New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-24
BANK OF DEPOSIT CLOSED.
w. H. KIMBALL. BANK EXAMINER. IN
CHARGE OF 1T.
UNOFFICIAL ESTIMATES OF ASSETS AND LA
BILTEs-DEPosITo ASSURED THAT
THEY WILL BE PAID IN FULL.

associated banks OF this city III ad'isnS h"uiua'
'on OF The affairs OF the National EanR 81 deposit
was followed Yesterday bv National Bank Examiner
william II. Klmba taking charge Of the bank under
Instructions from the Controller OF the Currency
hopeful view OF the situation Is taken !" 'he ohcerS
Vi Inc Institution. who express the OPINION 'ha' 'e
stockholders. well the depositors VIII w pau
| IN null. 1t Is not definitely known whether the
liquidation will be undertaken by the deposors thth
serves or by officers OF the Government m'e''hg
OF the depositors will be held at 80 o'clock this
afternoon In Room 2I2. No. 2O3 broadway. to CON
Siucr course OF procedure Lewis H. ha'S""'
president OF the bank. hopes that committee NAV oe
selected BY the dcpoors. TO include representative
o. the bank, 10 effect the liquidation VIII the cohseht
| OF Controller Eckcls, that Government receiver
may BE- avoided. Mr.. Ransom thinks that IL inc ne
pos'ors will undertake voluntary LIQUIDATION The
winding up Of the affairs Of the bank may be- accom-
ished speedily and early declaration oil dlViutius
made II the liquidation can be successfully ehec'eu
the stockholders may then proceed To dulaate 'heir
| interests
On the other hand experienced bank officers be-
lleve that more satisfactory results NAV BE- secured
the Government winds up the banks affairs under a
receiver Even II the work should require Io"s'r
| time 1t Is considered that the final outcome VIII be
more gratifying TO both depOsitors and shareholders
| The course to be followed will depend largely upon
the condition Of affairs shown after u more
thorough examination than Mr.. Kimball has vet been
and liabilities Is hoped for to-day.
THE sEABoARD BANK ACTED INDEPENDENTLY
II was learned yesterday that the refusal of the
Seabonrd National Bank 10 clear for the Nauoh"i
Bank OF Deposit taken Independently oil 'he III
vcSiga0n made by the Clearing House COMMITTEE
The committee decided upon ts course becats" oil the
suspicion attaching to the Bank Of Deposit ever
since the collapse Of the Columbia National Bank ol
| Chicago. The two banks understood to have
had less close relations and It's general
methods Of conducting business had been nhder
scrutiny by conservative bank officials for some time"
At a meeting Of the Clearing House Committee al = D.
m on Monday. IT decided that the time was ripe
10 look Into the affairs of the suspected bank. The
committee acted under rule Of the Clearing House
Association adopted few years ago. after = small
| downtown trust company had refused to allow an eX
animation Of It's books The rule gives the clearing
| House Committee the authority To investigate
| any bank which clears through n member oil the
association that the committee possesses with respect
| TO members In full stan ding. when the committee
got TO work at the Bank Of Deposit on Monday IL
was discovered that the Scaboard Bank had terminated
It's clearing arrangement. Tie officers Of the last
named bank In explanation of their action make th'
statement:
Recently Il became evident that. owing To re-
duction in its deposits its Uhc National Bank Of
Deposit'sl loans were excessive and that IN" bai
was In need Of ready funds to meet is Obligations
The Scaboard consulted with various members OF INC
NewYork Clearing House rs 10 whether IL WOMB w
desirable 10 extend assistance. the Bank oil Deposit
was considered solvent. However. day bS gay INC
fact that the bank pressed for ready midN WIS
becoming more apparent. Under these circumstances
| the scaboard did not feel justified In assuming Inc
responsibility OF continuing to clear for the BANK &"
Deposit therefore gave legal notice OF IL ih'h
| ton To dlsCOn'inpc
TO LOSE NOTHING ny THE SUSPENSION.
Samuel q. Bayne. president Of thu seaboari Bank.
aid yesterday that tn. bank would not lo-" dollar
by the suspension Of the Bank OF Deposit W" cleared
all Items" he said which In through the Char
Ing House on the bank this morning tn" result OF
Yesterday, business - we Of cour," b. und
TO do by the rules the association. The National
| Bank Of Deposit only 100000 ana for ihr
! We have good collateral worth s'Oo.OC, besides
the personal individual guarnntc" OF every director
Of the bank against loss In consideration oil our clear
/ ing for IT,
III. fact was established yesterday that Amn
/ pvigdn. the head OF the Columbia National Bank
# Chicago and the author Of the peculiar system oil
inter operation, with chain Of eighty Nv" stat" banks
In the Western states. which The TIibnn" described
at tho time Of the failure Of the Columbia Bank. con
tcmpated at time securing control Of the National
Bank Of Deposit for the New YORK end oi liz
! syndicate President Ransom. OF the Bank OF Dc
! post. Acknowledged that an arrangement had "A'
listed al time looking 10 the cVntroi OF The Dam
by Mr. Dwigg1ns and III, associates. II IL understood
that this arrangement was an option for the puF-
chase Of Il majority OF the stock. The option expired
last February and IT. exercise would doubtless nav"
been resisted by some Of the directors of the BANK
| Of Deposit. Mr. Dwgsns. II Is understood. wns
able TO loan Of $4,000 through the United
| states Loan and Trust Company oil Chicago win
| SO4 600 OF the debcnturc bonds OF the company rs
collateral This company was part Of the system on
! which Mr. Dwiggins conducted his banking business
The debcnture bonds were issued against stocks OF
| IN yariu hank Of West
scssed only the value which might appertain to the
operations OF the state banks. Conservative Enrtrrn
capitalists have not regarded these debenturc bonds
| as gtedgcd security. Mr. Ransom however. has
relieved the Bank Of Deposit OF this Dwggins loan.
guaranteeing to provide for II out Of his personal
resources. II this is DONE OF the liabilities
| OF the bank reduced by $4,000 the loan Is
| not esteemed part Of the assets and the matter
| is one OF vital interest 10 the banks deposilOS.
AS Mr.. Ransom owns nearly all the capital STOCK OF
the Bank OF Deposit. the financing Of this loan will
concern only small number OF stockholders.
| WILL THE DEPosIToRs BE PAID IN FULL
| Notwithstanding the official Z" opinion Of the
| Clearing House Committee that ain all probability
the depositors would be paid In ful there are we'll
| informed bankers who extremely solictouS rs To-
the outcome Of liquidation OF the National Bank
Of Deposit The deposit liabilities OF the bank amount
! TO about $4,000 The other side Of the balance
sheet Is understood to show "cash assets ana due
from banks amounting TO about $500 600. although
some Of these accounts may be offset by others.
The bank did considerable business with jewellers
and members OF the drug trude. Notes OF these
customers, running for from thirty days TO four
months, form a lnrgc part OF about S1OOOoo OF assets
In the shape OF notes discounted. Although all OF
these notes may not be met at maturity IL Is con
sidercd by well-lnormed bankers that most OF them
| will be realized upon.
| Between $4OO 900 and $500 900 Of the assets. II
Is understood consist Of time and call loans secured
by produce and stocks and bonds The value OF 'h'S
item Of the assets difficult to determine The term
.cats and dogs" IL was said yesterday by one
banker who had examined part oil the collateral
might be- too strong II term to apply to the s"curl'
lies. But there many advances on STOCKS OF
manufacturing concerns scattered all over The country
whose value 1t is Impossible for New-f"rk bankers to
determine Some Of the securities may Yield small
rcturus nh reallzatious but others. II Is said may
caniuand confidence LII