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BUFFALO BANK CLOSED THE COMPTROLLER OF THE CURRENCY TAKES CHARGE. City Bank Will Not Open for Business To-day-Considered the First Commercial Institution in the City--CarFying of the Paper of a Number of Manufacturing and Lumber Companics Causes the Trouble. Buffalo, June 30.-A. notice was poston the door of the City bank to-day at the bank was in the hands of the mptroller of the currency and that it buld not open its doors for business -morrow morning. The bank officials refused to-night to make a statement concerning the failure. The members of the board of directors profess ignorance of the causes that led to the declaration of Comptroller Dawes and President Cornwell of the City bank denied himself to everybody. The public has had no intimation of he bank's weakness and in financial nd business circles the opinion that he institution was in a prosperous nancial condition was general. The ty / bank has a large number of deeltors owing to the fact that it was /first commercial bank in the city offer interest to depositors on monthbalances. It catered to this class of customers and did a large collection usiness with eastside establishments. The directors of the bank while proessing ignorance and surprise at Comptroller Dawes' order, gave the inormation that the bank had been carrying the paper of a number of manuacturing and lumber companies for a Long time. These accounts were obected to by the federal bank examiners n several occasions and are still outstanding. James G. Barry, assistant cashier of he bank, who has been acting for John R. Boag, the cashier during the latter's absence owing to illness, said to-night: "The appointment of a receiver for the I City bank is a great shock to me. never suspected that anything like this was coming. From what I know of the bank's business it is perfectly solvent. In fact its business has been on the increase. During the last month or two there has been an increase of nearly $1,000,000 in deposits. We held the accounts of a large number of PanAmerican concessionaires and contractors." "It is true," Mr. Berry was asked, "that this failure has been brought on by the withdrawal of Pan-American accounts? "No: it is not true. There has been no withdrawal of accounts." "How do you think the depositors are likely to come out?" "They will get every cent of their money." "The comptroller's statement says his action was taken becase of injudicious loans?" "I am surprised at that. Some of our largest loans have been running for months and I have always considered them first class."
