Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1891-03-24
The Washington National Rank Closes
on Account OF Imprudent
Transactions.
the GERMAN suNorsRATh AND
AMERICAN PORK.
ParneiI NJ siigo.--O'i'rien aud biiion
Transferred.-IIcaiy and the
IIowling Mob.
ny telegraph 10 tho NKws
WARRINGTON NATIONAL BANK.
Its President says uc sas nee" To"
Liberal Toward. TITS friends'


Liberal Toward. tits Friends.
NEW York, March 2a.-Oflclai an.
nounccmcnt was made tonight that
the Washington National Bank NJ NO.
] Broadway would not open liza doors
tomorrow. The banks resources nave
been loaned out 10y the prcsident 70
two friends, and the discovery OF Us
condition was accidentally made. The
bank IL not n member Of the Clearing
House Association, but clcnrr through
the Gsllatin National Bank. Under
rule OF the clearing house, which went
into effect January lst,th banks clear
Ing In this way must submit their ac-
counts H. examination by the clearing
house. Today Bank Examiner Hep
burn, representing the clearing house,
appeared Mt the Washington Bank, Ia
examine IL affairs. lie soon discov-
erred that It's capital was Impaired. A-
soon M this announcement was made
President sherman, who has been IN
charge OF the hank, was Frustrated, but
recovered sufficiently TO Inform the
directors TINT he hhd been too liberal
IN lending money 10 his friends.
Two accounts have been discovered,
footing up sl2o,0OJ, that arn probably
total lOsacs. Ga, II for $4,000, secured
by poor and worthless collateral aud
the other draft for $4,000 on John
sylvia, which had been cashcd ny the
president and chung ON the hook"
II IL said Silva has promised to make
this good tomorrow. The bank has
capital Of 100000 and deposits OF
100000.
The only officers present when com
plrtc announcement was made by tue
hank examiner were Cashier j. t.
Granger aud Director Sidney Thigh.
man. The president had gone away.
no one knew where. The president Of
the Gallatin Bank at once gave notice
that bis institution would no longer
rlcnr for the Washington Bank. This
news will prevent any attempt being
made 10 max. up the loss.
Director Tilghman said: "rhe bank
will 10 placed Ia charge OF Bank tx
SIMMER Hepburn, aud most probably
wound up. | am positive that every
deposition will be paid In full" cash.
Ter GIninge. said the developments
wurp "a surprise both 10 himself
ana the directors. None OF them
had any idca that the president
was Involved In any Irregular
transactions aud he could say moth.
Ink about the details Of tho methods by
which the funds were withdraw.
Director 'rilghman said he discovered
some slight irregularities about week
ago. An investigation disclosed An
impairment In the nelghbOrhood OF
BIZ, 900. The officials Of the Gallatin
National were very friendly, and pro.
mlsrd 10 continue 10 clear Tor the bank
II the impairment was made good.
Tilghman was about topay IN a check
Tor sa5, 900 today, when President
Sherman disclosed other things which
had been concealed, increasing the i'm.
palfmcnt fully $4,000. Under these
circumstances, rilghman did not see
how the bank could continue.
ave began business last juno" he
said, "wilh paid up capital OF $780,
200. The directors all had confidence In
President sherman, and II did seem M
though man who had been cashier Of
an active New York bank for mum.
Der Of years, which had deposits and
capital amounting 10 nearly S,OOl,0DD,
would no ablo TO run successfully
small bank startling with Sj00,OOO
capital. The directors have held regl-
lar meetings aud given considerable
attention to the details Of the bank,
but II seems that II was not possible 10
follow the intricaclcs OF u well conceiv.
ell plan for hiding facts la regard 10 the
condition VI the bank. Our net de.
pOslts Mt the present time are only
about $500, 200. our capital, although
only 100000, feel sure IL more than
enough to secure every depositor. l
an positive that every deposllor will
be paid In full without any call on the
stockholders"
President Sherman was seen this
evening. He feels keenly the closing
Of the bank and said II was unneces.
nnry, and that all would have been
right II the directors had let him
alone. Answering the accusation that
ne had given great latitude In loans
aud accepted undesirable securities, he
said the int loan was made 10 cover an
overdraii, because he wanted TO save
tho hank from loss and the man from
failure. lie hoped 10 recover the money
ina short time, but admitted that the
security was not ilrst.olass collateral.
That overdmft was between SO, 900 aud
10000. The second transaction was
where man opened and continued an
account by depositing checks on out Of
town hanks and drafts ON his principals
In bridgeport, Conn. Ono or two Of
the drafts were refused, but Ms tho
bridgeport correspondent reported the
Arm was good he (Shermnn) continued
To honor the paper, because he feared
the man might he embarrassed, and he
believed ho would eventually make
everything good. Some Of tho drafts
had been paid quito recently. Tho
directors, he said, knew OF this trans
action, which amounted to $4,000.
Another transaction was the loan OF
$500, secured by iirst mortgage bonds
Of tho Prescott n Arizona Railroad 10
the amount Of $4,000. These bonds,
he said, were considered good. Preal-
dent Sherman said the depositors
would all be secured. There would be
some little loss but that would come
out Of the stockholders. The depoai-
tors might have 10 walt short time,
because money had been lent ON notes,
which eauld moi hg enll.Qtad naxV