New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-18
MAVERICK BANR METHODS.
FACTS BROUGHT OUT IN BOSTON By Thh
SENATE COMMITTEE


Boston. Aug l7.-At to-day's session OF the oni.eo
states Senate Committee investigate the failure VI
Maverick National Banl. Asa p Potter was 'he n'S'
witness. Mr.. Chandler asked him 81 he hao maui a
certain settlement with Irving A. Evans, IN o''o'o.'
1891. Mr. Potter declined, by advice oil his cou''O''
to stating that his management on the Jam
under indictment BY the District Attorney INV
his might crlminnte him. The witness '. ~
recollection az the loans to the late Bank E. EA'I'"e
Mngrrder. n lie could not account for the pay - "
those loans at the date mentioned In the ucS''a
yesterday, when Mr.. Msgruder was appointed oann
examiner. When asked 10 give the commi''oo ,''.
Of notes signed by Mr.. Kellogg. who was ea'"'iou
clerk In tho bank, Mr. Potter SAID nc couu nv
becousc ne lad no access to his books. and pesides
no did not think there were any books when sho"eu
tbem These notes. he said, were discounted without
referenoe to the maker, as there was coliaerai '~
thom and tho witness indosed them. INC VIM,
said tlis was the practice not only In Boston panS
but in banks all over tho country as wen' t'e ni"
reouire, three names; good name Is eot ana 'ns
other two do not count. a.
Regarding a note for $4,000 Of one Curtis, Mr.
Potter said he did not know the man, although ne nao
ssen him. This was the the other note ois
counted without regard to the responsibility OF ths
sgper since there was collateral with It to cover IL
Mr Potter here said that all these notes had peen
paid and he did not want II TO go out that ''o '"~
made notes Of straw without collateral
The note Of Joseph Warren for S4oaooo ~ae n."'
As matter Of bookkeeping. to cover lot OF secuii''
which came In ten days before the bank baicd anu
too late I'm tile day 10 be distributed In dctal on ,no
hooks Mr. Potter admitted that be loancd He
money whereby Mr.. Magruder made s3oVoo ~
sucar deal. Witness said that he ADVANCED INC
money on a note signed by friend OF his, ana 'o
bought 900 shares of sugar Trust for Mr.. Masruucr
without the knowledge OF the latter. The loan was
s6j OOO The sugar Trust was bought at 90 ana soh
ot o. Then the signer OF the note ordered enough OK
the certificates sold 10 cancel the Joan. lie dcvcrcd
che rest OF the sugar Trust certificates, when nc pao
sold enough 10 cancel the loan, TO Mr.. Magrndcr
william Ladd Dodge testified that he was gate
,ender and had signed a note for $4,000, which whs
shown him. he did not care TO sny what MS saiAy
uos then. nor since. lie hnd received ns much as
81 600 in A year. II Mr.. Potter asked him 10 s'sn
another note he would do so tomorrow. ". H.
Iovou testified that he had signed note ior eaoV"o
dated In Isof IL stated that +. NJ RawSon' 'he
ioritor of the Maverick Bank building, asked MN
,o slc, II for Jonas French. lie was the ceVator
conductor Of the building. temporarily, whhe ue
other nan was on his vacation he was se'uhs
ehout 40 or eco a month. lie did not Know N's
n not,. he was not able 20 meet II then. ano hhu
no, n cent To pay 1t with now Leigh Osborn uarre.'
rote statement showing that II was merely nLs
=, s,or;Iue that n note which no gave In Pvre,,
-, sincss wny in connection With phrchhsc OF Ahu.
Sod becn found among the papers OF the Mtver'oA
bgrk The committee adjourned unth 10 mo'FV"'