Article Text
What Lacey Says. Nov. 2.-Mr. Lacey, compreceived informathis morning that the Maverick national bank of Boston had closed its doors. He said that the examiner was in a Chicago bank, and that a receiver would be ap-
Maverick National Bank (Boston, MA)
Episode Information
- Episode UID
67701103- Episode Type
- Run → Suspension → Closure
- Bank Type
- national
- Bank ID
-
6770national - Charter Number
- 677
- Start Date
- November 2, 1891
- Location
- Boston, Massachusetts (42.358, -71.060)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
e49fcd6bb1e9afc5
Response Measures
Borrowed from banks or large institutions, Clearinghouse loan, Full suspension, Books examined
Clearinghouse involved: Yes (loan, examination, or other measures)
Receivership Details
- Depositor recovery rate
- 90.2%
- Date receivership started
- 1891-11-02
- Date receivership terminated
- 1898-03-31
- OCC cause of failure
- Excessive lending
- Share of assets assessed as good
- 43.0%
- Share of assets assessed as doubtful
- 49.0%
- Share of assets assessed as worthless
- 8.0%
Description
Cashier's suicide and alleged embezzlement triggered the run; receiver appointed and bank closed.
Events (6)
1.
December 31, 1864
Chartered
- Source
- historical_nic
2.
November 2, 1891
Receivership
- Source
- historical_nic
3.
November 2, 1891
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Cashier Irving A. Evans's suicide and alleged theft/embezzlement (~$200,000) precipitated heavy withdrawals
- Measures
- Bank was forced to close after heavy withdrawals
- Newspaper Excerpt
- the suicide of Irving A. Evans ... caused a disastrous run on the bank
- Source
- newspapers
4.
November 2, 1891
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Suspension decided following the run and discovery of fraudulent conduct by the cashier
- Newspaper Excerpt
- announcement was made that the Maverick national bank of Boston had closed its doors
- Source
- newspapers
5.
November 7, 1891
Receivership
- Newspaper Excerpt
- Mr. Beal has taken his commission and is now receiver of the Maverick National Bank in Boston.
- Source
- newspapers
6.
January 9, 1892
Other
- Newspaper Excerpt
- cash collections of the receiver ... amount to 38.3 per cent of the deposits at the time of suspension
- Source
- newspapers
Newspaper Articles (22)
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ANOTHER BANK IN TROUBLE. - The controller of the currency has received information that the First National Bank of Damariscotta, Me., had been forced to suspend payments in consequence of the failure of the Maverick National Bank of Boston. He said that the bank is in good shape and will undoubtedly be able to resume business in a short time.
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in view of the disclosures connected with their arrest makes it doubtful if the 100 per cent. assessment to be levied on the stockholders will yield anything on the 2,300 shares held by those gentlemen. This view of the situation corresponds with that held by others who are posted in the matter. DRAGGED DOWN BY THE MAVERICK. Damariscotta, Me., Nov. 4. -The Maverick national bank of Boston held $40,000 of the funds of the First national bank of this city. The news of the failure of the former reached here Monday morning, and a run was at once started on the First national. It soon suspended payment and closed its doors.
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-The suspension of the Maverick National Bank of Boston, one of the largest ¹n New England, is the latest sensation in financial circles. It was decided upon late Sunday and is a direct result of Irving A. Evans's suicide, which caused a disastrous run on the bank last week. It is said now that the depositors will get 75 cents on a dollar. We do not learn that the two national banks in this city are very much interested in the suspension. The Burrill National Bank gets off very nearly scot-free and the First National is only slightly burnt.
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THE sponge industry of the Bahama islands employs 500 small vessels and about 5,000 men. This industry is being rapidly developed on the Florida coast and the sponges of that locality are said to be finer than on the Bahamas. THE Maverick National Bank, of Boston, has closed its doors. Its chashier commited suicide after gett ing away with about $200,000 of the bank's funds. A run was commenced on the bank and it was compelled to close. It is thought depositors will be paid in full.
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COUNTY AND VICINITY NOTES. The Brandon graded school has added a business course, in which stenography and typewriting are taught. Frank Stoddard's family in Warren enjoyed a strawberry shortcake October 12, from berries picked the day before. The uew hotel at Brandon is approaching completion. The walls are finished, the windows will be in presently and the slating is in progress. Mr. and Mrs. Henry E. Bissell of East Shoreham sailed on Saturday from New York for Australia by way of London. The sheep which Mr. Bissell goes out to sell went from Boston last week. The death IS announced, at Tacoma, Wash., on Sunday of Mr. W. W. Reynolds. He was formerly of Brandon and Rutland, where he was for many years superintendent of the Howe scale works. John O'Hare of Brandon, who was indicted by the Rutland county court for liquor-selling and skipped his bail, was arrested on a bench warrant the other day and had to give bail in $600 for appearance when wanted. The Maverick national bank of Boston, which went to pieces the other day. was the correspondent in the city of a dozen or more Vermont banks, among them the Farmers' national of Vergennes. Such arrangements were made, however, that drafts were taken care of. Levi M. Bates, who was drowned at New York a few weeks since and buried at Bristol, carried $174,000 of life insurance in 13 companies. There was at first some suggestion that his death was not wholly accidental, but 12 of the companies have signified their intention to pay up in full. The laying of rails on the Bristol railroad will be finished this week and it is the intention to begin the running of trains regularly on the 15th inst. The plans for the depot at the Bristol end providef or a building 28x44 feet in size and one story high. The women's waiting room will have a fireplace and easy chairs and the floors of the building will be of birch. It will be erected this fall.
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Heavy Bank Failure. BOSTON, Nov. 2.-There was great excitement in financial circles to-day when the announcement was made that the Maverick National bank had suspended. It was considered one of the strongest institutions in the country and had deposits amounting to over $17,000,000. No particulars were given out to-night. It is believed the closing will not be permanent.
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Mr. Beal has taken bis commission and is now receiver of the Maverick National Bank in Boston.
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THE MAVERICK. BostoN-The National Banks' Asx sociation decided to protect the Maverick's depositors. Col. French says he has not assigned and with careful management the Mayerick's stockholders and depositors will get back all their money. The suspension has caused no surprise. The general opinion is that the action of the asso-
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Maverick Bank Trouble. BOSTON, Nov. 9.-Receiver Beale to. day issued a lengthy statement of the affairs of the Maverick National bank at the close of business Oct. 31, as shown by its books. As compared with Sept. 25, loans, bond accounts, cash with reserve agents, loans to banks and specie had been greatly reduced. Deposits at the date of suspension, including certificates of deposit and deposits of banks, aggregated $8,260,000, as against $8,910,000 five weeks before, a loss of $1,600,000, of which $734,000 was a falling off in individual deposits and $500,000 in bank deposits. Thus far everything is found to have been systematically conducted and all accounts balanced upon the books. The only difference thus far announced is inadequate collateral behind the loans to directors. There was no blanket endorsement on file, as has been stated. Today's statement is gratifying in that it shows less than $3,000,000 of individual deposits outside of the deposits of the banks and bankers at the time of failure.
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Comptroller Lacey's Opinions. Comptroller Lacey expressed the opinion that the institution would be able to declare a dividend of at least 85 per cent. and possibly more. "As investigation proceeds," he said, "there is a more cheerful feeling as to the assets of the bank, and the judgment of those best informed is that larger dividends may be realized than was at first anticipated. It is gratifying to me to learn that public confidence has been wholly unshaken as to the solvency of the other Boston banks. In my opinion this confidence is well founded, for I know of no bank which is not fully entitled to it. "The fact that the associated banks have unanimously offered to advance sums to the depositors which may aggregate several millions of dollars, in addition to meeting all the proper demands of their own customers, is evidence that the banks in this city are unusually well prepared for any emergency which may arise. It is also a matter of congratulation that interior banks, so far as has been now ascertained, are not embarrassed by the temporary locking up of the funds by the failure. The settlement of affairs will proceed with the utmost despatch and both myself and the receiver agree that A Dividend Shall be Declared at the earliest practicable moment; and it is to be hoped that every creditor of the bank will promptly present his claim for allowance, in order that a dividend may not be delayed for want of promptness on the part of claimants in making their proofs. "It is evidence of an unusually healthy state of financial affairs generally when so important a failure can occur with so little effect in disturbing public confidence, and without interfering with the facilities granted by banks to their legitimate customers." It is said that there are several Boston capitalists who are discussing the feasibility of re-opening the Maverick bank under a new name. They cite the fact that the location is an excellent one, that the rooms are commodious, and that the facilities for doing a large business are hard to be surpassed. Mr. Potter expresses the opinion that any syndicate with capital could take hold of the plant and make money. Mr. Lacey Vindicated. Secretary Foster denies that he has ever disapproved of the action of Comptroller Lacey in connection with the Maverick National bank or criticized Mr. Lacey's conduct. The secretary further says, speaking of his own suggestion that another examination of the bank be made when he was informed that Potter had borrowed over a million of its funds: "I think the comptroller was very prudent in his suggestion that an examination made so soon after the preceding one would excite comment to the injury of the bank; and, besides, the bank examiner was sick. Of course I did not examine the report of the examiner, but took the truth of it for granted; and I have no doubt that every statement made to me by Comptroller Lacey was absolutely true. "The examiner, it appeared, was of the opinion that the bank was solvent. and that in due time the irregularities would be properly adjusted. That is exactly what was said, as I remember. There was no suggestion on the part of the examiner that the bank was insolvent or that he had any serious question as to its solvency. That is my memory of the statement of the report of Examiner Magruder."
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A STATEMENT FROM RECEIVER BEAL. RESOURCES AND LIABILITIES OF THE BROKEN MAVERICK BANK. [Br TELEGRAPH TO THE TRIBUNE] Boston, Nov. 9.-Controller Lacey, Bank Examiner Ewer and Receiver Beal met at the Maverick Bank early this morning and had a long conference. Thirtyeight of the sixty clerks formerly employed at the Maverick were in their places to-day and the work of getting ready to open the bank for the transaction of business with the receiver will be pushed rapidly. A bank president when asked to-day who the sureties were upon the receiver's bond replied that he did not know and he had heard no names mentioned. but he should not be surprised if James H. heal, the receiver's father, were one, and J. Montgomery Sears another. When asked as to the truth of the statement that it was a not uncommon practice for clerks. typewriters and other irresponsible persons to sign notes, he replied that, to the best of his knowledge and belief, the statement was false. "We do not do business in any bank in that way," said he, "and I believe that if it has been done at the Maverick, as claimed it is a practice that is peculiar to that institution." Receiver Beal furnishes the following as the state of the Maverick National Bank, as shown by its books at the close of business on October 31, 1891: Resources-Time loans, $2,749,981 28; demand loans, $3,416,617 United States bonds at Washington, $50,000); United States bonds on hand, $33,650; sundry bond account, $722,947 85; sundry bond account No. 2, $108,504 73; called bonds for redemption, $100; real estate, $47,028 61; New-York reserve agents, $288,842 05; furniture and fixture account, $42,637 75; sundry banks, $795,582 49; expense account, $12,263 75; interest account, $7,937 21; premium, $4,475 27; SOVereign account, $114 79; exchanges for Clearing House, $331,452 25; specie, $337,838 50; legal tenders, 8597,650; reserve at Washington, 5 per cent fund, $2,250; other bills and checks, $137,972 46; total, $9,687,846 63. Liabilities-Capital, $400,000; surplus fund, $800,000; profit and loss, $110,708 6 discounts, $20,463 61; commission account, 55; profit telegraphic transfers, $212 36; dividends, $100; deposits, $2,951,992 92; certified checks, $48,029 5 certificates of deposit, $110,578 74; banks and bankers, $5,200,756 27; circulation, $45,000; total, $9,687,846 A comparison of this statement with the one issued in September shows that between September 25 and October 31 the bank account was reduced by $117,000, and the loans were reduced by $330,000 from the amount of the loans one month before the failure. The cash with reserve agents had been reduced from $963,000 to $289,000, and the loans to banks have come down from $1,047,000 to $796,000. Exchanges on the Clearing House had been reduced from $635,000 ,to $331,000, and the specie from $647,000 to $337,000. Legal tenders show an increase of from $490,000 to $597,000. Deposits up to date of suspension, including certificates of deposit and deposits of banks and bankers aggregate $8,260,000, as against $9,910,000 five weeks before the suspension, which shows a loss of $1,600,000 in deposits. Of this, $734,000 was a falling off of individual deposits, and $530,000 in banking deposits.
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THE MAVERICK BOOKS BALANCE. A More Favorable Statement of Condition Than Was Expected. BOSTON, Nov. 9.-Receiver Beal gives this as the state of the Maverick National Bank, as shown by its books at the close of business October 31, 1891: Total resources, $9,687,846, total liabilities the same. As compared with September 25 loans had decreased in the month before the failure by $330,000. The bond account was reduced by $117,000. The cash with reserve agents has been reduced from $963,000 to $289,000, and the loans to banks had come down from $1,047,000 to $796,000. Exchanges for clearing houses were only $331,000, against $635,000 upon the previous date. Specie has been reduced from $647,000 to $337,000, but legal tenders had increased from $490,000 to $597,000. The deposits at the time of the bank's suspension, including certificates of deposit and deposits of banks and bankers, aggregated $8,260,000, as against $9,910,000 five weeks before, a loss of $1,600,000 in deposits, of which $734,000 was a falling off in individual deposits and $500,000 a falling off in bank deposits. The Maverick had a very large business. its outward mail averaging from 600 to 800 letters a day, and the posting of 1,000 letters was not an unusual occurrence; but everything is found thus far to have been systematically conducted, and all accounts balance upon the books.
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The Controller and the Suspended Banks. Mr. Lacey, controller of the currency, returned to Washington yesterday from Boston. He said that the national banks there, with the single exception of the Maverick, are in good condition and that there is no prospect of any further trouble. In his opinion the creditors of the Maverick Bank will receive at least 85 cents on the dollar. He said also that the Damariscotta National Bank will probably be able to resume business in a short time. The Corry National Bank of Pennsylvania is in a bad condition and a receiver will be appointed in a few days to wind up its affairs.
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HAD OVER EIGHT MILLIONS Big Deposits In the Maverlek Bank When It Went to Pieces. BOSTON, Mass., Nov. 11.-Receiver Beal furnishes a statement of the Maverick National bank, showing that according to its books at the close of business, Oct. 31, its resources were $9,687,846. As compared with Sept. 25 loans had decreased in the month before the failure by $330,000. The bond account was reduced by $117,000. The cash with reserve agents had been reduced from $963,000 to $389,000 and the loans to banks had come down from $1,047,000 to $796,000. The deposits at the date of the bank's suspension, inc.uding certificates of deposit and deposits of banks and bankers, aggregated $8,2.0,000, as against $9,910,00 tive weeks before, a loss of $1,600,000 in deposits, of which $ 34,000 was a falling off in individual deposits and $500,000 a falling off in bank deposits, The Maverick had a very large business, its outward mail averaging from 660 to 800 letters a day, and the posting of 1,000 letters was not an unusual occurrence, but everything is to nd ithus far to have been systematically conducted and all account; balance upon the books. The only dineren e thus far announced is the ina lequate collateral b hind loans to the directors. There was no blanket indorsement on file, as has been statedAll the notes and indorsements were properly and regularly made within the letter of the law.
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MANERICK BANK. BostoN-The Maverick National Bank did not open for adjustment of accounts today as has been stated. Receiver Beal says: "The bank will be open for adjustment of its business at the earliest possible moment, but 1 am not ready to name the day."
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THE LATEST NEWS. parks from the Wires--Most Important Events Throughout the World for a Week. NEW YORK. Dec 1.-Phy sicians say yrus Field may not live through the ay. Three members of the Field re under arrest. TACOMAH. Wash., Nov. 30.-Distinct hocks of earthquake were felt in this ity yesterday afternoon. Port Townend and Olympia also report shocks. To damage done. BOSTON, Nov. 30.-The Maverick ational bank was opened this ng and the book keepers are deliverng receiver's certificates to depositors ho have proved their claims. GALENA, Ill., Nov. 30.-The mercury ast night fell to 15 degrees below zero. The Mississippi river, which was clear f ice Thursday, is now frozen from hore to shore. The weather is the oldest ever known here in November. RIO JANERIO, Dec. 1.-There is larming increase of yellow fever his port. The disease has assumed erious a form that the embarkation f government troops for Rio Grande o Sul and Santa Catalina has been emporarily suspended. Mrs. Duncan, of Washington, D. C., T S A., whose husband, an American, ttempted to murder her last May ear Bettwsy Boed, in Wales, and who as remained at Festinog since the age, has just been delivered of a oth mother and child are doing well JACKSON, Miss., Nov. 30.-Bill Nye, he famous humorist, who fell from he opera house gallery into a pile of umber at Yazoo City Saturday night, as considerably shaken up, but not eriously hurt. He passed through his city yesterday morning en or New Orleans, where he is billed to ecture. NEW ORLEANS, La., Nov. 30.-The hain building of a frame structure sed as a library, and several small uildings, belonging to Straight ersity for colored people, were troved by fire this morning. Theloss ; $30,000; insurance unknown. The uildings were owned by the American Issionary Association of New York. ODESSA, Russia. Nov. 30 ---- An outcry as been raised that Zemstvo agents re paying fancy prices for rye that 0 adulterated with sand and other aterials that it is unfit to eat. and lso that they are buying wheat rices above the market rate. It eared that the outery will put a ) the contributions of people charit bly inclined. Damage reaching $150,000 was inlicted last night by a fire in the ently constructed building of the Chicago Arc-Light and Power any at Washington street bridge, Chicago. The blaze was started wo electric light wires sagging ach other. The Excelsior Cork Cut ing Company was a considerable y the conflagration. RONCEVERTE. W. Va., Nov. ead end freight collision occurred he west end of town this morning o'clock, which resulted in thedestruc ion of two engines and several nd the death of Freman W. M. Carter, f Hinton, and the engineer of rain was pretty badly scalded. Sev ral brakemen were injured. perator's carelessness caused vreck. LEXINGTON, Va., Nov. 30.-A shoot ng affray occurred here Saturday ight in a disreputable house. nan unknown was shot in the 'he parties have been arrested,
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Maverick Bank Cash Collections. BOSTON, Jan. 8.-The cash collections of the receiver of the Maverick National bank deposited with the assistant United States treasurer, for the benefit of the creditors, amount to 38.3 per cent of the deposits at the time of suspension.
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Maverick Bank Collections. BOSTON, Jan. 9.-The cash collections of the receiver of the Maverick National Bank deposited with the Assistant United States Treasurer for the benefit of creditors. amounts to $3,189,000, or 38 1/3 per cent of the deposits at the time of suspension.
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This Date in History-Nov. 3. 1492-Columbus, still confident of reaching the mainland of Asia and the city of the great khan, also that Cuba was Cipango and gold abundant there, turned westward and passed among a group of small islands, which he called Islas de Arena, supposed to be the present Mucaras islands. 1831-Ignatius Donnelly, sensational writer and author of many novel theories in literature, science and civil government, born in Philadelphia; now "running" Weaver in Minnesota. 1890-The Canadian government decided to reduce postage from three cents to two throughout Canada and to the States. The Grand hotel at San Francisco was burned. 1891-Great frauds discovered in the management of the Maverick National bank, Boston, and the officers arrested.
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Bought In by the Receiver. BOSTON, Dec. 19.-The collateral of Irving A. Evans & Co., deposited in the Maverick National Bank as security for the indebtedness of the firm to the bank. was bid in to-day by Receiver Beal of the bank at $70,719.34.
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A $50,000 Attachment. BOSTON, March 1.-An attachment for $50,000 has been filed in the registry of deeds at Lawrence against Charles W. Clark of Andover at the instance of Thomas P. Beal, receiver of the Maverick National bank of Boston.