Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-22
APlTTSBURG BANK FAILS.
MALICIOUS RUMORS ALLEGED
AS THE CAUSE.

DOnneII, Lawson & Simpson Ask an
! Extension of Their Creditors and
Promise to Pay in FnII-Mr. James
Creditors Come to an Agreement-
| BrOwneIl & Co. Go Under.
PrrTsBURG, PA, May 2I.-The Penn
Bank, of this city, closed its doors to-day
and posted the following notice on them :
Owing to the continued run for several davs
we have decided that it is wise for our depos-
itors and all concerned to suspend payment
for the present.
There is great excitement and large
crowd surrounds the bank. Officers have
been placed at the doors.
n. Riddle, President of the bank, which
was doing the largest business of any
bank in Pittsburg, got up from sick bed
this morning, having been prOstrated
from hemOrrhage, and is now at the bank
| The following statement was made by
him to an Associated press representa-
tive:
have nothing to say in detail now, but am
here to face the music and do my duty. Ow-
ing to the unfOunded reports made current by
interested and malicious persons there has
been a run on us for several DAYS, and our de-
pOsits have fallen off between $500000 and
100000 in five days. We, therefore, deemed
il wise to take action now. | have nothing
further to say, except that | am Individually
the biggest loser, having the largest deposit
and the largest amount OF stock in the bank.
1t is said that rumOrs were set afl0at by
interested parties that the Penn Bank
and two other banks had been allow
ing oil brokers to Overdraw their accounts,
and the result was run. One of the
stockholders of the Penn Bank says that
the suspended institution is solvent, and
Will pay every dollar of debt or ON deposit.
The capital stock is $200,00 A full state
ment is promised tonight.
The bank was yesterday assisted i'll
meeting its obligation at the clearing
house by a loan of 100000 made by the
Farmers Deposit National Bank through
which it cleared. 1t was hoped that mat
ters would be in better shape to-day, and
that the bank would be able to meet its
papers when presented. The result was
disappointment, and the checks of the
bank were returned by the Farmers
Bank. AS to the aggregate amount of
checks thus far returned the Farmers
officials refuse to make statement,
but as the aggregate exchange at the
clearing house was but little below those
of yesterday, the total could not have
been nearly as large as usual. In ordinary
times the Penn Bank had out a very
large amount in checks, but for some
days past it had fallen off greatly.
PRESIDENT RIDDLES STATEMENT.
PITTsBURG, May q, II BOP. M.-Presi-
dent Riddle, of the Penn Bank of Pitts
burg, tonight made the following official
statement to a representative of the AS
sociated Press: The Board of D-
rectors met this afternoon and
began an examination into the
affairs of the bank. Their examination
justities them and myself in the statement
that the bank can, as matters now stand,
Il fNr. dol Il
stock. We have received offers Of assist
ance from many sources. Our largest de-
positOTs show a most gratifying faith
in the bank, its resources and
ability to meet its debts and
they evince no disposition to cause any
trouble by hasty action. On the contrary
many have offered to double the deposits
now held by the bank and other aid has
been offered in order that we may resume.
AS to the acceptance of this, the board
will decide later. AS to myself person
ally, l have no fear for my own deposit
and stock. am the largest depOsitOr and
stOckhOlder and am not only willing to let
both stand where they are but am willing
and ready to add more to the amount"
LIABILITIES OF $1,500,O00.
President Riddle refused to give any
statement of the liabilities and assets.
From an outside source it was learned
Jnab Lle lIdDlubleS VIII not exceed Sl,0UO,-
600, and that the assets will more than
cover this. The only question is in re-
gard to the time necessary to realize.
The bank is credited with heavy oil
speculation, but this is denied. The direct
cause of the trouble is said to be rumOrs
growing out of the clearances of the
Petroleum Exchange being taken away
from the Penn Bank, which up to few
days ago was the clearing house of the
exchange. The change was made
several days ago and business was
transferred 10 the Farmers Deposit Ma
tlonal Bank. This gave rise to rumors
that the bank was in trouble or was likely
to be. A run has been going on quietly
for several days. The suspended bank
was a depository for the Orphans Court,
but at present the deposits amount to only
a few dollars. The bank was at one time
a personal liability bank, but it is not so
now, as it has ayailed itself of a very
liberal State charter, by the terms of
which it is authorized to carry on
| banking, insurance, real estate and
improvement and other business. The
feeling tonight is one of uneasiness, and
it is feared that runs win be made on
several banks tomorrow. President
Hooper says that he does not think that
the banks Of PittSburg are in poor con-
ditiOn. At the last showing the condition
Of all those in the clearing house was ex-
cellent, and he has no feeling of inse-
nrTpf i'm o..sI In