d0283793Partial suspension, Full suspension, Books examined
Other: Multiple actions: temporary reopening with 20% payout; later receivership and winding up due to internal defalcation and asset depreciation.
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Bank 10rm. New YORK, November 26-The Central Park Bank, a small savings institution up town, is to be wound up. The Manufacturers and Builders Bank has suspended. There was a run on the People's Savings Bank to-day, but the officers took advantage of the sixty days' notice and closed their doors. There was also.a slight run on the Security Bank.
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Among the other savings banks there was but little appreciable excitement. The amounts withdrawn in every instance were slightly in advance of the usual daily outgoings, but, as a general rule, the accounts closed were small in number and not sufficient to cause any fear on the part of the presidents and other officials that they would have to sustain a run. The impression among bankers is becoming more and more pronounced that the best course that could be adopted for the benefit and protection of all would be the appointment of receivers to the well known weak banks and their speedy liquidation. This course If adopted, would, it is thought, at once put a stop to the public uneasiness, while at the saine time it would put it beyond the power of the banks to unite the money of depositors by sacrificing their securities in order to sustain a run if such should be made on them. The Bank Superintendent's departure for Albany last Saturday is thought by many to have been with this view. THE THIRD AVENUE BANK. Mr. Carman is still in possession at this bank, Judge Westbrook not yet having appointed his successor. The name of a Mr. Morgan A. Dayton, clerk in the Surrogate's office, is mentioned as the probable new receiver. It is said he is recommended by the depositors' Committee of Thirteen and is friendly to the trustees. In fact it was reported among the depositors that Mr. Dayton had even gone so far as to perfect his bond, which is required as security. His appointment would be received unfavorably by the great mass of depositors, who hope to see some gentleman of position and well known in the community put into the responsible office. THE SECURITY BANK, which suspended last week, is still refusing to receive deposits or to pay out money. From what could be learned yesterday among the largest depositors it appears to be their wish that the bank should resume business again, and that some ten or fifteen of their number should be nlaced on the research ne Associane cam
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WEAK BANKS TO BE WEEDED OUT. SUPERINTENDENT ELLIS determined TO ERADICATE UNSOUND SAVINGS INSTITUTIONS-A RECEIVER FOR TWO BANKS. A reporter of THE TRIBUNE called on D. C. Ellis, State Superintendent of Banks, at the Metropolitan Hotel, last evening, and had a long conversation with him in relation to the condition of the savings banks in his city. Among other things Mr. Ellis said The worst is now over. I shall act carefully, cautiously and prudently, but I am determined that every unsound savings bank in this city shall be closed by the end of this month. The Examiners of the Bank Department have been hard at work for several months. and only solvent banks will remain in operation at the beginning of the new year. Very few banks will be closed. I shall compel the trustees of the weak banks to secure the depositors fully by advances of cash or approved securities. A very few banks whose deposits will not yield sufficient income to meet expenses must retire from business. The monetary condition of the country is against them. They are struggling against fate, and it is impossible for them to gain strength as there is nothing from which they can support themselves. Early in the present year I examined with great care every annual report of the banks, and marked those whose affairs seemed to require immediate examination. I came to this city and consulted with the leading bankers and merchants, and guided by their advice, I felt my way quietly but surely, until I understood fully the condition of things. There were so many millions of dollars involved, and the interests of thousands of depositors to be cared for and protected, that it would have been highly improper for me to have acted rashly. I have not acted on my own unsupported judgment, but have been advised by the best men in all positions in society. I am now undoing the bad work of Legislatures of previous years. With the new Savings Bank law and the difficulties in the way of getting charters, new banks will be established only when and where the needs of the people demand them. The new law also limits investments within a narrow circle. Mr. Ellis stated that the Security Bank had been found by the examiners to be perfectly safe, and he supposed it would resume business early next week. He had no fault to find with the bank. As to the Mutual Benefit Savings Bank, he remarked that the trustees were men of spirit and energy, and they had asked for a week's delay in which to put the bank on a sound basis. He had given them time, and the result would be made known by Monday. There was nothing against the Mechanics' and Traders' Savings Bank, and he had been surprised to learn that a run had been made on it. It is understood that Mr. French, a lawyer, has been appointed receiver of the People's and the Central Park Savings Banks. He will probably enter upon his duties to-day. There is so small an amount to be handled in the last named bank, that it was not considered advisable to appoint a separate receiver for it.
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THE SAVINGS BANKS. Mr. E. Hermann Uhl was appointed yesterday, by Judge Davis, of the Supreme Court, receiver of the German Uptown Savings Bank. Mr. Uhl is required to give security in the form of a bond for $150,000. The complainant at whose suit the receiver was appointed is J. M. Hart, a creditor of the bank for $2,300. His complaint sets forth the fact that the bank owes to depositors $838,000 and has but $800,000 of assets. Judge Davis' order requires the receiver to deposit all the assets coming into his possession, except $25,000, in the New York Life Insurance and Trust Company to make an inventory at once, and to make a report of the property within forty days and within each succeeding forty days, or show cause. The bond required from the receiver of the Mutual Benefit Savings Bank, Mr. F. A. Aldrich, who was appointed at the suit of E. N. Simmons, through W. A. Gallagher, his counsel, was yesterday reduced from $200,000 to $75,000. Mr. S. H. Hurd, the newly appointed receiver of the Third Avenue Savings Bank, was at the office yesterday, but has not yet obtained possession of the keys of the safe. Mr. Carman promises to hand them over today. Mr. Hurd says he shall leave the prosecution of all criminal matters to the District Attorney, and will give his whole endeavors to realizing the assets of the bank in the best interest of the depositors. Mr. Isaac M. French has been appointed receiver of the People's and Central Park savings banks, and has already taken possession. The Security Bank resumed business yesterday worning, and began paying out twenty per cent of the amount of deposits to all who need 16, taking notice for the balance. Many new accounts were opened during the day.
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THE SECURITY BANK. There were no further developments yesterday in relation to the affairs of the Security Bank, corner of Thirty-fourth street and Third avenue. The receiver, Mr. William M. Banks, will file his bond to-morrow and then take charge of the affairs of the institution. To a HERALD reporter last night Mr. D. D. T. Marshall, President of the bank, said:-"A few weeks ago I resigned the presidency, but on great pressure by the trustees, I determined to withdraw the resignation. Subsequently Mrs. Capen, who is a large depositor, at the instance of the trustees, applied for the appointment of a receiver, and Justice Barrett appointed Mr. William M. Banks, the late secretary. Mr. Banks, did not wish the position, but the trustees were very anxious that he should take it, he being fully acquainted with the business, and familiar with the entire work. Mr. Banks has only been secretary for a few months, and to-morrow he will file his bond before Judge Barrett, his bondsmen being some of the wealthiest people in New York city. Mr. Marshall said further:-"The bank will pay every depositor in full, or very nearly so. The trustees alone represent $150,000 of the $325,000 due to depositors. The total liabilities are $325,000, and if everything turns out as is expected, there is still a surplus of $8,000. The assets consist of the bank building, which 18 unencumbered, and is worth fully $100,000, but the dull state of the revl estate market might bring it down a few thousands, It is worth, anybow, $80,000. Then there is a house and lot at Astoria, worth $2,000, and ten acres of land in the village of Mount Vernon, worth $5,000. The remainder of the assets are in bonds and mortgages. The receiver, Mr. Banks, after filing his bond to-morrow will at once make out a schedule in detail." From inquiries in the neighborhood, among the depositors and business men generally it was ascertained that if the bank building, which cost $75,000 four years ago, was offered for sale at once it would not realize over $50,000, so, according to Mr. Marshall's statement, there will be a deficiency instead of a surplus, as has been repeatedly pointed out by the HERALD.
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THE SECURITY BANK. A DIVIDEND PROMISED NEXT MONTH. On the 21st of last November it became known that the affairs of the Security Bank, on Third avenue, were in poor condition. The directors called a meeting and drew up resolutions arranging an agreement with the depositors not to urge their claims for a period of twelve months, in order to give the bank time to reorganize, and stated that they would give twenty-five per cent of principal in three months. The bank reopened for business in the course of a week, about one-half of the depositors having signed the agreement. The other half refused to make any compromise and determined only to give the ordinary sixty days' notice, according to law. The notice was tendered, and at the expiration of the sixty days the directors, thinking the depositors would demand a receiver, had one appointed by Judge Barrett. Recently a call was issued to depositors to prepare their bank accounts, and promising a dividend on March 1. On the reception of this some parties hav. ing claims against the bank doubted its capacity to make any such settlement, and have demanded an investigation of the matter. A HERALD reporter accordingly called on William C. Banks, the receiver, yesterday, and in answer to inquiries touching the matter Mr. Banks said that during the last few weeks money has been coming in rapidly, and he confidently looked to a payment of the promised dividend at the time appointed. His said his report would be ready to-morrow and the depositors could learn from it the true condition of the bank.
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EASTERN DISPATCHES. SPECIAL TO THE GOLD HILL DAILY NEWS DOMESTIC NEWS. More of the as. Louis Whisky Frauds. Sr. Louis, April 11. - A Globe-Democrat Jefferson City special says it is alI leged that the United States District Court sentenced Colonel Joyce for six months longer time than the law calls for, and therefore the sentence is void. This question, it is said, will soon be tested by an attempt to take him out of the penitentiary on a writ of habeas corpus. District Attorney Dyer stated to-day that if the new point raised in the Mo. Kee case is sustained by Judge Dillon he will go to the District Court and call for the appearance of General Babcock to answer the original indictment against him. and if he does not answer Dyer will ask for the forfeiture of Babcock's bond, and that a warrant be issued for his arrest. Sentence of n ms. Louis Whiskey Thief Posiponed. Sr. LOUIS, April 11.-General John McDonald, ex-Superintendent of Internal Revenue in this district, who has been in the County Jail several months, pending sentence, was brought before Judge Treat. of the United States District Court this afternoon to receive sentence, but owing to the temporary ab. séuce from the city of Judge C. H. Crum, his counsel, action in the case was deferred until Thursday next. A Murderer Convicted. NEW YORK, April 11.-Andreas Fuchs, who recently chopped a fellow-workman to pieces in Brocklyn, was to-day found guilty of murder in the first degree and will be sentenced to-morrow. Another Disciple of Reecher Sus. pended. DETROIT, Mich., April 11. - The Methodist Church investigation found Rev. T. W. May guilty of slander, unchristian conduct, improper proposals and advances to ladies of his church, and also of adultery. He was suspended and his dismissal recommended. A $70,000 Defanlter. NEW YORK, April 11.-John Seill, a teller in the suspended Security Bank, has been discovered to be a defaulter to the extent of $70,000. He has fled. General Dix to be Nominated to Succeed Schouck. WASHINGTON, April 11.-It is stated here that at the Cabinet meeting to-day. the President will propose the name of General Dix for the English mission.
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Court sentenced Colonel Joyce for six months longer time than the law calls for, and therefore the sentence is void. : This question, it is said, will soon be tested by an attempt to take him out of the penitentiary on a writ of habeas t corpus. 3 District Attorney Dyer stated to-day $ that if the new point raised in the Mc. Kee case is sustained by Judge Dillon , he will go to the District Court and call for the appearance of General Babcock to answer the original indictment against him, and if he does not answer Dyer will ask for the forfeiture of Babcock's bond, and that a warrant be issued for his arrest. General John McDonald, ex-Superintendent of Internal Revenue in this district, who has been in the County Jail several months, pending sentence, was brought before Judge Treat, of the United States District Court this afternoon to receive sentence, but owing to the temporary absence from the city of Judge C. H. Crum, his counsel, action in the case was deferred until Thursday next. New Yor, April - -Andreas Fuchs who recently chopped a fellow workmen to pieces in Brooklyu, was to-day found guilty of murder in the first degree and will be sentenced to-morrow. John Seill, a teller in the suspended Security Bank, has been discovered to be a defaulter to the extent of $70,000. He has fled. Detroit, Mich., April 11.-The Methodist Church investigation found Rev. T. W. May guilty of Islander, unchristian conduct, improper proposals and advances to ladies of his church, and also of adultery. He was suspended and his dismissal recommended. Washington, April 11.-It is stated here that at the Cabinet meeting to-day, the President will propose the name of General Dix for the English mission. London, April 11.-Late dispatches from Lima, Pern, say that several attempts at insurrection have been made by the Chinese laborers on the sugar estates near Trojello, in the north, and in the vicinity of Lima with insignificant loss of life. These outbreaks have been suppressed, but some alarm has been caused in the Capital from the discovery of a plot among the coolies of the neighboring valley to rise on Good Friday next, and massacre all within striking distance. Steps have been taken to prevent such a catastrophe. A Rio Janeiro dispatch announces the death of Benjamin Franklin Voohees, formerly Secretary to Commodore Garrison. Voorhees was a victim of yellow 3 fever, which was raging at Rio Janeiro with great violence. His wife was with him at the time of his death. I The Turks defeated 15,000 insurgents near Maden on Saturday, killing 60 of S t hem. Five Turks were killed.
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twenty minutes and nineteen seconds, being the fastest ever recorded in these races T. G. Settle, formerly railway agent at Protosi, Mo., who was removed on complaint of Engineer Samuel Cowell, shot and killed the latter in consequence, and then killed himself The czar of Russia will not abdicate, as his health has been fully recovered The Afghanistan aemir of Cabul has defeated his rebellious subject, the meer of Maimena. The latter lost three thousand men in the battle. Mr. Alexander T. Stewart, the merchant prince, died in New York of inflammation of the bowels, brought on by a severe cold, in the seventy-fourth year of his age. Mr. Stewart was born near Belfast, Ireland, of Scotch-Irish parents. After graduating atTrinity College, Dublin, he immigrated to this country in 1823, at the age of twenty years, and opened a select school in New York. He soon afterward gave up this project and started a small retail dry goods store on Broadway, which soon became noted for the fine quality of the stock displayed, and was liberally patronized by the wealthy inhabitants. By strict attention to business, coupled with extensive but judicious advertising, Mr. Stewart had so prospered by 1848 that he was enabled to erect the large marble store at present standing on the corner of Broadway and Chambers street, and from that time on his fortune increased with the greatest rapidity. Forseeing the necessity for an uptown movement on the part of the retail dealers, Mr. Stewart erected the handsome eight-story building occupying the entire block from Ninth to Tenth streets, and from Broadway to Fourth ave., and occupied it as a retail department, retaining the old store for wholesaling. The uptown store covers two and a half acres of ground, employs two thousand hands, and the running expenses are over $1,000,000 per annum-being the most extensive establishment of the kind in the world. The wholesale and retail establishments have sold $50,000,000 worth of goods in a year. Besides the two colossal stores, Mr. Stewart held a large amount of New York city property, the elegant Grand Union hotel at Saratoga, immense mills near Fishkill, N. Y., and the entire Garden City on Long Island, which was a pet scheme of the founder, where he made great outlays in putting up houses and stores, connecting with the city by a railway run by his employees. His estate has been estimated all the way from $20,000,000 to $90,000,000, but probably now nearly approaches the latter sum. Mr. Stewart, outside of business, was of a pleasant disposition, and delighted to entertain distinguished personages in a royal manner. His wife survives him; but as she is childless, it is conjectured that the bulk of the property is left to charitable purposes. John H. Seil, one of the tellers and bookkeepers of the collaped Security bank, New York, who was assisting in winding up the institution, is a defaulter to the amount of $70,000 Several of the transatlantic steamship companies have resolved to reduce the number Five of the of passages of their steamers principal stores in Keesville, N. Y., were destroyed by fire, there being no fire extinguishing apparatus in town except a force pump, which was frozen After a fight between the Mexican state troops and insurgents, at the town of New Laredo, near the boundary, the state troops fired on United States troops, when our troops replied with twelve-pound By howitzers, silencing their opponents the falling of a high trestlework at Little Falls, N. J., two men were instantly killed and three others fatally injured. All were terribly mangied Advices from San Domingo say the election passed off peaceably. Espaillat was elected president by an overwhelming majority Philadelphia's sencus shows a population of 817,488.
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amount of $0 building was so heavily mortgaged that the rent only defrayed the interest on the mortgage. Suits, how. ever, are pending against the president and trustees, and may yet result in yielding something. Clinton Baok collapsed July 5, 1877, with a roll of 1,300 depositors, calling for $88,000. Mr. Edward L. Paris was appointed receiver by Judge Landon July 17. 1877. The panie of 1873 caused such a shrinkage in the securities of this bank that It was reduced to 118 last legs, and was only kept alive by the personal sacrifices of 118 trustees, Who struggled on, making up the deficiency from year 10 year until they grew tired. From the sale of real estate owned by the bank and available assets the depositors may yet realize a dividend of thirty-five per cent, out toey must have patience. Clairmont Bank closed September, 1877, on 1,000 Repositors, representi $100,000. Judge Westbrook appointed General Henry V. Smalley receiver. but though the available assets are rated at sixty cents no dividend bus yet been declared, and the late recelver is enjoying himself in Canada. His successor as receiver is Mr. Clark Brooks, no is expected to do thing possible for the depositors GERMAN UPTOWN BANK. This institution closed on December 6, 1875, with a roll of 4,399 depositors, claiming $229,436. Mr. Herman Uni was appointed receiver by Judge Davis, and the depositors received eighty cents on the dollar, the last dividend being declared September 4, 1876, while another is expected about this time of teu per cent. The trouble with this bank was that its assistant Secretary, Schwartz, who is now in Sing Sing, stole liberally of its lunds, and a consi erable amount of its securities were in depreciat Southern bonds. The German Bank, of Morrisauia, failed March, 1877, having 2,200 depositors, 10 whom 11 owed $230,000. Mr. William J. Best was made receiver by Judge Landon, and he expects when all the available assets are realized and the trustees made to pay on account of illegal investments that the depositors will be reimbursed to the extent of seventy five cents on the dollar, but they have had nething yet. Mr. Best says that when he took possession of the bank last July its cash amounted to only $351 95 and it owed $54 000 to sundry secured creditors. including two of its own trustees The sum named had been borrowed at different times by the officers LO meet current disbursements, its payment being guaranteed by the pledge of 10wn bonds and bonds and mortgages. Mr. Best says he holds railroad bonds and other securities to the amount of $167,000, and this amount he shall endeavor to recover from those trustees who voted in favor of the purchase of the bonds and of making the loan on railroad securities, both acts being in direct violation of the charter of the bank and of the laws in relation to savings banks. If he only succeeds in this it will be a well taught lesson to all trustees in future. GUARDIAN BANK. This bank had 1,000 depositors, to whom it owed $560,000 on the day it closed, November 17, 1871# Among its directors were well known members of the Ring. Its first receiver was Mr. Jeremiah Quinlan, appointed by Judge Barnard November 17, 1871. Mr. Mr. Walter S. Roche, one of the directors, who held himself responsible for the failure of the bank. turned over to Quinlan his entire property, to make good the losses. This property realized enough to pay the depositors in full and leave a surplus of about $150,000; but Roche WMS cheated of his last dollar. Quintan resigned and Peter J. O'Donohue was ap. pointed his successor by Judge Donohue; but no Was removed by Judge Lawrence and Mr. John T. McGowan, a lawyer of good repute, WILL substituted in his place. Suits against Quiolan for the recovery of the moneys were promptly started by Mr. McGowan, but nothing has come of them yet. The depositors, however, ought to be thankful to get so much as ninety live cents OD the dollar, though it Was secured by the beggary of Roche. MECHANICS AND TRADERS' BANK. This closed June 10, 1876, having 3, 300 depositors, to whom it owed $1,454,000. On July 13 Mr. William J. Best was appointed receiver by Judge Osborne. The depositors were paid seventy one cents on the dollar, the last dividend having been declared December, 1877, and one more of ten or filteen per cent 18 expected to be declared within a few months. Snrinkage of values, along with culpable mismanagement, brought about the tate of the Mechanics and Traders'. MUTUAL BENEFIT BANK. This yielded up the ghost November 27. 1875, after being seven years in existence. It bad 4,000 depositors, to whom It owed $450,000. Judge Donohue appointed William F. Addried receiver. The depositors were paid fifty cents on the dollar up to May, 1876. Another dividend of ten per cent, and though a (orther one of ten 18 hoped for there 18 not much faith in its being realized. Fall in real estate and stupid management brought this concern to its inglorious end. MARKET BANK. This institution went under in January, 1872. through the rasculities of ring composed of its officers and one or two outsiders. The number of its depositors was 1,900, to whom $1,000,000 were due. Mr. James Dennis was appointed receiver January 20, 1872, by Judge Barnard, but the appointment, owing to the character of the Judge, excited the suspicion of the depositors, which culminated 12A such action being taken as resulted in the rejection 01 Dennis and the throwing of the bank into bankruptcy. Mr. Francis W. Worth, who died the following year, was elected assignee by the creditors, and about the same time the secretary of the bank, Conklin, departed for Canada with as much of the funds as he could conveniently lay hold OI. On Worth's death, in September, 1873, John S. Platt was appointed his successor by Judge Blatchford, but he succeeded to little more than a legacy of barassing litigation about real estate and squabbles with lawyers about fees. The bank paid thirty-eight cents on the dollar up to March 12. 1873, and another dividend is hoped for some day in the future. NEW AMSTERDAM BANK. This concern expired September 27, 1876, with a roll of 2,100 depositors, representing $510,000. It had been in existence eight years and was lodged in a large and most expensive building, that proved a fatal drag upon its resources. Mr. Richard M. Bent was appointed receiver December, 1876, by Judge Landon, and up to October 1877, bad paid the depositors sixty-five cents our the dollar. with a promised forthcoming dividend of twelve per cent. NATIONAL BANK This was a savings institution of no great consequence, and was more or less identified with the Ring, along with which It collapsed. "Hank" Smith was president. The trustees made up the deficiency and the depositors, to whom $190,000 were due, were paid in falls The receiver was appointed by Judge Barnard, but as be neid the office only ball a day, was offered $6,000 for his services, which he indignantly declined and felt ashamed o: the whole business, his name never transpired. PROPLE'S BANK. This was rather a weak institution and collapsed immediately when the hard times set in November 26, 1875. It had 1,296 depositors, to whom it owed $195,000. Isaac V. French Was appointed receiver by Judge Landon and succeeded in paying 33 1-3 cents on the dollar to the depositors up to April 4, 1876. Within the past SIX months 10 per cent additional has been paid, making 10 all 431-3 cents on the dollar, an amount which the depositors when the crash OCcurred hardly ever expected to get. SECURITY BANK. This bank failed November 26, 1875, after an existonce of seven years, which appears to be about the average longevity of a New York savings bank. It had 2,600 depositors, entitled to the gross sum of $390,000. Mr. William M. Banks was appointed receiver January 28, 1876, by Judge Landon, and up to May 1877, paid the depositors ty-seven and a half cents on the dollar. A delalcation on the part of the secretary, John L. Sen, who was subsequently sent to the Pemtentiary, and also the tall 10 the value of real estate, were the causes of the collepse. Mr. Banks expects within two months more to pay an additional live per cent THIRD AVENUE BANK. This bank closed with a deep. resounding crash September 30, 1875, and produced more w despread distress than hall the other banks put together. It bad the immense roll of 8,000 depositors, to whom was due $1,400,000. Mr. William S. Carman was first appointed receiver by Judge Osborne October, 1875, but was subsequently removed and Mr. Samuel H. Hurd, the present receiver, appointed in bis place by Judge Westbrook. Everybody has heard the history of this bank and its disgraceful and. corrupt management A loop in the law permited the escape of the president and trustees. Fifteen cents on the dollar, what they have got already is nearly all the depositors are ever likely LO see. The management of this concern was illustrated in the matter of the trustees bond suit, ID which " was shown that when the bank ran behind 80 that it could not pay a dividend the trusiees held a meeting and drew up a bond by which they became individually liable to the amount of