St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-02-07
CLOSED ITS DOORS.
The Metropolitan Bank, Of Cincinnati,
Forced to Close Its
Doors.
The President Arrested and Other Ar.
rests Expected to Fol
low.
An Evidence of Loose Work on the
Part of Bank Examiner
Sanders.

CINCINNATI, Feb. S.-All day Satur-
day, all day Sunday, and every hour OF
the day, the directors of the MetrOp0li-
tan National bank were in session in
their palatial banking rooms on tho
southeast corner of Third and Walnut
street. AT the alose of the day they felt
the bank would pull through. They
had, as has been learned since dark,
gone through the clearing house all
right. The united banks had given them
100000 during the day, and wherever
they went they heard only words OF
sympathy. When evening came the d.
rectOrs met again. They congratulated
themselves over the outlook. Their
hopes were high. Then. at O'Clock,
came the intelligence that the united
banks had voted $4,000 for help in tho
early morning hours tomorrow. At
THIS news their JOY was jubilant. But
1t was shOrt-lived. A United States
deputy marshal stepped in and arrested
the late vice president, Mr. Decamp. The
charge against him was certifying to
false statement of the December condi-
tlon of the bank. This attracted the at
tention of the united banks and they at
once withdrew their proposition to fur
nish $4,000, and said they would not
help the bank any more in the future.
This hair broke the came's back. The
directors of the Metropolitan immedi-
ately passed a resolution to suspend and
go into liquidation. The affairs of the
bank were
AT ONCE TURNED OVER
nf mi cd
The next movement will be the appoint
ment OF a receiver. On last Saturday
the bank sustained a run of $50, 900;
to-day about 100000 was put over the
counter and about $4,000 was paid in
checks through the clearing house,
leaving in the bank at the close of bust
ness hours about 200. mostly in coin.
The trouble is traced TO the
increase of stock from 500, 900 to 81, OOO,-
600, the issue being to holders of
stock at 20 per cent premium. the pre-
MUM being utilized as surplus fund.
A large part of this increase was paid
for in notes. The placing of this stock
in various banks gave rise to suspicion,
ending in making itdifficult to place the
stock. TO sustain its market value the
directors were compelled to buy in con-
siderable quantities. The tight money
market at the close of the year forced
the MetrOp )litan to carry load that
was too heavy.
ANOTHER TROUBLE
grew out of reports of speculative ten
denotes of some of the officers, though
there is no evidence of its being carried
to any considerable extent. Eight local
banks offered aid on Saturday, and
added to it to-day. They promised still
more upon ample security, but late
i'll the afternoon the banks rescinded
their action and the directors were
forced to suspend. The meeting of di-
rectOrs for this purpose was held after
Z O'Clock. The resolution adopted is as
follows:
whereas. Every effort has been
made by the board of directors to suS-
tain the credit of the institution; and
whereas, We find it is impossible to
sustain 1t longer without serious detri-
ment to the best interests of the deposit
OrS and stockholders.
Therefore be it resolved. That the
business of the bank be suspended for
the present, and that the doors be not
opened for business on Tuesday. Feb.7 :"
The cashier states that there remains
about $780, 900 of the 81 800. 900 deposit
account. 1t is thought depOSitorS will
be paid in full, while the stockholders
will be subjected to an assessment of 10
to Is per cent on the par value of their
holdings. This bank was the sue
cessor of the private banking house of
James +. Larkin Il Co. Mr. Larkin was
president for many years and was sue
ceeded by eX-MayOr William Means.
The bank examiner, NJ. Sanders. began
his examination about two weeks ago.
He found the bank $4,000 below the
legal requirement as to reserve. When
the arrest of Mr.. Decamp was
made, the private Waterman of the
bank made vigorous resistance to the
deputy United States marshal. He did
not recognize the right of the United
States representative to penetrate the
premises of the bank at that hour. He
was himself put under arrest but was
afterward released. The bank exami-
ner makes his report to the comptroller,
but there are hiutS that before the mat
ter is ended, other arrests will be made.
The charge against Mr., Decamp is the
same that formed one of the charges OIL
the Fidelity bank cases.
TIE BANK EXAMINERS REPORT.
WASHINGTON, Feb. 6.-The comp
troller of the currency to-day received
the report of Bank Examiner Sanders
in regard to the Metropolitan National
bank of Cincinnati. According to this
report there has been no defaIcation,
and the losses have arisen entirely
from loans upon insufficient Sc
curity. During the examina-
ton Mr.. Sanders succeeded in
getting about $275,OO0 of additional col
lateral put up by parties to whom ex-
cessive loans had been made. The ex-
aminer says he thinks the losses will
not exceed $3.50. 900 even if the bank has
to be wound up, while if it goes on,
good part of this may be saved. The
books, he says. show at the credit of the
surplus amount and profit and loss, about
S190.000, so that should the losses
reach the extreme estimate, the capital
Of S1.000,000 would be but little i'm
paired. The comptroller, in speaking
of the report, said that the creditors can
lose nothing in any event, and should
the bank survive the present run, and
pass under more prudent management,
the stockholders may escape serious
loss.