Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-08-03

Milwaukee, July 25.-The Wisconsin
Fire and Marine Insurance bank closed
its doors this morning. The banks
capital was 100000 paid up. 1t had
the largest capital among the Mil
waukee banks, and in May, 1889, eel
! ebrated its fifGeth anniversary. By
a special act of the legislature obtained
by Alexander Mitchell the stockhold-
ers are liable without limit for all
debts Of the bank. John L. Mitchell
is president, David Ferguson vice-presi-
dent, John Johnston cashier and Rob
ert L. Jennings assistant cashier.
The bank was closed up on an &C
| ton brought by Benjamin Well, a
real estate man, who alleged that
the bank owed him $3,341 II, which ii
was unable to pay. On motion Of B.
X. Miller, Judge Johnson appointed
! Washington Becker receiver under
bonds of S1,O0O,OOO. This bank is the
city depository, and at the present
time holds S1,635,OOO Of the city's
money. Rumor has it that the city
treasurer this morning demanded the
whole sum and the bank, in Justice to
all depOsitOrS, closed rather than pay
1t. The city has only 5000 in cash
on hand and will be forced to suspend
payments. Tie Mitchell bank was the
depository of the Chicago, Milwaukee
and st. Paul road and paymasters
checks are drawn on it. They will be
cashed at the station here. The treas
urers checks will be paid by the Wis
consin National bank.
! The Semi-annual statement of the
bank, issued July 1, was as follows:
Resources and discounts &c.
4S5,673 80, .overdrafts 500, 233 II,
stocks, bonds and mortgages S567 ,412-
50, loss and expense account 1858 .SS,
due from banks and bankers 81 ,O3S,-
412 Al, cash-currency $3.50, 361 90,
gold and silver $124, 226. II. checks on
clearing house $16S,2 80, total re-
sources $S,946,344 81.
Liabilities Capital 100000 90, undi-
vided profits $50, $40. 81, due depositors
81 $50, SOB "a, due to others not in
Guided under either of above heads
344 81.
Cashier Murphy says: 'The bank is
not insolvent by any means, and only
time was needed to realize enough to
meet every liability. 1t not only has
ample assets. but Mr.. Mitchell and
Mr.. Johnson are behind it"
Washington Becker, the temporary
receiver, said: II have every reason
to hope that our depositOrs will receive
their money in a reasonable short time.
can't say how soon, Of course. but
hope it will be at an early day"
Within five miutes after the news
o. the closing OF the Wisconsin Marine
and Fire Insurance company bank con-
siderable crowds gathered at the First
National. Marshall & Ilsley and Wis
cOnSin National banks. NotwithStand-
ing this fact and the renewed feeling
of uncertainty number of old depOs-
itors were on hand at each of these in
situations for the purpose of making
deposits, and while money was hastily
withdrawn even larger amounts were
placed ON the inside Of the counters.
The bank was incorporated by the
territorial legislature of Wisconsin in
1889, the charter being granted to AL
exander Mitchell and George Smith,
young Scotchmen just arrived from
Aberdeen. The charter Of the company
was repealed in 1914, as it was discov-
cred that the company was doing
banking business, contrary to the pro-
viso in it's charter prohibiting it al
though in strict accordance with the
specific business it had been author
lied to do. Alexander Mitchell ran
the bank until his death few years
ago.
The stockholders Of the bank are:
John L. Mitchell, $4,000; David Fer
guson, $166,6OO; Washington Becker,
$4,000; John P. Murphy, $1,000; total,
100000. John Johnston sold all his
stock to John L. Mitchell about six
months ago, but Johnston was still
cashier and it is popularity thought that
the deal was not so fully consummated
as to relieve him of liability. Mitchell
alone is estimated to be worth from
100000 to $1O,OOO,OOO' while all 9TH
ers connected with the bank are also
wealthy. Mr.. Ferguson was complete
ly Frustrated and little while after
the suspension his condition became
such that medical attention was con-
sidered necessary and DR.. Fox was
summoned. Soon afterward Mr.. Fer
gusor was taken home in DR.. FOx's
ca Iiasc. Every man in the crowd of
bystdnCers had words of sympathy for
the white-haired old man who went |
into the bank with Alexander Mitch
ell over fifty years ago.
Other local banks were somewhat /
run upon but easily met all demands.
The trouble is thought to be over. Bank
ers have long deemed the Marine bank
shaky, because of the close margin
Business it did A speedy resumption ,
is expected.
LATEST NEWS.
Milwaukee, July 25.-The feeling
here is that the situation is now at its |
worst and that tomorrow will show Il /
brighter aspect to affairs.
Business houses which have had /
banking relations with the Wisconsin !
Marine & Fire Insurance Company |
bank have nearly all effected new
banking relations and while a large
amount of money is tied up in the
failure. if eastern creditors Will give |
extension to business houses there is
not likely to be any more failures.
So far the only assignment growing
out of the suspension of the bank has |