New-York tribune., 1881-11-19
THE SUSPENDED BANK.
THE SITUATION LATE LAST NIGHT.

The SITUATION LAlE Il LAol Ni'lii'
NO DECISION BY THE BOARD or DiRECroRs-DEPosI-
TORS SAID TO BE sAFE-MCCH Defending UPON
MR.. wrEKs-oplYIoY OF THE BANK EXAMINER
BosroN Nov. 1S.-The Directors of the Pacific
Bank were in session till O'Clock tonight Colonel
Ncedham. Bank Examiner, late in the afternoon be
gan an examination and consultation with the
directors The following statement was prepared
for publication:
Tho Directors Of the Pacific National Bank nave been
in consultation with Bank Examiner Ncedham ana hare
positive conclusion Another meeting VIII pc
held in the morning.
Subsequently,. however. Messrs Bcnyon and Need
ham, in conversation with representatives OF the
press made fuller statements concerning the
events of the day and evening. "Thc bank viii
not 30 on tomorrow morning" said Mr.. N"edham'
"but it reasonable to suppose, as II is within the
range of possibility and probability. that means
may he furnished to enable the bank to start again.
That will be determined tomorrow when the dlrcc-
tors decide whether to surrender the bank to me- or
to raise the money necessary to carry 1t through
its difficulty. At present it would seem 70 be
impossible for the depositors to lose cent. and
there is reasonable possibility that, in the worst
condition of affairs the stockholders Will get con-
siderable back"
Mr.. Benyon-The whole depends on Mr Weekss
ability to keep his head above water. Mr. Weeks
was mere llllS altlloOnf anu HIS 'oHii0' l'li'
ming made statement that several par
ties who are holding his indebtedness bad
already expressed willingness TO carry him. They
were going to see the rest Of the holders and they
were very confident they would be successful in
making favorable arrangements with them.
Mr.. Needham-Nir. Weeks's entire hope is based
upon his margins. If he Is right the bank IS right
Mr.. Benyon--An advance Of 10 per cent would
give him a large surplus lie has 81 600 600 in his
possession.
Mr.. Necdham-Yes, but man may hold
81, 100000 and owe $3,475,OO0. II has been
stated that Mr. Weeks has overdrawn half
a million. That Is not true HIS hab'hty
here is shown by checks drawn on other banks and
held by this bank. for which this bank has made
itself liable, and be is not good The Indebtedness
of this bank to the Central National Bank isyery
Mr. Benyon-They hold a great many of our
checks which they received yesterday, and which
they have not got the money for to-day. 1t l. not
Mr. Needham-But it is a large amount
Mr. Benyon-They took large number Of checks
yesterday which would have been paid this morn
ing if we could have done II.
Mr. Needham.-When raper publishes this
statement that bank has 100000 overdue paper
and reflects tremendously upon the character OF the
bank There is not word OF truth in that Mr.
Weeks is not borrower OF the bank directly; HIS
indebtedness is through other banks a8d the
acceptance of these checks for which this bank has
made itself liable don't believe the total Of such
Indebtedness would reach a million. Wchaye got 10
bridge over Weeks, and then we have to meet
this excited company of depositors who are coming
here to make demands on the bank have con
cluded tonight that one and quarter million dol
lars would b.idge the bank over. That
is the statement | just made TO tho directors
Al the same time suggested that they rls' one
and a half millions because the bank had better
pay interest on large surplus than find Itself
again IN this difficulty. lou may say this.
that there has been no fraud and there has been 10
man trusted 10 an amount OF Sj0G,oUJ
of accumulated overdue paper. Mr. Weeks
has been drawing through this bank on other
bank" Mr.. Beuyon said: lie has made
his transactions by drawing through several banks
which could name-goCd bauks-and these checks
have been paid regularly. Everything appeared as
Nh Porter had assured him of his integrity and said
that it would be impossible to make him tell an
untTuth. Colonel French had also indor-ed him;
" His securities continued Mr. BenyOu, were all
goOd-Eastern Railroad, Silver ls!ct. Water Power
Bonds and securities of that character. If he can
manage TIL the market moves 50 that lie can
sell those securities lac viii pay every dollar he
owes and ii The market would advance 10 per cent
he could have handsome surplus 1t Is not a lot
of wildcat he has been carrying"
Mr. Needham sad; "WHel / examined this bank
on the 1st OF January, Weeks was not here at
all. Everything he has accumulated here
in the way OF indebtedness has been
since then. lie alone is the party who Is going to
stop this bank, if it is stopped The loans far as
| can see, and did see when examined them, vail
compare very aSorably with the average loans OF
BANKS"
Mr. Benyon here stated that if he could have
got half million before opening business tins
said he met MIR. Potter, president OF
the Maverick Bank and four other
bank presidents this morning. He showed
them the securities and they were ready to advance
the money, but somebody raised the question:
whether If half million was suiliccntOr to-day
would not want more tomorrow. This led TO "A dis
cusslon which covered the time should have
been at the bank wlh the money, for meanwhile
the clerks came in aud could not be paid.
At the Central National BaHk from which
inst utiOn Examiner Needham stated a large
amount was due to the Pacific Bank, a
meeting of bank presidents was held Tonight They
viii undoubtedly agree tO advance a sum to this
bank which viii enable 1t TO go on.
IOT early detads W The suspension see Nrst page.