The New York herald., 1878-02-06
ANOTHER RUINED BANK.

NATURAL RESULTS FROM SAVINGS ms
TON sPEcULATINo IN REAL ESTATE.
BosToN. Feb. 5,
Tho Mercantile Savings Bank of this city Is ID
est victim OF shrunken securities. 1t held mort
on proporty In Hyde PARK, q town which grew
bali q dozen houses to DO ono OF the largest and
picturesque of B0stons suburbs within six years.
is owned largely BY Boston merchants no went
tho business Of securing homosteads outside oil Bos
where taxes would DO lower shsn In the city. IL
town was built up during the mania for real
estate speculation, and IL was. like other
mushroom settlements, built largely ON credit
As long tho imitation prices lasted and rents were
high the iutorest and portions OF the principal could
easily DO paid, but as the panic struck and
property began 20 deprocate, men who had any sur
plus commenced 10 unload, and the downward ten.
dency kept till real estate In Hyde Park became
drug in the market Tho growth OF the town was
unnatural and tho do cline rapid. The Nor.
camille Savings Bank loaned la rgely this
property; and threo years ago Il was con-
sdered. as safe as government bonds, but II
It to DO sold to-day It would not
bring iaco OF the first mortgages The officers OF
enterprise personally. and II dicult for Inc Bank
Commissioners to distinguish between tho interes
OF the institution aud those oil its officers SO they
two years ugo insisted on the abandonment Of the
whole scheme.
LOADED wirn UxsALABLE LAND.
themselves burdened with large amount Of
deprecated securities, which they could not
carry without great detriment tho In
stitution and thc depos,tors. Thoy have,
without donbt laborcd nnrd to got rid OF this prop
crty, aud, II possible cover up the evil results of
their wild speculation; but they Jailed, and to day
temporary iniunuton was ssued 10 prevent tho pay
ment OF any money by them. They have been acting
under the sxty.day rule, and were temporarily
pended They now hold properly which s recorded
the books as worth $3l6 ll6 rs
DECEPrvE RETURNS.
Tho Banking Comm ss Oners nave very good
TO believe thai the officers have mado Isr and
curato returns OF their actual condition within tho
past Two years, and rig investigation In progress
For Instance, the bank building In thcir
assets worth SIG 725 81, but IT has been dscov-
cred that heavy mortgage has been given
ou TO SECURE an outside loan and tho
Transaction has been kept u secret from the Com
mt soners IL is generally believed that the courts
Will wind up tho AFFAIRS Of tho institution, ana that for
this purpose the temporary injunction will shortly be
made permanent aud recover appointed. IL 10
hoped that the depositors will not ncsviiy.
PROPERTY SOLD.
Besides tue property which will be sold
at auction within week there 10 capital
stock o $205. .57I IL, which will be ASSIST IN
makipe good the debts OF deposit0rs. The largest
mortgage held by the bank The Hydo PARK prop
cry ono Tor $4,000 trotting park, which was
originally valued st $36 000 but II sold to-day IT would
bring moro than S25, ,000 II that much IL will bo
offered Ior sale February 10. The developments In
this have caused gooi deal oil criticism aud not
a little apprehension.