Central Park Savings Bank (New York, NY)

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Terse Telegrams

CHILLICOTHE, Nov. 26.-The venerable Joseph Sill, sr., died here yesterday. FLINT, MICH., Nov. 26.-Captain A. T. Chessman, an old resident, died yesterday. VIRGINIA CITY, NEV., Nov. 26.-Work was commenced in the new Ophir works yesterday. NILES, MICH., Nov. 26.-The Alder fruit preserving establishment burned yesterday. Loss $5,000. COLUMBUS, O., Nov. 26.-Daniel Hallerman, a Short-line switchman, was killed by the cars this morning. LONDON, Nov. 26.-The purchase of the Suez Canal by Great Britain meets with general approval, both on the part of the people and the foreign authorities. SAN FRANCISCO, Nov. 26.-An anonymous correspondent of the Portland Oreganian, says: Capt. Howell, of the lost Pacific, was 80 intoxicated when the boat left that he had to be led on board. NEW YORK, Nov. 26.-There was a run on the People's Savings Bank this morning, but the officers took advantage of the sixty days' clause, and shut the doors. The Central Park Savings Bank is to be closed up.

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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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WITH SUPPLEMENT

THE NEWS THIS MORNING. FOREIGN.-The British Minister, Mr. Layard, reThe fused at Bilbao a visit from Gen. Burriel. Public Prosecutor at Berlin charged Count von The sale of the KhéArnim with treason. dive's shares in the Suez Canal to the British Government was confirmed. DOMESTIC.-The funeral of Vice-President Wilson at Washington took place in a rain, but was very large; Dr. J. E. Rankin delivered a eulogy; the funeral train was impressively received in Baltimore, and, after remaining in that city some hours, left for The full $250,000 Philadelphia at 6:25 p. m. for the new Cincinnati Musical Hall has been raised. The schooner Sunshine was overturned off At the Columbia River, and 40 people lost. the Avery trial in St. Louis, it was said that Secretary Bristow is interested in the whisky firm of Newcomb, Buchanan & Co. of Louisville, and a A. B. Stoughthreat was made to indict him. Chief-Justice ton, a Washington lawyer, died. Waite refused to allow his name to be used for the Presidency. CITY AND SUBURBAN.-Plymouth Church decided upon calling a mutual council. The People's and the Central Park Savings Banks closed their doors, and a receiver of the Manufacturers' and Builders' Bank, a State institution, was appointed. Argument was had on the motion to release William M. Tweed from arrest or reduce his bail in the $100,000 The testimony was closed in the Scansuit. noll trial. Preparations were completed for the reception and escort of the remains of ViceCardinal McCloskey rePresident Wilson. The Legislative Comturned from Europe. mittee on Crime visited the House of Refuge. Three children were suffocated by the falling of an Gold 1143g, 11412, embankment in Brooklyn. 11412. Gold value of the legal-tender dollar at the close, 87 310 cents. THE WEATHER.- The Government report predicts cold and clearing weather. In this city, yesterday, the day was mild and very rainy; thermometer, 41°, 49°, 48°.

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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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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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Why Mr

Blessing Resigned. To THE EDITOR OF THE SUN-Sir: T was elected a trustee of the Central Park Savings Bank without my knowledge or consent, two months before its suspension. At the first meeting I attended I called for a statement of the bank's condition, which was not given until a month afterwards, when I discovered that it Was in a crippled condition which I thought could be remedied by each trustee paying in a pro rata share which would enable the bank to pay its depositors. A few others with myself paid $250 aplece, white the majority held off and would not pay anything. When they failed to do as they agreed 1 resigned my positien as trustee. When 1 left the bank it was $2 0 better off, while I Was that much out of pocket. FRANCIS BLESSING.

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THE CENTRAL PARK BANK

NEW YORK, Nov. 29, 1875. To THE EDITOR OF THE HERALD:Knowing that it 18 your desire to do justice in all cases, allow the to occupy a short space in your columns in reply to a few paragraphs which appeared in your issue of the 27th inst. in relation to the suspension of the Central Park Savings Bank. I never received

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ONE BANK SUSPENDS AND ANOTHER CLOSES ITS DOORS TO SAVE ITSELF. New York, Nov. 26.-The Manufacturers and Builders' Bank, at Third avenue and Fifty-seventh street, suspended this morning. The excitement among the depositers 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 the sixty days' notice. 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. The Central Park Savings Bank, a comparatively small institution, is to be wound up by the State Superintendent, at the request of its President.

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TOO MUCH MONEY! COVINGTON, Kr., Nov. 27.-It falls to our lot to record another big brewery failure. A deed of assignment from Henry Niemeyer, jun., to H. P. Whitaker was lodged for record in the County Clerk's office yesterday. NEW YORK, Nov. 26.-The Manufacturers' and Builders' Bank, at Third avenue and Fifty-seventh St., suspended this morning. The excitement among the depositors is in tense. There was a run on the People's Savings Bank, Third avenue, this morning and the officers closed the doors, taking advantage of the sixty days' notice. This bank was affected, with others, by the 1un on the Third Avenue Savings Bank a short time ago. There W?S also a 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 Superintendent, at the request of its President. NEW YORK, Dec. 1.-R. & P. Lawrence, heavy stationers in Maiden Lane, announce to their creditors their inability to continue their payments. They promise a prompt state ment of their affairs when a meeting of creditors will be called. NEW ORLEANS, Dec. 1.-The Bank e of America has suspended. The Board of Directors resolved to cease operations and put the bank into liquidation at once. NEW YORK, Dec. 1.-The failure of John Thompson & Co., No. 441 Broadway, and No. 15 Mercer street, hair and fancy goods, is announced. u MT. VERNON, Nov. 29.-Several business men and farmers hereabouts e have made assignments recently. n NEW YORK, Dec. 2.-The failure of B. & P. Lawrence, stationers, Maiden Lane, is likely to be a heavy one, though much of the indebtedness is n to foreign houses. The liabilities of e Abrahan Bogardus, photographer, whose failure is announced, are esti0 mated at $35,000. He claims if his n creditors will allow him time he will y pay in full.

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THE CENTRAL PARK SAVINGS BANK

A further meeting of the depositors of the Central Park Savings Bank was held yesterday at Germania Hall, Third avenue, to consider what action should be taken against the trustees. After a long discussion it was agreed that 8 lawyer should be engaged to prosecute the President of the bank, Thomas Gearty, it being considered that the best portion of the depositors' money had gone into his pockets. It was diso understood that some of the old trustees had given individual bonds to make up any deficiency, and that since the suspension of the bank they had been withdrawn from the bank. It is also decided to call a mass meeting of the depositors for the purpose of demanding the removal of the Bank Superintendent, Mr. Ellis, who is considered to have acted in the interest of this and other suspended banks, when he should have protected the interests of the depositors. The meeting is to be held some day this week.

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CENTRAL PARK SAVINGS BANK

The meeting of the Depositors' Committee of the Central Park Bank, which should have been held on New Year's day, was held yesterday afternoon at the Brevoort Assembly Rooms, Fifty-ninth street and Third avenue. The committee reported that they had been unable to obtain any satisfactory information from the receiver, Mr. French, and it was understood that be was about to dispose of the bank property at # great sacrifice to the depositors. The committee also reported that it had ascertained that most of the dopositors' money had gone into the pocket of the late President of the bank, Thomas Gearty, who is a builder. Gearty put up the bank building as it now stands, receiving in cash $75,000 and a mortgage of $35,000. Counsel had advised that the President should be sued as well as the trustees for the moneya found to have been illegally taken from the bank. The committee then decided to call a meeting of the depositors at an early day and then determine upon what steps shall be taken against the receiver, the President and the trustees.

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CENTRAL PARK SAVINGS BANK

A meeting of the committee appointed by the depositors of the Central Park Savings Bank at their last meeting was held last evening at Brevoort Hall, Mr. George J. Wood presiding, and the other members of the committee, Messrs. Timothy Donovan, John Burlanson, Horatio F. Averill and Francis Durning, being present. It was stated that the total amount of the bank's liabilities was $77,388 23, while the assets were estimated at about $66,650. Mr. Averill, who is also counsel to the depositors, submitted a report setting forth that he had seen some of the officers of the suspended institution and also the receiver, and that the latter signified his willingness to prosecute the trustees civilly and even criminally, if the depositors thought it necessary. According to the report, Mr. Thomas Gearty, the last president of the bank, states that he and Mr. Redman and Mr. John G. Cary, the vice president, took a deed of the property at the corner of Third avenue and Forty-eighth street, at the request of the trustees, for $74,500, giving the owner $10 000 cash and their individual mortgages for $64,500. The bank, he says, has follows:-

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THE MUTUAL BENEFIT SAVINGS BANK

Ashbel P. Fitch, counsel for the depositors of the Mutual Benefit Savings Bank, obtained an order yesterday from Judge Donohue of the Supreme Court, requiring William F. Aldrich, receiver, to show cause at the Special Term, on Jan. 14, why he should not be removed. The depositors complain that they are dented access to the books and accounts of the bank: that they have reason to believe that the assets have been grossly mismanaged and misapplied by the trustoes, who have thereby subjected themselves to criminal prosecution and pecuniary liability; that it is impossible to ascertain the facts in regard to the irregularities of the trustees, except through an examination of the books and records by an expert. The depositors further claim that Mr. Aldrich, while Bank Examiner, made incorrect reports of the suspended Mutual Benefit, Central Park, German Uptown, and Third Avenue Savings Banks. It is understood that Mr. Aldrich will deny all the material allegations in the petition, and claim that his reports as Bank Examiner were true and correct, according to the books of the banks at the time he examined them.

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THE CENTRAL PARK BANK

An Institution without Responsible Trustees -A Thritty President. The depositors of the broken Central Park Savings Bank met last evening in Brevoort Hall to hear the report of their Executive Committee that has been investigating the affairs of the bank. The report sets forth that the committee had applied to seventeen reputed trustees of the bank. but some of those gentlemen asserted that they never were trustees, others that they had resigned, and others neglected to answer at all. A subsequent examination of the minute book showed that sixty-three trustees and officers had been elected in the short life of the bank, but there was nothing to show who were the trustees at the time of its suspension. The total assets of the bank were comprised In the bank lot and building, and asicall amount of furniture. Of cish in hand there was none. and the cash in bank was only $95, and that was safely deposited in the Manufacturers' and Builders' Bank, itself a bankrupt concern. The bank lots cost $74,500, and the building $32,000. A significant fact was that the building of the bank was given out on contract, and the builder was Mr. Thomas Gearty, its own President. The report showed by figures that this gentleman, by subletting his contr. ct. made $4,300 without touching a stone or driving it nail. There was a claim set up by Mr. Gearty that he had refunden this profit to the bank, but this the committee could not substantiate, The report asserted further that from the time of the organization of the bank until the day its doors were closed it was insolvent, and its officers and trustees were cognizant of that fact. The report concluded with a proposition made to the committee by Mr. Gearty, that taree arbttrators be appointed to decide the questions at issue, and fix the amount due by the trustees to the depositors. Whatever their decision might be, he (Gearty) would pay his share. This proposition could not be accepted, as the bank is in the hands of a receiver. The bank owes its 991 depositors $40.888, and should its building sell at what is estimated a fair market value. the liabilities in the way of mortgages, back taxes, &c., are so large that not over ten per cent. of the deposits can be paid.

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SUSPENDED SAVINGS BANKS

A SUIT BY DEPOSITORS OF THE CENTRAL PARK BANK -CONDITION OF THE GERMAN UPTOWN SAVINGS BANK. The depositors of the Central Park Savings Bank have instituted proceedings, through Barlow & Olney, counsel for Isaac V. French, receiver, against Thomas Gearty, President; John G. Carey, Vice-President. and 18 trustees, for misappropriation of the funds of the bank. The complaint sets forth that the officers and trustees, in violation of law, declared dividends on a fletitious surplus, in order to deceive the depositors as to the true condition of the bank, and used the money of the depositors in the erection of a bank building, giving the building contract to Mr, Gearty, the President, and the painting to Mr. Carey, the Vice-President, at a large profit. Under the recent decision of Judge Westbrook, the depositors are stopped, as they are advised, from bringing criminal proceedings.

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THE COURTS.

Continuation of the Central Park Savings Bark Trial.

A TRIPLE ALLIANCE AND ITS CONSEQUENCE.

The Proposed Abolition of the Marine Court.

The case of the Receiver of the Central Park Savings Bank against the President and trustees of the bank, the facts of which have already appeared in the HERALD, was continued on trial, before Judge Donohue and a jury, in Part 1 of the Supreme Court, yesterday. After some additional testimony in relation to the action of the trustees in the purchase of the lots adjoining at the same time they purchased the lot on which the building was erected, Mr. Anderson, on behalf of the numerous counsel representing the defendants, made a motion for a nonsuit on the testimony which had been submitted on behalf of the plaintiff. This he urged on the ground that it appeared from the testimony that at the time of the purchase of the lots the bank was solvent, having assets equal to its liabilities; that not being a moneyed corporation they had to use the deposits for the purpose of providing a bank building as authorized by the charter; that they were authorized to purchase a lot, which they did, and that the title to the other lots was never vested in the bank, but only in the trustees, and no loss having been made by the negligence of the trustees, but only through the depreciation of real estate subsequent to the fall of 1873, they could not be held guilty of fraud or criminal negligence, but, if of anything, only improvidence. In opposition to the motion General Barlow contended that the evidence showed a violation of the law in having invested in real estate to an amount beyond that necessary for the business uses of the bank, and in this violation of their charter they had made themselves liable for the loss resulting therefrom. Judge Donohue held the motion under consideration until the opening of the Court to-day. The experts who had been examined on behalf of the plaintiff as to the loss resulting from the depreciation of the real estate differed considerably in their estimate, their calculations varying all the way from ten to thirty-five per cent.

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PARK CENTRAL BANK

SAVINGS Recently, on the application of Messrs. Rabe & Brown, counsel for the trustees of the Central Part Savings Bank in the suit brought against them by Mr. French, the receiver, Judge Westbrook rendered a do cision that the trustoes (in whose favor the suis 10. sulted) were each entitled to a separate bill of costs. Yesterday Mr. Otney, counsel for the receiver, ap. peared before Judge Donobue in Supreme Court, Chambers, and asked for an order directing that all these bills of costs be taxed in one judgment roll, so that one appeal. which be intended to tuke, might cover both the decision of the Court on the merits of the case and the allowance of separate costs. Judge Donotiue said he would make an order that all the defendants tax their costs in one judgment within a specified time, and those failing to.do so would be considered as baving waived their rights in the matter. This, be said, would be done so as 10 allow Mr. Olney to take his appeal from the judgment by Monday next.

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REVERSING A SAVINGS BANK DECISION

In the suit of Isaac V. French, receiver of the Central Park Savings Bank against Joseph E. Redman and nine other trustees, the Supreme Court. General Term, Judge Brady giving the opinion, has reversed a judgment at Circuit nonsuiting the plaintiff. The suit was to recover the loss incurred by the purebase of the lots, on one of which the bank building was erected. This purchase was made in 1873, and there was no proof that at that time the price paid was not fair, and on that ground the complaint was dismissed. Judge Brady. however, holds that in view of the fact, that the bank was not at the time of the purchase a success, that for three years previous its payments had exceeded its income, it should have been left to the jury to say whether the purchase was justifiable or a speculation or such a lack of judgment as to make the trustees liable. Francis C. Barlow appeared for the plaintiff; E. E. Anderson for the defendants.

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dollar in Louisiana

On the notes maturing and payment being refused the plaintiff brought suit to recover their full value. The defence set up that the composition operated as a satisfaction of these notes. Mr. Elliott F. Shepard, counsel for plaintiff, showed to the satisfaction of the Court that neither of the notes nor their holders were sufficiently described in the bankruptcy schedules to bind the plaintiff, and thereupon a verdiet was directed for plaintiff for $1,689 87, the full amount of both notes. Messrs. Chamberlain, Carter and Eaton appeared for defendants. An Italian named Teto Tedeschi, who said he was a tailor, residing at No. 332 East Eleventh street, was arraigned yesterday in Part 2 of the Court of General Sessions on two indictments charging him with felonious assault with intent to kill. It appeared that on the night of the 4th inst. he entered the ten cent lodging house No. 94 Park street and asked for lodging. While waiting there he made improper advances to the landlady, which she promptly resented. Frank Gaffney and Franco Lubardo at once interfered on behalf of the landlady, when Tedeschi drew a stiletto and stabbed both of them, inflicting severe wounds. Tedeschi was seized and conveyed to the station house. When the prisoner was placed at the bar vesterday by Assistant District Attorney Lyon he pleaded guilty to one indictment, and Judge Cowing sent him to the State Prison for five years at hard labor. Benito Gurtar, a Cuban, was also arraigned on the charge of stabbing Amenia Pasquail, of No. 160 Greene street, in a fit of jealousy, cutting her severely in the car. The prisoner was sent to the Penitentiary for one year. The second trial of a suit brought by Isaac V. French, receiver of the Central Park Savings Bank, against Joseph E. Redman and other trustees of the bank. has been commenced before Judge Van Brunt, holding Supreme Court, Circuit. Some of the late trustees have settled the claims against them, but the defendants, not deeming themselves responsible in the premises, contest the suit against them. It is claimed that the trustees in the purchase of the lots on which the bank building was erected entalied a loss of $20,850, and that they should be liable for such loss. At the former trial Judge Donohue dismissed the complaint, holding that the action of the trustees was an error of judgment and that they therefore should not be held accountable for the loss. The General Term reversed this judgment and ordered the new trial, which is now in progress. Messrs. Barlow & Oluey appear for the plaintiff, and ex-Judge Cardozo, Abram Wakeman, Anderson & McMann and Addison & Brown and others for the defendants.

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RESPONSIBILITY OF TRUSTEES

THE CENTRAL PARK SAVINGS BANK REAL ESTATE INVESTMENT. The decision of the Supreme Court, General Term, which has just been handed down in the suit of Marcus T. Hun, as receiver of the Central Park SavHaga Bank, against John T. Cary and other trustees of the bank 18 important as limiting the powers of such trustees in certain instances. The defendant trustees bought a number of open lots on Third-ave., paying therefor $71,500. Subsequently they sold a portion of the property for a sum sufficient to make the cost of that which remained $29,250, and upon this latter property the trustees built the bank building. After the bank became insolvent the receiver brought the suit to recover this $29,250, charging that the defendants were guilty of derelletion of duty in expending so large a sum of money in real estate on which to build the bank building, and that they had thus abused the power in their hands Judgment was recovered in Circutt in favor of the plantiff The General Term sustains the judgment. Justice Barrett. who writes the opinion. says that under the circumstances this was an extraordinary transaction. To talk of is as an error of judgement 18 idle. It BHOWS the heighth of imprudence and indicates a rash and speculative spirit. Some of the trustees pleaded bankruptcy, The General Term holds that this does not relieve them from the Hability, 10 being for unliquidated damages arising from tort. The judgment, however, is reversed as to Philip Smith, one of the trustees who was not present at the meeting when the action in ques. tion was taken.