The Providence news. (Providence [R.I.]) 1891-1906, 1893-10-14

Intense surprise WIS caused In mercan-
tile circles by the announcement that the
Merchaut is Savings bank OF this city had
asked the supreme court for permissi IN to
wind up its business. The an-
nouncement was totally unex-
pected. The bank has never
shown signs of weakness. Many fright
eped depositors had served the ninety
days notice required by the bank, aud in-
ability to meet these obligations and the
general depression Il the money market
drove the bank to the wall
The Petition.
This petition was 1led in the supreme
court today;
Petition OF the trustees Of the Merchants Savings
bank of Providence TO wind up Its business. ETC.:
To the honorable the justices OF the supreme
court. sitting AT Providence within and Tor the
county OF Providence. In appellate division:
Respectfully represent the undersigned that the
Merchants Savings Bank. OF Providence. IS a Cor.
poration duly created by the general assembly OF
this state and located and doing bnsi-
ness In the city OF Providence In
said county; that they are two-thirds
In number OF the proposl chosen and duly quali-
ned trustees OF said savings bank; that az a meeting
OF the said trustees duly called and held at the
banking rooms OF said bank In said Providence
Il being the regular quarterly meating OF the
trustees. IL was voted. two-thirdso OF
the WuOlc numutF W tFurtcos tontuttAhk.
that Il is e~xpedient TO wind up the
business OF said bank and convert it,
property and assets into money and divide the
same among depositors In proportion To their re-
spective Interests therein. and hat proceeding be-
at once instituted la the supreme court
for the necessary authority 50 70 do.
duly certified copy OF which vote Is hereto an
nexed and made a part OF this petition; that said
bank as your petitioners believe with proper
handling and convers ion Of it's property aud assets.
is solvent and capable OF meeting all its obliga-
lions, the present situation OF the bank being as
follows, wiz
RESOURCES.
Mortgages .......,...,...... .........S 4Of.6eO.se
Collateral loans .....,..s....... ...-... io.Oh2.S2
Real oo,slZof
ooz.oV,OV
~oS,ofo!VO
Cash ............. .......... 45I.S 0
LIABILITIES.
Deposits. l.207.oo1e5
interest. ..s.s.'.s'ss..s o,.o-.to
Surplus 1871
CaL loan z'.ooooo
and that the reasons upon which said vote was
founded are the present strlngcncy OF the money
market and consequent lack OF confidence of do
posltors; notices OF intention by many depositors
undor sec. 70. chap. 13 of the Public
Statutes TO withdraw deposits amounting 10 more
than $4,000; and the impossibility without
great sacrifice to the great boiy OF deposit
tors in the present financial STU
alton within the ninety days allowed OF realizing
from It, investments and securities said sum
and the further sum needed TO safely and properly
continus the business OF the said bank.
Wherefore. your petitioners pray that the presi-
dent directors, trustees treasurer aud
other officers OF said bank may be enio ned
by order OF this honorable court from proceeding
further in transacting the business OF banking.
and that the board OF trustees may be authorized
TO collect the debts, dispose OF the property.
and from time to time as they are able
divide the proceeds over and above tho debts OF the
bank and the necessary expenses OF winding mp its
affairs among the depositors In proportion 10 their.
respective interests therein as provided In sec. "a
cap. 153, Of the Public Statutes.
This petition was signed by the several
trustees aud a copy of the resolution OF
the trnst ees was appended.
Temporary Injunction Granted.
The petition was heard by the court and
set down for further hearing Octob n
,26, and a ten days notice was
ordered for publication. Meantime the
officers OF the bank are restrained from
carrying on the banks business.
Treasurer ANGEL Explains.
John w. Angel, cashier of the Lime
Rock National bank and treasurer OF the
Merchants Savings bank, AZ Weybosset
street, when aske about the petition for
the winding up OF the business OF the
latter bank, said:
1--WE have taken this action in order TO
protect our small depositors. We h ave
received notices NJ Withdrawals mount
ting to over 800, coo. Most OF these
notices are from large de-
positors, and it would be unjust to pay
them at the expense OF the small deposit
tors. We simply cannot do it,
1--WE cannot collect interest on our
securities. and we cannot sell our securi-
ties without great sacrifice. Our
securities are good, but we
caunot turn them into cash. 1t is almost
impossible to raise money on anything
except government bonds.
Our embarrassment Is due to the six
months OF panic, and other banks will
soon be forced TO take action similar to
ouIs IL things do not improve.
:'Time is all that we need, and il we are
not forced TO s~icrifce our securities we
hope To be able to pa! 100 c nts on
the dollar. Our deposits amount to
over d. 200, 900. This bank was started in
1871, and this Is the first time we have
had any trouble. The interests of our
small depositors could only be protected
by the curse we have taken. We hope
every thing will CONT out all right. and
that every depositor Will be paid In full.
AS I said before all we need il time.n
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