15791. Equitable Mortgage Company (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
private
Start Date
August 31, 1893
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
0a331e6e

Response Measures

None

Description

The Equitable Mortgage Company was placed in receivership / suspended Aug 31–Sept 1, 1893 (court-appointed receivers on application of New York Security & Trust Co.) because of insolvency and inability to realize assets in a tight money market. The company was later reorganized and resumed operations in 1894 under a new charter and management (article of Sep 29, 1894). No run on deposits is described in the articles.

Events (3)
1. August 31, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Inability to dispose of securities and collect maturing loans during a money-market stringency; company effectively insolvent and unable to meet obligations, prompting suspension and receivership.
Newspaper Excerpt
Owing to the continued stringency in the money market and our consequent inability to dispose of securities, or to collect interest and maturing loans, we have been compelled to suspend temporarily.
Source
newspapers
2. September 1, 1893 Receivership
Newspaper Excerpt
On application of the New York Security and Trust Company ... the Equitable Mortgage Company has been placed in the hands of receivers. Charles N. Fowler and James M. Gifford have been appointed receivers of the Equitable Mortgage company by Judge Shipman of the United States circuit court.
Source
newspapers
3. September 29, 1894 Other
Newspaper Excerpt
The Equitable Mortgage Company, which suspended on August 31, 1893, has for some time been in process of reorganization... The new company ... was yesterday organized, and elected as its president Charles M. Preston ... The company was reorganized and resumed operations in 1894.
Source
newspapers

Newspaper Articles (13)
1. September 1, 1893 Evening Star Washington, DC
Article from Evening Star, September 1, 1893

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Article Text

SIGNS OF IMPROVEMENT. Prices in Wall Street Getting Back to Their Normal Condition. Special Dispatch to The Evening Star. NEW YORK, Sept. 1.-Today's market opened slightly in advance of yesterday's low closing and continued strong throughout the morning. The most encouraging feature of the day's trading was the absence of any pressure to sell and operators were encouraged to bid up prices in consequence. The industrials profited most by prevailing conditions and were all higher and active. The regular list was dull and traders were not inclined to carry today's purchases over until Tuesday as a result of Monday's holiday. Some time money in amounts aggregating about three and a half millions has at last put in appearance at the legal rate and 1-2 per cent added for six months. The rate is regarded as comparatively reasonable and the fact that such a sum of currency is available is encouraging and will probably influence other offerings at lower rates. The professional element still controls the course of prices and the market is made to conform to the tenor of the latest rumor. Local conditions continue to improve, but until the belief in better times becomes more general no decided or sustained advance in prices can be hoped for. In the meantime indications point to a gradual improvement. which may be retarded occasionally, but which will eventually restore prices to their normal condition. Prices at noon showed fractional gains over opening figures, ranging from 3-4 to 2 3-4 per cent, the latter for Sugar, which advanced from 82 to 81 3-4. Burlington advanced 1 1-4 per cent to 80 3-8. Rock Island advanced to 61 5-8 and St. Paul to 57 1-2, a gain of one point for each. Lake Shore advanced 3-4 to 118 1-2 and Manhattan declined to 117, a loss of one point. The market reacted after the noon hour, but the dullness prevented any material decline in values. The posted rates for Sterling today were, sixty days, 483 less 1-8; Light, 486 3-4 less 1-8; Light drafts on Paris, 520 less 1-16, and sixty days 522 1-2 less 1-16. New England broke 2 1-8 per cent during the afternoon on rumors of a strike among its employes, which later advices declared were entirely without foundation. Louisville and Nashville earnings for the month of July decreased $100,148. Traders were successful during the last hour in advancing prices on reports of a favorable bank statement tomorrow. Every thing points to an income in the reserve, resulting from the usual September disbursements rency. and an increased suppy of curOn the London Exchange. Special Cable Dispatch to The Evening Star. LONDON, Sept. 1.-The Bank of England bought today 11,000 pounds in bar gold. Forty thousand sovereigns were withdrawn for Buchares. The suspension of the Equitable Mortgage Company of New York interests many small Scotch people, but does not affect credit here. The failure on the Paris bourse chiefly depressed Italians. The stock markets here were dull today. Americans partly rallied toward the close on indefinite rumors of the issue soon of an American gold loan. Silver was down to 34 pence and rupee paper to 65 7-8 pence. A special from New York to The Star says that this is the first announcement of the Equitable Mortgage Company's failure. The report is confirmed at the company's offices.

2. September 2, 1893 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, September 2, 1893

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NEWS NUGGETS. Brought by the Wires From the North, East, South and West. The orange groves in Florida suffered terribly from the hurricane. The Boston & Maine has issued an order for an 8-hour day in all its shops. There was a $25,000 fire and no fire department at Tolland, Ct., Thursday night. Steamship Alvo of the Atlas line is overdue and it is thought she was lost in the hurricane. The Thornton worsted mill at Johnston, R. 1., employing 250 hands, was burned to the ground Friday. The executive committee of the World's Fair voted that two payments of 10 per cent. each on the exposition debenture bonds be made, one Sept. 7, the other Sept. 15th. On application of the New York Security and Trust Company, the Equitable Mortgage Company has been placed in the hands of receivers. The company's capital is $2,100,000 and surplus $800,000. No statement of liabilities have been made, but there have been issued 84,875,500 debentures. A freight train loaded with merchandise was wrecked and partly burned near Brenham, Tex., Thursday. A prairie fire had burned a long piece of track, and as the train came along at the rate of 30 miles an hour it dashed into a wide creek. The engineer was killed and the fireman and brakeman fatally injured. Two unknown tramps were killed and a number of others reported to be in the ruins. Steamer Montevidean from Montreal towed into harbor Friday morning steamer Sarnia, which she picked adrift in midocean. All on board the Sarnia are well. The Sarnis sailed from Montreal July 29. Oa Aug. 4 she broke her thrust sheft. All efforts to repair the damage were fruitless and for days the vessel drifte-1 helpleasly. The Amoskeag mills will not start up as was reported. The Armory Mills will start up Sept. 4.

3. September 2, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 2, 1893

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WILL REMAIN CLOSED. Business Does Not Warrant Starting the Bates Mill. Lewiston, September 1.-It was expected when the Bates mill shut down that operations would be resumed September 12th, but the business outlook does not warrant this, and the mill will remain closed until further notice. Failure of the Equitable Mortgage Company. New York, September 1.-On application of the New York Security and Trust Company, the Equitable Mortgage Com. pany has been placed in the hands of receivers. The company's capital is $2,100,000 and surplus $800,000. No statement of liabilities is made, but there have been issued $4,875,500 debentures. Granite Business Improving. Barre, Vt., September 1.-The local granite dealers are paying their men in cash today. Business is improving and more men are being engaged. Work for Two Thousand. Lawrence, Mass., September 1.-The main cotton mills and yarn mill of the Pacific co-poration will be started on Tuesday next. The lower mill remains closed another week. It is now hoped that it can be started September 11. The resumption of work by the two former mills will furnish work for over 2000 persons.

4. September 2, 1893 The Times Richmond, VA
Article from The Times, September 2, 1893

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Article Text

TEMPORARY SUSPENSION. Receivers Appointed For the Equitable Mortgage Company. NEW YORK. Sept. 1.-On the application of the New York Security and Trust Company in the United States Southern District Courts, the Equitable Mortgage Company has been placed in tl e hands of receivers. The capital is $2,100,000, and the su plus $800,000. No statement of the liabilities IS made, but there have been issued $4,375,500 debentures. The following is the only statem set the officers of the company care to make for the present "Owing to the continued stringency in the money market and our consequent inability to dispose of securities, or to collect

5. September 2, 1893 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, September 2, 1893

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Article Text

Receiver For a Big Mortgage Company. NEW YORK. Sept. 2.-Charles M. Fowler and James M. Gifford have been appointed receivers of the Equitable Mortgage company by Judge Shipman of the United States circuit court. The application was made by James O. Bloss and George K. Gilully, representing the New York Security and Trust company, who are the holders of debentures. It is said that the liabilities of the company will amount to about $1,000,000.

6. September 2, 1893 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, September 2, 1893

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Article Text

Receivers for a Mortgage Company. NEW YORK, Sept. 1 -On the application of the New York Security and Trust Company in the United States Southern district court, the Equitable Mortgage Company has been placed in the hands of receivers. The capital is $2,100,000 and the surplus $800,000. No statement of liabilities is made, but there have been issued $4,375,500 debentures.

7. September 2, 1893 The Sun New York, NY
Article from The Sun, September 2, 1893

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Article Text

OWES NINETEEN MILLIONS. THE EQUITABLE MORTGAGE COMPANY IN RECEIVERS' HANDS. It Has Large Assets, but They Are Mostly Western Mortgages and State and City Bonds, Which Cannot Be Turned Into Cash Just Now-Its Debentures Held in the United States, Europe, and Canada, The Equitable Mortgage Company. whose offices are in the Manhattan Bank building at 40 Wall street, went into the hands of receivers yesterday. and posted the following brief explanation on the door of the offices: Owing to the continued stringency in the money market and our consequent inability to dispose of securities or to collect interest and maturing loans, we have been compelled to suspend temporarily. The officers of the company and their attorneys. Thacher & Baraum. were not prepared to make any further statement. The company was incorporated in Missouri in 1884 with an authorized capital of $4,000,000. of which $2,100,000 was paid up. sofficers are: President. Charles N. Fowler: Treasurer. Norman F. Thompson: Directors. Charles N. Fowler. Charles B. Wilkinson. S. R. Bertron. Edward H. Hobbs. Henry Cartwright. William Warner. and Benjamin P. Shawhan. Thecompany lent money on bond and mortgage and dealt in municipal bonds. It also issued and sold interest bearing debentures. or notes secured by its bonds and mortgages. and these constitute its chief liabilities. The application for the appointment of receivers was made to Judge Shipman of the United States Circuit Court on Wednesday and granted on Thursday. It was made by the New York Security and Indemnity Company as trusteee for the holders of $4,875,500 of the Equitable's debentures: James O. Bloss. President of the Produce Exchange. who holds $45,000 of them. and George K. Gilluly. holder of ten shares of the stock. The complaint sets forth that the company is a foreign corporation chartered to lend money upon real estate and other securities, as well as to buy. sell. improve, and lease real estate and other property. Its principal business consisted of lending money on farm property in Missouri and other Southern and Western States and of negotiating bonds and mortgages given for such loans. The company was also a large dealer in State and municipal bonds. In October. 1886. the Equitable entered into an agreement with the American Loan and Trust Company that the latter should assume the trusteeship of certain bonds and mortgages and other evidences of indebtedness to be deposited by the Equitable as security against debentures to be issued in series of $100,000. Twenty-six such series were issued on which the rates of interest ranged from 5 to per cent. It was stipulated that the Equitable should receive the income from all deposited collateral SO long as it should pay the interest on its debentures. The New York Security and Trust Company was substituted later for the American Loan and Trust Company. and took possession ot the securities deposited with the latter company. These have been issued and sold by the Equitable Mortgage Company against the securities now in the hands of the Security Company, $4,875,500 in debentures. and the Security Company holds real estate security to the value of $4,879,000. Other agents or trustees who hold the company's assets as security for debentures are the Union Trust Company. $1,570,500 of debentures. security $1,580,261; Kansas City Safe Deposit and Savings Bank. $2,629,060: Imperial Trust Company. Canada, $56,300; Harvey. Banking & Co. and Charles E.IGrenfell. London. $4,582,744; J. C. De Vries, D. W. H. Patijen. and C. Van Eglen. Amsterdam. $464.300, and W. Annecke and J. Knorcke. Berlin. $155,000. In addition to the sale of debentures the complainants believe that the mortgage company has borrowed from banks $1,976,462.04 for which promissory notes were given. all of which are about to mature. and has deposited against these notes municipal and other bonds and securities aggregating $1,321,200. The complainants further allege that the defendants are indebted to people that had deposited with them $454. the depositors holding time certificates. Finally it is asserted that the company holds unpledged mortgages, stocks. overdue interest coupons. tax sales certificates. and oustanding open accounts aggregating $2,700,000. besides owning farms in Missouri to the value of $281,000. Shearman & Sterling are the attorneys for the Equitable Mortgage Company. and they explained yesterday that the company could have met the obligations due yesterday amounting to $180,184.25. but that if these had been paid it would have been an injustice to other holders of debentures. and that the directors therefore considered it better to allow Mr. Bloss to enter a friendly suit and have receivers appointed. In addition to the obligations that fell due yeslerday there are $193,383.7 payable Oct. 1. $375,522.33 payable Nov. 1. $210,430 50 payable Dec. 1. No schedule of the assets is given. but the in the report for

8. September 5, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, September 5, 1893

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NEW YORK, Sept. 1.-0n the application of the New York Security and Trust Company in the United States Southern District Court, the Equitable Mortgage Company has been placed in the hands of receivers. The capital is $2,100,000 and surplus $800,000. No statement of liabilities is made, but there have been issued $4,375,500 debentures.

9. September 7, 1893 The Green Forest Tribune Green Forest, AR
Article from The Green Forest Tribune, September 7, 1893

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THE WEEK'S NEWS IN BRIEF. MANYINCIDENTS REDUCED FROM COLUMNS TO SHORT. SPICY PARAGRAPHS. Everything Eliminated But Facts For the Special Convenience of Readers of The Tribune. SUNDAY attendance at the Fair was light, as usual. STATE days will be the features at the World's Fair for this'month. THE President will endeavor to have the tax ou State banks repealed. THE SILVER fight is to be pushed in the Senate during the coming week. THE new bull pool in the Wall Street market has $10,000 000 behind it. THE Equitable Mortgage Company of New York has gone into a receivership. THE President arrived at Washington Friday, and looks the picture of health. THE Electric Light Plant at Camden, this State, was sold by the receiver, Friday. IT is said to be settled that Mr. Gladstone will visit America in the early future. THE G. A. R. veterans began their annual encampment at Indianapolis, last Monday. IT is given out that ex-Senator Ingalls of Kansas will try to be governor and then Senator. SENTIMENT in the House continues to grow against an adjournment of the extra session. A BILL to repeal certain parts of the Federal election law has been introduced in the House. NEAR Caddo, I.T., robbers killed Lou Chochnauer, his wife, and another woman, all Choctaws. SECRETARY MORTON is expected to issue a proclamation changing the quarantine line in this State ANNIE BESANT has come to this counH try with several followers and will teach Theosophy at Chicago. BETWEEN 800 and 1,000 lives are known to have been lost by Sunday night's storm off the Carolina coast. THE Interior Department is contemplating the opening of two or three Indiau reser vations to settlement. THE Treasury situation is causing considerable alarm, as a deficiency of large proportions is anticipated. THE week's total clearings for the United States show a decrease of 32.5 per cent under the week last year IT is alleged that allotments on the Cherokee Strip have been made to children, some of them only two years old. THERE is quite a scramble among the Cherokee Strip boomers to get locations near Chief Bushyhead's allotment. GOVERNOR ALTGELD in an interview deprecates the newspaper talk about activity among anarchists in Chicago FIVE passengers were killed and 15 injured by the derailment of au electric street car at Cincinnatilaet Saturday. WARNING has been given in the Senate that the irou hand of cloture may be applied to force a vote on the silver repeal bill. THE Western Kansas farmers need at least 250,000 bushels of seed wheat, but none of their eastern brothers have offered any help. IT is now believed that there is now a majority for unconditional repeal of the purchase clause of the Sherman law in the senate. IT has been agreed that two of the nine condemned Choctaws at Wilburton, I.T., shall be shot and the others given a new hearing. CONTRACTS for levee work on the Arkansas side of the Mississippi between White River and the Louisiana line were awarded Friday. THIRTY-FOUR of the 154 national banks that suspended since January 1 lasthave resumed and 62 are in a fair way to start up business again. A REPORT has gained circulation that the President has recently been operated on for cancer, but his friends say there is not a word of truth in it. THE Interior Department has nipped in the bud a plan of certain schemers to obtain a marked advantage in the rush for land in the Cherokee Strip MRS. LUKE BLACKBURN, widow of the Governor. has some damaging evidence to give against Congressman Breckeuridge in Miss Pollard's damage suit. GOVERNOR TILLMAN of South Carolina says the attempt by Wall Street to establish gold standard is "the most gigantic scheme of robbery ever attempted As the facts come to light it is clearly developed that a gigantic steal is intended in connection with the Cherokee Strip allotments unless the Government interferes. THE application of Governor Tillman of South Carolina to have the sobriquet of the State, "Palmetto,' registered as a trade mark for dispensary whisky'ha been denied THE rapid resumption of business by banks that have been compelled to suspend, as shown by the reports at Comptroller Eckles' office, indicates a general revival of business. THE announcement that postoffices on the Strip are to be* established only at land office towns is very displeasing to settlers, who say they will be greatly inconvenienced thereby. CIRCUMSTANCES go far to prove that the yarn about Mr. Cleveland being afflicted with cancer was inspired by Wm R Grace, the diagrantled New York auti-snapper whom the Predident tarberd down

10. September 10, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, September 10, 1893

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# RECEIVERS NAMED For the Equitable Mortgage Company of Missouri. Judge Henry C. Caldwell, of the United States circuit court, signed an order yesterday in the case of The New York Security and Trust Company, James O. Bloss and George K. Gilluly against The Equitable Mortgage Company, in which he appoints Charles N. Fowler and James M. Gifford as receivers of the Equitable Mortgage company, requiring them to give a bond of $10,000. The Equitable Mortgage company is incorporated under the laws of the state of Missouri, but does its principal business in New York. The capital stock is $2,100,000. The object of the corporation is to loan money on real estate and other securities, of buying, selling, improving and leasing real estate. A large amount of debentures have been sold, amounting to about $4,879,000, and the American and Loan Trust company, of New York, was made trustee for bondholders, which was displaced by the courts of New York, and the New York Security and Trust company substituted. The Equitable Mortgage company was declared insolvent by the United States circuit court of New York, and the receivers named above were then appointed as receivers, and directing them to take charge of all the real estate and other property in that circuit. The order made by Judge Caldwell covers all the property in this, the Eighth judicial circuit, which embraces the property in the state of Minnesota.

11. February 17, 1894 New-York Tribune New York, NY
Article from New-York Tribune, February 17, 1894

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ORMATION IS WANTED MORTGAGE COMPANY TROUBLES. HOLDERS ASK A JUDICIAL EXAMINATION THE ASSETS-MANY MILLIONS INVOLVED RECEIVERS PROPOSE RESUMPTION. N. Fowler and James M. Gifford, who appointed by the United States Circuit Court city last summer. as the receivers of the Mortgage Company. sent. in November the holders of the $14,000,000 of its debenture a circular asking the assent of such bondto a proposed plan of resumption. This was that the debenture holders in this countries surrender their coupons mabetween September 1. 1893, and February 1, receive in lleu thereof scrip of the compayable ten years hence: that the time of aturity of all debentures be extended to 1, 1904: that the interest on the bonds be down to 5 per cent, of which 1 per cent be payable in ten-year scrip. and that the should not pay dividends to its stock while any such scrip was outstanding. illingness to agree to this plan of resumption to have developed among certain of the bondholders. both on account of what they have recently discovered with rethe company's past management and trans and also because of their alleged inability from the receivers the present condition company and the value of its assets. The Title and Trust Company. of Philadelphia Henry W. Sackett and Charles Gibsor its New-York solicitors, has begun pro in the United States Circuit Court in It: and in behalf of all other bondholders under situated. to secure an examination of the court of all the books and securi the company, so that all interested may Its actual financial situation before any plan umption is adopted WHAT THE PETITION DECLARES. motion papers in that proceeding were filed he clerk of the court by Sackett & Bennet but the hearing of the motion for the of the company's affairs has been ad to February 23. The Land Title and Trust in its petition sets forth that it has for of years held certain of the bonds issued Equitable Mortgage Company. as trustee for estate in Philadelphia, and that severa in such bonds of the company are held by Individuals in Philadelphia, New-York an places: that a few days after the ap of the receivers in New-York last August appointed ancillary receivers in Phila the Court, however. filing an opinion in it said that it only named Mr. Fowler, the former president. and Mr. Gifford, its In counsel, because they were appointed but that the Court did not approve of actice of appointing individuals to close ad u; isiness of an insolvent corporation who Its affairs previously, and whose con personal responsibility might therefore petition jects of further investigation. recites the receipt of the containing the proposed plan of resumption audit balance sheet made by the company's declares that the petitioner has been unable reany further information from the respecting the business affairs of the com its losses or causes of embarrassment of value of its assets and liabilities, ex was contained in this circular; that and through its Philadelphia counsel ubsequently through its New-York counse permitted to have an xamination made by of the books, securities, vouchers and al methods of the company. 80 that might have information upon which but buld lecide as to the plan of resumption: ceivers refused. although one of the receiver that he has given to certain bankers and persons representing bondholders an oppor to examine the company's chief securities holders of large amounts of the company' had informed the petitioner that they also to have such examination. ACTIONS OF PRESIDENT FOWLER. also alleged in the petition that the com capital stock was increased a few years about $500,000 to $2,100,000: that the presi of the company. Mr. Fowler, now one of ceivers, and the directors, to whom the busi to be recommitted, under the agreemen umption. seemed to have lost the company a period of a few months, millions o that during the year 1893 statements were by the company, over the signature of Mr representing that the capital of the com intact and that there was a surplus, :: of $800,000. whereas within & short time fter the company passed into the hands o that about the middle of July, 1893 and before the receivers were appointed then the president of the company sen stockholders a statement reciting the declara a dividend by the company and the carry $100,000 additional profits to the in and that Mr. Fowler and the other

12. February 23, 1894 San Antonio Daily Light San Antonio, TX
Article from San Antonio Daily Light, February 23, 1894

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Millions are Involved. NEW YORK, Feb. 23.-Lawyers Henry W. Sackett and Charles G. Bennett, representing the Land Title and Trust company, of Philadelphia, filed motion papers in the United States Circuit Court a few days ago for permission to secure an examination of the books and securities of the Equitable Mortgage Company, which went into the hands of receivers last August. The motion is being argued today, ond sensational developments are looked for. This proceeding is the result of an attempt made by the receivers of the company, Charles N. Fowler and James H. Gifford, to get the holders of $14,000,000 of the company's debenture bonds to assent to a proposed plan of resumption whereby the holders of the debenture bonds were to surrender their coupons maturing between September 1 last and February 1, and accept scrip payable in ten years. It was proposed also to extend the maturity of all debentures to March 1, 1894, and that the interest on all bonds be cut down to five per cent., one per cent. of which would be payable in ten-year scrip, and that the company should not pay dividends to its stockholders while the scrip was outstanding. The petitioners state that the capital stock of the Equitable Mortgage company was increased from $500,000 to $2,000,000 in a few years. It is alleged that through bad management the company lost millions of dollars.

13. September 29, 1894 New-York Tribune New York, NY
Article from New-York Tribune, September 29, 1894

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THE EQUITABLE MORTGAGE ON ITS FEET. REORGANIZED WITH CHARLES M. PRESTON AS PRESIDENT-HIS LAX METHODS IN THE BANKING DEPARTMENT. The Equitable Mortgage Company, which suspended on August 31, 1893, has for some time been in process of reorganization. About 98 per cent of the $14,000,000 of debenture and bond holders, and about 99 per cent of the $2,100,000 of stockholders have assented to the plan of reorganization, which was undertaken by Charles S. Fairchild, A. B. Hepburn and George Coppell as a reorganization committee. The new company, which received a special charter from the last Legislature, was yesterday organized, and elected as its president Charles M. Preston, Superintendent of the Banking Department of the State of NewYork. The new company proposes to utilize as far as possible the experience and ability in the force employed by the old company, and the remaining officers will be chosen as soon as Mr. Preston can be conferred with. He will presently assume direction of affairs, and in the near future will retire from his present office as Bank Superintendent. Mr. Preston has been Superintendent of the State Banking Department for about five years, being first appointed by Governor Hill. He was last appointed by Governor Flower, and has about two years of unexpired term before him. He has under his supervision savings banks, trust companies, State banks, building and loan associations, and all mortgage companies doing business within the State of New-York. The aggregate resources of these Instltutions far exceed $1,000,000,000. His office is one of the most important, and involves great power and responsibility. In the time that Mr. Preston has been Superintendent of the State Banking Department some of the most outrageous banking methods in State banks have come to light, and the State Banking Department has not been responsible for the discoveries. In fact, the exposures proved that the State BankIng Department had been lax in Its work and greatly remiss in scenting out the rotten methods which led to the destruction of such Institutions as the St. Nicholas and Madison Square banks. When these banks closed their doors it was found that a state of things existed that must long before have been known by Mr. Preston had proper examinations been made by the department, and in the case of the St. Nicholas Bank the Banking Department was forced to admit that the stealings of the paying teller, Louis J. Hill, had been going on for two years, and that in that time the department had failed to discover anything wrong. After the officers and directors of the Madison Square and St. Nicholas banks had borrowed the funds of the bank on collateral hardly worth the amount a ragman would give for It as old paper; after stockholders and depositors had been robbed, and after there was little left but office furniture and rumors of bankruptcy, the State Banking Department stepped In and declared that the concern should no longer do business. The developments following the closing of the doors of these and other institutions plainly showed that, had the State Banking Department, under Mr. Preston's supervision, performed Its duty, a different state of affairs would now exist, and criminal bank officers and directors would not have juggled with stockholders' and depositors' money and lost it.