The Providence news. (Providence [R.I.]) 1891-1906, 1905-05-26
LOCAL BANKS
WILL LOSE
MONEY

Boston. May 2s.-seventy-one banks and
trust companies, most OF them in Massa-
chusetts. but many located in various
parts Of the country are among the cred
itors OF the banking firm OF Burnett,
Cummings & CO. OF this city. which yes
terday filed a voluntary petition In bank
ruptcy I'm the United States district court,
with liabilities placed at 81, 4.3GS.
The assets are stated TO be uncertain.
The creditors have been given 10 under
stand that they will not exceed 100000 "
indeed they prove 10 be OF any value
whatsoever. The bankruptcy petition is
the heaviest fled in this district since the
present bankruptcy law went into effect
In Massachusetts.
Attorney j. T. Auerback counsel for the
bankrupt firm. said that the cause OF the
failure was the building and financing ~
the Concord and Boston Street Railway
company the Mddleboro, Wareham and
Buzzards Bay street Railway company,
the Lowell and Boston Street Railway
and the Bristol County railway company.
These roads were In thinly settled dis
tricts and were unable 10 make suitable
connections with roads running TO Boston.
The four companies were placed in the
hands OF receivers and thereupon the
notes given by them became valueless.
Furthermore. the Massachusetts Securi-
ties companys bonds which were secured
by obligations Of these electric railways
lost their value and entailed losses upon
the firm.
MANY SAVINGS BANKS.
The secured creditors number 81. and
the unsecured 81. There are 80 savings
eanks in the list OF creditors and l3 Mas
sachusetts national banks. II Is under
stood that the securities given the banks
for their loans were bonds OF the Massa-
chusetts Securities company which. in
turn. were secured by notes OF the bank
t-eleetF4e-Fa4 HIVE ss.-----
one OF the largest creditors is the Wor-
cester Five Cent Saving bank with a
claim OF $4,000. other bank creditors are
the Danvers Savings bank for S26,72l. the
Millbury Savings Bank of Millbury for
s26,660. the City National bank OF Lynn
for s1e, 7S9. the Newton Savings bank for
sS5 l54, and the International Trust com
pany OF Boston for A4s95. All these
claims are in the secured list
Among the other large claims. most OF
them unsecured, are the Lynn Five Cent
Savings Bank. s2l. .S99: the National Bank
OF the Republic. $1,000: City Savings
Bank OF Providence. r. l.. S20.711; Brock
ton Savings Bank Brockton, H1.l2l; South
Weymouth Savings Bank South
Bank, Kingston, r. l.. $4,000 National
Mantle Bank. Westerly. r. l.. s92S6.
Among the Western institutions affected
are: The Chicago Savings Bank, Chicago.
S3039; the state Savings Bank, Ann Arbor.
Mich, sl45; the Western Trust and Saw
lngs Bank. s11 sos. and the State Bank OF
Chicago, Chicago. 1925
The largest Individual claim is that OF
Frank G. Wood OF East Boston for s43, Oc0.
c. G. Moffett OF Rockland. Me. has a
claim for ,S22 666.
WERE CHARGED OFF.
OF the claim OF the City Savings Bank
OF this city. given as S20,7l1 Edward p.
Metcalf. president OF the old National
Bank. states that the City Savings Bank
went into liquidation a year ago. and the
old National took over its deposltors The
Burnett & Cummings account, was an old
one and had been charged of long ago II
consisted Of street railway notes that had
all been taken care of.
William Segar the former president OF
the National Mantle Bank now absorbed
by the Industrial Trust, states that the
Burnett a. Cummings account was an old
one and had not been considered as ar
asset when the bank went into liquida.
ton. and the failure OF the firm would
not affect the assets Of the concern I'm the
least
Oliver watson q director in the Kings
ton Savings Bank, says that that concern
was not interested directly, but as in
eerscr- and would make no further state
ment in regard TO the claim OF the Kings
ton bank