Evening star., 1908-01-19
BANK OF CANADA OUT
LIQUIDATION OF BIG INSTITU-
TIoN-No PANIC.

TORONTO, January 1S.-When custom
egs of the head Office IN Toronto and
seventy-six branches throughout Canada
called at the Sovereign Bank OF Canada
today they found other banks in posses
sion, as a result OF the transference Of all
business OF the Sovereign Bank to the
Bankers Association Of Canada, conse-
quent upon the decision Of the Sovereign
Bank to go into liquidation. There will
be no interruption to business so far as
the Sovereign Banks customers and de-
pOsitors are concerned.
The branches of the bank have been
assigned to different banks. each OF which
will take charge Of the accounts in the
particular branch with which 1t was en-
gagged. The customers will present their
checks or pass books as usual and they
may either get the cash or q certificate
Of deposit from the particular bank that
is in charge.
The only point in which serious difficult
ties may be created is in the case Of bor-
r0wers who have been extended line Of
credit by the bank. The present condi-
ton of the financial market may render 1t
extremely difficult for some firms to place
their loans, and rumor is busy with the
names of several that smay be forced to
assign.
Plan to Obviate Panic.
From early last evening until the early
hours of this morning meetings were
held in the head offices of all the banks In
the city to discuss the situation created
by the liquidation OF the Sovereign Bank
The officials OF those banks which are in
terested in the financing of the various
branches Of the Sovereign Bank were en-
gagged in making their arrangements for
today, in order to obviate any panic which
might possibly follow the announcement
that the Sovereign Bank was going into
liquidation.
The heaviest shareholders are the
Dresden Bank of Berlin. Germany, $7O0,-
600; Thomas w. j. Joyce and w. A. Mer-
rick of New York, $25O.OOO each. and Will
lam w. Van Week of New York, 500 900.
Presidents Statement.
President Jarvis. explaining the causes
that led to the liquidation today, said:
'Other chartered banks have been able
to demand payment of commercial and
other loans but the Sovereign. beginning
business In the boom time, was not able
to pick its customers as we'll as the older
institutions.
again. assets of the bank which a
year ago were looked on as sound in
vestments have seriously deprecated
Som. bonds of United States corpora
tions have become almost worthless. ow-
ing to default of interest or the shrink
age OF values through the recent remark
able financial stringency in the United
States. These are largely causes for
the liquidation"
Dispatches from different parts OF the
provinces show that the banks liquida-
ton created little excitement. At Chat
harl a small run was made on the bank
but all checks were promptly honored and
the stir soon subsided.
Bank Action at Montreal.
MONTREAL: January 1s.-It is an
nounced in connection with the liquidation
of the Sovereign Bank that the Montreal
Uptown Branch and its business has been
taken over by the Bank of Toronto and
that the main Office in Montreal has been
taken over by the Bank of British North
America.
The depositors will be paid in full. but
nothing definite can be said In regard to
the shareholders.