Savannah morning news. [volume] (Savannah) 1868-1887, 1884-11-29
A NATIONAL BANK FAILS
ITS PRESIDENTS MISPLACED
CONFIDENCE THE CAUSE.

Disobedience of the AdmOnition of the
Directors Gives the Affair a Bad Col
oring-The Erring Officer infatuated
with Bold SpeculatOr-HIany Tbou-
sands in Concealed Acceptances.
MIDDLETOwN, n. Y, Nov. 2S.-Tbe
Middletown National Bank has failed
and its doors were closed this morning.
The failure was caused by It's President,
Thomas King, who accepted large drafts
from Benjamin d. Brown, a grain dealer
OF indianapolis, Ind, and Burlington.
Iowa, without security. Mr.. Brown has
made an assignment. The capital was
100000, and its surplus $4,000 The
extent Of his loss Is not yet definitely
known. DepOsitOrs will lose nothing.
President King takes all the blame on
hlmself. His recent advances were made
without the knowledge of the other
ohcers and directors of the bank. An
examiner is on his way from Washington.
There was slight run on the savings
banks here, but the latter is in no way in
YOlved and Will stand the run easily.
President King was considered one of
the ablest tinanciers in the country, and
the bank was looked upon as one Of the
most solid in the State.
The run, which started on the savings
bank, quieted down when despositors
found that their money was forthcoming.
Inc directors had announced that all de-
mands would be met. The American Loan
and Trust Company sent up 100000 in
currency, and the First National Bank
also helped.
Bank Examiner May arrived here at
noon, and the following notice was dis
played: "This bank is in the hands of
national bank examiners. No business
VIII be done except the collection of ma
tured paper"
All the banks in the county have slight
balances on collections, the highest being
the Highland Bank, of Newburg. with
$4,000. All these will be paid.
The board of directors of the bank have
unanimously petitiOned the Comp
troller OF the Currency to APP
point Moses ID. Stivers receiver. Mr..
StlVers IS senior editor of the Press and
for IA years was Collector of Internal
Revenue Of the Eleventh district of New
York.
Houston & COnkling, dealers in grain
and millers, and c. G. n. Ketchum, a
wholesale grain dealer, have made assign
ments for large amounts. Both firms had
lndorsed Browns notes heavily. They
have made no statements. There are
many rumOrs of other losers.
THE BANK EXAMINER IN CHARGE.
Dam LAdllluGI NGOE2e l.. MAY. OF
Washington, is now in possession Of the
bank. In July last the directors notified
PRESIDENT King that Mr.. Browns credit
must not be extended, but reduced. Mr..
hlng dlsObeyed the instructions. and the
bank has gone under. The record of the
acceptances of Mr.. Browns drafts on the
bank were kept by President King in a
book Which-he kept in his own possession
ana concealed from the other officers. So
lar as known more than 100000 of such
acceptances are out. 1t is the opinion of
the best informed that the entire capital
and surplus of the institution will be
wiped out. The directors are County |
Judge John q. Wilkin, United States SEN |
atOr Van Wyck of Nebraska. Col. ID. G.. |
Dusenberry, Hon. w. II. Clark, HOratio |
X. Wilcox, A. II. Vail, L. 7. Hayes, Presi- |
dent King and Cashier Daniel c. COrwin. |
The run on the savings bank resulted in |
$4,000 being paid out to-day. The bank |
Is solvent and ready for any emergency.
President King is at his home very ill. 1t |
is not thought here that he has profited by |
the transactions, but that he was infatu- |
ated with Mr. Brown. The latter's oper- |
atlons have been very heavy, as much as |
100000 of his paper having been handled |
by the bank in a single week.
COMPTROLLER CANNON's ACTION.
WASHINGTON, Nov. 2S.-Mr. Cannon. |
Comptroller of the Currency, said to-day |
IN answer to inquiries in regard to the |
failure Of the MiddletOwn National Bank, |
of MiddletOwn, y. Y, that he learned of |
the trouble in the bank last Wednesday |
evening, and ordered a special examiner |
to proceed to the bank at once and take |
charge of it. The Comptroller also said |
that on the report Of the examiner in July |
last it was discovered that King, the |
President, was borrowing largely from |
the bank. The directors were immedi. |
nf01x~ firI+ IoI,4
KING should be reduced to point to COM |
ply with the law. Information was sub |
sequently received that this had been |
done. The Comptroller, however, under |
the belief that the bank was not being |
iudiciOusly managed, notified the direct |
Ors that its charter would not be extend |
ed, and that, as The charter would expire |
in few months May, 1881, steps should |
be at once taken To liquidate its Indebted |
ness. The Comptroller said, further that |
unless, through the action of Mr.. King, |
the bank has been crippled very recently, |
he did not think there would be serious |
loss to tne public through its failure.
INsOLVENTs ARRESTED.
CANTON, Miss, Nov. 2S.-Alfonzo Sta |
deker, of the firm of j. Stadeker & Son, |
which failed Nov. 10 for 500, 900 with as |
sets of $25,000, and his brother Henry, late |
clerk for the firm. were arrested to-day on |
creditors of Stadeker 81 Son by conceal |
ing goods and other assets of the firm. |
They were admitted to bail to appear for |
examination Tuesday.
AN ILLINOIS BANK IN TROUBLE.
CARLINvILLE. ILL, Nov. 28.-The First |
National Bank of this city closed its doors |
to-day for the purpose of making arrange |
ments to go into liquidation. DepOsitOrs |
Will be paid in full.
THE TOTAL OF THE WEEK.
NEW YORK, Nov. 2S.-The business |
failures occurring throughout the cOun- |
try reported to r. G.. Dun & Co.'s Mercan- |
tile A oencN nnmher for the Last MenlL in |