New-York tribune., 1910-01-27
RECEIVER FOR BANK
e. S. Banking Co., of Mea7co
City, Closes Its Doors.

Mexico City, Jan. 2s.-A receivership for
the affairs Of the United States Banking
company, one OF the Leading foreign oank-
Ing institutions OF this capital was decid-
ed on at a meeting of the directors to-day
after the institution had failed to open Its
doors for business. This notice was posted
by the directors
For the protection of all creditors II has
been found necessary to suspend opera
tons until further notice.
NJ Elsasser. vice-president OF the bank,
said that the action OF the directors was
taken because the bank did not have suf-
hcient money on hand TO reimburse the
Clearing House for Yesterdays business,
and therefore could not properly receive
deposits. He believed that the bank had
more than sufficient assets to pay every
legitimate obligation. he asserted.
The direct cause of the suspension was
the extending OF too large a line of credit
10 the Mexican National Packing Com
pany; drafts aggregatine more than A.
100000 pesos owed by this firm went 10
protest last week. 1t was reported that
although the indebtedness of the packing
company had been a source of worry to
the bank for some time the transactions
had progressed TO such point that they
believed they could not do less than to
allow the debt to increase from day to
day on promise of an early settlement.
The failure of the company to meet any
part of the obligation when the funds we're
badly NEEDED brought about the crisis.
The directors discaim previous knovl-
edge OF the operations which involved the
bank in its present difficulties The meth
Cd by which money was obtained by the
Mexican National Packing Company was
said to have been by what is known in
banking circles as the kiting' of drafts
en- London. Operations in the nature of
exchange were not reported to the direc-
tors. as were loans
President Ham was at a sanatorium to-
night. where he went TO recuperate He is
said to be on the verge of nervous pros
tration. He had been advised by the di-
rectors not to leave the city John w De
Kay, president of the Mexican National
Packing Company, is thought to be In
London.
Branches of the United States Banking
Company in Oaxaca AMI PARA also sus-
pended to-day.
Oaxaca Mexico. Jan 26.-What amounted
to riot occurred to-day over the closing
of the Oaxaca branch of the United States
Banking Company, The greatest excite
r1ent prevails, as none of the mining COM
panies of the region can meet their pay
rolls until the bank opens. American busi
ress interests are seriously Handicapped,
and almost every American operator was
caught by the closing of the bank.
The failure of the United States Banking
Company has been regarded for several
weeks as probable by bankers of this city.
as the company has lately not maintained
credit balances of the amount insisted upon
by the two Clearing House banks which
are its New York correspondents. and local
bankers have recently refused to honor its
drafts upon London. The companys small
credit balances with the correspondent in
sttutions here were attached yesterday by
creditors
The United States Banking Company has
deposits of $4,oo0o0o, Mexican Its president,
George !. Ham. Canadian by birth. has
lived many years in Mexico. where his frst
employment as a locomotive fireman.
He was thrifty. and always had money on
hand with which to cash the pay checks of
fellow employees and to make advances on
their salaries. and he soon had accumulated
enough money TO open small cigar store.
combining with -tts-rnanas scn1ent tno-ai
counting operations for the railroad en-
ployes. After a while he abandoned the
cigar business and opened an offiCe as
dealer in American exchange, and finally
became a banker and president of the
United States Banking Company.
The troubles of that institution are said
by bankers in this city to have been due to
overextension OF loans in connection with
the Mexican National Packing Company.
That company. which has a capital of s30.-
0600n. Mexican was incorporated in New
Jersey in 1902 the United States Packing
Company, the name being changed in 1906