Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-09
ANOTHER BANK GONE.
The Spring Garden of Philadelphia
Forced to Stop Business.
BANK EXAMINER DREW CLOSES 1T.
Again Philadelphis City Is Loser to the
Extent Of $4,000.
PENN TRUST COMPANY ALSO ASSIGNS

ESPECIAL TELEGRAM TO THE prsPArcn.i
PHILADELPHIA, May s.-National Bank
Examiner Drew, by order Of the Controller
of the Currency, to-day closed the doors OF
the Spring Garden National Bank, at
Twelfth and Spring Garden streets. The
Penn Trust and Safe Depost Company. IN
institution doing business in the same build
ing and having practically the same set OF
officials, went into the ha nds OF an assignee.
While the President and other Off claim
that the chances Of the banks resuming
business are good and that the suspension
would be only temporary, the general i'm
preston on the street is that the affairs Of
the bank are in very bad shape. No de-
tailed statement was made public to-day,
and President Kennedy said that it would
be impossible to prepare one for.several
DAYS. --..
Bank Examiner Drew took charge of the
bank at II 80 o'clock; at l o'clock closed
the doors and soon afterward squad OF
police marched up and took up their stations
around the bank. The news of the closing
of the bank spread quickly and within half
an hour there was crowd about the build
ing, that steadily increased. Men and
women with bank books in their hands
thronged about the doors demanding ad-
mitiance.
PhiladeIphia Caught for s144,O00.
To all the same answer was returned:
"No one is allowed inside" Meanwhile
all sorts o rumors were set afoat regarding
the condition OF the bank and the causes
which led to its closing. Many indignant
depositors claimed that they had deposited
money in the bank within half hour of the
time of the closing.
Again the city is caught in the ruin, the
Spring Garden Bank having been named az
one Of the repositories of the city's money,
and when the doors closed there was $144,-
900 on deposit there. City Treasurer
Bardslev and City Controller Thompson
were both at the bank during the afternoon,
but both claimed to know nothing of the
causes which led to the suspension, and had
very little to say about the suspension.
Mysterious rumors connecting the defunct
keystone Bank with the suspension are
afoat and together with the reports that are
current regarding the affairs of the closed
bank and its management, have created
great excitement. AT IL o'clock the suspen-
sion was announced at the Clearing House,
and the news circulated throughout the
business centers rapidly. 49,. 81
Causes OF the Failure. T,~
Each car which arrived brought people
to swell the crowd, which 1t required the
entire efforts of the police to keep moving.
No one vas admitted TO the bank, and all
the satisfaction the public got out Of re.
peated inquiries at the door as to the cause
which led to the closing Of the bank was the
following statement, issued by President
Kennedy shortly after IL o'clock:
Wa n, fhis ~, roi dactHaA 20 v,Ia,a tba
bank In the hands OF mr. Drew. the National
Bank Examiner. This step has been forced
upon US principally by reason OF the large with.
Sency
the continued dullness Of general business
since. To meet these demands and maintain
9spG s W. have 'Ss s..
below In our reserve for some
mediate prosper Of Of increasing Il.
House Committee for outstanding loan certf.
neates, the payment Of which 10 being pressed.
These facts. coupled with the. disturbances Of
ness upon the part Of some or our depositors,
together with the weakening Of our credit with
the other banks. We trust that the suspension
will only be temporary.
Finances of the Bank.
The banks stock was quoted two days
since at 121, par 500, and on Tuesday last
1t declared adivdend OF ~ per cent on
Its capital Of $3.50, 900 and carried %, 500 to
its surplus fund, making Its total surplus
1882, 800. The last statement Of the bank,
under the Controllers call showed loans
and discounts &, ,170, OPS 18; National bank
notes outstanding. S45. 900; individual de-
posits, subject to check, 81, ,998, $50 "a; de-
mand certificates Of deposit, $1,000; undi-
vided profits, $41 ,72504.
The officers of the bank are F. W. Ken
nedy, President; Fl. II. Kennedy, Cashier;
N. Middleton, Vice President. It is sup
posed that the Kennedy family was largely
interested in various real estate operations.
Some years ago, when the Spring Garden
was q State institution, the Kennedys were
heavily interested in real estate at Bradford
Hills, near Downington.
The Spring Garden Bank was established
in 1871 under the State banking law and |
continued in operation as State bank for q |
period of IA years. In the fall of 1885 the |
institution was reorganized as National
bank. The Penn Safe Deposit and Trust |
Company, which was an adjunct Of the
Spring Garden National Bank, is State
institution, and was incorporated Novem-
Der 8, 1870, with capital ofs$125 600, par
500. No dividends have ever been paid.