Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1891-11-03
IT wash ONE MAN BANK BANK.
How the Maverick National
Evaded the Law.
PRESIDENT POTTER UNDER ARREST


Direosors Dana and French Also Up on
she charge Of Embezzlcment--A Bank
gxaminer says the Liabilities Are as
GOO. 600 and the Cash sI.zoo, 900.
BosroR, Nov. ASA p. Potter presi-
dent; Colonel Jonas H. French and Thorn
a. Dana, directors Of the Maverick Nation
al bank, were arrested by United States
marshals last night. chared with ''the EN-
bezzlement and misappropriation Of funds
Of the Maverick National bank. Although
sums mentioned in the warrants are nom
inal and comparatively small, il is under
stood that the amounts involved will
reach 3. 500 600 in the case of Potter, $780,
0Dn In that Of French and $500, 900 IL that
Of Dana
Held in Heavy Ball.
Mr. Dana was the only one who made
40 attempt 10 secure bail He was brought
before United States Commissioner Hal
lett. and furnished sureties in the sum Of
$4,000 In Mr. Potter's case the bail was
placed at $4,000 and that Of MI French
At 100000 The two latter remain in their
respective residences in charge Of deputy
marshaAs
The Loases Over ~. 600. 900.
The losses Of the Maverick National
bank are estimated at upward of $1,000.
600 which wires out the reported surplus
aud undivided profits OF 81 900 0O0 the
capital Of S400. 600 and all OF the 100 per
cent. assessment that the shareholders
may he called upon to contribute. But as
nearly a majority Of the bank shares were
owned by PresidentPotter, some of which
he had pledged with savings banks, etc, il
is doubtful II the full assessment can be
ooRecsed The depositors, however, should
only lose a fraction Of their deposits.
"a Was a One Man Bank.
The Irregularities Of the Maverick bank
extend back over period of more than
two yeara President Billings says that
when he was bank examiner ten years agS
the bank was sound, except for the faul
Of oyerloaning or doing too much business
upon its capital. Cashier Eddy quietly re
signed from the bank several years ago
While the law requires eleven directors
for bank and the comptroller Of the cur
rency notifies banks with nine directors &
I'm their vacancies, the Maverick bank ha'
never filed isa board vacancies, except u
maintain the existence Of the bank by ty'
directors, but all save one or two OF thu
i've are practically dummies II has beer
for many years one man bank.
How They Broke the Law.
BY law the directors Of a national banl
ARE allowed to borrow only 10 per cent o
the capital stock of tho institution on thu
same collateral In this case i is said tina
Asa r. Potter owes 81, 100000, Jonas II
French $500, 600, aud Thomas Dana SiOO,O0O
or a total 81 g. 500 600, although under th
law only $4,000 could properly be loaned
to any one person.
some OF ths Losers.
The Boston and Maine railroad had 400
900 on deposit at the Maverick bank e
cover their November dividend.
Abont s. 600 Of tho Firemen's Relic
fund was placed with the Maverick bank
but TIE hulk % the fund is securely locke
up rs the city treasurer's safety vault.
Ia The Maverick was also the John Soy
oReiny fund, amounting TO some sl1uv
Colonel James II. French says that ne n'
MOI made an assignment. lie iurtha
states that ne fully believes that il I'd
affairs ~ the Maverick National bank AZ
managed with wisdom. stockholders an
depositora win get back all their money
Tie Boston banks have voted TO asses
themselves 8 per cent of the amount Z
their loans This viii raise about Si,OO0,W
Tor loan 20 the Maverick bank depositors
Liabilities. 90, 600. oOOs Cash, 81 400, 90
WARRINGTON. Nov Srhe comptroll
OF The currency has appointed Thomas
Beal receiver Of the Maverick Nation
bank OF Boston Mr.. Beal is president
the second National bank Of Boston. N
Eggeg. the examiner in charge Of the Nav
nick bank, reports that the liabilities
the Maverick bank are s, 900 900, aud {
cash on hand 81 400 600
Comptroller Lacey does not believe th
any other bank Is involved in the failur