Omaha daily bee., 1902-11-15
BOSTON BANK CLOSES DOORS
Central National in Hands Of Comptroller
of the Currency,
DEPoslToRs NOT LIKELY TO SUFFER
Failure n Caused by Losses that Were
Suffered Some Years Ago
and from Inability to
Recuperate.

BOSTON Nov. 14.--The Central National
bank Of this city did not open for business
today, the comptroller of the currency hav-
ing ordered the bank examiner to close
its doors and take charge Of its business.
The closing OF the bank is said TO be
due to excess loans and a lack of quick
assets. An appeal for aid was made to the
Boston Clearing House association, but the
committee did not deem it advisable to
assist the bank.
The bank is among the smaller institu-
tions OF the city. It was organized in 1873
with a capital of $500, 900. It's deposits ag-
gregate $2.7OO, 900. and it is believed that
this amount can be paid in full without
an assessment on the stockholders. Otis
H. Luke is president and J. Adams Brown
cashier.
Just before 9 o'clock today the following
notice was posted on the banks doors
"Closed by order of the comptroller OF the
currency"
Inquiry at the bank ELECTED the informa-
| tion that the comptroller had ordered Bank
Examiner Neal to take charge as temporary
receiver. No one could be found who had
authority to discuss the condition of the
| bank.
Cause of the Failure.
The failure Of negotiations for the Eliot
National bank to liquidate the Central Ma
| tional is understood to have contributed
to the failure, as we'll as the fact that the
bank never fully recovered from a blow It
received twenty years ago, when, with the
| Pacific bank, which failed at that time, it
was involved in the collapse of the Leba-
| bon Springs railroad in Vermont. Tho
Central Bank then lost $350,OO0 and an as
sessment of about 100 per cent was made
| atOcEho1doro nd dity{d do
were paid for thirteen years.
The failure of the bank showed that the
| liquidation proceedings were not progress
| ing favorably. A meeting of the Central
| bank stockholders had been called for De-
| cember 10 to approve the plan for the Eliot
| National to take over the business. Upon
investigation, however, President Burrage
Of the Eliot bank and his board of direc-
| tors refused to accept the assets of the
Central bank as security for any guaranty
of the $2,7OO,OOO deposits. .....
Resources and Liabilities.
BY the last report to the comptroller of
| the currency the banks standing was as
follows:
Resources-Loans and discounts, $3,07s,-
| 7s6; overdrafts S40,625; United States
bonds. $3.50 900; premium on United States
bonds, S16, $50; stocks, securities and real
estate, $780, due from banks, 1885,, 1863;
exchanges for olearings. S142, ,796; specie,
$16O1S8 legal tender notes, 5000 900; re-
demptlon fund, $17,750
Liabilities-Capital stock, $500, GOO; sur
plus fund, 500, 900; undivided profits, S129,-
633; bank notes outstanding, 349, 800;
due to banks, etc, $917,721; deposits,
&2,7OO.OS5 United States deposits, $4,000;
bills payable. $465,9o0
| ha 10
today that It would advance to depositors
of the Central National bank so per cent Of
their present balances in that institution.
The state Of Massachusetts was a depos-
itor in the bank, The state treasurer says
no inconvenience will result.
Comptroller Makes Statement.
WASHINGTON. Nov. I4.-A statement
concerning the closing Of the Central Ma
tional bank Of Boston was issued at the
comptroller of the ouPTenoy's once today.
1t says the bank was closed by direction
of the acting comptroller of the currency
as a result of conference by telephone
late last night with Examiners Neal and
Ever OF Boston,
The acting comptroller has appointed
William h, Neal as temporary receiver.
The statement Peoitea that the bank was
examined September II last and, while the
examiners report showed losses equal to
surplus and undivided pFoats then on hand,
! there was no evidence of insolvency,
Certain conditions were then imposed
upon the bank with a view to providing
for losses and securing the Dank against
further loss on it's loans, Later it was de-
termined to place the association In VOL
untary liquidation by having another bank
In Boston take oyer it's assets and assume
It's deposit liabilities, and 1t was thought
that arrangements to this end were being
successfully carried out until the acting
comptroller received a dispatch from Rx-
aminer Neal yesterday that efforts to Iiqui-
date had failed,
The failure, the statement says. 10 due
to losses sustained, There is no apparent
dishonesty on the part of the ofacera of the
bank so far as the records Of the COMP