The Providence news. (Providence [R.I.]) 1891-1906, 1893-10-26
Trustees Of Merchants Savings Bank
Allowed to Mind Up Its Business.
PROMISE DOLLAR FOR DOLLAR
Hot Arguments by tho Various Counsel
The Banks Investments Mostly West-
ern-A Dividend OF Ten Yer Cent. IN
Six Months Promised.

A hearing was given before Justices
Mattoson, Stiness aud Ttllinghast of the
Supreme court today on the petition OF
the Merchants Savings bank OF this
city for permission to wind up
its business under the statute.
Since the notice of the banks suspen-
sion two weeks ago there has been some
very earnest and very heated discussion
as to the advisability ofallowinR the bank
to take advantage Of the statute which
provides that the depositors shall be con-
sidsred after all other debts nave been dts
charged.
Numerous counsel were present this
morning, representing the various de-
positors. There were Cooke g. Angel,
j. Ersstus Lester, Comstock ard G. rd-
ner.and many Of the depostors themselyes
There were many and conf citing opin
ions as to the best way to settle the diff
Guilty. j. Erastus l. ster, who represents
the interests of several depo.itors, was
willing to compromise on three rec divers
TO be chosen from the present manage
ment OF the bank. Several other de-
positors concurred In this idea.
Treasurer Angeli's Testimony
John w. Angel, treasurer OF the bank.
was put on the stand and gave his testi-
mony as to the condition of the bank and
the reasonableness OF his request for per-
mission to wind up its affairs. All but
two trustees have signed thi petition.
The assets, Mr.. Angel testified, are
amply su fficient TO pay off ali depositors
dollar for dollar. il time were given to
dispose of securities at u reasonable
price. II sacrificed by receiver tie OBJ
| legations cannot be met. The bank is
| willing TO have restriction set, say two
or three years. The refusal OF a receiv
at the present time does not necessarily
throw the depositors upon the mercy
of the management. II at any time there
should be reason to question the methods
OF the trustees the court could compel
The acceptance of a receiver.
A Victim of the Panic.
Six months ago the Merchants Savings
bank WAS Ms sound a financial insti ution
as could be found In the state OF Rhode
Island. The trouble began to brew
with the beginning Of the none
tary panic. The ninety days
law was seized upon by the depositors
aud notice was served to call in $4,000.
The bank could not meet it's
obligations when the ninety days
expired. 1t made strenuous efforts
to dispose OF it's mortgages but with i'll
success. The run continued until $685.
900 had been called out and the officials
could go no further. Then the crash came
and the bank applet for perm ssion to
wind up its business.
How the Institution stands.
The liabilities of tie bank amount 10
81 2J7. 7.60l.95 Its bonds cover $562. .01S. NJ rt.
gage investment aggregates $254, 742 SO
in sums ging from 500 to $4,000. or
these $40, 917 90 is Ia w es ern ia vestments.
Real estate investments amount to S63.-
9l2.67.
The Securities are Western.
Nearly all the banks monev is invested
in Western enterprises. Only $780,
000 is inv ste east of the
Mississippi. Most of the Sc
cur ties are said to be good, but cannot,
under the present financial stress. meet
heir obligations. Two only, have failed,
so far.
Would Soon Pay Dividends.
Mr.. Angell stated that IL the court
would allow the present management to
continue in charge it would be
en- rely possible that the bank
could paw ten per cent. in six
m pnths. Every loan is secured by good
collateral and only a continu ,tion of the
present financial depression wou Il pre-
vent the bauk from eventually liquidat-
ing.
Wants n List OF Depositors.
J Eastus Lester asked that list of
depostors be furnished that all might b..
notified OF tn exact condition Of the bank.
lie s.a ed tha' he had asked this OF tho
trustees Of the bank, but his request had
not been complied with. The to, al num-
ber caught Ia the crash is said 10 be
1850.
Trustees Petition Granted.
+. c. Mowry represented tho bank and
held out valantly for the rejec ion OF
receiver. He characterized the whole
argument as love feast" and
expressed the direct apprehension
OF what would happen il rec liver
wers appointed. sit would be a general
slgual for depusitors TO rush in and
wreck their own ia erests," he declared.
"'Where ths carcass is, there the buzz
yards gather.
The court, after consultation, decided
that the rustees are competent to wiud
up the business and 80 Empowered them.