Daily Kennebec journal., 1884-05-07
DOORS CLOSED.
The National Marine Bank in New York
Suspended-The Grants in Trouble.

| bank on Wall and Water streets. was an
nounced this morning j. ID. Fish is presi-
dent. About year ago the bank purchas d
the Booth theatre property. he clearing
house is now in session to consider the
pension. 1t is thought the failure is a bad
one. The capital of the bank is 100000,
and its statement of Sept II, 1888, showed a
surplus of Sl30, ,000 and undivided profits of
S62,345.
| Grant and Ward, an old banking firm,
state that the failure of the Marine Bank will
affect them seriously and they cannot see
how they can save themselves. They will
hold Sconference and issue statement and
notify the stock exchange of their inability to
carry on business for the present.
| A visit to the bank discovered some 80 dis
consulate depositors standing in the pouring
rain round the closed doors. No admttance
was given to reporters and mo notice" pasted
on the door. The bank open at the
usual time this morning, but before noon
closed abruptly, without assigning any cause,
| The stock market is very active, and there
seemed to be no connection between the fail
ure and the condition of affairs on the stock
exchange. Depositors, Judging from the ap-
! pearances of these about the building, are
well to do class. An explanation is promised
for this afternoon. 1t is said on the street
that the Marine Banks downfa is due to the
real estate transaction of President Fish.
Sometime ago he purchased the Booths
theatre property, and is now converting it
into stores. He is also interested in apart
ment houses.
| Director Gales of the Marine Bank says
there has been no defalcation or dishonesty
| in the mana cement of the bank. The prin-
cipal trouble is that the bank cannot realize
on some of its collaterals.
| The Evening Post says relative to the Ma
rine Bank failure, the immediate cause was
the banks inability to meet its debt of about
| $500, 900 at the clearing house this morning,
but causes lying behind this are presumed to
be the real estate transactions of the presi.
dent, Mr.. Fish. The matter may come be-
| fore the court.
| On Friday last it is said that Fish trans
ferred the building next to the bank, rs Wall
street, to the bank for $1,000. This became
generally known and the effect of the failure
was virtually discounted. In the clearing
house this morning the bank was debtor to
the extent Of $4,000, and Manager Camp
refused to allow the clearing house to pro-
ceed to give security until that amount had
been provided. Thus the clearing house was
delayed and although il was finally accom-
plshed, security having been given for $780,
600, the Marine Bank officials had decided to
suspend and at / l.30 the doors closed. A
Leading bank officials say that the condi.
| ton of the Marine Bank has been known for
some time. The operations of Fish and rep.
resentative brokers have been regarded as
snprofitable for a long time, and an applica-
| ton of the latter for loans at the savings
banks seemed to confirm this. 1t is not ex-
pected that the trouble will extend to other
| institutions, and hopes are entertained that
the trouble will cad with the Marine Bank.
| The suspension of Grant e. Ward is COM
posed OF Gen. U. s. Grant, James ID. Fish,
| u. s. Grant, Jr., and Ferdinand Ward.
Kiernan's Wall street agency says: 1--WE
| have investigated the rumor of the defalca-
ton and get the following statement: The
embarrassment of Grant & Ward is said on
reliable authority to be due to the absence of
one of the firm who has not been at his place
| OF bu siness since Saturday last"
Various rumors are ahost in financial cir
cles, respecting which Grant, senior member
of the firm, says: II cannot deny or corrob-
orate the reports current. We are nearly
s5UO, 900 short. Our stocks are locked and
until we can fnd Mr.. Ward cannot say how
we stand.
After the announcement of the suspension
of the Marine Bank. rumors were rife on
| Wall street that other failures would follow,
and it was reported that the Nassau, Metro
| politan, Garfield National Bank and the Bank
of the Republic we're embarrassed. Inquiry
at the offices failed to give any verifcation
of the story.
/ The executive committee of associated
banks this afternoon decided to drop the
Marine Bank from the association and cut it
off from all further privileges of the clearing
house.
| Cbas. F. Elwell, vice president Of the bank
said The bank is solvent, and there is no
reason why it should not go on. The trouble
was all brought on by the dealings of the
! bank with the firm Of Grant G. Ward. On
/ Monday the cashier was authorized to certify
checks of Grant & Ward to the amount Of
/ $3.50. 600, il being understood that the firm
would deposit security in the forenoon to
cover the Indebtedness. They failed TO make
! the deposit in the forenoon, and when the
checks were presented at the clearing house
there was nothing TO iaeet them with In the
bank. The accounts showed that the bank
owed . balance of s555 900 to the clearing
house, but this was reduced 70 1888, 900 BY
the discovery that there were among the
checks presented over S200, 600 in uncertified
checks Of Grant G Ward. The bank made .
payment TO the clearing house Of e2l0 900 in
cash and the remainder in valuabl securi-
ties, thus dischasging The debe. The surplus
Of The bank il e260.0o0. Fish must have