The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-22
1t Was Caught for $780, 900 by the Sus-
pension of the Madison-Square
Institution.
OFFICIALS ARE INDIGNANT
PreStOn'S Act Declared an 0utra-
geOus Proceeding.
Good Paper Said to Have Been Valued at
a Low Figure-Tariff Bill Getting
In Its Deadly Work.

NEW YORK. Dec. H-There was much
excitement in Wall street, to-day. when it
became known that the State Superintend-
ent Of Banks had summarily closed the st.
Nicholas Bank. This necessary proceeding
not only caused great inconvenience to the
many brokers who were depositors in the
institution, it affected the entire financial
world, for 1t gave the bears a much de-
sired inning, and they worked 1t for all
they were worth. During the day, from
the persistent reticence of all the parties
concerned the public appetite for news
could only be gratified with rumors and
opinions but after the travail of the days
business had been concluded the examiner
gave an audience to reporter, and. while
not throwing much light on the pecuniary
position of the bank, let in a search light
on his own reason for taking the step he
did. Mr.. Judson, the Assistant Superintend-
ent of Banks, who has for the past ten
days been examining the books of the in
stitution, and Mr.. Arthur Graves, the pres
ident of the bank, were present during the
interview.
Mr.. Preston said: 1.-The situation is just
as you see. My assistant has made an in
vestigation into the affairs OF the bank, and
the result is that 1 have communicated
with the Encouragement and expect that
he will be here tomorrow. think the bank
Will be closed. There is impairment Of
the capital, and shall advise the appoint
ment of a receiver"
rs 1t not usual when the capital OF
bank has been impaired. to allow sixty
days to make good the Impairment
Under some circumstances" said Mr..
Preston. "such a thing is done If the CAPT.
tai of bank Is impaired 1t Is largely with
in the discretion of the superintendent to
allow sixty days in which to make the def
lett good, and he can make order to
that effect. If, however, he does not think
it we'll to do SO, he can enter into immedi-
ate possession of the bank property. That
is the course L have deemed it advisable
to adopt in this case. 1t Is not unusual 10
this case no notice was given. My exami-
nation of the position of the bank has been
clude until yesterday, because the examiner
has been engaged in trying to ascertain
the value of certain assets of the bank 1
net the clearing house committee yester-
day, and after having consulted with them,
L decided on taking the course of action /
have adopted. My last examination was
IN February. L do not consider the bank
Is In fit position to go on transacting
Then the Madison bank business had
nothing TO do with the suspension?'
well said Mr.. Preston, Il won't say
that their paper may be good for it's face
value or 1t may not 1t is an exceedingly
hard thing to tell how it will turn out"
The State Treasurer had a deposit some
time ago of $4,000"
1000. of which he has been the deposItor
lie mas money In great many banks Of
New York"
IAN OUTRAGEOUS PROCEEDING"
Arthur b. Graves, president of the bank.
said: Mr.. Preston does not think We can
fhQ NlrrcS
which amounts to about 100000 Now that
our credit has been seriously damaged 1t
VIII be impossible for us to go on. A re-
ceiver will be appointed. This has been an
outrageous proceeding Why, the extent TO
which our capital is said to be impaired is
calculated by placing valuable stocks and
securities or ours at a low figure Why, as
check for $4,000 was received here to-day.
put the examiner would not treat it as an
asset ass; though from perfectly solvent and
on the matter"
Persons conversant with the banks con-
ailon say there has been absolutely moth
the bank, though there has been bad jude-
ment shown in the conduct OF its business.
f1s losses fS extend over long period Pend
could be learned OF it's largest debtors
Bankers consider 1t a case of dry rot.
olas Bank on the morning Ge2r OF Of f Mev s
was received at the banking department in
Albany on Dec. g. 1898. 1t shows resources
from directors, Sl,595, 50l09; liability OF d.
rectors as per schedule, $50, 464 10; due from
trust companies, State and national banks,
SSsS.9to.sl; real estate. 81, 1853; bonds and
MORTGAGES. $9,S4S14; stocks and bonds, sol, :
$685.; specie, N42, 4i3.1S; United States legal
tender notes and circulating notes of ma
tional banks, $514, 2O7; cash items bills,
checks, etc., SS25. 2OS.5s; current expenses,
The liabilities were: Capital stock paid
in, 100000; undivided profits. $40, 963.O2; due
Panies State and national banks, 1853, 49i "a ;
| due Treasurer Of State of New York, $780,
| eD; other amounts due for unpaid divi-
aends, St "a taxes 5S etc. $S2s47a. making
The officers of the bank display a great
deal of Indignation at what they called the
summary proceedings of the State banking
| department. They were also bitter against
| the clearinghouse committee though it
does not appear what grounds, as the
| latter had nothing to do with il, and were
not called in officially. Mr.. George p Shell
den, one of the directors, in speaking of the
cause OF the present condition of TIE bank,
| said: 1t all arises from our cumpica-
tons with the failure, of the Madison
| $4,000 on secured collateral amounting to
| $4,000. which partially secured us. Our
counsel decided we are entitled also to the
| dividend or 20 per cent. declared by the re-
| ceiverS upon the entire amount of $4,000
This they recognized on the advice of their
| attorneys and would have paid in a few
days. That Will about make up the differ
ence between the collateral and the orig
| inal Indebtedness. Had we secured this
| money yesterday perhaps all would have
been we'll We will lose nothing through
positors nor stockholders will lose a penny
| by the closing of our bank 1 do not re-
| gard it as a failure, but more in the light
| OF liquidation.