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# Suspension of the Broadway Savings Bank, in St. Louis.
The Bank's Depositors Left to the Extent of About $700,000.
Of Course, They Will Get Every Cent, and There Will Be Money Loft.
The Lowell, Mass., Five-Cont Savings Bank Enjoined from Doing Business.
Deposits of $2,280,000 Already in the Sinking Institution.
ST. LOUIS.
Special Dispatch to The Tribune.
ST. LOUIS, May 23. The news of the suspen-sion of the Broadway Savings Bank created quite nsensation here this morning. The Board of Directors held a lengthy meeting last night, and, shortly before midnight, resolved that the doors should not be opened at the usual hour, to-lay. There had not been an intimation in the general business community that the bank was in a failing condition. It was supposed that there was no safer monetary institution in the elty, its stock all along having commanded a good price. This morning Mr. J. Phill Krieger, Cashier of the bank, was Interviewed, and said that the cause of all the trouble was that some of the Directors had worked against the bauk. One of the Directors, in particular, had done so. He went to work and drew out all his own money some time ago, and then per-suaded his friends and relatives to follow the same course. The Cashier further sald: "I had a loan of $10,000 in New York, and some of the -Directors refused to go on a note of renewal, s0 1 was forced to pay that note. I have niso had to pay $50,000 over to the School Board, and, owing to the action of one or two of the Directors, there have been $100,000 worth of denoalts drawn out in the last week or so. Since the first of the month, counting the above amount, I have had to pay out $220,000. This is what caused the suspension." It is proliablo that there will be some very sensatlonnt devel-opinents. The State law makes it a crime for the Directors to take deposits when they bellevo the bank to ba in a falling condition. But few depositors put in au appearance at the bank to-day, and but little excitement seemed to exist over the suspension.
To the Western Asiactated 'rear.
ST. LOUIS, May 22. The Broadway Savings Bank closed is doors this morning, in accord-ance with the decision reached by the Directory at a late hour last night, and made an assigu ment to John Dierborger. The principal reason for the suspension is said to be the withdrawal of about $100,000 of deposita since May 1, but there are reports current that some of the Di-rectors of the bank have worked aralust the in-terests of the concern, which aided materinily in bringing about the failure. The. Habilities are put at about $700,000. Its assets cannot be stated, but the President of the bank tlinks the depositors will be paid in full, and there will be something over for the stockholders. Considerable excitement exlated among the de-positors today, and there has been quite a crowd about the bark all the morning, but It has been orderly. The dubositors in some other savings institutions felt some ubensiness, and there have been rumors of runs, etc., but none havo yet occurred.
Among the deposits in the bank is about $30,000 belonging to the Pablle School Board, but this is secured by a good boud, for a much larger stmount than that
As a thunderbolt will the announcement strike the people of St. Louls this morning that the Broadway Savings Bank, an instiintion which was regarded as a marvel of prosperity und fairness, has closed its doors. It had for Its President J. J. Philip Krieger, Sr., a man in whom St. Louis has often placed important trusts, and a man who has never proved un-worthy of the confidence reposed in hum; and it is nut just to say here that in this calamity there yet appears nothing which will detract in the lenst from the reputation which he has so well earned.
At 4 o'clock yesterday afternoon there was a meeting of the Board of Directors of the institu-thon, and it was then that the determination to close was arrived at. At half-past 8 o'clock last night they again met, and remained in session nearly three hours, disenssing the situation, and making sure that they were not neting against the interests of the bank in what they had de-elded to do. They adhered to their purpose, and shortly before midnight a brief advertise-ment was brought to the Republican ofllee mak-fug the cold announcement of closed doors to-day.
In view of the fact that the public would not be satistied with the paucity of information for which the notice Is conspicious, a Republican re-porter was dispatelied immediately to the rest-nee dence of Mr. Krieger. No. 815 Garrison avenue, and shortly after midnight he arrived there. The ring at the bell was promptly answered by Mr. Krieger himself, he having arrived at home but a few moments before, and he said that he was not surprised at the call. He would cheer-fully give what Information ho could in regard to the suspension. In answer to the reporter's questions Mr. Krieger gave information which, arranged in order of events, was as follows:
"The Broadway Savings Bank was establish-wised by my son in 1869, and opened up to business on the 4th of March, the day when Gen. Grant was inaugurated as President. Its capital stock was originally $300,000, but last year, shortly before the 1st of August, at which time, as you know, all the banks lind to fall in tine under the State lam, we reduced it to $150,000. We have had an examination every three months, by a committee of directors, us in other banks, and statements of the condition of the bank havu been submitted as a result of unch examination. I knew, however, that in making these oxamina-tlous, all the assets, without discrimination, were considered as good, the assets in New York banks being figured in as cush. Under that sys-tem of calculations, wo always came out all right.
"But in the early part of last April I insisted upon having a special examination made and the assets all carofully arofully assorted and valired at what they were netually worth. Accordingly a com-mitten consisting of Henry Podriman, the Vice-President, Morris Lyons and Henry Obermuel-jer was appointed and they made their examina-tion on April 8. They worked with the strictest care, for I had only been President a short time, and I wanted to know the exact situation. Mr. 1. Bargen was my predecessor, as President, and when he took mck last May I was elected to IIII his place. I had my own private business to at-tend to at that time, and consequently I trusted almost entirely to my cashier to keep matters straight.
"I was re-elected President In January, how-ever, and then I determined that, as I could not attend properly to my own business and that of the bank too, and as the Intter was of mich the greater importance, I would abandon my private business, which I did. Well, as I sald before, this examination was made on April 8. We determined not to count anything us a good asset which had the shadow of a doubt upon it. Our chlef assets were exchango maturing, and owed by other banks. We put aside all assets which wa deemed worthlose, or nearly so, in one class, In another we put such assets as had a shadow of a doubt attaching to them. In the third we put such assets as wo regarded as good as cash. Wo counted up the perfectly good assets, and then counted up the liabilities. Deducting the total of liabilities from the total of good assets, and we bad a balance of $181.-000 to be applied on stock. Our capital stock at that time was $150,000, with a surplus of $128,000. Thus, as you see, our capital stock was impaired to the extent of $10,000, if we han catly considered only our good assets,
"The question with us was, What is the law, and how do we stanal An examination of thα» law showed that the capital stock must not be Impaired more than 25 per cent; und that the instant it declines to that ilguro the bank must ccaso doing business, Twenty-five per cent of $100,000 is $37,500. Hence the extent of our impairment was not witain $21,000 of the limit fixed by law, without considering that the doubtful asscte must realize something for us. We took no action at that time, althougia I did not like the position of things. I kept a close watch on the affairs of the bank, and sa little encouragement to contiune in an attempt to regain our footing. Yesterday morning made ΡΠΈ ΠΎxΠ°mination of the books, and I found that our deposits had fallen off just $100,000 since the 1st of May. I determined to tako ne
