The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-07
CINCINNATrS BROKEN BANK
The Metropolitan National, by Outside
Help, Kept Its Doors Open Yesterday,
But the Arrest of Ex-Yice-President Decamp
Causes the Directors to Decide Upon Sus-
pension, and the Bank Will Be Closed.

o'clock. Pending the meeting, the payment OF
/ checks suspended, and a long line of depos-
| itors gathered, reaching from the payers desk
| to the street. In very few minutes. however,
| the payment of checks was resumed. Vice-pres-
idens Decamps resignation was accepted, and
| Louis Krohn chosen in his place. Bank Examin-
Sanders is at the bank. but says he is too
| busy to say anything for the benefit of the pub
| lie. The directors took no other action
than TO elect MIR. Krohn Vice-presi-
| dent in place OF Mr.. Decamp. President
| Means, referring to the stoppaee of paym emit.
| says there was order for it and no reason Cor
it; and that he did not know there was any sus-
| pension He supposes tho story must have
arisen from some accidental delay at the payer .
desk. as no order for suspension was given.
There was more than the usual demand upon
the bank all day. but at the clearing house it
was only $4,000 behind. The directors held
another session at 8 o'clock. While bankers
agree that the Metropolitan is solvent they rec
ognized the fact that it could not meet every
possible demand in day, so eight of the banks
loaned it S25, 600 each. Other offers were de-
cllned The objection made to Mr.. Decamp,
the retiring vice -president was that he had been
specializing too much in Findlay and other real
estate. AT Toledo, to-day, two mortgages
Toledo acre property were filed. sic, 900 each, by
John r. Decamp; and by Decamp & Means, to
WASHINGTON. Feb. 6.-The Comptroller 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 defalcation, and the
losses have arisen entirely from loans upon in
sufficient security. During the examination
Of additional collateral put s up By parties parties
to whom excessive loans had been
made The examiner says he thinks the
losses will not exceed $3.50. 900, even il the bank
has to be wound up. while if it goes on a good
part of this may be saved. The books, he says.
show at the credit of the surplus account and
profit and loss, about $3.50 O00 that should the
losses reach the extreme estimate, the capital of
ST., 000 600 would be but little impaired. 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.
Decamp Arrested, and Suspension Follows.
C1NcINNAT1, Feb. Gall day Saturday and
all day Sunday and every hour OF to-day the di-
rectors of the Metropolitan National Bank were
in session in their palatial banking rooms At
the close of the day they felt the bank would
pull through. They had has been learned
since dark, gone through the clearinghouse all
right The united banks had given them
100000 dnring the day, and wherever they
went they heard only words of sympathy.
When evening came the directors met again.
They congratulated themselves over the
outlook. Their hopes were high. Then at
8 o'clock came tho intelligence that the
united banks had voted 1000 for help in the
early morning hours tomorrow. At this news
their joy was jubilant. But it short-lived
United States deputy marshal stepped in and
arrested the late vice. president, J. H. Decamp
The charge against him was certifying to a
false statement Of tho December condition of
the bank. This attracted the attention of the
united banks, and they at once withdrew their
proposition to furnish $4,000. and said they
would not help the bank any more in the future.
This hair broke the camels back. TIL Q direct
ors of the Metropolitan Immediately
passed a resolution to suspend and
go into liquidation. The affairs of the bank
were at once turned to government bank
examiner Sanders. The next movement will be
the appointment of receiver. On last Satur.
day the bank sustained a run Of $3.50 O00 to-day
about 800, 900 was paid over the counter aud
about $50, 900 was paid in checks through the
clearing house, leaving in tho bank at the close
of business hours, about $15. 000 mostly in coin.
The trouble is traced to the increase of stock
from $500 600 to 81, DOC. 600, the issue being to
holde rs of stock at 20 per cent. premium, the
premium being utilized as q surplus fund.
large part of this increase paid for in notes.
The placing of this stock in various banks gave
rise suspicion, ending IN making it difficult to
place the stock. To sustain it's market value
the directors were compelled to buy in consider
able quantities. The tight money market at
the close of the year forced the Metropolitan to
carry load that was too heavy. Another trou-
BILE grew out of reports OF speculative tendencies
of come of the officers, though there is evil
dence of its being carried to any considerable
extent
Eight local banks offered aid on Saturday, and
added to it so-day. They promised still more
..pon 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 after 7
o'clock tonight The resolution adopted is
follows
Whereas Every effort has been made by the board
of directors to sustain the credit of the institution;
whereas We find it is impossible to sustain it
longer without serious detriment to the best inter-
ests of the depostors and stockholders; therefore
Resolved. That the business of the bank be
opened for business on Tuesday. Feb. z.
The cashier states that there remains about
$500, oO0of the 1000 900 deposit account. It is
thought depositors will be paid in full, while
stockholders will be subject to assessment of
10 to Is per cent. the par value of their
holdings.
This bank was the successor Of the private
banking house of James q. Larkn & Co. Lar
kin president for several years. and
succeeded by ex-Mayor Williams Means. The
bank examiner. Mr.. Sanders. began his exami-
nation about two weeks ago. He found the
bank $780, 600 below tho legal requirements as to
reserve.
When the arrest Of Mr.. Decamp was::made. the
private Waterman of the bank made q 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 af.erward released. The
bank examiner makes his reports the Comp
troller, but there are hints that before the mat
to- nA0 Cd NfhA vRill hn ID T%1n
charge against Mr.. Decamp is the same that
formed ono Of the charges in the Fidelity Bank
cases.
How They Do 1t In Canada
TORONTO. Feb. 6-The Central Bank invesfi-
CATION to-day revealed tho fact that Allan, the
late cashier who absconded to the United States,
owes the bank $40, 900 Liquidator Campbell