The morning call., 1891-03-24
TOO LENIENT.
Suspension Of a New York
National Bank.
Funds Of the Institution Loaned to The
. Friends Of the President.
Death Of Mrs. Anne Charlotte BOtta Of
Pneumonia Comments on the Ruling Of
Secretary Foster on Geld Shipments.
Special to THE MORNING CALL

NEW DIRK, March 23.-O1ncial announce
ment was made tonight that the Washing
ton National Bank, at l Broadway, would
not open its doors tomorrow. The banks
resources have been loaned out by the
President to two friends, and the discovery
of its condition was accidentally made. The
bank is not member of the clearinghouse
Association. but clears through the Gallatin
National Bank. Under rule Of the Clear
ing house, which went into effect January
1st, banks clearing in this way must submit
their accounts to an examination by the
Clearing house. To-day Bank Examiner
Hepburn, representing the Clearing house,
appeared at the Washington Bank to ex-
anime its affairs. He soon discovered that
its capital was impaired. As soon as this
announcement was made, President Sher-
man, who has been in charge of the bank
was prostrated, but recovered sufficiently
to inform the Directors that he had been
too liberal in lending money TO his friends.
Two accounts have been discovered footing
up S12l 600 They are probably total losses
One is for $4,000, secured by poor and
worthless collateral, and the other is draft
for $4,000 on John Silva, which had been
cashed by the President and hung on the
hook" 1t is said that Silva has promised
to make this good tomorrow. The bank
had a capital of 100000 aud deposits of
$4,000 The only offirers present when
the complete announcement was made by
the bank examiner were Cashier j. I.
Granger aud Director Sidney Tilghman.
The President had gone away, no one knew
u ,T tInN N,11 II
at once gave notice that his institution
would no longer clear for the Washington
Bank. This was to prevent any attempt
being made to take up the losses. Director
Tnghman said: THE bank will be placed
in charge of Bank Examiner Hepburn, and
most probably wound up; l am positive
that every dep0sitor will be paid in full"
Cashier Granger said the developments
were surprise to both himself and the Di-
rectors. None of them had any idea that
the resident was involved IN any irregular
transactions, and he could say nothing
about the details OF the methods by which
the funds were Withdrawn.
A DIRECToE's STATEMENT.
Director Tilghman said he discovered
some slight Irregularities about week ago.
An investigation disclosed an impairment of
the capital IN the neighborho9d OF $4,000.
The officials of the GaIiatin National Bank
were very friendly, ana promised to con-
tinue to clear for the bank if the impair
ment was made good. TnGhman was about
to pay in check for $4,000 to-day, when
President Sherman disclosed other things
which had been concealed. increasing the
impairment fully S60,000 Under these cir
cumstances Iilgnman did not see how the
bank could continue, I'VE began business
last June" said he, with a paid-up capital
of S3OO,CO0. The Directors all had conf
dence in President Sherman, and it did
seem as though a man who had been cashier
nf a N aptIVn n pW Y NUrE hank IQr mum her
OF years, which had deposits and capital
amounting to nearly S1,O0O,0J0, would be
able t. run successfully small bank start
ing with $500, 900 capital The Directors
have held regular meetings and given con-
siderable attention to the details OF the
bank, but II seems II was not possible to fol-
low the intricaces of a well-conceiY Ell plan
for hiding facts in regard to the condition of
the bank. Our net deposits at the present
time are only about S6O0 900. Our capital,
though only $500, 1000. L feel sure is more
than enough TO secure every depOsitor. l
am positive that every deDoStor will be
paid in full, without any call on the stock
holders.
OTHER FAILURES.
Schwab Bros, manufacturers of cloaks
ana jerseys on Green street, has confessed
judgments aggregating S57,O3l. The att0r-
neys place the liabilities at $250000, with
assets sufficient to cover 1t If time is
allowed
\ 1ORk (Pa.), March 23.-MlchaeI SchaIl
aud James Ii. DGnner, trading as Schall S
Donner, bankers, have assigned. The liza
biltieS and assets cannot be aScertained
but it is-a complete failure, the liabilities far
exceeding the assets.
MILWAUKEE, March 23.-The Milwaukee
Bridge ana Iron Works. of which Messrs.
Keepers and Riddell are the principal stock
holders, assigned this morning. The liabili-
ties of the company are 100000. The as
sets are not given. but it is asserted that
they will exceed the liabilities. Slow col
lectiOus caused the failure.
LOUISVILLE, March 23.-The Grand Jury
will investigate the failure of Sch wartz &
Co., bankers, ana 1t is said that criminal
prosecution will follow. The assets now
turn out to be nothing.
TOLEDO (Ohio), March 23.-The Sheriff
to-day attached the old Chamber of Com
merce building, formerly occupied by the
Produce Exchange. A petition for judg-
ment on note Tor $4,000 and foreclosure
OF a mortgage securing the note was filed by
the Penn Mutual Insurance Company
against John b. Carson and administrators
aud heirs of james p. Gamble, deceased.
George Beckwitl was appointed receiver.