The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-13
THE EMBARRASSED BANKS.
The Reorganization of the First Ma.
tiOnal Now Almost Accomplished.
The Banking Company to Make Kno wn Its
Condition To-Day-The City National
Bank, of Lawenceburg.

the First National has met with such hearty
support that it is now almost certain that 1t Will
be carried into execution, and that speedily, and
this fact has done much to reassure the business
community and restore confidence where it was
considerably shaken. On Saturday the First
National was open all day and transact
ed its business usual, many
depOsitors drawing their deposits in full and
others only partially. 1t was noticeable that the
heavy depositors were not among those who
were after their money. The Indiana Banking
Company kept its doors closed all day. The
most important development On Saturday was
the complete dissolution of whatever relations
existed between the two banks. The First Ma
tional stock held by the other company was pur-
chased outright, the consideration being $751;
600, by the English-DePa syndicate, which
win at once double Its face value, making in all
about 1925. 900. in accordance with the new
plan. Nearly all tho other stockholders have
sgnihed their willingness to double their stock
AN OFFICIAL STATEMENT.
The status of affairs is best indicated by the
following official statement, furnished by Mr..
English:
1.-TWO important steps were taken yesterday in
the matter of the reorganization of the First Ma
tional bank. The first was the settlement of all
differences between that bank and the Indiana
Banking Company, and the entire and absolute
separation OF the two institutions. The Banking
company agreed to surrender all stock held by
them in the First National bank, and did sur
render one-halr of it yesterday, and the balance
is to be surrendered soon as certain payments
are made to relieve the stock which IS now held
in pledge for certain debts. The other step in
the line OF reorganization was an Important
meeting of the board OF directors of the First
National bank, at which the formal resolution
was adopted increasing the capital stock
carried out, WIN make 1t one of the strongest
banks In the country. The new stock Is to be
allotted pro rata among the stockholders, and
NOR that there was to be any freezing
ont Of the old stockholders in the transaction.
All stockholders stand exactly equal and they
are to decide within three daysfrom notification
whether they wish TO take their share of the
new stock or not. With the exception of the In
diana Banking Company stOck-say Sl50,00O-
all the stockholders seen thus far have elected
to double their stock, thus showing their entire
Over three-fourths of the stockholders have
been Seen OF course 1t oan@ot be said, with alb
soute certainty, that the reorganization will
Ike place under the strong management con-
| templated, but the necessary preliminary steps
| are being taken and the result Will be definitely
known very soon. Many kilograms were re-
ceived yesterday from leading banks all over
| the country, expressing the hope that the re-
| organization would take place as contemplated
apd Offering Unlimited assistance Mr.. DePauw
| left for home yesterday afternoon, but will
probably return on Monday"
RUMoRs AND THEIR FOUNDATION.
No sooner was it known that William H. En-
glish was one of the syndicate to buy the control
| ling stock of the First National Bank than a
number of exceedingly ugly stories were started.
The first of these and the one that had the
greatest circulation, was tn at Mr.. English had
caused the run upon the bank that caused its
| suspension for the purpose of prOfting by the
disaster that he had used John j. Cooper an
others who had large deposits there TO effect
| this design, and that the withdrawal by Mr..
| Cooper of the 100000 special deposit and of
| over 100000 more of State money that he had
| there, together with the withdrawal of $4,000
by another depositer and of S37, 400 by still an
otker, had formed the wedge that split the bank.
Mr.. English was told of the story that was 60
| ing a0ont, and said he could not understand why
any one should put into circulation a faisehood
of that character An officer of the First Ma
tonal Bank, when questioned about it, said there
certainly was no truth whatever IN it, and an
attache of the bank characterized it as "ridiou-
lOus." In conversation with a stockhold-
er OF the 6ank, yesterday, the re-,
done a generous thing in connection with Mr.
| DePauw il coming to the rescue of the bank
These two were the only men in Indiana who
could have saved the bank, and that they did
was the salvation of the business interests of Iu
| dianapolis. for had the doors of the First Ma
| tional remained closed this city would have re-
ceiyed blow from which it would take it at
| least five years to recover. This gentleman was
Of the opinion that If Mr.. English, VINO has nu-
merous enemies, had not been connected with
Mr.. DePauw in the matter-that is, il Mr.
DePauw had been alone-no such sorry would
have been started He further said that Mr.
English and Mr.. DePauw had made no more out
Of the, transactiOn than it was worth The
credit of the bank had been impaired,
and the stock was not intrinsically worth
as much as these gentlemen giving.
for 1t. Another gentleman, former officer Of
the bank, and one c0nversant with the present
| status of affairs, said that Mr.. English and Mr.
DePauw were doing what entitled them to the
gratitude of the entire community, He dsbe-
Conner In hot
connection, however. he said that the fact that
State and county funds amounting at times to
two and half million dollars or more were
taken as call loans, on which a percentage was
one likely to occasion financial cOnyulsons He
thought the practice that obtained in London, of
the hanks charging deposrors for caring for
such 1unds was the safer and the better one.
THE ALLEGED CONSPIRACY.
The cashier of another bank, when questioned
said no banker in this city believed it had an ex-
its depositors, and the stockholders were
all of them aware of that fact, and all
thankful. He knew that the part of the
story that Mr. English had been laundering to
get control of the First National Bank was nm.
true Mr.. English, he said, is too timid for a
banker and prefers different line of busine ss.
Since he left the First National, some years ago,
he has been free from anxiety and he only re-
turns to the bank melted thereto by the pres.
sure OF what he feels to he q public duty
AItOrne general HOrd, the story goes was
writing in his office on South Tennessee street
near the window when he heard the voices of
two men in conversation passing by upon the
sidewalk. One OF them said az wonder what's
the mater with the First National Bank1 heard
gentleman at the dinner table to-day offer to
bet that IT would Gloss It's doors Tomorrow"
Mr.. Hord preked mp his ears TO hear more but
that was all He put Oh his hat, drew a check