New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-13
TWO UNIMPoRrAyT FAILURES ANNOUNCED AT
THE STOCK ExCHANGE-GNTEREsT In THE
DOWNFALL OF DECKER, HOWELL &
Co.-CREDIToRs OF THE NORTH
AMERICAN COMPANY DECLARE
1T TO BE SOLVENT
MINOR FEATURES.

"Sic uHdpic ~ otttc tncI ~ eh' NiS"i''o
House on Tuesday morning, and the issue Of GER
tifcates was authorized. The Bank OF North
America, which was to be saved by the opera
ton, took out certificates only to the amount OF
the over-certfcation in favor of Decker, Howell
& Co., the firm which was reported to have
carried down the bank. The smaller banks which
had announced their inability to pay their bal
ances had no connection with Wall Street, and
the suspension of the North River Bank at the
close Of business was complete surprise. An ad-
vance of S65, 900 in Clearing House certificates
was insufficient to meet the banks requirements,
and the remaining securities that might be offered
for additional aid were found to be unacceptable.
The bank had nothing to do except to close its
doors, and this was done. The Loan Committee
of the Clearing House went to the bank for the
purpose of examining its assets, but only to find
that representative of the State Banking De-
partment was in charge. It. was said in behalf
of the bank that relief was so close at hand that
the managers could not see it. 1t had been ex-
pected that the action of the Clearing House
would prevent serious disturbance but within
twenty-four hours bank failure occurred.
THE NORTH RIVER BANK CLOSES.
The North River Bank, at Dey-st. and Green
was taken possession of by Edward Hamilton
Cahll, Assistant State Bank E2aminer and the
notice Temporarily Suspended " was placed upon
the front doors of tne institution Mr.. Cahill was
at the bank until p. m, with the president, Ed
ward f. Gedney, the vice president f. j. BrolSaw,
tbe cashier F. X. lngersoll, and the directors. lt
was expected that {. statement Of the banks con-
dition would be issued By Mr.. Cahill, but he de-
clncd TO do so iI the absence of the State Bank
Examiner, Mr.. Preston, who was expected to ar
rive from Albany late in the night. Mr.. Cahill
said that the examination of the banks affairs
would be resucaed at an early hour this morning
and completed probably by noon. lie declined TO
rive any opinion MS to the probable outcome of
the banks difficulties
THE NOTICE OF SUSPENSION.
The regular business OF the institution was con-
tinued up to 80 n. m., when the notice of sus-
pension came without warning. Edward Il. Ged-
ncy. the president, was shortly before
o'clock. He said that the North River Bank had
tided over its difficulties had arranged its accounts
witi, the Clearing House and had a balance to ITS
credit About 215 Frederick ID. Tappen and the
other members of the Loan Committee OF the
Clearing House Association entered the bank
building 1t was said that their errand was 10
investigate the securities upon which the bank
desired to secure another loan from the Clearing
House. They found the Assistant Bank Examiner,
Mr.. Cahill, in charge of the institution, and a
few minutes later the notice of suspension was
placed upon the doors. From this time access
to the bank or its officials was an impossibility,
and not the slightest information as to the I'm
mediate cause of the suspension or the progress OF
the examination could he obtained.
A large proportion of the merchants In that
neighborhood are deposltors in the North River
Bank The news of its suspension was rapidly
SPREAD and scores Of depositors bcsiegc the doors
in a vain attempt to obtain further information
Some of them had made deposits only an hour or
two before and their fears were raised to a high
pitch by the sight of the tightly barred doors with
the notice of suspension posted on them and four
policemen standing guard. Several heavy de-
positors however freely expressed their confidence
in the bank and their full belief in the security
of their deposits The Loan Committee left the
bank at 4 80 o'clock entered q carriage and were
driven away The committee consists Of Freder-
icS ID. Tappen, Jacob d. Vermilye, President Will
Jams, of the Chemical Bank; President King. OF
the Bank of Commerce, and President Perkins, OF
the Importers and Traders They would say
only that they considered the suspension only
temporary, the crisis having been brought on by
run on the bank yesterday morning. The run
on the institution was caused by the announcement
in the morning papers that the North River
Bank had been compelled to appeal to the Clearing
House Association for aid.
A HOPEFUL FEELING.
At 6 p. M John A. Whalen, president OF the
Citizens Bank at Elizabeth, n. j., pounded on the
great wooden doors that opened into the base
ment-room in which Mr.. Cahill and the bank
directors were deep in work. The North River
Bank was the New-York correspondent Of the
Citizens Bank and President Whalen was anxious
to learn the condition Of affairs. When he re-
appeared on the sidewalk he said that he con
sdered the banks trouble only temporary, the
most hopeful feeling seeming to prevail among the
directors He said that his own bank had
suffered in no way from the suspension
Throughout the evening the walk In 'front.' OF
the North River Bank was filed with depositor'
and creditors, clamorng for information as TO III
condition. At half-past o'clock f. D. Brokaw
the vice-presidcnt of the bank, came from the
building lie was besieged with questions, bu'
did not seem in humor for talking
lie tried TO get away without saying
anything. and when pressed said sarcastcally
Gentlemen, they have found nine pennies III
there. and they hope that by hunting awhile they
President Gedney came out soon afterward and
walked rapidly toward carriage that was III
| waiting. To the reporters he would only assert
that he had nothing to say At 745 about
dozen clerks and examiners including Edward
| II. Cahill. emerged from the building, in which
the lights were promptly extinguished and the
| doors locked.
Mr.. CahiIl said II have telegraphed to Albany
for my superior officer, Mr.. Preston, ana l eN
| pcct him TO arrive tonight. The examination OF
| the banks affairs is now under way, and cannot
| possibly be completed before tomorrow noon. We
have now concluded our work for tonight, but
will begin again early in the morning IL woso
not be fair nor would it be possible for me
make any statement now as to the banks con
dtlon" .
Mr.. WISE one of the directors of the bank sal.
| last night: "The especial business Of the PAM
| has been loans TO market men, and we never haV'
| lot a dollar by them. have been sick abed fol
six weeks. and so am unable to say what th'
cause OF the present difficulty is am confiden