ae9a5480Full suspension, Books examined
Other: Receivership and liquidation; criminal prosecutions pursued against officers.
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SAYS a wit: "Last year I saw a watch spring, a note run, a rope walk, a horse fly, and even big trees leave. I even saw a plank walk, and a Third avenue bank run; but the other day I saw a tree box, a catfish, and a stone fence. I am prepared to see the Atlantie coast and the Pacific slope."
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THE SAVINGS BANK FAILURE. AND EXTENT OF THE EMBARRAS MENTS. DOORS CLOSED-WORK OF THE RECEIVERSTATEMENT NEXT WEEK-THE REAL ESTATE THE BANK-FIFTY OR SIXTY PER CENT FOR I POSITORS EXPECTED--CONFIDENCE IN OTH BANKS NOT IMPAIRED-VIEWS OF BANK OF CIALS. The assets and property of the Third Aven Bank were placed in charge of William S. C Receiver, yesterday morning, under an or by Justice A. M. Osborn of the Supreme Cop Albany. The doors were not opened, and the Receive busy all day preparing a statement of assets a bilities for the information of depositors. A notice words following was posted on the front doo closed pursuant to an order of the Supreme Cou on an application of the Attorney-General, request of the Superintendent of the Banking rtment." Twelve to fifteen persons stood around attracted apparently by euriosity. Very few were among them. and there was no exciteme disturbance. reporter of THE TRIBUNE was informed by the that his statement of the bank's affairs would for the public early next week. He declined to f any details at present, but stated that the offic bank were obliged to wind up the business in or all the depositors might be treated fairly. 1 he said, was incumbered with real estate taken which it had been found impossible to dispose great sacrifice. A run would have compel trustees to sell their available securities to pay positors demanding their money, and the result wor been that the few would have been benefited expense of the many. The bank had made a go in 1872, and the trustees had given their individ to the amount of $115,000 to protect the deposit the loss occasioned by the forced sale of securit the run in that year. The bank had not earn money this year, and could not have paid a sal dividend on the 1st of January. Desirous fairly with all the depositors in the distributi the assets, the trustees had decided to go into liquid and had given notice to the Superintendent of 1 Department of their determination for his et eration and approval. After carefully-considering of the bank, the Superintendent h quested the Attorney-General to institute P for the appointment of a receiv Court had granted the application, a property of the bank would be disposed of for t of the depositors as fast ns it could be done wi to all. The amount to be realized would depe much on circumstances, and even an approxim: imate could not be given. the annual report of the Superintendent of the Bar Department for the year 1873, made to the Legis March 1. 1874, shows that the books and affairs bank were examined April 14, 1873, by Geor Reid. William F. Aldrich, and Isane H. Vr Their report showed a deficiency to meet liabilities of $5,735 01. Amo assets were mentioned Kansas State bon 75,000; Louisiana State bonds (levee), $100,00 State bonds. $50.000; Alabama State bon Virginia State bonds and coupons, $3,500; I East Broadway, and Battery Ra Iroad bon The market value of these, however, was et erably lower than the par value. The real esta has been carried by the bank is stated in ti to consist of 92 acres of land at Tarrytown, valu $138,000; five houseson East Forty-sixth-st.,839, at Fifth-ave., Eighty-fifth, and Eighty-sixth-si house, East Forty-seventh-st., $34,000, a No. 36 East Forty-nin b-st., $28,500. In additi the banking-house and adjoining property. bt the bank was prosperous and bad deposits exce $6,000,000. were valued at $200,000. was stated yesterday by a gentleman familiar w property, that it is for the interest of the deposite delay the sale as long as possible. If forced upon 1 at an early day, it is believed that the amou will not exceed one-half the original cost of I official statement shows that the bank was ine rated.in 1854, and began business at Broadway a -second-st. It has had an exceptionsi history. uble, it is well known. originated in a misappropr of its funds years ago, and continued bickerings agreements among the trustees. growing out of str control. It 18 believed by those acquainted with 1 of the securities of the bank turned over to 1 eiver, that in the present depression of business a in values, the depositors may expect to recei 50 to 60 cents on the dollar for their claims. MMENTS OF SAVINGS BANK OFFICERS GENERALI teporters of THE TRIBUNE called yesterday upon 1 of the Security, People's, German, and Manh Savings Banks, the Institution for the Savings rebants Clerks, the Bank for Savings, on Bleeckerother institutions, and conversed with them as failure. They were unanimous in the opinion t) effects would follow beyond the local trouble a of the depositors in the broken bank. The et of the bank. it was stated, had been known for time among bank officials, and measures ha taken by other banks to avert any troul the failure. There was no excitement in the neig and sound banking institutions still had 1 ifidence of the people. The action of the trustees suspended bank in sacrificing securities to meet was commented on unfavorably, and IT was claim it would have been wiser to have closed the doors time than to have attempted to go on with crippl in the face of such persistent opposition. the East River Savings Bank, at No. 3 Chambers-s opinion was expressed that the suspension of t Avenue Bank would have little or no effect eith other banks or on public conddence, as its weak eo had been well known for some time. Its office not prudent in selling securities at & loss
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GENERAL NEWS. DAYTON, Sept. 30.-There were fifteen thousand attending the Southern Ohio fair. One hundred outlaws mostly from the States are in jail here waiting trial at the term of the court. NEW YORK, Sept. 30.-The Board of Directors of the Northern Pacific Railroad today elected Chas. B. Wright of Philadelphia President and George Stark of New Hampshire Vice President. Crowds gathered in front of the Third Avenus' Bank, but dispersed upon notice that the bank was closed pursuant to an order granted by the Supreme Court. BOSTON, Sept. 30. - Lee & Shepard propose to pay twenty cents on the dollar. Their liabilities are over $500,000. MONTREAL, Sept. 30.-The suit brought by the Canadian Institute against the St. Sulpice Cemetery for $2000 in the Guibord case, was dismissed, the two parties dividing the costs. Philadelphia, Sept. 30.-A bateau, containing Goddard Heiss, of Camden, Wm. Randon, of this city, and a child aged four years, name unknown, was run down by the sloop Henrietta, Capt. Goodin, in the Delaware, near Philadelphia. Mr. Randon and the child were drowned. Mr. Heiss clung to the anchor cable, and thus saved himself. INDIANAPOLIS, Sept. 30.-Wm. S. Wood, President of the Greenfield Manufacturing Company, of Greenfield, Ind., committed suicide to-day. Cause financial troubles. He had his life heavily insured. Left a letter stating he had forged a relative's name for $5000.
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ANOTHER BANK SCARE. Considerable excitement was caused in business circles yesterday by a report that the German Uptown Savings Bank, at the corner of Fifty-fifth street and Third avenue, had suspended payments, and that other banks in that vicinity were also in great difficulty, caused by "runs" made by heir-depositors, A tour made by a HERALD reporter among the institutions referred to, proved that the reports were almost enbank reported to have suspended, said:-"The failure of tirely without foundation. Mr. Schwartz, President of the the Third Avenue Bank affected us, as it did all other savings institutions in this part of the city. On Friday, the very day after its doors were closed, our depositors became frightened and drew out $28,000. On Saturday we paid out $55,000; on Monday, $54,000; on Tuesday, $11,000; Wednesday, $10,000 and to-day but $2,794. On Monday we adopted the rule of requiring depositors to give sixty days' notice before drawing on us. That evening we received notices of the intended withdrawal of $6,000; on Tuesday, $32,000; Wednesday, of $37,000 and today, of $15,000. So that we may consider our annoyance past. We never were in any real danger." The officials of several other savings banks up town declared that the distrust existing among a few of their depositors had absolutely been a godsend to them, as it had caused the withdrawal from their hands of a surplus which, in the present state of the money market, they could not invest to good advantage. The President of a large savings bank, in conversation with the writer, said that the banks are paying too high a rate of interest to their depositors. He thought also that the law should forbid any bank to receive more than $2,000 from any one depositor. The savings banks, he said, are now patronized by capitalists who deposit large sums with them, because, under ordinary circumstances, they can draw it out at any time without notice. By this plan they draw six per cent upon their money, whereas, if it were deposited in an ordinary bank it would draw but two or three at most
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Minor Telegrams. The bombardment of San Sebastian by the Carlists has been resumed. News from Bomba report severe outbreaks of cholera in the province of Tinera. Germany will demand this year an addition of six million marks to military estimates. M. De Zannean, one of the Deputies in the French Assembly, from the Loire inferiaure, is dead. Additional circumstances increase the probabllity that Drew committed the Longmade outrage, Five cents per hundred has been added to fourth-class freight on railroads from Chicago to eastern cities, The Third Avenue Bank, of New York, has collapsed, and a run on the German Saving as a consequence. The bank is sound. It was Joseph Behr, instead of Julius Behr, whose body was found in the bayou near Memphis last evening as reported in these dispatches.
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In the long list of reports on Government work, covering so much that is inferior and 80 much more that is extravagant, it is a satisfaction to come across one occasionally that records economical and effective service. To this small minority belongs the engineering work executed in our harbor, under the supervision of Gen. John Newton. At Hell Gate and Diamond and Coenties Reefs, all sorts of expensive tomfoolery had been tried during many years, in vain efforts to obtain sufficient depth of water. At length Gen. Newton undertook the work upon a distinctive system. Slowly but certainly it has been carried forward, till now the removal of these obstruetions to New-York's commerce has become a prospect to be counted by months instead of years. When accomplished these noble works will add largely to the impetus of a revival in business after the hard times. A great effort, on grounds which are fully stated in our local columns, will be made by the Committee of Depositors to have a change made in the appointment of a receiver for the Third Avenue Bank. As a rule, all receivers of bankrupt institutions are a frightfully expensive luxury. Mr. Carver's previous connection with the Bank may be objectionable if it can be shown that his management helped to bring it into its present difficulties, though as a rule the men who have been conducting a business are apt to be best qualified for winding it up after failure. But in either
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THE FIGHT OVER THE SKELETON. Quarrelling for what is Left of the Broken Savings Bank. About three hundred Third Avenue Bank depositors met last evening to hear the sugges. tions of the committee of which Edward MalIon is Chairman. Mr. Mailon spoke in vigorous terms against Mr. Ashbel P. Fitch. who had been appointed counsel at the general meeting of Ofteen hundred depositors in Germania Hall. A power of attorney was presented for the depositors to sign. authorizing the Mallon committee to take legal action for the winding up of the bank. Mr. B. A. McDonald. as attorney for several depositors, moved an amendment that the committee be also instructed to begin criminal proceedings against the ex-officiais of the bank, who, he said, had signed perjured reports, nd also to remove Mr. Carman from the receivership. The motion was carried. one excited depositor yelling. Hang the rascals!" Amended powers of att no" were then signed by several persons. A number of then employed in C. E. L. Holmes's foundry demanded that Mr. Holmes be named for the receivership. Others objected. and the meeting adjourned in uproar. Mr. B. A. McDonald said. after the meeting. that he intended to ask for warrants to-day for the arrest of all of the bank's officials who had sworn to reports within three years. To sustain his application he has procured affi davits showing that the Tarrytown property was placed at $1,500 an acre in the bank reports. when it was well known to be worth only $500 an acre, and that stocks. such as Louisiana Levee bonds, notoriously below fifty cents on the dollar, were placed at par. also that other property had been greatly over valued. Messrs. A. P. Fitch and Algernon S. Sullivan will appear before Judge Westbrook in Kingston this afternoon. in relation to the receivership. Mr. Fitch will press for the immediate removal of Mr. Carman, and Mr. Sullivan, representing the Mailon committee, will. is is understood, ask for delay.
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PRICE TWO CENTS. THE CITY'S SAVINGS BANKS. WISE CONFIDENCE OF DEPOSITORS IN SOUND INSTITUTIONS. Condition of the Suspended Banks-The Mntual Benefit Added to the List-Men who Handle the Savings of Working People. Notwithstanding the closing of several weak so-called savings banks. there has been but little if any run on the really sound Institutions. The Bank for Savings, the Seamen's, the Union Dime, the Bowery, the Dry Dock, Greenwich, and other concerns with a secure surplus. the entire confidence of depositors. West Side Savings Bank also, as The possess though is reported not long established as some others, so in excellent financial condition. and its Investments are of the best character. The Secretary of the Mutual Benefit, in the building, explained to a SUN rehow the bank come porter Staats Zeitung yesterday had in the dowa Sun to its present condition. When a few years ago, the Mutual Benefit business, and was on of prosperity, its deposits one did building, high a tide most promising at time the approaching a militon dollars. But the panie and exposure of the Third Avenue Bank Irregularities caused assets to decrease, until now the deposits are loss than $400,000. The bank holds no Southern bonds except $20,000 ten per cont. It Texas, which are in demand at about par. also holds about $7,000 of Wyoming county, New Jersey Central Railroad Land Improvement and American District Telegraph and $53,000 of real to estimate the probable loss to condition of the bank is Company. Company, ficult but the estate. such depositors, report It is that dif- Su- of perintendent Ellis. on receiving the deEx miner. ordered it to take no more the posits. The officers are Gen. Charles K. Graban. President: Col. Richard Vose. First VicePresident: Mr. Joseph Dixon, Second Vice- and President: Mr. G. H. Benedict. Secretary, Willard Buliard. Chairman of Executive Com- be mittee. The trustees. who are believed to of interrity. are under bond to the amount men of about $10,000 to secure a deficiency in The the assets which appeared over a year ago. trustees are Silas C. Hay, Richard Vose, Theo. W. Morris, Martia B. Brown. Chas. K. Graham, Geo. W. White, Noab A. Childs. Joseph Dixon, Dinsmore, G. H. Benedict, Willard Bullard, Moses S. Beach, B. T. Morgan. John M. Cooney. Thomas J. Hall, George E. Kasmire, and H. Edwin Tromain. The names of the trustees of the Central Park Bank are Phillip Smith, John G. Carey, ChaunSmith, John Dunkak, John P. Morrecella, cey Francis Blessing. Henry McCullough. Michael Geheban, Michael Kane, John Haley. Henry McCabe, and John Moran. Blessing, Geheban, McCabe, and Moran resigned when the bank gos ulties, but their resignations had not been into accepted. George Hoffman is reputed to be a millionaire, and lives on Fifth avenue. There foris some talk of the trustees making up the ty odd thousand dollarsdue the depositors. Judge Westbrooke will to-day sign the order removing Mr. Carman from the receivership of the Third Avenue Bank, and appoint his successor. Superintendent Ellis went to Albany yesterday, but will return in a few days to complete the examination of the banks. Meantime his Examiner. Mr. George W. Reid, busily attending to his work. At the People's Bank the President. Mr. Rodannounced to depositors that the bank 80 gets, would be able, in his opinion. to pay 75 or THE cents on the dollar, the amount named by SUN several days ago. Mr. William A. Butler, the new!y-appointed receiver. has taken possession of the Manufacturers' and Builders' Bank, and is preparing . statement for the creditors. It is believed there will be but little left of the capital, after the depositors have been paid in full. Mr. Marshall, President of the Security Savings of Bank. has sent the following as the results the examination by Mr. George W. Reid: Assets. $237,482 23 Bonds and mortgages. Fifth
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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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THE BANK SCARE. END OF THE RUN ON THE SAVINGS BANKS-CONFIDENCE RESTORED. The feeling manifested yesterday throughout the city by depositors in the different savings banks was unmistakably one of greater confidence. In fact, it appears from the investigations made by the HERALD reporter that the excitement of the past few days has almost entirely subsided. That depositors generally are to be congratulated on this result no one can doubt for, as has already been pointed out in the HERALD, the banks raided on have available assets sufficient to meet all liabilities, and the people who have drawn their money from these institutions have simply lost so much interest for six months on their deposits. The really weak banks have been left untouched, much to the surprise of all who know what a really sound bank congists of in the matter of assets. These will, however, it is confidently asserted, be taken in hand by the Bank Department and put into the hands of receivers forthwith. Mr. Ellis is expected in New York to-day, and his action is anxiously looked for. THE NORTH RIVER SAVINGS BANK was to a certain extent raided on early in the morning, but as the day advanced the number of depositors grew small by degrees and beautifully less, until by two o'clock in the afternoon there were but some five or six depositors present seeking to withdraw their balances. The amounts deposited exceeded the withdrawals. THE FRANKLIN SAVINGS BANK was similarly affected, and the run of the past two days was practically at an end by noon yesterday. Many who had previously withdrawn their savings returned in the afternoon and reopened their accounts. THE MERCHANTS AND TRADERS' SAVINGS BANK, although visited in the early hours by quite a number of depositors, was at the closing of business hours almost deserted. The President, as well as the other officers, assert their ability to meet all demands, and say that the scare of the last two days was simply a suicidal policy on the part of the depositors, who by withdrawing their deposits at the present time lose their six months' interest which is an actual gain to the bank. The securities of the bank consist of State, city and county bonds, which can be realized upon at a moment's notice at a profit on their original cost. The real estate held by the bank, it has been ascertained, is fully worth the value set upon it, and from the inquiries made at other banks there appears to exist no reason for the late run, which, however, may now be considered at an end in view of the restored confidence that prevails. THE THIRD AVENUE BANK. It was said by the Committee of Thirteen, appointed by a certain number of the depositors, that a Mr. Tate, of No. 229 Broadway, had been appointed receiver, in place of Mr. Carman, by Judge Westbrook. THE MUTUAL SAVINGS BANK. Affairs were in statu que yesterday. The trus tees are exerting every effort to make good the do ficiency and so resume business. This will probably be done during the next six days.
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THE BROKEN BANKS. THE GERMAN UPTOWN SAVINGS BANK SUSPENSION-A RECEIVER APPOINTED FOR THE THIRD AVENUE BANK. The announcement made, exclusively in yesterday's HERALD, of the sudden collapse of the German Uptown Savings Bank fell like a thunderbolt on depositors who still had money in the bank. It appears, how. ever, that there has been all the year a feeling of doubt as to the solvency of the institution. Since last January over $1,000,000 have been drawn out of the bank by depositors. The counts, as furnished in January in the sworn statement sent to the Bank Department, showed the liabilities to depositors to be then about $2,000,000. Now the amount stands at $835,000, as stated yesterday. At the time of the election of Mr. Henry Claussen, Jr., as president, a report was submitted to the Trustees by a committee of seven, consisting of Henry Claussen, Jr., John D. Crimmins, Anton Hein. A. Michebacher, S. O. A. Murphy, A. J. Kapp and Adolf Levinger, to the effect that they had made a thorough and exhaustive examination, with the result stated below:-
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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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LOOKING FOR THE ASSETS. Bad News from the German Up-town and People's Banks. Christian Schwartz, the President, and Sch: ffuer. the Secretary of the German Up-town Savings Bank. have not been seen at the bank or their usual haunts in the city since the suspension. Every day develops some new fraud or improper transaction. Mr. Schwartz, who has been bankrupt for some months past. was interested in the Empire Laundry Company, to which $19,000 was loaned on very questionable security. A worthless check for $5,600 has also been found among the assets as cash. and $25,000 of unnegoti ble town bonds. The arrest of Adolf Levinger 18 criticlsed LV some of the depositors as injurious to their prospects of obtaining the money for which he is responsible. Levinger is a partner ID H. brewary, and has rich relatives. and It is believed that if allowed to 120 on without exposure be could have settled within a few months. As it is, his business IS ruined. he will propably be thrown over the bar. and his relaLives will have no incentive to save him from the disgrace with which he is already overwhelmed. Orders of arrest are waiting for S. hwar z and Seb as soon as they make their appearance. Mr. Herman Unl. the receiver of the Germ an Up-town, is laboring b ird at the books of the bank. and will-pare noefforts to bring tojustice all who have misused the funds. The stockholders of the Manufacturers' and Builders' Bank, who, In connection with certain ex trustees of the Third Avenue Bank, tried to start a new concern in the Nineteenth Ward. have given up the project, as it received no encouragement. At a meeting of the committee of Third avenue depositors, yesterday afternoon, Mr. Asnoel P. Fitch was instructed to prosecute criminally other trustees of the Third avenue besides hose already arrested. A prominent Republican official who signed one of the bank reports within three years past will, it is Sald, be proceeded against. Mr. W. F. Aldrich. receiver of the Mutual Benefit Savings Bank, has been connected with the St te B oking Department. and was one of the examiners who reported the Third Avenue Bank to be in good condition, when Mr. Hennessy showed it to be insolvent. The depositors of the People's Bank had an exciting meeting, last evening, at 200 Chird avenue. Mr. Richards. of the committee which had been app inted to VISIT Mr. Isaac V. French, the receiver. reported that Mr. French had given him the following statement of the assets and liabilities: ASSETS. $56,000 Bonds and mortgages. about 10,000 Nurca Carolina State Dones, par Jue 47,000 Bonds of trus ees $113,000 Total assets LIABILITIES. $180,000 Due depositors, about Besides the above assets there is about $240 cash on hand. Dedue ing the trustees' bond, which is assumed to be almost worthless, and the North Carolina bonds, which are worth a few nundred dollars, and allowing that the mortgages are all sound, the bank has about $57,000 to meet $180,000. or less toan thirty cents ont e dollar. The cost of winding up the concern must also be taken out of the assets. Dr. seph Morehead, the Chairman, reported that be had visited Mr. French for information, and Mr. French told him that when he wanted his advice he would send for him. Mr. French's lawver said at the same interview that a bank which should pay fifty cents on the dollar would be doing remarkanly well in these times. It was voted to employ counsel to look after the interests of the denositors, and endeavor to
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Mr. Gearty claims that the bank has been largely insolvent for several years and says its failure was caused by the suspension of the Third Avenue Bank. He states that there was originally due him on his contract for building the bank $32,500; that $11,000 of this amount was paid by mortgages transferred to him and that he was paid $5,000 more in cash. On October 18, 1875, there was a deficiency reported of $6,250, and this amount, he says, was made up by the trustees, he himself deducting $5,000 from the amount due him on his contract, so as to allow the bank to go on. He also paid $700 to the architect and others. The report goes on to say that the apparent profit to Mr. Gearty was $4,350, which he claims was more than made up by his gift of $5,000. The figures show that the bank property actually cost $62,877, and he contends that it is really worth that, and says in an offhand manner that he would give $60,000 for it on time. At the valuation of $60,000, with the mortgages of $11,500 and $24,500 deducted, the balance remaining would be $24,000 with which to pay $40,000 to the depositors. This report was accepted by the committee, and will be presented to the depositors at an early day.
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THE THIRD AVENUE BANK. WARRANTS ISSUED FOR WILLIAM A. DARLING AND SPENCER K. GREEN. In the case of Thompson W. Decker, which was up for examination at the Yorkville Police Court yesterday, Henry L. Clinton, his counsel, said he was not ready to go on with the examination, and asked the Court for an adjournment. Judge Duffy set the case down peremptorily for Wednesday next at the Tombs, where he is sitting this week for Judge Flammer. In the event of Mr. Clinton not being ready to go on then Mr. Decker's case will be closed, and the papers will be transmitted at once to the District Attorney. The evidence for the prosecution is all in, and all that is needed to close the case is the evidence for the defence. In behalf of Mr. Morgan, another of the defendants with Decker on the charge of perjury, Mr. Truax said he was ready to go on at once. Judge Duffy expressed his anxiety to dispose. of the whole case as quickly as possible, in view of the fact that so many were looking for some decided action. He decided therefore to take up Mr. Morgan's case, and with it those of Carman, Lyons and Bates also at the Tombs on Friday afternoon. An application was then made by Benjamin A. McDonald on behalf of Henry C. Abrens, a liquor dealer residing at No. 827 Fourth avenue, for warrants for the arrest of William A. Darling and Spencer K. Green. They were connected with the Third Avenue Bank during 1871-Green as president and Darling as secretary. McDonald, as the expert accountant for Georgina F. Levien, the complainant against Decker & Co., discovered during his examination of the books of the bank that Green and Darling in their turn had also made a false statement of the bank's condition to the Bank Superintendent Ahrens was then a depositor to the extent of $500, and claims to have been defrauded out of that amount by the irregu'ar action of the accused. The warrants were applied for under the statute of 1873, The Court, after examining the statute most carefully, in a book that had to be borrowed for the occasion, granted the warrants, and they were placed in the hands of Sergeant Hicks, of the Court Police Police squad, for execution, The accused will be arraigned at the Tombs to-day. before Judge Duffy, and will be there afforded an opportunity, together with the other distinguished gentlemen implicated in this ugly business, to explain the charges preferred against them. Mr. S. H. Hard, the receiver of the Third Avenue Bank, in answer to inquiries, yesterday stated to a HERALD reporter that he expected to pay a dividend of from fifteen to twenty cents on the dollar to the depositors about the middle of next month. By waiting thus long, he stated, be would in all probability be able to make a better realization of the assets than he otherwise could do. Already, he said, he had made $13,000 by waiting for the creditors on some bonds, which, had they been sold at the time he was first appointed, would have had to be sold at a sacrifice. The total dividend the depositors may expect is more likely to be twenty-five cents than thirty, although it may probably reach the latter sum.
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REAL ESTATE. The following sales comprised the business at the Exchange Salesroom yesterday:E. H. Ludlow & Co. sold, in foreclosure, a house, with lot 25x100 11, on the north side of 113th street, 345 feet west of Third avenue, for $2,500, to the plaintiff. James M. Miller sold, in foreclosure, a plot of land, 113.9x347, on Palisade avenue, 456 feet north of South avenue, Yonkers, for $17,750. to H. F. Spaulding, R. V. Harnett sold, in foreclosure, a building, with lease of lot about 20x99.11, ou north side of Fifty-sixth street, 533 feet east of First avenue, for $5,100, to the plaintiff. Also, in foreclosure, a house, with lot 18.9x 100.11, on north side of 112th street, 136.3 feet east of Fourth avenue, for $4,100, to the plaintiff. A. H. Muller & Son sold, 10 foreclosure, three houses, with lots 62x100.6, on Baxter street, east side, 135.2 feet north of Park street, for $42,900, to J. W. Andreas and James Casson. Hugh N. Camp sold, in foreclosure, a two story frame house and one acre of ground, on High Bridge road, Fordham, Twenty-fourth ward, subject to a dower right, for $2.000. SALE OF THIRD AVENUE BANK ASSETS. R. V. Harnett sold, at the Exchange, also, by order of S. H. Hurd. receiver ot Third Avenue Bank, 80 70-100 acres of land on Union Heights, Tarrytown, for $15,866. TRANSFERS. 14th st 8. 200 t. w. of tith av.. 25x106.6; Philip Nom. Woodhouse to Anna B. Woodhouse 36th st., n. s., between 8th and 9th avs., 25x98.9; Nom. same to James F. Weodhouse and others 15th st., 8. S., 375 ft. e. of 7th av 25x103.3; same to Nom. James K. Woodhouse Post Road, e. N., 53xirregular (24th ward): Thos, . $10,000 Cooper and wife to Wm. J. Preston Sandtord st., 11. e. N., 100 11. w. of Th mas av. 25x99.3 24th ward) : Denison P. Noyex and wife to 350 Wm. Coogan Prospect av e. 4., 10lx199 (24th ward Frances F. 500 Thomson and husband to James N. Watson 3d av., e. S., 24.84 ft. n. of 32d st., 24.84xx5; also 3d st., 8. S., 100.11 ft. e. of av. D. 11x100.5; Phelix 40,000 Boylan to Owen Fisherty Goeres st., w. S., 125 ft. N. of Stanton. 75x100; Anna Nom. M. Koch and husband to Anna M. Stoltz 8th HV., w.s. 25 lt N. ot 84th st., 25x10J; John W. Nom. Prisson and wife to W. Bronson 8th C.V., s. W. correr 84th st., 25x100; same to Wil18,325 liam B. Burtnett 8th RV.. n. W. corner 83d st., 23.2x50x irregular same Nom. to Edward Schell Madison av s.e. corner 68th st. 100x100.5; Thomas Nom. Pearson and wife to Robert McCafferty Goerek st., w. s., 125 ft. 8. of Stanton st., 75x100; Nom. Michael Stultz to Anna M. Koch 78th st., s. s., 170 It. w. of 1st HV.. 20x102.2: Patrick 8,000 Burns to Edward Burns 144th st., 21 N., 354.5 it. e. of 3d av.. 25x100 (23d Nom. ward) : E. C. Kennedy and husband to H. H. Holly 104th st., s. s., 100 11. W. of 3d RV.. 16.8x100.11; Nom. Sitnon H. Storn and wife to Cornelia D. Rice 125th st. n. s., 80 ft. e. of 2d av., 25x99.11: K. G. Nom. Viele and wife to C. Swezey. Mulberry wt., W. S., 963 tt. n. of Bayard st., 46x106.10; 14,000 S. V. R. Cruger. executor, to M. Danziger Egbert av. s. s., 133 it. W. of Fir st., 25x210x irregular (24th ward) A. M. Jackson and wife to Thomas Beare 2,100 MORTGAGES. Cornen, Peter P. and wife, to P. McCabe, s. W. corner av. A and 81st st.: also E.S.8 th st., W. av. A: 3 1,100 years Cull, Catharine and husband, to John H. Riker, s. 675 74th st., w. 2d av. 6 months Danzier. Max. to Cacharine L. Van Rensselaer (ex6,400 ecutrix), W. 8. Mulberry st., S. of Bayard; 1 year Same to S. V. R. Cruger, w. s. Mulverry st., S. of Bayard: 6 months 11,400 McGuire. Mary and others. to Caroline A. Brewster, 1,000 s. 8. 14 d st., e. Alexander uv. (23d ward) 2 years Peyton, Mary J. and husband, to H. B. Clatin. e. S. 20,000 Elizabeth st. No. 286: also 115th st. : 1 year Shelley. Lewis k. and wile, to P. M. Denger & Son, 4,000 e. 8. 2d av., n. 50th st. : year Wallach. Abraham and wife, to P. Arnand. 9th av., S. w. 89th st. 3 years 4,500
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RUN ON THE SAVINGS BANKS. Yesterday morning the excitement among the smaller depositors in the savings banks of the east side, which began to manifest itself on Thursday and culminated in a perfect panic on Friday, in no degree abated, but in the afternoon there was a very perceptible decrease in the number of applicants for a settlement of accounts. The cause of this sudden withdrawal of deposits lies in the suspension of the New Amsterdam and Bond street savings banks. When the trustees of these establishments announced their intention of giving over business, but found themsolves unable to go into voluntary liquidation, a doubt of the security of other kindred institutions became broadcast. The recollection of the Third Avenue Bank's failure and the close of the Mutual, the Germania and the Abingdon Square is yet green in the memory of most depositors, and there was consequently a grand rush to the paying telsers' desks. The Dry Dock Bank, at corner of Bowery and Third street, came in for more than a fair sbare of this run. A large gathering had assembied before it at an early hour, and after dark the employés were still busy handing over money to importuning depositors. it seemed to be generally taken for granted that the bank was going to suspend payment, and the only thought in the minds of all comers was how to most readily reach the counters and withdraw such deposits as they had made. However, it was clear that no one bad a definite notion of what they had to fear. nor could any one give any idea of what their doubts were founded on. It was stated by one or two, though on what authority it would be difficult to determine, that the bank officials were unable to pay the interest on the mortgage which they had been obliged to take out in order to complete the building. and that it was consequently to be sold on account of a foreclosure suit. It was claimed by others that the Dry Dock Bank bad large securities invested in those institutions which have recently suspended and that it had its finances further crippled through that means. In conversation with William V. Webster, the secretary of the bank, a HERALD reporter learned that the securities held by the bank could be realized in a short time, and that even if they were sold at the lowest market rate there would be left a surplus of over $60,000. He said that there was no cause whatever for apprehension among the depositors, but that if they persisted in their intentions of withdrawing their deposits the trustees fancied that, far from damaging the bank's interests, they would only be advancing them. "This run," said Mr. Webster, "will be of benefit to us, because we will not only escspe the ob. ligation of paying interest upon the sums withdrawn, but we will be freed from the payment of the State tax, and that of itself is a matter worth considering." The excitement was not confined to depositors of the Dry Dock Bank alone, but circulated among people who had placed their savings in the Bowery, Bleecker Street and Metronolitan Banks. In these there were fewer amounts drawn and the officers in all cases expressed themselves satisfied of their institutions being able to weather the run. However confident these gentlemen may by of their financial security, there is no doubt but that a wide-spread feeling exists that in this crisis every bank whose finances are not on a solid basis will be sorely pushed. The recent suspensions have inspired a lack of confidence, under which many such institutions may succumb if it be not speedily removed.
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OUR SAVINGS BANKS How They Are Managed, Mis. managed and Ruined. MONEY AND CONFIDENCE LOST. in Some Banks. Rxamples of Extravagance and Economy of Those of the public suspended and other who are interested in portant taken strong subject. desire to know Some savings something banks further have on manifested the affairs this of rotten to ascertain, not only trouble, how the therefore, has been public It continues to feel, but also in what depositors concerns, conceded that in the savings past banks in this city. the 18 which institutions were regard losing affairs light for the benefit of the ostensibly called into of these so badly middle and lower existence been suspicion stitutions. upon the managed in many classes, as to have in advantage of the the cers. savings and the integrity circumstances of as to trustees When, honesty many respects. of management Yet, institutions under favorable are of nearly great all savings their off in which they moneys deposited and in are regardless represent do of these their the corporasacredness the uons work people's mischief the but also mind. public they money, in well A known prominent gentleman. of the with nection of the attention set on the year 1819, the first remarkable fact savings bank having failed. 1850, there is no institution record lact covers any from was foot here, the savings New York, drew savings cessful, corporations a period of thirty-on years, As this during remarkable BANK SAVINGS STATISTICS should period. vided trustees there not SOME continue appears faithfully to be discharged rule good for their reason uniformly a much duties, why, longer which suc proThe whole number At this date the out ment the was State 154 which reported of savings to the institutions through. was $535,796,336. 8 of this total the lamount of up their to January 1, 1876. Banking Depart assets excess enermous an was Jum increase showing estimated the as with year. of previous $9,379,455 or on trust banks cash The deposit companies the of with a decrease compared showed in the stock while exhibited year before, and of bonds mortgages, increase to due amount depositors $5,507,832 The time the number $15,324,653. had with been opened accounts why showed which off Savings banks that 12,760. mainly a decrease or of to the want confidence tributable the Third The these in has one which Bank greatly Savings Avenue weakened last The suspension and showed it of $91,494 $1,370,571 $1,000,000 it ba did formerly at the ness to 69. of Butler, receiver and Bank, Builders have been of quite searches deficiency to CHARTERS. The years 1867 10 1970, chartered Third avenue failures 1867 preceding all are porated in old in the business and basis were started ments economically in wildcat's their to officers obliged doors. will in of supervision privileges, and management OFFICERS of one duty great The to protect delicacy his must the and upon action interests or in great success depend to who man the d the which thousend the with plays thoughtlessly his of fellow most citizens important is is trus. that matter claimed. they tees ought from elected bankers. the affairs would managing confided DEPARTMENT. that Intellige complaint his the the from State time and cash account appointm-bl. his other their until close partment when matter Goors. banks should form. get be experts the say this books porters 11 who them might idea, of ould portion enjoy the to none trustees and bank Bach ically, of of the half them month July, the their and the other banks. affairs to De. or in the half month same cember on eco. Unless strictly to nomical run great they a corporation or this does kind capital to cola to can with hope mence hardly the in the State Interior bank possessed its of while $36,787 capital habilite It to had the about same figure. amounted received Balaried could small 14 18 while $3,566,839 the and to but keeping the be cited Havings bank has than $71,388.64 The equal be of way gant doing greatly multiplied. THE of the on The names are Coleman Messes. and Senate, of th the people Assembly as look this for such of public demands." economy STEALING MONEY LETTERS. department
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# There Shall Be One Law for All. TO THE EDITOR OF THE SUN—Sir: I find in to-day's SUN an account of the blood-curdling malediction and the appalling punishment which Recorder Hackett dealt out to a petty thief who appeared in his court yesterday. In another part of to-day's SUN I find the evidence before the Senate committee, and the message of Gov. Robinson, exposing the official career of Bank Superintendent Ellis. It appears that Mr. Ellis, after learning that certain savings banks were hastening to bankruptcy, allowed them to run on from bad to worse, knowing all the while that they were taking in the money of new depositors ignorant of their condition and of old depositors who had learned to trust them. In the case of the Mechanics' and Traders Bank, the interval between the discovery of the bank's insolvency and its closing was nearly two years; in the case of the Third Avenue Bank, which, perhaps, of all these failures, revealed the greatest amount of rascality and involved the greatest number of innocent people in disaster and ruin, the interval is placed at six months. In the latter instance, no less than 600 new accounts were opened during this period, and it is alleged that the officials made careful preparation, both for themselves and their friends, against the final crash. The charges with respect to the Security, Bond Street, People's, Trades, and other banks, are mainly repetitions of this same story. Now, what sentence will Recorder Hackett, or any other Judge, visit upon the parties guilty of these crimes, compared with which the petty theft I spoke about at the opening is nothing at all? Again, I find in to-day's SUN Mr. W. Allen Butler's extraordinary report upon the mismanagement and fraud of the officers of the Continental Life Insurance Company, which have caused widespread loss and suffering. Yet again, in Monday's SUN I saw an official report, charging ruinous cheating and perjury upon the officers of the Popular Life Insurance Company. What penalty shall be administered upon such men if a petty burglar deserved Recorder Hackett's sentence of twenty years in the State prison? But will these men receive any penalty under such law as is enforced in our courts? I see that one pompous newspaper goes so far as to say that Ellis ought to be removed from office! Now, what are we to think of laws and courts which deal with helpless men in one way, and with powerful men in another way? MOSES.
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Mr. Ellis fully developed his theory of defense in the Third Avenue Bank case yesterday. He did not close up the bank on the receipt of the report in March, because he hoped to be able to merge several banks together under a clause in the General Savings Bank law then pending in the Legislature. Then when be found that he could not do this, Duncan, Sherman & Co. failed, and he did not close it for fear of a panic. The first step in the process, though Mr. Ellis did not mention this, took more than two months, for the Legislature adjourned May 22, 1875, and Duncan, Sherman & Co. failed July 26. Then Mr. Ellis did nothing for more than two months more-he called it six weeks in his testimony. And then-and this Mr. Ellis was very careful to say nothing about, just as he was careful to conceal it in his annual report and his letters-the trustees of the bank actually compelled him to close it. Mr. Ellis's theory is an ingenious one, but on his own showing, the depositors in the Third Avenue and all the other banks have reason to wish that there had been a Superintendent in charge who didn't always take two months to do a thing.
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FINANCE AND TRADE. Transactions in Banking Circles Reduced to a Low Figure. The Produce Markets Stendier, with More Activity in Grain. Hogs and Flour Dull-Provisions Firmer -Stocks of Grain Here and at Other Points. FINANCIAL. clearings were smaller than they have situation been The day for acveral months, and the for any the bank was very quiet. The demand trans. among is confined to those of course wet or leans that go on whether the weather is actions business is good or bad. Few applications regular dry for Inana or are received from day but the customers of of discount the banks. were 8@10 per cent a! the the Rates regular customers. OD the streets banks to made. usual New variations York exchange are was sold between banks at 506 75c per $1.000 premium. The clearing* were $2,600, 000. SECRETARY WHERMAN AND THE RESUMPTION OF SPECIE PAYMENTS. But Daily letin. Washington Correspondence May see 10. York Secretary Sherman made out an argument figures, like in Congress and embellished it with and speech he presented to the Cabinet yesterday. to which thought the details 100 complicated It that body actual and dellberate intention. continact upon believed, after long debate, that the any was to be met were too many to organize the rencies absolute and interistible plan of action, and an thus let the matter drop. The Secretary is himCabinet to the necessity. agreed to even by act driven that the best way to do is to of in self, the manner best suited to the wants time country and trade from act the time, and carry out the Resemption pro- HS to and rapidly as he can. lie does not wisely do anything harriedly or rash, makes but pro- a puse to to give ample notice whenever contract be the posas he scouns determined to to currency so as to bring its the diment. as possible, and 10 avoid would surround resumption not legal-tender more; gold ties that as soon but with value It gold is up highpremium. When It is commenced, gilver may a much to anticipate that even yet legaltoo a function in the contraction of seem as perfect violent as such a proposition may tendere, matter of fact. The Administration has no in. a flexible plan beyond that above stated. RUSSIA AS A BORROWER. Rossian Government has lately been bor. which The in London to obtain funds with Nothrowing coupone on the debt soon falling due. pay officially known about the amount borrowed, given the is rate of interest paid, but the account by us or the the Semaine Financiere, and repeated The by is generally believed to be is It sceine, get 8 percent yesterday. pymdicate, Interest correct. pledged and commission. and as security have preper them cent bonds of the Rassian Government, which to 44 per cent bonds of the 1870 loan. of their sumably not nearly all placed, At & cent was nominal value. It Isairo said that the syndicate periods the "call" of this stock at TO for Those has given as six or twelve months. variously briefly the particulars of this transaction circu- as are sundry foreign bankers. and an among members of the Stock near the tenth as a known lated probably to Russia Exchange. carrying cannot They hope on are raise money at a less figure while trade deto with exchanges depressed, ballion. moralized, great war, and coffers almost empty of loan was negotiated before war was declared, times The and shows how low Russian credit stood in of peace. THE NEW YORK BANK SUPERINTENDENT. New York Tribune. Mr. Ellis fully developed his theory of defense He did Avenue Bank case yesterday. in the bank on the receipt of got because he hoped to be to merge Genthe March, close u Third able in the the report In together under a clause Bank law then pending in not when he found that ho did Sherman & Co. in several ture. eral Savings Dudean, Then banks failed, could the first and Legisla- step he do this, it for fear of a panic. The Mr. Ellis did not not the close process, though mention Legislature this, than two mouths, for the May 22, 1875, and Duncan, 20. Then Mr. Ellis took adjourned Co. failed more July did Sherman nothing called than two months more-ho then for more weeks in his testimony. And It six this Mr. Ellis was very care. -and nothing about, just as be was careful ful to any his annual report and his letters-the to trustees conceal of the bank actually compelled him one, Mr. Ellie' theory In an ingenious Third close It. bis own aboving the depositors in the to but on and all the other banks have reason in Avenue that there had been is Superintendent do a thing. wish charge who dian't always take two months to WATER MINING STOCKS. San F rancisco Daily Bullelin declares one stock of The evile connected with the mining the the greatest. the last few years to have been of stocks. The total number leading Comstock the of shares is now 3,481,200. market the watering twenty-six number during mines each is of 24, foot feet This 730; of in . 1 B makes un average of 138% shares to part of and gives each shareholder a minuto companies mine, of the lode. In 1870 the same an inch Issued only 289, 300 shares, and consequently 086 cent. had ILL the Interval the number has increased 1, per BRITISH TRADE FOR APRIL. The returns of the British Board of Trade more for April are declared by the London Times to be fiscal promising than those of any month of the but It is There Is still a decline in exports, down. year. so slight an to confirm the opinion that the ward movement has already lost Its strength. STOCK OPERATORS WANT A HOLIDAY. pending 'bull' movement in stocks is ex- the The by the knowing ourse as on effort through by plained dealers to get outsiders to carry the stock the weather. They calculate that In fall the hot can buy these stocks in again at a reduction, they and in this they are as likely to be right as not. . GOLD AND GREENBACKS. Cold in creenhacks was
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SUPERINTENDENT ELLIS' TRIAL. MR. ELLIS TESTIMONY EXPLANATORY OF HIS OFFICIAL ACTION. SARATOGA N. Y., August 7, 1877. In the Ellistrial to-day, at the opening of the Senato, D. C. Ellis, bank superintendent, testified that the first time he ever heard the statement about the Third Avenue Bank, as sworn to by Isake Smith, a clerk in the department, was at Saratoga; don't remember any conversation with Smith about that bank there was a special examination by Reid, Aldrick and others in April, 1873: knew ot the $150,000 bonds which were to be given by the trustees; was influenced by all the lacts in bis knowledge; went to New York the day Duncan, Sberman & Co failed; saw Mr. Cisco, and be counselled delay; saw eight or ten other business men; they said that the market was excited: it continued 80 all the summer: acted on the opinion of these man; anticipated that the closing of this bank would be very disastrous to other banks; at tention was first called to the Mechanics and Traders' Bank by a letter from Roid, in 1874, about the trouble with the Secretary: I immediately went to New York the bank deposits were small; they continued to in. crease to the time of the closing ot the Third Avenue Bank: the complaint was against the management, not against the solvency of the bank; the officers were called set of robbers; examined the President and Finance Committee; found them running on in their own way; gave them the choice to close up or behave themselves; found the bank financially sound; when Reid examined the bank in December, 1874, showing a deficiency, the Secretary came to see me: told the Secretary the trustees must make up the deticiency or 1 would close them up; the letter of Decemi 25 was to know what had been done: received tele. gram saying they had put the bank in shape; Reid re ported in 1876 that the deficiency had been made good: relied on Retd' report, as I had no knowledge to the contrary next had attention called to the bank in August, 1876 Reid said, when told to go and look at the Beach street mortgage books. that they were not systematicali; kept: they seemed all right: was at Rochester when Lamb turned the bank over to the Attorney General, and approved his action instructed Reid to keep a watch on the bauk and others and report;returned the letters sent by Lamb and told him 10 look to the matter in his (Eills' absence. THE CASE OF THE PROPLE'S BANK. In the fall of 1873, on the report Mr. Reid, commenced proceedings to close the People's Savings Bank: some of the officers called and proposed to make up the deficiency, and as the bank had changed its location anticipated bette business; the trustees had put in one bond proposed changing, giving in dividual ones more binding; the suit was prosecu no further then: went to New York and looked Into the matter examined the trustees' bonds and mort gages, and was satisfied the deficiency would be made good in full; Reid and the superintendent called at the bank and made an informal examination of the assets did not make a formal report; only know that Reid reported when the report was produced on trial; the deficiency reported by Reld was more covered by bonds held by the department; thinks be acted under the letter received November 11, and telegraphed Reid to send formal report; wrote the Attorney Gen. eral to close the bank followed the figures of Reid's letter; the Attorney General prepared the summons giving the figueres in the letter: when formal report came, as figures differed, he changed them to agree with the formal report; after the Attorney General had no further control over the bank went with receiver to witness the deposit of the assets the bank the receiver of the Mechanics and Traders Bank found, after some months' work, that the ledgers were not correct as Reid had accepted them. THE LOANERS' BANK. Asked Smith, as he had been in the department many years, if the Loaners' Bank had ever made port; he said " bad made a statement but did not know what had become of it: he had examined and could tind no power to inforce the law Reid went and tried to examine; did not succeed went to New York in April, 1876; the officers told him they were taking of paying up depositors; handed him the opinion of William Tracy, their attorney thought it was before the opinion was put into the hands of the Attorney General the bank was turned over to the receiver: intended leaving the bani to the Attorney General and not put Traoy's opinion against the Attorney General: did not influence him from making un examination: could not walk m and take possession. ABINGDON SQUARE BANK. Never was inside of the Abingdon Square Bank nor saw the officers his only knowledge of this bank from reports and letters it was handed over to the Attorney General July 29, 1876, on the report of Reid by Lamb, Ellis being away has no recollection of hearing of bogus checks until the letter of Reid, when the bank closed; has no knowledge of the Receiver's actions. MORRISANIA GERMAN BANK. His attention was first called to the German Bank, Morrisauia, in March. 1875; Reid's examination men tioned a loan by former president on railroad bonds; the president and counsel of the bank came to Albany and be told them they must make up the deficiency they seemed very cuergetic did not want the bank closed; the former president deposited good collaterals for the oor under the former bank superintendent the officers seemed anxious to do al that the superintendent asked to make the and good General Sigel deficiency the trustees called after the bank had been pue in the hands of the Attorney General and said if there had not been such rnn and a little more time were allowed the depositors would all have been paid: a large proportion of the depositors had signed H petition, prom. ising to let their money lay in the bank it was not put in the hands of a receiver: had information from the Attorney General that be was going to try the ex periment of letting the depositors vote pro rata for a receiver; no lacts came to his knowledge to destroy the confidence in bank. his In the law of 1874 the New York Loan and Trust Company is required to report; examined in February 1875, after the report caine he examined the law and charter by which he could return them to the Attorney General: conversed with the trustees as to the manner of closing up BANK. SECURITY SAVINGS Attention was especially called to the Security Sav ings Bank in November of 1875: considerable excite ment prevailed in New York at the time; Mr. Reid made the examination had a conversation with the President: they had practically closed for a few days while the examination was being made they claimed that they were solveni Mr. Ettis told them the de ficiency must be made up he gave them all the time possible, as they were not doing business the bank was finalty closed by the officers January tive or six banks were closed after the Third Avenue NEW BANKS NURSED WEAK Attension was called to the Mutual Benefit Savings Bauk three or four days before the receiver was pointed Mr. Reid made an examination, found clency and told them they must make it up they asked time to nold meeting of trustees: two day before the time expired they appointed receive without his knowledge the deficiency was small trustees were always allowed to make up deficiency 18. new banks: in fact all new banks have to be propped up by their trustees: If any of banks holding mortgages were put under in the bammer, they would be insolvent time of great de preciation in stocks they might so, but allowed to go on would be right the Superintendent exercised his best discretion regard to these banks; it was that the Security Savings Bank was good and ought to go It not practicable with the force of the department to examine every piece of property the books hold one had 3,200 different mortgages: could only take the papers as they appeared to him they are re ported at face value in the present state of the real estate market; If their mortgages were foreclosed, banks could pay their depos tors; n run would force a foreclosure of mortgages, large proportion of which were taken when real estate was in better condition if let alone they will pull through. The Senate then adjourned.
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SUPERINTENDENT ELLIS. SUMMARY OF THE IMPEACHMENT TRIAL. AS PRESENTED TO THE BANK COMMITTEE THE THE CASE ENATE-EVIDENCE OF WITNESSES AB OF SUPERINTENDENT'S NEGLECT-ADDL TO THE BEFORE THE SENATE-MR. ELLIS'S TIONAL RESPONSIBILITY TESTIMONY FOR DEPOSITORS' LOSSThe ES IN proceedings THE THIRD AVENUE against BANK. Dewitt C. of Ellis, Newthe of Department Banking Impeachment York, are in their general character an two the State Senate. They are in Testimony before the Senate Committee on latter Banks half (2) the (1) Testimony before the Senate itself. The teath though in progress, evinot quite complete. The whole which that voluminois, the Committee filling about 550 printed pages, which the Senate has taken the being general cerNotwithstanding the patience of ordinary newspaper on. in following even therefore the aphie from Albany It 18 features the leading of from its beginning down to the pres at time. details will be made, as these would in evideace and the comparison extent two in case obtained in was this Senate from Gov Robinson. The order points by in their Bank Committee the matter of the first message be and finished before the second one there was In the procedure before the Senate to follow this order. The first message 1877 it reeites charges against Receiver Sept. of furnished by William J. Best. and Trades Savings Institution. They insolwas that the Bank follows: 1874, the deffeiency then being $200,000; the fol made known to Mr. Ellis in that thereupon he examined the Bank reits insolvency that he was frequently but proceedings to protect the creditors, June, to 80 till about two years afterward balance 1876. The proofs offered were as follows a $200,000 showing a defletency of more than July, 1874 this was made by the person keeper of the bank at that date, but it was of in October, 1876 The testimony is given sworn the to trustees of the bank, who, in July, 1874, were by it a committee to ascertain its condition. appointed deficiency of $181,500. Evidence shows these trustees brought this report to Mr. Ellis's several nothat September, 1874, and It was alleged that of urged take action. The annual report things stated widely meanwhite Bank Department different In March, 1875, it ascribed to the bank found plus of the $67,000; in 1876, 89,500. The Receiver points foregoing $350,000. are others deficiency early laid down the Governor's messuinand The trustees were among the witnesses sift. moned sage. by the Bank Committee It appeared, upon that the statement of the two trustees deficiency of $181,500 contained serious erthe omission of the cash on hand (9102.000), otherwise to regarded with some suspicion, Trustees. having been in the Board of Ellis as there alleged frequency of to Mr. eviThe weakness of the bank was disproved by the After them. to said have examining the bank in October, 1874 Mr. Ellis found make deficiency $25,000, and urged the trustees to and its Some bonds of the cities of Brooklyn this good. held by the Bank, shortly afterwards rose the in Rochester, value, and by the January follow ing it appeared testimony that in could actually show a supplus. The of bank there was at that time for COB- of the some value of as opinion for certain of the Bank, as the market thrown the ductuated and doubt of be stocks method of valuing bank securithe Doubtless Department estate stocks and deeline in of the Mr. Ellis'a the On than 1874 the to charges defence was Savinga fairly Institution, dated was April the the the Street, Peoples', The MorGerman the to also Third and Loan State Bank far the was Governor's last are charges the in after insolvtheir hands into neglect the necifications The alleged. abandThird Avenue Bank the of is M Ellis one charge Street Bank and bank the that Mr. testiby sidered had been the bank that the the To charge behands, put into stlat the dividends and given As to o desired. because Bank, Mr Ellis that the apthe not all; it rae was plication the report abowing defleiency to the proved in respect (a regard Similar the Abingdon the Trades of some the Bank Square it to took have illegal had the not bank apthat the posit Over as Department the went to show that line possessed banks Mr used the the Depar uent ingburgh. promptly bank of Lans the New-York resisted bank State Loan and Trust Company the and effort# the The Bank. DV the Depar its suspension struggle made As to the Security took place during that brought to sustain the to make an neglected Mr. Elite rplus suffered before closed with German Savings being the on deficiency Bank, a make actually to have this whole the and the logers, deposMr Ellis had defended himself toterspecific charges, perhaps partly well agminst the there were few witnes for the Third venue Savings of the of The scope easily disposed and made to apply to any the the inquiry condition of the bank from to the date bank time when Mr Eltis closed. became It that the bank the to report Depart= and 1873, April, that there was then prosmade March 1875, show Department of trustees $115,000 besides bank held by the The bonds Attorney till September, reported the this bank had its value increased apparently raised Mr. that before took place to the have increased office he found them. There were that could the in bank various fraudulent could for such instance, them $60,000 cash, when the cash annual the report of 1876. Supt. Eilk says respect. Department March, had bank unpointed Whether in would 1871 instead of 1870, is a seculative mostly
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wishing to keep It from the hands of a receiver. Mr. Ellis used his best judgment in the interest, as he believed, of 800,000 depositors in savings banks. Can a man be removed for a mistake in judgment He found that his predecessors used judgment and discretion in allowing a bank to go on with a deficiency of $115,000. The Attorney General uses his discretion in regard to suits. If the law said that the Superintendent must act forthwith, then is bauk with $12,000,000 assets might, in time of panic, be temporarily deficient $100,000, and the consequence would be that it would have to be closed up. It 16 always necessary to nurse and aid new banks. If the Superintendent finds a bank dellcient and turns It over to the Attorney General, and u subsequent examination shows error, the reputation of the bank IS ruined in the confidence of the depositors. Eight or nine banks which in times past have shown deficiencies now have a surplus. Stocks and real estate have been steadily falling, and It would require Eills to possess powers of omniscience to know every time what banks are doing with their deposits." After referring to the Abingdon Square and Traders' banks Mr. Chapman returned to the Third Avenue Bank, Stating that live months prior to Elhs' going into office experts were examining the bank, and the courts decided not to put it into the hands of a receiver. He sends three men to examine into 118 affairs, and they report a third of oue per cent deficiency of assets and a surplus of income. In a letter they speak of the courage of the managers in meeting a run and how well they have stood 11. Also of a change of trustees, and now prominent financial men had stepped in and taken the places of some of the weaker ones. After seeing that dve of the trustees stood by the bank Ellis expected it to keep running along, and it probably would but for the panic of 1873. The Senate then adjourned until two P. M. to-morrow.
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# POSTAL SAVINGS BANKS. The run upon and failure of some of the St. Louis savings banks, the explosion of the Franklin Bank and State Savings Institution at Chicago, and such scandals as those that attended upon the downfall of Mr. Darling's Third Avenue Bank, have brought into very general notice the postal savings bank system introduced into England in 1861, and since then adopted with some slight modifications in Canada. In England on the 1st of January, 1876, there were over five thousand of these banks, which held £26.127.967 to the credit of their depositors, the average amount deposited by each person being nearly $71 and the business of the year 1875 including 3,132,433 deposits, amounting to £8783,852. The deposits must be made in round pounds and shillings, and not exceeding £30 in one year, £150 in all, or £200 including interest, is received from a single depositor. Depositors are allowed 2½ per cent. interent on sums exceeding £1, the money being invested in the public funds. In Canada the system is somewhat different. Deposits must be in round dollars, 4 per cent. interest is paid, and when the deposit becomes considerable the Receiver-General buys 5 per cent. Dominion bonds and holds them in trust for the depositor. Deposits are exempt from seizure, and are payable anywhere where there is au office. Thus a man may make his deposits at Gaspe and draw them out at Fort Garry, the only delay in the process being the time occupied in sending an application for withdrawal from the local office to Ottawa, where all the accounts are kept, and receiving back the Postmaster-General's check. There is no expense whatever to the depositor. The postal savings bank system went into effect in Canada in April, 1868, when 81 offices were designated for the receival of deposits. There are now 278 such offices-232 in Ontario, 45 in Quebec and one in Manitoba-with, on the 1st of January last, 24,389 depositors. These have at their credit $2.727.910,77, including interest. During the eight years and nine months then ending 307,290 deposits have been made, amounting to $15 741.621, and there have been 153,394 withdrawals, aggregating $12.208.189,20, while further 6,786 investments have been made in Dominion 5 per cents to the amount of $1.617.300. There have been opened 85.971 accounts and closed 61,582, and interest amounting to $811.778,87 has been allowed to depositors. The average to the credit of each depositor is $111,85. The following figures show the progress of the business: