The sun., 1908-01-31

Mr.. Sullivan furnished a list OF this col
lateral. showing Il % consist OF 1000 Davis
DAILY. 1000 Butte Coalition, II 800 United
Copper, 1000 American Ice Securities.
400 Italian American Trust. 400 Mercan-
tile National Bank. S2i Hamilton Bank
and 100000 Ohio Copper bonds. Mr.. Sui
Ivan estimated this collateral TO be worth
at that time tiIS,lS0. a. against his loan
OF S315 SIS. Some Of these stocks for which
there are any quotations have declined
since then while some have gone up. Some
seemed to be without market value. Mr..
sullivan. who was a director OF the Fam
ilton Bank had paper In that bank at the
time. OF which he was either the maker.
indorser or guarantor. OF the face value
just when the loan OF s29O. 900 to Mr..
Thomas was made 10 not known exactly,
but IL d said 70 have been about the time
OF the Heinze loan. In regard TO this loan
one OF the officers at the bank said yester-
dav
-Mr. Thomas's loan is secured by collat-
eraI that will pay il twice over Il is in no
way responsible for our trouble with the
Clearing House."
An attempt was made last week on the
part Of some Of Mr.. Thomas's creditors
70 enect an arrangement for the liquidation
IN friendly manner OF some OF his obtga-
tons, through means OF trustees, one OF
those named being Miles NJ. O'Brien. Mr..
AhOhao tlOhACI " do otAlu 70 nave DEOlll3SQ
some assistance. The plan is said to have
fallen through The officer Of the Mechan-
ics and Traders who spoke OF the Thomas
loan said that the bank had not taken part
IN those negotiations. Western Ice securi-
ties have formed a large part Of the collat-
eral Of Thomas loans that have come to
light.
There Is $4,000 Of funds belonging TO the
State In the Mechanics and Traders. This
amount is secured by canal Improvement
honda Ala az kha Rft1na - tha kaKs
urer, and II was said there yesterday that
the State would not lose q dollar. Some
months ago the bank had nearly e4OO. 900 OF
State funds, but. Treasurer Hauser has
been steadily reducing this amount.
A. &. Judson. one OF the State examiners.
was put in charge yesterday Of the main
bank at Broadway and Prince street. SUpt.
Williams got examiners enough together
TO put one in almost every branch stimuli
taneously. The last examination made
by the department was in October. 1t
was found then that there were loans out
staining 70 directors amounting TO nearly
81 900 900. but aprarently these were ex-
nained satisfactorily. Mr.. Williams did
account OF the bank. Accoriing TO the
last statement OF the banks condition,
made on December 10. il had deposits then
OF tlO, $4,000, as comrared with derosits
OF tls.so6,2OO on August ~ last. There
has been something OF a run on all of the
branches since December 10.
The statement attributed TO the bank
officers that the institution had $4,000, 900
OF gilt edged collateral up for the 81. .oOO, 900
Clearing House certifc9tes outstanding was
DISPUTED by an Officer Of the Clearing House
yester lay.
The value OF securities said one Of
the bankers who examined the Mechanics
and Traders offerings at the time Of the
panic, is their sale value. The securities
Of this bank were accepted at the time
with knowledge that a forced sale Of them
might not bring the 81. 900 loan pledged
against them. 1t was not time 20 inquire
too closely into the affairs Of supplicant
banks. We gave thom money on what
they onerei for the sole purpose Of pro-
tectiDg the general public. Otherwise
we were not Ia the least concerned over
tn 'ir affairs.
In our opinion it was preferable TO lend
81, ,OOO, 900 on securities Of the face value
OF B000.O0O, civiNT y margin in favor OF
sound banking, rather than to have the con-
ditiOn reverse or Tnlnimi1e1. But II must be
remembered that the loan was made three
months ago. We would have been glad
ch'rics and Traders men recall their Sc
cuririaS and nav of the lNan
The validity Of many Of these securities
was neve" dis utet. We sim ly didn't
know; The bank ha more than a dozen
bran hes and in all OF these branches we're
loans on mercantile pa er. The managers
OF tho branches undoubtedly knew the
7 60 10 TO whom they were lending the
money. The Clearing House go 10 did
not. for many Of them were men without
general commercial rating"
Concerning the tion OF the Clearing
House in demanding that the bank take
" its Clearing House certificates Clearing
House official said:
However the bank ofioers may feel
ah0 1t it, the fart IL thlt money can be
: bt lined ayain now and it did not seem
thas bank in good condition ought to
have any great trouble In taking up theee
certificates"
The bank was notified last Tuesday that
ID must tl',e up its certihcates The bank
offers tried to ~et helr on Wednesday. !
but there sa-eI to be an unwillingness
20 give any more hel, until there had been
an examination.
This was the statement made by the
bank on De omber 10. as conn ared with the
previous one
REsoURcRs