e81e6ef5Partial suspension, Books examined
Other: Later discovery of large teller defalcation ($69,000) and winding up by receiver; partial resumption/payments to some large depositors before full winding up.
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Run on a New York Bank. NEW YORK, Nov. 26.-There was a run ON the People's Savings Bank this morning, but the officers closed their doors and took advantage of the sixty days notice. Officials say that the bank which was affected by a run on 3d avenue Savings Bank a short time ago will be able to pay now 75 cents on the dollar. There was also a slight run to-day on the Security Savings Bank, but not NO large as in the case of the People's bank.
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NEW YORK ITEMS. NEW YORK, November 26.-A dispatch from Paris says a rumor is prevalent to the effect that there is a movement on foot among the people of Savoy, having for its object a separation from France and re-annexation to Italy. The Central Park Savinds Bank, a comparatively small institution, is to be wound up, by the State Superintendent at the request of its president. The New England Society met in special session to-day, and adopted resolutions of regret at the death of VicePresident Wilson. The Manufacturers' and Builders Bank, at Third avenue and Fifty-seventh street, suspended this morning. The excitement in the vicinity among depositors is intense. There was a run on the People's Savings Bank, Third avenue, this morning, and the officers closed the doors, taking advantage of sixty days notice, as this bank was affected with others by the run on the Third avenue Savings Bank a short time ago. There was also a slight run to-day on the Security Savings Bank.
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The number of open accounts on Jan. 1, 1875, was 1,587. The amount deposited during 1874 was $424, 812 96, and the amount withdrawn during that year, $449,850 23. Deducting tee bond of the trustees from the assets, there was a deficiency of over $45,000. The Security Savings Bank is now being examined by Mr. Reed of the Banking Department. The bank is at No. 507 Third-ave. D. T. Marshall. Excise Commissioner, is President, and Wm. M. Banks, Secretary. In the last report to the Legislature the assets of the Security are represented at $660,630 94, and its liabilities at $649,600 43, being au excess of assets of 811,030 51. The number of open accounts in January was 3,313. The number of accounts opened during 1874 was 1,099, and the number closed during same year 1,173. The amount of money withdrawn dur1874 was $623,555 59, against $629,375 45 deing posited, of which $33,486 81 was interest credited. Mr. Ellis states that during the Fall there have been large withdrawals from the Security Bank, so that its assets and liabilities are now probably far below the sums given. Mr. Marshall and two other gentlemen interested in the Security Savings Bank were found at the residence of the former last evening in consultation. Mr. Marshall stated that the bank was perfectly solvent, and it was an outrage to try to injure its credit. No other institution in the city was administered with more soundness and economy, the expense for clerk hire being only $1,500 a year. Since the Third Avenue Savings Bank's suspension, the Security had paid out $250,000. About $400,000 remained on hand, every dollar of which was secured to the depositors. A large portion of the money was loaned out on bond and mortgage. The bank had done an excellent business, all the loans made being ou the best security. It had no unproductive real estate, or real estate that bad shrunk in value. The call loans' were especially good. The bank was fully able to meet all demands. In view of the damage which had been done by the circulation of injurious statements. there might be a run on the institution this morning. If this should take place, the bank officers would demand the 60 days' notice provided by law, and, if necessary to protect the interests of depositors, would go into voluntary liquidation. The gentlemen, after making these statements, went to the Metropolitan Hotel to see Superintendent Ellis.
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Shaky New York Banks. The Manufacturers' and Builders' Bank, in New York, suspended yesterday. Its liabilities, not including its capital, which is $180,000 are reported at $200,000. There was a run on the People's Saving4 Bank, but its officers took advantage of the 60 days' notice, and closed their doors. There was also a slight run on the Security Savings Bank.
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NEWS OF THE DAY. "To show the very age and body of the Times." The report of the failure of the Manilla house of Russell, Sturgis & Co., is confirmed by yes. terday's London advices. Small pox is prevailing at several points along the has of the Delaware and Hudson canal, in New York and Pennsylvania. Cardinal McCloskey arrived at New York yesterday, and was escorted to bis residence by a delegation of elergymen and laymen. The announcemet that ex-Mayor Hall would appear at the Park Theatre, in New York, in a new drama collaborated by him, has excited much interest. A dispatch received at Quebec from one of the survivors of the Magdalen Island fluet says SIX vessels were lost and only seventeen III D were saved out of sixty-two. Great snow storios are reported in the prov ince of New Brunswick. In some places the snow eighteen inches deep. Several school ers are ice-bound at Port Duchene. Ao elderly gentleman caused some excitement in a street car in Baltimore, yesterday, by an attempt to administer personal chastisement to a young geutleman. The public prosecutor at Berlin has apphed to the Senate of the State Tribunal to indict Count Von Arnim for treason, on account of his alleged authorship of the pamphlet which recently appeared. The sum of $105,000 has been subscribed by the citizens of Cincionati, which, with the $145,000 given by Mr. Reuben Springer, completes the sum necessary for the erection of the new Music Hall. A Madrid special says that Mr. Layard, the British Ministert Spain, when passing through Bilbao recently, refused to receive a visit from General Burriel, of Santiago notoricty, who is Governor of the Province, and has been remonstrated with by the Minister of State. Lyon (the signal officer on Mount Washington, N. H.,) supposed to have been lost ou the mountain during the severe storm of Wednesday, reached the summit next morning in an exhausted condition, having passed the night in a deserted hut. While pleading a case in the court-room at Westminster, Md., yesterday, Elijah F. Crout. esq., a leading member of the bar of Carroll county, fell to the fl or and expired with startling suddenness. The deceased was aged fiftyfive years, and was greatly esteemed. The Manufacturers' and Builders' Bank of New York suspended yesterday. There wasa run on the People's Savings Bank, but the officers took advantage of the rule requiring sixty days' notice for the withdrawal of depositsand closed their doors. The bank will pay seventy-five cents on the dollar. There was also a slight run'on the Security Savings Bank. At the execution of a colored manand woman yesterday at Monroe, La., for the murder of the latter's husband, a horrible scene was enacted. The woman died with but a slight struggle, but the man by some means succeeded in freeing his arms of the cords by which they were pinioned and grasped therope above his head and one of the supports of the gallows, when the Sheriff and jailor seized his arms and held them down until death put an end to his struggles.
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Total $92,778 Since the above report was made the complexion of affairs materially changed, and it appears that at the time the new building was occupied the whole of exthe depositors' money had, with the ception, perhaps, of $5,000 or $6,000 in cash, been sunk in the building. With regard to the building and the manner in which the bank was run, the story is better told in the words of the Bank Superintendent, Mr. Ellis, who, in conversation with a HERALD reporter last night, said substantially as follows:"it was by my order that the Central Park Bank closed. I have known for some time that they were not in a condition to go on with their business, and I applied for the appointment of a receiver. This not being done, I perempThe torily ordered the bank to be closed up. way in which my attention to the condition of affairs was called is as follows: When the new building was completed I was applied to by the president for permission to allow the bank to move to its present location. Knowing that the business usually done was but small I did not see what they wanted to change their offices for. I came on to New York and began an investigation, when I found that the bank had purchased the lot at the corner of Forty-eighth This street and built the present edifice. was the first intimation I had that they had begun building. The property had been bought and the building erected with THE DEPOSITORS' MONEY, which amounted to somewhere about $40,000 or I $45,000. The total cost of the building and lot was, believe, about $76,000. On this sum was paid $40,000 and a second mortgage given for the balance to Mr. Gearty, the President of the bank, who built the house. The first mortgage was, of course, held as security for the depositors, I found that there was existing, even looking upon this security as good, a deficiency of between $5,000 and $6,000, and until that was made good refused to sanction any removal, while at the same time I The had almost determined to close the institution. President finally said he would make up the deficiency himself by writing off from his second mortgage the sum of $5,000, and giving one to the bank for the same amount, which he did. This made the bank apparently straight on paper, that is to It say, the depositors had security for their money. was then said that it would be a saving of the $2,000 a year rent which the bank was then paying if the removal was made, as they had on their hands the new building and might as well occupy it. at last gave my consent, and after this removal was effected. some two or three weeks since, I continued to frequently look after the bank. Finding that the depositors were gradually withdrawing deposits, the money for which was furnished by the $5,000 or $6,000 held back when the $40,000 was paid, 1 determined to close the matter." A SINGUEAR FACT will be noticed in the above statement, which is that Mr. Gearty should not only act as President of the bank, but be the builder of the premises, while at the same time he is the second mortgagee, and paid himself the $40,000 out of the moneys entrusted to him for safe keeping by the depositors. Mr. J. W. Carey, the Vice President, has, it is understood, been busily engaged in doing the painton the building, inside and out No doubt these model ing officers thought it but right that the money spent the should be retained and divided for the benefit of brotherhood. The only wonder among banking people generally is that the Central Park Bank was not closed long since, for it has long been talked of What portion of their a deposits the unlucky depositors will ever get back is problem difficult to solve. The dividend will in all proba- be bility be not more than thirty per cent, and it may even very much less. THE SECURITY BANK. The practical stoppage of the Security Savings Bank took every one by surprise yesterday morning, for it was looked upon with great favor and confidence. inPeople at first refused to credit the fact, but when quiry was made at the office no further doubt existed. There they found posted on the glass partition enclos ing the clerks' desks the following cards:NNNNO This Bank will decline to receive deposits or 2 2 pay drafts until an examination which has been re {quested shall have been made by the State Superin tendent. Mr. Ellis, the Bank Superintendent, was present 2 at the bank this morning and states that he has every confidence in the solvency of the bank, and that any statements purporting to have been made by him regarding the appointment of a receiver are without the slightest foundation. He will ex amine the bank on Monday. ONNAMI Mr. Commissioner D. D. T. Marshall was on hand throughout the day, and, in answer to all inquiries, stated in the most emphatic terms that there exists no ground for any apprehension of loss to the depositors. Every claim would be paid in full. The trustees, he said, had simply determined, In order to avoid a run on the bank, to not receive any more deposits and to avail themselves of the sixty days' notice required by law to be given e by the depositors before withdrawing their money. , This course will be followed until the Bank Superin tendent has made an examination into the bank's affairs. "This is, of course, a practical suspension, but leaves us in a position," " said Mr. Marshall, "to go on or wind up, according as the official examination shall determine our exact condition. The securities are all first class, and will fully realize all they are set down for on was the books." This fact, it may here be mentioned, afterward verified by the reporter by inquiries made that in other quarters Indeed, it is the general belief mapk is Able to DAY every one, There, however.
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Failure of Four Institutions Yesterday. CONSTERNATION ON THIRD AVENUE The People's, Security and Central Park Savings Banks Suspended. Winding Up the Manufacturers and Builders' Bank. THE PROSPECTS FOR DEPOSITORS. That Third avenue is an unfortunate location for financial institutions was fully demonstrated yesterday by the closing up of four banks-viz., the People's Savings Bank, the Security Savings Bank, the Central Park Savings Bank and the Manufacturers and Builders' Bank of Deposit. The sudden collapse of these banks, following 60 quickly upon that of the notorious Third Avenue Bank, caused no little consternation among all classes of citizens, and it was no infrequent thing to hear loud and angry language uttered against all banking institutions generally, and particularly against the officers of the three savings banks already named, for having, as it was claimed, continued to receive people's money when they must have been aware of their insolvency. Owing, perhaps to the heavy rain storm, there were but few of the unfortunate depositors who visited the premises where their money is locked up. In fact, bnt for the closed doors and the presence of a policeman on guard one would have passed by without knowing that anything so serious as a stoppage had occurred. Even the few unfortunates who did visit the broken banks were assured in the most dulcet tones by the different officials that their money was perfectly safe and they would only have to wait a short time to get it in full, dollar for dollar. However, it appears from all the inquiries that were made that, with the exception of the Manufacturers and Builders' Bank, there is considerable doubt about the capability of any of the others to meet their liabilities, except, perhaps, at a very heavy discount. The statements of the several banks and the information obtained from the officials 18 given herewith. THE CENTRAL PARK BANK. The announcement made by the HERALD that a receiver had been appointed to wind up the affairs of the Central Park Savings Bank doubtless prepared the depositors for the closing of the doors yesterday morning, for there was nothing like any of the usual entitement around the premises that is usually attendant on a bank failure. In fact there was no one present in the offices through the day either to give information or answer inquiries. The President and Vice President could not be found and no statement could therefore be obtained from them as to the assets and liabilities. The following, however, correctly sets forth the condition of the bank last January, as sworn to by the officers and reported to the State Superintendent:-
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[CONTINUED FROM FIRST PAGE.] Panama, Nov. 17.-Everything quiet. The people have resigned themselves to the provisional government. President Arosemena has gone into the interior. NEW YORK, Nov. 26.-The Central Park Bank, a small savings institution up town, will be wound up. The Manufacturers' and Builders' Bank has suspended. There was a run on the People's Savings Bank, but the officers took advantage of the sixty days' notice allowed, and closed the doors. There was a slight run on the Security Savings Bank. Cardinal McCloskey was met on landing by a delegation of the clergy and laymen and escorted to his dwelling. QUEBEC, Nov. 26.-One of the survivors of the Magdalen fleet says six vessels were lost, and only seventeen out of sixty-two persons were saved. BOSTON, Nov. 26.-The creditors of Lee & Shepard have accepted twenty-five cents on the dollar, payments to be made in eight instalments. VIRGINIA CITY, Nov. 26.-The new Ophir mines commenced hoisting from 1300 feet level. SAN FRANCISCO, Nov. 26 -Benj. F. Gentz, of Boston, and Chas. Knight and wife, of Waltham, were lost on the Pacific. The schooner Sunshine, hence for Coos Bay, is ashore. bottom up, at the mouth of the Columbia River. It is reported she had thirty passengers and a crew of ten men; all are supposed be lost. Philadelphia, Nov. 26.-In the case against the President of the Bank of the Republic for $500 penalty, for refusing to allow Supervisor Tutton to search the bank for misstamped checks, the Judge said the Supervisor was not the proper officer to make the examination, and a verdict was rendered for defendant. FLATBUSH, N. Y., Nov. 26-In an altercation one woman killed a child in the arms of another woman, with a poker. MILFORD, Pa., Nov. 26.-The barn and sheds of Wm. Garrison were burned with LA three cows, a valuable horse, and a tramp who slept in the barn. MILFORD, PA., Nov. 26-The small-pox has broken out along the Hudson and Delaware Canal. The company have quarantined all boats showing the least symptoms of the disease. TOBONTO, Nov. 26.-Ex-Alderman Clement has been arrested for complicity in the muider of Miss Gilmore, for causing her death by abortion, and for which Dr. Davis and wife are now under sentence of death. 1 ATLANTA, Nov. 26.-Ten days ago the Gov. 1 ernor required State Treasurer Jones to make in a new bond; the time expired last night, and ] Jones having failed to file the bond, the office became vacant by the operation of the law. The Governor reserves the appointment of a 1 successor until a future day. Treasury business is done through the Controller's office A until an appointment is made. NEW YORK, Nov. 26.-Manager Stuart's ani nouncement that ex-Mayor Hall would appear at the Park Theatre in a new drama is corroborated by him, and has excited much c interest in dramatic, literary and legal circles. t Boucicault, Harlbut and Stuart himself are o said to be his collaborators. LITTLE Rock, Nov. 26.-The Senate passed 8 a bill changing the name of Clayton county I to Clay.
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FINANCIAL. NEW YORK. NEW YORK, Nov. 26.-The Manufacturers' and Builders' Bank, at Third avenue and Fifty-seventh street, suspended this morning. The excitement in the vicinity among the depositors is intense. There was a run on the People's Savings Bank, at Third avenue, this morning, and the officers closed the doors, taking advantage of the sixty days' notice, as this bank was affected with others by the run on the Third Avenue Savings Bank, a short time ago. There was also & slight run to-day on the Security Savings Bank. The Central Park Savings Bank, a comparatively small institution, is to be wound up by the State Bank Superintendent, at the request of its President.
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LAST EDITION. New York. Old Winter-0'Conor-Savings - Banks-Must Hang. NEW YORK, Nov. 30.-The weather this morning is the coldest yet experien ced here this season. The air is sharp and biting and a bitter wind prevails. The cold is felt more intensely from the fact of the sudden change in the atmosphere. Yesterday morning the thermometer indicated 40 degrees above zero. Last night it had fallen to 25 degrees above and at 8 o'clock this morning had dropped to 10 above, and is still falling towards zero. The Savings Bank failures had no appreciable effect on a majority of the city savings institutions. All the banks are paying on demand, and the officers of the large banks state that there will be no necessity for a combined movement to adopt the sixty-day rule. The tailures last week do not appear to have shaken public confidence, and there has been nothing like a run attempted an any of the banks. The suspended Security Savings Bank will probably pay in full, the Peoples' Bank 50 per cent., and the Central Park Bank at least 60 per cent. Judge Barrett to-day denied the motion for a stay of execution in the case of Charles Weston, William Ellis and William Thompson, the murderers of Abraham Wissing. They will be hanged December 11. CHARLES O'CONOR. NEW YORK, Nov. 30.-Charles O'Conor, the criminal lawyer, whose critical illness at his residence at Fort Washington, as announced yesterday morning, was still alive last night, but no hopes are entertained of his recovery. The exact nature of his disease has not been clearly defined. The stomach, however, is the seat of all his trouble, and for several days he has been unable to take any nourishment. His physiciaus, after consultation, informed him that he can not survive, and he awaits with calmness and fortitude his approaching dissolution. Cardinal McCloskey has administered to him the last rites of the Roman Catholic Church. He is over seventy years of age. His wife, who was an Episcopalian, died two years ago.
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EASTERN NEWS. New York News. NEW YORK, November 29th.-Information from Fort Washington received late this afternoon states that Charles O'Connor is alive, but very low, and his physicians say he cannot live over night. The Savings Bank failure has had no effect on the majority of the city savings institutions. To-day all the banks are paying on demand, and the officers of the large banks state that there will be no necessity for a combined movement to adopt the sixty days rule. The failures last week do not appear to have shaken public confidence, and there was nothing like a run attempted on any of the banks today. The suspended Security Savings Bank will probably pay in full, the People's Bank fifty per cent., and the Central Park Bank at least sixty per cent. Judge Barrett to-day denied the motion for a stay of execution in the case of Chas. Weston, Wm. Ellis and Wm. Thompson, the negro murderers of Abraham Weisberg, and they will be hanged December 18th.
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CRIPPLED SAVINGS BANKS. SOME FACTS AND FIGURES MADE INTERESTING BY THE RUN. The Third Avenue Savings Bank's Officers 10 R Police Court The Banks that Have Closed their Doors and these that Stood a your SHULAMS amos non a gathering of lawyers and Presidents and ex-secretaries of the Third Avenue il nk in the York He Police court yestenday. Vr Henry 1. Clinton sppeared for " Decker. accused of perjury. and *41 10 48499 uo poinossed quid 1. if District rnev's office. Mr. Do ker's case Taken up first. Messrs, Daniel Bates, Wm. m. PIA pus 'QOA'I 'H up T V us 0.13A reputi 10th safe .) SEM security ALL 12000 091 '100418 HEAL is 'Q181 11) spuog worth at the be hest. instead of par. AS renrein the statement of the Third Avenue usaq you pay spu 0111 110 18440101 941 for sevi rat years. After Mr. Has-ler's tesName: the ex mination W A adjourned until Reput The trustees of the Security Savings Bank met 01 U pay BMI wait on the uperintendent of Banksand ask his advice. Thes also resolved to call - meeting of those depos who represent a misjority of the deposits and get their advice. The Peopl is Sevings Bank. the Security and 0.10.M P-14.L 10 114 para *** closed vesterday. Their officers are awaiting action if the Superintendent of Banks. The Manufacturers and Builders'. Theo a Third averecorded If 10 spoug and 111 speadju 81 to 9 THE na MON 10 AND 041 up 40; save 944 the Seamen N. the nion Dime the Howery. and others millions of irplus report lorger de paujujdxa aq 1000 1441 1081 - msn U.S. 41 sup weap 11 dep 1891 code) and 941 DUE sqoiso P. goadens on 10 mo punosed 91 umoun 08041 ontil II 1 THE RUN ON THE NORTH RIVER. 04.1 cou iting room of the North Riv Savings Bank nt 478 Eighth avenue. was filled all ves terd and time the multitude of depost offed out into the street unfavorable 01 pus STAM подириоэ MID 041 10 aur uns am 01 Pel 1841 puv aujud 0101 and 10 unis th were closed were so numerous 'Sup II" spread ssnq iday 0.10 M squar 10 1001 our pue sions (US JOJ 9.10AM Kenn THE 1000'08's 001 1 SH.W as.m 10110 = 10 quammous 041 UI summer 04: uo per SHAW sycu 1120943 no appea 041 the fa that not doll of the bank money spjoy age was 10 snida e seq pus susodap 01 0068 -us sequen 041 10 uperu ey. 00000$ 10&O spuoq pue sont noas 60 solv S portual " *1 Delive . put 1001 MPN THE : 00 1R put and 18 pas " me mo BY nee some instances per cent. The that ves erday's run lessened toward the day. ind their belief that 111 umour AID 19403 sour Jog мори 400 June u VISA 11 case nl together. The directors -nung "(I 'Keth "M ear queq 0411 Teams wave повпяту LM A imports доривходу '01 TOTAL 111 -sng 104809 мэдриу P W 1V 'SSOIN qdesop mas steem ay '001 on President : : Henry D. Ran 40011 pers TO 11, sa Bennett Seer tarv. THE BUN ON OTHER BANKS. The deposit Franklin Savings Bank. -111 1891 una эряш V 10 anou our If pus U1 usado $8.11 There 000.00$ inoqa uww.p DRIVE 18 01 Japjo up pus MUS moy 1154 inqs SQ1RZ and and 100 ficers of the bank do not expect run shew so # JI 1891 AUS inq as spuemed II - paid . taking tage the sixty rule pue 'sitsodap u] 0001004111 inoquespro 4 suf about $55,000 The investments NJO MPN ULA 10# 99 una puelspuoq same радо pus red enjo 01 XIS most passes the urchase price James Cham beriain is President, and George Crouch, Treasurer A few dissatisfied depositors drew heavily Fourteent 18 qu & A MON em mor street and Eighth avenue yesterday but the nodn upens penson us JOJ goot 100 op 810 Ineir resources The bank round num 000'000$ JOAO puu personsion suchings eases 'shipling beeq every smoke UMO3 UMOP 041 II" ALIVEN production am AO paid D" 1 to 920ml ance and their payments generally in 0% cess their deposits. The East River Bank $99A S.I upon 01 piea 1001 hampers 0 14 terday from $15,000 to $20,000 more than the deposits and the flicers drew $20,000 from the Park Bank to meet a possible emergency but gloods OUT 11 Den you 0.1 1901 have no fear of any extended run. They say exp: you ITEM seq1 'euo aq should 04091 11 TRUE OJR return SARD MIXIS 941 non II" AND The Eleventh Ward Bank at 106 Avenue C paid about $5,000 more than their usual daily disPetty SUM queq am sound 18 pue $100m using pm eyes neus PM Vantage of the sixty days law. said Mr. Timmerman. the Secretary in case of a panic. but 9.48 DABQ ou There a steady run at the Teutonia Bank SEM 000'98$ inoqu puw Awp III V ueAV 98 19 ursed. an amount exceeding the usual payments DV about $30,000 But we have enty them sed neus UR., THE am pps souom right along. We can also get all the money that you Ileas Jayso TOTAL 9.M eq1 u1 1000X0 MEI email aq1 10 gr emergency There is no cause for fear. and we apprehend not the lightest 0.10 M AND em un SHURO STUTAUS aequire 941 IIV auou III inq N program NOS 19 passia anumys sun event SEAM pootion PAOGE esoqi JO our TII 11 THEIR OWN SHOWING The following banks reported their condition of su January Ablugdon Square Savings Bank. at 03 AbingV CHARGES :6991 UI paint thum cker. President. and George " Brown. as are ruvq 8191 JO au S.1 101000 2011 9 separate age pur THIS 18 period 10 990'921$ 041 Kg pa uas ades $1 18 моломоц 10989 am 15 01W180 61 BIRTHER 'sormixg pum oun many -J0141 81/098 is pun 'sduress подот OUTS 1800 2 1281 apquire 100 innome am STUDI perpony was n in performed pepasors The airmont Savings Bank. 247 Greenwich Shorman '02ST IT III 02318 Mandas u MS DIANG pus pa 11/ puu LEMISS securi Sal TO 810880 TO 8800X u 183 11 141 uo net 1099 on MU q SEQUIRE 110 981 spung 181g 004'81$ pu 'serent quemqa pm smood para uo USED SUM DIRECT MODIS arrand to zunoure am 01 seju dinoo 480.11 83080 01 puw our JO our The of 000'0% 4040 10 bank 1874 there had been deposited pue "AB 414713 112 1" NUEST no d 'suemo M M "RATE 90 811 D Hodel nujeq eq 01 pun 16% XII juinj our 1011 Jual SHAM ** 18$ put
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THE SAVINGS BANKS. FEELING OF SECURITY IN THE LARGER INSTITUTIONS -EFFORTS TOWARD RESUMPTION AT THE SECURITY BANK-RUN ON THE NORTH RIVER BANK-EXAMINATION OF THE OFFICERS OF THE THIRD AVENUE BANK. The savings banks "funerally are paying all depositors applying for money. Depositors as a rule do not draw heavily in December, in order to save the interest due at the beginning of the year. The officers of the large institutions have no fear of trouble. There is much distrust as to some of the smaller banks, but it is believed that the excitement is calming down, and that the alarm is local, confined to the Third-ave., between Twenty-third and Fifty-seventh-sts., in the immediate vicinity of the suspended Third Avenue Savings Bank. The President of the People's Savings Bank stated yesterday that there had been no meeting of the trustees or officers of the institution. Nothing could be done by them, and they were awaiting the action of the Attorney-General. They had been given notice to show cause to-day why a receiver should not be appointed. They were not going to show cause, but would allow the appointment of a receiver by default. Several depositors called at the bank during the day for information. No statement has yet been prepared. Mr. Benedict, Secretary of the Mutual Benefit Bank, said yesterday that the trustees were endeavoring to put the affairs of the bank on a sound basis, which would satisfy the Superintendent and depositors, with the view of soon resuming business. Hedeclined to state whether the trustees intended to make up the deficiency as they did in 1873, or what the amount of the deficiency was. No receiver, he said, had been appointed, and he did not think that there would be one. No notice had been received from Mr. Ellis as to what action he would take. By to-day or to-morrow the action of the trustees would probably be made known. A large number of depositors at this bank yesterday gave the required 60 days' notice of withdrawal. Henry Clausen, President of the German Up-town Savings Bank, said yesterday that his bank was in a perfectly sound condition. Two months ago, before be became President, a committee investigated the affairs of the bank thoroughly, and reported its surplus to be over $25,000. No examiner had investigated it since. The eause of the adoption of the 60 days' rule had been the alarm arising from the failure of two or three banks in the vicinity. This bank was located between the Manufacturers' and Builders' and the Central Park Banks, both of which had suspended, and on that account its depositors had shown considerable unnecessary alarm. Sums of $20 were paid without notice. Several depositOTS gave notice of withdrawal yesterday, but Mr. Clausen said there had been fewer withdrawals than he had anticipated. Ane trustees of the Security Savings Bank held a meeting last evening, at the bank, and decided to call a meeting of the largest depositors this week, and ask their cooperation in preventing a run. D. D. T. Marshall, the President, stated to a reporter of THE TRIBUNE, after the adjournment, that several of the largest depositors would be added to the Board of Trustees. The law allowed 30 trustees, and the present Board would avail themselves of this provision, and increase the number. Mr. Marshall also said that the bank had paid to depositors during the past five years $156,000 in interest, and had not lost a dollar by bad investments. There was a surplus over liabilities, and the Bank Examiner's statement showed that the bank wassound. Many of the depositors had called at the bank and expressed their confidence in the management. Mr. Marshall thought tuat the bank would go on again by next Monday. A run was made on the North River Savings Bank yesterday, but the officers are satisfied that it will not continue. The bank has a surplus of $60,000. It is no 11cumbered, the officers state, with any real estate or depreciated securities, all its stocks and bonds are first class, and its assets have a known market value far in excess of the amount due depositors. The total deposits in this bank are about $840,000. At the Yorkville Police Court yesterday, the examination into the charge of perjury against the officers of the Third Avenue Savings Bank was begun, Justice Duffy presiding. The complainant was Georgiana F. Levien. The prisoners in court were John H. Lyon. Toompson W. Decker. David Morgan, Daniel Bates, and William S. Carman. The first witness was Charles W. Hassler of No. 7 Wall-st., editor of Hassler's Weekly Financial Reporter: The testimony of Mr. Hassler, who is regarded as an expert, was mainly occupied in quoting the actual marketable value of Southern securities held by the bank during The of the witness WILA
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THE SAVINGS BANKS. sOLVENCY OF THE MECHANICS AND TRADERS' SAVINGS INSTITUTION - CLEAR SURPLUS OF $50,000-OTHER BANKS. A number of the depositors of the Mechantes and Traders' Savings Institution, at No. 283 Bowery, applied for their money yesterday. The banking rooms were crowded and the payments were made slowly, and after a careful examination and comparison of the pass-books with the ledger accounts of the bank. Some of the trustees were present endeavoring to reason with the frightened depositors, and to convince them of the solvency of the institution. To & reporter of THE TRIBUNE were shown the books and accounts of the bank, with a statement of the market value of the assets. A. T. Conklin, the President, and Henry C. Fisher, the Secretary, declared that the bank was perfectly safe, and could pay dollar for dollar of liabilities without any difficulty. Mr. Conklin stated that the bank wasexamined on April 1, 1874, by theState bank examiners, who reported a surplus of $82,333 18* The bank property was appraised by appraisers em. ployed by the Bank Department, and was put down to its lowest market value. The market value of the stocks, bonds, and other securities was obtained by the examiners after consultation with leading brokers in Wall-st. The annual report, Jan. 1,1875, said Mr. Conklin, was an honest and true statement of the bank's condition. It showed a large surplus over liabilities, and was in every particular corroot. A8 to the item of suspense account, bankruptcy claim, worth $20,000," that claim was well known by the trustees to be good beyond all question, and would yield, principal and interest, at least $25,000 in a few months. The lawsuit pending in relation to it was merely to determine which of two very rich men was liable to the bank for the full amount. The total market value of the stocks and bonds owned by the bank at the present time was largely in excess of the figures reported by the bank examiners. A profit of $20,000 had been made last year on the sale of Government securities a few days before the examination, which did not appear in the figures of the examiners. This sum alone met all the charges of salaries, taxes, and incidental expenses. Salaries had been reduced $5,000 last year, and a considerable reduction made in advertising, stationery, &c. In every way, Mr. Conklin continued. the bank had economized and sought to merit the confidence of its customers and the public. After deducting this suspense account of $20,000, and making due allowance for any unexpected shrinkage, the bank had a clear surplus of at least $50,000. The trustees had decided to enforce the 60 days' rule in extreme cases, but would pay small amounts and pressing claims without delay. This action had been taken in order to protect depositors in the payment of interest due them at the end of this month. Mr. Conklin said, in conclusion that there had been a want of harmony in the Board of Direction some time ago, and the attack on the bank might have originated from that cause. The Mutual Benefit and the Security Savings Banks continued open yesterday, without transacting any business. The Security, it is understood, will resume in two or three days. A receiver for the People's Savings Bank had not arrived at the bank yesterday afternoon, but it is not doubted that an appointment was made yesterday.
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GUARDING WHAT IS LEFT. MORE RECEIVERS APPOINTED FOR THE CRIPPLED BANKS. A Little Поре for the Third Avenue Bank Depositors-The People's, Central Park, Mutual. and German Up-Town Banks. The receivers of broken savings banks were busy yesterday. Mr. Hurd. of the Third Avenue, said to a SUN reporter: My business will be to get all the money I can for the deposHors. The criminal prosecutions are affairs of the District Attorney. I shall take no part in them except as required by law and duty as a citizen. I will institute civil proceedings against any trustee who may have rendered himself liable for the losses of the bank. I will pay the depositors as soon as I can realize on the assets. I have no alliances, and am bound only oy the orders of the Court which appointed me." One depositor, a moulder, who works at night. and who has about $2,000 in the bank, has been in the habit of walking up and down in front of the building every afternoon since the failure. When ne heard that Mr. Hurd was receiver he expressed biseatisfaction, and was absent from his post vesterday. Mr. Isase M. French vesterday took charge of the People's and the Central Park Savings' Banks, of which he has been sppointed receiver. Ho transferred the assets of the People's Bank to A Tr at Company, in accordance with the order of the Court at Albany. There are no BMS. in the Central P rk Ba: K to transfer. and the movement of trustees to pay the depositors and take the bank building was not instured. Unless 8 mething be done. the mortgages on the building will be foreclosed, and the depositors whitget little or no things .r. Herman Uni, one of the editors of the Staats Zeitung, and step-son of Mr. Oswaid Ottendorfer. was yesterday appointed receiver of the German Uptown Savings B nk. The complainant Was John Martin Mant. n depositor of $2,300. and the complainant set forth that the amount due to depositorsis $838,000, and the assets not more than $800,000, all of which was admitted in the answer. The receiver gave a bond for $150.000. The order requires him to deposit all the assets coming into his possession, except $25,000. with 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 ithin each succeeding forty days. or show cause. The appointment of Mr. Uhl is said to have the hearty approval of Mr. Claussan, the late President, who exposed the condition of the bank. and gives satisfaction to the depositors. On complaint of Edgar A. Simmons. a deposttor in the Mutual Benefit. W. F. Aidrich, law yer. of 84 Broadway, has be D appointed receiver of the concern. His bond is fixed at $75,000. The compt Int represented the deposits to be $450.000, and the deficiency $22,500. So far as the SUN reporter could learn, Mr. Aldrich is unknown to the depositors in general, and many of them think that they should have been consulted. The appointment is at the instance of the trustees. The Security Savings Bank nominally resumed business yesterdav. The bank paid ten per cent. to these having tarze deposits who desired their bank
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DISHONEST BANK TELLER. He Absconds With a Portion of the Stolen Money. NEW YORK, April -John Seal, one of the tellers of the Security Savings 'Bank, has been discovered to be a defaulter to the amount of $69,000, The bank is being wound up by a receiver and the discovery was made through the settlement of depositors' accounts for payment of dividend. Seal has been employed in the bank since 1872 and his frauds continued systematically through all this time. When the discrepancies were discovered in the bank, but before suspicion of him had arisen, he finished up by taking $500 more and absconded with that sum, and about $1,000 belonging to parties not connected with the bank.
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Scill Another Dishonest Bank om. cial. NEW YORK, April 11.-John Seal, one of the tollers of the Security Savings Bank, is discovered to be a defaulter in $69,000. The bank is being wound up by a receiver, and the discovery was made through a settlement of depositor's accounts for the payment of dividends. Seal has been employed by the bank since 1872, and his frauds continued systematically through all this time. When the discrepancy was discovered in the books, but before suspicion of him had arison, he finished up by taking *500 more, and absconded with that sum and about $1,000 belonging to parties not connected with the bank.
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SUSPENDED SAVINGS BANKS. SEIL'S DEFALCATIONS--SALE OF PROPERTY OF THE THIRD AVENUE BANK. William M. Banks, the receiver of the Security Savings Bank, has filed a petition in Sapreme Court, Chambers, setting forth that he had continued the employment of F. R. Mills and John H. Seil, who had been employed previously by the bank and were believed to be honest and competent. He employed them to verify the depositors' pass-books by comparing them with the ledgers of the bank, and to take off a balance sheet from the depositors' ledger to show the amount due depositors. On the faith of their statements be declared a dividend of 25 per cent March 22, and proceeded to pay it. On April 4 he learned that Sell had come to the bank the previous night and stolen $500. Thereupon he employed accountants to examine the accounts, and, from false entries already discovered, fears and believes that Seil'a systematic defalcation since 1872 will amount to nearly $70,000. He has employed detectives to follow Seil, and now asks that his acts in employing accountants and detectives be ratified and his authority to do so continued. Judge Donobite yesterday granted an order that the receiver be authorized and empowered to employ expert accountants and detectives and to offer a reward for the arrest and conviction of John H. Seil and to postpone the declaration of the second dividend.
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MINCELLANEOUN. The new census of Philadelphia, just taken, shows a population of 817,428. The direct cable has been repaired and telegraphic communication is restored. Franz Rochell, a tobacco merchant of New York, has become insane, making the eighth case of lunacy brought to the toombs from the hippodrome since Moody and Sankey began their ministrations there. Mrs. Morgan, sister of the famous Gen. John Morgan, of Tennessee, committed suieide in New York last week by taking laudanum. The cause is attributed to excessive grief over the loss of a daughter some time ago. John Seal, one of the tellers of the Security savings bank of New York, is discovered to be a defaulter of $69,000. The bank is being wound up by a receiver, and the discovery was made through settlement of depositors' accounts for payment of dividend. The foreign commerce of New York last week was: Merchandise'imports, $7,369,522; produce exports, $4,801,300; and specie exports, $979,900. The total imports since the first of January have been $94,422,419, against $106,876,291 last year, and $121,670,692 in 1874. The exports of produce were $64,813,549, against $63,601,149 in 1875, and $73,805,997 in 1874, and the total exports of specie foots up $14,473,745 against $15,816,273 last year, and $9,151,146 in 1874.
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CIVIL NOTES. The receiver of the Security Savings Bank on Satarday filed his report in the County Clerk's office. He has paid out during the month of May $2,846 83, and for sundry expenses he has paid $291 93, leaving a balance in his hands of $13,667 15. Mrs. Kley, who was charged before Justice Duffy ome time ago with obtaining money on falso prétenses-the charge has since slept in the District-Attorney's office-has brought suit against the persons who she alleges instigated those proceedings. Judge Barrett, in Supreme Court, Circuit, on Satrday, denied the motion of the Corporation Counsel for an extra allowance of costs in the suit of Hannah Kellum, the executrix of the architect of the new Court-house, against the city, holding that as executrix she had a prima facie case. which it was her duty to test, and she should not be mulcted in extra costs. In the case of Austin Black against the Continental National Bank, tried last week before Judge Dykman, in which every resource was employed to test the question whether or not a certification of a $63,000 check was a forgery, the jurors, after being out 16 hours, came before Judge Donohue ou Saturday morning and announced that they could not agree. There were nine for the plantiff to three against him. In the suit of Pinckney against the Mayor, Judge Van Vorst has decided that when a tax-payer gives at the tax office a full description of the property he intends to pay taxes upon, but makes a mistake in the ward number under which it is entered on the books, it is for the Receiver of Taxes to see that the right lot is marked as discharged from the tax, and if he enters the payment for a wrong lot it is the city's loss, and a sale of the property for taxes is void. Judgment of foreclosure and sale of a mortgage of $50,000 on the Manhattan Club property at Fifteenth st. and Fifth-ave. was filed in the County Clerk's office on Saturday This mortgage was on leasehold property, was made in 1865 by ex-Judge Henry Hilton, William Butler Duncan, and John Van Buren, and was originally for $85,000. Mes-rs. Hilton, Van Buren, and Duncan were the trustees of the property. Mr. Van Buren has since died, Mr. Duncan has become bank rupt, and Mr. Hilton is no longer a member of the club. The smit, it 18 said, was brought merely to recover the full title to the club house and release the trustees.
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# The Distrust of Savings Banks. The run on the Dry Dook Savings Bank, which commenced on Monday, continued yesterday. We presume that the bank is perfectly sound, and that the depositors who are drawing out their money are needlessly alarmed; but, like the rest of the public, we know nothing of the actual facts of the case. The officers of the bank, of course, say that its assets are abundantly sufficient to meet its liabilities; but so likewise said the officers of the Third Avenue Savings Bank, the German Up-Town Savings Bank, the Security Savings Bank, aud all the other banks that have broken within the past two or three years. As to the Bank Superintendent, nobody expects anything from his interposition. It has long been the regular practice of his department to whitewash every rotten concern it has examined into, on the plea that to tell the truth would shake public confidence and bring on a panic. What wonder that poor people, who hear that their earnings are in peril, rush to secure them on the first suspiolon of danger? It is a shame and a reproach to our civilization that so little protection is afforded to savings bank depositors, not only against loss, but against such alarms as that which now prevails in respect to the Dry Dock Bank. If sufficiently detailed reports were exacted of these institutions, so that ordinary business men could judge of their condition, and if the Banking Department would only exercise due vigilance to prevent an improper use of their funds, all trouble could be avoided. As things now are, we blunder along in a happy-go-lucky fashion, which affords knaves ample opportunity for fraud, and gives honest men no assurance of safety.
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OUR SAVINGS BANKS. PRESENT CONDITION OF AFFAIRS OF THE TRADES AND THE MUTUAL BENEFIT-STATEMENT OF THE RECEIVERS. As there has been considerable feeling.and anxiety manifested by many of the depositors of two defunct savings banks now in the hands of receivers-the Trades and the Mutual Benefit-a HERALD reporter called yesterday at the office of Mr. White, to whom the aftairs of the Trades Savings Bank are committed, and of Mr. Aldrich, who looks after the Mutual Benefit. Mr. S. B. White, of the Grocers' Bank, said in relation to the Trades Savings Bank, of which he Is roceiver, that he had only received $700 in cash since he was appointed. The liabilities amount to over $70,000 and the assets consist mainly of bonds and mortgages About $1,000 in cash IS deposited in the Trust Come pany. Since Mr. White became receiver in December last he says that he has been unable, HO far. to see any way by which he can dispose of the bonds and mortgages that form the bulk of the assets of the broken company. No one can possibly tell how much a foreclosure in any one case will bring into the depleted coffers. The case is, be acknowledged, an exceptionally hard one for the poor depositors, but 11 18 out of his power to move more expeditiously. Should he tbrow those assets at present into the market the likelihood 18 that they would re. alize, comparatively speaking, little or nothing The mortgages are in course of collection and many of them are before the courts. Of course suits and countersuits must be expected, and the law's delay in dealing with such cases cannot be laid at the door of the receiver. From another source it was ascertained that the assets of the Trades Savings Bank consist of sight bonds and mortgages on houses and lots in New York and Brooklyn, amounting to $51,000; one bond and mortgage ou property in New Jersey for $5,000, and between $2,000 and $3,000 in cash. Two of the bonds and mortgages, being a second lien of $15,000 on a house and lot in Reade street, are not yet due. All the others are in process of foreclosure. Toree of them, amounting to $12,000, are in judgment, and the three houses and lots are to be sold by the Sheriff of Kings county, at the city salesroom, No. 45 Broadway. Brooklyn, E. D., on the 21st inst. It is impossible to say what the results of such a sale will be, but there is little hope for the depositors to realize by it anything like a fair percentage on what now represents their hard earned deposits. A BRIGHTER PROSPECT. The Mutual Benefit Savings Bank went into the hands of a receiver, Mr. Aldrich, in November, 1875. A payment of ntt per cent was made last May, and a further payment of ten per cent, it is expected, will be made in the same month this year. Mr. Aldrich's representative said that great trouble was experienced in disposing of real estate, $50,000 worth ot which was owned by the company at the date of suspension and $100,000 in bonds and mortgages. Yet the receiver was confident that the loss to depositors of the Mutual Benefit Savings Bank would not exceed twenty-five per cent, and that the final payment would be made shortly after next May. The present state of the market was entirely unlavorable to large transactions in the species of property at the disposal of the receiver. THE SECURITY BUILDING. Judge Barrett yesterday granted an order author izing the receiver of the Security Savings Bank to sell the bank building at Thirty-fourth street and Third avenue, for not less than $35,000, for the benefit of the depositors.
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BOTTOMLESS MONEY BOXES. LOST PLEIADS OF OUR SAVINGS BANK SYSTEMNEW MATTERS FOR THE ELLIS INVESTIGATING COMMITTEE-HOW TO PREVENT FRAUDS. It is claimed by many influential merchants and others who have been interviewed on the subject that the present investigation of the official course pursued by Superintendent Ellis will clearly show that his neglect of duty has caused much of the suffering resulting from recent failures of savings banks. It is also contended that, in addition to the banking institu. tions named in Governor Robinson's late message to the investigating committee, there are other corporations whose cases have not been cited. but which furnish new prima facie evidence against the Bank Superintendent. Among these may be cited the Loaners' Bank of New York. About November, 1875, the Bank Superintendent was asked for a report upon the condition of this establishment, but it appeared that, the bank never having been examined, Mr. Eltis could furnish no information about its status. At the same time a lawyer wrote to the Superintendent asking to have the Loaners' Bank examined, but no examination took place, and the institution failed in May, 1876. A gentleman acquainted with its affairs says:"Its operations were worse than those of a low class pawnshop." The community lost $500,000 by the failure, much 01 which, it is claimed, might have been saved had the Banking Department held the corporation to strict account when required to do so. ANOTHER STARTLING CASE. In relation to the New York State Loan and Trust Company responsible parties state that about March, 1875, Mr. Ell's was officially informed by Mr. George W. Reid, examiner, and Mr. William T. Aidrich and others, that the capital stock had suffered an impairment equal to at least twenty per cent. It was the Bank Superintendent's duty to have caused this deneit to be made good, or to have closed the doors of the company under instructions from the Attorney General. No steps were taken by Mr. Exis and the concern was allowed to remain in the hands of the same parties until January 29, 1876, when the impairment of the capital amounted 10 about ninety per cent, and the trustees voluntarily relinquished the remaining ten conts on the dollar to a receiver. The loss 10 the public was about nine hundred thousand dollars. The wretched condition of this company was known to all persons familiar with us general operations at the time. By the statute of 1874 the superintendence of trust companies chartered by the State was placed under the charge of Mr. Ellis, and the condition of this concern was or should have been well known to him. A FRIGHTFUL LIST OF LOSSES. In conversation with Mr. John Mack, of No. 365 Fifth avenue, that gentleman gave the following estimates of the losses suffered by depositors 10 the suspended savings banks, and says that he believes the greater part of the immense sums which are given below migot have been saved if Bank Superintendent Eths bad properly discharged his important duties:$150,000 Abingdon Square Bank 1,730,000 Bona Street Savings Bank 500,000 German Savings Bank, Morrisanta 2,000,000 Mechanics and Traders' Savings Bank 450,000 Mutual Benefit Savings Bank 750,000 New Amsterdam Savings Bank 200,000 People's Savings Bank 400,000 Security Savings Bank 1,440,000 Third Avenue Savings Bank. 120,000 Traders' Savings Bank 1,000,000 Bank of Lainsburg 1,000,000 New York State Loan and Trust Company Loaner's Rauk 500,000 500,000 Security Bank Manufacturers and Builders' Bank. 460,000 Total $11,200,000 HOW TO PREVENT FRAUDS
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FATAL SECURITY. To THE EDITOR OF THE HERALD:What about the Security Savings Bank, Thirtyfourth street and Third avenue? Has the receiver gone to sleep? Altbough he has realized on the bank property and securities, we, the depositors, have got but little out of the concern as yet. A DEPOSITOR.