Atlantic National Bank (Providence, RI)

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NATIONAL BANK FAILS

Atlantic National at Providence Suspends Payment. Providence. R. I., April 14.-The Atlantic National Bank did not open for business today. A notice on the door said it had suspended payment.

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Providence Bank Suspends

Providence, R. I., April 14.-The Atlantic National bank did not open to. day and suspended payments. The bank had deposits of $2,300,000, capital of $300,000 and & surplus of $120,000.

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Bank Closes Doors

Providence, R. I., April 15.-The Atlantic National bank did not open for business yesterday. A notice on the door said it had suspended payment. The Atlantic National is one of the smaller banks in the city. It is capitalized at $225,000.

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Arrangements Were Begun yesterday for paying the depositors of the suspended Atlantic National bank of Providence by the Industrial company and the Union Trust company, which have offered to advance 60 per cent. on Atlantic National deposits.

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PROVIDENCE BANK'S FAILURE

Result of Unsound Business Methods, Not Defalcation. Providence, R. I., April 16.-It was reported yesterday that although unsound methods in the conduct of the business of the Atlantic National bank, resulting in its suspension with liabilities approximating $2,750,000, may be disclosed, there was no defalcation. The amount of uncertain paper held by the bank, it was learned, was the cause of the wreck. National Bank Examiner Balch, aided by his assistants, began yesterday an examination of the books.

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ATLANTIC NATIONAL BANK Of Providence, R. 1., Turned Over to John W. Schofield, as Receiver. Washington, April 16.-John W. Schofield, today, was appointed receiver of the Atlantic National Bank of Providence, R. I., which closed its doors a few days ago by order of its board of directors. This action was taken by the comptroller of the currency because of a report that a movement was being started to attach certain assets of the bank. In the hands of a received the assets are not attachable.

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Schofield Made Receiver Washington, April 16.-John W. Schofield today was appointed receiver of the Atlantic National bank of Providence, R. I., which closed its doors a few days ago by order of its board of directors. This action was taken by the comptroller of the currency because of a report that a movement was being started to attach certain assets of the bank. In the hands of a receiver the assets are not attachable.

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Providence

R. I., April 15.-Arrangements were made to-day to partially pay the depositors of the suspended Atlantic National bank through the Industrial Trust company and the Union Trust company, which have offered to advance 60 per cent. on Atlantic National deposits. The suspended bank has about 3,500 depositors whose accounts total $2,076,274. according to Cashier Peabody.

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WASHINGTON, April 16.-John W. Schofield was appointed receiver today of he Atlantic National bank of Providence, R. I., which closed its doors a few days ago by order of its board of directors. This action was taken by the comptroller of the currency because of a. report that a movement was being started to attach certain assets of the bank. In the hands of a receiver, the assets are not attachable.

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The stockholders of the Atlantic National Bank of Providence, R. L, which suspended, Monday, will meet, next Saturday, to formulate plans for a re-organization and continuation of the bank. A call for the meeting was sent out, Thursday, by President Percy W. Gardner, who declared that he believed there is a place in the community for the bank and that by taking vigorous action at this time, the stockholders can save their holdings.

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TELEGRAPH or PRIEFS New Hampshire legislature passed bill authorizing Public Service com mittee to prepare new schedule of railroad rates and fares. Cass Gilbert, architect of Wool. worth building says 100 story skyscraper, 1000 feet high, is possible, 0 provided sufficient base is given Receiver Schofield of Atlantic National Bank of Providence claims bank will pay 100 cents on the dollar to depositors. Senator Chambermin's resolution for abrogation of Hay-Pauncefote treaty, in opinion of state depart ment officials, will be confronted with contention that neither that treaty. nor Clayton Bulwers treaty can be

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SUSPENSION NOT DUE TO CRIME

Providence, May 13.-Nothing of a criminal character has been found relative to the suspension of the Atlantic National Bank, according to R. L. Curtis, who soon takes charge as permanent receiver and who said to-day there was still a chance that the bank would be reopened, although it was more likely the receivership would be permanent

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R. L. Curtis, Receiver of the Atlantic National bank, Providence, R. I., reported yesterday to Thomas P. Kane, acting comptroller of the currency, that he had found the bank insolvent.

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BANK STOCKHOLDERS ARE ASSESSED 100 PER CENT. Total of $300,000 to be Raised to Pay Atlantic National's Depositors. Providence, R. I., June 5-An asessment of 100 per cent. of the capital stock has been levied by T. P. Kane acting controller of the currency, upon the stockholders of the Atlantic National bank, which recently suspended. Notices of the assessment were received today. The total amounts to $300,000, which will be used to pay the depositors.

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ATLANTIC BANK CASE GOES TO GRAND JURY. Possible Violation of National Bank Act to be Considered, Washington, Oct. 1 -The circumstances surrounding the failure of the defunct Atlantic National bank of Providence, R. I., which has been under investigation by the United States attorney at Providence and special examiners of the department of justice, are to be presented to the grand jury within the next few days, it was learned here tonight. The question of violation of the national bank act will be considered, it was said, in order to fix any possible criminal liability. The affairs of the bank have been under investigation virtually ever since the day of its failure. The bank closed its doors April 14 last and two days later a receiver was appointed by the comptroller of the currency.

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METCALF ARRESTED FOR MISAPPLICATION$200,000 OFBANK. Edward P. Metcalf, Former Pres. of Atlantic Nat., Providence, Pleads Not Guilty And Is Held Under $50,000 Bail Grand Jury Finds 24 Counts. Three of the four New York men Providence, R. I., Oct. 9.-As an alleged to have been aiders and abetoutcome of the failure of the Atlantic ters were with associated companies National Bank, last April, Edward P. which have failed. The Dekays, who are brothers, were officials of the MerMetcalf, its former president, was chant National Packing Co., which arrested, this afternoon, on an indictwent into the hands of a receiver in ment charging him with the misap1901; Farror was formerly president plication of more than $200,000 of the of the Columbus Securities Co., a New bank's funds. In the indictment, Jersey corporation, which is now in which was returned secretly, last bankruptcy and Allen is a promoter night, by a special session of the fedand associate of Metcalf's in other eneral grand jury, Orieon R. Farror, Jas. terprises. F. Allen, Henry E. Dekay and John W. Dekay, all of New York, are named Metcalf gave himself up voluntarily, as having aided and abetted Metcalf coming to the federal court with his in the transactions which are alleged daughter and surrendering to United to have been illegal. Metcalf pleadStates Marshal Daniel R. Ballou. Efed not guilty and bail was fixed at forts will be made at once to appre$50,000 by Judge Arthur L. Brown. His hend the other four men and have attorney was given 10 days to change them brought to this city, the plea. A certified copy of the inThe affairs of the bank were dedictment with capiases for the arrest clared by government experts, who of the four New York men, were sent, have been doing the investigating tonight, to the United States marshal here, to have been in an amazing fiin New York. nancial tangle and most of its securiThe indictment covers 65 typewritties consisted of worthless paper and ten pages and containing 24 counts. stocks of the "wild cat" variety. Of The penalty is not less than five nor the 24 counts enumerated in the inmore than 10 years imprisonment on dictment 23 are for either purchasing each count. There is no option of a (Continued on Page Twelve.) fine.

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ANDREW J. McCORMACK, Auctioneer. REGULAR AUCTION SALE OF STOCKS AND BONDS. BY ADRIAN H. MULLER & SON, OFFICE, NO. 55 WILLIAM ST., WEDNESDAY, APRIL 22D, 1914,

at 12:30 o'clock, at the EXCHANGE SALESROOM, NOS. 14 AND 16 VESEY STREET. By order of Charles P. Robinson, Referee: 100 shs. Stamford Manufacturing Co., of Stamford, Conn. By order of R. L. Curtis, Receiver of the At-lantic National Bank, Providence, R. I. $47,000 Mexican National Packing Co., Ltd. Temporary 6 p. c. 1st and Special Mtge. Regst. Gold Bds., 1931. By order of Wm. M. Hoes, Public Administrator:

30 shs. Rock Island Co. common. 40 shs. Nevada Consolidated Copper Co. com'n 5 shs. The Mackay Company prefd. 25 shs. Nevada Utah Mines & Smelters Corpn. By order of Executors: 6 shs. Glastonbury Knitting Co. 10 shs. People's Trust Co., Brooklyn. 6 shs. Nassau Trust Co., Brooklyn. 10 shs. Westchester Trust Co. For account of whom it may concern: 177,500 shs. Aztec Petroleum Co. 50 shs. The Sydenham Corporation. 5 shs. New York County National Bank. 80 shs. Colwell Lead Co. prefd. 115 shs. Steel Package Co. prefd. $11,000 Mexican Northern Railway Co. 1st Extend, 6 p. c. Gold Bds., 1930. 1,141 shs. Gardner Crusher Co. prefd. 3.808 shs. Gardner Crusher Co. common. $500 The Jersey Pines Poultry Farm 6 p. c. Gold Bd., 1919. $4,000 Mount Royal Cemetery 6 p. c. Ctf. of Indebtedness, due Jan., 1920. $1,000 The Kensico Cemetery Ctf. of Indebtedness, due 1956. 200 shs. State Investing Co. 1 share New York Law Institute. $12,000 Loraine Ashland & Southern R. R. 2d Mtg. 5 p. c. Bds., 1963. 880 shs. American Water Works & Guarantee Co. Prefd. Ctf. of Dep. 25 shs. American Express Co. 37,500 shs. West Indian Development Co. prefd. 74.979 shs. West Indian Development Co. com. 2,500 shs. Caribbean Construction Co. 35,200 shs. National P. R. Co. of Haiti. $132,700 National R. R. Co. of Haiti Six-Year 6 p. c. Sinking Fund Gold Bonds. $4,000 Jay C. Wemple Company 6 p. c. Debenture Bonds, due July 10th, 1918. 6 shs. F. W. Wurster & Co. 20 shs. Union Pacific R. R. common. 10 shs. Corn Products Refining Co. common.

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SECURITIES AT AUCTION TO-DAY.

By order of Charles P. Robinson, referee: 100 shares Stamford Manufacturing Company of Stamford, Conn.

By order of R. L. Curtis, receiver of the Atlantic National Bank, Providence, R. I.: $47,000 Mexican National Packing Company, Ltd., temporary 6 per cent. first and special mortgage registered gold bonds, 1931.

By order of William M. Hoes, public administrator: 30 shares Rock Island Company, common. 40 shares Nevada Consolidated Copper Company, common. 5 shares The Mackay Company, preferred. 25 shares Nevada Utah Mines and Smelters Corporation.

By order of the executors: 6 shares Glastonbury Knitting Company. 10 shares People's Trust Company, Brooklyn. 6 shares Nassau Trust Company, Brooklyn. 10 shares Westchester Trust Company.

For account of whom it may concern: 177,500 shares Aztec Petroleum Company: 50 shares the Sydenham Corporation. 5 shares New York County National Bank 80 shares Colwell Lead Company, preferred. 115 shares Steel Package Company, preferred.

$11,000 Mexican Northern Railway Company first extend. 6 per cent. gold bonds, 1930. 1,141 shares Gardner Crusher Company, preferred. 3,808 shares Gardner Crusher Company, common.

$500 The Jersey Pines Poultry Farm 6 per cent. Gold bond, 1919. $4,000 Mount Royal Cemetery 6 per cent. certificate of indebtedness, due January, 1920.

$1,000 The Kensico Cemetery certificate of Indebtedness, due 1956. 200 shares State Investing Company. 1 share New York Law Institute. $12,000 Loraine, Ashland and Southern Railroad second mortgage 5 per cent. bonds, 1963.

880 shares American Water Works and Guarantee Company preferred certificates of deposit. 25 shares American Express Company. 37,500 shares West Indian Development Company preferred. 74,979 shares West Indian Development Company common. 2,500 shares Caribbean Construction Company.

35,200 shares National Railroad Company of Hayti. $182,700 National Railroad Company of Hayti six year 6 per cent sinking fund gold bonds.

$4,000 Jay C. Wemple Company 6 per cent debenture bonds due July 10, 1918 6 shares F. W. Wurster & Co. 20 shares Union Pacific Railroad common 10 shares Corn Products Refining Company common. 10 shares National Bank of North Hudson, West Hoboken, N. J.

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number of British financiers in the corporation and after several years the name of the organization was changed to the Mexican National Packing Company to conceal its iden- tification with American interests. The failure of the United States Banking Company of Mexico City, with which the organiation was con- nected, resulted in placing the pack- ing company in the hands of Henry DeKay as receiver. It was then that the attempt was made to finance a reorganization of the concern by the use of funds of the Providence in- stitution.

### Skillful Financial Juggling.

John DeKay went to England and busied himself with attempting the flotation of a bond issue through the medium of the London Stock Ex- change. As a means of aiding the project, the British and Mexican Trust Company was formed in Eng- land to invest in securities of the beef trust. The attempt to create a market for the securities on the Lon- don Exchange was skillfully managed, and many Englishmen were induced to take an interest in the concern. For the purpose of raising funds to finance the new company the three de- fendants engaged in large-scale kiting between Mexico City, New York, and London. As it took several weeks for the exchange of drafts between the various financial centers involved, and as these drafts were made out for pe- riods of twenty or thirty days, the kiting system netted the defendants the use of considerable sums.

### Amount of "Deal” Unknown.

In April, 1913, without a note of warning the Atlantic National Bank failed. Financial New England was shocked. The bank's stockholders lost everything. Receivers have been able to pay about 60 per cent to depositors. Immediately after the failure of the bank an investigation was started by the Department of Justice. Later Wrisley Brown was put in charge. The facts were presented to the grand jury and Metcalf and the two De Kays were in- dicted. Metcalf and Henry De Kay were arrested. It is said John De Kay was then acting as the official European rep-

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GETS PRISON SENTENCE.

Henry E. Dekay Helped to Wreck a Providence Bank.

Providence, R. I., Feb. 7.-Henry E. Dekay, who runs a farm in Virginia, uncle of the Dekay girl who mysteri-ously disappeared from Hull house, Chicago, recently, was sentenced in the United States court here yesterday afternoon to serve five years in Rhode Island state prison for participation in the wrecking of the Atlantic National bank of this city. He was liberated on $15,000 bail pending an appeal.

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End Chase Of 12 Years For DeKay

Providence, R. I., June 22.—(By the Associated Press.)—John Wesley DeKay, financier, gun runner and playwright, was back here today to answer a federal indictment for bank looting after eluding justice for 12 years. He was brought from London yesterday by a department of justice agent. In 1913 indictments were returned against him and four others for misapplying $200,000 of the defunct Atlantic National bank here. Two of the four have since served penitentiary sentences.

After fleeing DeKay was first heard from as a defendant in a suit in London, in 1914, through which a firm of jewelers tried to recover $15,000 for gems bought on credit. His secretary, a Miss Elliott, testified that most of his money had been spent entertaining Mme. Bernhardt, who was then playing in DeKay's Judas.

In the same year the French government unsuccessfully sought his extradition on a charge of the Belgian government that he had obtained 315,000 francs under false pretenses, when he sold to Belgium rifles bought in Spain and paid for by Mexico.

After he took refuge in Switzerland, the United States failed in 1922 to extradite him on the bank failure charges. At Lauzanne he countered with sensational charges against Samuel Untermyer and Will H. Hayes in the Mesopotamia oil fields controversy, and argued that one reason for extradition proceedings was his publication of a pacifist book during the World war.

Scotland Yard nabbed him when he returned to London early last year. He fought for a year to prevent extradition to the United States.