The Helena independent., 1891-11-03
A Boston Institution Well-Known
in the West, Goes to
the Wall.
The Outlook Is Pretty Bad, Though
the Other Banks Will
.. Help.
No Panic Likely to Be Precipitated II
.Consequcnce--Thomas II. Beal
Appointed Receiver.

BosToN Nov. 2.-The doors of tho Nav
erick bank bore notices as follows this inorfl-
ing. One read: CLOSED by National Bank
Examiner Ever" Immediately beneath
was the following: "Notes due at this bank
to-day will be found at the Second National
bank" Two policemen who stood at tho
entrance had little to do, as there WAS no
excitement and but few people seeking
entrance into the banking rooms.
Lewis Lombard, second vioe-presi-
dent and eastern manager OF the
Lombard Investment company, says the
deposit in the Maverick bank is immaterial
and that the concern will not be affected
by the suspension OF the bank, except
temporary Inconvenience in the matter OF
keeping the accounts. All customers who
hold checks on the Maverick bank will, on
return Of the same, be given checks on the
other banks in which the Lombard com
pany have deposits. Several such checks
were presented this morning and redeemed.
At meeting of all Boston national
banks. at the clearing house this morn
ing, resolutions were unanimously
adopted that all banks OF the association
shall at once combine to relieve the neces-
sites OF depositors of the Maverick national
bank by making an advance to such depos-
itors upon security OF assignment OF their
claims against the Maverick bank. COM
mittee was then appointed TO carry the
resolution into effect. 1t was also voted
that the Maverick bank be expelled from
the association.
The general opinion is that the action OF
the associated banks in relieving the deposit
tors by advancing on their claims will avert
any disastrous effects. The banks have
A,>o thnvY nor
Of the amount of their loans. This will
raise about S4,O0O.00O for the loan to the
Maverick bank. Dispatches from various
points throughout the state of Massachu-
setts tend to show that the losses BY the
Maverick bank difficulty will not seriously
affect other banking houses. The
assignee says that at present he has no idea
of the extent of President Potter's personal
assets and liabilities Potters property at
Cohasset is estimated to be worth $3.50, 900.
He also has very heavy me insurance y ths
$500, ,OOo Outside Of this, his bonds and
his pictures, it is not known that Potter
has any property.
Asa p. Potter. president, Jonas II.
French and Thomas Dana, directors Of the
marshal tonight. The warrants, it is un-
derstood. charge embezzlement and viola
ton of the United States banking laws,
which forbid loans by national bank to 9
single invidual, amounting to more than ~
per cent. of its capital stock. 1t was re-
ported to-day that the Boston & Maine
railroad had 100000 on deposit to cover
the November dividend. General man-
ager Euber this afternoon stated
that the road had 100000 in the bank at
the time of suspension. By law officers
Of a national bank are allowed to borrow
only 20 per cent. of the capital stock OF the
institution on the same collateral. In this
case it is as A. p. Potter owes 81, 800. 900.
Jones French $sOO.OOO and Thomas Dana
100000, a total of $2,5000OO, although
under law only $4,000 could be properly
loaned to any one person. About $4,000 Of
the firemen's relief fund was placed with
the bank, also the John Boyle ORsilly
fund of about $17, 900.