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Peon Trust Company Assigns. PHILADELPHIA, Pa., May 8.- - The Penn Trus: Company assigned this morning. It la really a part of the Spring Garden National Bank, but is said to be solvent, an assignment being simply for protection spainst a run The capital stock of the bank is $750,000, full paid in, and by February's statement the reserve fund amounted to $150 000, The Banks' deposite amount to $2,000,000, and the city of Philadelphia suffers to the extent of $150,000.
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ANOTHER FAILURE. The Spring Garden Bank, of Philadelphia, Closes Its Doors. THE QUAKER CITY AGAIN A LOSER. The City Treasurer Had $144,000 on Deposit in the Defunct Institution-A Dividend Declared Only Four Days Ago-The Penn Trust Company Makes an Assignment. PHILADELPHIA, May 9.-The Spring Garden National bank, of this city, closed its doors at noon yesterday, by order of the bank examiner, on instructions from Washington, that the bank must make good its legal reserve or suspend. City Treasurer Bardsley has $144.000 on deposit in this bank, beside the $440,000 in the Keystone. The Spring Garden on Tuesday last declared the usual 21 per cent. semi-annual dividend on its stock. The bank has a paid up capital of $750,000, a surplus of $127,500, with undivided profit of $30,000. The bank has been in trouble at times since November last. The Président's Statement. In answer to a request sent in to President Kennedy asking for some information as to the reason of the bank's closing, the following note was sent out. We have this morning decided to place the bank in the hands of Mr. Drew, the national bank examiner. This step has been foreed upon us principally by the large withdrawal of deposits during the financial stringency which commenced last September, and the continued dullness of business since. To meet thesedemands on our reserves it was found impossible to realize rapidly on the assets. We have been below in our reserve some weeks past, and can see no immediate prospects of increasing it. We still owe a balance to the clearing house committee for outstanding loan certificates, payment of which is being pressed. These facts, coupled with the disturbances of the past week, have caused increased uneasiness on the part of some of our depositors, together with the weakening of our credit with the other banks. We hope the suspension will be only temporary. FRANCIS W. KENNEDY, President. The Penn Trust Company Assigns. The Penn Trust company has made an assignment for the benefit of creditors to Josiah R. Adams. The Trust company is now a state institution, separate from the bank, but it was originally an outgrowth of the bank, in this, that the stockholders of the bank were also largely stockholders of the Trust company. Mr. Samuel B. Huey was consulted by persons interested and connected with the trust company as to difficulties they were in, and he advised that the company should make an assignment, and that it should be made to some one whom he could represent-some one in whom he and the company could have full confidence. For this reason Mr. Adams was selected as the assignee. Ruined by the Bank Failure. John I. McDuffee, the extensive builder and brickmaker, is the first business man to be pulled down by the failure of the Spring Garden bank. Mr. McDuffee yesterday made an assignment for the benefit of his creditors. Judgments aggregating $82,430 were entered against him. Two of these judgments, for $24,000 and $15,000 respectively, his attorneys said, were for money advanced. The other judgments for $2,500, $30,000, $6,230, $2,500 and $1,200 were accompanied by mortgages.
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CLOSED ITS DOORS. Suspension of the Spring Garden National Bank. The Late Financial Stringency Caused the Sudden Collapse. Rumors of Unstability Injured the Credit of the Institution and Alarmed Depositors-Others Fail. Special to THE MORNING CALL PHILADELPHIA, May 8.-The Spring Garden National Bank closed its door at 11 o'clock this morning by order of National Bank Examiner Drew. The following notice was posted on the door: "By order of the Comptroller of the Currency this bank is closed until further notice. W. P. Drew, National Bank Examiner." The news of the closing spread rapidly, and a large crowd soon collected, but admittance was denied to all. President Kennedy sent out the following note: "This morning it was decided to place the bank in the hands of the National Bank Examiner. This was forced upon us principally by the large withdrawal of deposits during the financial stringency of last September and the continued dullness of business since. To meet these demands on our reserves it was found impossible to realize rapidly on our assets. We hope the suspension will be only temporary. " We had been below our reserve for some weeks and can see no immediate prospect of increasing it. We still owe a balance to the Clearing-house committee for outstanding loan certificates, the payment of which is being pressed. These facts, coupled with the disturbances of last week, caused increased uneasiness on the part of some depositors and the weakening of our credit with other banks." The Penn Trust Company, which is now a State institution, but was originally an outgrowth of the Spring Garden Bank, made an assignment this afternoon, with Josiah R. Adams as assignee. The capital of the trust was $1,250,000. The trust company was formed by the officers of the bank, and was almost entirely controlled by that institution. A bank President, after consultation with President Kennedy, said this evening that during the troubles of the Keystone Bank the rumors circulated about the Spring Garden's credit so injured it that it has never fully recovered. The only way to rehabilitate it is to reorganize and put in additional capital. Another financial man blames the whole trouble on the Keystone Bank, saying the strain was too much and the depositors too uneasy. The feeling among the officers of the bank seems.to be that if the Clearinghouse had shown more leniency a suspension would not have been necessary. Assignee Adams of the Pennsylvania Trust Company said to-night that he could give no idea yet of the resources or liabilities of the company. It had a line of deposits amounting to about $175,000. According to the statement of the Spring Garden Bank to the Clearing-house Monday last, its assets exceeded its liabilities by $1,875,000. Among the items was $2,427,000 worth of loans and discounts. Much of these are not of a gilt-edged character. President Kennedy, his brother, the cashier and Director Evans are said to be interested in a number of ventures of a speculative character that have not proven successful. The report that City Treasurer Bardsley has $144,000 on deposit in the bank had no foundation whatever. Rumors were current to-day of the failure of the Girard Bankano Pennsylvania Trust. The Pennsylvania Trust is altogether a different organization from the Pennsylvania Trust Company.
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STILL ANOTHER CRASH. The Spring Garden Bank of Philadelphia Closes Its Doors. PHILADELPHIA, May 9.-There is considerable uneasiness among bank depositors over the closing of the Spring Garden Bank, following so closely after other bank failures here. The doors of the Spring Garden Bank were closed at 11:30 o'clock. At that time Bank Examiner Drew came to the door and posted this notice: "This bank is closed by order of the Comptroller of the Treasury until further notice." The last check was paid at 11:30. In a few minutes a crowd had collected and the street was impassable. In answer to a request sent in to President Kennedy for some information as to the reasons for the bank's closing he made the following statement: "We have decided to place the bank in the hands of Mr. Drew, the Nation al Bank Examiner. This step has been forced upon us principally by the large withdrawal of deposits during the financial stringency which commenced last September, and the continued dullness of business since. To meet these demands on our reserves, it was found impossible to realize rapidly on our assets. We have been below in our reserve for some weeks past, and can see no immediate prospect of increasing it. We still owe a balance to the Clearing House Committee for outstanding loan certificates, payment of which is being pressed. These facts, coupled with the disturbances of the past week, have caused increasing uneasiness on the part of some of our depositors, together with the weakening of our credit with the other banks. We hope the suspension will be only temporary." The Penn Trust Company has made an assignment for the benefit of creditors. The Trust Company is now a State institution, separate from the Penn Bank, but it was originally an outgrowth of the bank in this, that the stockholders of the bank were also largely stockholders of the Trust Company. There were rumors flying around that, the Girard National Bank was in trouble, but Vice-President Caldwell publicly states that the bank was never in better condition than it is to-day and that they are able to pay every dollar they owe. The crash was a great surprise to the general public, as at the last sale of its stock the price obtained was $121.50. The capital stock of the institution was quoted at $750,000 and there was a supposed surplus of $130,000. A dividend of 2 1-2 per cent. was paid upon the capital stock at the last annual meeting.
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Hopes that the Suspension of the Spring Garden Bank will only be Temporary. BULLETIN ON THE SUBJECT OF IN* SANE ASYLUMS. Buckley Claims to be the True and Lawful Governor of Connecticut. / By Telegraph to the NEWS. A BANK TROUBLE. The Spring Garden National Bank Closed. PRILAEELPHIA, May 8.-TheSpring Garden national bank closed its doors at 11 o'clock this morning. The followlug notice was posted on the door by order of the Comptroller of Currency: "This bank is closed until further notice," and is signed by W. P. Drew, national bank examiner. The news of the closing spread rapidly and a large crowd soon collected, but admittance was denied all. President Kennedy sent out the following note: "We this morning decided to place the bank In the hands of the National Bank Examiner. This was forced upon us principally by the large withdrawals of deposits during the financial trouble last September and the continued dullness of businesssince. To meet these demands on our reserves it was found impossible to realize rapidly on assets. We hope the suspension will be only temporary." "We have been below our reserve for several weeks and can see no immediate prospect of increasing it. We still owe a balance to the clearing house committee for outstanding loan certificates, the payment of which is being pressed. These facts, coupled with the disturbances of the last week, caused an increased uneasiness on the part of some depositors, and a weakening of our credit with other banks." The Penn Trust Company, which is a State institution, but was originally an outgrowth of the Spring Garden bank, made an assignment this afternoon, with Joseph Adams as assignee. The capital of the Trust was $125,000. The Trust Company was'formed by the officers of the bank, and almost entirely controlled by that institution. There was no foundation whatever for the rumors current today of the failure of the Girard Bank and the Pennsylvania Trust. The Pennsylvania Trust is an altogether different organization from the Pennsylvania Trust Company. GENERAL BUTLER'S PROPERTY A.T. TACHED. LOWELL, Mass., April 8.-The Prescott National Bank has placed an attachment on the property of General Butler for $12,000. The money consideration was given about four years ago on . personal note, which the bank discounted. When the note fell due it was not paid, for some reason : I ;
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Spring Garden National Bank Closes. Philadelphia, May 8.-The Spring Garden National bank closed its doors at 11 o'clock this morning. The bank was closed by order of National Bank Examiner Drew. The following notice is posted on the door by order of the comptroller of the currency: "This bank is closed until further notice," and is signed W.P. Drew, national bank examiner. News of the closing spread rapidly and a large crowd soon collected, but admittance was denied all. President Kennedy sent out the following note: "We this morning decided to place the bank in the hands of the national bank examiner. This is forced upon us principally by the large withdrawal of deposits during the financial stringency last September and the continued dullness of business since. To meet these demands on our reserves it was found impossible to realize rapidly on our assets. We hope the suspension will be only temporary." But little information as to the bank's real position could be learned as the officials, directors and Examiner Drew were in consultation and could not be seen. Among the crowd of stockholders and depositors who gathered on the street in front of the bank a feeling prevailed that the closing of the bank would prove but temporary and they would recover their money. The Penn Trust company, which made an assignment this morning, was really part of the bank, but is said to be solvent, the assignment being simply for protection against a run. The capital stock of the bank is $750,000, fully paid in, and by the February statement the reserve fund amounted in round figures to $150,000. The banks line of deposits amount to about $2,000,000 and the city of Philadelphia, which has $400,000 locked up in the broken Keystone bank, again suffers to the extent of $154,000. When the run was made on the Keystone bank last fall a small run was also made on the Spring Garden bank, but the bank met it without difficulty. Outside bank officials are not surprised at the failure. They said it had been for some time in a weak condition and that in inner financial circles of the city it was known unless the bank received aid from some influential quarter it would get into trouble.
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DOWN GOES ANOTHER A Philadelphia Bank Collapses on Short Notice. WHY ITS DOORS WERE QUIETLY SHUT Too Many Uneasy Depositors Withdraw Their Funds-A Bg Tea Company Compelled to Assign-Other Business Failures, Philadelphia, May 2.-The Spring Garden national bank which closed its doors Friday has been taken charge of by Bank Examiner Drew. The failure of the bank was due to its connection with the Keystone national bank, which closed its doors about two months ago. The Spring Garden attempted to earry some of the Keystone's paper. but other demands upon its resources forced it to the wall. The principal depositors were small tradesmen and laboring people. It is impossible to obtain any information as to the condition of the bank's affairs, although it is currently reported that the assets will pretty nearly equal its liabilities. The bank had a capital stock of $750,000 and a surplus of $127,000. The bank is a large depository for the city's money. According to the statement of City Treasurer Bardsley he had $144,000 on deposit in the institution. According to the statement of the bank made to the clearing house on Monday last its assets exceeded its liabilities by $1,875,000. Among the items credited to its resources was $2,427,000 worth of loans and discounts. That these loans and discounts are not of a gilt-edge character is practically admitted by President Kennedy in a written statement to the reporters in which he cited some of the reasons for the closing of the bank. The Penn Trust Company, an adjunct of the bank, also made an assignment. The bank failure is not a heavy one but will be far-reaching in its character owing to the fact that so many small traders kept accounts there. The primary cause of the failure of the bank lay in the fact that so many depositors drew out their money to join the Earnest Workers and other short term societies. This took at least $100,000 out of the bank that it had for use at all times. President Kennedy was interested in the glass jar trade at East Liverpool, O. It is believed there will be some crashes in that line. There are rumors of reckless speculation, but no large institution will be hurt by the collapse. The outlook at this time is that the depositors will finally be paid 75 per cent. FAILURE IN SOUTH DAKOTA. ABERDEEN, S. D., May 9.-The Western Farm Mortgage Company, one of the oldest loaning companies in this vicinity, assigned Friday. The authorized capital was $250,000, over $236,000 of which was paid in. The stockholders reside largely in New York and Michigan. J. C. Wilson, Flint, Mich., is president, and James A. Blanchard, New York, counselor. President Wilson says the assets exceed the liabilities, and every dollar will be paid if the country comes out right. THOUSANDS UNACCOUNTED FOR. Nashua, N. H., May 9.-The Bay State Shoe Fastening Company has been wrecked. The treasury of the company is depleted and $147,000 is unaccounted for. For three years past the company has been paying a 10 per cent. dividend, but investigation shows that every cent of it came out of the capital stock. THE WEEK'S FAILURE RECORD. NEW YORK, May 9.-The business failures occurring throughout the country during the last seven days number 242, as compared with a total of 255 last week. For the corresponding week of last year the figures were 209. A TEA COMPANY FAILS. NEW YORK, May 9.-The Union Pa. cific Tea Company, of this city, with ninety-five branches in this and many other cities, has assigned without preferences. The assignee, George Macy, attributes the assignment to the inadequacy of the firm's capital. The firm has been doing a business of about $1,500,000 a year. It has been in ex-
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CLOSED A BANK'S DOORS The Government Takes Charge of a P delphia Depository. PHILADELPHIA, Pa., May 8.-Ano of Philadephia's national deposito closed its doors to-day by order of comptroller of the currency. After ing business for an hour and a half morning the Spring Garden Nati Bank, at Twelfth and Spring Gar streets, suspended operation, and 1 ed the foliowing notice upon the do By order of the comptroller of the rency this bank is closed until further W.P.DREW tice. National Bank Examin The news of the closing of the b spread rapidly, and a large crowd s collected, but admittance was denie all. In answer to a request sent to P1 dent Kennedy, asking for some in mation as to the reason of the bar closing, the following was sent out: We have this morning decided to p the bank in the hands of Mr. Drew national bank examiner. This step been forced upon us principally by large withdrawal of deposits du the financial stringency which ( menced last September and the tinued dullness of business si To meet these demands on reserves it was found impossible to re rapidly on the assets. We have beer low in our reserve some weeks past, can see no immediate prospects of iner ing it. We still owe a balance to the e ing house committee for outstanding certificates, payment of which IS b pressed. These facts, coupled with disturbances of the past week, have ca increased uneasmess on the part of : of our depositors, together with the " ening of our credit with the other ba We hope the suspension will be only porary. FRANCIS W. KENNEDY, Preside But little information as to the ba real position could be learned the officials, directors, and aminer Drew were in cor tation and could not be 8 Among the crowd of stockholders depositors who had gathered on street in front of the bank a strong ing prevailed that the closing of bank would prove but temporary, that they would recover their mone The Penn Trust Company, w made an assignment this mornin really a part of the bank, but is sa be solvent, the assignment being sir for protection against a run. The tal stock of the bank is $750,000, paid in, and by the February stater the reserve fund amounted in re figures to $150,000. On Tuesday the bank declared a semi-annual dend of 2½ per cent., and the 8 sold at $121, par being $100. The ba line of deposits being about $2,000 and the city of Philadelphia, which $400,000 locked up in the broken stone Bank, again suffers to the ex of $154,000. The Spring Garden Bank was ganized in 1870 as a state bank an 1886 was nearly driven into insolv by a heavy run upon it. At that
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closed its doors 10-day by e comptroller of the currency. After doing business for an hour and a half this morning the Spring Garden National Bank, at Twelfth and Spring Garden streets, suspended operation, and posted the following notice upon the doors: By order of the comptreller of the cur- norency this bank is closed until further tice. W. P. DREW, National Bank Examiner. The news of the closing of the bank spread rapidly, and a large crowd soon collected, but admittance was denied to all. In answer to a request sent to President Kennedy, asking for some information as to the reason of the bank's closing, the following was sent out: We have this morning decided to place the bank in the hands of Mr. Drew, has the national bank examiner. This step been forced upon us principally by the large withdrawal of deposits during the financial stringency which commenced last September and the continued dutiness of business since. meet these demands on our To it was found immossible to realize reserves rapidly on the assets. We have been and below in our reserve some weeks past. see no immediate prospects of mereascan We still owe a balance to the clear loan ingit ing house committee for outstanding being certificates payment of which is pressed. These facts, coupled with caused the disturbances of the past week. have increased uncasiness on the part of weak- some of our depositors, together with the banks. of our credit with the other temening We hope the suspension will be only porary. FRANCIS W. KENNEDY, President. But little information as to the bank's real position could be learned, Ex at officials, directors, and the aminer Drew were in consultation and could not be seen Among the crowd of stockholders and the depositors who had gathered on street in front of the bank a strong feel- the ing prevailed that the closing of bank would prove but temporary, and that they would recover their money. The Penn Trust Company, which is made an assignment this morning, really a part of the bank, but is said t be solvent, the assignment being simply for protection against a run. The caps tal stock of the bank is $750,000, fully paid in, and by the February statement roun the reserve fund amounted in figures to $150,000. On Tuesday lathe bank declared a semi-annual divi dend of 2) per cent., and the stock sold at $121, par being $100. The bank line of deposits being about $2,000,000 has and the city of Philadelphia, which $400,000 locked up in the broken Key stone Bank, again suffers to the extent of $154,000. The Spring Garden Bank was or it in 1870 as a state bank and ganized 1886 was nearly driven into insolvency time by a heavy run upon it. At that assist the clearing house came to its tha but with the understanding ance, bank should reorganize as a na the tional bank. After the run was over all danger had passed this wa and done. When the run took place on the Keystone Bank last winter, a small run also made on the Spring Garden diffi was Bank, but the bank met it without culty. The report of the closing of the caused great surprise in financial bank circles, but there were bank officials who declared some that they were not surprised at the that sur it pension of the bank. They said COD had been for some time in a weak dition. and that in the inner financial circles of the city it was known that un the bank received aid from some less influential quarter it would get into trouble. The Pennsyivania Safe Deposit and it Trust Company which has its office build the Spring Garden National Bank invoice made an assignment this afternoon.
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Without a Head Because He is in Jail-The Story of Bardsley's Peculations. PHILADELPHIA, June 4.-Who is the next man marked for jail? What firm will be the next to go to smash How many names will the day see added to the list of politically and financially dead ducks? Day after day these questions have been naked in Philadelphia for more than a month, when public clamor uncovered the wickedness of "Honest" John Bardsley as City Treasurer and began the work of sending him to jail; when banks and business houses began to totter and fall, and bank presidents to run away and financiers to go to Europe. There was another failure yesterday; two or three more are expected by tomorrow. There was another arrest yesterday, and more are sure to follow. Bank directors are going around with special agents of the Treasury Department as shadows at their heels. A City Treasurer who for years absolutely dominated legislation in the town was carried yesterday from a prison hospital to a prison cell, like an ordinary felon. Men who have made Presidents and Governors and United States Senators, are shaking in their boots. All that is left of one bank which has somehow weathered the storm, are a few thousands of dollars of deposits where there was a million. Y. M. c. A. HAS NO PRESIDENT. The Young Men's Christian Association is without a president or a vice president, the one being in jail and the other blasted in reputation and kicked out of a position of trust, not being allowed to enter. the hall where for years he sang and prayed under the cloak of religion. There is a feeling of financial distrust like that which followed the great Jay Cooke panic in '73, and there 18 an impending political revolution like that which followed the nomination of Delamater for Governor of this State just a year ago. These are only a few things which have followed as the direct result of "Honest John's" crookedness, duplicity and innocence. Men are going to jail every day. There have already been failures in three States, and there are ruined reputations enough to satisfy all the social and political weeklies of New York for a year. As to the magnitude of this thing, measured in dollars, these figures beat imagination out of sight: WHAT IT AMOUNTS TO. The public money lost or imperiled through John Bardsley will be 5,000,000 The depositors' money lost through the 2,000,000 looted Keystone Bank will be The depositors' money lost through the 1,700,000 looted Spring Garden Bank will be The depositors' money lost through the assigned and looted Penn Trust Com250,000 be will The pany amount of liabilities in excess of assets of the twelve firms and corporations in Pennsy vania and New Jersey which have so far failed will 3,000,000 probably reach $11,950,000 Total lost or stolen Here are figures before which the Bank of America rottenness pales into insignificance, and it is not all. Much is being concealed. Political influence is at work. The fact that the Attorney General of the United States interfered to delay the prosecutions in the looted Keystone Bank has been open scandal here for a month. So notorious were the elements which contributed to the flight of Marsh that the Cftizens' Committee of Fifty, an organization similar to the famous old Committee of One Hundred, yesterday sent to President Harrison, Secretary Foster and Attorney General Miller a telegram demanding that the Government find and bring back the fugitive Marsh. Marsh is gone; money was put up to aid his flight, and so long as he is absent the thieves who are still under cover may feel reasonably safe. Enough has leaked out about the inside history of this shameful business of Bardsley and the banks to show that Bardsley was first and always a knave, but for a certain period a dupe. A TOWN OF SYNDICATES. This has always been a town of syndicates. There was the Reading syndicate, which transferred from the pockets of those on the outside to those on the inside several million dollars. There was the old gas works syndicate, which Bardsley got $100,000 shares of Traction bonds for endeavoring to engineer through. There was the water works syndicate and the United Gas Improvement Company syndicate, and senside resort and street railway syndicates galore. Bardsley began to go into them. He wanted to get rich. His greed and selfishness had been proverbial. He began to loan the city money to the banks. Even Drexels gave him a bribe of 3 per cent. So did the bank of which Gov. Pattison was president. An evidence of his rapacity is here given for the first time. The City Treasurer is the collector of mercantile taxes due to the State. Thousands of small merchants never pay. Certain magistrates are designated to bring snit, and if possible collect. The suits are brought, the State pays the costs, and it'is'a fat thing. When Bardsley went in he was expected to appoint four magistrates to do this. Instead he designated nine. People couldn't understand this until to-day, when it leaked that he had exacted as a price for the appointment $350 from each magistrate. TL