The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1893-05-25
GRHNIYK BANK RUN
How Hyde, Freyschlag & Co.
Met ALI Corners.
BESIEGED BY ANXIOUS DBPOSITORS
About $4,000 Paid Out in One Day and
Over 100000 in Readiness If the
Rum Had Continued One
of the Solid Banks
of the Country.

of the Solid Banks
of the Country.
Granite had real metropolitan expe-
rience on Tuesday of this week when
run on the bank of Hyde, Freyschlag &
Co., took place in the most earnest form.
During Monday afternoon report
gained circulation that the bank was un-
safe and it's doors we're likely to be closed
to it's depositors. However the report
was started or what gave it any semb-
lance Of truth the depositors did not
wait to question but Immediately began
to draw out their money and before the
hour for closing arrived several thousand
had been paid out on time certificates.
During Monday night the rumor spread
like wild fire and soon as the bank
opened its doors Tuesday morning the
eager crowd stood in line to draw out
their money. Every demand for with
drawal was promptly complied with and
the run was kept up all day and Cashier
Housken wishing to give each shift an
opportunity to get their money kept the
bank open and continued to pay out
money until after o'clock in the even
ing when the run ceased and the clear
ing showed that S74,600 had been paid
out. During the afternoon of Tuesday
however some of those who were among
the first to draw out became satisfied
that there was no foundation for the re-
port and redeposited their money and
during banking hours yesterday nearly
two-thirds Of that taken out the day be-
fore was put back on deposit.
HOW 1T HAPPENED.
The real cause of the run is somewhat
mystery as is usually the case in all
such circumstances; rumor HAD it how
ever that Joseph A. Hyde who is presi-
dent of the bank at Granite and who
also holds like position in the First
National at Philipsburg, had withdrawn
from the concern and there was nothing
left in the bank but portion of the de-
posits and the fixtures. This rumor was
brought about from the fact that some
two weeks ago Mr. Hyde transferred
some of his stock in the First National
to Freyschlag, Huffman & Co., and after
SO doing he departed for visit to the
Worlds fair. Mr.. Hyde, however, still
holds the position of president in both
banks.
THEIR CONDITION..
The Hyde, Freyschlag & Co. bank at
Granite is private firm but the firm is
made up of the same men who are at the
head of the First National bank; hence
these men are collectively and individu-
ally responsible for the transactions and
deposits in the Granite bank. They are:
Joseph A. Hyde E. G. Freyschlag, DR.. J.
M. Merrell and James Patten. Any one
of these gentlemen is probably worth
more than the Granite bank ever con-
tanned at one time unless possibly on the
day Of the run when 100000 was added
to the funds Of that institution. Any
one who is familiar with banking sys-
TENS is we'll aware that few of the most
solid financial houses in the country
could stand sudden run like that Of
Tuesday; and it is true, that had the
First National not been prepared to fur
nish all tho money wanted the doors of
the bank at Granite would have been
closed, not because they are not thor
oughly substantial but because it is not
customary Or even expected that banks
shonld keep enough money on hand at
all times to pay every dollar with them
on deposit; there Is not bank IN the
world that does 1t and if they were
obliged to do so few of them could exist
and none could make it a paying bust
ness.
WAGON LOAD OF MONEY.
EARLY Tuesday morning safe contain
ing $4,000 in gold, silver and greenbacks
was taken up the hill, and in the after.
noon when the run showed no
signs of abatement, wagon was dis
patched to Philipsburg for more money.
The wagon is that used by Treveaille &
Penrose for frelghting between Philips
burg and Granite and it was loaded with
gold and silver until the springs touched
the axle. There was 100000 ppou it and
when it reached Granite and was depos-
tied in the bank the depositors began to
turn away without drawing their money
while others who had drawn out COM
menced to r, place their money IN the
bank. While the run continued every
kind of draft was paid, the most of which
we're certificates OF time deposits which
the bank may refuse to pay until the ex-
piration Of their time if they should so
desire, but every demand was promptly
met including every kind of deposit and
some checks that miners of the Bi-Me-
tallic and Granite had been holding for
months we're presented and paid
THEIR FRIENDS.
Soon as the bank officials learned OF
the threatened run they at once tele-
graphed for assistance and with only the
word to send it the First National OF
Helena forwarded 100000 which ar
riveu Tuesday at noon but still remains
in the original package. A letter fol
lowed the shipment from Helena telling
the First National here to call upon them
for any amount and it would be sent at
"a " AZ