St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-12-20
A BANK GOES TO THE WALL.
The City Bank of Houston, Capital
$5OO,OOO, Closes Its Doors.
Excitement Over the Failure Very
Great--Savings Bank Suffers.

HOUSTON, Tex, Dec. 19.-Considerable
excitement was occasioned here this after
noon by the failure of the City Bank of
Houston, one of the oldest financial institu-
tions in the city and having a paid-up
capital of $500. 900. The doors were closed
at l o'clock, notice being posted thereon
that the bank had suspended. pending an
application for the appointment of re-
ceiver. At 2:30 Judge Matterson of the
district conrt, on the petition filed by the
banks attorneys, granted an order appoinJ-
ing Benjamin F.. Weems receiver and that
gentleman Immediately qualified. filing a
bond for 100000. Hon. William R.
Baker, the 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
large crowd gathered about the bank,
clamoring for money, yet the suspension
business men generally. The total liabilities
of the bank. including the capital stock,
will exceed 100000.
AN EXACT STATEMENT
of the banks affairs at the time of suspeli-
sion is not obtainable tonight, but the last
statement, given Aug. 1, 1885, gave assets
ftllO llttDlittiCo do lolAOWos aSSCtS-S1, 81
23O; liabilities. $1.241,23O. The above
statement is believed to represent nearly
the condition of the banks finances at the
time of the suspension. The bank has
been losing money for years. Up to the
time of the failure of William j. Hutchins,
who was indebted to it to the amount of
$3.50, ,000., AS security, the bank held loans
upon the Hutchins hotel property, Eureka
mills and several vacant lots. This
PROPERTY CONSTANTLY DEPRECATED
in value on the banks hands. finally be-
coming source of expense instead of reve-
nue. The debts of similar character ac-
cumulated as the years passed, and on May
l last, when the bank struck balance. the
directors were greatly chagrined and sur
prised to find that it had failed to pay it's
expenses for the year ended April 80 by
some SO, 1000. At that time its deposits
reached S572, 900, and, Notwithstanding the
fact that it became known in business cir
cles that the bank was heavily loaded down,
its deposits during the next three months
increased over SSO,000. This was owing
to the high character of its officers, among
whom are the best-known men in the CITY,
The institution did business under state
charter granted in 1868, one of the last
banking charters granted in Texas The
late Benjamin A. Bolts was president of
the bank for about fifteen years. On his
death on Oct. last. Mayor Baker sue
ceeded him. B. F. Weems
THE RECEIVER
has been cashier ever since the bank started.
William NJ. Rice, formerly Of Houston, now
of New York, is one of the largest stock
holders. All these gentlemen are wealthy
aside from their 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 imme-
diately inaugurated on the Savings bank
but all claims were promptly met. The
bank, however, closed its doors at o'clock,
the usual closing hour. with long line of
anxious depositors waiting to reach the
paying telIer's window If the run con-
tinues on Monday. it is believed the Savings
bank will be prepared to meet the emerg-
ency. Deposits of the broken bank will
reach over $500, 600. Many poor people
were among the depositars. The Missouri
Pacific Railroad company deposited with it.
The New York correspondents of the bank
are the Continental, National and the Ma
ton Park bank, at New Orleans the State
National bank and at st. Louis the Bank
of Commerce. The receiver, with force
of clerks, is at work on the books preparing
a statement