The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-04-07
STATE TAKES IT.
The Borough Bank of Brooklyn
Closes Its Doors.
Institution Is Turned Over. to
Superintendent of Banks.
CAPITAL OF 100000.
With a Line of Deposits Ag-
gregating 81, 100000.
Second Failure. in the Island
City. This Week.

New York April 1.-The Borough
bank of Brooklyn closed it's doors to-
day and the Superintendent of banks
has taken possession of the institu-
TONS business. The bank has capt.
tai of 500, 900 with deposits aggregat-
ing over S2,000,000. B. r. Shears is
president Of the institution. This is
the second, bank failure in Brooklyn
within a week. the first being the I'm
ion bank of Brooklyn.
At the office of the state superintend-
ent of banks the following statement
was given out:
"A meeting of the board Of directors
of the Borough Bank of Brooklyn was
held at the office of the banking de-
partment, 81 Broadway. at $3.50 o'clock
last night, the meeting having been call
ed by President Shears.
{ After a conference with the super
iEtendent of banks regarding the unuS-
uaI demands being made on the, insti-
tuition at it's Eighth ward branch and
considering the character of the assets
for which the present management Is
not responsible, the board decided to
request the superintendent to take pos
session and thus preserve the best in
terests of all depositors.
Pursuant to the request and the pro-
visions of the banking law, the super
sintendent has taken possession of the
property and business of the corpora
ton.
mo further statement regarding the
condition of the bank will be made I'M
There has been no withdrawal Of
deposits from any other institution"
superintendent Cheny said that the
conditions attending the closing of the
bank were almost identical with those
which led to the closing of the Union
bank. AS was the case with the Union
bank, the Borough bank was obliged
to suspend during the panic of 1907,
and was reorganized later. The new
management was obliged to assume
liabilities which have been heavy
load, and the suspension of the Union
bank had a bad effect on the Borough,
which was known to be in the same
position.
The Borough bank closed its doors
in October, 1907, and on the charge
that the institutions funds had been
misappropriated, its president. Howard
Maxwell and its cashier. Arthur D.
Campbell, were indicted. President
Maxwell committed suicide a few days
later by cutting his throat.
President Shears Of the Borough bank
SAID: = @~--1
t"The effect of the closing of the
Union bank has been severely felt by
the Borough bank during the last few
days and showed itself in quiet but
constant withdrawal of deposits which
resulted in exhauSting the banks ready
cash. f-s.l-s
1.-THE banks assets which, it is be-
Heved, are more than adequate to pay
all depositors and stockholders in full,
we're to a great extent inherited from
the former management which. caused
its suspension two years ago. The as
sets are to a considerable extent in real
both in the borough of Brook
lyn and in the suburbs, large portion
of which is unimproved.
''The banks inability to market this
property which it held at the time of
and exhaustion of its cash
supply resulting from the closing of the
Union bank on Monday, explain the