Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-06-02
CASH DID NOT COME
CAUSED BY lAPpEN's CRASH
Ausas Ass sss<i 60 nc Twicr the Lkn-
c5sss<s and Del-,.isors Wiu He
Paid in EuiL

4xiparkts. VIA. June 1. - The
Psnkinton hank which was involved in
The T. r. LAppen failure. exceed its doors
tim morning The followiug notice VAS
posted so the doors;
gzAlx~ tie oask aud ne continued With
ths intsr--zs a all depositors snd the stock,
kos-i-rs h eiesr the baak-
rez PLssxiSrox BAsx.
rhs failure sor sarh IL h. ca,lses no
surpriss In business circles. II vas .
fsregons conelasioa. Tho moment the
fscs sas n1asie public that IL xas In.
scived % tke ext~nt of s.-7i.oo ia Lap
fsn csse. Iust that moment n was Ger.
tain The bank must cease 90 do business
or face the alternative - reorganixing
and With new officers try 20 live down
irs taf reFutatipn. fsnaacicrs g-nes-
sly believed ll9hidaflon uas the oniy
resort ths. might reasonably be ex
pecfrd The stockholders wert o. work
-aa ,srely - make the hest IL tho matter.
AMI Il Niil be the universal Judgment
that they have done - IN closing the
dnors - the Institution.
Press lent Day is not az the bank ffis
aofuirx hut az his home i'll Ho.-
fasses O. MAKE statement and all &C
ocss O. hisr - denied Cashier Mommsrn
hss pron4issd o. give out a statement OF
the banN's condsiion
ssssinx on Disaster.
The failure can be easily traced back
b. the ruB of Aay L. when IL was oniy
b. tie -lau.iest exertions of the hank
osrcsals .ad tbe support II other insti
tutlon- hers and IN Chicago that II Was
saved from d.sastes. When Lappen 4
CO failed May l. IL became known that
a large amount of worthless paper of
that hoass was held by the Piankinton-
kanor- affecting the banks solidisy had
bern goamon on the street. and when
the pialn fact that the Piankinton had
been carrying Lappen 4 Co. became
known and VAS now IN the hole TOR
many thousands % dollars scare among
the depositors ensued
lt was freely predicted on the morn
Ing ~ May l3 that the bank Vas going
- smash. and when the doors were
op~nei great crowd rushed in 20 draw
cut their nioaey. The bank ofic~rs had
n1ae;s rapid preparations Tor the run.
The available collateral Vas used In In
er-.~ing the amount Of cash on hand
and sensational tnp vas made up
from Chicago With elD.00 of tho
Psnkinton's funds xhieh had hecu on
deposit with the Continental bank Of
thai csfy.
Assignee Appointed
The Pfankinton made an assignment
This afternoon William Piankinton ia
assignee. and Judge Johnson fxed the
bod st st .sc.0Oo. which bond be imme-
diarely Furnished. with Senator John
Mitchell. David Ferguson and Charles
kay as sureties.
Cashier Mommsen said: The depos-
itors need not - apprehensive u yosing
their money. Every dollar will be paid.
but Il NiI take a liftle time. probably
not over two weeks. Arrangements that
have heen urder way for several days
relative 70 the reorganization II the
bank feil through az o'clock this morn
irx and ), vas thought best 20 suspend
Temporarily ia order . properly adjust
u.1it~r~. The bank needs little time
g. get ~ Affairs Strengthened out. The
suspension has 10 significance whatever.
Onr coFrespondents throughout TIE
safe viii not hc effected Ia any way
The relations % the hank d them was
such a. = be IN its favor Regarding
a Reorganization nothing san 10 said az
pr~scut
Iigar~- Hard 90 Get.
n r. iniyos4ibie - get a detailed state
rlrni q the as~ets and liabilities n The
lTsnklGgton bank. which closed its
tloor~ this morning Unpreiudiced esti-
mates however place the nominal
as-~fs az sl 10000 and fhe liability 90
lier<@itors az $4,000. These assets in
ciaiis paper ke,d by the bank axairst
crluc~rrs in ehich Frank \. I.appen was
Interested amounting m the aggregate
- assrIY @e.ttso a. weii hs Hotes 60 y
r psv. the president - the hank. Tor
ire sum q ssooU The immeaia,e
eause q the failure vac the unfavoraile
answer g. the bank directors this morn
irz q -tssorge Bruudes and OFT er
c7pifsbs,s who werr expected 70 fnr.
nisA means gor the reorganixation ~ the
hank The directors al drclare that
the asast< sr~ not only sufficient to ray
the dsps~ifpr= in fpil bat slso that the
sfnck iss,i,iers eiil iose n0tnin- II -
a.-, ssi1 that o. L. Dsy. the hank .
president - ssvpnf Mr. Day's lislsili
f.es are aaii o. exceed NO more than
sSslss sni his Assets are fully el.0c0
49, = norfytge vas entered at the
REGISTER q ieesis fhis sffcrnoon IN
~h,.sh = r psy The hanks preeiiest
xsys- ~ PisukiDgfon hank a mortgage
a seventy Eve iots IN Highland boale.
vsr5 nesn.ssily sor 81 and other csn.
sasefsite',z ic - rasied hereafter. value