New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-29
AFFAIRS OF THE WASHINGTON NATIONAL
REPLY or THE CONTROLLER OF THE CURRENCY
TO BANK EXAMINER HEPBURN.

REPLY or THE CONTROLLER OF THE CURRENCY
TO BANK EXAMINER HEPBURN.
Washington. March 2s.-Mr Lacey. Controller Of the
Currency. DAY received the ofical report Of National
Bank Examiner Hepburn In regard To the washington
National Bank of New York. recently closed; but he
refused to disclose the contents Of tho report lie
has, however, addressed communication to Mr.. Hep
burn suggesting that only two courses are open IL
recelvershp is TO be avoided.
In tsg st pl-oc. the Controller can levy nm assess
ment OF 30 per cent upon the capital stock, when
would reinforce the assets Of the bank by S15O,OOo
cash This can be done. however, only In case the
directors larger stockholders agree to advanco
money for shareholders not prepared for Immediate
payment. 50 that the whole amount may be PAID III
without delay those advancing the sums awaiting re-
imburscment until all the shareholders shall have paid
their assessments.
In case thl. amount were paid In, the controller
SAYS he would ptnit the bank to resume business and
the amount, due depo,itor, and creditors would be
Immediately available. lie says this course Is pre-
icred for the reason that the assets would be worth
fon 10 To- 20 per cent more the bank should resume
than If 1t is closed bv rcccycr~hip or liquidation
In case resumption f, fcund mpracticablc. the
Controller suggests that S3j7. 600 I'm addition 10 the
Immediately available assets already In hand would
enable the bank to pay it, creditors promptly in full,
whrrcupon they could vote t. % into voluntary lgul-
daton and close the affairs o the bank themselves
This 93j7.0O0. the Controller suggests, might DC
raised upon pledge of the leans ana discounts of tlc
hank supplemented, If necessary by the personal
guarantee Of the larger shareholders. The second
plan. the Controller AVS would be much more rN-
pcditlOuS and somewhat more economical than re-
ccivcr.hip He aGds that hc hopes that one or the
0thrr Of these plan, bc adopted otherwise II VIII
bc his duty appoint receiver and close the bank
mp the usual way
The banks stockholders will meet tomorrow and
discuss the situation. II rumored In connection
with this that tho directors would consult or Monday
with United states District Attorney Mitchell in order
10 ascertain what his opinion 10 thc nature OF
the transactions which John :. Silver has had with
the bank TO see whether they were criminal. Mr..
silver st Keeps away from the reporters. and In
the meantime bits Of history of his connection with
tho I'll fated American Loan and Trust Company keep
coming to the surface, and yesterday pretty full
chapter was completed. When Rowland y. Hazard was
president Of the American Loan and Trust company
Mr. Silver wa borrower 10 the extent OF $4,000,
which has not been paid up according 10 tho best
information Obainable When the Decatur, ChcSa-
peale and Ncw orleans RarOad was irving 10 build.
and the Decatur and Nashville Construction Company
was trying to help build the road. they together
borrowed about 2:.60,OOO from the trust company.
Mr. silver instrumental in obtaining part OF This
money for the railroad and construction company.
The trust company Is etil hanging to some OF the
collateral Of the unfinished railroad. Of which Mr..
silver WAS president when the loans were elected