Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1891-11-03
TWO MILLIONS GONE.
Lowest Estimate of the
Boston Failure.
SOME INTERESTING FACTS.
Too Much Confidence Was Placed in
President Potter's Ability.

Of vii Ter speculation. the Maverick bank
crash the arrest Of its managers, 80 rms
the tragedy which began with the report
of "Nervy" Evans pistol, and which found
It's climax last night Ia the arrest OF Pres
ident Potter, Directors French and Dana
and Cashier Work oa charge of enbez.
element and misapplication OF the funds
OF the Maverick National bank. 1t is
estimated that
The Losses Of the Bank
will exceed g 900, 900. which will wipe out
the reported surplus and undivided profits
OF 81 900 OO0 the capital OF 800 O0Oand all the
100 per cent assessment which the share
holders may be called upon 10 pay. As
Mr. Potter owned large part of the
stock, some Of which had been pledged
with savings banks, etc, IL is doubtful II a
full assessment could be collected.
Although there was no sale Of stock OF
the bank as reported on saturday, there
was IA bona llde sale earlier in the week,
when share brought $50
! 1t il said hat irregularities in the man
agement of the bank have been extend
ing back for n period Of two years. Mr..
Billings, who was bank examiner ten
years age, reports that the bank was
sound at that time. but there was ten
great business for the capital. Cashier
| Evans quietly resigned his position several
| years ago.
! According 10 the law there should be
eleven directors TO bank, and when
there is an institution with only nine the
comptroller is 10 notify II TO fill the vacan-
cies Notwithstanding this law the Nav
erick National Bank has
Never FiIied Is vatalcies.
and has maintained it's existence with
these five dire 1tors: Asa p. Potter, Joseph
w. Work, Henry T. Woods, Jonas ii.
French aud Thomas Dana. The bank has
been zone man" bank for years. In this
time it has been sirgularly free from
Losses, as Mr. Potter is one Of the best
judges Of business paper in Boston.
Opinions vary somewhat as TO tho
amount which depositors will receive, but
tho best authorities place 1t at about 7b
! cents on the dollar. The assets OF the bank
are said to bs OF such n nature that the re-
ceiver only will he able to tell what they
will yield The dep sits it is said amoust
TO about SsOOO,OOO.
President Neal OF the Second National
stated that il was absolutely impossible
| for any man to say definitely what the
| creditors of the Maverick bapk would re-
ceive Only opinions can be advanced. 10
remains for the receiver to determine tho
standing OF tie bank. and after that q
statement can he made, aud not till then.
The General Condition
Of the Maverick Bank may he epitomed as
follows: 100000 capital stock; $500 900
surplus; <250C00 undivided profts-all
gone, no one is willing TO tell where; all NJ
completely wiped ont n. il it had never
existed To meet these losses the bank
has for creditors Asa Potter who owes 10
s., 600 or more; Colonel Jonas II.
French owes 10 more than 5000, 900; there In
au unpaid loan TO Irving Evans Of S400, 900;
Thomas Dana owes II $500 900.
Indulgent creditors and accommodating
United States bank officials gave the bank
two weeks in which To square these ac>
counts, and there was feeling that Mr..
Potter who was known 10 have carried 10
through so many tight places, would be
equal To the occasion. His tremendous
resources were proved by his paying
Enough the clearing house within week
the great sum Of A., 800, OOO but at that
poiut he stopped short and the officials at
Washington saw that il was no use to ex-
end the timo further, and so they took
Possession.
Mr.. potter's Reso urces.
An investigation discloses the fact that
Mr. Potter's property nj Cohassc' stands
in bis own name and is free fr ~ all in
cumbrances IL Is estimated ~ the
property has cost him $4,000 Iut it 10
not likely that at forced SAKE Il would
realize more than a third OF that sum.
The purchasers are relatively few whs
would care 10 buy 30 extensive place.
The Commonwealth avenue property
stands In the name OF Mrs. Potter. The
property Is very desirable aud valuable,
but, Of course, the creditors have no claim
upon it.
Mr. Potter has a heavy lie insurance,
tho aggregate amount Of which il said to
be ia tho ne ghborhood ~ $500, 900 This
also is beyond the reach Of the creditors,
40 that whatever fn,nclal misfortune be-
falls Mr.. Potter personally his family will
be well provided for.
Outside Of his Cohasset property, his
horses and his pictures, 1t Is not known
that Mr. Potter has any property in addi-
tion % hi. investments In speculative &c.
curities. What his equity in these will
realizc il il too early TO predict; ia fact,
ther. had been no information yet dis
closed to indicate what the volume, char
scter ard probable value OF these securi-
ties will 10
Tiagrant Violations OF Law.
Another story tells something OF the in
terror workings OF the bank. BY law
the promisors 81 national bank are al
lowed 20 borrow only lop.r cent. OF the cap-
tai stick % the institution on the same
collateral IL this case IL is said that Asa
p. Potter owes 81 300 600 Jonas II. French
100000 and Thomas Dana t400,00o or .
total Of - 800, 900. although under the law
only 10000 could properly be loaned to
any one Icrson
Expelled from the CIeafing House.
The Clearing House association met
yesterday 10 take action regarding the
affairs Of the Maverick Bank. Every
bank that is member Of the association
was represented IL was unanimously
voted that the Maverick National bank
be expelled from the association.
Resolutions were adopted by which tho
other banks will unite 10 protect dcposi-
tors In the Maverick bank.
Outsiders Interested.
NEwBURG. n. Y, Nov, s--The Quas-
slack National Bank Of this city had go, =
/ cls IN 80, ,f.,,.is ~t,h a.. NJ. v.x.L n l.