Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1880-01-23
THE GLASGOW BANk.
Report of the LiQuidatOrS of the City o,
Glasgow Bank-The Misery Caused
by the Process Of Paying Creditors,

City OF Glasgow Bank carries good
deal further one of the most painful
stories ever told in modern times. As a
mere business statement, and apart from
the glimpses it gives of widespread
social ruin, the report may be regarded
a. singularly satisfactory. The bank
closed on the second Of October, 1873,
and its unfortunate shareholders re-
solved ON voluntary liquidation TWEEN
ty days aiterward. They already saw
ruin before them, and this report tells
how wide and hopeless it has been
When the bank failed lis debts to &c
positors and others amounted to ele.
sos go. The assets were not known
During the first year of the liquidation
the sum of FL 500 66 has been realized
from these assets, and &, 452 500 has
been collected from the unfortunate
shareholders. OF this $4,000, 600 odd a
little more than 100000 has been ex-
pended i'll the costs Of liquidation, and
the rest, with the exception of il bal.
ance Of 9150,000, has been paid to the
creditors. The preferable and secured
creditors have received over Il 800 coo,
and three dividends, making together
Is shillings and t pence on the pound,
have been paid to the unsecured credit
ors. absorbing rather more than
e. ,2o0,0O. The remaining debts amount
i'll round numbers TO 9S $40, COO, and the
assets, with the sum still to be recov-
cred from the shareholders whose means
are not utterly exhausted, amount to
about 94,30S,000 leaving balance of
f46S 600 to meet the interest payable
IL. ~ ,rtl ~ l,,,, II
alton. These figures are regarded by
the liquidators as leaving no doubt tina;
the creditors of the bank will eventually
be paid in full. They promise that a
further payment shall speedily be
made which will bring up the total Of
the dividends to 10 shillings on the
pound; hut the shillings may be post
poned for considerable period, as the
further process of liquidation, which
consists first of the disposal of assets
very difficult to realize, and second, of
the further squeezing of II fast dimn.
J isning list of contributors not yet ALSO
lutely ruined, will necessarily be te-
deus process.
TIE terrible story of the recovery OF
this 100000 from the shareholders
Of the bank is full Of suggestions OF
suffering and ruin. The list of the
persons liable to contribute consisted
Of 1879 separate individuals. There
were only 1908 shareholders in their
own rig t, and there were 1872 bodies of
: trustees which comprised Ash individual
/ names. There were los persons who had
, been brought in by holding stock belong
ing to their wives, ond thirty-four share
! holders or bodies Of shareholders. in
the second week Of November in 1873
all these people received call to pay
$500 ON account of every G100 OF stock
!, they held in 80 bank. The amount
a thus called - rs e4,000.Q00, and a.
Of f bad rsaedd little rhe less sse .nad
call was made in April last, and
! amounted to n demand of 2,250 for
every Zoo of stock. By the time this
was sent out The number of contribu-
I tors had seriously diminished. Litiga.
! ton lad resulted in the removal of sew
eral names from the list; others had
been entirely ruined by the first call,
1 and the second call was, consequently,
, sent to only SIS persons. It's nomna
amount was nearly fS,000,000, but it
had only realized at the date of the re
port little more than 60 100000. The
list seems not to haye undergone much
diminution by the dishonest course Of
running away. There are only half q
iozen whose addresses have not been
discovered and there are eighteen
who since the stoppage have
left their places of abode and have not
been traced The first call was paid IN
full by 442 of the shareholders and 70
bodies Of trustees; even the second call
found IS persons and q bodies of trus-
tees able to discharge 1t, and there are
, still 6S who are expected to pay it in
full eventually. A large number seem
to have made their peace with the
liquidators by giving up the whole Of
their property at once. Of these sos
did not possess property enough to
enable them To meetthe first call. They
paid about 80 per cent. of ii, and had
, then to ask for a discharge. Some paid
the whole value of their estates by the
help of friends, and were then left in
undistufbed enjoyment Of them. Others
made a complete surrender OF all they
possessed TO the liquiddtors. The first
call resulted in folty-eight bankruptcies
in addition to these settlements; and
there still remain about forty cases in
which it is expected the full amount
will yet be paid. The second call seems
scarcely to have been SO crushing as
the first. The poorest had been weeded
out. There were, however, $40 contrib
utors who could only pay half mil
lion out Of three millions and a quarter
demanded from them, and were then
u
call were only five. Under each call,
however, there remain considerable
number OF cases which have not yet
been dealt with, and the whole amount
of tie ruin spread among these 1000