Los Angeles herald., 1891-11-03
Doors of the Embarrassed In
stitution Closed.
The Clearing House Association
to the Rescue.
Disaster Averted by Other Banks
Prompt Action.
Matters Fixed Up So That Depositors
win Get Back Nearly, II Not All.
Their Money-President Pot
ter Sick at Home.
Associated Press Dispatches.

this morning, resolutions were unani-
mously adopted that all banks in the
association should at once combine to
relieve the necessities of the depositors
in the Maverick National bank, by max
ing an advance to such depositors upon
the security of the assignment of their
claims against the Maverick bank. A
committee was then appointed to carry
the resolution into effect. 1t was voted
that the Maverick bank be expelled from
the association.
Colonel French said this morning he
had made no assignment. He stated
that he fully believed that if the affairs
of the Maverick national bank were
managed with wisdom and prudence by
the receiver. the stockholders and depos-
itors would get back all the money they
intrusted to the banks care.
THE BANKS DOORS CLOSED.
The doors of the Maverick bank bore
notices this morning. One read: "Closed
by order OF National Bank Examiner
Ever" Immediately beneath was the
following: "Notes due at this bank to-
day will be found at the Second national
bank" Two policemen who stood at
the entrance had little to do, as there
was no excitement, and but few people
were seeking entrance to the banking
rooms. Lewis Lombard, second vice.
president and eastern man ager of the
Lombard Investment company, said the
deposits of his company in the Maver-
ick bank were immaterial, and that the
concern would not be affected by the
failing of the bank, except temporary
inconvenience in the matter OF keeping
accounts. All customers who hold checks
on the Maverick bank. on return OF
same, will be given checks on other
banks, in which the Lombard company
has deposits. Several such checks were
presented this morning and redeemed.
The different national banks will i'm
mediately call meeting of directors to
ratify the vote of the clearing house as
sociation. Arrangements will soon be
made that checks against depositors in
the Maverick national bank shall still
where the committee will make its head
quarters.
THE BANKS LOSSES.
The losses of the Maverick national
bank are estimated at upwards of $2,-
100000, which wipes out its reported
surplus and undivided profits of 81 ,OOO,-
600, it's capital of $400, 900 and all of the
100 per cent. assessment that the share
holders may be called upon to con-
tribute. But as nearly majority of the
bank shares are owned by President
Potter, it is doubtful if the full assess
ment can be collected. Depositors
should only lose fraction of their de-
posits. The Irregularities in the Maver-
ick bank extend back over a period of
more than two years.
DISASTER AvERTED.
The general opinion is that the action
of the associated banks in relieving the
depositors by advancing on their claims,
will avert any disastrous effects from
the failure. The amount so advanced
may be 80 per cent. or more, of the net
deposit, dependent on the strength of
the borrower. Loans due the bank by
depositors must first be adjusted Presi-
dent Potter has made an assignment of
his individual estate, but it is impossi-
BILE to get detailed statement for some
days, as Potter is sick at home. The
Boston banks voted to assess themselves
3 per cent. of the amount of their loans.
This will raise about 100000 for loan
to the Maverick bank.
PRESIDENT PoTTER's ASSETS.
Dispatches from various points
the state tend to show that
the loss by the Maverick bank difficult
ties will not seriously affect banking
houses. Potter's assignee says at pres
ent he has no idea of the extent of Pot
ter's personal assets and liabilities. Pot
ter's property at Cohassett is estimated
to be worth $150,000. He also has very
heavy life insurance, the aggregate
amount of which is said to be $500, 900.
Outside of this, his bonds and his pic
lures, it is not known that Potter has
any property.
NEW YORK BANKS NOT INVOLVED.
New YORK, Nov. 2.-The suspension
Of the Maverick bank of Boston did not |
cause much surprise among bankers in
his city. 1t had been talked about for
! week as O. coming event, and if any
banks were involved they had chance
20 protect themselves. President Baker
Of the First national bank of this city
from Boston this evening. He |
said the failure would not hurt his
,ank, and that he did not know whether
t would hurt any other bank. He saw
40 reason why it should.
COMPTROLLER LACEY's INFORMATION.
WASHINGTON, Nov. 2.-Lacey, comp
roller of currency, received information
This morning that the Maverick national
bank of Boston had closed its doors.
He said an examiner was in charge of
the bank and that receiver would be
appointed in few days to wind up its
affairs. He said while the exact loss is
not definitely known, it was clear the
bank was insolvent, and that as its
capital surplus and undivided profits
amounted to 100000, it followed that
it's liabilities exceeded that amount. He
added that he did not believe any other
bank was involved in the failure.
Subsequently the comptroller was in
formed of the action of the clearing
house association Tor the relief of the
of the Maverick bank. "The
action OF the clearing house was," he
said, "a very prudent, wise and salutary
1t will undoubtedly tend to
restore confidence and afford relief to
the depositors whose funds are tempo
rarily locked up by the banks failure.
The utmost expedition will be made in
the appointment of a receiver, who will
bQ aalnctad with q y;axu ~ ,ooi:.... A.