New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-08
THE BOSTON BANK TROUBLES
ooNrnorIER LACEY DEFENDS HIS COURSE.

LACEY DEFENDS HIS COURSE.
,rpr.yyNc TO WHAT HE THINKS ARE UNJUST
cMUCrsNs-MH. pANA's BAIL REDUCED.
tpr TELEGRAPH TO THE TRIDUSEI
uoston Nov 7-Contzollcr Lacey. IN talk about
N. Maverick Bank. said "you understand that
..nnot CLOSE a bank simply because IL has met with
s.es II these losses be large enough to absorb its
rnlus and impair its capital, can order an assess
mt On the stockholders to make the capital good but
can't close It. That step can only be taken when
as capital is all lost and the bank is unable to pay
a. debts Then it becomes insolvcnt. As to the
MAVERICK never was Informed BY any examiner. com
ttse or person. othciay otherwise. that the bank
-. ,nsolvent until last Sunday When the repre-
~c,aHve Of the Clearing House Committee called on
- washington. On Friday last. informed him that
- .pp as II Was their opinion that the bank was
.s~,nt would order II closed. and his answer was
-, they were not yet ready to express that opinion
.,.o ordered Mr. Ever to close 1t whenever he was
a.. same opinion. and that conclusion not
oebed until Sunday; then the bank was closed within
an hcur.
49,. &c simply a question Of good banking.
:. ., q fact that some Of these loans exceeded the
20 var cent clause but that IS done in many banks and
=. M, sufhcient cause for closing bank In these
N. loans were covered by coaterals, which ap
r..rd shrank IN value. II Is not criminal offence
NV dut,es. expect, win keep me here until Mon
A.. ana 7 expect TO reach my desk at Washington on
~.1.x The first business will be to regulate the
after Of the remitta1ccs to the bank which
- hem received since Sunday. THESE
-. he returned to the senders at random. II
60. er~. he asccrtained II the sender was indebted
- -. hank and if such be the case, the remittance
$50. .o the assets OF the bank: otherwise II VIII be
1900 uromptly and 1t viii require some time to
ss,n,ns this matter. There has been complaint OF
s.r q, This respect and also In regard TO the assump
49,. NJ control by the receiver. / never knew o.
...s where q receiver was appointed so quickly ana
~ selav since has been at Mr.. Beal's own re-
-. IN order that he might satisfy himself as
=. o.tain matters. Since his appointment. ana only
80 hay. received few letters OF Opposiuon' but
% r,ooenas did not suggest any other name'
NJ Lacey read the dispatch from Washington, In
,s.h Secretary Foster quoted rs statlng tha'
.,,t three or four months ago he had heard rVuors
.,nsrrinr the condition of the Maverick h'lA' a'
.,,h tina the Controller brought him recent repor.
:. examiner Magruder, which revealed DAD STATE VI
tbnrs and as saying All have 10 say 10 you 'n"'
,h hank or any other is violating the law or dong
'- hich IL ought not TO do close it up at once
49,. ~. tuu authority to act and must assume the
responsibility =, 1o.or
az Al not care to discuss that" said Mr. Lacey
at, would be indicate in Inc TO do So Inc Maveiioh
examined in regular course last January ana yo"
.nov that If bank is examined again out VI us VIZ
a s ant to excite suspicion and perhaps 90 IL an M
srv Mr. Magr7lder fhesitated when oruereu "
rats the secon1 examination. and wrote ID"
that it seemed unnecessary and ml"ise' no u'u
-, ennrehend any danger The conoluoh "
the hank had improved, and an examination ou' "
order would perhaps start rumors ana aiec' ns 'o"
ton. I persisted in the order. and he MAUI ''e 20
animation which took a month. After the 'aiu"i'
examination ordered thai all the paper whcn uiu no'
seem good should be at secured, ana te recouS
show that il was so secured. Every donar VI |ASa
potter,s Endorsements not known to be geoo was
covered by collateral Thomas Dana gave moFtsaeo
Oh his property here in Boston, which compie'ed HIS
Iea but there small balance OF Mr. flcu'A
not covered by collateral And there was no evidence
to me that these notes were really loans 10 the
directors and not genuine loans to the makers VIII
directors Inducements did not know the men per
sonally. Mr.. Magruder came TO see me IN Washing
Of It's Insolvency. He has relatives in Washington
whom he visited once or twice year. SO that 90 n9t
know Whether a ne s sns hs
N administrative ofcer TO carry out certain pewe1Ts
seSsr held public Office 50 you DO not know what It
TO be target for every one to shoot at. But you
%T .hOulSef ali the result Of the dnancis srHsency
Of year ago All the disasters and corruption of a
fsIen on INV desk, ana hsvc had 70 appoint twice as
many receivers Is any other Controller but my prede
ceSSOrs ndd I'd pchT, 1ilu suppose
The Italian bank in North St, the Banca Centrale
he week, but to-day its fears sackened The Central
italian Is not great institution, but Ii Is power in
the italian suss aOa tine oS qTs w 81 ss aes @
Monday evening until last evening. The banker IL
Ferdinand DE filippo His institution comprises
ss.6ss sse He aid ali his large draft p business
through the Maverick Bank. and had large deposit
there. De Filppo paid out over 100000 before Inc
reaction came last night
General Manager Furber, OF the Boston and Maine
Railroad Company, says that the company has about
100000 in the Maverick Bank, and is probably The
largest creditor Of the institution. Whatever the
sk @ ' ose if but Is @ able to
It. The company would have used this money to pay
get their 10 per cent that day, as usual. The
Boston and Maine earns 81 10000 a month and can
Thomss Dana's bali has been reduced to $4,000
nom $4,000 Charles A. Browning of Boston, has
One OF the most interesting questions recently
raised in ocnnec.On with the Maverick Bank ta ,Ss
used fctitious names on notes without the meaning
On The faceis District Attorney Allen al the hearing
Seor. Judge Nelson yesesy ana In r epn 70 que
stated that Dames on notes issued by the bank az
collateral securities were woIs sqnstaes were
TO tho notes could not be found: Whatever may ot
the decision Of the court relative to the point alsea'
all intents and purposes, the signatures are orgeres
An official views the matter in this manner H. iol
Of note and thus secured loan, and you should
pronounce the signature not genuine, would be gu1itJ
Of forgery. The of the Maverick Bank directors
while similar is technically different 1t is alleged
that these officials Endorsed notes bearing the names
Of persons who do not exist. The question Is, there
fore was forgery committed contend that II was
II the court takes this view of the case, then the
charge against the directors will be more than J.,
misdemeanor. il will be felony, and punishable by
Imprisonment In the state Prison.
Another serious charge is made against the director
That msy or may not be criminal. That Is question
that will be determined at the trial of the Officials
before He December term Of the United States Dstric
Court 1t is alleged that the Government is In pos
session Of evidence which proves that the directors O
the bank knew of the unsound condition Of the instit1
ton and vet received up to the very day OF the crasf
deposits from cities from trustees Of private funds and
q Charitable institutions. 1t be assumed La Tx
collapse Of the bank one Of it, directors sought 3
PERSONAL friend ard urged him 10 withdraw deposit
$4,000 from the Institution. The depositors curl
osty was aroused and he asked the director th'
reason Of this advice. The reply Is alleged TO have
sn this: "1he Maverick is on TIE verge q disaster