Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-11-19
THE TRUSTED DEPOsITOR.
He Overdraws His Account Several Hum
dred Thousand Dollars, Deals in Margins
and Smashes Another Bank-Boston the
Scene Of His Exploits this Time.

| and Smashes Another Bank-B Boston the
! Scene of His Exploits this Time.
BosToN, Nov. 18.-The Pacific National
| bank which closed its doors to-day has from
| its inception labored under disadvantages,
| and it has never been member of the Clear
ing house, and w. /. Benzen, its president,
| was unfortunate when connected with the
Exchange National bank in his tranactions with
R. Winslow. AS consequence, it is said
of their transactions the bank was not ad-
mitted to the clearing. 1t has been accus-
toned to handle drafts, etc.. through the
Elliot National banka member of the clearing
house. One day Mechanics bank received
| from country correspondent, for collection,
draft on the Pacific for $4,000. The check
was presented at the Elliot bank for payment,
as usual, but payment was refused on ground
that nthe bank drawn upon had no funds.
Their check was then taken to the Pacific
where it was stated that it could not be paid
then but would be paid before the closet of
banking hours. This promise was fulfilled
this morning. However Others came in un-
der similar circumstances and similar de-
mands were made, but unlike that of yesterday
the promises were not kept. The immediate
canse OF the suspension was the failure of TheO.
G. Weeks, who had been allowed to overdraw
his account. After the trouble of yesterday
meeting of the directors was called. 1t was
| held last evening and arrangements made
which it was thought would tide the bank
over its difficulties. The occurrence of this
morning overthrew all arrangements. It is
stated that large number Of checks were
given out on the Elliot bank, which mer-
chants, instead of depositing, went immedia-
| tely to the bank to draw.
The directors of the Pacific bank were in
| session till after tonight. Col Reed, home
bank examiner, late in the afternoon began
| an examination, and after consultation with
the directors, the following statement was
prepared for publication:
"The directors of the Pacific National bank
| have been in consultation with Bank Exami-
neer Needham through the evening and have
come to no positive conclusion. Another
meeting will be held in the morning"
Subsequently however Benyon and Needham
in conversation with representatives of the
press made full statement concerning events
of the day and evening. ''The bank will not
go on tomorrow mornings" said NeedhOm,
s'but it is reasonable to suppose that it is
within the range of possibility and probab-
ility that means may be furnished to enable
the bank to start again. That will be deter
mined tomorrow when the directors deter
mine whether to surrender the bank to me or
raise money necessary te carry it through the
difficulty. From the present standpoint
it would seem to be impossible for depositors
to loose cent, and there is reasonable possi-
iblity that in worse condition of affairs the
stockholders will get considerable back"
Benyon says the whole depends on Weeks
ability to keep his head above water. Weeks
was here this afternoon, and his counsel this
evening made a statement that several parties
who are holding his indebtedness had already
expressed their willingness to carry him.
They were going to see the rest OF the holders,
and they were very confident that they would
be successful in making favorable arrange
ments with him.
Needham says Weeks entire hope is based
npon margins. If he is right the bank is
right. II tine is allowed for the market to
rally his margins will carry him over.
Benyon-"An advance OF 10 per cent. would
give him a large surplus He has s4OO, 900 in
his possession"
Needham but man may hold S400,
600 and owe S347, 500. 1t has been stated that
| Weeks has overdrawn half a million. 1t is
not true His liability here is shown
by checks 1rawn on other banks and held by
this bank, for which this bank has made its
self liable. good deal of the Indebtedness
| of this bank to the Central National bank is
on account Of him.
Benyon--"They had great many of our
checks, which they received yesterday, which
they have not got money for to-day, but not
| $SOO, O,OOO."
Needham-"But it is q large amount
Benyon--"They took a large number oil
checks Yesterday, which would have been paid
| this morning if we could have done it,"
| The original capital of the bank, $500, 600,
lately was increased to 81 100000, and it is
understood the entire amount except SO ,00C
has been paid In, and q well known brokeri
said this afternoon that he was not surprise
at the sus pension from the fact that the Paci
| ic National was not In receipt of clearing
house privileges and was consequently liable
to suffer from unusual demands, and he did
not believe there was any defalcation or short
| age in any of the officers accounts.
| A Congre SIS street banker said he was no
surprised mt hearing of the suspension. With
| in the last twenty -four hours the bank offered
him its certificates of deposit at extraordinary
high rates and he refused them. Beyond thai
he had no dealings with the bank, and knew
nothing of its affairs. He heard the bank hat
13, ,O0O, GOO of its certificates scattered all ove
the city, and that this morning it had sus
pended.
Another account says the recent catastrophe
has been impending since January last, when
the Pacific bank began to carry Theo. z. Weeks
stock broker, who became heavily indebted To
the bank. At the meeting OF the directors lasl
evening it was found the Pacific National
had about S5OO,O0O overdue paper, all ol
which was held by single concern. Most
Of the paper consisted Of Weeks notes, and nd
when interrogated the bank people admitted
they had no money.with which to pay. An effort
to save the bank from destruction was MADE
this morning, when an offer OF support was
made by other bank presidents TO lne amount
could be offered. Certain collateral was OF.
fered by The Pacific, but not being considered
satisfactory, the promised aid was BOT given,
and the bank was obliged to suspend:
A prominent bank official said Weeks had
bean dealing extensively in eastern railroad
stocks Silver Islet mining stock and Erie
bonds. Weeks owes various banks In bost or
upward of s4OO, 600, all supposed to have am
| pie secufity; based on to-day's valuation e,
cept the Pacific.
/ A meeting is being heldat the Pacific with