1de82f9aNone
Click image to open full size in new tab
PETERSBURG. Prempt and Creditable Action-Two Instances of Honorable Service. (Correspondenceofthe Richmond Dispatch.) APRIL 3. 1885. It is stated that the Norfolk and Western Railroad Company is cashing at its office in this city all the checks on the Exchange Bank of Norfolk. with which the employees of the road were paid off for the month of March the day previous to the suspension of that bank. This action on the part of
Click image to open full size in new tab
Uncle Sam Left. PETERSBURG, April 7. The United States government had on deposit in the Exchange bank of Norfolk, which suspended yesterday between four and five hundred thousand dollars. These funds are internal reverue collections.
Click image to open full size in new tab
A Financial Shock. NORFOLK, Va., April 9. The suspension of the Exchange Bank, the largest institution of the kind in the State, and the failure of Bain & Bro., bankers of Portsmouth, was the greatest financial shock Norfold has ever received. Business is panicky and bank officars are disposed to take a gloomy view of the situation and are straining every nerve ty restore quiet and confidence.
Click image to open full size in new tab
MORE TROUBLE IN NORFOLK. THE FARMERS BANK CLOSES. The Immediate Will Pay Dellar for Dellar Exchange-Bank Matters - The Other Banks. [Correspondence of the Richmond Dispatch.] NORFOLK, va., April 9. 1885. The suspension of the Farmers Bank has caused another black Thursday, though there is little excitement and no runs on other banks. The Farmers Bank is owned by the Hardys, an old family of this city. The officers are as follows: C. Hardy, president; B. A. Marsden, cashier; Horace Hardy, assistant cashier H. C. Hardy (New York), C. Hardy, F. Hardy, B. A. Marsden, and Horace Hardy, directors. Last fall, when H. C. Hardy & Sons, of New York, failed, a run was made on the Farmers Bank, but by means of help received from the Exchange Bank the officers were able to meet all demands and pulled through all right. Some fears were entertained that they would go under on Thursday last when the Exchange closed itsdoors, as the Hardys had deposits in that bank but the directors reported to the clearing-house that the bank was all right and confidence was restored. They went on very well until yesterday, but the drafts from their country depositors came in on them to such a large extent that they decided it best to close their doors, and this morning the following notice was posted on the door: "In the interest of its depositors this bank is closed. An assignment is made to Walter F. Irvine, trustee, to whom all claims must be presented, and with whom the settlement of debts due the bank must be made. Deposits made (by persons not indebted to the bank) yesterday will be returned. April 9. 1885.' About 11 o'clock the deed was recorded in the clerk's office, and the terms of the conveyance are as follows 1st. expenses of the deed: 2d, all depositors who have deposited since April 1st, then all other depositors and all certified checks and all drafts on correspondents; 3d. all other creditors. The assets of the bank are between $200,000 and $300,000; liabilities unknown at present, but the officers are at work and will prepare a statement soon. Mr. Irvine, trustee, assures the depositors that the bank will pay dollar for dollar, and since this announcement was made the feeling is much better. The other banks are protecting themselves against runs by sheltering themselves behind the sixty-day privilege for all checks in excess of $50. There is no disputing the fact that the effect is still further to depress business, and the outlook is gloomy in the extreme. A meeting of the depositors of the Exchange Bank was held to-day at 1 o'clock to hear the report of the committee appointed to wait on Messrs. Whitehead and Bain, late president and cashier, respectively, of that institution. The substance of this communication was published in your paper of yesterday. Mr. Whitehead says he was a depositor in the bank to the amount of $60,000 (as a fiduciary), and that the true condition of the affairs of the bank was as much of a surprise to him as to the general public. Indeed, Mr. Whitehead was first advised of the large overdraft of Bain & Brother by Mr. Orson Adams, the bank examiner, and when Mr. Bain confirmed Mr. Adams's statement Mr. Whitehead came near fainting in his chair. He took his bed soon after the bank closed. The meeting to-day heard the report of the committee appointed to visit Mr. Whitehead, and also the report of the committee who had visited Washington. This committee reported that they had seen the Comptroller and recommended Messrs. W. H. Peters and Theodore S. Garnett as receivers. The Comptroller said the law allowed him to appoint one receiver only. He did not intimate whom he would appoint, but wished first to confer with Mr. J. C. Brown, the bank examiner. The report was received with thanks. Mr. Brown will leave to-day for Washington, and a committee was appointed to wait on him and urge the appointment of Mr. Peters as receiver. THE SITUATION SUMMED UP. The situation may be summed up as follows The Farmers Bank suspended with assets of $250,000 (about), but the officers claim that they will pay dollar for dollar. The Bank had heavy losses in the Exchange Bank, and suspension wasnot unexpected. The officers acted in a most honorable manner. They could easily have secured money with which to continue, but closed in the interest of depositors. Mr. Whitehead assigns property worth about $200,000. This makes the depositors in the Franklin Savings Bank safe, as he prefers that bank. A run of small depositors was made on the Merchants and Mechanics Bank, but claims amounting to $3,000 were paid without trouble. There were no runs on the other banks and they are all safe. The Farmers Bank was the only bank involved in the Exchange failure (except the Franklin Savings). Whitehead's and Bain's assignments preferring other creditors before the Exchange Bank leave that institution in a bad way, and the bank examiner, J. C. Brown, takes & gloomy view. The causes of the Exchange failure will be fully investigated by lawyers to be employed for that purpose. ELIA. Fire in Norfolk County-A Man and a We-
Click image to open full size in new tab
The Sons of Temperance order in Fincastle is about on its last legs. Bad on Fincastle. The McCormick Observatory, at the University, was dedicated with appropriate ceremonies on Monday last. The Legislature of Nevada has passed a law imposing a fine of $20 on any person who treats another in a saloon. The Washington correspondent of the Alexandria Gazette states that Hon. John T. Haris will be a candidate for the Governorship. One of the most encouraging features in the industrial situation just now is that during the past few weeks the iron trade has steadily but slowly improved. If our cotemporary of the Vindicator would call to mind the fact that a Readjuster Legislature was elected in 1879, and the party continued in power until 1883, it would hardly contend that the transfer of lunatics from the jails to the asylums in 1881-82, was not the result of Readjuster management. The Alexandria Gazette, referring to the conference in Washington last week of the Democratic members of Congress to divide the spoils and the recommendations they made, says: "The impression among others than Virginians here is that the action of the conference will have little influence on the appointing powers." Fourteen years ago, Jack Taylor, a colored man, was indicted in the county court of Page, charged with stealing a few chickens and implicated with others in stealing bacon. He eluded arrest and fled to another State. He recently returned, and while enjoying himself with his fiddle at his home, was arrested last week and incarcerated. On the 9th The Farmers Bank of Norfolk closed its doors, making the fourth banking institution of that city that has suspended within the past two weeks. There was by the Exchange Bank due depositors $3,000,000. One firm, Bain Bros., had been allowed to overdraw to the amount of $1,200,000. The State had $300,000 in this bank, and there was past due taxes to the State, $12,000. Suit has been brought by the Attorney General to recover. ### THE BALTIMORE MANUFACTURERS' RECORD April 11th, furnishes a detailed statement of the manufacturing enterprises started in the South for the first three months of 1885. The list embraces fourteen States, and the aggregate capital invested is $20,591,100, divided as follows: Alabama, $2,035,000-including four new coke furnaces at Birmingham: Arkansas, $179,600; Florida, $200,000 Georgia, 3991,000: Kentucky, $7,728,000: Louisiana, $465,500: Maryland. $3,400,000: Mississippi, $96,000; North Carolina, $715,000; South Carolina, $332,000: Tennessee, $1,225,000; Texas, $510,000; Virginia, $1,496,000: West Virginia, $1,220,000, Amherst Democrat: Capt. J. W. Henley of the Virginia Tin Company, was in town Monday and said his company had the biggest thing ever discovered in the United States. He informed us that they had gotten out from 1,500 to 1,800 tons of ore since Christmas which would average 30 per cent., and were now getting out from thirty-five to forty tons a day. One of the veins has exceeded their most sanguine expectations. It was though that it would only be forty feet in width, but it turns out to be fully 120 feet wide and of very fine ore. A specimen shown us was 78 per cent. pure tin. As soon as possible the company will erect a furnace and smelt the ore. A new sect is being started in Connecticut. The creed of this novel church declares a belief in an intelligent over-ruling power, a future life for everybody, whose happiness will depend on the state of the conscience, and will be inversely proportionate to the amount of wrong committed on earth and that wrong can be determined only by the exercise of reason. It then enumerates nine wrongs which include to murder, steal, give anything needless discomfort, &c. The organization rejects the Bible, but retains God, whom it calls "Pote." Prayer is regarded as needless, and Sunday rest is recommended for health. Liquor, tobacco and gambling are forbidden. The effect of the disastrous bank failures in Norfolk has been to paralyze business and reduce to poverty many who a few weeks ago were considered in comfortable circumstances. The business men are facing the difficulties and embarrassments which environ them with heroic courage. Aid is also coming in from the North, to sustain the existing banks and enlarge their facilities for accommodating business demands. Prominent gentlemen of Portsmouth and Norfolk are moving to organize a new bank, and the indications are that it will not be long before the shock experienced by the bank failures will have subsided and all business resume its wonted activity. Eight five-story tenement houses, each to accommodate ten families, on the south side of West Sixty-Second street, between 10th and 11th avenues, New York, that had been recently put under roof, fell down on the evening of the 14th, while efforts were being made to brace then up, that the yielding foundation might be made secure. The wreck was complete. Not a stick remained standing, not a timber remained whole, in the entire roof. Fifty workmen were engaged at the time, thirty of whom were injured, and about eight killed. Fifty men had been ordered away during the day, and the contractor drove off a few moments before the collapse of the houses. He is greatly censured because of the material out of which the buildings were being constructed, and especially for the bad character he bears, in respect to building. Judge Wiley, of the Supreme Court of the District of Columbia, has informed the President that he wishes to avail himself of the provision of law which allows him to retire on full pay after twenty years' service. The President requested him to withhold his resignation for the present, until he could select a suitable person to fill the important position. It is stated also that Chief-Justice Cartter and Justice MacArthur desire to avail of the law. The name of Judge James Keith, of the Alaxendria Circuit, is mentioned in connection with one of the positions.
Click image to open full size in new tab
A FINANCIAL CRASH. FOUR BANKING HOUSES IN NORFOLK CLOSE DOORS. 'The Sentinel's" Washington Corres. Pondent Takes Run Down to the Sister Cities to Review the Situation. Special Correspondence of the Sentinel: NORFOLK, Va., April 24.-As you requested, our arrival in Norfolk was followed by rapid etrides towards the financial centre that has recently experienced so much excitement and loss. The great excitement that at first followed the suspensions, has, of course, subsided, but traces of uneasiness may yet be seen on the faces of merchants or tradesmen interested. There is no doubt that the recent failures indirectly affected all, and impoverished many extended not only to various points in the State, but to a number of European depositors. THE EXCHANGE BANK, which suspended on the 2nd inst. was regarded as one of the soundest banks in the South, and liberally and extensively patronized. For instance, Dr. McDonald, of the Pacific Bank, San Francisco, feels the failure to the extent of $270,000. The surprise felt by those not concerned in the suspension was almost as great as the distress felt by those whose last dollar had been locked in the vaults. Banks, however, always are, and always will be, mysteries to the great majority whose idea of business is based on old, commonplace principles. But the experienced financier beholds no mystery in the laws of finance, and is seldom misled by gorgeous, annual statements or fictitious dividends The Exchange Bank was warned on the 12th of March that its reserve fund was deficient, but little attention, it seems, was paid to a warning that should have been, if necessarv, forcibly impressed. There is no other evidence necessary to show its recklessness. The charter of the Exchange would have expired on Saturday, the 25th, but the gaunt arm of failure, which had been hanging over the bank several years, grasped its victim. Perhaps it was better so. The Exchange might have pasted paper over the gap in its reserve fund, secured a new charter, put on the air of prosperity it has learned so well to assame, and continued to risk the money of its depositors. There is no real sympathy here for the bank or its of ficers. The great brotherhood of bank ers naturally sympathizes and laments but the depositors feel that the officers overstepped the bounds of investment, and are responsible for the wild spec ulations that have left the assets plentifully sprinkled with almost worthless paper. Many of the so-called securities, which the Exchange has been pleased to number among its assets have little value to-day. As we stood in the bank yesterday, conversing with an examiner, we were reminded of rare, old historical documents preserved for the benefit of future generations. However, the managers of the Ex change could hardly have had historical preservation in mind when these securities were accepted for good, solid U. S. cash. The historical truth of the matter is that depression in all quarters of the State, where the secur ities once had value, caused what the Exchange is pleased to call an unforeseen shrinkage that human judgment could not even suspect, and that was discovered too late to apply any remedy. When a bank has failed, it is a most thankless task to "explain how it was done.' Explanations certainly satisfy no one, and only increase the indignation of depositors. In the present case, the safest explanation is that the heaviest losers are perfectly able to stand their losses, and the smallest depositors unfortunately stripped of every dollar they owned. OTHER BANKS naturally suffered from the suspension of the Exchange. Indeed, the whole system of banking in this region appears like a most unfortunate combi nation. The life of one was the life of others. The statement that panic caused a run on other banks, and thus necessitated their suspension, is absurd. Such statements can create no sympathy in a clear, calculating mind. When the Exchange had gone down, the collapse of other banks was scarcely surprising. The suspension of the Frank lin Savings Bank and Bain Bros. Portsmouth, was nothing more or less than the natural result of the Exchange's failure. One could have placed his last dollor in either with equal safety Bain Bros. have placed their liabilities at $1,600,000, and their assets at $1,900,000. If we judge this bank by methods which the Ex change pursued, it is safe to say that the assets, under liberal estimate are worth not more than $1,400,000, leav ing a deficiency of $200,000. Wild we might say, criminal, speculation has been the rule. On the 9th inst. the Farmer's Bank, unable to foot it self OF its depositors another day, was compelled to succumb. Here. in one short week, we see no less than four banks closing their doors, and ac knowledging that their officers had abused the deposits entrusted to their investment. The ball of suspension had only to strike the foremost, and let it fall against the other ten-pins o finance. It still rolls onward, howev er. These banks are not the only ten pins whom it has struck, or whom i may strike. There are a number o mercantile interests that could barely keep their balance, and a number who must eventually totter and fall. The distress that the failures have cause
Click image to open full size in new tab
SENSATION IN NORFOLK. ARREST OF PROMINENT MEN. An Interesting Case-Judges Walte, Bond. and Hughes on the Bench-A Political Snari. [Correspondence ofthe Richmond Dispatch.) NORFOLK, May 12, 1885. A large crowd *had gathered in the United States Court-room morning, when the injunction suit of W. H. Peters, receiver of the Exchange Bank, against the trustees of Bain & Brother was called. Chief-Justice Waite, Judge Bond, and Judge Hughes were on the bench. The bill filed by the plaintiff charges that the deed of assignment of & by which the deposiin their bank are over of the Exchange tors Bain Brother. preferred Bank, wasdrawn the with a view to " delay, up claims hinder, and defraud " the Exchange Bank. The argument was opened by Judge He Theo. S. Garnett for the plaintiff. was followed by Messrs. Richard Walke, J. Alfred Jones, and Legh R. Page for the respondents. DistrictAttorney Waddill then followed with an argument for the plaintiff. The plaintiff's counsel charged that the assets of Bain & Brother were obtained largely from the Exchange Bank, and that the trustees knew this when they received a conveyance from Bain & Brother; that the property was corveyed without valuable consideration; that the deed, while it purports to include the plaintiff in the creditors of the it first and second class, in fact include in neither; that the trustees are empowered to cultivate certain lands and pay the expenses out of the assets of Bain & Brother, &c. The respondents publish a long anwhich deals with the questions of swer, law from a technical standpoint. As to the personal charge against Mr. W. W. Old, one of the trustees, that he was legal adviser of Bain & Brother, and knowing the condition of the Exchange Bank, and the fact that Bain & Brother were also directors in that bank, and that he consummated their the fraudulent intent by drawing up of Mr. Old says he was ever legal deed that trust, adviser it is not of & Brother in regard to any in connection with the matters Bain true Exchange of their indiBank, or that he ever had any vidual knowledge or intimation of did the same prior to April 2, 1885 nor Bain he know anything of the affairs of & Brother. After hearing the argument the court took a recess of an hour. The court denied the application for receiver, but directed the trustees not of a to pay out money to the creditors of Bain & Brother without the consent to the court, and directed the trustees make monthly reports to the court. J. B. Whitehead, president ; George Bain M. Bain, cashier, and R. T. K. J.G. Bain, directors, were arrested and to-day and put under a bond of $10,000 United for their appearance at the The States Court at Norfolk in July. arrest was made under the instructions and of Attorney-General Garland, caused some little excitement. W. L. Royall, indicted in Richmond couunder the charge of practicing in withcases and dealing in coupons the pon a license, as required under United out coupon-killer acts, applied to the haStates Court for a release under a beas corpus. but the application was denied and the case dismissed. Our political folks are having some Club trouble here. The Pioneer little organized some time ago with a was membership of some three hundred. Several nights ago a city convention for held to nominate a candidate A. was Treasurer, and Mr. A. was City Power was nominated. But it was claimed that the convention and manipulated by the Pioneer bolted. packed and some of the delegates on Club, dissatisfaction was expressed Great of the anti-club men, not which to the part Power, but to the manner declined in he Mr. was nominated, and he has ELIA. to run.
Click image to open full size in new tab
THE ARRESTED BANKERS. How " Come Atcut-What the Bank Exemint Sass-A Peor Outleek for Depostless, [Correspondence of the Richmond Dispatch.] NORFOLK, May 13, 1885. The arrest of Messrs. W hitehead and Baine Brothers yesterday was not a surprise here, as the matter had been freely discussed for some time past, and it was something of an open secret that the arrests would be made immediately after the hearing of the injunction suit. The arrests were made on an affidavit filed by Mr. Keyser, bank examiner, who charged that the accused had, on or about the 31st of March, andat divers times prior thereto, unlawfully and wilfully abstracted and misapplied funds and moneys and credits of the Exchange Bank, the amount of which being unknown. This action was taken by the United States authorities, and nobody in Norfolk has anything to do with it. Indeed the sympathies of most people seem to be with the unfortunate gentlemen and their families, though everybody acknowledges that the arrests were unavoidable under the circumstances. Messrs. Whitehead and George M. Bain were too unwell to appear in court, and their recognizance had to be taken at home. The District Attorney wanted the bail fixed at $50,000, but the Commissioner fixed the amount at $10,000. The Bains had a long list of names of people who showed a disposition to go on their bond. I understand from a gentleman who saw the Bains this morning that the families of these gentlemen are prostrated with grief, and he says it made his heart bleed to see them in their agony. Messrs. J. G. and R. T. K. Bain exhibited no sort of feeling yesterday in the court-room, but bore themselves in a very dignified manner. I had a chat this morning with Mr. B. U. Keyser, the bank examiner, about the bank's condition. He says the bank was hopelessly insolvent long before the crash came, and that the $300,000 which they proposed to raise when the first examination was made, and which the officers claimed would have saved the bank, would have been but a drop in the bucket. " Why, the Bains owed the bank a million of dollars," said he, and what would $300,000 have been, to say nothing of some $500,000 more of almost worthless discounts. It had no bottom in it." He thinks the bank will eventually pay perhaps 50 per cent. to its creditors, but it will take some five years or more to settle up. The first dividend of 10 per cent. will be paid, he thinks, in about five months. He has every confidence in Mr. Peters, the receiver. As to the decision of the United States Court yesterday, he thinks it virtually a victory for Mr. Peters. He was asked as to what he thought of the prosecution of the officers of the bank, but was reticent on that subject. Can you cite a parallel case?" I asked. Yes; the Fish case in New York was a case in point, though the actions of Fish were worse than those of the Exchange Bank officers." The Virginia Baptist State Convention (colored) met in this city to-day. The following standing committees were appointed: On Permanent Organization Revs. J. Herndon and L. H. Bailey, Mrs. Nannie Anderson, R. H. Porter, N. Spiller, A. Thurston, W. Brown, T. J. Cleck, and H. Johnson. On Finance : Revs. D. King, H. Jameson, R. Wells, and S. W. Madden. On Foreign Missions: Revs. Barksdale, Cooke, Osborne, and Mitchell. On Educational Finance : J. J. Worlds, D. Morris, B. Harris, and H. Pannill. On Bible and Publications: J. E. Farrar, J B. Smith, and A. Truitt. At 1 o'clock the Convention took a ELIA. recess till 3 P.M.