New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-05
MAVERICK BANK FAILURE.
RI CAUSES A RUN ON A SAVINGS BANK.
WITHDRAWING DEPOSITS FROM THE FIVE CENT;
INsuTUuoN-coNTRo LACEY
InY rELEGRAPH no ruE TnIBUNR.l

fnY TELEGRAPH THE TRIBUNAL
Rosion Nov 4.-The Maverick Bank failure and tho
.aath az eNcryyn Evsns stu the chief topics OF
interest In Boston. overshadowing the State cleo
lion IN the minds of many. run has been In prog
s for two days on the Five Cents Savings Bank In
schoolst The father of "Nervys Evans is president
~ this bank, and senseless rumor was started on
Monday that II was involved In the failure OF the
Maverick The bank has deposits of about S199ooooo
and has accounts with l25o0o dcposors. IL had less
than $4,000 in the Maverick Bank when IL closed. IL
has net cash surplus OF 81 324ooo, and bonds ana
other securities amounting to 100000 above wiAe
they stand on the books. President h'ans' I" ~
suonss to inquiries, said
g Nc took In YESTERDAY deposits TO the amount OF
s,oooo of course We will not take In as much to-day
NE are giving the amplcst facilities we can iof TIE pay
,o.nt Of those who want TO withdraw. Inc men are
a,,,r ont at five windows, but it Is physical IN
r,hilitv within our space TO accommodate Us mnch
- per cent of the deposits in day because we nave
'.o,, Inn la5, 900 open deposit accounts
ais there any purpose TO avail yourselves VI ue
.,,ty day notice law" was asked
,r,.t e A matter for the trustees to consider
a,,.rs he remarked. Bun at present there Is no
Ihls necessity for it. f we ever were In need OF
~ we mid avail ourselves of largo offers which
49,. .lready been made TO us from various banks.
while he was speaking several bank officials entered
a., ,ou, and aCreed to place AT Mr.. Ivanss disposal
-augng from a quarter W q hi"'~''' -A'N''o
az larger cash deposits received was ore amounting
NV s-oTCo said Mr. Evans AT the run which oc-
- som. wears ago. when Schoolst was thronSed
IN opr depostors. paid out about So,oOo'ooo
rh We avaled ourselves Of the sixty days holicc
ga that STOPPED tho excitement
no voU TANK this will he the result in the present
sssc p was asked ..uuo.s
H. viii not be necessary as Tar as u"
~ mi, are concerned. The question may arse
% -" a 20 The interest of certnln securities FOR
Ho"e we hold large amount Of city bonds. a
i.,,on NJ values might be caused By throwhs
ss-,r,,ies hurrledly on the market"
aThou Won would not raise money oy INC sa'0
Of scuy4ticsi' 49,. ,.v va want by
,.,,r,g from the banks and using these SECURITIES
as collateral !. ,o.ror roo,ev
a., Il lawful for savings bank to borrow money
in this manncs! -. ,o.s,, .ca,n
~ c,se Nc have the authority Of the Savings
p"' con;ssoners that II 10 entirely proper 10 40
'"''> .ect the interests Of deposors in temporary
e4gency.' .,,,,a,.r.rc tneir
- PRESIDENT Evans expressed regret that they
,,d AZ least lose one-QuaTter's interest because
even If they put their money into one oil inc o',er
hank, they would be allowed no interest during "io
first quarter. - NJ,
MaVcrch
Rank Examiner Ewcr, though Mr.. Beal's appointment
a. receiver should soon arrive from Washington
s,ocal Examiner Lunch is assisting Mr. Ever MI
pe.rs salary As receiver WILL il is said, be $5,Ooo
year. and he will give bonds for s2oo,OOo. lhere 10
M charge AGAINST Cashier Work or H. +. WOODS VINO
with the three indicted directors constituted inc
poard 3ir Work had money OF the bank, hao oeeh
It's faithful servant, beginning as omce-DoS TWEEN"
one years ago. and rising to the position oil cashier
lis work is found by the ONaiihs MUS
,ornmittee and the Bank Examiner TO DC
eloor and clean. The tanks accounting
T. a. onc hank president expressed IT, "as straight as
a string The irregularities are wholly, so Tar d
ssceraiued the over loans upon the Endorsements Oh
the three directors and 10 those connected WIFI 'he
in lamentations. These misdemeanors anu hoU
felories under the United states statues ana aie
punishable at most by Imprisonment IN 'he common
iail not exceeding ten years.
The condition OF these loans was not only called 10
tho attention OF Controller Lacey and over again.
but Bank Examiner MagTuder went TO Washington ana
personally emphasized the condition OF the BANK loans
before lie department.. He appears 10 nave been
headed OF each time by Mr.. Pcters influence at wash
ington. Controller Lacey threw the responsibility o.
the philadelphia Irregularities upon the Bank Examiner,
but he will not be able TO place the responsibility OF
.ne Maverick Bank losses upon John Magnder The
banks loans TO directors are generally within The letter
of the law and are in pieces not exceeding $1pooo or
10 per cent OF the banks capital and the notes. though
signed by typewrltcrs clerks and the CUSTOMARY DUN
mics ar, Endorsed by the directors and their trends
not mon the back but by separate Endorsements filed
in another part Of the bank with the cashier. unless
more fsgrant violations CT the letter Of the law are
discovered il may be questioned how far the bank
directors can be pursued for these Overloans to the
selves Director ii. +. Woods owns sixty shares OF
the stock and had a personal deposit the baiahce OF
which did not exceed III 00o He had small l0al'
which viii be provided for In due course. HIS 'otai
loss by the failure will be. his SOCK ana the assess
ment II any IS made on it.
There is nothing in the affairs Of the Maverick Ma
uonal Bank Of which the Clearing House Committee OF
the boston associated banks has not been iaiy al.
ssea Iae eCmmit'ee mas sapeu etSts pSys tdr
welcJEsidered The faets regarding tie loans
Of tae bank have been in possession Of the Cohr9gr
Oi tie Currency since last January, and II Is now ni-
nsted td another Controller Is Likely 10 be appointed
Inc general loan account, outside of the s24ooooo
cJe fVn directors and the Evans losses, Is good
1be dcctOs' loans have still considerable collateral
behind Ihen The bank mad the largest bank collection
business ia the United STATES. speculation Is the one
uns taat explains all speculation In stocks AID gram
VIII tic Maverick Bank DacE1ns the deals me h>'
great speculation Of Tie Maverick Bank was by hessrs
French and Potter in Newlork and New England
n hat success lay concealed the ultimate ruin Of
TIE bank. In the New York and New England
my teTy" deal, the banks funds were used 10
Startling degree, but success covers a multitude o.
Sins which adversely reveals, and the system OF
the bank and all It's directors. Although the Maverick
has been known speculative bank no one outs de
OF Air Evans and the bank directors could have I'M
sgied the extent Of the specuatiOns. IL 5 now not
70 be wondered at that wnen the death Of Irving A.
Evans Was announced President Potter, In tic
directors room, should have ply sioally collapsed; bat
wonder, In the light OF present revelations, that
ne should ior 50 maay days have patched up affairs
aud stenmcd the current.
The ultimate effect Of the experiences OF the last few
weeks viii be salutary viii lead 20 more conservative
hhes ana VIII influence higher appreciation u CON
,sgNsuVe methods. The Boston banks brought ove'
AohGay nlglt many millions of thdr reserve held in
Se", FORK and in stronger financial position than
laa DeeL the case for long time. Money Will rule
Easy Oh approved cOlate AL and there should be no
u@user O any embarrassment TO the man who Is sol
Ncls The situation, broad view, still makes for
confidence and values and profits. The large earnings
tne railroads reflect the great cereal and trade move
lei and II IS this, rather than results OF unSound
.ahng and speculative plunging that viii govern the
,,eeliee and confidence OF investors and merchants
throughout the country
Earnest efforts have been made to 70: pGb-