The morning news., 1891-11-03
RosroN,s BROKEN BANK.
The Other Banks Vote to help Out
the Dspositors-

Ros.op national banks at the clearing house
this morning the following resolutions were
unaninously adopted:
Voted that It Is the judgment Of the clearing
( house that all the banks constituting Jae asso-
/ ciafio- srauid al once combine 10 reilsVe tne
-. i-s,'as ~ he deDoSits OF the Maverick
| National Bank by making written asFeein snt
i among themselves to advance money 70 such
| sftors n on security OF as sninent OF thelr
| claims against said Mavericl NatiJnal banA-
1 Voted that 8 committee Of ten. repfes esehta-
| tfv,.s of the banks be appointed py Ine cualr,
/ who saal have full power o execute the tofe-
/ e,oi,,r vofe to arrange on behalf Of the assOcia-
| ZION All the terms and details OF the premises
and to call upon the banks ot the assoc ation
for such sums OF uoaey as MAJ t ,Ni, 2,
| provided that the banks snail contrionte ia
! proportion Of their average loans as reported
| 70 tne cear!ng house Tor tie month OF April,
| 1891.
| EVERY BANK REPRESENTED.
| Every hank was represented at the clear
ing house meeting when the resolutions con-
cerning the Maverick bank were voted.
| Thomas F. Beal, Franklin Hahn, Jr., A I.
Newman, Phineas Pearce and Moses VIII
Jams and the following named: y. Aldrich,
!. T. Burr, Joseph Carr, j. 3. Chase, ID.
Calyialle and George Rapley were appointed
committee to carry the resolutions into
effect Ii Has voted that the Maverick Ma
tional Bank be expelled from the RSsocia-
tion. formal papers TO be drafted aDd sent
out for the bank signatures Immediately.
Col. John B. French said this morning
that he had not made an assignment. be
further stated that he fully believed that If
the affairs of the Maverick National Bank
are managed with wisdom and prudence by
| the receiver, the stockholders and deposit
tors will get back the money they have in
trusted 10 the bank.
THE LOSSES $4,000, 900.
The losses Of the bank are estimated at
| upward of 81, ,0O0, 900, when wipes out the
| reported surplus aud undivided profits OF
$1,000, 900, the capital of S40l, 600 and all OF
| the 100 per cent. assessment That the share
holders may be called upon to contribute.
But as nearly a majority OF the banks
shares are owned by President Pot
ter. some of which ne had pledged with
a savings baAk, etc, it IS doubtful
il the full assessment can be collected. De-
positors. however, should lose only frac-
tion OF their deposits The irregularities OF
| the bank extend back over period OF more
than two years. President Ballings says
that when be was bank examiner ten years
| ago, the bank was sound except for the
fault of overloaning or doing too much
business upon its capital. Cashier Eddy
quietly resigned from the bank several
years ago.
| 4 ONE-AAE BANK.
While the law requires eleven directors
for the bank, d the controller of the cur
rency notifies banks with nine directors
to fill their vacancies, the Nav
erick bank has never filled its
| board vacancies, except to maintain
the existence of the bank by having five
directors; but all save one or two of the five
were practically dummies. 1t has been for
! many years one-man bank. 1t has been
singularly free from known losses, and
| President Potter has been accounted the
! best judge Of business paper in Boston.
A.. Is
| the associated banks in relieving depositors
by advancing on their claims will avert any
disastrous effects.
PRESIDENT PoTTER's WEALTH.
President Potter has made an assignment
Of his individual estate to Postmaster
Thomas n Hart and Henry d. Hyde
President Potter's propsrty at Cohasset
stands in his owa name aud is free from all
iucumbranceS- 1t is estimated that the
propelt ty cost him s15U, 900. The Common
wealth avenue property stands in the
name Of Mrs. Potter. The property is val
liable. President Potter mas very heavy
life insurance, tho aggregate amount Of
which is said to be in the neighborhood of
$500, COO Outside of his Cohassst property,
lis bonds and his pictures, it is not known
that he has any property in addition to his
investments in speculative eecuritiea
OTHER BANKS TO ADVANCE S4,0O0.000
The Boston banks have voted to assess
themselves 3 per cent. Of the amount of
their loans. This will raise about "a, 900, :
| 600 to loan to the Maverick bank de-
| posirors.
Dispatches from various points through
out the state tend to show chat the loss by
the bank difficulties did not seriously
affect local banking houses The vice
president of the Lombard Investment Com
| pany said that the company would not be
| affected TO any extent.
r. p. BEAL APPOINTED RECEIVER
WASHINGTON, Nov. 2.-The controller Of
the currency this afternoon appointed
| ThOmas B. Beal receiver Of the Maverick
| National Bank of Boston. Mr.. Beal is
president of the Second National Bank OF
Boston, and chairman of the clearing
house committee.
ARRESTS MADE.
President Potter and Col. Jonas H. French
and Thomas Dana, directors of the bank
were arrested by a United States marsha
tonight The warrants, 10 is understood
charge them with embezzlement anc
violation of the United States banking
laws, which forbids loans by nations
bank to any single individual amounting t,
more than 10 per cent. of its capital stock
1t is said that President Potter owes tn
bank 81, SOC, 900, French $500, 900 and Dams
, $400. 900. The Boston and Maine RAILROAD
had 100000 on deposit at the time of tn
| failure.
MACON LIT BY FIRE