Morning journal and courier., 1891-03-24
NEWS BY 1flEGRAPH. From All Quarters. ANOTHER BANK FAILURE The Washington National at
 New York Closed. MAJOR MkINLEY ON THE TARIFF. Timothy Hea|ey Assaulted
 By a Mob. AN EPIDEMIC OF GRIP IN NEW YORK. Three Men Killed By an
 Explosion.
AN EPIDEMIC OF GRIP IN NEW YORK.
ITS DOORS CLOSED,

Failure of tho Washington National Bank of New YOrk-Its Capital Sert ously Impaired by the Liberalfty of the Banks President.
 NEW YORK; March 25.-The Washington National bank at No. 1 Broadway closed it's doors late this afternoon, owing to @ serious impairment of its capital. The banks resources have been loaned out by the president to two friends or confeder-
 ates and the discovery of it's condition was accidentally made. The bank is not &
 member of the Clearing House associa-
 tion, but clears through the Gallatin na-
 tional bank. Under a new rule of the clearing house which went in to effect Jan uary 1, the banks clearings in this way must submit their accounts to examina- ton by the clearing house. To-day Bank Examiner Hepburn, representing the clear ing house, appeared at the Washington na- tional bank to examine it's affairs. He soon discovered that it's capital was impaired. As soon as this announcement was made President Sherman was pros trated, but recovered sufficiently to inform the directors that he had been too liberal in loaning money to his friends. Two ac- counts have been discovered that foot up S121 ,OOO that are probably total losses. One is for $70, 900, secured by poor and worthless collateral, and the other draft for $50, 900 on John Silva, which had been cashed by the president and "hung on hook" It is said that Mr.Silva had prom ised to make this draft good tomorrow. The bank had a capital of $500, ,000 and de- posits of $500, ,000.
 The president of the Gallatin national bank has given notice that his in- stitution will no longer clear for the Washington bank. Director Tilghman of will not open tomorrow. It will be placed in charge of Bank Examiner Hep burn and most probably wound up. I am positive that depositors will be paid in full" Cashier Granger said that the de- velopments were surprise to both him self and the directors. None of them had any idea that the president was in volved in any irregular transactions and he could say nothing about the details of the methods by which the funds were withdrawn.
 Sidell Tilghman, director of the bank, says: ''The irregularities in the banks af- fairs were discovered about a week ago. After cursory examination Saturday last it was found that the impairment was in the neighborhood of $75,000. This sum was to have been made good by the direc- tors to-day, but this morning President Sherman informed them that the impair ment was larger than had been discovered and would aggregate about $60,000 more than it was thought to be. It was then decided to discontinue business"
 The bank began business last June with paid-up capital of $500 O00. The net de- posits are only about $500, 1000, and Direct or Tilgham declares that the depositors will be paid in full President Sherman had the full confidence of the directors. He has disappeared.
 President Sherman was found at his home this evening. He said the first loan he made on poor collateral was to man who had overdrawn his account. His ob ject was to save the bank from loss and the man from failure. He is of opin- ion that this nancy will be paid. This overdraft was for between $73, ,000 and $75,O00. The second loan was made under almost the same conditions, and he believed this would also be made good. The sum involved was about $60,- 900 and the man who received it was Bridgeport, Conn.,, gentleman, who repre- sents brass firm of that city here. MT. Sherman refused to give his name. He said the directors were nasty in closing up the bank and that the depositors would be paid in full.