25,0O0, secured
BY malt which Is worth about half the
amount of the loan. Another owe rdraft
was by house In the produce exc hange
commission business, dealing principally with
Kentucky and was for t250,OOO. Tho Vice
President owed the bank $40, 100, partly secured
by real estste. A check Of one of the officers for
Seo.OOO was found In the cash, whereas 1t should
have been charged to his account. 1t was ascer-
tainod that advances to a considerable amount
had been made on grain in transit, some Of the
bills " lading for which stu remaining In the
bank bear dates two years old. In the assets
the Examiner found $4,000 In paper that had
been protested
The United States Attrition Mil Co. was
formed for the Introduction OF a patent process
OF making -four by attrition. Its President Is
Mr. Giryan. Of Smith Girvan, 70 Broad street,
malt dcalcrs. Tho COMPANY makes the ma
chinery necessary In the process. and sells pa;
tent rights for states ana counties Its capital
stock il $2UO00OO. OF which the Secretary says
one million has been subscribed.
Tho New York city AttrluOn Mill Company Is
an older corp Grafton, but has onlN <lUO.OO cSpl-
g.. IL hasa MIL In Delancey street IN opera
ton Its President Is Mr.. Smith, OF Smith X
Girvan. 20 Broad street. malt dealers. Mr..
Vice President Patrick OF the Bank OF the state
OF New York, owns 100 shares of Attrtion Mills
stock. But" said secretary Egins yesterday,
T" he cid not let 1t from us. He got It second
hand. II stands In our hooks in his name. bow
ever. The stock Of the U. 5. S.Attrition MIL Com
pany Is worth IS that's what we pay for 1t, and
the CITY AttrtiOn stock brings liz easy"
Mes,r'. hichaTd Patrick $ puSr are ware, ware
IA the Xica praaidenl Df and MIR. Duer
Is son OF the President IL was asserted yes
terday that many OF the warehouse receipts on
which advances were made emanated from this
Establishment.
AT meetIne OF bank Presidents yesterd lay
afternoon II was reported that Bank Examiner
Melgs hao transmitted his report to the Comp
troller OF the Currency in Washington, aud that
The Comptroller Will appoint receiver, and N
the mean time the bank will be In the HANDS OF
The result OF the Investigation OF the banks
account tends to snow that its failure viii not
Affect any other banks. and u Is thought thai
the failure will not be followed by other hnan
cial disasters. The bank WAS examined one veal
ago, and Its affairs were then IN satisiactor,
condition, although even ut that time there were
some bad debis.
Drafts drawn by the First National Bank Of
Geneva on the Bank of the state OF New forh
are TO be p.id by the First National Bank Of New
York.
The near relations that this bank sustained "a
merchants in various branches Of trade, and
especially to the dealers In cotton. breads IFS
provisions and groceries, made its failure fei
promptly The Produce Exchange exhibited
decline in wheat and lard, ana brought trad,
Ia other staples OF Western produce nearly 10
uandstll. Its effect In the same direction va:
sven mere decided at Chicago than at thi
market. Wheat here was much wanted fo
export, but shippers concluded to hold
on, looking for lower prices On the
Cotton Exchange the failure was a very
wet blanket me bull party was In high spirits
owing to stronger accounts from Liverpool ant
smaller receipts at the ports, but the new
changed buoyant to declining market, anC
the early advance WIS soon lost. The grocery
trade was not 50 much depressed us WAS ex
pected, but sugars and teas had already de
clined much as TO ord basis OF steadines
In the -tural spring trade. In fact, no leading
staple IS seriously exposed at this time from
hnnn 'ial dl.order, except wheat, which Is In ex
cessiye suoply, while the foreign demand Is no
active enough 70 support prices under heavl
pressure Of sellers.
MIR. +. D Inuroer said yesterday that he diC
not know OF ny l.rEe grocer whp was a depos
itOr IN tne Bank of the state OF New York. Mr
Royal Phelps SAID that the bank was principals
sup.uri ed Dy speculatOrs and brokers hcnc
its failute. The directors, he added. had ne
glcc'el thcr duties, and the Vice Pres ldent
Parick, mad raised the devil" unmoiested.
IL Is generally believed that the x4OO,OJO sur
plus OF me bank nnd about One-half of its cap
ita Of S2VO.0O) have teen lost, bat Of co 4rse IN
close estimate can be made until the Bank Ex
hminris figures are given TO the public. In
bank Is believed to be about Sl,OOO,UOO short.