The Savannah morning news., 1902-11-15
CENTRAL BANK FAILS.
One of BOston's Biggest Financial
Institutions Goes to the Wall.

Boston, Nov. 1.-THE Central Ma
tional Bank, a small institution when
compared with other Boston banks, did
not open its doors to-day because of
an order from the controller of the
currency, who had placed National
Bank Examiner w. E. Neal over it as
temporary receiver. Impaired assets
is given as the reason for the failure.
and the bank is closed for good. The
incident did not produce any furry in
financial circles.
Many banks came to the relief of
the Centraps deposftors, the National
Shawmut offering to advance so per
cent. of their deposits. Director Moses
w. Richardson of the bank tonight
said that depositors probably would be
paid in full, and while the stockhold-
ers may be called upon for a quick
assessment, in the end they will lose
nothing.
Boston, Nov. 1.-THE Central Ma
tional Bank of this city did not open
for business to-day, the controller Of
the currency having ordered the bank
examiner to close it's doors and take
charge of it's 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 in
situations of the city. 1t was organ
lied in 1873 with d capital of $500, 000
Its deposits aggregate $2,750,O00, and it
is believed that this amount can be
paid in full without an assessment on
the stockholders. Otis H. Luke is
president and James Brown cashier
The failure of negotiations for the
Eliot National Bank to liquidate the
Central National is understood to have
contributed to the failure. A meeting
of the Central Bank stockholders had
been called for Dec. 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 directors, re-
fused to accept the assets of the Cen
trail Bank as security for any guaran-
tee of the s2,700,000 deposits.
Washington, Nov. lathe following
statement was issued at the office of
the controller of the currency:
1.-The Central National Bank of Bos-
ton, Mass, has been closed by direc-
ton of the acting controller of the
currency, as a result of a conference by
telephone late last night with Exami-
ners Neal and Ever of Boston. The
acting controller has appointed William
E. Neal as temporary receiver.
''The bank was last examined on
Sept. IL, 1902 and while the examiner
report showed losses equal to surplus
and undivided profits then on hand,
the banks assets seemed to be ample
to meet it's liabilities to creditors. Ger
tain conditions were then imposed
upon the bank with a view to providing
for losses and securing the bank
against further loss on its loans. Later
it was determined to place the asso-
citation in voluntary liquidation by hav-
ing another bank in Boston take over
its assets and assume it's deposit LA
bilities, and it was thought that ar
rangements to this end were being sue
cessfully carried out until the acting
controller received a dispatch from
Examiner Neal yesterday that efforts
to liquidate had failed. After a con-
ference by telephone with the exami-
ners, who stated that a receivership
was unavoidable, the bank was ordered
closed.
1.-THE failure is due to losses sustain
ed. There is no apparent dishonesty
on the part of the officers of the bank
so far as the records of the controller S
Office show"