The herald., 1893-06-15
FORCED TO CLOSE DOORS.
A Southern California Bank
Suspension.
The Riverside Banking Com
pany Embarrassed.
Inability to Make Collections Given
as the Cause.
Depositors VIII Probably Be Paid in
Fali-No Other Local Banks
Involved = Eastern Bank
Failures, Etc.

hlNEhclOhs Nhis3 y Iuc 1ts--I uo hLF0E"
side Banking company, corporation
organized under the state laws, sus-
pended payment today. The news OF
the suspension was great shock to
those of the community not in the inner
circle of local finance. To those familiar
with the situation the suspension was
not wholly a surprise, as the concern
was known by them to have been labor
ing under heavy burden for many
months. Aberdeen Keith, an old and
wealthy citizen and president of the
board of city trustees, is the nominal
head of the concern. The manager is
o. T. Dyer, who is now in San Fran
cisco.
The failure of the bank to open it's
doors at the usual hour this morning
was the cause of wild and unreliable
rumbrs, and great CONSERVATION TO r a
time existed among the depositors. The
bank officials made no explanation. The
iron gates at the front of the bank were
locked with paddock and bore the
notice: "This bank is closed under in
structions. Depositors will be paid"
The real cause of the suspension is
stated to be difficulty in making collec-
tions. A statement is expected to be
issued shortly.
PRESIDENT KEITH's STATEMENT.
Aberdeen Keith, president of the
bank, was seen this afternoon. He APP
peared almost overcome by the disaster,
and his face bore evidence of sleepless
night. He spoke very frankly of the
affairs of the bank. Its failure, he said,
had come almost as surprise to him, as
until within few days he had no idea
that suspension was proba BILE.
I believe" 1 sajjdd I'D pMsld Md X full. ''rn nh, {
less, indeed, the bottom falls cat of the
whole country.o
"How came the bank to suspend ?"
was asked.
"The directors met at O'Clock this
morning and decided to close the doors.
The meeting was very brief. We had
individually made up our minds, most
of us. what had to be done. The sus-
pension was due to a failure to make
collections. We found that we could not
do more than get through the day, and
were not sure we could do that; so we
thought 1t better to close than risk a
run. | am not able to say anything
about the liabilities. l suppose a state
ment will be made up in few days"
'sHow about the report that the Pacific
Bank of San Francisco threw out draft
of your bank for $15,000?" was next
asked.
THAT is not true" said Mr.. Keith.
"They did refuse our draft for $4,000
few days ago, but they paid it the day
after"
"Will the bank resume ?"
II hope and think it will; but that
will depend upon the bank examiners.
If we are given q chance to make COL
lections 1 think we can 60 on, but if we
are crowded like the San Diego bank
was, we cannot resume"
When asked about the whereabouts
of Manager Dyer, Mr.. Keith said he pre-
sunned Mr.. Dyer was in San Francisco
and would return soon.
ATTORNEY M'INTYRE TALKS.
W. ]. Mcintyre, the attorney of the
bank, stated that the BANKS troubles
dated two years back. It had advanced
money literally to the orange growers of
this section on prospective crops, just as
commercial banks in agricultural dis
tricts make loans to farmers. The frost
OF two seasons ago put the growers in
bad shape to make payments, and the
bank found trouble in getting it's money
without pressing debtors. The low
prices of oranges the present season
added to the embarrassment of the
growers. The bank continued to carry
many of them, its officers being unwil-
ling to crowd them There was no run
Immediately preceding the suspension,
but considerable sums were drawn out.
one deposltor taking $4,000 only two or
three days ago. Collections were slow
and deposits light. If the bank could
realize on the paper it held it would be
all right, but it's officers had been un-
willing to drive people to the wall, and
cause general commercial trouble.
Mr.. Mcintyre said the bank examiner
was expected to arrive on this evenings
train.
''Do you think there will be an as
signment ?'' was asked.
mo-" said the attorney, ST do not
believe there will be. At all events, [ |
nave no Instructions In that respect.
THE BANK MAY RESUME.
Mr.. Mcintyre further said he believed |
he bank would receive help and resume.
He had no idea that the depositors
would lose dollar. The institution, he
aid, was backed by some of the wealth
est and most influential men in the
community. On January Let, before the
'un on the bank in February, state
nenE of resources was made which
howed the assets to be l,117, ,285.24,
md deposits amounting to $54l, ,55S.58.
During the run in February great
many OF the deposits were withdrawn.
President Keith had on deposit at
east $76, 900, while a large number of
'ther citizens had sums on deposit
angling from $4,000 down. There is
lot the slightest uneasiness regarding