Morning journal and courier., 1891-05-22
THE BANK FAILURE.

by the bank. Ono former business man who has been in poor health for year and suffered severe losses finds himself confronted by the stern fact that he has $000 in the bank which he made a few weeks ago, and which constitutes about all of his worldly possessions. Another we'll known and esteemed citizen, prominent builder, kept his accounts with the late firm, from which he paid off his men Sat- urday nights. He had $1 200 standing to his credit at the bank when it closed it's $150, ,000 went to which the bank reports as gone to where the woodbine twineth. Neither member of the firm was supposed to be deeply engaged in speculations. AL though it was known the senior member occasionally took risk, it was credited as being done in the spirit of good fellow ship and for only small amounts and the house was credited with being wisely and prudently conservative in all it's dealings. So much so was this the case and the firm had done business SO long and apparently safely proftably that it's credit stood high and many prudent men became it's depos- itors. The banking community of New Haven had big surprise when the failure of the house became apparent and as several leading fnaneiers said yes terday the firms credit was considered sound as dollar. The insolvency of the firm has been existing for many months without doubt and this knowledge must have been very heavy burden to carry for men who aimed so earnestly to merit the esteem of the public, which their long continued business career had won for them. But once caught in the Wall street quagmire all efforts to extricate from ruin only served to involve distress and diff culty.
 The crash develops new difficulties, and gloomy. There is no additional cheering ray emitted from any quarter by any of the golden assets which remain out of the general wreck The coveted statement of the bank seems more elusive than a willow O wisp. One day it is nearly ready and then new complications arise and it's an- nouncement is deferred. The reporters flock to the banking house to find that the statement is not yet ready and that it may not be due until Saturday The statement when done will be handed to the firms at torneys, Bristol, Stoddard & Bristol, and will be by them in due time presented to the probate court. But there is no reason to believe that it will reveal anything more encouraging for the depositors than the lump sums reported by the faithful and unwearying cashier, MT. Newton, to the meeting at which the assignments were de- cided upon.
 As the smoke clears away the names of prominent men appear who were carrying stocks on margin and a crop of law suits is impending to further complicate matters and probably to delay the final winding up of the banks affairs. Bun nell & Scranton did most of their Wall street business with Prince & Whiteley That firm holds quite @ large amount of the securities in which some of the late operations at Bunnell & Scran- toms are financially interested there. A sudden marked Change in the stock market either way, bull or bear side, would necessitate the New York firms promptly disposing of the stocks adversely affected. The New York firm can do this if necessity so dictates. There is nothing to prevent. Yet many of Bunnen & Scranton's customers and credi- tors have heavy sums awarded on margins on these very securities. There is no redress for the local operators once these stocks are disposed of by the New York
 
 that such securities do not stand in the name of the holders, but in the firm name of Bunnell & Scranton. Now Prince & Whiteley, Lawson 6 Go. and one other firm with which Bunnell & Scranton did this class of business, know nothing of these marginal buyers or sellers of the stocks in question. They can recognize only Bunnel1 & Scranton in the transac- ton. The operators are not therefore rec ognized in any manner or shape. They would therefore lose every cent they have yet the New York firms have no one to look to but the defunct firm, and are only bound to protect themselves. Va rious New Haven operators thus in tight place have engaged as their lawyers to pre- sent their respective claims to the New York firms, the following well-known at torneys Judge Harrison, Professor s. E. Baldwin, John w. Alling, E. P. Arvine and o. S. White. A delicate and knotty legal problem is involved.
 New light has been shed on the causes of the disaster. It is now stated, with con- siderable defniteness, that few years ago the firm speculated for themselves in New York. They became involved, and hoping to work out only succeeded in getting in deeper and deeper until big deficiency was the result. Efforts were made to work out of this with varying fortune. But the death of MT. Bunnell and the ill ness of MT. Scranton brought things to crisis much sooner than might have hap pened had there been no accidents. But as one of the investors in the firm re- marked when he heard this story it is the accidents that happen.
 A representative of the firm of Jones, Kennett & Hopkins, the biggest grain house in the country and also large dealers in stock was in the city last evening. He came here to look over the ground and see whether he thought it would pay his house to establish a branch here. Those who have saved any money from the present wreck will probably not be long without opportunity to lose the remnant. The fear that Prince & Whitely of New York have sold or will sell the stocks carried by them for Bunnell & Scranton continues to ren- der those who suppose they are owners of the stocks in question uneasy. Often in such cases in New York stocks have been sold and the talk and legal proceed ings have come afterward, when little could be done. Of course Prince & White ley can claim that they know nobody but Bunnell & Scranton in the stock trans actions and that they have right, as they have by Stock exchange rules, to protect 
 If all the legal proceedings talked of materialize the lawyers will be happy, but when the futility of throwing good money after bad is thoroughly realized, many of the proposed suits will not be carried on.A feel ing of nelplessness is growing among the depositors, and most of them will probably soon be willing to take what is given them without spending any more than they can help to get it.
 The creditors are busily discussing the of commissioners. Attorneys Arvine and Hotchkiss are the most prom lnently mentioned. Their integrity and legal knowledge and skill give them pe- culiar fitness for such an office.
 One of the interesting complications is the situation of those who are 'short of stocks," that is, who have sold stocks with out owning them, expecting to buy them cheaper than they sold them. The same margin is required for this operation as for the buying of stocks on a margin. But the short seller is looked upon in the law as even worse than the buyer on a margin. He would have poor show in the courts, but if Prince & Whiteley have covered or do cover the short sales, the short sellers will probably have the satisfaction of par ttieipating in the same dividend which buyers expect. 4 T < No doubt much of the delay in the banks statement arises from complications out of these marginal stock trans- actions. For the last two days no orders to close contracts have been received. Up