The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-03
THEMAVERICK CRASH
President and Two Directors Of
the Bank Arrested.
FOR EMsEZzLINo THE DEPOSITS.
Broker Irving Evans Said 20 Have
killed Himself on Account OF
Dealings With Potter.

Bosrox, Nov 2-The doors of the Maverick
National bank bore two notices this morning.
One read CLOSED By National Bank Ex-
sTniner Ever" Immediately beneath was the
following: "Eotes due at this bank today may
be found at the Second National bank" Two
poicen stood at the entrance, having little
to do, there was no excitement and but few
people seeking an entrance TO the banking
rooms.
The losses OF the bank are estimated a. up
wards OF 100000, which viii have TO come out
OF the reported surplus and undivided profits OF
10000, the capital Of 500 900, and the loo per
cent. assessment that the shareholders may be
called upon % contribute. But as nearly ma
iority Of the bank shares are owned by Presi-
dent Potter Il 10 doubtful If the full assessment
can be collected The depositors, however,
should only lose fraction OF their deposits
The irregularities Of the Maverick bank have
extended back over period Of two years.
President Potter has made assignment OF
his individual estate but il 10 possible TO get
detailed statement for some days, as Potter is
sick at home. Potter's assignee says that at
present be has no idea Of the extent of Potters
personal assets and Liabilities. Potter's prop
erty al Cohssset is est ated 10 Be worth $780,
co. lie also has very heavy life insurance, the
aggregate amount of which 10 said to be $780,
90. Outside OF this, his bonds and bis pictures,
1t is not known whether Potter has any prop
erty.
Colonel Jonas II. French is preparing to make
an assignment of all his property to Henry D.
Hyde and N. +. Dickinson, jr. French says he
fully believes that II the affairs OF the Maverick
National bank are managed with wisdom and
prudence by a receiver, the stockholders and
depositors will get back all the money they
have entrusted 10 the banks care.
AT meeting OF all the Boston National banks
az the clearing house this morning resolutions
were unanimously adopted that all banks In
the association should at once combine TO re-
lieve the necessities OF the depOstors OF the
Maverick National bank by making an advance
TO such depositors upon security by assignment
OF their claims against the Maverick bank. A
committee was then appointed to carry the
resolution into effect. 1t was voted
shat the Maverick bank be ex-
PEELED from the association. The banks
voted to assess themselves per cent. OF their
loans. This will raise about 100000 for a loan
10 the Maverick bank. The general opinion is
that the action OF the associated banks in reliey-
ing the depositors by advancing on their claims
will avert any disastrous effects from the failure
The amount 80 advanced may be per cent or
more OF the deposits. dependent on the
strength of the borrower. The loans
due the bank By deposltors must first
be adjusted. The different national
banks will Immediately call a meeting of the
directors to ratify the vote OF the Clearing
80 that checks against the deposits in the Nav
erick National bank will still oe hon red at
some convenient bank where the com mittee will
make its headquarters.
Dispatches from various points throughout
the state tend TO show that tho loss by the
Maverick bank difficulties will not seriousIy
affect banking houses.
Lewis Lombard, second vice president and
Eastern manager Of the Lombard Investment
Company, says that the deposit OF the company
Ia the Maverick bank is ministerial, and that
the concern Is not affected by the suspension OF
the bank except by temporary inconvenience in
the matter Of keeping accounts. All customers
who hold checks on the Maverick bank, on the
return OF the same, will b. given checks on
other banks In which the LON bard company has
deposits. Several such checks were presented
this morning and redeemed.
Asa Potter, president, and Jonas II. French
and Thomas Dana, directors OF the bank, were
arrested by q United States marshal tonight
The warrants, 1t Is understood. charge ernbezzle-
ment and violation OF the United States bank
ing laws, which forbid loans by a national bank
TO asngle individual amounting to more than
10 per cent. Of its capital stock, The warrants
upon which the arrests were made charge en-
bezzlement and transportation OF the funds
OF the Maverick National bank. Although
the sums mentioned in the warrants
are nominal and comparatively small,
it IL understood that the amounts
involved will reach $500 900 in the case of Pot
ter, $4,000 in that OF French, and 500, 900 In
that OF Dana The arrests were made quite late
and Dana Is the only one who made an attempt
to secure bail He was brought before United
States Commissioner Hallett and furnished sur
cites in the of SIS. 900, but the names of his
bondsmen are withheld. In Potter's case bail
was placed at $4,000, and that OF French at
100000. The two latter remain in their respect-
i've residences tonight in charge of deputy mar
shals and will como before Commissioner Hal
lett tomorrow noon.
About s. 90 Of the Fireman's relief fund was
placed with the bank, also the John Boyle
O'Reiliy fund. about $4,000. 1t was reported
today that the Boston < Maine railroad had
100000 on deposit TO cover the November dlvi.
dend. General manager Euber this afternoon
stated that the road had 100000 in the bank at
the time OF suspension.
WASHrNGToN CITY, Nov 2-Thomas B. Beal
president of the Second National bank OF Boz.
ton. has been appointed receiver of the MAYER
lex bank. Comptroller OF the Currency Lacey
said he did not believe any other bank was
Involved in the failure. subsequently the
comptroller was informed Of the action OF the
Clearing House Assoc alton for the relief Of the
creditors OF the Maverick bank. lie said:
The action Of the clearing house was a verv
prudent, wise aud salutary measure. II VIII
undoubtedly IN the end restore confidence and
GEoF1 RELIEF 70 tue depJs tors whO-e funds are
temporarily locked up Oy the bank failure
NEW YORK, Nov 2--The suspension OF the
Maverick bank, OF Boston, did not cause much
surprise among the bankers of this city. 1t has
been talked about for weeks as the coming
event and II any Of The banks are involved taev
had chance to protect Themselves President
Barker, Of the First National bank Of this CITY.
returned from Boston last evening. He said tue
failure would not hurt his bank and that he
did NOT know whether Il would hurt other
banks or not He said there was no reason why
Il should.