Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1888-02-11

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lay gas land, Toledo natural gss stock,
Roans Mountain, Tenn, iron and coal land,
and stock in the Athens, Ca, Improvement
company was purchased Most Of the land
and stock was bought on time, notes being
given. Whom the boom ended and these notes
matured II Il charged that the banks money
was used to pay them
This, it is alleged, was accomplished by one
director loaning the banks money to the
other ON notes These amounted to over
S6O0, 00o National bank examiners went
through the bank numerous times, and
always reported it solvent. Whom the
Fidelity bank failed it was discovered that
there was something wrong with the Metro
politan It seems that on March II, Bank
Examiner Powell arrived in this city for the
purpose of examining the Fidelity National
bank. 1t was at the time Harper and Hop
kins were In the wheat deal. When Powell
began his examination, the reserve find,
which the law requires to be 25 per cent. OF
the deposits, was away below that amount.
To dupe the examiner, Harper borrowed
$50, 900 from the Metropolitan bank. This
was enough to balance tho reserve fund, and
Examiner Powell reported that the Fidslity
was solvent This money was returned to
the Metropolitan the merit day This peculiar
transaction was not known, however, when
the Fidelity failed. Examiner Powell APP
pointed John r. De Camp, vice president of
the Metropolitan, temporary receiver of the
Fidelity. The Fidelity failure caused run
on all the banks.
Vice President De Camp knew that his own
bank, the Metropolitan, was hard pushed.
To save his institution It is charged that he
took all the bills receivable of the Fidelity
bank and collected from the New York
banks $175,0Oo. This amount he turned over
to the Metropolitan to meet the demands
for money from the depositors. When Re-
ceiver Armstrong took charge of the Fidel-
ity's affairs he demanded the money, and the
Metropolitan paid over S115, 900 to the re-
ceiver, which in turn was sent to Comp
troller of the Currency Trenholm. During
the trial the peculiar transaction of trans
ferring the funds of the Metropolitan to the
Fidelity came out This caused Comptroller
Trenholm to look upon the Metropolitan
of the bank, and saw upon the face of them
that there was something wrong.
A new bank examiner, Mr.. Sanders, wa
then sent to Cincinnati The very first day
he was in the bank he found that it was not
solvent. The last statement showed the re-
serve fund to be rs per cent. of the deposits.
Instead of this amount he found there was
not 10 per cent on hand. He next discov-
cred the fact that there was a syndicate
among the directors for speculating in real
estate He demanded that the directors,
whose unsecured notes were in the bank, re-
place them with solid cash. This was done
by some of the directors, while others turned
in real estate stock etc
Mr.. Sanders looked upon the stock with
suspicion. He remained in the bank over a
week This caused suspicion. Metropolitan
stock dropped from 145 to seventy mine
cents. This caused run ON the bank Sat
urday.
Then came the resignation of the vice pres
ident John r. De Camp, which was demanded
by the examiner. This caused the run on the
bank Monday.
Mr.. De Camps arrest convinced the direc-
tors that further efforts to sustain the bank
would prove futile
City Treasurer Bohrer had 100000 in the
bank.
1t is said depositors will lose nothing.
Stockholders will realize SO on their stock
Examiner Sanders and his aid, Mr.. William
Motfett, at once took charge of the bank.
They will continue in charge until receiver
is appointed.
A rumor is current on Third street to the
effect that the Metropolitan will reorganize
in few days, reduce the capital stock, pay
all the claims and continue business.