The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-11-03
TWO MILLIONS.
Estimated Losses Of the May
eriCk National Bank.
Irregularities Extending Over a Period Of
More Than Two Years.
President Potter and Two Directors Arrested
for Embszzlement and MiSappr0-
priatiOn Of Funds.


Boston, Nov AT a meeting of all the
Boston national banks at the Clearing
ho use this morning resolutions were uuaai-
mously adopted that all the banks in the
association should at once combine TO relieve
the necessities of the depositors of the
Maverick National Bank by making an ad-
vance to such depositors upon the security
of an assignment of their claims against the
Maverick Bank. A committee was then ap-
pointed to carry the resolution into effect.
1t was voted that the Maverick Bank be
expelled from the association.
The doors of the Maverick Bank bore
notices this morning, one reading: "Closed
by order of National Bank Examiner Ever"
Immediately beneath was the following:
+ "Notes due at this bank to-day will be pad
at the Second National Bank"
Thsdifferent national banks will imme-
diately call meeting of the Directors to
ratify the vote of the clearinghouse Asso-
citation, and arrangements Will soon be
made that checks against depositQrs in the
Maverick National Bank will be honored at
some convenient bank where the committee
will make its headquarters The losses Of
the Maverick National Bank are estima ted
at upward of s., 100000, which wipes out the
reported surplus and undivided profits ofone
million dollars, capital of 100000 and all
of the 100 per cent assessment that the
shareholders may be called upon to con-
tribute. AS nearly majority of the
shares are owned by President Potter. il is
doubtful if the full assessment can be col
lected. The depoSitors, however, should
only lose fraction of their depo sits The
Irregularities OF the Maverick Ba nix extend
back over period of more than two years
The general opinion is that the action of
the associated banks in relieving the depos-
itors by advancing on their claims will
avert any disastrous effects from the failure
The Boston banks have voted to assess
themselves per cent of the amount Of their
loans. This will raise about S4,O00,000 for
loan to the Maverick Bank.
President Potter made an assignment of
his individual estate, but 1t Is impossible TO
get detailed statement for some days, as
Potter is sick at home. Pott'r's assignee
says at present he has no idea Of the extent
| OF Potters personal. assets and liabilities.
| Potter's property at Cohasset is estimated
to be worth S15o,000. He also has very
| heavy life insurance, the aggregate amount
! of which is said TO be S5G0,0O0. Outside of
this, his bonds and his pictures, it is not
| known if Potter has any property.
Lewis Lombard, Second Vice-P President
and Eastern manager OF the Lombard In
| veStmeut Company, says the deposits OF the
| company in the Mavarck Bank are imma-
| teria, and that the concern will not be af :
| fected by the suspension of the bank, ex-
cept temporary Inconvenience in The matter
| of keeping accounts. All customers who
| held checks on the Maverick Bank on the
| return of the same will be given checks on
| other banks in which the Lombard Com
| pany has uepoSlte d. =.
Colonel Jonas II. French is preparing to-
make an assignment of all his property to
| Henry D. Hyde and NJ F. Dickinson Jr
Asa =. Potter, President, Jonas II. French
and Thomas Dana, Directors of the bank,
were arrested by United States Marshals
to-nilht The warrants upon which the
| arrests we're made charge embeZZlement
| and misappropriaton of funds of the Nav
erick National Bank. Although the sums
| mentioned in the warrants are nominal and
comparatively small; it is understood the
amounts involved will reach $780, 600 in
the case of Potter, 5000, 600 in that of French
| and 100000 in that of Dana. The arrests
were made quite late, and Dana was
the only one who made an attempt to secure
bail. He was brought before United States
Commissioner Hallett aud furnished sureties
in the sum of $4,000. but the names of his
Dondsmen are withheld. In Potter's case
bail was plared at Sl50,000. and that OF
French at 100000. The two latter remain
in their respective residences tonight in
charge of Deputy Marshals and will come
| before SOUlilllSSlOntE 1dlleht lU-iDOlTOW.
1t was reported to-day that the Bostor
and Maine Railroad had 100000 on deposit
10 cover the November dividend. Genera
Manager Euber this afternoon stated thai
the road had 100000 in the bank at the
time of its suspension.
1t is said that Asa P. Potter owes the
bank 81, 100000, Jonas II. French $500, ,00t
and Thomas Dana S400.000, or a total o.
So. 900, although, under the law only
$4,000 could properly be loaned to any one
| person.
About 5000 of the FIremen's Relief Fund
was placed with the bank; also the Johr
Boyle O'Reilly Fund, about $1,000.
AN EXAMINER IN CHARGE.
WASHINGTON, Nov. 2.-Lacey, Comp.
troller OF the Currency, received informa
tiou this morning that the Maverick Ma
tional Bank of Boston had closed It's doors
He said an examiner was in charge of tn,
bank and that a. receiver would be ap
pointed in few days to wind up its affairs
He said while the exact loss is not defnitel.
known it was clear the bank was insolv
ent. and that as its capital, surplus ant
undivided profits amounted to 81, 100000 i
followed the loss exceeded that amount
He added, he did not believe any othe
bank was involved In the failure. Subse
quently the Comptroller was informed o
the action of the Clearing house Associa
tiCn for the relief of the creditors of tn
Maverick Bank. "The action of the Clear
ing-house was," he said, "a very pruden,
wise and salutary measure. 1t Will IN
doubtedly tend 10 restore confidence an
afford relief To depostors whose funds ar
temporarily lockei up by the banks failure
The utmost expedition, will be made in th
I appointment of a receiver, who will be Sc
, | lected with view to realizing the larges
amount from the assets and prompt divis
ion of the proceeds among the creditors.
The report received from the examiner thi
l morning shows the liabilities of the Nav
erick Bank TO be SS.0oO.OOO. and cash o
hand S1,400,000.
, Thomas B. Beal, President of the Secor
National Bank of Boston, has been a.
pointed receiver of the Maverick Bank.
THE FAILURE EXPECTED.
! New YORK, Nov. 2-The suspension
the Maverick Bank of Boston did not eau
! much surprise among the ba mixers of tn
5 city. 1t had been talked about for a wee
as a coming event, and if any banks wei
: involved they had chance to protect then
3 selves. President Baker of the First n
tional Bank of this city returned from Be-
ton last evening. He said the failure wou
: not hurt his bank, and that he did not kno
a whether 1t would hurt any other bank {
e not. He saw no reason why it should.
r FIERCE FLAMES.
n. .f