The daily sentinel., 1902-01-06
BANK SUSPENDS.
The Colorado State Bank Re-
mained Closed This Morning
W. T. Dowrey in Charge As
Assisnee--.The Sugar Company
Troubles the Primal Cause.

The news quickly spread throughout
the city and 1t was soon the general top
ic OF conversation among the business
men and in groups on the street
The reason the closing OF the bank
caused such extreme astonishment was
that there did not appear to be eny rea-
eonable reason why tho bank should be
iu difficulty. The general condition OF
business in this city was never better
than it is at the present time and the
people speculated greatly upon what
could have caused such failure. 1t
was generally conceded that no local
conditions we're responsible for the
banks condition.
1t soon began to be whispered about
that the failure in the running OF the
sugar factory the present year was re-
spopsible for the banks closing and this
speculation is given verif1cation to some
extent by the statement which ia given
b-low from j. f. Mcfarland, cashier OF
the bank.
The deposits Of the bank have ranged
during 1901 from $4,000 to $4,000,
and every one believed that business at
the bank was never better.
There have been many conflicting stor-
les upon tho streets, but it 10 believed
that Mr.. Mcfarland has given an out
line OF the causes below and tho people
can make up their judgment from that
statement.
The closing Of the doors of the Colora-
do State Bank is the second time in its
History. During the panic of 1888 the
bank closed it's doors At that time the
title Of the bank was The Fret National
Bank Of Grand junction. Whom the
bank again became solvent and opened
it's doors for business 4 change in name
was thought desirable Also because
the bank desired to operate under more
liberal laws than was permitted by the
national banking laws and it became
sta Q institution.
When the bank opened its doors to re-
sumo business the merchants OF the city
again pinned their faith to the bank. as
it had paid every dollar OF its indebted
neee and had behind it record OF hon
esty which engeDdered confidence and
respect
The affairs Of the bank, aside from the
unfortunate assum ption OF the burdens
of the sugar company, have seemed to be
and doubtless we're in most excellent
condition for the past year. The very
recent statements given the public of
the condition OF the bank shows that 1T
least 60 per cent of the deposits have
been kept in reserve at all times, which
may be considered conservative banking.
The hope expressed by Mr.. McFar-
land that the affairs Of the bank will be
! adjusted in three or four weeks will be
reechoed by every citizen OF Mesa coun-
ty.
STATEMENT BY ]. F. McFAnLAND.
The Colorado State Bank procured
$50, 10000 from the Hanover National
Bank OF New York for The Colorado
Sugar Manufacturing company. When
the notes matured the Sugar company
C ould not meet them, and it had given .
bill Of sale on it's output OF sugar to an
other bank. The Colorado State Bank
demanded that the assets OF the com.
pany, not covered by the bonds. be de-
livered to it, and that bills OF sale OF tho
personal property be made. This has
been done aud the bank is now tho own
or and in possession.
The action taken by the Hanover Ma
tional Bank to collect this Indebtedness
was OF such a nature that, in order that
all depositors might have fair treatment
and that the New York bank might not
have an advantage over them, it is deem
ed best to temporarily suspend the bank.
The suspension should not be longer
than three or four weeks. Those who
are indebted to the bank need not fear
that harsh proceedings will be instituted
against them. The inconvenience is to
be regretted, but the action was taken in
their interest.
Because Of internal disssnsions In the
Sugar company there was no course to
be pursued other than the one adopted.
A plan Of reorganization was being Of
fected in New York when the present
crisis caused my immediate return to
Denver. Nothing OF . satisfactory ma
ture was done In Denver and stringent
measures were taken by the bank.
About this trouble tho public will not
be interested, but l am constrained to
say that bad faith has been shown to
marked degree by part OF the board OF
directors. Geo. b. Nagle, the president,
has discharged feithfully the personal
and official obligations imposed upon
him.
shall proceed with the work Of the
reorganization Of the company and
there 10 every prospect Of . successful
termination which will insure the reten-
tioa Of the factory, and which will mako
the property Of sufficient value 70 enable
the company to pay the bank In full in
very short time. Every energy will be
devoted 10 the work, and l desired the
co operation Of those interested when.
ever occasion may require.
Now that shs bank owns and has pos
session Of the property. the company
may, at it coming meeting in Denver