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a 1 ITS PRESIDENTS MISPLACED CONFIDENCE THE CAUSE, Disobedience of the Admonition of the Directors Gives the Affair a Bad Coloring- The Erring Officer Infatuated with a Bold Speculator-Many Thousands in Concealed Acceptances. MIDDLETOWN, N. Y., Nov. 28.-The Middletown National Bank has failed and its doors were closed this morning. The failure was caused by its President, Thomas King, who accepted large drafts from Benjamin D. Brown, a grain dealer of Indianapolis, Ind., and Burlington, Iowa, without security. Mr. Brown has made an assignment. The capital was The $200,000, and its surplus $115,000. extent of his loss IS not yet definitely known. Depositors will lose nothing. President King takes all the blame made on himself. His recent advances were other without the knowledge of the officers and directors of the bank. An is his way from Washington. was a slight run on the banks here, but the latter is in no way There examiner easily. savings involved and will stand the run President King was considered one of ablest financiers in the country, and the the the bank was looked upon as one of most The solid run, in which the State. started on the savings quieted down when despositors bank, found that their money was forthcoming. The directors had announced that all demands would be met. The American Loan in and Trust Company sent up $30,000 Bank currency, and the First National also Bank helped. Examiner May arrived here at and the following notice was dis- of noon, played: "This bank is in the hands national bank examiners. No business mawill be done except the collection of tured All the paper.". banks in the county have slight being balances on collections, the highest with Bank, of Newburg, All these will be $3,000. the Highland paid. bank petitioned The board of directors of the the Comp- have of the troller unanimously Currency receiver. to Mr. apMoses D. Stivers and point Stivers is senior editor of the Press, Internal 14 years was Collector of New for Revenue of the Eleventh district of York. Houston & Conkling. dealers in grain a millers, and C. C. N. Ketchum, and wholesale grain dealer, have made firms had assignfor large amounts. Both They ments indorsed Brown's notes heavily. There are have made no statements. many rumors of other losers. THE BANK EXAMINER IN CHARGE. Bank Examiner George T. May, of the of Washington, is now in possession notified bank. In July last the directors credit King that Mr. Brown's Mr. President not be extended, but reduced. must King disobeyed the instructions, and of the the has gone under. The record the bank of Mr. Brown's drafts on a were kept by President which-he kept in his own book concealed from the other and bank acceptances officers. King possession of such in So far known more than $200,000 of as are out. It is the opinion acceptances best informed that the entire will-be capital the surplus of the institution and out. The directors are County Senwiped John G. Wilkin, United States D. C. ator Judge Van Wyek of Nebraska, Col. Dusenberry, Hon. W. H. Clark, Horatio PresiWilcox, A. H. Vail, U.T. Hayes, Corwin. dent R. King and Cashier Daniel C. resulted in run on the savings bank bank $20,000 The being paid out to-day. The is solvent and ready for any emergency. It President King is at his by thought here that he has profited infatuis not transactions, but that he was operthe with Mr. Brown. The latter's much ated ations have been very heavy, as handled as $500,000 of hispaper having been by the bank in a single week. COMPTROLLER CANNON'S ACTION. WASHINGTON, Nov. 28.-Mr. Cannon, to-day of the Currency, said to the Comptroller answer to inquiries in regard Bank, in the Middletown National N.Y., that he of in the bank last failure Middletown, trouble of special Wednesday examiner learned of the and ordered a take evening, to the bank at once and said of it. The Comptroller in July the report of the to charge proceed the examiner King, also that on was discovered that from was borrowing immedilast President, bank. it The directors indebtedness were largely of the notified that the to com- Mr. ately should be reduced to a point was subwith the law. Information been ply received that this had under sequently The Comptroller, however, being done. that the bank was not directthe belief managed, notified the be its coarter would not expire ors as the charter ed, few months (May, 1885), judiciously in a and that that, liquidate would steps its indebted- extend- should be at once The taken Comptroller to said, further. Mr. King, that ness. through the action of recently, has been crippled very serious the think there would be unless, he did bank not failure. loss to the public through its INSOLVENTS ARRESTED. CANTON, MISS., Nov. Stadeker -Alfonzo & Son, Stadeker, of the Nov. firm 15 of for J. $100,000 with assets which of failed $25,000, the firm, and were his brother arrested Henry, to-day late the on clerk for of conspiracy to defraud concealcreditors a charge of and Stadeker other assets & Son of by the firm. for They ing goods were admitted to bail to appear examination Tuesday. ILLINOIS BANK IN TROUBLE. AN ILL., Nov. 28.-The its doors First CARLINVILLE. Bank of this city closed arrangeNational the purpose of making to-day ments to for go into liquidation. Depositors will be paid in full. TOTAL OF THE WEEK. THE Nov. 28.-The business NEW occurring YORK, throughout the Mercan- counfailures to R. G. Dun Co.'s week in try tile reported Agency number for the last
