Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1893-07-27

MANCHESTER, n. H., July 23.-Bank
Commissioner James c. Lyford late Satur-
day evening served the papers closing the
doors of the New Hampshire Trust COM
pany of this city. This action was taken
after full consultation with the officers of
the institution and for the protection of its
depositors and creditors. The proceedings
were similar to those pursued in the case of
the Security Trust company of Nashua,
with the expectation that the suspension Of
business will be but temporary.
In an interview Mr.. Lyford says: Thers
10 no occasion for alarm on account Of this
action taken by the bank commissioners,
either among the depositors OF the New
Hampshire Trust company and tho people
holding its securities, among people who
are depositors OF the savings banks Of the
State. 1t is precautionary and protective
measure authorized by the laws of our
State to meet an emergency like the present
where solvent institution is unable to
meet an extraordinary call Of its depositors
for money. 1t operates as a stay, enabling
the institution to realize cash from its assets
without sacrificing them in falling mar
ket. 1t is a wise provision of law, for it
wards off receiver and the closing up OF
the business of the bank
The New Hampshire Trust company has
for the pact ak months at a time of year
when the, interest payments on its invest
ments are light, pSid out upon demand hev-
sral hundred thousand dollars over and
above its rscsipls, and but for the strin-
gency Of the money market might have
continued to meet calls for money. In do
ing this 1t has had tho assistance of the
banks of Manchester, and that assistance
would have been continued had it been
deemed advisable by the banks and the
commissioners to try and meet with cash
payments the demands being made upon
the company.
No INJURY will accrue to dspositors or
creditors by this temporary suspension, for
with the accumulation OF interest payments
from the West this fall, contemporaneous
with the movement of crops In that section,
the company will be in funds to meet the
Interest on its debentures and pay it's other
obligations.
Last month tho bank commioners made
their annual examination of the company,
the examination lasting over period OF
three weeks, in which every effort was made
10 ascertain the true condition Of the COM
pany. In connection with our examination
was one made by a committee of Its direc-
tors, consisting of ex-Gov. futile, Henry
Allison, president of the Safety Fund Ma
tional bank of Fitchburg, Mass, and Will
liam 7. Chamberlain OF Keene. There was
very careful appraisal of its assets.
The conclusion reached by the commits
sioners and the director were the same
that under prudent management there was
no occasion for loss to any OF its deposit
ors, creditors or debenture holders. The
interest payments on the mortgage n tes,
recurring its debentures, were found by the
commissioners to have relatively few de-
faults. In fact, Its western farm loan bus
mess showed gratifying improvement over
one year ago, when the previous examina-
tion was made.
The loss occasioned by the failure of thu
Atkinson Furniture company, an inciden
Of the company's banking business, was
charged out Of its surplus at the time OF
the examination. While the apprehension
felt by the depostors Of the company wal
undoubtedly due to the low prices at which
Its debeutures sold in the market, tina
price was not justified by the character O.
the mortgage notes securing these deben
lures, for the company bad not met will
losses in the West or with any exceptions
default In western interest payments.
The interest on the Western securities |
nearly all payable in the fall and winter
while its debentures have been semi aInua
Interest coupons. II met and paid It's Jul,
coupons as presented, and could have con
tinued its business but for the urgent cal
Of its depositors for money. The compan,
aas paid in capital Of 100000