Evening journal., 1891-05-21
THE FAILURE A BAD ONE.
Deplorable Condition of Bunnell
& Scranton's Bank.
DEBTS THREE TIMES THE ASSETS.

UID1C lun11 1lMDO III AODL1 .,
The Liabilities Are Quoted at $500, 900
while the Assets Are About 500, 900.
Many Poor People at New Haven Lose
Their Hard Earned Savings.
New HAVEN, May 2l.--Again this city
has had great financial blow, and hun
dreds Of poor people have before them the
knowledge that they will lose all, or near
" all, Of the hard earned money they de
posted with the bank Of Bunnell & Scran-
ton When the senior member Of the firm
died recently twas rumored that the bank
was in financial straits, and now what was
expected and dreaded has come to pass.
BAD Blow to New Haven.
Charles w. Scranton, the surviving part
ner Of Bunnell & Scranton, has made an
assignment City Treasurer f. G. Stod-
dard was named as the assignee, and
Judge Robertson fixed May % for the
hearing on his appointment Thus the
business crash which has been expected
since the death on Saturday Of II. II. Bun
nell has come, and IL will be a long time
before New Haven recovers from the blow
which is the most severe since 1873. when
the banking house of Edward Scranton,
brother OF the present insolvent banker,
failed, with liabilities Of 100000 and as
sets OF less than one-third Of that amount
Liabilities, $500, 900; Assets, 800, coo.
c. w. Scranton, the surviving partner
called consultation at his house. Lieu
tenant Governor S. Il. Merwin. II. q. Stod
dard, James d. Dewell, C. 5. Leete, who
are all bank presidents, and one or two
big creditors and lawyers were present
He showed them rough statement Of the
bank s condition, which showed that the
liabilities were 100000 and the nominal
assets might reach 100000. Il was APP
parent that there was nothing to do but
make an assignment.
wall street speculations.
There are all kinds of rumors as TO the
cause Of the failure, but the most generally
accepted one is that the firm has been
specializing on Wall street with the de
posits, which was also the cause of the
failure of Edward Scranton in 1873.
Then, too, Bunnell & Scranton. have been
paying per cent interest on deposits sub
ject to check, which the bankers say is bad
fnancierng as savings banks can pay but
4 per cent. in Connecticut. II was this
high rate ofinterest which attracted wom-
en- and other depositors who have not had
much business experience MIR Scranton
said that the failure was caused by an un-
fortunate occurrence OF accidents, while
prominent creditor said that he had every
reason TO believe that the bank had been
insolvent for four OF five years
A. l.
especially as no statements Of the banks
condition can be obtained from Cashier
Newton
The Worst lis Feared.
The worst is feared, aud creditors are
not sanguine that the assets will come
anywhere near 500, 900, or will pay more
than 20 per cent The best assets Of the
firm are a policy in the New York Life In
surance company on the life OF Mr.. IL. H.
Bunnell payable TO the firm, and Mr.. Bun
nell's seat ia the New York Stock eN-
change, which is said 10 be mortgaged @.
w. Scranton made personal assignment
also. lie is the son Of Serene II. Scranton,
for many years president OF the Shore Line
Railroad company who made big fort
une ia railroad building IN the south, but
lost It all by the failure Of his son, Edward
Scranton. The happiest man in town is
Lester 3. Mallory, whose balance at the
defunct bank is twenty-nine cents. Mr..
Mallory had $1,000 there until Tuesday,
when be drew il all out.
what the Depositors May BE Out.
The books show Si5sOOO due TO deposit
ors Of cash Some depositors are not slow
20 criticise the firm. Among them are
Watson " Coe, former Chicago grain
merchant. William G.. Pratt, editor of The
Journal and Courier; Adolph Sachs, dry
goods dealer; Lester p Mallory, Of East
Haven; Maxy Hitler. Henry Chatiield and
Or. Robert Crane. Mr.. Crane, Mr.. Sachs
Mr. Chatheld and Mr.. Hitler have about
5000 each in the bank; Mr.. Cronan, the
wealthy paperbox manufacturer, has sew
eral thousands there; Alderman Frank G.
Bushnell OF the leading firm Of wholesale
grocers, had $500 with the firm Of trust
funds belonging TO an estate which he was
settling But few Of the depositors are able
70 bear the loss, and some are elderly men
and women Of small means who viii feel
il bitterly.