The herald., 1893-06-15
AsorHnR A0CouNr.

its doors this morning at the usual
hour, but affixed card on the iron gate
which guards the entrance, explaining
the trouble in the following words:
"This bank is closed under instructions.
Depositors will be paid"
The news spread throughout the city,
and in q few moments curious people
could be seen on the streets going in the
direction of the building. At no time
during the day did large crowd congre-
gate. All the depoHitors took the mat
ter philosophically and seemed to feel
perfectly safe, as the directors are
heavy real estate holders and all are
confident they will be paid in full.
CAUSES OF THE SUSPENSION.
The failure was not altogether unex-
pected. Bad management of invest
ments on shaky collateral is doubtless
the cause. Last February o. T. Dyer,
manager of the defunct institution,
decided the greater part OF his property
to his wife, while he placed $4,000
worth of realty in the name of s. 7.
Hall, his confidential agent. Several
ugly rumors were soon afoat, which
caused a run on Saturday, March 4th,
dA0 COAblnuCO 0UlAAh UhO lilOAQay lOl-
lowing. The county division fight going
on in the legislature at the time, caused
the other banks in Riverside and the
First National of Los Angeles to come
to its rescue and tide over the trouble
for the time being. 1T is evident that
since this run want of confidence has
has considerably affected the busi-
nees of the bank as depositors
were continually withdrawing, and
banks with which the institution had
accounts pressed payment A steady
drain was kept up till the present time.
This, added to the advances made to
customers whose crops for two years
have not been remunerative, was doubt
less the immediate cause of the suspen-
sion.
CLOSED ON DYER's ORDERS.
For the past two months o. s. Dyer
has been absent, spending the greater
portion of the time in San Francisco.
This morning a few minutes before 10
O'Clock, telegram Was received from
him, ordering the officials not to open
the institution for business. II he gave
reason it could not be learned.
A rumor was circulated on the streets
at noon that the Pacific bank of San
Francisco had refused to honor draft
for SIS, 900 the day previous, but upon
investigation it was found to be false,
although 9 draft for $4,000 had been re-
on The ground tsaEa ats fss bs, si;, hsa not
been notified by the Riverside bank, but
it was afterwards paid.
THE BANKS DEPOSITS.
The bank had between $3.50, 900 and
100000 in deposits, and the last state
ment Of the bank gave the capital stock
as 100000. A large portion Of the
liabilities are supposed to be Offset by
worthless paper and unfortunate in
vestments.
The depositors include all classes of
citizens of Riverside, but it is not be-
lieved that any buainess houses are in
volved. The Riverside rrust company
is reported to have deposited in the
defunct institution large sum of money,
and it is suspected that the failure will
embarrass it. Several merchants in this
city, from whom the Trust company
had purchased supplies for prosecution
of its canal work and who had accepted
checks on the Riverside Banking com
pany therefore, will lose by the failure.
"A report was circulated on the streets
this morning that the county treasurer
of San Bernardino was loser, but such
is not the case, as not cent of the
county funds was on deposit there, as it
was withdrawn by Treasurer Reeves
May 8th.
NO OTHER BANKS INVOLVED,
The other banks of Riverside are not
affected by the failure. San Bernardino
county banks are not in any way en-
barrassed by the suspension, as only
one has any dealings with the defunct
institution, and it owes the Riverside
bank $500.
The officers OF the embarrassed bank
are: A. Keith, president; J. A. Bren-
neman, vice-president; O. I. Dyer, man
ager; Miss E. @. Dyer, cashier; J. H.
Goodhue, assistant cashier.
PRESIDENT KEITH TALKS.
Aberdeen Keith, the president, was
interviewed by your correspondent this
afternoon, and stated that the cause of
the failure WAS lack of funds, caused
by tardy collections and steady drain.
He said the officials were of the opinion
that they could not make payments to-
day, and decided to close rather than let
all the money be withdrawn. He ex-
pected the bank commissioner this even
ing or in the morning, when a receiver
would be appointed and a statement
made of the condition of affairs. The
officials were looking over the books and
the document today, He de-
MED the rumor that a $4,000 draft
had not been honored by the
Pacific bank of San Francisco.
He was positive that all the depositors
would ba paid in full He was sure the
who are prominent and re-
sponsible men, would be able to make
and that the depositors need
not feel any alarm. He was a heavy de- |
positor himself, so the reporter learned, |
having on deposit $4,000, and also a
heavy stockholder.
A BOOK KEEPERS STATEMENT.
A book keeper in the bank was also
,een and said he knew of ho trouble
when the bank closed last evening.
After he reached the bank this morning
10 was surprised when he learned that
. message had been received that the
bank should close. He was positive no
un had been made on the bank of late.
UNFORTUNATE DEPosIToRs.
A number Of poor families are said to
lave money in the bank, and will feel
he losa heavily. Several school teachers
Vere in the habit of placing their earn
ngs in the inetitution, and are consider
bly, out of pocket. This morning one of
hem went to the bank about 10 80