Evening star., 1901-07-19
RUSSIAN BANK SCANDALS
PANIC MAY RESULT FROM OVER
CONFIDENT INVESTMENTS.
Suicide of Il Capitalist Leads to
Liquidation at an Iron
Center.


Correspondence of the Associated Press.
ST. PETERSBURG, Thursday, July A.
Owing to his connection with the Russo
Chinese Bank and to the supposed friendly
relations between him and the finance min
lister, VI. de Witte. and on his own ac-
count, Banker Rothstein has been the OBJ
ject of many attacks during the last dec
ade. His enemies finally planned an as
sault upon him as director and manager of
the International Bank. which was known
to have suffered severe losses in connec-
ton with Mariupol and NicOpol enterprises
and other industrial undertakings. partic-
ularly in South Russia. The losses of the
bank We're greatly exaggerated. Reports
We're circulated that twelve or fourteen
million roubles had gone to the bad and Mr..
ROthsteins management was made the OBJ
ject of the most virulent attacks. An in
fiuential minority, at the annual meeting
of the shareholders, declined to ratify the
report for 1900 and permitted the publica-
ton of speeches attacking Mr.. Rothstein
in the local papers
This party sent a deputation to the minis
ter of finance. implOring his intervention
The result of this action is given in re-
port by Sergei 5. khruleff. president eXecu-
tive council In this report NJ. khrulef
SAYS the bank has exceeded the strict
bounds of it's statutes in investing import
ant amounts in newly-organized industrial
undertakings. but that the integrity of the
will not be impaired thereby.
Panic May Ensue.
The promise is made that from now on
everything will be done to reduce gradually
the unguaranteed paper, to diminish indus
trial credits, and TO close all uncertain ac-
counts
1t is scarcely matter of doubt that
many other banks in Russia have taken on
mere industrial ballast than they can con-
veniently carry and 1t would be surprising
if the financial crisis which has already
lasted mOny months should end without
the disclosure that they are in no wise bet
ter off than the International, or that their
management has been one whit more con-
servative. The more pessimistic think a
more or less general smash-up quite within
the proba bilities.
Suicide of Banker.
The tragic death by suicide of A. X. Alt
chevsky. president of the chamber of COM
merce at Kharkoff has precipitated q liqui-
dation in that iron center. After a quarter of
"A century of activity his bank. the Khar
kOff Bank of Commerce, has been forced
into bankruptcy. The capital amounted to
23.0.DO roubles, and the shares were
quoted before VI. Altchevsky's death at
10 1t held 5.403. so rOubles of deposits
of the Kharkoff Bank of Agriculture and
private deposits amounting to 100000
roubles. The claims against the bank will
probably wipe out its entire assets The
newspapers estimate the loss at 100000
rOubles.
The minister of finance has forbidden all
agricultural banks from depositing with
any institution except the State Bank.
OF course, the Kharkof Agricultural
Bank must also iqudate.
The finance ministry has decided to lay
petroleum pipe lines the entire distance
from Baku TO Batoum. The present line
eDhS ahO hal her hes VI
points. The pipes will be made exclusively
in Russia.