Morning journal and courier., 1889-05-27
THE MERCHANTS, BANK MATTER.

Palmer and John E. Bassett All Ob
 tain Bondsmen-The BaHk'S Mort | gage Upon MT. Bassett's Property His Assignment.
 I Questions were constantly being aske about town, "What does the bank Josef
 "How much is the total lossa'' ''Is the banl
 solventf' "WiH the bank wind up businessa
 Then there was general enquiry as to the ns
 ture of the proceedings in the cases agains
 Msssrs. Bassett, Bradley and Palmer.
 Ex-Governor Bigelow, president of tn
 bank, was found in the New Haven Hous
 corridor yesterday. He had just finished
 dinner and just left the crowded dining room
 filled with guests busily engaged at the pleas
 ures of the we'll supplied tables, but n' sooner had he emerged into the corridor thar
 he was instantly engaged in conversation b, | two of New Haven's leading gentlemen, ane | the all-absorbing topic was of course thu | bank and the arrests. Governor Bigelow ! with never failing urbanity, was answering \ the queries of these two friends, while othel business men of equal prominence stood neal awaiting their turn to talk on the interesting topic. Governor Bigelow, having finished with his various interlocutors, turned to find the inevitable press representative at his el bow eager in turn to learn the latest develop ments. President Bigelow had thrown of the pressure of the last three days to a con- siderable extent and looked as if the tide hao turned and the crisis successfully passed The following conversation ensued: There seems to be @ misapprehension il the public mind prevailing to considerable extent as to the exact nature of the delin quencies upon which MT. Bassett, MT. Brad ley and MT. Palmer have been arrested, ow | ing to the banks directors having passed favorably upon paper of Mr. Bsssett to tht extent of 1000 while MT. Bradley and MT
 Palmer have been passing on similar paper without authority.
 In reply Governor Bigelow said that is just where the difficulty came in. They exceeded their authority and usurped powers, EnSd djs cretionary action which hehionged solely ts the banks official -hoard, and by collusio1
 and false retRznsy concealed their wronefu
 action. The board would not have opened the flood gates of the bank money, but would have acted with their usual discretion anG not have imperilled the funds of the bank A little paper of this kind we'll guarded ii very different from large amount unpro tected.
 Then, too, the banks action in the arrest of these men is based upon alleged criminal. ity, Is it mott
 That is the decision of the bank examiner ' with whom the whole matter of arrests or \ criminal charges rested. The arrests are made by the bank examiner, acting for the United States government in the matter, ,sn6 were made on the grounds of false returns or the part of Bradley, and of collision tc defraud the bank on his part and on the part of Bradley and Palmer. The arrested bank officials were held to answer these charges If Mir. Bradley, as soon as he discovered what Mir. Palmer had been doing, had imme-
 diately informed you of the case all would
 have been well for MT. Bradley, would it note
 Thot ia vpbara ho pooda tI,a orova o-ro. Upon immediate information from him of the discovery should at once have apprized our board of directors and MT. Bradley would have avoided his error. His failure to do SO, 1 am convinced, was owing to his kind hearted desire to shield his under official, Mir
 Palmer. and to the hope from inquiries which he made that the bank would suffer no loss. It was grave neglect of duty, his failure to apprize the bank that things were
 going wrong, and all the while things were
 growing deeper.
 AS to MT. Palmer's action in first allowing
 Ar. Bassett's paper to go through without the banks knowledge; were the causes for it what have been representedi
 Unquestionably so. MT. Bassett had loaned MT. Palmer money in his hair oil business, and then when MT. Baesett was sorely pressed for money began accommodating him, and one false step led to another, and so on, until the amount began to be too
 
 Rumors are floating about town in busi- ness circles, to say nothing of the public who are wholly unacquainted with the mysteries of banking, that there is @ bigger hole in the banks funds than Is at present publicly known. One wild rumor begets another. Will you state how far the loss has extended or how much the deficit is4 There are re- ports that new discoveries show that the banks capital is impaired, which leads to asking the question, "Has the examiner re- vealed all yeti
 Gov. Bigelow replied with great cheerful ness that the examination was substantially finished, and that so far from the banks capital being impaired there was excellent reason for believing that considerable por- tion of the surplus would be rescued and saved from the debris. Before the Mer- chants' bank made that statement to the public in Saturday mornings paper that the banks capital was unimpaired although the Examiner Dooley if the statement would not cover the case. He replied that it would and amply; that his examination disclosed such @ state of facts as to render the state ment ample and plenty broad enough, and that there was not the slightest chance that the capital would suffer. On this the state rnent was given out. And to-day the bank has good hopes of saving considerable of the surplus. It is barely possible, but very im- probable, that any further losses will appear, while on the other hand something will be saved.
 But will not the bank recover something on MT. Bassett's real estatel People cognizant of Newhsllville's growth report that it is 8 growing suburb; that the lands iu that sec- tion are not falling at all in value, but on the other hand are appreciating, and that 'give the place little more time and MT. Bassett's real estate will be amply worth the mortgages upon it."
 To this Governor Bigelow said with smile that he certainly hoped the property was ad- vancing. The bank ,on the first knowledge it had of the sQuall that had burst upon it, se- cured of Mir. Bsssett through Lawyer filling a mortgage of $35, 900 upon his real estate There was first mortgage upon it of $24, 900 which was held by bank, the old savings bank on Orange street, be believed, and if so l sound and conservative bank as that would loan $24, 900 upon it it must be worth double hat amount at least. So from this amount he bank had fair ground for the presump ion of realizing a considerable sum to- | ward making good the deficiency. Governor | 3igelow also mentioned another soufse for I egsining some monies reported doubtful, | which the reporter was not given liberty to | mention at present.
 Are there any other parties whose paper lad been cashed by the bank illegitimately II IT without the banks cognizance, was asked, | Vlth the explanation that this was burning question about town at present
 President Bigelow said that the investiga- ion had been very full and very complete nd that the bank examiner assured him and he bank had in short every reason for be leving that no other sources of loss of any ceount were to be found.
 Another question, asked the reporter It Vas stated in the banks statement to the uolic that neither of the banks delinq uent mcials had profted peeuniarily by the with Mir. Bassett's paper, as far 1 g was known to the bank Had anything l risen to change that opinionl
 Governor Bigelow's reply was that he ould not bring himself to entertain doubts 8 to either MT. Bradleys or MT. Palmer's onesty in the matter. He wished the re- orter to withdraw the question as it was sinful for him to contemplate the thought, ut as one paper stated 8 rumor that MT. 'almer received $25 whenever extending snk accommodation to Mr. Bassett he would sply as to that that he had no knowledge of ny such transaction.
 One more and ..fnal question was asked, nd that was: According to reports and the esult of inquiry, MT. Bassett was accommo- ated by the bank to the extent of $50, ,OOO | lore or less. Why did not that large sum slieve MT. Bassett from his embarrassment, 1 nd what in the world became of the moneyi
 yvh !