The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-11-03
THE BOSTON BANK FAILURE.
NOTHING LEFT or THE CAPITAL AND
SURPLUS OF THE MAvERTCN.

SURPLUS OF THE MAVERICK
President Potter. Gel jonas n. Preach.
Irving A. Evans's Estate. ana Thomas
Dana Its Heaviest Dsbtors-Ths Assoc
c,nted Bs.ks Co.s TO the Ala OF the De.
positors-Fresiaeut Potter Makes . state.
nent Reviewing the Causes or the Faiiure
and HIS Connection with Irving A. Evans
Another and Startling Side OF the Story
by the Boston News Burcau-conptroiier
Lacey Appoints q Receiver-The Scene on
tho Boston stock Exehaaxe.
BOSTON. Nov. 2--As was widely announced
throughout the country this morning. the Ma
verick National Bank did not open It's doors to-
day TO any one except tho Bank Examiner and
the clerks who are to assist him in straighten-
ing out the tnngle in which It's Affairs have be-
come involved. There were no scenes OF OK
citcmcnt about the bank. although Thousands
stopped and stared Mt the big doors. which were
covered with cards announcing the suspension
and specifying where different checks ana
notes would DO handled.
The general condition OF the bank may DO
cpitomizcd as follows: Four hundred thousand
dollars capital stock. $St0.O00 surplus. $780,.
900 undivided proflts--nll gone no one Is will
ing to toll whore. but as completely wiped out
MS though Il had never existed. II Is estimated
that the losses will exceed S2.OOO.OOO. which
will vine out the reported surplus and undi.
vidcd profits OF 81 COZ. 600. the capital OF $780,
900. md nll the PER cent. assessment which
tho shareholders may DO called upon to pay.
10 meet these losses the hank has for debt
ors Asa Potter. who owcs 1t Sl.2OO.OOO or
moro: Col. JOINS II. French. who owes 1t moro
than 100000: an unraid lonn to Irving Evans
of 100000, and Thomas Dana owes 1t $780,
COO InGulyen. creditors and accommodating
United States bank officials gave tho bank
two weeks in which to sn'inre these accounts.
and there was n feeling that Mr. Potter. who
wns known to have carried II through SO many
tight pncss. would be equal to the occasion.
Ills tremendous resources were proved by his
paying through the Clearing House within u
week TIC great sum OF $3.500.00O. but at that
poin. lo stopped short. and the officials at
Washington saw that 1t was OF no uCe to ex-
tend tho time further. and 30 they took pos
session.
An investigation discloses tho fact that Mr..
b Tottcr's property at Colasset stands in bis
own name. and is free from eEcumbrance. 1t
is estimated that tho property has cost him
S15oOOO. hut it is not likely that at a forced
sale 4 would realize more than n third OF that
sum. Tho purchasers nrc relatively few who
would care to buy so extensive q place. The
Commonwealth nvcnu" property stands In the
name Of Mira. Potter. The property Ia very de-
stable aud valuable. but. OF course. the
creditors have no claim upon It. Mr.. Potter
Inns n heavy life insurance. tho aggregate
amount OF which is said to be
in tho neighhcrIiooh VI S5OO.OOO. This
also is beyond the rench Of the
creditors. so that whatever misfortune befa!ls
Mr.. Potter personally his family will be well
provided for. Outside OF his Cohasset prop
erty. his horses and his pictures. it is not
known that he has any property In addition to
his investments in speculative securities What
his equity in these will realize 1t is too early
TO predict: in fact no information has yet been
disclosed to indicate what the volume. charac-
tor. and probable value Of these securities
will be. Opinions worry somewhat as to the
amount which depositors will receive. but the
hest authorities place 1t ut about rs cents on
the dollar. The assets Of the bank are said
to be Of such nature that the receiver only
will be able to tell what they Will yield.
It is seid that irregularities in the manage
ment OF the bank have been extending back
for period Of two years- Mr.. Billings. who
was Bank Examiner ten years ago. reports
that tho bank was sound at that time. but
there was n tendency to Overcoming and to
doing too great business for tho capital
Cashier Evans quietly resigned several years
ago. According to the law. there should
be eleven directors to bank. and
when there is IN institution with only nine
directors the Comptroller is to notify it to I'LL
the vacancies. Notwithstanding this law the
Maverick National Bunk las never filled its
vacancies, and has maintained its existence
with these five directors: Asa r. Potter. Joseph
W.Work. Henry +. Woods. Jonas H. Trench. and
Thomas Dana. The bank las been "one-
man" bank for years. In this time it has been
sipgunrly free from losses. as Mr. Potter Is
one OF the best judges, Of business paper in
Boston.
For almost three weeks Asa T. Potter has
been the most maligned man in Boston. In
gratitude. treachcry, and unscruLulous trick
cry are some Of the offences with which he has
been freely and openly charged Moral guilt
and even the crime OF murder has been laid 1T
his door. Through all the storm Of oppro-
brium he has kept persstently silent. His
first aim has been to save the institution OF
which he has been the head. In his efforts to
do this he has unhcsitatingly sacrificed his
own reputation. Even now he would
still keep silent, IL not almost forced
into giving his version Of recent events by
tho opportunities OF his friends. The state
ment which follows is made public not for his
own sake. but because his duty to othors
makes Il wise that the other side Of the story
he told. 1t is not his purpose evon now to 60
iuto tho full history OF his personal and pri-
vate relations with the late Dir. Evans because
therc was nothing In their relations which had
q direct bcarin: unun the present situation.
Taking up the II, tier AS Ii stood month ago,
or o fow dGys before III. Evans took his own
liio. Mr. Potter says:
PRESIDENT noTTEH's STATEMENT.
"A weel; or more before Mr. Evans's deathh
owed the Maverick National Bank large sum
OF money. Changes in the market made 1t
necessary. In tho interest ~ the institution Of
which wns the President and responsible
hpnl. finn mt least II norton OF his liability
should DO take up. talked the matter oYe:
with him. and he agreed to pay u certain sur
the next dRy. That afternoon ] went ont Of
town and aid not return Tor two days. When
looked over tho mail ON my ,lesp. j found there
q noto from the cashier. suyns that Mr.. Evans
lad failed 70 Keep his UIn.iiist. was reading
that note when !Ir. Evans came into my, pri-
vato. Office. turned t. him and said. without
any heat or passion. Ncwy, this won't do. d!
am persongliy disappointed. ! LY!icyed that
you would keep yOur prOMise.' l turned