The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-01
C1PE EADS'S OFFENCE
The Bank Of NIssourrs Failure line to =" Vnl.
vcrsaI Depreciation la Values"

II is possible TO form by an udroit combination
Of fact and fasrhood. At Il future time |
shall give more attention to this subject For
iGc present viii couin' this iot,cr to III" siu,-
pie declaration that your correspondent has
grossly mi-lcd you in regard Ia my character
and my connection with the affairs of the Ma
tonal Bank Of Missouri. aud will give you al few
facts in proof of this declaration.
Your -pondcnt says;
Twelve year. a-o when Eads. workin, With acspitti
ul hrani. unls rliied uud tariu,l hu Hauk ul fltr
stat. o Missouri. It's stock W.. worth 100 Tor invest
The history Of she oa,sure anil ru.n 1t 'ic Missouri
cat Conscience The etiet chamcrri cars ianes Is
h"ds. hnaneal t'cniuter. Wlt. tails 900 Wi!nns aud
deals III andaciy perseverance. AMI persuasive words
Tho following bref,lcttcr from my book
hooper twho needs no endorsement for truth
fulncss and integrity in this conmuniiyl gives
the amount Of income an which paid taxes tho
yenr previous TO the purchase OF ths stock from
the State. and shows that WIS not "working
with capital ~ brains only ut the time your
correspondent reicrs to-:
Ma y. n EAps Do,, 81 In .v,r p ,1ui IT,
gnir' hhd on examination t.ii ,ut t..t iuroup ior
dutins MAI ,eat we've 500 f'a~ ttt tI'NUn national
,iaie nn' l'.ri mSst rni =" '"a d, l-'it "eu, Of.
tns tni 8lW,.i o. t. ,p,,,f p iii' W., ,
an inc,inc as &, TIE t s,itc, %, 4 7,,l rm.. tSS
"asrN'n'Nc "i ,Nc mNc, tnit p, o"rp"tAu"ns n which
,sisnul .to g. r.si,,
None nj the Gentlemen then interested in the
purchase 81 ia" stock. and who niicrWard as-
that lime worth l,ss tnnu slnn lnD S.v'rul ~
them WIRE worth much more. and one Of them.
John j. Roe. WIS worth between two and three
The following letter from Gov. Fletcher dis.
proves your currcspuuden' assertion that tho
ycs,mcut" nj ihe tim, Of Nh, s,l. ''' ''' IA
4, tn,,. IN, o. ,s-s
f.vt, a. Fan. kahn, ~ ''i ,,, I'm ,(,-
inquiry. / nud. ~ ~ nee fo .,are data in oil,
lw'. ssinn. that the ht 90 Oh, Bans m the state
b, w. Sm,c va. sei 81 ic, ,nm, ,oi tIm, v'nr,
,ar. of M. ' sta, ,i . ~ . 80 '. a., i ,, a
rrrsti, d,precttr,l An tho ,nntsUt ,,trl H., t. t,t
That u.r stat, was uuaul. 60 pa, o.. lnt rc.t rh,
mis WEI" made "n 'hc 49, ct Juno. l~s. the
'"E n'..na,'n w 'n' anN''n ,'"I,W mall toy W"
me- an "arr M sis ,t r.r .tnr. tn 49, ', .,,, i,
%, INK ni, Official app.,, 80 10 s.ur i M iH ramon
mair secof nfcr 81 i- 80 fr shaf' tHaf on,r ir.
,sil,g anl 'nrihilL a tie'cl nn uc 'n, following
i, a., . 'd W.. ,pap r. w.. ,ei
n,uk t,icrriphr, uet n v,lI a., s,li .,n,r. man
Your li co. siN'i rr share lt woaI ulcn tic sar asn
g. public competition wei knowing that had o., power
e. 10 .o. Truly you're.
iNifh'A lh"Nas r. ttfthfh
N the time ~ the sale tho market value OF the
bonds reduced hy hd - slnS.5n % % cash
equivalent 81 500 per share. and the hunks bid
OF tSl - To- lass than $50 cash per eiure
The bank had nine branches lo,utrl through
out the State. Some of thr~r We're believed H.
be- iusolyent. as their assets were largely COM
posed ~ the obligations e., persons VINO hau
been ruined by the war Their condition AMI
theioial assets 81 the mother bank were only
known To- its manager-. and instead 81 its
being the soiide-t hank a., tho West" they
were not willing 20 bid any cents ia cash
for the States stock until after was declared
10 b" the highest bidder .or H. I'll. hank had
made but one dividend land that only three per
cent? during the three y.trS pr 'yiou5 Co. the
sale. The stock purchased hy a. WIS Joss than
One-third Of the capital md 70 convert the old
bank into n national bank required vote 81
twO-thirds 81 the whole stock. Your corre-
spondent says,
Suid, niy hv .hsrp trirk the hank was ,vre.,oa
from the~ re.pcctaLe hand. ami s.t.d b, men VINO
mt the nstuuonto purpose ior which neither Prov
den'e nor i'' founders ever desfncd 3D.
II was known that Jas. II. Brtton WIS 10 be
the Pres id-nt OF ihe bank after it, reoreanizt-
lion and who "A tnntoritv If the dira..tnr. ,yer.
o. h. Mr.. Brtion was known To- have been ;he
President of tine southern Bsnk nst.rwrri
changed 20 tho Third National Bank %. ~,
Louis. Instead OF the control hcing wrs-trd
by sharp trick % il was uui INTO Ito hands u
OF IN. whole stock Under the now munnge-
mont the hank earned and pnidto its -t1ckhnld-
"r- - Yer cent IN dividends. being an average
years preceding ii. fail,rr Bnrins thn last
year OF two IL paid no dividends aud t,iter "a
very thorough examination. inadea low months
before it, failure hy "a special Government r,-
pert. he reported that IT. capital WIS impaired
To- H.. extent Il but a. p,r cont.
The capital OF IN. bank WAS So ilO.uOo Of
which owned about oue-tenth wn, there
fore. deeply interested not only ia making the
bank profitable but iu keeping IL sound. and IT,
failure was M much matter ol surprise TO me
a. To- the public.
With regard o. the large discounts made ~
the directors "A subject grossly distorted by your
correspondents IL should be remembered that
the law permits each director ~ De- a borrower
ltal. and that the capital was nn exceptionally
large one. and each Of the directors wa. the
holder OF n very large amnunt III i,s st,ct
iTh,se i,ons 49,. ia r,aiitv iii n,at, 80 -,
the panic Of 1873. ana Were M that time 80.
cured 10y coaterals fully worth the loans
The discounts L. myself and the other dire
tors made since the panic w,r. rem Snls
or reductions 81 these loans. or discounts 90