The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1891-11-06
THE REFORMER.
FRIDAY, NOVEMBER 6, 1891.
MASSACHUSETTS NEWS.
BANK SMASH AT BOSTON.

m"'VVV,VVO-SenshtlOna DovelOpmentbs
The Maverick National bank suspende
payment Monday morning. The decision +
close Its doors was reached after protracte
conference of the clearing house cOmmitte
OF the Boston national banks at O'Clock tina
morning. The committee, however, did 1t
best to avert panic or any other trouble b.
recommending that all the banks composing
the association unite In making advances II
cash to the depositors In the Maverick banl
to the extent of the value of the deposits II
that bank. The suicide of "Nervy" Evans i
what precipitated the failure, though It nov
developes that the bank was rotten from
other causes. 1t has always been regarded
witn more or less suspicion In banking circlel
bee use of Its methods, and rumors of trouble
spread rapidly last week and caused run
The deposits In the bank ten days before
amounted to more than $10.06O,0O0. During
the last week more than 81, 900 was with
drawn, and clearing house balances OF over q
million day had to be paid for two or three
days.
irving A. Evans Il Co., owed the bank
100000 for which 1t had collateral OF nomin-
al value # 100000, but really worth only
100000. 1t is claimed in behalf OF Evans
that this was money sunk In joint specula-
lions of his and Asa P. Potter's, thepresdent
of the bank, and shown on the books Of
Evans Il Co., as "joint account, No. Y" with
out giving any names. Potter admits that
they used to speculate together, but denies
that they have had any joint account for
year ana half, though the cheek Is shown
by which he drew out over 100000 profits
since then. Anyhow the bank directors vot-
ed on the day before Evans suicide to accept
the collateral and release the debt, which
meant loss of 100000 to the bank.
The trouble was preciplated by the refusal
of a brother of Irving A. Evans, who Is
bank president, to accept certified check of
the Maverick. The suspicion aroused by this
transaction caused the investigation by the
clearing house committee Ind the condition
of affairs revealed Is indeed astounding. BE.
sides this $500,000 loss, three OF Its directors
owe 1t betwenn $2,000,0O0 and $2,500,0O0.
Asa ?. Potter, the president, owes 81 ,10O.-
600, Col. Jonas H. French, 100000 and
Thcs. Dana, the third director, about $780,
600. These large amounts were obtained
through the Endorsement by these parties of
notes made by parties of no financial respon-
sibiity. such as clerks and stenographers In
Mr.. Potter's case. at least, these were plain
notes, unsecured by collateral In many cases.
In view of these facts, the prediction that the
bank will pay 70 cents on dollar, seems
rather hasty. 1t Is said on good authority |
that the bank had cash enough on hand to |
pay depositors % cents, and beyond this the |
matter Is extremely pr0bematical. The bank |
has only 100000 capital and tie limit by |
law that could be loaned to any one man or
firm was $4,000. 1t appears that the bank
has never had In recent years full compile.
ment of II directors, as the law required. and
that of the five 1t had, all but Potter, French
and Dana we're dummies.
1t has long been supposed that the bank
was large purchaser of southern and west
ern paper, on which 1t was supposed to be
getting high rates of interest. 1t was feared
that this would eventually get the bank into
trouble, but, as matter Of fact, this paper is
not the poorest of the failed institutions as
sets. The assets, as whole, are thoroughly
bad. The bank held some commercial paper
Ia. In tab A., otnpI
than the other banks would allow. for the :
purpose. 1t is sad,o the responsibility which |
such holdings conferred. The assets of this !
character amount to perhaps $2.0O0,0OO out
of total assets Of about $11 100000.
These three directors have been arrested on
charge of misappropriating the banks O
money. This thing began long ago but the a
most extensive operation In which they en-. 1
gagged was about three years back. when they
met with enormous losses In wheat deal. 9
The obligations of Mr.. Dana, 1t Is said, were Fl
SO heavy at that time that he gave notes of i,
his firm to secure the bank, and that practi. 4
caly the Maverick bank has furnished the n
capital since required for Mr.. Dana. Some g.
of the speculations in which Messrs. Potter, II
French and Dana are credited with having T
been interested were of an extensive ma s
ture. with alternating large gains and losses,
but In the end the losses largely predomi- =,
mated.
The Boston News Bureau says eThe fr
friends of Irving A. Evans declare that he Of
fered up his life as tribute to friendship; fl
gave all that and more to save his friend ;that ca
he kited checks between New York and Bos- tt
ton; had enormous arbitratage transactions dl
in both exchanges to make clearings between Z
The two cities and assist the Maverick Nation at
ii bank to meet one draft with another: that st
when the strain could not longer be borne, he is
)verdrew his account at the bank to make d,
MS own clients individually square destroyed q
advances duplicating any other parties, and, ST
lechning to return to the city to effect a set.
cement upon his own account at the bank, W
)ut himself out of this world to save Mr.. IA
Potter and the bank. Mr.. Eyans's dying
words to his wife were ''don't blame Asa"
The bank has, however, on this rotten ba-
us been doing wonderful business. Last
september 1t claimed surplus and undi.
It $50 easily. 1t did large foreign ex- M
change business, drawing bills on all parts of TO
treat Britain and Europe, and also on China az
md Japan, and making cable transfers to all ia
hese countries. Another leading feature of III
is business was the placing of money by tel. Is
graph throughout the United States and Di
canada, atfording facilities to parties wish. OF
ng to make immediate payments at distant CT
points. Even back to war times 1t handled re
government bonds In large quantities, and 1t re
ook the lead In negotiating the per cents. I'll
Mr.. Potter has been man of great popu.
arity. Mr.. French had fine record, was In "a
he 18th Vermont. on Buffers staff at New la
orleans, and the intimate friend of Farragut, en-
las several times been Democratic candi. ~
late for Congress, and was chairman of the VI
State committee. He has been engaged In sn
many large business enterprises, and pro- TN
esses confidence that he has assets enough IN
0 pay his debts. In
The First National bank at Damariscotta
de-, had to suspend Tuesday because 80 Br
ouch of its funds were locked up in the Nav pa
rick. This Institution bad a great business a q
With country banks to which 1t offered extra in
and more than So ,000, 900 of De
heir money was In its vaults. 1t was the q Il
'oston correspondent of 81 Vermont banks ref
Buried In the Cellar. wa
At Plainville Tuesday morning the body of \
Irs Nellie Kenyon. Holmes was found buried ocI
Y feet deep In the cellar under ner home. ii
be body had apparently been In the ground \
,yeral weeks. The skull was crushed and ga,
ne arm cut off. William b Holmes, second !
usband of the victim has been arrested. He on,
enies having had any thing to do with the nv
rime. mo
Beverly. had one of the worst fires of her De
story Sunday. 1t started In the large box r
Glory on Revere street owned by Geo. H. cor
lien of Lynn, and spread rapidly. Before S Soo
was quelled over 100000 Of property was aS
,stroyed. There were 20 buildings ablaZe 80
one time. r
Ex-President Cleveland had great re cep III -
on at fremont temple In Boston Saturday
'ening, the crowd massing itself before the tur
,ors leading to the hall before six O'Clock so pei
to fill TIemopt street. The doors were Sot
,ened an hour later and the crowd poured eve
In a dense mass, so that the temple was leel