Savannah morning news. [volume] (Savannah) 1868-1887, 1885-12-20
A HOUSTON BANK FAILS.
A RUN OFF BAD LUCK APPARENT
LY TIE CAUSE.

Property Turned over to the Institu-
uOn by an InsolVent Creditor GrRdu-
ally Depreciatea in Value Until 1t BE-
comes Unrem nerativs-COnfidsDce in
the Officers of the Institution.
HOUSTON, TEX, Dec. 19.-Consldera-
BILE excitement was oecasioned here this
afternoon by the failure of the City Bank
OF Houston, one of tie Oldest financial in
stitutions in the city, and having a paid
up capital OF $500, 1000. The doors were
closed at 1 O'Clock, notice being posted
thereon that the bank had suspended pay
ment pending an application for re-
ceiver. At $50 O'Clock, Judge Waterson,
OF the District Court, on a petition filed
by the banks attorneys, granted an
order appointing Benjamin +. Weems
receiver, and that gentleman
Immediately qualified bond for $500, 600.
Hon. William R. Baker, present Mayor of
the city, is President of the bank, and
Benjamin f.. Weems cashier. While the
failure caused some CONSERVATION
throughout the city, and a large crowd
gathered about the bank clamoring for
money, yet the suspension was no sur
prise to other banks and business men
bank, including the capital stock, will
exceed $1,000, 600.
LOSING MONEY FOR YEARS.
An exact statement of the banks affairs
at the time OF the suspension is not OBJ
tainable tonight. The bank has been
losing money for several years. Its mis-
fortunes date back about ten years to the
time of the failure of William J. Hutchins,
VINO was indebted to the bank 60 the
amount Of about S350,0O0 AS security for
this large debt the bank held liens
upon Mr.. Hutchins' house. hotel
property, the Eureka mills and
several vacant lots. This prop
erty constantly deprecated in value
on the banks hands, finally becoming a
source of expense instead of revenue.
Other debts of similar character ac-
cumulated as years passed, and on May
last, when the bank struck a balance, the
directors were greatly chagrined and sur
prised to find that the bank had failed to
pay the expenses for the year ended April
80 by some $4,000.
CONFIDENCE OF THE PEOPLE.
At that time its deposits reached $572,-
0O0 and Notwithstanding the fact that it
became known in business circles that
the bank was heavily loaded down its de-
pOsits during the next three months in
CiCdSGu oNGl pousoOOs lulS was OWING 10
the high character Of the bank officers,
among whom are the best known men in
the city. The institution did a business
on state charter granted in 1868, one OF
the last banking charters issued by Texas.
| Benjamin A. Bolts was President of the
bank for about fifteen years. On his
death on Oct. last Mayor Baker sue
eeeded him. B. F. Weems. the Receiver,
has been Cashier ever since the bank
started.
SOME OF THE STOCKHOLDERS.
VIM. Rice, formerly of Houston, now of
New York, is one OF the largest stock.
holders Robert Brewster, F. S. Rice
and VIM. d. Cleveland are also stock
holders. These gentlemen are wealthy
| independently of their bank stock. Owing
to the fact that certain members OF the
directory OF the Houston Savings Bank
are also officers in the suspended bank a
run was Immediately inaugurated on the
savings bank, but all the claims were
promptly met. The bank. however, closed
its doors at 3 O'Clock, the usual closing
hour, with long line OF anxious deposit
ors waiting to reach the paying teller's
window. If the run is continued on Mon
day it is believed the savings bank will be
prepared to meet the eXigency.
OTHER BANKS NOT AFFECTED.
Inc OtlSE DhnkS IN tne CITY are not
materially affected by the failure. Gal
weston banks lose less than $4,000. The
deposits Of the broken bank will reach
over $500,000. Many poor people were
among the depOsitOrs, and the failure,
therefore, is a great misfortune to the
city.
The Missouri Pacific Railway Company
deposited with the bank.
The New York correspondents of the
! bank are the Continental national and Ma.
tiOnal Park bank, at New Orleans the
State national bank, and at st. Louis the
Bank of Commerce.
The receiver. with force OF clerks, is
now at work on the books preparing a
statement.
FAILURE IN CAMDEN.
CHARLESTON, S. G., Dec. 19.-R. NJ.
Kennedy, a general merchant at Camden,
has made an assignment tor the benefit of
his creditors. His liabilities are about
$4,000. The assets will more than cover
his liabilities.
LUMBER DEALERS FAIL.
DETROIT, MICH, Dec. 19.-M. G. Huyett
& Co., mmbermen of this city, have
failed. Their Liabilities are estimated at
$4,000. The members of the firm will
give out nothing, and little is known
about the assets. Ii is said that their
liabilities are mostly carried by Detroit
firms. Tde Commercial national bank Of
this city b8s claims against the firm for
about S45, 900, and the First national bank
claims aggregating $4,000. The direct
cause Of the failure was an attachment
for $1,000 by the Commercial national