Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1891-11-06
Failure OF the Maverick Bank.

The financial world had on Monday a
very decided sensation in the announce
ment of the failure of the wel-known
Maverick national bank of Boston. the
largest institution of its kind in New Eng
land. The bank had a capital Of S4OO. 900,
its surplus was $500 600. and its undivided
profits were S2OO.OOO. II was no uncom-
mon thing for the bank to have 10000
900 on deposit, though of late. on account
OF distrust of the institution i'm the inner
financial circles of the city. the amount of
the deposits had very largely fallen off.
The failure of the bank is Immediately
connected with the failure few davs be-
fore OF the prominent brokers firm of Irv-
ing A. Evans Il Co. Mr. Evans. the head
OF this firm, was one of the most daring.
and, as the event proved. one of the most
reckless spectators on the Boston board.
lie had, indeed, acquired the familiar
name of Merry Evans on account of
this popularity. Less than three weeks
ago his Boston associates were astounded
with the news that he had taken his own
life at the summer home of his uncle I'm
New Hampshire. A week later his firm
went to the wall disastrously, and now this
has been followed by the failure of the
Maverick bank, with whose affairs he was
tied up to the extent of some 5000 600
There had been many other causes. how
ever-a long series of reckless or iniudi-
cious management which led to the banks
downfall. Its president, Asa p. Potter.
was one of the most prominent bank men
in Boston, and he stood very high in the
general public rcpute. He had been con-
nected with the bank for 20 years. The
event proves, as it has in so many other
cases, that he was the one man power
which ran the institution. without any
strict or responsible oversight on the part
of his directors. In fact. directly contra
ry to the United States law, there were on
ly hve directors when there should have
been eleven, there appear to have been on
ly two who took an active interest in the
bank management, and these were tied up
with the president in the operations which
led to the downfall of the great institution.
Suspicion was so far aroused last week
that committee of the Boston clearing
house association made an investigation of
the banks affairs, Col. Albert l.. Newman.
the president of the Commonwealth bank,
being one of the five members of the com
mittee. As a result of their Investigation
communication was had with the national
bank examiner who, acting under the in
stuctions of the comptroller of the cur
rency, ordered the bank to be closed. This
decision was reached at a late hour Sun
day night and the general public had
no premonition of the disaster until the
hour for opening on Monday morning. On
Saturday the shares of the bank were
quoted at $3.50
To save individual depositors from dis
tress, and to narrow so far as possible the
margin of evil results from the banks fail
ure, the clearing house committee recon-
mended that the banks composing the as
sOciation unite in making cash advances to
the Maverick depositors and this was
promptly done. Under the conservative
and generous palicy thus pursued no fur
ther failures have resulted. 1t is believed
that the total loss by the failure will reach
S2,O00,OOO. The present estimate is that
the depOsitors will be paid about 20 per
cent of the amounts due them.
On Monday evening Asa p Potter, the
president, Col. D. II. French and Thomas
j. Dana, the latter being the two active di-