084fa606Accommodated withdrawals, Public signal of financial health
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GRAND RAPIDS, Mich , Oct. 17 - -The R G. Peters big failure attracts much attention here. Exciting zumora of the solvency of the Fifth National bank caused a a big run on that institution this morning. The money is paid out as fast as it is called for and the directors assure everyone that all the money in the bank is safe.
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THE BIC MICHICAN FAILURE. Widespread Effects of the Disaster. Lumber Yards Attached. CHICAGO, October 17.-Private advices received here today from Manister are to the effect that the Manister Bank and Butlers & Peters' Salt Company will pull out of the failure of Peters & Co. all right. It is predicted in financial circles in this city that at least two hundred concerns. mostly in Michgan and Wisconsin will be seriously affected by the Peters failure. The Wisconsin Fire and Marine Insurance Company began attachment proceedings against the Peters company this afternoon for the sum of $5000. This afternoon the sheriff levied on the stock in their lumber yard. Higbee, Peters & Co. of this city had their property attached. It consists of $90,000 worth of lumber and $10,000 other assets. GRAND RAPIDS, Mich., October 17.-R. G. Peters' big failure attracts much attention here. Exciting rumors in regard to the solvency of the Fifth National bank caused a big run on that institution this morning. Money was paid out as fast as it was called far. The directors assured every one that all who had money in the bank were safe. GRAND RAPIDS, Mich., October 17.-Arthur Meigs & Co., in which R. G. Peters holds a half interest, went under last night, as a result of the Peters failure. Mortgages have been filed aggr gating $276,600, covering everything the firm owns. MANISTEE, Mich., October 17.-Oberlin College, Olivet College, and the Congregational Church Theological Seminary of Chicago suffer from the failure of R. G. Peters.
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MICHIGAN'S BIG FAILURE. The Assignee Claims That the Assets Will Exceed the Liabilities. SAGINAW, MICH., Oct. 17.-Albert M. Henry, assignee of R. G. Peters & Co. of Manistee, says though no schedule has been prepared he does not think the liabilities will exceed $2,000,000, and the assets, though largely scattered, will exceed that amount. He attributes the failure to over expansion and the close money market. Friends of Peters say the company's ussets will care for the liabilities. Peters' ind vidual liabilities are probably $2,500,000, and the nominal assets are considerably larger. The Peters Salt and Lumber Company expect to continue business under a receiver. Mr. Peters, besides vast quantities of timber land, in Michigan and Wisconsin and asilver mine in Canada, has a large plant at Brewton, Ala., and another at Cypress, N. C. LARGEST MANUFACTURER IN ALABAMA. MONTGOMERY, ALA., Oct., 17.-The Peters Lumber Company was the largest lumber manufacturing company in Alabama, if not in the yellow pine territory. THE ALABAMA COMPANY ASSIGNS. Special to the Mornin g News. PENSACOLA, FLA., Oct. 17.-As a result of the failure of the R. G. Peters Lumber and Sait Company of M anistee, Mich., announced in the Associated Press under date of Oct. 16, the Peters I umber Company of Alabama to-day announced an assignment to J. A. Prootor, their secretary and treasurer. The liabilities and assets are not given, but the former are known to be enormous and are due mainly in the immediate vicinity. The Michigan branch of the concern lately had a mercantile rating of $5,000,000 over and above all indebtedness. The Alabama company have lands and a plant worth nearly $2,000,000, and were rated with unlimited credit. They out 150,000 and dressed 60,000 feet of lumber a day, employing 150 hands around the mills al ne. The failure will scarcely affect the condition in this market, the output having been mainly shipped to the west. Attachment proceedings have been begun by several corporations against the property of R. G. Peters, or concerns with which he is connected. Several of the banks now hold his paper, but all assert that they are secured, although they did bring attachment suits. It is said at least 200 concerns, large or small, mostly in Michigan and Wisconsin, are affected by the failure. Peters has sold his interest in the Higbee & Peters Lumber Company to Pardee, Cook & Co. The failure caused a big run on the Fifth National Bank of Grand Rapids, Mich., to-day. The bank paid de positors and assured every one it was all right. NORTH CAROLINA PROPERTY IN GOOD SHAPE. GRAND RAPIDS, MICH., Oct. 17.-In an interview Mr. Peters says that Butters & Peters of North Carolina are in good shape. The Peters Lumber Company of Brewton, Ala., owed not over $50,000 or $60,000 to outsiders in addition to what it owed him. The Peters Trust Land Company of Alabama has its lands all paid for. A dozen other companies which Peters named as being connections of his are in the west.
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EXCITED DEPOSITORS Cause a Small Panie at the Fifth National Bank THEY CLAMORED FOR THEIR MONEY The Institution Meets the Shock With out Flinching and $63,900 was Paid Out-President Dunham Resigns More About the Failure The Fifth National Bank is in a sound financial condition. This is the latest intelligence, and its authenticity cannot be doubted. a Yesterday morning, by reason of sensational article published in the Democrat, the depositors became alarmed and made a run on the insti a tution, which nearly resulted in panie. Every demand was met unhesstatingly, however, and at the closing hour $65,000 had been paid out. When the bank opened at 9 o'clock there was only $34,000 on hand. A crowd stood about the doors, and when they were thrown open they rushed in Cashier Fowler was at his window prepared for the emergency. He waspale, but cool as a cueumber. At his side, on a deak, was a pile of currency, tied up in packages of $500 each. Then there were piles of gold and silver in large amounts. The first man to step up was a Bridgeat. merchant. who has done business with the bank ever since it started. He passed over his book, at the same time demanding his money. His account figured up, and he was paid. The crush was so great that could hardly getout. "Don't crowd. gentlemen, you will all get your money. Ob, this bank solid. We won't fail iu a hundred years. Who's next?" Theseand other remarks were made by Cashier Fowler agoodnaturedmanner. One by one the mob was waited on. Finally President Mather, of tue Howard City Bank, pushed his way in. He made an excuse that he had urgent necessity for money which the bank owed him. He presented his credentials, and $5000 was handed out to him. Funny the president of another bank should become alarmed,' observed the cashier. By this time the crowd had increased to fully 200 people. Many of them were idle curiosity seekers. While others were almost frantic in their ex. citement. An old woman, with unkempt hair. dressed in an untidy calico wrapper with rolled up sleeves edged her way in. "I want my money," she exclaimed breathlessly. "You shall have said the cashier. Her book showed $500 to her credit. She put it in & dirty old handkerchief and started away. From appearances she bad just come from her kitchen, and in all probability she couldn't be induced to again deposit her money even in the vaults of the United States treasury. The priest of St. Mary's Church came in looking very much like a frightened man. He presented a check for $4000 and received the packages of greenbacks. These be stowed away in the capacious pocket of his great overcoat and left. His action seemed to give fresh impetus to the panic and soon many members of his congregation were demanding their money C.G.A. Voigt, of the Voigt Milling Company, came very quietly and posited $2600. About twenty Germans who were awaiting their turn saw him do and their fear was allayed. They went away feeling confident that the bank was all right. Father Ponganis had confidence in the Fifth National. He did not demand his money. but made a deposit of several hundred dollars. One man, probably the most excited of all. rushed up to the window. About $1800 was paid over to him so quickly that he shook like an aspen leaf. He glanced about him and saw one of the directors. Going up to him, he said: "Ido not know what I am going to do with this money now that have it.' He finally handed the currency to the director and told him to do anything he wanted to with it. And so it went the entire day. At noon there of women, clerks, mechanics and laborers. They drew out from $25 to $200 each. During the afternoon several substantial business men ot the West Side deposited unusually large sums. WM. DUNHAM RESIGNS. A meeting of the directors of the Fifth National bank was held yester day afternoon. and Wm. Dunham ten. dered his resignation, which was promptly accepted. He was heavy indorser of Peters' and as bank stock cannot be put up as collateral by a director or President he was forced to resign. Vice President James D. Robinson was elected to succeed Mr. Dunham. There ar now three vacancies. they presidency and two members of the board of rectors. caused by the resignation of G. Peters and Wm. Dunham. Con. gressman Belknap will undoubtedly be the next Vice President, but an election will probably not be held until the annual report 18 made on the first the year. HOW THE BANK STANDS. There can be no question as to the bank's solvency. It holds all of Peters paper. This paper of he nected Sixteen thousand dollars dollars is indorsed by firms Peters Out of indorsed by Win Dunham cured indorsed t secured Arthur stock collateral worth $2500. leaves between $9000 of balance which is secured by the big blanket mortgage. Congressman Belkrap said last night that there was enough in bank to pay: another today Then there amount prime paper that can discounted if necesThe Fifth National Bank has been 3 Siders, said the Con-
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merchants there whom as DATE s commodated time and time again. soon as they heard the bank was in trouble, they were the first ones to demand their money. There are doubtless some of them who will never do business with us again, as they will be ashamed. Then there were merchants who came in yeaterday and made larger deposits than ever before. They would not even ask a question. The Fifth National Bank prospered from the beginning, and we were urged to increase the stock to $100,000, which we did.' Congressman Belknap was at the bank all yesterday, and his presence had much to do with allaying the fears of those who came at first to demand their money. He would assure them that was all they convinced went away everything of right, their and mistake. word. They had The that the had rumor every confidence capital in be stock his without been reduced 18 proven to foundation. NO REASON FOR ALARK. C. B. Kelsey, teller of the Kent County Savings Bank, said: We hold none of R. G. Peters' paper, but if we had I do not see why it should not be good it properly endorsed. I think if Peters was given six months he would be able to straighten out all of his af fairs. He would certainly understand the handling of his own property better than strangers. 'There 18 no reason for the people being alarmed about the Fifth National Bank, as they can get all the credit they want. In my opinion the run on the bank was pree ipitated by a sensational this should in making as it morning. article statements, Papers in the Democrat be is the careful easiest the world to stir up an tion thing among in depositors, and soundest for all finan- agita- that the banks may be in the cial condition. There is not a bank in this city that did not go to the rescue of the Fifth National today, and what is more, it can get all the credit it wants. The Fifth National is all right and sound as a silver dollar. Itisincorporporated with $100,000 stock, and under the law the stockholders are liable for double the amount. R. G. Peters' property is in good shape. The Detroit banks coming on bim so suddenly was the cause of his embarrassment. MONEY ON DEMAND. Homer Nash, cashier of the Fourth National Bank. says: 'We feel in no way disconcerted over the failure, as all of is secured. sufficiently the paper Peters' The held Fifth by Nation- us al Bank will receive all the help they want from us. and there is no question but that the depositors will receive their money on demand. The depositors It could not help but get frightened. was but natural. It will take a bigger crisis than this to effect any of the banks in this city. I think it was the Detroit banks that precepitated the Peters' failure. I understand they held of his they all him for of could not meet $400,000 course, came on paper, payment, and them. when In he, my opinion, Peters has more enough to cover all property of his than liabilities. UNLOADED PETERS' PAPER. F.A. Hall, cashier of the Grand Rap ins Bank said: unloaded all we held and we a August, Savings the paper today 'We don't of Peters' hold in I think the run on the will be quieted cent Fifth National of it. directors tonight, will not believe the allow the bank to be injured The will get every cent. and I depositors do in the least. There no is among the very property is question but be able that best to Peters' in the and he should meet I don't in the Eastern money all stringency country. habilities. think Grand the Rapids, market recent has affected Detroit, Chicago, or any of the Western country in the slightest. DUNHAM'S LIABILITIES. Wm. Dunham was at the bank yesterday, but he did not seem much concerned in his own losses. His whole interest seemed to be centered in the wellfare of the bank. He IS on a great deal of Peters' paper. Those who are in a position to know, say his liabilities will amount to about $125,000 to $150, 000. Mr. Dunham has great confidence that Peters will pull through the crisis; in fact, he does not seem to doubt it. In case Peters does pull through, Dunham will lose nothing. ONLY LEGAL PROCEEDINGS. afternoon the first legal in the great was A suit in was the National begun. proceedings Yesterday attachment failure City Bank Wm. Dunham and left of the against brought that 18 by Dunham others. & Peters All lumber company is attached. A Lot of Saginaw Men Caught.
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THE PETERS FAILURE. FAR-REACHING EFFECTS ON BUSINESS IN THREE STATES. Over 300 Concerns, Large and Small, Said to be Affected by the Catastrophe-It Starts a Run on a Solid Grand Rapids BankAlready in the Courts. CHICAGO, October 17.-The Union National Bank begun an attachment suit today against the Peters Salt and Lumber Company, of Manistee, Mich., which failed yesterday. Attachments were levied on several surplus securities held by the Commercial and American Exchange National Banks in this city. The Commercial and American Exchange both hold considerable amounts of Peters' paper, but their officers say that they are secured by collateral good for the amounts several times over. The Continental National Bank holds $25,000 of the failed firm's paper. Its officers say it. is perfectly secured by indorsements by solvent firms. In addition to this are large quantities of Peters' paper afloat in private hands in this city. It is announced that Mr. Peters has sold his interest in the Higbee & Peters Lumber Company, to Pardee, Cook & Co. Private advices received here to-day from Manistee are to the effect that the Manistee Bank and the Butters & Peters Salt Company will pull out all right. There are rumors in regard to the effect of the Peters' failure on one or two firms in this city, but thus far no failure here has been announced. It is predicted in financial circles in this city that at least 200 concerns, large and small, mostly in Michigan and Wisconsin, will be affected by the Peters failure. A dispatch from Grand Rapids, Mich., says: R. G. Peters' big failure continues to be the principal topic on the streets. The exciting rumors of the insolvency of the Fifth National Bank caused a big run on that institution this morning, and a large crowd of anxious and worried depositors collected at the windows. Money was paid out as fast as called for, and the directors assured everyone that all their money in the bank was sale. A dispatch from Montgomery, Ala., says: Information 18 received here of the assignment of the Peters Lumber Company at Alco, below Brewton. The failure, it is stated, was caused by the failure of R. G. Peters, of Manistee, Mich. The Peters Lumber Company was the largest lumber manufacturing company in Alabama, if not in the vellow pine territory. A suit was brought at Chicago this afternoon by S. M. Millard against Peters and Kinley Morrison, of Menominee, Mich. The claim is for $10,000, based on two promissory notes.
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PETERS ENTIRELY BANKRUPT. His Failure Will Leave Him Without a Cent-Its Cause. DETROIT, Mich., Oct. 20.-A. M. Henry, assignee of R. C. Peters, who has returned from Manistee, where he partly completed his inventory of the stock, says it is impossible to tell the exact amount of liabilities. He thinks they will exceed $2,500,000. He thinks that the Chicago banks and large creditors generally are well protected, and expresses th e opinion that the failure is complete and that it will leave Peters without & cent. It was caused by Peters having more irons in the fire than he could attend to. That Grand Rapids Bank. I GRAND RAPIDS, Mich., Oct. 20.-Therun on the Fifth National bank. following the Peters failure, subsided Saturday. Thos. R. Lyon, of Ludington, IS in the city, and says that he has $400,000 of Peters' paper in various firms, but is well secured.
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A run has been made on the Fifth National bank of Grand Rapids, Mich., on account of the Peters lumber failure.
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A Run on a Bank. A run has been made on the Fifth National bank of Grand Rapids, Mich., on account of the Peters lumber failure.
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A Run on a Bank, A run has been made on the Fifth No. tional bank of Grand Rapids, Mich., on account of the Peters lumber failure. -