The San Francisco call., 1896-03-10

SAN JOSE, CAL, March 9.-The Com
mercial and Savings Bank of San Jose
failed to open for business this morning.
The following notice was posted on the
bank doors:
SAN JOSE March 9, 1885,
The Board of Directors of this bank have found
it advisable in the interest of all persons affected
that this bank suspend its business and go into
liquidation, which is therefore done.
The assets of the bank are largely in excess Of
its liabilities and in the Judgment of the officers
the demands Of all the depoSitors and creditors will
be paid IN full. ]. T. MCGEoGHEGAN, Cashier.
The immediate cause of the suspension
was the refusal by the institutions San
Francisco correspondents, Donohoe, Kelly
& Co., to honor q couple of its checks.
The bank had loaned so closely to the
limit that this action caused temporary
embarrassment, and liquidation was
deemed advisable.
The Commercial and Savings Bank is
one of the oldest in the city and among its
officers and in its directory are some of
the wealthiest and best.known men
of San Jose. Their integrity and
financial standing is deemed a perfect
assurance by every one that every
dollar in the institution is safe. The bank
has capital stock of 81, 900, 900, with $780,
600 paid up in United States gold coin.
Aside from this there was $255, 600 in the
surplus fund at the last annual meeting.
This has since been increased to $3.50, 900
and the bank has $780, 900 from this source
alone. The actual resources in all are
81, 100, 600 while the toual liza bilities are only
$6S6, 900. Thus it will be seen that all the
fa q Of L hO O
as well.
The officers are: B. D. Murphy, presi-
dent and manager; James w. Findlay,
vice-president; J. T. McGeoghegau,
cashier; Henry Philip, secretary. All
of these gentlemen are stockholders. Other
prominent men of the city are large stock
holders.
The bank went through the distress of
1893 without tremor. 1t simply needs
little time now, according to those who
know the inside facts. The officers of the
various banks of the city express utmost
confidence that the embarrassment is
merely temporary, and that the
depositors will be paidI in full and
the stockholders be out nothing. They
point to the great wealth of President
Murphy, and do not think the temporary
suspension of the bank will cause any ap-
prehension or excitement among the peo-
pie of the county.
J. w. Flndlay, vice-president of the
Commercial and Savings Bank, in an in
terview said:
"The bank will pay every dollar it owes |;
every dollar due, whether to depositors or
correspondents, will be paid in full.
We have been accommodating our Gus
toners with loans, and we have
which have caused the action taken
have been brought about by our
San Francisco correspondents, Donohoe,
Kelly & Co., refusing to honor couple of
our checks. This action was unexpected
and we were not prepared for it. This re-
fusal is due to a recent change of officers
in that institution. We are so closely
loaned to the limit that we deemed it best
to go into liquidation. There is not q
shadow OF occasion for any one to feel
alarmed.
"We have telegraphedI for the Bank
Commissioners and they will come at once,
as we understand. 1t is now expected
that by tomorrow detailed statement of
the affair can be given the public through
the Bank Commissioners.
Everything in connection with the
bank is absolutely square and straight.
There is nothing in any way wrong with
the books, its resources or accounts. Free
loans to our customers, and inability to
collect at once when our checks were re-
fused unexpectedly are the causes. We have
abundant resources in high-grade securi-
- 4f III
81 wish especially to urge depositors in
the savings department not to sell their
pass books. To do SO might be to suffer a
discount loss and it is foolish to discount
the deposit one cent as every cent will be
paid that their books call for.
''There is another thing which 1 will,
say in justice to the other banks of this
city: We do not owe any bank in San
Jose one cent. So our closing our doors
makes no difference to them since we
neither owe them nor they u.s."
ave have suspended payment not on
account of any lack of ultimate resources
to liquidate our Indebtedness, but because
of the lack of funds Immediately availa BILE
to meet demands" said Cashier J. T. Nc
Geoghegan. "This course was taken by
the officers of the bank not because
there has been any failure, but simply
to prevent a crisis that might lead to
failure and loss. We closed our doors
in order to prevent an occasion for forcing
us to the wall on account of lack of re-
sources. As far as the securities in the
present status of affairs are concerned,
there is no possible doubt that there is
more than once or twice over sufficient to
pay any liabilities. The action of the
Commercial Bank does not affect any
other bank in San jose"
Rush McComas, president of the Garden
City Bank, said: 'As fact it will be just
temporary difficulty. Mr.. Murphy owns
$3.50, 900 worth of real estate. l have
known his property, that lying
between Santa Clara and Mountain
View, for thirty years, and l consider it
worth at least $4,000. Then he has one
sixth interest in the great Santa Marearita
ranch in San Luis Obispo County. Nego-
tiations are now being conducted with an
English syndicate for the sale of this very
valuable property. He owns property also
| in Santa Barbara County.
"The president OF the bank is wealthy