The sun., 1883-12-09
WINDING UP THE PRODUCE BAxx. 4
speedy Aetisn te Avoid . Reeeiverstip-A
New Bank 90 be started

A suit has been begun by the Attorney
General for tho dissolution OF tho Produce Bank
OF this city and for the appointment OF a rc-
ceiver. 1t is charged that In July last. when
tho affairs OF the bank werc examined by the
Superintendent OF tho Banking Department II
was found that its capital OF s125 900 had been
reduced by impairment SIC. .07. and that tho
bank had failed up TO Nov 80 to make good the
deficiency.
Tho case was before Judge Lawrence yestcr-
day afternoon upon motion for the appoint
ment OF n receiver. It was alleged in opposi.
ton to tho motion that the bank was prepared
TO pay oil It's depositors on demand. tho amounts
due them being not more than t150.000 that
the appointment OF u receiver would ruin tho
bank. and postpone tho payment OF dcpositors
for two years. and that the capital has been
reduced to $t00, 900 and the deficiency moro
than made UP.
Judge Lawrence denied'thc application. pro-
vided that. as had bcen proposed there bo paid
to the bank on Monday tho amounts at that
time due to the entire deposit account. and that
such amount be held rs separate trust by the
bank to pay its depositors on demand.
ciiad ID to put tho bank in liquidation. In order
TO comply with the agreement mado IN court,
the bank deposited with the Continental M.
| tional Bank funds and securities sufficient to
si5iooO. notice was mailed 70 each deposi.
Board OF Directors. and stating that all deposit
| tors would be- paid in full and requesting them
| to withdraw their deposits without delay.
| The troubles OF the bank date back several
years. and arose from large advances made TO
as Bank Ei TSa
as security un assignment OF Decker's claim
the city haa paid slOs. 600. and sI7s 900 has
been In dispute. Recent conferences between
hank resulted in a nropo,sitlon from
$lOO.0OO. The bank held out for s125, 900, and
| the matter is still in stntu quo: director OF
| the hank said yesterday that " tho bank should
accept the amount offered by tho city It's stock
put that il the full amount Of the claim could
bo collected the bank would show handsome
| surplus. The bank, he said. had not lost 81 600
| In the last two years. It's business hns do
| creased owing to its complication with the city.
| 1t was subject to a run about two years ago on
| the sGme account.
A banker conversnnt with the affairs OF the
institution said last evening that tho bank
| could have obtained settlement OF Its claim
| against tho city u long time ago had its man.
nEeinent seen iit to utilize potent political in
legitimate, It had declined to doso. The capital
OF tho bank is 100000 1t made it's cearnnces
| through tho Continental National Bank, for
| which reason that Institution was selected MS
the depository Of its assets to an amount SUM-
dolph of the Continental Bank snid that he had
examined the affairs OF the Produce Bank. and
was convinced that IL could have continued in
business hn, the claim ngans the city been
| settled in full. ono OF tho large stockholders
said that a now bnnk would be started at oneo
l'roduce Bank to be known as tho Washington
| Market Bank.