New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-12-09
A RANKS CAPITAL IMPAIRED.
, RECEIVER ASKED FOR, BUT NOT NAMED.
TIE PRODUCE BANK GIVEN DAY OF GRACE-IIs |
nrpnSIToRs TO BE SECURED.

--
DEPoSITORs TO BE SECURED.
An order was issued on Thursday by Justice Law
80 of the Supreme Court. directing the OFFICERS
90 the Produce Bank. at Barclav-st and CoIlegt
nlaee. TO show cause why the bank should NOT "
fiSSo1ved and a receiver appointed. Yesterday
neonty Attorney General John c. Kecler moved fol
the appointment of receiver He stated that ~
July last, Bank Superintendent Paine had reporteu
o. the result of an examination of the bank that It's
CAPITAL stock, which was Sl2o,OVU nao pegn III
paired TO the amount of $26,4S2 o.; The bank wa
ordered 20 make this good, but had not done 50
aud the suit had therefore been brought. MI,
Keeler added that further examination IN ~ "
vember had shown an impairment OF the caPl''i ~
Ichn T. CaEwadader. in opposing the motion, said
in behalf of the bank that the institution du
good the alleged deficiency by reducing no II "a
from 81 % 600 to 100000; that a mistdho va
so 600 had been made by the examiner I't a.
tam assets had increased III Nalne, HI t ,inaG ~
bank now in proper eond in Oh Senositms oi
if left alone 1t owed Sl54,OOo 10 R ., w.
whom there are about 400 ana II n:u 10 p O.ei
creditors except the Continental NaIlouai pan
md he and the directors of the Produce Ddnh were
HI o o' - rescne If bv putting $i54,O0O, aud
Wo Id ask the depOsitors 10 can lol tlo4i tt w.
morrow Nil CadwadadeT SneH IA nnt .h;ect 70 The
d., ,,Ionosed namely to deposit iii the bank the
noI,i,t due depOsitOTs about $loOOOUl oy to-ul9r-
row and 10 inform them by circular TO get thelr DC,
,oS,ts The money 20 remain subject to their call
uutil all the deposits were lalu. ~ ~
Several aiiidayits were then read. In one - H.
Pcndcrgast, the president or tue Produce bank,s
said that in making up the alleged impairment OF
he capital $4,000 was an error and should not
have been Included Inc God deciecy dS a1eT f. tbs
5s.-ts aud property of the bank between July and
November Mr. Pendefgast added that without
The aYpointnemt of receiver all OF the debts ana
iabilitics of the bank could he absolutely dls,
charged, while the appointment of a receiver WOulI
he fatal both to the dePoslOrs and the CREDITORS Oh
the bank {. c. Baldwin, director OF tue Dank,
81 tsj that the bank was prepared TO pay on demand
al OF its deposits, amounting TO about SloO,oVo;
ElDlund d. Randolph; president OF the men IA
\ Al atl ip affidavit
u. ace the Produce Bank in the hands OF recover
oud be injurious to the deposltors, S'ocAHoiueIS
Vr. Kecer said that the anldavits referred TO the
July examination, and not that OF NOVemDeI III
winch deficiency of $Sl 900 was discovered; thll
tie reduction was not properly earned OUT ana
f,ot a receiver should be appointed, because only
lie tepositors and not the stockholders lsome OF
whom have protested against the IeuneuG?n % of
Sl54 900 Justice Lawrence denied the motion Tor
III, appointment of receiver on the CONDITION that
money t. pay the dep0Sltors should DC PdId LAUo
Inc following nolice was sent to the depositors
last night:
meeting of the directors of this bank held this day,
depositors win paid fu iii demand ard you are re-
Guested to withdraw your deposit without delay
If is understood that the Continental National
Bank. in accordance with the statements OF us
officers and the order of the court, mas suPpGo the
money to pay the depositOrs on demand. fresi-
dent Randolph said yesterday:
The Produce Bank has amply sufficient 10 pay Its
deposits and, think. about 90 per cent OF It's stock
have had occasion inquire into the affairs or the BANK
several times ana satisfied that iny estimate Is not
far wrong. We simply purpose 10 save the bank from
wreck aid in paying the deposOrs this bank is fully pro
tectei from loss The Produce Bank simply goes into
r.. I, Woodward, of Woodward, Baldwin & Co.,
one of the directors of the Produce Bank, said that
the stockholders would receive not less than 90
per cent. He added:
There has been time any question in rsard to the
ability OF the bank 10 pay It's depostor9'
since the examination in July, when We were
Told thai the bank behindhaDd, there has been
grdual withdrawal of deposits, tlat now they are
only about Sl54ogO II the bank should receive fron
ne city the fu amount its claim IL would be able 10
return TO IL. stockholders considerably more hau lOO
cents a dollar. , 4,
large sums Of money to the contractor on the XIV
eIside Park on assignment of his claims for WORK
AGAINST the city. The full amount due from the
clty is said TO be about O,O0O. The bank mas
offered to settle the matter for about one-haf, and
tho city has offered to pay $lOOOOO, Out no agree
ment has yet been reached ,n,u,..
a new bank. which will be called the Washing
ton Market Rank. will be established il is under
stood by the prominent stockholders OF the Produce
= Bank aud in the same interest.