The sun., 1894-12-27
MT. MORRIS BANK SECURE.
PRESIDENT P1YNE BIPL<INs IT'S
CONDITION.

=-
pops,n.i Paper s,ruek or whs- Ne Tesss
ChsrRs-supsrinte.ss- Presto. esvs
che Ba.k Thirty Days s-s the I-pair.
re-t was Nsss Up-Nr. Prsste-'s Ac-
court OF His Ferso-si Ezs-i.stio-.
President william II. Payne Of the Mt
Morris Bank gave out the following statement
yesterday morning in contradiction OF the SEN
sstionsl report published In one of the morning
papers affecting the standing OF the Mt.
Morris Bank and the impairment Of It's surplus:
"The Mount Morris Bank having incurred.
under tho previous management, some losses,
chiefly owing to Tho universal depreciation Of
securities during the past eighteen months after
an examination tho stockholders, Mt my re-
quest, voluntarily contributed 81 %, 900 In cash
as surplus in order that possible question
might arise In regard TO the absolute security Of
the banks position. IL should DO added that
many of these losses are more apparent than
real and II ia confidently expected that with
the Improvement in general business the So
curities held by the bank will appreciate and
reach their former value.
The bank Is now In q far stronger position
than ever before, with large cash surplus on
hand in addition 10 q large amount Of securities
intrinsically valuable but not at present avails-
BILE. which we have therefore not counted ss
assets, but which in the near future will add
materially TO our surplus.
"The story a. printed this morning" said Mr..
Payne. "ls peculiar In that every faot likely to
cause run on our bank ives used In scare head
lines and the actual condition nf the bank To-
day was kept from the public. But you can sse
for yourself how the article is appreciated when
you view the crowd now making. not withdraw
ing, deposits
THE facts In q nutshell are these" continued
Mr.. Payne: when was asked to take charge
.As. -. Y a. - A.
paper held by the bank. and I ran my pencil
through s1os,ooo worth Of questionable securi-
ties. Before assuming charge asked. or rather
made demand. that the stock holders contribute
at least S100,00 as q surplus Tho papor had
cast aside doubtful l placed In q suspense
account and did not include this suspense
account in my report at all. Our stockhold-
ers, and some Of our large depositors, were
thoroughly conversant with the condition Of
affairs, and personally saw Mr.. Tappcn, Prcsi-
dent of the Clearing House, and he backed me
mp in my position. The American Exchange
National Bank. through its President Mr..
Clarke offered to stand ready 10 give 81 .000,-
900 II we needed IL should there bo o run on the
bank. Happily there was no run on the bank.
and we are now in position to meet any such
"T6e charge that made doctored or doubt
full statement Of the affairs of the bank In my
T.. report charge that ssnt
dent Preston had In any way connived At such
false report = ALSO most dastardly and without
foundation. Mr.. Preston gave us thirty days
within which to to ma make up any imRsir%ent that
ali he did, and our stockholders did the rest"
y .saSa saS ssY. nes pr,
dent p Of The a intuition" said Mr. Payne. M.
Payne added that Superintendent Preston was
sstisaed , that % a 10 pe. cent assessment would
"Tho paper struck out. !" said Mr.. Payne. "was
OF q miscellaneous character. We lost no money
through any loan associations. As an instance,
found two mortgages which had been running
three years on machinery that was In daily use.
Well. to my mind. after three years work the
machinery was certainly not as valuable ~ IL
was when the MORTGAGE was written. and 30
with many other securities that had deterior-
ated in value.
I'VE do not charge that the former President
and cashier wronged the institution. Theirs
was simply tho sin of bad Judgment"
The following quarterly report was made on
Dec. 10 by President Payne:
RESOURCES.