St. Paul daily globe., 1891-05-09

the trust company went too" A bank
president, who was in consultation
with Mr.. Kennedy this morning.
made this statement: "This step has
been contemplated by Mr.. Kennedy for
some time. During the troubles of the
Keystone bank, rumOrs that were cir
culated about the Spring Garden banks
credit crippled the bank and injured itso
that it has never fully recovered, and the
trouble is that the loans could rot be
rapidly realized upon to meet the emer-
gency. and this brought the bank into
low condition. The only way
To RehabiIftate
the bank is to reorganize and put in adj
ditional capital. Mr. Kennedy has adj
yocated this to the people in the bank
for some time as necessity. Upon the
boards consideration of the banks
crippled state, 1t was deemed advisable
to call i'll the bank examiner" A
versant with the banks affairs,
blames the whole trouble on
the afiliation the Keystone.
''The strain was too much,"
he said, land the depositors were too
uneasy. The deposits have shrunk
100000 in two months, and were begin
ming to shrink faster. Mr.. Kennedy,
the president, is a man of unswerving
integrity. and it is generally believed
that, whatever the end may be, there
can be no breath of suspicion respect
ing the lawful management of
the banks affairs. The president
IS known in the, community
for his upright character and
general business ability, and
qualities, coupled with the fact
that he mas had his hand upon the helm,
directing the business himself. and sur
rounded by board of conscientious
and palnstaking directors, are sufficient
guarantee for NE that the best action
possible under the circumstances Will
be taken"
The feeling among the officers of the
bank seems to be that If the clearing
houses had shown more leniency and
had not pressed the bank for payment
OF its outstanding loan certificates the
suspension would not have been neces-
sary. An officer of the clearing house
said to-day that.the original indebtedness
of the bank was s4OO, 900. and that this
has been gradually reduced to $685.
600, at which point it has stood
for some time. The official also
declared that the statement that the
clearing honse had pressed the bank for
payment was erroneous, as it had been
hoped that the bank would be able to
Straighten out its affairs. 1t is said that
the clearing house week ago de-
manded from the bank S25, ZOO payment
on the loan certificates. and that as this
was more than the bank could stand, it
went under. President Kennedy was
seen this afternoon and asked for a
statement, but
Declined to Talk.
In explanation of his refusal, Mr..
Kennedy stated that he had been adj
vised by counsel not to make any state
ment. Josiah r. Adams, the assignee
of the Penn Trust company, said that
he could give no idea OF the company's
resources or liabilities at this time, but
that he would have statement of its
condition ready tomorrow. He said
that the company had line of de-
posits amounting to about S175,00
According to the statement of the bank
made to the clearing house Oh Monday
last its assets exceeded its liabilities by
81, 900. Among the items credited to
its resources was S2,427, 900 worth of
loans and discounts. That these loans
and discounts are not of gilt edge
character is practically admitted by
President Kennedy in his written
statement to the reporters. in
WHICH u6 ClJCu SOluO VI llC lfd-
sons for the closing of the banks
was impossibility to realize on its as
sets. Samuel B. Huey, counsel for the
bank and the trust company, said this
afternoon that the latter's deposits
amounted to S269,000. Of this sum $685.
600 in cash was locked up in the vaults
of the company and the balance was out
in loans and discounts, how good he did
not know. President Kennedy. his
brother, II. Fl. Kennedy, cashier of the
bank, and Nelson F. Evans, director,
are said to be interested together in a
number of ventures of more
or less speculative character that
have not proven to be very
successful. When President Kennedy
was asked about these speculations he
declined to make any statement regard
ing them. Among the stories of the
bank failures telegraphed from the city
to-day, the failure of the Pennsylvania
Trust and the Girard bank were men
toned. There was no foundation what
ever for this. The two institutions are
among the strongest in the city. The
failing institutions were the Spring
Garden National bank and the Penn
Trust company, an altogether different
organization from the Pennsylvania
Trust.