Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-04-19

Works Forced to Execute Mortgages-
Run On n Savings Bank Caused by the
Difficulty. Results in Closing the Bank
All the institutions Alleged To lie Per-
fectIy Solvent.
LANSING, Mich, April 19.-There has
been a considerable furry of excitement in
central Michigan during the past two
days caused by the embarrassment of the
Lansing Iron and Engine works and the
Lansing Lumber company, two leading
manufacturing firms of this city. a crI-
sis has been reached and the institutions
named have filed mortgages upon their
real and personal property to the amount
Of Sol, 600 in favor of Orlando NJ. Barnes,
who has Endorsed a large amount of their
paper A feeling of insecurity at once
arose among the depositors of certain
banks which have been calling in the
paper of .;he companies mentioned and a
sudden and wholly unexpected run was
made upon the Central Michigan Savings
bank.
Forced to Close Its Doors.
After meeting all the demands of deposit
ors for severol hours, Cashier Bradley, up
on the advice of State Banking Commits
sioner Sherwood, closed the doors of the
bank. The state banking commissioner is
now in charge. The managers of the bank
maintain that the institution is perfectly
solvent and in few days its doors will re-
opened. They say that no bank in the
state could be expected to withstand run
of this kind, as any one familiar with the
business knows how impossible it would
be for any bank to pay all the depositors
within a few hours. The utmost confidence
in the ability of the bank TO proceed to
business is expressed by citizens and bust
ness men generally, many of whom con-
tinued to ma their daily deposits while
the run was in progress.
Business Men Very Nervous.
There is, however, considerable nervous
ness on all sides and Lansing has never be-
fore, even when James NJ. Turner failed,
witnessed such a financial CONFUSION o.
F. Barnes is the president of both the
Lansing Iron and Engine works and the
Lansing Lumber company. Both are eN-
tensive manufacturing concerns and the
latter has large interests at Dodge and
Clare, in Clare county, Mich. Hon. Or
lando NJ. Barnes is the father of President
Barnes, of tbs institution, and a gentle
man of extensive wealth, rare business eX-
perience and strong influence. In 1873 he
was the Democratic candidate for governor
of the state and at present is n member of
the central board Of prison inspectors.
Assets Double tie Liabilities.
He became indorser upon the paper of
the institutions of which his son is presi-
dent and the latter becoming involved the
mortgages were filed and the property
placed in his hands as the best possible
luton of the difficulty. Mr.. Barnes now
has in his hands as security for the debts
of these two companies upon whose paper
he is indorser available property aggre-
eating in value from 81 GOO, 600 to 81, $780,
OOO His own personal estate is worth in
the neighborhood of 81 100000. The liza
bilities which he assumes are not thought
to exceed $500, 600, which constitutes his
entire Indebtedness. The largest portion
of the paper upon which Mr.. o. NJ. Barnes
is indorser is held by the banks of this city,
the most being held by the Central Michi-
gan Savings bank. which closed its doors.
The Savings Bank Perfectly Solvent.
From a hasty examination of its affairs
by Bank Commissioner Sherwood, that
gentleman expresses the belief that the in
stitution is perfectly solvent and will be
able to meet its obligations without per-
manent embarrassment The other banks
of the city are considered perfectly safe and
only limited amounts of the Barnes paper
are held by them. Unless the depositors,
who have no just reason for alarm, persist
in losing their heads and precipitate an
other RUIZ no further trouble is expected.
Report About the Missouri Pacific.
ST. LOUIS, April 1g.-The Chronicle
prints a sensational story to the effect that
the Missouri Pacific railways approaching
a receivership or a complete reorganization
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