Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-27
MEXICAN BANK CLOSES
BANKING COMPANY DECIDES
ON RECEIVERSHIP.
Failed to Make Clearing House Set
tlement-Nearly $3,5OO,OO0 With.
drawn During Run.

MEXICO CITY, January PA receiver
ship for the affairs of the United States
Banking Company, one OF the leading
foreign banking institutions of this CAPT
tai. was decided on at meeting of the
directors yesterday after the institution
had failed to open its doors for business
Depositors, among whom were many
women, and who represented many ma
tionalities, crowded to the doors when
notice of suspension was posted, as fol-
lows: by agreement of the board OF di-
rectors the United States Banking Com
pany has suspended operations"
Later, at a hurried meeting of the di-
rectors, this substitute notice was posted:
For the protection of all creditors it 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 Tuesdays 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, and
con tinued.
reorganization under another presi-
dency, and we believe that our embar-
rassment win be only temporary"
Receiver to Be Named Today.
Mr.. Elsasser said that receiver for
the bank would be appointed today. and
that it would be impossible to give out a
statement until a thorough examination
of the books had been made.
Gossip about the streets placed the
amount of withdrawals during the run at
from two million to three million pesos
Inc bank statement January ] gave the
deposits as 100000 pesos. Most of the
stock Is said to have been held by resi-
dents of Mexico.
The directors disclaim previous knowl-
edge of the conditions which involved the
bank In its present difficulties.
The suspension is generally attributed
to the payment by President Ham of
drafts of the Mexico Packing Company
aggregating S2,OOO,oOO, and which were
not accepted in London. 1t is estimated
that nearly SJ00.0OO was withdrawn
from deposit during the run. 1t is said
that the bank almost met the emergency
but the failure of the Bank of Montreal
to provide more funds precipitated the
suspension.
The method by which money was OBJ
tanned by the Mexican National Packing
Company is alleged to have been by what
is known in banking circles as the kit
Ing" of drafts on London.
Americans Affected at Oaxaca,
OAXACO, Mex, aJnuary e7-What
amounts to a riot occurred here over
the closing of the Oaxaca branch of the
United States Banking Company. The
greatest excitement prevailed, as none of
the mining companies of the region can
meet their pay rolls until the bank
opens. American business interests are
seriously handicapped and almost every
American operator was caught by the
closing of the bank. Most of the pay
rolls of the companies were forwarded
yesterday, making the situation doubly
serious. Manager Strong declares the
bank is solvent and will reopen within
week.
Attachment Served on New York
Bank.
NEW YORK, January 27-An attach
ment for $4,000 against property of the
United States Banking Company OF Mex
leo City, Mexico, was served by the sher-
lift ON a local bank today The attach
ment was in favor of Robert l.. Dean on
an assigned claim of the Tehuantepec
Rubber Culture Company for money de-
posted with the banking company June
80, 1909. The failure of the United States
Banking Company was announced in