Morning journal and courier., 1891-05-21
THE BANK FAILURE.

THE BANK FAILURE. The Assignment Made Yesterday-
 The Deficit a Large One-About
 $125.OOO-Liabilfties of Quarter oI
 a Million-Talk About ToWn-One
 of the Most Serious Failures m
 Years-Promfnent Features Of the Case.
 The firm of Bunnel & Scranton has gone under, as indicated yesterday would be the case; and assignments were made yesterday, one by the firm and the other by MT. Scranton personally. The failure is bad one and fifty cents on dollar is the maximum amount which it is now be- Ieved, on good grounds, that the wreck will pay it's creditors. The failure is sad one, accompanied as it has been with such mournful attending circumstances and is deeply regretted in our community and was surprise to all our leading banking men, all of whom expressed confidence in the house when it first closed it's doors. The continued suspension of business, however, excited alarm and suspicion that all was not right, and the outcome shows that, deplorable state of affairs has been existing at the institution for some months, mistrusted by hardly anybody, though among class of the most careful investors, who are also monied men, doubts were from time to time expressed that firm could go on paying per cent. on monthly balances and on deposits without taking undue risks and uncertain chances, and by such criterion the firms ultimate stability was questioned.
 It appears now that the firm has for months been in tight place and dire fnan- cial straits, either owing to private specu- lations in Wall street stocks or carrying stocks for others in losing ventures. All uncertainty as to the firms affairs was .dispelled yesterday morning by the news of the filing of the assignments. The necessary legal papers were brought into court by John w. Bristol, of the law firm of Bristol, Stoddard & Bristol. E. G. Stoddard was named as trustee, and Judge Robertson fixed Wednesday, May 27, at 10 a. m. as the time for the hearing. No schedule of the assets and liabilities of the firm was filed.
 The making of an assignment of insol- vency was decided upon by MT. Scranton as the result of consultation he had with Lieutenant Governor Merwin, president of the Yale bank, President Leete of the Mechanics bank, James D. Dewell of J. D. Dewell & Co.,, President Stoddard of the County bank, Attorney Louis RI. Bristol of the law firm of Bristol, Stoddard & Bristol, counsel for the firm; A. M. Futile of Naugatuck, and MT. Smith of New York, father of Mrs. Bunnell, formerly bank president in New York.
 Cashier Newton had, at the request of MT. Scranton, prepared statement of the | assets and liabilities and submitted it to him. It was not complete, but it left nc doubt of the firms insolvency. It repre- | sented the liabilities in round numbers o1 l S250, ,OO0 and assets of about $125, ,O00 Mir. Scranton's conferees immediately ad vised the making of an assignment, and
 Mr. Scranton decided to act upon their ad | vice.
 The assignment in each case was made to President Stoddard of the County bank
 the one assigning all of the property of C. ] w. Scranton, both of his interest as sur
 viving partner of the firm of Bunnen 6
 Scranton and of his own realty and per
 sonal property; the other assigning all the
 firms property.
 Judge Robertson fixed upon Wednesday
 May 27, at 10 a.m., as the date of the hear
 ing on the appointment of trustee. Hon
 E. G. Stoddard has been named for tho
 office and he will undoubtedly be appoint l ed, and from conversation had with MT Stoddard yesterday afternoon it is believed that he will accept the duties of the posi- | ton.
 In an interview with MT. Scranton ht said:
 "All care to say is that there has beer
 an unfortunate concurrence of accidents
 It all came in a heap. I have been sick with inflammation of the bowels, and l really ought not to be sitting up to-day I don't care to say anything. MT. Bristol | will speak for me-"
 "We don't know accurately as yet, said | MT. Bristol, "just how matters stand. l have heard it said that there are unsecured ! liabilities to the amount of $250, 900. That may be nearly correct or it may not. We can't say yet"
 The estimated assets of the firm, $125, 900, are considered by many of the credi- tors as large, and they are prepared to l believe that when the statement is made ! they will be less than $100,000. One ! creditor said yesterday morning the best | assets the firm had was MT. Bunnell's $10,000 life insurance. It was generally l supposed that all of this was made paya- ! ble to Mrs. Bunnell, but it seems that such is not the fact. This $10,000 is repre- sented by four or five different insurance
 
 l MT. Bunnell many years ago. One has run twenty-five or thirty years. About | $5, ,000 of the money is made payable tc ! the widow. The rest goes into the gen. eral assets for the creditors. These poll. cies are in the Mutual Life Insurance com parry of New York represented by John w. Nichols.
 | Both MT. Bunnel and Mir. Scranton had their lives insured in the New York Life Insurance company, whose office is in the Lyon building, Chapel street, few years ago. The policies were made payable tc the survivor of either. If MT. Scranton died first, the policy was to go to MT. Bun.
 nell, and if MT. Scranton survived Mr.
 Bunnell, it was to go to MT. Scranton The $10,000 on that policy will now be
 scheduled as an asset of the firm. l Another asset will be MT. Bunnells seat
 in the New York Stock exchange Mir.
 Bunnell is said to have epurchased it in 188S for $32, 900. Its market value today is
 placed at 1000. But report says that il
 is mortgaged. The New York Stock ex
 change has gratuity fund of SIC, ,OOC
 which is payable to the widow or heirs oi a deceased member. The $10,O0O will be | paid to Mrs. Bunnell Regarding the | mortgaging of the seat in the Stock Ex: change MT. Scranton says he has not heard. 1uo lAlluTe ol Duuuell O OcTduGOu VIII | have but little effect upon the banks in | the city. Inquiry at all the banks yester- day revealed but two which were carrying | any of the paper of the defunct firm. l These two are the County and Mechanics banks, but what they have is amply and | fully secured.
 The opinion prevails among those as we'll posted as any outsiders in the affairs and business of the late firm and in the | light of the developments that net divi- dend of 25 to 30 per cent. will be all that the assets of the bank will eventually yield l when all expenses are paid. On the other hand gentlemen supposed to have a good knowledge now of the banks situation, think 45 or 50 per cent. will be realized. The official statement of the banks con- dition will not, it is thought, be ready un- til tomorrow, so much and so complicated are the many of the transactions on the books. The force of employees at the bank is very busy preparing the much looked | for statement. But that it will afford