Morning journal and courier., 1880-01-02
A MELANCHOLY STORY.

Few bank failures have had more important and melancholy results than the failure of the City of Glasgow Bank, which occurred about fifteen months ago. Some idea of the char acter and extent of this disaster may be gained from the report of the liquidators of the bank recently submitted to the shareholders.
 When the hquidators began their work, October p, 1878, the total liabilities of inc bank were about $64, ,00O, 900 and the assets about $38, 1000, ,0oO, leaving deficiency of about $26, ,OOO 900. For this amount each shareholder was jointly and seyerally liable to the full extent of his property. Though he had but single share and though his title wes that of 8 mere trustee without benefit to him. self, he could be compelled not only to pay his proportion of the banks debts but to give all he had to make up the deficiency of fellow shareholders who were unable to respond. The liquidators, as was their duty, have held the shareholders to their responsibility, and the result has been widespread financial ruin. From the assets so far about $24 GOO, 900 have been realized. November Is, 1878, the shareholders were assessed pro rata $500 for every $1OO of stock or, $21 ,O0O,0 ,00O on the outstanding capital of $4, 100000. This first assessment alone exhausted the means of many of the shareholders, and at the time the report was made up it had only yielded $1O,- 500, 900. In March, 1879, a second assess ment was, therefore, laid on the shareholders still solvent of g., 25O per $100, amounting altogether to $39, 100000. This assessment has produced $11, ,5oo,oo making altogether about $22, ,OOO, 900 to be added to the $24, ,000,- GOO collected from the banks assets, or $46,- GOO, 900 toward paying the $64, GOO, 900 of debts Preferred creditors took 5000, ,00O of the money, and the expenses of the iqui- dation $500, 900 more. The general creditors have been paid $37, ,OOO, GOO, or two-thirds the amount of their claims, leaving about $1s,- 500, 900 still to be provided for, without counting interest. The uncollected assets of the bank will, it is thought, produce $14,- GOO, GOO, leaving $4, ,5OO,0 GOO and the interest to be contributed by 269 shareholders out of the original 1,s19, the other 1,55o having been completely ruined by the two calls al ready made. The liquidators expect to make another dividend of per cent. to the credi- tors very soon. It must be admitted that they have done their very disagreeable and ruinous work promptly and thoroughly.
 What the failure of the City of Glasgow Bank meant to many is wildly shown by the action of 599 of the shareholders who were unable to meet the first call made upon them They applied for discharge of their obliga tions on making complete surrender of theil estates. Most of them also offered, with the assistance of friends, to pay the value of theil estates, on being allowed to retain the same Before accepting these offers statement wal required, verified by a declaration before Justice of the Peace, according to printed form, in which, in reply to series of queries information of the most minute character wal demanded from the persons liable, as to thei means and estate, and their expenditure sine the stoppage of the bank. The information thus supplied was subjected to careful exami nation, and after the basis of an arrangemen had been adjusted with each contributory, was submitted to a committee on contribute ries; and after it had been approved by tha 1 committee it was submitted for final sanction by the court. Thus nearly six hundred per sons were deprived of every dollar they had a one fell swoop, and the settlement of the bank affairs will prove the ruin of more than fftee hundred who depended upon it for profit.
 l We'll secured as the creditors of the City c Glasgow Bank were by the banks own share holders, they seem also to have hold upo
 the shareholders of another bank, the Caledc nian. This bank held g., 900 worth of City c Glasgow stock, and thus the shareholders i that bank became liable for the debts of th
 City of Glasgow Bank. Consequently the
 began selling or transferring their shares irresponsible parties in the hope of escapin
 assessments. Learning this, the hquidatol
 of the City of Glasgow Bank requested tn directors of the Caledonian to take steps fo closing their register of shareholders. Negotis tions ensued which resulted in an agree
 ment that petition for winding up tn
 bank should be presented, as the only mean available for having the register closed, an the process of substitution of probably in pecunious for substantial shareholders ar
 rested, Considerable delay took place unde this petition, in the course of which the COT stitution of the Caledonian Bank was altere
 to the effect of preventing any transfer (
 stock without the approval of the Board (
 Directors, and the petition for winding u
 was withdrawn. To what extent the shar
 holders of the Caledonian Bank will suffer r
 mains to be seen.
 No oAe can realize the misery and distres
 caused by this failure. Those directly r
 sponsible for 1.-the directors of the bank
 are!now undergoing punishment in prisol
 but this fact is small comfort to those whoi property is gone and who are suffering u bangs of poverty and Encouragement.