The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-12-22

members OF the Cotton Exchange that the
bank Y solvent and that every depositor Will
Nj. Isthropis OF the firm Of Iathrop, Smith
4 Ollphant There are 20t stoekhoders, IN
the bank. and the last sale OF stock was at 10
:, Late In the day Mr.. Preston, Mr., Graves. and
tne d seS IN me
The ATTORNEY General or one oil. his depu-
BIO tax en- 70 put the bank In the hands OF a re-
celyer There lie nothing ahead for the bank
now to- give Ggures showing the exact cSondi.
its capital is Impaired, s15U.oG0. There has
holders to make this deficiency good Among
the loans are gas stocks and other stocks
criticised for closing this bank. and 1t has been
charged that acted hastily. That is not cnr-
ISt sosnv nat sSyss G
Bank In Brooklyn quicker than did. Before
/ acted here | consulted with Frederick D.
mitIee, and AIN right In the step took"
Did the Affairs VI the American Casualty
Company have anything to do with the banks
Mr.. Preston l nm n OF prepared to say,
President Graves very positively No. sir;
Or .Beccher. schenok 4 CO.."
Mr.. Preaton-l am not prepared to say.
President Graves talmost ungrilYl-No. slri
Mr.. Preston CONFERENCE.-The bank was all
right Wnen IL was examined last February, nut
since then It's louns have deprecated In duan;
tity and quality. Possibly the depositors will
be paid In full; II find that q banks capital
ficicncy. But In this case any such action on
President Graves then took bis turn in talk.
Ing to the reporters lie said:
The cloeinc Of tho bank could have been
entirely avoided II MIR. Preston had given us
the sixty days in which to make good any de-
contrary. some OF the loans include stocks
which are not active at the moment and which
he nss ,e dr O
which he mar ked of entirely, could have been
taken ur to-day. 4 proposition to that effect
tom OF Mr.. Preston's action to-day. and the
closing Of this bank was perpetrated for the
purpose OF protecting In some way the Madi-
During this sally Mr. Preston remained
Mr.. Tappan and other mem hers Of the Clear
ing House mmiitee endorsed the action OF
MI. Preston. Mr.. Tappen said that the capital
not counting any loss from the Madison Square
Bank. but that the depositors would undoubt-
There was a little complication during thu
Bank. one firm received In payment OF Q loan
The question was submitted to bank ,Fresi-
dents and they decided that the drawer
the iirm that received the check must
walt until the St. Nicholas Ban. can tako
BROKERS BANK. and the irconvenisnce result
street. To make clear the present relations
Gas II may be recalled that on Aug 8, when
the former closed rs doors i owed ih h 81
held collateral amounting to $4,000. The
81 Nicholas on the following day accord
Hs sns mse # the ns SsnF so nUsSs
exchanges. which amounted to $3.50 900.
including state treasurer, Elliot Danforth's
ComPany's check for s50, 09Q and sundyy small
checks amounting TO S5O.OOO; These LETT tho
SQUARE a' n" for about siSUvUu. The receivers Of
tho Madison square. Messrs p'Brten C9n-
hy 5 4G s ~ l..
put In. a claim i9r s5Ol 600, which does not
and other securities, which were among the
soilsteral Of ths Madison sauare held BY r ths
whole matter is now in litigation,
The Clearing House Committee. although
sHyns ths Win tes
criticism from certain peoples This, was be-
cause the indiyidual members Of the com,
was recalled that when the BANK OF Deposit
suspended and, when the Madison Square
Tor Criticism The best sentiment OF Wall
street sustains the committee. 1t was pointed
out that the committee is, composed Of some
and that II cannot DO too highly regarded
for promptly cutting short the losses OF any
bank in the interest Of dspositors. We're IL not
for this committoe, II was added, banks that
have gone to the wall would have continued in
operation until depositors were without the
slightest chance Of a dividend
The same criticism that Comptroller Eckcls
makes on tho national banking system was
heard yesterday concerning the state banking
Department. There are not enough national
examiners Of bank and there are not enough
state examiners. The Clearing House Com
mittee in the mean time is compelled to act
both as n national and State examiner In
many instances.