New-York tribune., 1894-04-21

SHERMAN BANKS DILEMMA.
THE CENTRAL NATIONAL TO CEASE
CLEARING FOR 1T.

TO PERMIT CHANGE OF AGENT-REsULr
OF AN EXAMINATION OF THE SHERMAN
BANK-A LARGE IMPAIRMENT OF CAP
1rAL REPoRTED-BANK EXAMINER
JUDsoN BEGINS AN EXAMINATIoN.
The sherman Bank a State institution at NO
s74 Rroadway has lost the services of the BANK
which has been clearing its checks through the
Clearing House OF the associated banks. Inc
Clearing House Committee has refused TO permit
It to change its agent. and State BANK tx
amlner Judson has begun an examination ot the
affairs Of the institution. There Is strong coi'-
viction in downtown circles that the sherman
Rank will decide TO go into voluntary liquidation
Should this be done It Is believed that the de-
posltors will be paid In full. but it is n question
whether the stockholders may not suffer some
loss
The Sherman Bank recently concluded 10 fhaNe
the United states National Bank at No. 43
Wall-st It's clearing agent in place OF the
Central National Bank at No. 800 Broadway
The change required the approval of the Clear
ing House Committee. which is composed OF
Frederick y. Tappen. Of the Gallatin NauonaI
Bank: william A. Nash. Of the Corn Exchange
Bank. George F. Baker. of the First National
Bank; W w sherman. Of the National Bank
~ Commerce and Richard Hamilton, OF the
Bowory Bank All Of the members Of the com
mittce visited the Sherman Bank on Thursday
and spent several hours in examining its BOOKS
and accounts on finishing the examination
| the Clearing House Committee refused to allow
the United States National Bank 10 clear for the
Sherman Bank.
President Tappen chairman Of the committee.
said yesterday that the action Of the commit
toe was taken "on account OF the condition OF
the Sherman Bank" Mr.. Tappen refused 10 say
what the examination had developed or what
was tho condition Of tho institution. other MEM
bers Of the committee were equally retcent.
CENTRAL. NATIONALS Refusal
I.ato Yesterday afternoon the following formal
notice was received by the associated banks:
Central Np'isn2I 70 10, Bank
--,,s hank will cease to redeem checks and drafts
drawn on AMI made payable At the sherman Bank
~ this city. after the cearings OF Saturiy ilos..7'
April Il - = wv '
The action ~ the Central National Bank. ioI-
loving the action Of the Clearing House Com
,,,,.e is u,,cly 10 force liquidation OF the
affairs ~ the sherman Bank, as IT would here
after be- confined TO transactions over the
.,untc- Tho cxac. condition of the sherman
R.,nk ylIl NJ, b.. learned until Bank Examiner
1uds,n COMPLETES his examination, which was
| hoe,, Yesterday. Tho others II the bank were
o,nphotic in declaring that the institution was
r,.,.,o.tlv sound that rs capital was not I'M
/ r,i~cd But contrary impression as Z" the
! .ati,d exists in wcll-infprmed Wall stree CIT
/ cles Il is understood thai in making their eX-
/ animation on Thursday. the members 81 the
/ clearing House Committee crossed on from the
+ as.ets about $50 900 as bad debts and It Is
said tha, possibly 100000 NOR could be classcd
az extremely doubtful II these estimates are
approxinia,cd by the State Bank Examiner the
| conitaI - the bank may be found to be impaired
TO the cxtcn, of from 100000 20 $1,000
TIE MARCH STATEMENT
Tho l,s, statement ~ the bank when analyzed
bv financial experts yesterday. was fou"i 70
show a surplus of Jess than $4,000. instead ~ the
nominal surplus u $50 oOoo recorded in tho state
mcn, This result is reached by dcducting
S2l e6l . fpr furniture and fixtures ana S'lOo32
current expenses and exchange from the surplus
and undivided profits The sworn statement
of the Sherman Bank. dated March /. 1884,. was
as follows:
RESOURCES.
rns and discounts due from The directors $50 i+7 -
,u~ rom rus, companies s'a,e. and ,eo,.
,,. @f,'a' rom pr's,c t-o'''' esnk~r- and erot-
'r'' as per schedule So 2es 20
stock, and bonds, q, per scneiulc... iiis i; 90 %
y ioeal -ierder notes an clrrula,ns notes 4
cs.S sS'a"a' tenn. ,'". is nil, saa check. 50, ,.,
Oth.r Items carried as cash. aS per .,.,
sch'du'' '''''''''''''''''''''' ,-- 3olsS ~
curr-n, expense, .................. 'a2:. e sI
EN'N'h''' 100 ~
Furniture ana '"'"''' anu - q cGi -
$685. 80 n
LIABILITIES
capital paid IN. in -. s, ~
etirtlus fund ''"' ~
| t'niitidel profits VIZ: ., 10, ,n
| Discount ................''..'.'. "'y9a ~ ~
Oih"r prom" ''''''''''''''''''' 49, 1850 81
ruo derosl,ors rs follows VIZ: -oo
b.rs,sifs subject 70 check .F''l so
| Demand certificates ~ depost..... ~, ~
| cashiers checks Outstanilng..-... -2'N"
Total deposits "
$3.50 22i ~
The sherman Bank was organized IN 49, WIN
q ,ntd-tn couital OF 5000 600 and cash surplus
| ~ 500 600 It's first president was y. X. Satter-
| leo who has achieved some fame as an organizer
| nr small banks In 1898 Mr.. Sattcrlee was sue
| coded bv Charles f. Iulklcy. and IN last july
! Nr RullSlev retired I'm favor of Eugene y.
| Itnweu When Mr. Howell became president
| Ir lanes H. Parker, president OF the United
| states National Bank, who had been director.
| resigned with two or three other members oi
| thc hoard The United States Bank. which had
| hoor ring for the Sherman Bank. refuS"d 10