The Evening critic. [volume] (Washington, D.C.) 1881-1885, 1884-10-03
Bedding, DR.
Stand, 8O1 M
lection should be Made
Cash Prices Guaranteed.
Space, 3O8
RUNNING A BANK,
The Mess That the mIddictons Made

The Mess That the MIddIctOns Mado
orr
A report has been filed by General Frank
Morey, receiver for Middleton Il CO.'S sus.
pended bank. tits n part Of the equity cause
OF Mrs. Eliza @. Hutchinson against the defunct
concern. The report shows that great deal
OF worthless mining ana other stock has boon
found and that but very little OF property re.
manned In the title OF the firm upon which
cash can be realized.
-. 1t was early discovered by the receiver that
there was very poor eystom OF bookkeeping
employed by Middleton Co. They did not
follow the custom OF striking n yearly balance
showing profits and losses, but simply ran
along like q ship In midocean without rudder
or compass. No one about the concern could
tell how II stood. The accounts between the
bank and customers were kept intelllgently,
but those between the bank and proprietors
were not.
The bank dealt heavily In stocks, but tho
books only showed tho aggregate losses, un-
der the title of ''stock Suspense HccoInts,"
footing up 1927, S0S.d0. A long list OF accounts
under the head of "Indebtodness on open Ac.
count shows losses OF margins by parties
dealing through the bank. II seems that the
bank took all these losses OF customers. No
wonder tho bank failed.
For years the bank had been growing weaker
and weaker, the receiver finds, "but the great
confidence reposed In the firm, and tho sup.
posed conservative methods pursued by II IN
the conduct OF lis business enabled IL to Sc.
cure" he says, "unul within n brief period
prior TO Its failure, a continuous now OF money
into the Golfers OF tho bank to an extent that
enabled them to continue business, the deposit
OF 'Peter' being available TO pay the draft OF
Paul In order, however, to meet the con.
tinued drain on tho resources OF the bank, the
various securities OF tho bank and its custom.
ers were sold or hypothecated from time to
time TO bridge over immediate necessities,
until, when tho bank closed It's doors, It's
vaults had boon emptied OF almost everything
OF value that could be sold or hypothetical.
Five days prior 10 the suspension OF the firm
an assignment was made by them TO L. Dlch.
man, OF New York, OF all their interest in the
firm OF Middleton, Dichman & Co., OF New
York. No copy OF the act OF assignment was
preserved by the firm, but Mr.. II. Dlchman
has promised to furnish mo "a copy OF the act
as soon as his attorney returns 70 Now York,
said attorney having possession OF the same"
The total Indebtedness of the bank is stated
at S04S, S06.35. The assets CONSIST OF open &C.
counts OF individuals, amounting to sl3I,-
1bd.1d notes and bills receivable, $4,000 IS;
2O,627 shares OF Ivanhoe and other mining
stocks, par value, S51O, 1926, and n few other
small amounts. The receiver says that collec.
tions are being made as rapidly as possible, and
the real estate Will be advertised for SALE tTp to
this date no has collected from all sources
$2,021.52 and dlsbursed $352.d0, leaving q .
balance in his hands OF $2,572.O3.' Tho gem
of the report, disclosing where tho money
actually went, is the account showing tho
principal losses, as follows: