The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-11-02

osiohGcst itieuuS tH0 DOstou Hnu iNVW AoiN
business world. and they had promised to give
him generous aid. ..,.
1t was not until late Saturday night that Mr..
Potter realized that the bank must 60 to
the wall. He was then notified By the
members OF the Clearing House Com
mittee that the condition Of the bank
was such. In their opinion. that the ssso-
ciate banks OF Boston would not be justi-
fed In keeping the Institution anoat. In fact.
as one President put II. II It has been
a question Of S1.000.000 or Of &2.00O.000
1t might have been done. but when II was seen
that 1t would take s4.O00.0O0 or s5.0O0.O0o.
and that perhaps that might not do Il. II was
felt that the bank must suspend.
Mr.. Potter was astounded and appalled, By
this decision OF the committee.
Further effort on his part. however.
was useless. because the facts had been
placed before the Comptroller OF the
currency by tho Clearing House Committee.
and he had already ordered the bank examiner
to take charge Of the institution. Death stepped
in and prevented the immediate execution Of
the order Bank Examiner Magruder died this
afternoon. his death being hnstened. II not
caused. by tho anxieties Of tho situation.
Prominent banking mon who ought to know
the facts say that the Maverick Bank has been
insolvent for at least a yeur.
1t is said that the report made By Bank Ex-
aminer Magruder In January last showed that
the bank was hard pressed. At all events. the
Treasury Department hos kept close watch
Of II.
Mr.. Magruder began to make another OK
animation In September. and 1t is said that his
discoveries then so much disturbed
him as to bring on the illness
which terminated In his death. This
afternoon when he learned that the bank had
failed His anxiety In the matter may be un.
derstood In view Of the experience Of the bank
Examined OF Philadelphia In the matter OF the
Keystone National Bank. The capital OF the
Maverick Bank is only 100000.
There is no doubt that the bank has done the
largest business on tho smallest capital OF any
similar institution in the country
A year ago 1t reported surplus Of $500. 900.
That. Of course has now disappeared. The
stock Of the bank is held in q very few hands.
It's President. Mr.. Potter. owns nearly 1.4OO
shares and Col. Jonas H. French holds be-
tween 800 and 900 shares These two mon
have for years held complete control OF the in.
stituton.
There are about 1000 individual depositors.
and In addition about 800 other banks. mostly
county Institutions. keep acoou nts there.
For the last four or five years the deposits
have ranged from SO OOO.0 900 to $13OOOOO
Tho banks having deposits at Marenett in
clude not only great many New England in
situations. but also many other banks in the
West and South.
In fact the Mavericks connections OF this
description probably exceeded in number.
those Of all the other Boston banks combined.
1t may be snid emphatically that no institu-
ton will be crippled or weakened BY the tying
up Of it's deposit on account Of the suspension.
Mr.. Potter had very little to say about the
the failure.
"Yes. it is true that the bank will not
open its doors tomorrow morning." he
said but had no idea that such
would be the case until 1 o'clock
last night. There is nothing to be said now
except that no other institution will be In any
way imperilled by the suspension Of the
Maverick. That know. and you cannot put
1t too strongly"
Mr.. Potter said that he should make per-
sonal assignment He was confident, how
ever. that he WIS perfectly solvent Later in
the day he decided to make Thomas N. Hart
and Henry D. Hyde his assignees
Col Jonas q. French. director. and Mr.
Potter's associate In the management Of
the bank. will also make On assign.
ment today. It is believed also that his
affairs will prove to be sound. His
assignees have not yet been named. Col
French was seen on Sunday morning. but said
he preferred to say nothing.
Are you willing. Colonel to state from ab-
solute knowledge that the Maverick Bank is
solvent"
NO: am not" was the reply. 81 prefer to
say nothing"
In illustration Of the hostile attitude borne
toward Mr.. Potter and the Maverick bank
in certain financial quarters. the following
report OF a talk with one OF Boston's most
prominent fnanciers Is given. The question
was put as to what the man had to say
about the rumors concerning the bank
His answer was to the effect that ever since
Mr.. Evans death knowledge was current In
banking circles that the Maverick was
hard pressed. II am satisfied" he
continued. from what deem the
best authority that last January's examination
bank was insolvent Last September's exam
ination showed oven a worse state OF affairs
than was apparent In January. It was
told to me that Mr.. Masruder. the Bank Ex-
aminer. reported to Mr.. Lacy. Comptroller OF
the Currency. the result Of his work.
and there necessarily dropped the matter.
Why Mr.. Lacy took no action thereon is past
finding out. No. the plan Of tho Maverick M.
tional Bank. OF Asa Potter. Of Col. French is
over. and rightly 30. No custodian or
trustee OF millions Of dollars belonging
to other people ought to enter upon specula-
ton. There are certain fixed and infiexible
laws that guide to business success. and II
these boundaries are passed failure is tho In
evitable result.
COMPTROLLER LACEY DUNE.
m. WA. eo,pe IN Tell The sst.rv NJ tls ssu.