New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-27
THE BANKS FATE UN NCERTAIN
OPPOSITION TO REORGANIZING THE WASH
INGTON NATIONAL
THE DECISION WILL REST WITH THE STOCK.
HoLDERS-EXAMINER HEPBURN FINDS


HoLDERs-ExAMINER HEPBURN FINDS
NO EVIDENCE OF coLLUsIoN.
That there will be a reorganization Of the Wash
ngton National Bank is by no means a settled
thing. Strong opposition TO snch plan has de-
veloped in the Board Of Directors. Sdell Thigh
man, through whose efforts the unmaskng of the
banks condition, and of President Evan q.
Shemans business methods, was principally due.
is especially ontspoken in opposing any reorgan-
zation the foundation of the Washington Ma
tional. Other directors. however. strongly
opposed to winding up the affairs of the institu-
ton. General G. NJ. Dodge, the vice-president OF
tie bank, who is now in Tacoma. has telegraphcd
his disapproval Of that course, and he Is supported
in his position by several of his colleagues Gem
eral Dodge is said TO one-sixth of the capital
stock of the bank. and his opinion viii have great
weight in tie final decision of the Board. In
the meantime the wishes of the stockholders are TO
h. ascertained as far as possible, on the question
of reorganization.
meeting of the directors vas held Yesterday
afternoon at the bank. There were present Sidney
Dillon. W A. Robinson. H. V. NewcOmb. G. Is.
Newton, Henry Lewis, Sidell Tilghman, Chester
w Chaplin, and the cashier j. I. Granger. Presi-
dent Sherman did not appear at the meeting.
His absence not matter OF surprise to tns
that Mr.. Sherman can do them no good and no
more harm. General Dodge had not yet returned
from the West. and r. II. RountTee was detained
from the meeting by sickness National Bank
Exam.ner A. p. Hepburn met with the directors.
The directors were ciOscted in the presidents
room at the bank until late hour in the after
noon Mr. Tilghman acted as chairman Of the
meeting No definite action was taken. The
directors expressed their opinions as - the posi-
bility of reorganization, and discussed the con-
dtion Of the banks loans. 1t was resolved to
learn the wishes of the stockholders as far as
possible, and to be guided by them in the final
decision The calling of another meeting was
left to the discretion of the chairman, Mr..
Tilghman. The directors said to represent
about 80 per cent Of the capital stock. Alto
gether the stockholders number apout seventy
five. and include men in Chicago Fort Worth,
Des Moines, Newcastle. Ind, Louisville. Balti-
moro, and MiddletOwn Springs, VT. A large
majority of the stock, however. is held in New-
York City.
After the meeting of the directors, Mr.. Thigh
said:
Personally, do not thinl, it would be ad-
visabe to reorganize the institution. Bank presi-
dents are not born every day, and We have no
one to take the Office. The bank was not started
right in the first place. Its capital was too
small and its methods of business too large"
Your own name has been mentioned in con-
ncction with the presidency. Would you acceptp"
asked him.
Il would not take the place under any circum-
stances" replied Mr.. Tilghman. Several wealthy
men made proposition this morning TO reorganize
the bank and increase its capital to 81 100000, II
would accept the presidency. Without hesifa-
ton refused to consider the offer. would not
be director in any bank established on the
foundation of this one
When asked as to the feeling Of the Board In
regard to reorganization, Mr.. Tilghman said i
do not feel at liberty to speak for any one put
myself The directors are waiting TO hear from
the vice-president, General Dodge, and his voice
will have a big effect in the ultimate decision.
General Dodge telegraphed that, from the krowl-
edge he had, he would favor reorganization. But
Of course it is impossible for him to have any,
thing like a full knowledge of the situation as we
found it on last Monday
Bank Examiner Hepburn said that he had MADE
no new discoveries in the banks affairs. lie
pIaeed the Indebtedness of John s. Silver at $751;
600 an increase of 81 1000 over the published
report The mysterious thi:d debtor, concerning
whom questions have been diligently asked, ana
who was supposed 10 owe the DanN at ieas1
$50, 600 without security, turns out to oe multi
peX pcrscnage. That amount OF lndepue"hess
does exist, Mr.. Hepburn says, but 1t is DIVIDED
among a number of dcpOsitors. That Mr. Hep
burn is inclined TO look one of the hopeful
features of the situation lie expressed the beAef
that the payment of az least portion OF that
indebtedness could he secured. Mr.. Hepburn
sent his first report to Controller Lacey Oh We'd
ne,day niuht and forwarded further details
yesterday. .,.
When asked as TO the probability OF the arrest
of Sherman or silver, Mr.. Hepburn sand: Il
know of no move in that direction. | have dlS-
covered no sign of c0llusiOn in the transactions
with the Dahk, and | do not think there was
any" ,
ii was learned that President Sherman and John
= Silver were down town yesterday IN consulta-
tion with their lawyers, and II was reported tnat
rbev were together in a lawyers O'lce at one time
during the day. There more gossip YESTERDAY
about Mr. Silver and his financial difficulties
Il wa. learned that he still owes Eugene Kelly,
the banker. some money that he borrowed on the
bonds of the Eastern and Western Alabama Kali
road and thp Rome and Decatur. Grovesteen a.
Pe were interested in the first road anu silver,
IL rs said. furnished construction materials 10 the
road securing his money from Mr.. Kelly. Sideil
1ilghman the managing director of the Washing
ton National Bank. said yesterday that Silver was
not a stakeholder in that inst t.u0n.
WASHINGTON, March 2G.--lhe Controller OF the
Currency to-day tclcgraphed Bank Examiner Hep
burn 10 encourage the Stockholders of the WASH
incton National Bank of New-iork i'll their efforts
10 make good the impairment OF its capital and 70
resume business.