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

NATURAL RESULTS FROM A SAVINGS ms
TIoN sPEcULATISo IN REAL ESTATE
Bosrox. Feb 5,
The Mercantile Savings Bank of this city is Il
est victim OF shrunken securities. 1t held mort
proporty In Hyde PARK, a town which grew
half dozen houses to be ono OF the largest and
picturesque of Boston's suburbs within six years.
is owned largely BY Boston merchants Who went
tho business Of securing homosteads outside oi Bost
where taxes would DO lower thsn In the city. IL
town was built up during tho mania for real
estate speculation, and IL was, iko other
mushroom settlements, built largely on credit,
As long tho imitation prices lasted and rents were
high the interest, and portions OF the principal could
easily bc paid, bat as soon as the panic struck and
property began 10 deprecatc, men who had any sur
plus commenced TO 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 was rapid. The Mcr.
camille Savings Bank loaned la rgely on this
soered. as safe as government bonds Su, ''n' #
II were to DO sold to-day II would not
bring the iaco OF the first mortgages The officers OF
the bank were largely Interested In the Hyde Park
enterprise personally. and II was difficult for Inc Bank
Commlssioners to distinguish between the interests
OF the institution aud those oil its officers so they
two years ugO insisted on the abandonment Of The
whole scheme.
LOADED Win UxsALABLg LAND.
In doing thIs, however, tho officers found
themselves hardened with a large amount Of
deprecated securities which they could not
carry without great deriment TO tho IN
without donbt iaborcd nard to got rid OF this prop
crty, aud II possible cover up the evil results Of
their wild speculation; but they tailed, and today
temporary injunction was issued 10 prevpns tho pay
me1t OF any money Dy them. They have been acing
under the sixty-day rule, and were temporarily sus
pended. They now hoId properly which is recorded
ON the books AS worth $3l6, ll6 25
DKcEPrIvE EETURSs.
uav a are nd Poa aao0
to believe that the officers have ado and
curato returns OF their actual condition within tho
past Two ycars and rigid investigation In progress
For instance, the bank building down In thoir
assets as worth SIG 725 ST. but It has been discov-
cred that heavy mortgage has been given
on II TO secure an outside loan . and tho
transaction has been kept secret from the Com
mtsIoners IL 10 generally believed that the courts
Will wind up tho affairs OF tho institution and that
this purpose tho temporary injunction will shortly
made permanent aud receiver appointed. IL 10
hoped that the depositors will not ncnviiy.
PROPERTY SOLD.
Besides tue property which will be sold
~ auction within u week thero capital
stock ot $205 81 IL, which will DO Assist IN
making good the debts OF depostors. The largest
mortgage held by the bank the Hydo PARK prop
erty ~ one for $4,000 on uoting park, winch was
originally valued NJ $50 900, but sold Today IT would
not bring moro than $4,000, II that much II will bo
offered Ior sale February ~. Tue developments In
this case have caused gooi deal oil criticism aud not
q little apprehchs,0