Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1891-11-05
THE LAWS GRIP.
1t Is Placed Upon Officials Of the
Maverick Bank.
President Potter and Two Directors
Arrested for Embezzlement and
Misrepresentation of Funds.
STARTLING DISCLOSURES.


to the very center. Happily, the
results do not now threaten to be so
sweeping and disastrous as might
have been the result had the crash
come suddenly or had the conditions
| been other than they are. Late
Monday afternoon the examiner sent a
message to Comptroller Lacey inform
! ing him that the liabilities of the bank
are IS, 600. 600; cash on hand, 81, 400. 600.
The indie btedness of Asa z. Potter to
the bank is placed at 81, 100000. He
has made an assignment. L. p. Beal,
! president of the Second national bank,
has been selected as receiver.
! Asa z. Potter, president, Col Jonas
II. French and Thomas Dana, directors
of the Maverick national bank, were
arrested by United States marshals
Monday, the former at his summer
residence in Cohassett and the two lat
ter at their residences in this city.
| The warrants, it is understood, charge
embezzlement and violation of the
United States banking laws, which for
bid loans by a national bank to any
single individual amounting to more
Mr. Potter was allowed to spend the
| night at his home in company with a
United States deputy marshal Col Jonas
| French and Thomas T. Dana the two
directors who with Mr.. Potter actually
managed the bank, were arraigned
under the same charge as is brought
| against Mr.. Potter and were released
| on giving bail for 500, 600 and SIS, 900
respectively
BY law the proprietors of a national
| bank are allowed to borrow only 10
per cent of the capital stock of the
| institution on the same collateral. In
| this case it is SAID Asa p. Potter owes
| 81, 800, 600, Jonas H. French $500, 900 and
Thomas Dana $500, 000, or total of
81. 500, 900, although under the law only
| $40, 900 could be properly loaned to any
| one person.
1t was reported that the Boston s.
| Maine railroad had 500, 600 on deposit
| at the Maverick bank to cover their
| November dividend General Manager
! Huber denied that the amount would
reach this figure. but said that the rood
had $500, 900 in the bank at the time of
| its suspension.
About 5000 of the firemens relief
fund was placed in the Maverick bank,
| but the bulk of the fund is locked up
in the city treasurer's safety vaults
In the Maverick was also the John
| Boyd O'Reilly fund, amounting to some
SIT, 1000.
Dispatches from various points
| throughout the state tend to show that
the loss by the Maverick bank failure
will not seriously affect local banking
houses
The friends of Irving A. Evans de-
clare that he offered up his life as a
tribute to friendship; that he was
worth $500, 600 one year ago and gave
all that and more to save his friends;
that he Sited checks between
New York and Boston; had enormous
arbitrage transactions in both ex-
changes to make clearings between the
| two cities and assist the Maverick ma
tional bank to meet one draft with an
| other; that when this strain could
no longer be borne he overdrew his
account at the bank to make his own
drafts individually square, destroyed
all evidence duplicating any other par
ties, and declining to return to the city
to effect settlement upon his own &C
count at the bank, put himself out of
this world to save Mr. Potter and the
bank.
Col. Albert A. Pope said last week
that he had no evidence that Mr. Potter
was responsible for Mr.. Evans suicide,
but he believed it, and if the evidence
was good the joint account would be
collected if it took the roof off some in
| stitution. Mr.. Asa p. Potter was worth
| $3.50, 600 clear few years ago
Mr.. Potter gave a long account of
| his dealings with Evans, in which he
places all the blame on the latter's
shoulders. He says: 1.-THE loss of the
Maverick national bank on account of
its dealings with Mr.. Evans would be
about 5000, 900 if the collateral could be
| judiciously disposed of. That loss had
been figured out and charged
before the crisis of last week arose
| We settled it in this way: The
bank took the collateral and turned
| over the notes to the firm. The diff
ference in value on the face of the claim
and the then market value of the
collateral proved to be, as | said, about
| $500, 600. Let me say that if | was al
lowed to wind up the affairs of the
Maverick national bank, no depositor
and no stakeholder would lose one
dollar that he has deposited or invest
ed All the facts about the banks con
dition and about its management will
officially be made known in the course
of tin E. Pending that, l am content
TO await the outcome of events"
A member of the committee of asso-
ciated banks expresses the opinion
that the depositors of the Maverick ma
tional bank will ultimately receive a
dividend amounting to about seventy
cents on dollar. The possible insolv-
ency Of Messrs. Potter and French