River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1891-11-05
2
OWES MILLIONS.

directors Arrested for EInbezziement.
BosToN, Nov. 3.-The doors of tn,
Maverick bank swung open Monday
morning shortly before o'clock. just
long enough to admit Alfred Ever, the
national bank examiner, and such
officers and clerks as were neces-
sary to assist him in his business.
The visit of Mr.. Ever was To take pos
session of the bank in the name of the
United States and by order of the
comptroller of the currency.
President Asa Potter's big bank has
failed, and it is failure that shakes
Boston to the very center. Happily, the
results do not now threaten to be so
sweeping and disastrous as might
have been the result had the crash
come suddenly or had the conditions
beer other than they are. Late
Monday afternoon the examiner sent a
message TO Comptroller Lacey inform
ing him that the liabilities of the bank
are s., 600. 900; cash ON hand, 81. 400, 900.
The Indebtedness of Asa z. Potter to
the bank is placed at 100, 900. lie
has made an assignment I. p. Beal,
president of the Second national bank,
has been selected as receiver,
Asa p. Potter. president, Col. Jonas
II. French and Thomas Dana, directors
of the Maverick national bank, were
arrested by United States marshals
Monday, the former at his summer
residence in Cohassett and the two lat
ter at THEN residences in this city
The warrants, it is understood, charge
embezzlement and violation of the
United States banking laws, which for
bid loans by a national bank to any
single individual amounting to more
than 10 per cent. of its capital stock
by law the proprietors of a national
bank are allowed TO borrow only 10
per cent. of the capital stock of the
institution on the same collateral. In
this case il is sand Asa p. Potter owes
81, 800, 900, Jonas ii. French $500, 900 and
Thomas Dana $500, 900, or total of
$4,000. 900, although under the law only
$4,000 could be properly loaned to any
one person.
The Boston banks have voted to as
sess themselves 3 per cent of the
amount of their 10 ans. This viii raise
about 81. 900, 900 for loan to the MAYER
ick bank depositors.
Tho friends of Irving A. Evans de-
clare that he offered up his life as
tribute to friendship; that he was
worth $500, 600 one year ago and gave
all that and more to save his friends;
that he kited checks between
New York and Boston; had enormous
arbitrage transactions in both ex-
changes to make clearings between the
two cities and assist the Maverick ma
tional bank TO meet one draft with an
other; that when this strain could
no longer be borne he overdrew his
account at the bank TO make his own
drafts individually square, destroyed
all evidence duplicating any other par
ties, and declining to return to the city
to effect settlement upon his own ae-
count at the bank, pat himself out of
this world to save Mr.. Potter and the
bank.
Upon Mr.. Evans books are five Joint
accounts. Joint account No 2 is what
Mr.. Evans termed to his associates and
confidential friends 1.-THE big account"
1t is this account that is $500, 900 under
water. There is no evidence out
side of one living man that shows
Mr.. Potter was the partner upon this
joint account 1t has been as
sumed by the bookkeeper and Mr..
Evans partners that this account be-
longed to Mr.. Evans and Mr.. Potter
Jointly, but Mr.. Potter's name is not
upon the books and Mr.. Evans in his
last letters denied it explicitly. To diff
ferent individuals within a year Mr.
Evans has said in conversation that Mr.
Potter had no joint account and no
transactions with him. Mr.. Potter has
been paid about $3.50, 600 as profits of
joint speculation with Mr.. Evans in
various checks, but Mr.. Potter de-
clares that he has received no
checks from Mr.. Evans for over
eighteen months, nor has he during
with Mr. Evans All of MIR. Evans
great speculations of the last eighteen
months have, however, been conducted
in the name of this joint account, and
it is declared by some people that the
Maverick national bank surplus was in
reality the partner on this joint account
Before Mr.. Evans shot himself his
family understood that he was in
solvent and that he owed the Maverick
bank $500, 900, with $4,000 nominal
collateral. and ii was a settlemen
with the bank that his brother had ar
ranged the day before the fatal October
Is. Mr.. Irving A. Evans was to have
come down that day to finish the set
Element with the bank. 1t was repre-
scented to the bank that the house was
S35, 900 under water and that the bank
should take the collateral and
sign a release to the house.
Mr.. Evans father and brother would
make that $50, 900 good to the house
and liquidate the creditors on the
basis of 100 cents on dollar This
settlement was executed few days
after Mr.. Evans death, and the bank
directors voted to release Irving A. Ev.
ans & Co. from all liability, amounting
to 5000. 600 1t is probable that the di-
rectors did not know the amount of the
liability they were writing off, for they
were assured that with this loss taken
the bank shares would still be worth
$3.50. As the collateral is worth but
little more than 500, 900, the loss taken
by the bank upon this account is about
$500, 600, but if the bank were other
wise good this loss should have only
reduced the surplus by 80 per cent
The CHILEAN Row.