New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-02
CAUSE OF TIE BANK SUSPENSION.

CAUSE or TIE BANK SUSPENSION.
GREAT CONFIDENCE IN MIR. HAIGu FELT. BY THE
BANK ogricERs.-AMoUNr OF Ills PAPER Held
CONDITION OF TIE BANK on DECEMBER 10.
The Grocers' Bank. al No. 80 Barcay-st.,
has suspended business in consequence
mainly, 1t is understood of the recent
business embarrassments of J. LoyG Haigh, who
il largely indebted TO the bank. At special
meeting of the directors, held after the close OF Dls-
ness on Wednesday. 1t decided, after an exain-
nation of the banks affairs That the interests OF all
concerned in the bank required that IT should be
placed in liquidation. The announcement is said to
have caused much surprise among some OF the
directors, who until then unaware OF the real
condition of the bank.
The Grocers Bank is State institution
and its President. Charles DenisOn and other
officers, are asserted to have bad the prin-
cpal charge of all its affairs. Mr.. Denisop
VIII be one of the largest losers by the
liquidation, as lie is the largest stock
holder His father was of the founders
of the bank, which is among the Oldest IN
the city, Ii was small institution, and il has not
been considered one of the strongest banks and IT
has not paid a dividend Tor three years.
The original capital was 100000, but this
was reduced to SS22J,O00 within two years. About
tie time that Mr.. Denison became president, the
]
consequence of the real estate investments of ex-
Collector Thomas Murphy who WAS indebted to it.
The cause of the present difficulty is the large
amount of J. Lloyd Hagis paper held
by the bank. The amount is estimated
from $4,000 to 100000, nearly one
ihnl Oi sir. Hdigils entIe haDliiues Ihe
bank has security ior the discounted paper. but
9ome of 1t is asserted be of doubtful value while
very little of it IL available at present Oh ction
10 some OF the seCarity accepted hte ~ made
recently by of the directors, but officers Of
the bank had great confidence in the wealth
aud financial soundness of Mr. Haigh and his recent
assignment for the benefit of his creditors caused
them great surprise. They claim that the affairs of
the back are III such condition that all its hab-
tiles will be paid fun, and that surplus will be
left for division among the stockholders.
BY ITS last quarterly report. which showed the
condition of the bank to December ID. the liabili
ties are given as follows:
Capital stock 1925, 600
Surplus undivided profits 3s,323
Due depOsitOrs demand Observation-Disclosures. ~ .424
Dao to trust companies and other banss... 140,S39
The total liabilities. exclusive of stock, appear
by this statement to be $900687. 1t then
had loans and discounts amounting TO
ssG34,OS4, among which were included $50, $50
due from directors, real estate valued at
$50, 126, and stocks and bonds. bank notes and
specie amounting to $61,926. Its loss account
amounted to 14763. and it had cash items
amounting to $50 1926.
At the last sale of the stock Of the bank it was
quoted at IS. The report to the State
Department in March last. showed a surplus of
SIS 200. Tae present president, Charles Denison,
succeeded Samuel X. White about two years ago.
The last dividend paid by the bank was 3 per cent.
The bank employed twelve clerks.
Mr. Denson could not be found at his
residence last evening. To TRIBUNE re-
porter who inquired for him the answer
was returned that Mr.. Denison had gone out.
early in the day, leaving word that he shOald not
return at night No information as TO where he
might be found was given.
TnEFILURE OF Mr.. HAIGH.
Mr. Haighs failure, the particulars of which
we're published in Tuesday TRIBUNE, caused
much surprise in the iron and steel trade.
as he was generally considered TO be very
wealthy He had the contract for the supply OF
wire for the Brooklyn Bridge at 1891 600.
He also furnished the wire for ocean
cable and for the Erie Canal Towing Com
pauy His princpil factory in Brooklyn.
but he had also a small one in Morrisania At the
lime Of bis suspension he had large brick fac
tory IN course of erection the latter
building. His agreement for the supply OF
the steel for the bridge wire was with Anderson d
Co.. of Pitts6urg, and one Of its conditions
was that all the steel which did not fully
meet the requirements of the contract with
the bridge company should be laid aside
The result was that steel worth about
100000 remained after the contract had
been completed. The Bridge Company paid the
amount of the contract, but the unadiusted
matter with the PittSburg Company together
with the expense of the new Improvements which
Mr.. Haigh had undertaken caused a pressure
that he could not stand. His indebt-
ednsss to Anderson & Co. is san TO be
$4,000. After consulting with some of his prin-
cipal creditors he unwillingly made an assign
ment. William X. Foster being his assignee. HIS
total liabilities are estimated at $500, 000 while his
nominal assets are $4,000. HIS assets consist of
real estate and factories in Brooklyn and
Morrisania machinery, steel and wire
on hand and open accounts. Mr.
Haigh says that he fully expects to pay dollar fol
dollar.