New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-14
IT'S DOORS TIGHTLY SHUT.
THE NORTH RIVER BANK FAILS 10 MAKE Z
LOAN.
ANXIOUS DEPosIToRs BEFORE THE BunDINo3
THE STATE HOLDS THE INsTITUrIoN-BANK:
EXAMINER PRESTON WILL NOT ALLOW
1T TO OPEN UNTIL s20oo.ooo
Is AVAILABLE TO MEET


IT TO OPEN UNTIL s2ooo.ooe
Is AVAILABLE TO MEET
WITHDRAWALS.
The North River Bank. which closed iss dssso
at 80 p. M ON Wednesday, remained tightly
shut all day yesterday. The State Bank Examiner.
Charles NJ. Preston, and his assistant Edwsrd
H. Cahill. were closeted in the institution with
the directors for the greater part of the day.
To the anxious depOsitors and creditors who be.
sleged the doors information was as unavailable -
on the day before. As a consequence, rum0rs thaS
the bank must permanently suspend were every.
where afioat. In financial circles. the prolonged
suspension of the bank gave credence to rumoro
Of ill-advised investments and loans, and general
opinion seem to be much agast the probability
of the banks resumption. Late in the afternoon
the directors appealed to the Clearing House
Association for the loan Of large amount Of
money. This. it is said, the Clearing House Com
mttee refused to grant.
At p. m. the Bank Examiner, Mr. Preston made
a statement Of the banks apparent condition,
showing nominal surplus Of S22, 1852 65. The
amount Of deposits was about $2.000,000 Mr..
Preston said that he would allow the bank to
resume business II within a reasonable length Of
time IL could give absolute assurance of avail.
able cash or security sufficient to protect every
cent of the deposits. In case such assurance could
not be had, he would apply for the appointment
Of a receiver. 1t is manifestly impossible for the
bank so to arrange its affairs to open its doors
to-day. The opinion that finds most favor about
the Clearing House is that the North River Bank
will be reorganized under the National Bank
laws.
ANXIOUS DEPOSITORS.
At an early hour yesterday morning scores q
depositors were collected on the pavement in front
OF the bank building. at Dey and Greenwich sta
Policemen still guarded the DOORS on which was
the notice Temporarily closed" Through
out the morning there was an excited
crowd about the corner, and every possible
scrap of information rumor was seized upon
with avidty. The anxious deposit0rs seemed
eager to get comfort from every circumstance
which could be construed as showing favorable
condition Of affairs The amount Of information
Obtainabe meagre, however that in the
afternoon the crowd thnned out rapidly, and the
principal occupation Of the policemen was to re-
peat the assurance that Everything will be all
right"
Many of the firms that did business with tho
bank posted up notices that their checks would
be honored at their respective places Of business.
The first bank officer to make his appearance was
the cashier F. R. Ingersoll, who assembled the steps
| 70 the bank at 0 a. m. As he went in he assured
the waiting crowd that the bank was all right,
| and that an official statement would he fortn.
| coming in the forenoon. The president, Ed"aro
| r. Gedney the vice-president, f. j. Brokaw, and
| the assistant bank exami- Mr. Cahill, arrives
| shortly afterward.
THE BANK EXAMINER ARRIvEA
| At10:3o Charles NJ. Preston reached the banks
| He was promptly admitted by the ail-power1ui
| porter at the door and the preliminary examina"
| tion of the banks affairs began. Many stocK'
bolders and directors also knocked on the great
wooden doors and were admitted to the room In
which the officials were in council. Among the
directors was John II. Starin. His appearance
| brought ray Of hope to many depositors. VINO
seemed to think it an utter impossibility that Mr.
| Starin would allow the bank to go under for
| lack of money. Notary after notary appeared
| with punches of checks and drafts and nade
formal demand for their payment The holders
of keys to safe deposit vaults were admitted ana
allowed to remove their property
| John II. Starin reappeared in the street abouo
| noon All he would say was: Well, matters look
as hopeful as l expected" Other directors ana
| the bank officers were about equally commune
cative Martin Steljes, of the hrm OF BUCK
Steles e. Co., liouOr-dealers, was one Of the de-
| postors admitted iuto tine building. lie begged
the examiner to issue some statement. This
|
There are enough of depostors ready and
willing TO stand by the bank to see it through
its troubles"
! MANY rumors were started as to the cause of tho
banks difficulty One of the most plausible
emanated from an authoritative source. II was to
| the effect that the bank had been accustomed
Ievery spring to lend money in amounts
Of ST. 900 and 81 500 to farmers in the surround-
| ing country. These loans were made on SINGLE
name paper, secured by the crops. This year the
crops were poor and much Of the paper was
necessarily renewed. 1t is said to- have amounted
| to $250,000.
| A SENSATIONAL RUMOR.
The most sensational statement concerning thA
| cause of the disaster was made in the afternoons
| when on the authority Of member OF the
| Clearing House. it was said that the North kNer
| Rank had advanced about S50O,OO0 to
the firm of d. r. Paige x Co., contractors,
whose office is at No. As Broadway. 1t was al.
legged that the security for this loan was insufii.
Gent much of it being amounts due from the city
on Aoueduct contracts. The firm is also known
as Paige. Carey a. Co. No information could be
| obtained at the office of the company yesterday.
The examination of the affairs Of the bank was
| finished at about p. m. President Gedney ana
the cashier, Mr.. Ingersoll, accompanied by the
| bank examiners, went at once to the Cleaning
House, where the examiners made statement to
the Clearing House Committee The bank officials
then made application to the committee for tho
| loan of large amount of money. A
| nearly as could he ascertained the ap-
plication represented that the banks cap.
ita stock of S24O,OOO was unimpaired. and
offered the bills receivable and securities Of the
bank as collateral for q loan of SI.000.OO0 Thh
amount was necessary. it was said. because OF
the probability of run upon the institution II
it should open its doors. The Clearing House
committee consists of Frederick d. Tappen presi-
dent of the Gallatin National Bank; Jacob ID.
vermlye, president OF the Merchants BanE; II.
w. Cannon, president OF the Chase National Bank;
Edward II. Perkins, president Of the lmporfere
and Traders Bank. and William A. Camp, mAAr
ager of the Clearing House.
IN CONFERENCE FOR AN HOUR.