The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1888-02-08
THE METROPOLITAN BANK.
One OF Cincinnati's Institutions Forced to
Suspend-vice-Presiden Arrested.

morning at 10 o'clock. Pending the meet.
ing the payment of checks was suspended
and q lone line of depositors gathered,
reaching from the payers desk TO the
street. In a very few minutes, however,
the payment of checks began, and at this
wHting-ll:l0 q. m.-the line is much de-
creased. The directors are still in session.
| and what is transacted is not yet known,
except that Vice-President Decamp's resig-
nation has been accepted and Louis Krohn
has been chosen in bis place. Bank Ex-
i amlner Sanders is at the bank, but says he
is too busy to say anything for the benefit
Cf the public. The directors took no other
action than to elect Mr.. krohn vice-presi-
dent in place of Mr.. Decamp. President
Means, referring to the stoppage of pay
ment says there was no order for It,
and no reason for it, and that he
did not know there was any sus-
pension. He supposes the story must have
arisen from some accidental delay at the
| payers desk, as no order for suspension
was given, Everything is quiet at the
bank at this hour, y o'clock.
WASHINGTON, February 6.-The Comp.
troller of the Currency to-day received the
report of Bank Examiner Sanders in re-
gard to the Metropolitan National Bank of
] Cincinnati. According to this report there
has been no defalcation, and the losses
have arisen entirely from loans upon in
| sufficient security. During the exaraina-
tion Mr.. Sanders succeeded in getting
| $275,000 of additional collateral, put
up by parties to whom excessive loan
had been made. The Examiner 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 he
| saved. The books, he says, show a. the
| credit of the surplus amount and profit and
| loss, about $500 SO that should the
losses reach the extreme estimate, the capi-
| tai of 81 ,000, 600 would be but little im-
| paired. The Comptroller In speaking os
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 stockhol6-
] ers may escape serious loss.
There was more than the usual demand
| upon the Metropolitan Bank all day, but
| at the clearing house it was only $40, 900
behind. The directors held another session
at O'Clock. While bankers agree that the
| Metropolitan is solvent, they recognized
the fact that it could not meet every posi-
BILE demand in day, so eight Of the banks
loaned il SIS, 900 each. Other offers were
declined. The objection made to Mr.. De
Camp, the retiring vice President, was that
he had been speculating too much in
Findlay and other real estate. At Toledo,
were filed for $4,000 each by John r. De
Camp, and by De Camp & Means to the
Merchants National Bank, of Cincinnati.
All day Saturday, and all day Sunday,
and every hour of to-day the directors Of
| the Metropolitan National Bank were in
| session in their palatial banking rooms on
| the southeast corner of Third and Walnut
streets. at the close of the day they felt
| that the bank would pull through.
They had, as has been learned since
dark, gone through the clearinghouse
all right The united banks had given
them 100000 during the day, and where
ever they went they heard only words of
sympathy. When evening came the direca
tors met again. They congratulated them
selves over the outlook. Their hopes were
| high. Then at O'Clock came the intelli-
| gence that the United Banks had voted
$50, 900 for help in the early morning hours
tomorrow. At this news their Joy was
| jubilant, but it was short lived. A United
States Deputy Marshal stepped in and ar
rested the late Vice-president, ]. r. De-
camp. The charge against him was certify
ing to false statement of the December
| condition Of the bank. This attracted the
attention of the United Banks, and they
at once withdrew their proposition to
| furnish $50, 600, and said they would not
help the bank any more in the future.
This hair broke the camels back. The di-
rectors of the Metropolitan Immediately
| passed resolution to suspend and 90 into
at once turned over to Government Bank
Examiner Sanders. The next movement
win be the appointment of receiver.
The trouble is traced to the increase of
stock from $500, 900 TO 81, ,0OO, 900, the issue
being to holders of stock at twenty per
cent. premium, the premium being utilized
as q surplus fund. A large part of this in
crease was paid for in notes. The plac-
ing of this stock in various banks
gave rise to suspicion, ending in
making it difficult to place the stock.
| To sustain its market value the directors
were compelled to buy in considerable
quantities. The tight money market at
close of the year forced the Metropolitan
| to carry a load that was too heavy. An
other trouble grew out of reports of specu-
lative tendencies of some of the officers,
though there is no evidence of its being
carried to any considerable extent.
| Eight local banksofferedlaid on Saturday,
snd added to it to-day, They promised
| still more aid upon ample security, but
late in the afternoon the banks rescinded
their action, and then the directors were
| forced to suspend. The meeting of directors
| for this purpose was held alter O'Clock to-
night. The resolution adopted is as fol-
| lows:
Whereas, Every effort has been made by
| the board of directors to sustain the credit
| of the institution, and
Whereas. We find itimpossible to sustain
It longer without serious detriment to the
best interests of the depositors and stock
holders, therefore be X
Besolved that the business of the bank
be suspended for the present, and that the
doors be not opened for business on Tues
| day, February.
The cashier states that there remains
about $500,000 of the 81, 500, 900 deposit
account 1t is thought that depositors
] will be paid in full, while stockholders
will be subjected to an assessment Of 10
to Is per cent. on the par value Of their
holdings. This bank was the successor of
| the private banking house of James F.
Larkin & Co. Larkin was president for
| several years, and was succeeded by ex-
Mayor William Means.
The Bank Examiner, Mr.. Sanders, began
| his examination about two weeks ago. He
found the bank $150,0o0 below the legal
requirements as to reserve. When the ar
rest of Mr.. De Camp was made the private
| watchman 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 st
that hour. He was himself put under ar
rest, but was afterward released. The bank
examiner makes his reports TO the Comp
troller, bat there are hints that before the
| matter is ended other arrests viii be made.
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