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

NATURAL RESULTS FROM A SAVINGS ms the |
TON sPECULATISo IN REAL ESTATE las.
Bosrox. Feb 5, 1her !
The Mercantile Savings Bank Of this city Is th'oa.,
est victim Of shrunken securities. 1t held mort--a
proporty In Hyde PARK, q town which grew lr- |
half dozen houses to DO Of the largest and la,
picturesque of Boston's suburbs within six yearso
Is owned largely by Boston merchants no went IL |
the business Of securing homosteads outside oil Bost,
where taxes would DO lower shsn In the city. TIL
town was built up during tho mania for real
estate speculation, and u was, like other
mushroom settlements, built largely ON credit,
As long tho imitation prices lasted and rents were
high the iutoress and portions OF the principal could
easily bc paid, but as soon as the panic struck and
property began 10 deprociate, men who had any sur
plus commenced TO unload, and the downward ten.
dency kept till real estate In Hyde Park became
unnatural and tho do cline was rapid. The Nor.
camille Savings Bank loaned Ia rgely on this
property and three years ago ii con.
II wore to DO sold to-day II would not
bring iaco OF the first mortgages. The officers OF
the bank were largely Interested In tho Hyde Park
enterprise personally aud II dicuIt for ihe Bank
Commissioners TO distinguish between tho interests
OF tho institution aud those oil its officers, they
two years ugo insisted on the abandonment Of tho
whole scheme.
LOADED WITH UxsALABLE LAND.
In doing this, however, the onlcers found
themselves hardened with n large amount OF
deprecated securities, which they could not
carry without great deirment TO tho In
stitution and tho depostors. They have
without donbt laborcd hard TO got rid OF this prop
crty aud, II possible, cover up the evil results OF
their wild speculation; but they failed, and day
temporary Injunction issued TO prevpns the pay
ment OF any money Dy them. rney have been acting
under the sixy day rule and were temporarily sus-
pended They now hoid properly which is recorded
the books as worth $3l6, ll6 rs
DKCEPrIvE RETURNS
Tho Banking COmnliss onors have vory good reason
10 believe that the officers have mado lar and ac-
curato returns OF their actual condition within Tho
past Two years. aud rigid Investigation In progress
For Instance, the bank building Is sot down in thor
assets worth SIG 725 ST. but II has been dscov-
cred that heavy mortgage has been given
on 10 secure an outside loan and tho
TRANSACTION has been kept secret from the Com.
mitsoners. Ii is generally believed that the courts
Will wind up tho ansrs OF tho institution, and that tor
this purpose the temporary injunction will shortly be
made permanent aud receiver appointed. IL 10
hoped that the depostors will not ncaviiy.
PRoPkRrY SOLD.
Besides tue property which will be sold
at auction within u week there capital
stock OF S205 57l s winch will be used TO ASSIST IN
making good the debts OF deposltors The largest
mortgage held by the bank The Hydo PARK prop
erly 10 Quo for $4,000 uotting park, winch was
originally valued nj $50 700, but sold to-day II would
bring than s25, 900, VI that much II will bo
offered Tor sale February 10. The developments In
this case have caused geoi deal OF crlteis aud not
a little nppr oh cnslon.