Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-03-24
"HUNG ON A HOOK
rHg WASHINGTON NATIONAL BANK OF ggw
YORK TO BE CLOSED.
Its Capital is Greatly Impaired Through The Reckless
Loans Of It's President 10 Paraolar Friends
That Official Utterly Frustrated WEsn
the Situation Was Discovered.

NEw YORK, March 23.-OGicial an-
nouncement was made late tonight that
the Washington National Bank, at No.
| Broadway, would not open is doors
tomorrow. The banks resources have
been loaned ont by the President 10 two
friends, and the discovery OF its condi-
tion was accidentally made. The bank
is not member OF the Clearing House
Association, but clears through the Cal
latin National Bank. Under new rule
of the Clearing House. which went into
effect on January /, the banks clearing
in this way must submit their accounts
10 examination by the Clearing House
To-day Bank Examiner Hepburn, rep
resenting the Clearing House. appeared
at the Washington Bank 10 examine iis
affairs. He soon discovered that it,
capital was impaired.
As soon as this announcement was
made President sherman. who ha, been
In charge Of the bank, was prosirated.
but recovered sufficiently 10 Inform the
directors that ho had been too liberal
in loaning money TO his friends Two
accounts have been discovered. that foot
up sl2l, 900. are probably total losses.
One Is for $40, O0O, secured by poor aud
worthless collateral. and the other
draft for $50, COO on John sylvia. which
had been cashed by the President and
hung on the hook" 10 is said that
Mr.. sylvia has promised 20 make this
draft good tomorrow.
The bank had 4 capital ~ S50o.On0
and deposits of $500. 900. The only of
ficerS present when the complete an.
nounccment was made by the Bank
Examiner, were the cashier. y. T..
Granger, and Director Sidney TIgham.
The president had then gone away. mo-
one knew where. The President of
the Gallatin bank at once gave notice
that his institution would no longer
clear for the Washington Bank. This
news prevented any attempt being made
TO figure up the losses. Director Tilg-
ham said: THE bank will not open
tomorrow. Il will be- placed in charge
of Bank Examiner Hepburn, aud most
probably wound up. am positive that
every deposItor will be paid In full. "
Cashier Granger said that develop
ments are surprise 10 both himself
and the directors, none Of them had any
idea that the president was involved loo
any irregular transactions and hc could
say nothing about the details Of the
method by which the funds were with
drawn.
In an interview with Mr. Sidell TIlgh-
man, director in the Washington M
tional bank, says. The reason of tho
notice given by the Gallatin National
Bank that they would cease to clear fnr
the Washington National Bank, was CO..
casioned by an examination OF the lf-
fairs OF the Washington National Bank,
which showed that the capital wa.
impaired. About one week since
discovered some slight Irregularities
in regard TO the affairs of The bank
which brought To the attention of 'hr
directors AT their last regular meeting
on Thursday last, aud at my request
was placed Ia charge oi the bank.
began ln investigation which disclosed
an impairment Of the capital of about
$50 900"
President sherman. OF The Washing
ton National Bank. was visited 800 Orr.
home this evening. In answer to ih"
accusation that he had given great ltt-
tude to friends IN loans aud accepted
undesirable securities. he said. "rhc
first loan was made 10 cover au over
draft, because wanted 10 save the bIuk
from loss aud the man from failure
He Admitted tha. the securiiy WAS
not first class Wall street collateral.
but he hoped to recover the money Boo
very short time. llc did nor believe
and does not believe that The account
will be- lost. But the serurity he bad
taken would not stand The scrutiny oi
the clearing house. This oycrdraft wa.
between S7l.OOOand So, 600. Tho Soc
ond transaction was not a loan. A
man opened aud continued ON account
by depositing checks iu out OF toan
banks. aud he also deposited drafts
on his priucipal In Bridgeport. Conn.
The checks were paid without any dfl-
iiculty. Later on one or two were r"-
fused. The President received co.
port from his Bridgeport correspondent
that tho brass firm which thi. gentle
man represented did q good business
and had good credit. But even after
checks began 10 come back be- c0r-
tinued to honor this mans paper boz.
cause he Ohe President WAS fearful thaf
the man might be embarrassed, and Do"
believed that he would make everything
good eventually. Some ~ The drafts.
the President stated, hsd been paid
quite recently. but Just 40 present hr
was unable 10 put up any cash. Prc.i-
dent sherman acknowledged that iho
directors had not been informed
OF the first transaction. but they
had known. he said, ~ tbo
others. The Bridgeport Fcntlcmaa
whose name President sherman with
held, claims that he will have the cash
soon. The sum involved iu this WIS
s6O. 600 The collateral for this which
has been pronounced not gili-cdge. va,
a mortgage on real estate in New ork
and a deed OF out-of-town property
The third transaction was a loan
OF g. 300 secured by first mortgage
bonds OF the Prescott and Arizona Cen
tral Railroad 10 the amount of $4,000.
These bonds were considered good.
President sherman said that the d"po
tors would be all secured. There would
be some little loss. but that would come
of OF the stockholders.
EDITORS MEET
And One ~ Them IL Dead The Handy.