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Statements made by Jacob Odell and others show that the bank has been in a weak condition since late in the Fall of last year, when it became known that Luther Redfield, its then president, was financially embarrassed. When Mr. Redfield was elected president, he was believed to be a very wealthy man, and in offering himself as one of the securities on the official bond of City Chamberlain Tappan, he swore that he was worth $200,000. This was soon after Mr. Redfield had been chosen as president, at which time he held $46,000 of the $100,000 of capital stock. He invested largely in real, estate, and shrinkage in values and poor judgment in the selection of property, it is said, have !argely contributed towards his financial embarrassment. He assumed full control of the bank's affairs, made loans without consulting the other officers or directors, and all the worthless notes now held by the bank, and which amount to over $40,000, were negotiated. it is stated, by him. Who the creditors are, represented by this worthless paper, Mr. Odell states, no one in Tarrytown knows except Mr. Redfield. Mr. Odell claims that the bank was always prosperous up to the time Mr. Redfield became president, and that all its troubles date from that time, and are due solely to the mismanagement of its affairs by Mr. Redfield. In January, at the annual election, notwithstanding that Mr. Redfield owned, as he now does, one-third of the capital stock, the stockholders declined to reëlect him, and chose A. O. Wilsea, of Greenburg, the former vice-president, for the position. Mr. Wilsea is also Supervisor of Westchester County, and it was hoped that under his management the bank could be placed on a sound basis. The illness of the new president prevented his daily attendance at the bank, and in order to avoid any further bad investments, loans of all classes were declined. A few weeks ago a letter was received from Judge Paddock, the National Bank Examiner, inquiring if the securities objected to at his examination, last year had been replaced, as promised by Mr. receiving a negative response, he Redfield, and began a second examination on Monday. His appearance at the bank, for the second time in six months, created alarm among some of the heaviest depositors, and they drew out their funds, Mr. Baker, the County Treasurer, withdrawing about $30,000. The new president, Mr. Wilsea, had on deposit $13,000 of county funds, and made a deposit, through his collector, of $1,000 on the day before the bank closed. Deposits were received and checks honored on Thursday; some of the latter being made as late as between 4 and 6 o'clock. At the latter hour, the bank examiner, at a meeting of directors, ordered that the bank close its doors, as there was an impairment of about $40,000. A meeting of the stockholders was held last night, at which Bank Examiner Paddock stated that by reason of the failure of various borrowers at the First National Bank of Tarrytown to meet their obligations, it had been compelled to suspend. This condition of affairs arose from its going abroad for loans instead of confining its business to the legitimate wants of the community where it was in business. All or nearly all of its losses arose from the failure of persons entirely unknown to the residents of Tarrytown. It would appear that depositors should be paid in full, and stockholders be able to realize something, at least, on their investment. Upon receiving the statement of the bank examiner, the stockholders held their meeting. Mr. Humphreys was in favor of the stockholders making up the impairment by a pro rata assessment of $50,000, and resuming business. It was decided by a large majority to go into voluntary liquidation. The cashier said last night that the surplus of the bank stood at $25,000. " It has been deemed prudent," he said, by three-fourths of the stockholders to go into liquidation. We chose this method of extrication in the interest of the depositors, as it saves the heavy expense of a receivership. The stockholders feel that Mr. Redfleld's bad management and reckless ventures have wrecked the bank. which was perfectly sound when he came into it. Our bonds and mortgages and cash on hand will give us $50,000, if we can realize the face of our securities, which would leave $10,000 to apply to the account of the stockholders. We have $90,000 in circulation, and the difference on our bonds on deposit with the United States Treasury will add about $18,000-so that the stockholders may realize at least 25 cents on the doilar."
