Every evening, Wilmington daily commercial., 1922-02-21
ELKTON'S CLOSED
BANK MAY PAY ALL
ITS OBLIGATIONS
Continued from paxe /

up oil night with him. His condtit II
today Is very discouFaging, and tho
attending physician, Df. Bates. has told
the members OF the family that there
are no hopes whatever for his ulti-
mate recovery. Tho patient Ia gradu-
ally wasting away, and II will only be
n matter OF time until he is dead, the |
physician said.
Hugh w. Caldwell. superintendent
OF the public schools, today denied
reports that the Cecil county school
teachers have not been paid, because
OF the school funds being tied up In |
tho bank. The salaries have been pale,
he said. from funds other than thel
$50, 900 that Is held by the Second Ma
tional.
The county commissioners, also.
have paid the countys debts from
the regular funds that are being. re-
ceived daily, such as taxes, etc. George
Benson, county treasurer. stated to-
day that 400 OF the county's money
is In the bank. OF this, $4,000 is the
sinking fund for the reduction OF
county bonds. A considerable amount
of the local postoffice's. funds are also
/
is not being made public.
/ A peculiar fact In connection with
the deposit of the county's funds. Il
is reported, is that protective bond
or receipt for the amounY hns never
been received from the officials OF the
financial institution, according to the
rumor. The officials OF the bank had
kept postponing from time TO time the
issuing of such paper until the bank
was closed and 1t was too late, 1t Is
said.
The county funds were deposited In
the Second National Bank In accor-
dance with a ruling which compcls
Ne officials to place the money In. the
instNu paying the largest rate OF
interest. A rate OF 5ls per cent, the
highest paid in Elston. was paid by
; the closed bank.
: States Attorney Warburton said
today that he was as much surprised
as anyone else when the doors of the
: bank were closed. While he had no
nowledge OF the details OF his faith
! ers's business. he refuses To believe
| that any questionable transactions
, were carried on, as was reported. He
: said that his fathers condition has
, made 1t so far impossible to confer
with him regarding the banks affairs
The matter OF rediscounting notes
that were first taken by the Second
National Bank is proving a perplex-
ing matter for II. Gordon Ffnney, the
receiver named by the Comptroller OF
the Currency. 10 straighten out.
Today, Giuseppe Montani, a small
business man, appeared at the bank
and asked Receiver Ffnney what h,
could do about a note which had been
!, given by him to the Second National
: and resold to another bank in this
town. 1t seems. according to Mr.
Montanl. that he had securities. som,
of them Liberty bonds. in tho bank
totaling $400. When he wanted tC
borrow some money for a short periot
= he put note in the Second Nationa
. Tor $3.50. Since the bank has closed
MIR. Montani has received notice
from another bank in the town stains
= 1t has his note for $3.50. which is due
The merchant asked Receiver Fin
' ney what he could do. He said: ="
have money in securities left In tp
" bank to cover more than the total o
the note which is due Mr.. Finne,
explained that II was one of tn
exigencies of financial transactions
lthis redlscounting of notes.
- If the Second National is able {
pay its depositors dollar for dollar
i Mr.. Montani will get his securitie
r o. X. and will be able to meet hi
n note in the other bank.
Another case that has been mucI
talked about here Is that OF Newark
Delaware man. who claims to hav
bought a mortgage from Preslden
;, Warburton and from him received in
: terest on that security. Later, he sait
according 10 report. he was inform
= ed that the mortgage had been paid I
- Mr.. Warburton. The man is Georg
; Casho. About two years ago. he sayi
he bought a mortgage for s2,s0o froI
Mr.. Warburton. The president of I'll
bank, he says, paid him the interes
- regularly until last December. The
, came the closing Of the bank.
," A few weeks ago, this story goe
he met the man against whom tn
4 mortgage was filed, on the street. II
= said TO the man: Are you HIT
y short of money? I haven't gotten m
L interest for the last three months
e The man replied that he did not ow
Il any interest. but had paid Mr.. Wal
burton the amount of the mortgage
full.
Casho Retains Counsel.
on Casho has retained Albert d. Macl
C. ey, an Ekton attorney, who is
he member Of the Maryland Legislator
ct and who is now in Annapolis. A,
o. cording to information received. NJ
r. Mackey has made a search of the re'
ords OF Cech county and has learnt
that when President Warburton so
Casho mortgage there was no recoi
n OF the transfer made at the count
.is clerks office at that time.
rt 1t is said that the Casho case
no only one of several other legal cas-
of very much similar in character.
One of the small business men wi
I, claims that the closing of the bar
has hurt his business is H. c. Nuttin
According to Mr.. Nutting he has t,
~ patrons who had deposits in the bar
and are now unable TO meet bills d,
HIM (Nutting), because OF the u
settled conditions at the bank.
1t is common talk today that c.
johnson OF Aberdeen, who was t
cashier Of the Second National, h;
~, several months ago told Preside
he Warburton that he did not like {
ho character of some of the paper carri
-. by the bank. According TO town go
sip, Mr.. Johnson is said 10 have to
President Warburton that he wou
not handle any more of sucn paper
1t is said about that time suppos
led bad notes and papers disappear