St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-11-29
THE MIDDLETON BANK.
A Black Friday for Middleton over
the Failure of the Middleton
National Bank.
Full Description Of the Manner in Which
the Man Brown Worked President
King.

PORT JARVIS, ". Y, Nov. 2s.-To-day Is a
terrible black Friday for Middleton. Ugly
rumors were on the streets yesterday. Moth
ing could be learned, but il was evident a
big failure was at hand. The bank has a
capital stock of $500, 900 and a surplus fund
of Sll5,000 The president, Thomas King,
was considered one of the ablest dnaneiers
of the country, and the bank was looked
upon as one of the solidest in the state. No
statement is yet published The entire
capital and surplus is wiped out. President
King is at home completely prostrated. He
will make no statement except that all blame
was on him. The run on the savings bank
quieted down when the depositors found
all their money forthcoming. The directors
announced all demands will be met. The
American Loan and Trust company sent up
$4,000 In currency, aud the First
National also helped. Bank Examiner May
arrived at noon and this notice was posted:
'Tnis bank is in the hands of the national
bank examiner. No business will be done
except the collection of matured papers ~
All banks in the county have slight balances
on collections, the highest being the High
land bank. Of Newburg. $1,000. All these
will be paid. The comptroller learned in July
that Brown had been borrowing largely from
the bank and notified the directors that
Browns credit and Indebtedness must be
reduced at once 10 point which should com
ply with the law, and the directors did. At
the same time President King was notified
that further credit must not be given Brown
This II GnnrkOsfsd Dr.s
it seems King has given him credit
in private manner as follows
Brown drew time drafts on different parties,
with whom he was doing business at various
points east. Accompanying them were bills
of lading. Those were sent the Middle
ton bank, with instructions tue bills we're
not TO be delivered until the draft was paid =.
King was in the habit of allowing Brown to
take the bill of lading TO collect, and did not
turn over the money he collected, ami when
the drafts came due the bank had TO provide
Tor tncm. King kept private memorandum
OF Browns account, and not till
he saw ruin staring him in the face did he
confess To the directors. This was on Tanrs
day Last week. Brown was summoned and
promised to secure the bank, but failed
Every effort was made 10 tide over, but they
were unavailing. Browns Indebtedness is
not positively knUwn, though it will be over
$50, 900. The directors SAYS all depOsitors
anu creditors except the stockholders will be
paid in IulL. Huston q Conkling, dealers in
grain and millers, andC. {. V. Ketcham,
wholesale grain dealer, have made an
assignment. Both had heavily en-
dorsed Browns notes. There are many other
losers. Brown is a native of Orange
county, formerly a miller at Burnside.
While here he engaged in wholesale grain
operations. He went TO Indianapolis aud
built an elevator and later built an elevator
at Burlington. Brown was on the wrong
side of the market and the recent decline
swamped him. The board of directors Of
the Middleton National bank have unani-
mously petitioned the comptroller of the
currency 10 appoint Moses Stivers receiver.
Mr.. Stivers is senior editor of the Press, and
for fourteen years was collector Of internal
revenue for the Eleventh district.
INDIANAPOLIS, Ind, Nov. 2S.-W. H.
Baker, in charge of the business of B. d.
Brown. Of this point, is unable to furnish
any information concerning Browns con-
nection with the Middleton, n. Y, bank
failure. The business here is conducted
under the name of B. ID. Brown, is indie
pendent Of any Of the other numerous con
Germs in which Browg is interested, and is
said to be entirely solvent Brown is ex-
tensively engaged in business ventures at
at several points in Illinois and other
western states. The style of the firm being
B. ID. Brown & Co. He is principal
proprietor in firms owning and operating
elevators at Paris, Weldon, Hammond and
Newman, Ills, and also at Burlington, Iowa.
He also has business interests in Chicago,
Boston and West Point, Neb., where he is
senior partner of the firm operating an ele-
vator, bank and large dairy farm. Baker
knows nothing as to the condition of these
various enterprises, but confidently asserts
that the business in this city is not only solv-
ent, but has a considerable sum TO its credit