The New York herald., 1878-10-05
THE GLASGOW CRASH.
Criminal Bank Mismanagemsnt
That Led to Ruin.
KTE-FLYING BY MILLIONS.
Money Lent on Phantom Securities-A
Directors "Ring."
THE SUFFERING SHAREHOLDERS.
No Panic Yet, but Grave Anxiety-The
Consequent Failures.
THE SUFFERING SHAREHOLDERS.
ROTTEN FOR YEARS.
Ramifoations of the Disaster in
London and India.
AMERICAN BUSINESs UNrONcEBNED.
(BY CABLE TO THE HERALD

BIZ CABLE TO THE HERALD
GLASGOW, Oct. 4, 1873.
The excitement has considerably abated
over the failure Of the City of Glasgow Bank,
although much painful anxiety exists in
financial circles here. Further developments
are expected which are at present unap-
parent and complications have arisen in
volving many houses whose fate is in
evitable. It is impossible, therefore, to
estimate accurately the full range of the dis
aster. Many damaging rumors continue
to circulate about the fatal mismanagement
of the bank, which are eagerly discussed by
depositors and shareholders alike, for each
are equally interested-the former in the fear
The deficit cannot be made good and the lat
ter because of their full legal liability for
the difference between assets and liabilities.
THE SHAREHOLDERS.
An analysis of the list Of shareholders Of
The broken bank shows 1923 ladies and 831
gentlemen. The holders of sufficient
stock to qualify them to be directors
are divided as follows:-Bankers, 1876
bank officials, 16; solicitors and
writer's, 49, minister's, IS widows, 46 !;
teachers, "a papermakers, 4 manufacture
srs, 8 merchants, 49, tradesmen, 80 doc
farmers, At executors, "a trustees, 7S /;
other professions, ST. not stated, 1885, AL
most the whole of the shareholders reside
in Scotland. In Glasgow there are
267 in Edinburgh, 1913. The remainder
of the total Of 1,249 are scattered all over
the country. The liability of the share
holders is unlimited and heavy calls are
shortly expected. An assessment of G150
($750) to G2OO Isl, ,0O0) for every share of s1OO
($5OO) is considered probable. It is esti-
mated that over sixty per cent Of the share
holders can respond to these calls, although
IN estimate of the damage is at present i'm
possible.
INCIDENTS OF THE cIAsa.
Some idea of the widespread feeling of
insecurity and the unsettled relations of
capital and labor may be formed from the
fact that several builders have paid off their
men one builder, shareholder, having dis
missed all his employees on learning that the
bank had gone under. Regarding the
Bhipbuilders, one firm has failed. The
Glasgow stock and iron markets opened
dull to-day, but improved. Among the
minor incidents of the failure the
following are reported:-At Inverness
the agents Of the bank had not
received orders to stop payment
until els, 900 (s75, ,OoO) had been Withdrawn
by depositors. At another place the post
master withheld the telegram ordering the
closing of the local branch Office of the
bank until his friends and relatives had
Withdrawn their deposits. All telegraph
business in the United Kingdom, it may
be recalled to American readers, is under
the charge of the postal authorities.
BAD DIRECTORS
Serious charges are advanced against the
directors. 1t is said that only one director
is free from the charge of borrowing large
sums of money from the bank and using
the position for their own ends an entire
departure from the legitimate banking
principles for which Scotland has long been
celebrated. The statement has been openly
made on Change to-day that certain ex-
directors, ex-officals, their relatives and
friends to the number of dozen or SO. are
indebted TO the bank upward of six millions
sterling $3.50, o0o,Ooo). It is hoped that
judicious liquidation Of the wrecked insti-
tuition may mitigate in some degree the
losses OF the unfortunate stockholders.
INTERESTED EXAMINERS.
Much surprise and incredulity exist at
the appointment of DR.. Macgregor and Mr..
Anderson to examine the accounts of the
bank, both being officially connected with
. company largely indebted to the fallen
concern.
THE HELPING HAND.
The action taken by the other banks in
accommodating the broken bank by taking
the notes and circulation, and their ar