New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-02
A BOSTON BANK FAILS.
THE MAVERICK NATIONAL GOES UNDER.
FOLLOWING THE SUICIDE OF IRVING EVANS.
(BY TELEGRAPH TO THE TRIBUNE


lBY TELEGRAPH THE TkIBUSE.1
Boston, Nov. 1.-The Maverick National Bank
of Boston has failed, and its doors will not be
opened tomorrow. President Asa Potter has been
struggling for weeks to avert the inevitable and
his difficulties have been bridgcd over by friends
as long as possible, but the load
became too heavy, and Saturday evening
the banks in the association notified Mr.. Potter
that they could no longer carry him, and the
end came.
This bank has had snowy career, and con-
servative men long ago predicted that it would
sooner or later go down with crash.
Mr.. Potter's ability as a financier kept IL
afoat when it would have gone under in less able
hands The Journal" says that the Immediate
cause Of the banks suspension was the suicide OF
Irving Evans and the talk which followed It,
The loss caused the bank by its dealings with
Evans was not large enough seriously 10
iniure it. The Journal said few days ago
that the creditors of Mr.. Evans would not lose
more than 100000. That is true. and i is also
true that not more than S20O.0 900 Of that amount
falls upon the Maverick Bank. But the talk OF
the street made the banks loss far greater. The
stories included rumors Of the ugliest description
about Mr.. Potter and his relations with the dead
broker Most of these stories were entirely false.
The facts in the matter are in the possession OF
The Journal" and while the present situation
does not justify their publication. it can be said
unequivocally that they are in no sense
dscrcditablc to Mr.. Potter. The Inevitable
effect began to be felt more than month ago.
Some of the principal depositorS withdrew their
accounts The deposits in the bank ten days
ago amounted to more than 81 100000. Dur
ing last week more than Sl,7O0,O0O was with
,,,h. .lro,.r cnp,a
$4,000 of the commemorative funds which
were on deposit there. Other trust moneys were
also taken out.
President Potter said this afternoon: Yes, IT.
is true that the bank will not open lis doors to-
morrow morning Bat | had no idea that such
would he the CAGE until l o'clock this morning.
There is nothing 10 be said now except that no
other institution will be in any way imperilled
by the suspension Of the Maverick. That know.
and you cannot put it too strongly"
Mr. Potter said that he should make an as
signment personally. lie was confident, however,
that he was perfectly solvent. Later in the
day he decided TO make Thomas n. Hart and
Henry ID. Hyde his assignees. Colonel Jonas II.
French a director and Mr.. PotterS associate LII
tie management of the bank. will also make an
assignment tomorrow. 1t Is believed also that
his affairs will prove to be sound. Ills assisneeS
have not yet been named.
of small depostOrs on its books, and II the pank
should be unable To meet the demands Oh thlS
class there will he great deal Of suffering. One
hotel clerk said tonight that he had $1,000 there
The capital of the Maverick Bank is only S4OO,-
900. There is no doubt, that the bank
has done the largest sni'as business Ss,ton on e e
the country. A year ago, it reported . surplus o'
$500,O00. That, of course, has now disappeared.
es resy fs% sSF lands Of Its the prcsden Ms Pot
nearly 1,4OO shares, and Colonel Jonas A.. frencn
holds between 500 and 500 shares. ineSe e, TWO tSo
have for hss sSas Dada @
other banks, mostly country institutions, keep
the deposits S have ragged from SlO,oOo,oOo to
$13,000,000.
The Journal" says:
In illustration Of the hostile attitude borne toward
5 ra hs nd ocxhE tie hySS pDr pa%A o N & With
Bostois most prominent inancierS Is given ,,i' Inc
was Of put h as TO the rmors Tna. re
ing the bank. Ills answer was to the effect tnat a
ever since Mr. Eyans death ma, hHSwdss ss asveyc Ts
Sar'enS Was hard ppesSed S am sstlsfcd,s s sSa S,
nqed wai Sse% of ths hat ded
the fact that the bank was insolvent. Last septem-
bers showed even worse sas ,o1 81 aa az s
that Mr.. Magruder the bank exanlner repore,dd 10 70
Mr. Lacey Controller OF the Greney e sns result masr gi
Why Mr.. Lacey took no action thereon Is past hdihg
out: 49,, >,,r.,,o,, So,,oro, p,n,, ot
Asa Potter OF Colonel French and the rest of tem is
all over, and rightly So No man who Is the cu'odiaI
and trstec OF millions of dollars belonging to other
people has any right to enter upon unlimited specu-
ation There are certain fixed and infeXble laws avs
that guide TO business success and II these boundaries
are passed failure Is the inevitable result Mr. Potters
methods and aims look upon AS IN every way .d,c II,
Tor help. 1 tell you, II the situation were reversed
and Potter was on the top ana the % oer CIR bank, andeE %
ulp deaf ears. 30 Tar us lnc
talk that the suspension of the Maverick Bank will
there Tnsre will be- no such result Depolors readily
make an assignment Of their claims and borrow money
ppSi ppsits 'e' II viii vi be good thing All around believe
have all end put TO such practices as the Maverick
II should be borne in mind that what Is here set
down Is merely 10 give, sample Of what IS IS sad by
president Of the boston National Bank. says in his
opinion there could not be a better time for bank
failure II such unfortunate thing must come said
prosperous condition Money Is easy srs Is Iees
Ing Of hnsSei eodeaSe Wo ea stand
without serious effect. Those immediately involved
and d.positors. believe have had sufficient warning
10 prepare for any emergency. The other Boston
aeS n sSre the are Bank and the s Situation
has been appreciated looked into the matter Tor
oae ad we secured are D the @o
/ believe. The New-York correspondents Of the Nav,
possbility The Mave,cE had the deposits Of great
many country banks, but these were numerous and
20 scattered throughout ew-Engand that | cant
believe that any one of them will be crippled. HAD
this come last November there Is telling who would
not have had to go to the wall with IT,
The sudden death of Bank Examiner John W.
AIagruder in this city this evening adds tragic
interest 10 the failure OF the Maverick Bank. Mr..
Nagruder had been i'll for several months, suffer
ing from Brghts disease, which had in its last
stages assumed the type of heart failure and when
he received a telegram to-day ordering him to in
vestigate the Maverick National Bank, Mr.. Magru-
der grew suddenly worse and died. lie was hity-
one years old was O native of Maryland, and for
several wears was resident OF Georgetown, ID. Z.
lie secured clerkship in the Treasury Depart
ment several years ago, and was from time to
was appointed bank examiner of this district. In
bis early life he was captain in the Regular
Army.