Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-04-19
RUN ON THE BANK
The Central Michiepa Savings
Bank 4 lass;cg
FORCED 10 CLOSE ITs DOORS
1oosseAsn Gtvea ~ - l.aasAag Lnn-
brs oosspaay 81 shs tAgtas
works Scassa en0e DspouAsssN

LAxsrss. MicA- April ls-n~s has
been considerable furry a szcit~mens
in financial circlss In crntrsl MscAiSsn
during the past too dAys c~usrd by the
embarrassment of the I1Ansins Iron 4
Engine works and the Lansing Lumh~r
company. tso leading mAasfsctarinx
institutions of this city. A cssAs wss
reached today when the institutions
named hisd mortGsers upon their real
and personal property to the amount os
Sol GO IN favor f Orlando ~ Barnes.
who has indorsad . lsye amount Il
their paper. A feeling of insecurity at
once srose among the deIsositors ~ oes.
tain hanks. which have lrca dealing Ia
the paper II the companies mentioned.
and . sudden and wholly unexpected
run wac made upon the Central Mishi-
gan Savings hank After meeting all
the demands of d~yu~stors Cor several
hours. Cashier Bradley. upon the advice
al State Banking Comm.sSioner Sh~r.
wocd. ut 3 o'csock this afternoon cioscd
the doors II the hank The state bark
ing commissioner 10 noe in ekxrgc. The
managers of tho hank maintain that
the institution IL perfectly solvent and
in few dsys iis doors sili lie
reopened-
stand ~ she Hank.
They say that no hank in the state
could fe expected 10 withstand run q
this kind. AZ any one famil,sr with the
business knows hos impossible II wouid
he for any bank o. pay AL the siepc<itors
within fcw hours The utmost conf
1pnrc m the sAtftsx - a.. l....l
cecd to business In expressed by ciiiz~ns
and business men generally. many 20
them continuing a. make their daily de.
poeits while the run wnn 10 progress.
There IL. however, considerable neasous-
ness on all sides. and Lansing has newer
before. even when James NJ Turner
failed. witnessed such q financial con
vuisicn.
u. r. Barnes il the president oe both
the Lansing Iron 4 Engine works and
the Lansing Lumber company. Both arr
extensive manufacturing concerns and
the latter has large intcreste at Dodge
and Clare. in Glare county. Michigan
The Hon. Orlando n. Bsruos 10 the
father of President Barnes a these in.
stitutions. and . gentleman ce extensive
wealth. rare busipcss experiences and
strong influence. In 1919 he was the
democrat candidate for governor AZ tho
state and at present b . member oe the
central board of prison inspsctoA
What ~. NasuD oass1sA
He became iudmusr uyna - papsr ce
the institutioas a which hie enn 10
president and the latter beooning in
VOWED. the mortgages wess filed and
the property placsd In his hands ~ the
bcst pnssible splution q the difiiculiy
Mr.. Barnes now has In ils hands ne
security Tor the debts oe these two com.
panies upon whose paper he 10 ihdorser.
available property aGxrugssine in value
from el 10000 90 ei .S0000. HE own
personal estate 10 worth in the neigh.
borhood u el.WO0O. The liabilities
which he assumed are not thought 90
exceed 100000. which constitutes HE
entire indebtesines
The largest portion of the paper upon
which q. N. Barnee 10 indofser is held
by the banks u THE city. shiie the
larger amount 10 held by the Central
Michigan Savings bank which closed iis
doors this afternoon.
Prom u hssty sxamination of it's sfsirs
by Bank Commissioner Sherwood 'his
afternoon that gentleman expresses the
belief that the institution 10 perfectly
solvent and will te sble o. meet iis ob.
legations without permanent smharras.
ment- The other hanks ~ the city are
considered perfectly shfe AMI only Inn.
tied amounts Il the Barnes paper are
held by them. Unlcss the de,s<isors.
who have 10 just reason for alarm. per
sisi In losing their heads ard precip,ist.
another run. no further trouble 10 er-
pected