Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-03-26
NASHVILLE BANK FAILURE.
Duo to the Collapse of Dobbins aud
Dazey-rhe Situation.
lBy telegraph to ;he Dispa,cn.l

80 W 49, 'h1NNAf"AAHN
NASHVILLE. Tenn, March 2a-The Com
mercial National Bank OF this city sus-
pended this afternoon after banking
holrs. The cause OF Suspension was the
failure two days ago OF the firm Of Dobbins
d Dazcy. with chief Offices IN this CITY.
which firm was largely indebted 10 the
Commercial National Bank. At a meeting
OF Representatives of the other banks IN the
city the conclusion was unanimously
reached that there was 10 reason IN the
present condition Of affairs for apprehend-
Ing any other suspension among the banks
OF the CITY and that business would 60 on
as usual.
The Commercial National las n capital
stock OF $500. 600 and n surplus fund and
undivided profits of sos 900. tn. believed
that oil depOsitOrs Will be paid N fan and
that the stockholders, when the affairs Of
the bank are wound No. Will lose little II
anything. The bank owes depositors
about 5000. 600. Mr.. Spur. tho president
OF the bank. makes tie following state
mcut The failure Of the firm Of
Dobblns d Dazey involved the bank
IN heavy loss. the exact am unit o. whica
cannot be ascertaIned. The %strinCorcy OF
the money market rendered IL difficult -
discount, and az rumOrs detrimental 20
tho interests Of tho bAnk were being cir
culatcd on the streets OF Nashville. and IN
ORDER that a run on the bank might be
avoided and all creditors be permitted 10
share alike IN It's assets. q suspension
was regarded "a thu only course left
to the bank. Nearly the entire amount
OF tho indebtedness of TINS firm TO the
bank was brought about by means OF gross
iuIsstatemcntS as to shipments OF cotton
mad by Mir. DaZey 10 the cashier. Prom
"a careful estimate of the assets OF the
bank there can be no reasonable doubt
lae aL.s al sI. .~.Fas-wr Mill Ia rtnnA IN
iuIl Just as soon rs the assets OF
the bank can bc realized on.
Should the eutro amoun involved n
the DObhins a DaZcy failure be u total
loss. and all other doubtful CLAIMS be
charged OF. after eXhaustlng the surplus
and undivided profits, the impairment 81
the capital stock cannot be very great.
The surplus and undivided profits amount
TO about $4,000 signed,
M. A. Srupn. President"
The commercial banks hold life,
insurance policies upon the We OF
Darcy. o. the firm OF DOhblns q Dazey,
amounting 10 Sl15.00D. part security Tor
amounts duo from that firm.
THE poBBINs-DAzEY rETlK.
NASHVILLE. Trvy., March 25-Nlr. j. p.
pobbius has made thefollowlng statement
concerning the failure ot the firm OF Dob
BIN a Darcy
The hrm Of Dobbins & Darcy has becn
IN business sixteen years and has steadily
plospercd. On March nth 1 mad every rca-
son 10 believe. and did believe. that our
business Was worth SJO3.0)O. On that dGY
| received a telegram reporting rhat some
drafts on our Nashville Office had been
protested. This greatly surprised me, as
| dli not think We owed any money, and
had received no information about tbs
from our Nashville Office. | came
$500. 3D. N~..hrmI1A -, D
rect u Mr.. DaZeF, who seemed 20 tu1pk
that our business was all night. Mr.. Darcy
was then and IL now sick. ON lnvestica-
ton at our Office 1 found that we were
largely III debt. much of II to New York
and III the East. II seems that over $500
GOO has been lost in various wavs from our
business, leaving rs unable 70 meet our
obligations. all Of which are debts OF tho
Nashville Office. To protect Il creditors
We have made an RssiEnment, -surrenderlng
all assets Of all kinds belonging TO the
firm also. all of my individual property.
Nashville Is our parent Office, anu Mt.
Dazey the resident partner. | reside at
New Orleans. During sixteen wears Of
most intimate ASSOCIATION with Ar. DaIeY
| never questioned 10 statement he ever
made: be had nv fullest confidence. |
Z haze believed him 10 bea man OF the high
est order OF integrity. cannOt explain
his statements or his actions. and ne has re-
fused to explain them 10 mo. Our legltIma o
business. conducted according TO the pur-
pose Of our partnership, has always been
profitable. 10 seems that heavy losses
were made bv outside speculat.ons which
had nothing 70 do with our business.
Among them Is "a heavy loss by the mon
Mll Company. / mention tins that the
cause Of our troubles may attach
where II belongs, and not TO any
flult Of our business. The mana
rers Of our branch offices are not
liable IN any way tor our obligations;
Will stay in Nashville for the present and
look after tho interests Of the business. l
DO not think the suspension VIII nave any
effect On the cotton market, as We have
lttle OF no interest IN 1T bow. ! do not
think It will materially alect our local
banks. As our branch Offices owe nothing
and their business Is Ia good shape, our
AFFAIRS NAV wind up much better n at
present the outlook would seem to lndi-
80.