The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-08-14

Capltal STOCK. SoOOOO w
Notes in circulation not re-
pistered ,..,,,, 1871 90
Due depostors on demand. 1850 40
Due individuals and other
than banks. ......... O263 70
Due banks. ........... 506603 81
Fund. 80. 1ae,s1e 90
Aud lor Genus. 10 ... -.
Total liabilities. ........ ST. 204, BAG 80
Signed,
JK PAIGE. THEo OLcoTr.
Sworn to 10th April, 1S48. James |. johnson, COM
missioner Of deeds.
Among the g cash items of the teller were found
two che cks dated jan 1st 1S49 for 1857 signed
JL Crew, and dated July 1S49 for S. 2S0 signed
81. I. Crew by j. L. Crew. These checks were held
by the teller as cash, and so counted daily on ba
lanciDg his accounts 1t will be observed that of
the checks is dated LIST Of July 1919 and the special
agents desired him to explain why he appropriated the
funds of the bank, and substituted his own check,
dated about year in advance; to which he replied
that he was frequently away from home, and, in
travelling: he did not know how or when death might
overake him, and that he took this precaution that
his executors might have ample time to settle his af
fairs before his indebtedness could mature"
paper discounted is made PAYABLE with interest md
checks discovered among the " cash items' to
pay interest &C.; and that too by persons who have
been owing the bank thousands Of dollars for years.
both for principal and interest and at the time
receiving their semi dividends at least thou
sand dollars year.
Among the many transactions which have come to
the knowledge of your special agents the following is
deemed Of Importance enough to communicate
Mr. w. M Ostrander, of Syracuse. came to the city
The Sth of July 1.-TWO days before the bank faied)
calling at the Canal Bank, and requested that the
Cashier would discount him three for 500
each; he was informed that he would discount them,
and gave MIR. Ostrander q blank check to sign, in
der 10 draw the money which done, the cashier gave
him 81 SEQ in Canal Bank bills. Mr.. Ostrander
turned home, and hearing Of the failure. Immediately
returned, expecting that he would have no difficulty
in exchanging his bills for the notes. but to his aston
ishment, was informed that the Mechanics and Far
mtrs Bank held the notes and claimed thatfhey had
discounted them and they produced check on that
bank signed by MIR. Ostrander, showing that he had
signed q check the Mechanics and Farmers Bank,
instead Of the Canal Bank the business having all
been transacted in the Canal Bank. Mr.. Ostrander
still declares that he never had any communication
with single individual con nected with the Mechanics
and Farmers Bank any way IN relation 70 the loan
Eames will further expose the gross mismanagement OF
the bank. 1t appears that Games called at the Canal
Bank few days before its failure, and left for coec
ton two notes and draft, and at the same time
drew his check for 3000 and authorised the cashier
to place the same amount Of funds in Buffalo, subject
to his order, agreeable to the arrangement which
existed between him and the cashier after Mr. Eames
had left the bank, the cashier states that he was in
formed by of the clerks that Eames' account was
overdrawn, and he therefore discounted of the
notes, amounting to $1s00, signed stephen Paddock,
and endorsed M. r.. Eames, to make the account
good. II is denied on the part OF Eames that his
account was overdrawn, and that he entitled to
credits sufficient to make balance in his favor with
any to the Paddock note 1t also appears
that this note discounted by the Canal Bank on
Sth of July and rediscounted the day at the
Mechanics
them it was protested on the 18th instant and Pad
dock has been sued for the payment OF the same.
The account of Edwin Croswel shows balance
due him without any reference to the notes and
checks which he owes) of s2Os2e 10. To make this,
credit has been made of $4,000, either on Monday
afternoon or early on the morning of Tuesday, dhe
day the bank faed)
On enquiry the teller stated that he unable to
say whether the credit was made on Monday after
of deposit was received by him from Mr.. Croswell;
but that he directed to give the credit the cash
book by the cashier the cashier thinks that there
beef given this credit being deducted, leaves Mr.
Croswels account overdrawn upwards of $4,000.
In connection with this It is proper to state the cir
cumstances under which the bank holds bond and
mortgage (hed collatera given by Mr. Croswen on
his houie andlot in Elk street
The bond and mortgage is dated August l, 1872
and given for 500 and found by your agents
not recorded the explanation given is, that at the
time it drawn 1t not considered Of much i'm
portance inasmuch as the property already mort
gagged for about its value. .
1t cannot be expected, nor will 1t be pretended tha
this report will be accurately correct to be relied on
other than as approximation towards what may
hereafter be ascertained to be correct The individual
acting for the last two years. has ron
cause grossly neglected his business, and conse
quently the books of the bank have been left In mys
tilted and confused condition.
A great portion Of the accounts have been incor
rectly balanced entries to wrong accounts credit
entered the debit side of the ledger, entries mad,
the cash book from 500 to $500 short of the
received, and blunders and errors Of like kind on al
most every page Of the books
Thus It will be that 1t will require a long time
with patient investigation to bring the accounts 10
position where they can be properly settled ana nna
adjusted.
During the of the teller under oath be
fore the Attorney General the cashier was informed
that during the afternoon of that day he would ais
be examined in relation to matters connected with tn
bank. Accordingly notice sent to his house VIII
directions to appear that afternoon, at o'clock 7
which no reply was received nor reason given for HI
nonappearance. He was also notified to appear 0,
the following Monday, but he still neglected to appear
and was not examined.
The necessity to be regretted that has thus com
PEELED your agents in DEMONSTRATION to communcat
facts that may njure the feelings or wound the sens
b;ies Of those with the persons alluded to
either by the ties Of friendship or kndred but the
duty to the innocent victims OF rapacious specu
lation the fair reputation Of the city and Its inst
tutions which duty they have performed with consc
entious endeavor to merit the appreciation Oh 'nos
who love truth and revere justice ~
Examination Of John l.. Creo, Teller. augustus D. M"
Book.keeper. and T. II. Knorer, Geaerai Cfer 70
JuLy 1ath, 1S4S.
QUESTION. Were you the teller of the President, d
rec,ors, and Company, of the Canal Bank OF Alban!
commonly called the Canal Bank, on and prior TO Tn
1lth day of July instant and how long had you pee
such teller
How long cannot tell without reference to the book
think had been such teller about three years.
q. Have you any knowledge of the removal or tran
or ny other kind of evidences of to sal
bank, or Of any money drafts, or bank bis being r.
moved from said bank, at any time within week b
fore the said 18th day of July!
A. Yes, have.
O. state what securities, moneys, or bank note
have been within that time removed or trausferre
and open to the be obs or other evidence kept in WI
ting In the course Of the business OF the panK SNOW
ing the same.
| A. | refer to the book receipts, cash book No.
Canal Bank, from date of Sd of July, 1s4s. On TIL
day, should have hand, according to the boo
$lS1,J72 49, The left hand column of the eller's e.
change book under and after the ate of July 3d. sho'
the Transaction of the exchange with the differei
banks in this city and Troy 1t shows that truly VI