Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-03
The Maverick National Bank of
Boston Closes Its Doors.
TEN MILLIONS ON DEPOSIT.
The Associated Banks Agree to Make Loans to
maverick Bank DepOsitors.
Oh. Capital. Surplus and Undivided Profits
sad to be Wiped Out, but DeposItors
VIII Get Something Like 15c on
tie DoIIar-Csuse of Trouble.


Dos-OT Mass. Nov. 2.-The Maverick
,sr.olal bank suspended payment to-day.
SIs dee sion to close its doors was reached
af,-ra urOtracted conference of the clear
inc house committee of the Boston national
Inks at o'clock Monday. The official an
-a.g CEMENT of the Suspension was made by
Il clearing house committee last evening
il rhr call FOR L meeting of the members of
,..rearing house to-day 10 take action upon
> a-u--it.on commended by the commit
,,.rHat all banks composing the aSSocia-
,7.-. mite ia making advances in cash to de-
r s.rors IN the Maverick bank The call
s.s-al mat the object of making these ad-
-aa..s is lu relieve the temporary embar-
r.-,ueur u the depositOrS, and that the
H.rl IS closed by the examiner acting under
distractions Cf the comptroller of the cur
relry.
The :aue late cause of the suspension
-r.s tna suicide OF Ervng Evans and the
taku4'ch followed it. The loss caused to
H.. uaaE bT its dealings with Evans was
nj large enough TO seriously injure it,
heinz not more than 100000, but the talk
If the street made the banks loss far
greater The facts in the matter are in no
81. discreGitable to Mr.. Potter The
d...-i's of the bank ten days ago amounted
10 more than slO,V1OO10. During the last
wee. more than $l.7O0, 600 was withdrawn.
$40 Treasurer Martin withdrew some
5000 Z lie commonwealth funds, which
ygafs- uI deposit there. Other trust moneys
wore also taken ont. The situation was
fully realized by MIR. Potter and his as
sr.aics. They met it manfully with all
liza resources al Jhcir command. But the
pressure became too great.
II is stated that Bank Examiner Nc
Grader Who las been Investigating the af-
fans of The bank, reported to the authOri-
's al Washington last January that the
bunk was iusolvcnt. BY the last sworn
s.lteneut of inc bank issued September 30
Isi. il was shown that the assets of the
bsgk ucJGaa Il capital of 100000, a sur
MS Of 100000. and undivided profits of
isl mere than 500, 600. 1t is claimed that
tn clearing house threw out all assets
vu5ra they considered worthless and de-
d.c,,l 20 per cent from the rest of the
s-u.ties. and declared that The capital.
srl and undivided profits We're wiped
o.. and that what WAS left would fall short
Of meeting the liabilities This would indi-
csc tUat deUOSitors might expect dividend
Of - cents on the dollar.
At a meeting Of the Boston national
bnE- nc clearing house this morning
Tue lu.'cv.ug resolutions We're unanimously
a4oftet:
tut,i tha, it is the Judgment of the
crlr.l- house that ali banks constituting
this association should at once combine to
.I..e ln necessities of depOsItOrS Of the
Maverick ma. ionIl bank BY making a writ
tl agreement among themselves to ad-
ylur' money TO such dePOsitorS upon the
security ot the assignment of their claims
5g..U- said Maverick national bank.
30 s. That committee of ten repre-
S.r4-iErs of the banks be appointed by the
c'.r. who shall have full power to execute
. Be-. l,,l,.
81" .Sz citation all terms and details in the
premises, ard TO call upon the banks of the
atlrul for such sums of money as may
be- urs SAP. provided that the banks shall
contribute Ia proportion of their average
-'..9 les reported TO the clearing house for
tie mouth II April, 1891.
Every bank was represented at the clear
mEa'.~e meeting when the resolutions
r.a"alu.lg be Maverick bank We're voted
ana "a c-Gmlite tee was appointed TO carry
then u.n ELECT. 1t was voted that the
Maverick national bank be expelled from
,Ar association. Formal papers will be
drafted aud sent cut for bank signatures
NH.- jal, II. French says this morning
N. BE-" His aot made any assignment. He
'.' states ha; he fully believes that if
u5 fHe Maverick national bank
ar .araTra with wisdom and prudence by
ue % tar, the stockholders and deposit
t'ts SSH. get back all the money they have
M s.oa 10 the banks care.
%" OPS If The bank bore two notices
ms morning. one read:
't.>t hT order Of the national bank ex-
Immediately Doacath was the following:
wis uue nj this bank to-day will be
le-a- 81 'Nc Second national bank
lNn policemen stood ON the steps at the
wac. ,-t Congress street entrance but
ID ... 'o do, as there was no excitement
.". Bod. .ew people were seeking entrance
In ''n Banking rooms.
lH. losses Of the Maverick national bank
az rrra'ed al upwards of $1,000 900, |
" ..r. Wipes out the reported surplus and
'r undivided profits of Sl,0O0,OOO, capital |
. Eit.vav aud all of the 100 per cent assess |
u ..-' NAT shareholders may be called upon |
~ Cd. rHuic. But is nearly majority of |
a..a s4areS were owned by President |
/ Her. some Of which he.had pledged with |
: jag h.a-S. etc, it is doubtful if the full |
as silent eau be collected. DepositorS, |
. '.E should only lose fraction of |
DEPOSITS The irregularities of the |
a. .tE * bank extend back over a period |
t1-.p aaU lwo years.
iir. .ieut Billings says that when he |
ssa> .sHE examiner three years ago the |
.t .'t-N SOUND except 1Or the 1ault OF |
1,.''-.~4ilS or doing too much business |
y d Us capital. Cashier Eddy quietly re
,,,,-.e from the bank several years ago |
." .t iat law requires eleven directors for |
9. ...l.6 aud the comptroller of currency |
I. Mes banks with nine directors 10 fill |
-. Nnrauu,es. the Maverick bank has
Eve. red It's board vacancies except to
- 3. .d." ,Ee existence of the bank by hav-
-, -.'e directors, but all save one or two |
' we i've were practically dummies. 1t |
= - o'en Tor many years a one-man bank.
!. ''-- a.eD SingUlarly free from known !
!, 'S,> 81 o. Nr. Potter has been accounted |
y. q s. .J1Ee Of business paper in Boston.
- ,tl ire mas caused q more active de-
-, I, iHr call money.
>, business N time money has for the mo-
- been suspended, except depositors'
:. ~,Na'rons in their own banks. The gen.
: |; trl1u IS that the action of the asso-
49, banks in relieving depositorS by ad-
-..'.''s money on their claims will avert
\. '-' aiSaSrous effects from the failure.
~ ~. amount so advanced may be so per cent
:, more on each deposit, dependent in
! - . -T1 Oh the strength of the borrower.
ll-.'.S -le the bank by the depositors must
- INST adjusted. President Potter has
:, 40 assignment of his individual estate
n ,,gNmaster Thomas n Hart and Henry
l. my Postmaster Hart says it will be
|, -lOS5 Sole to get detailed statement for
a., ,-s layS, as Potter is sick. The Boston
rs.. have voted to assess themselves 3per
~ ol the amount of their loans. This
Il. ~ fuse about S4,o00,0o0 for the loan to
y aFerick bank depositors.