The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-04


the gentlemen who have certified to these burninss
less from the naked fact that fraud has been commit
ted by somebody.
"rhs books show sn excees Of notes DESTROYED, Of
500 os0 being OF denomination except twos but
chiefly Of the denominations OF ons five and ten do-
Ia the case Of the Canal Bank Of Lockport, Thomas
Burt, Esq, was appointed special agent, aud CON-
menced the examination on the 9th Of August ls4j-
The resources. which estimated by the bank at
tIsi76a 80, were estimated by the special agent at
$7sa!l % The report states that the amount ofoans
sd discounts have been diminished from $3.50 7ie
the first Of May Is45, the sum of about SEQ 0OJ-
Of debtors e Of ssa
another of Sl2 0OO and by surrenderug S737OO in
been included the loans discounts of the bank
in its quarterly reports +" The stock notes
December l84l when like amount Of stock issued
to him, with the view, stated OF dposipg Of it for
cash. and thus increasing the active capital Of the bank
small amount only thus disposed OF, and the resi-
due 100 transferred to the bank in February,
lsa2 by Mr. Rogers but his notes given therefor were
not cancelled Withdrawn until after the failure OF
the bank The capital stock is stated the books
Of the bank ct 6OO instead Of oooO as hereto.
Cash payments were suspended at the bank on the
morning Of the 18th of June and bfore it's
refused at Its agency In Albauy Subsequently, six or
seven thousand dollars of paid to depo
scrs In violation Of the 5th section Of the entitled
An act relating . to tho redemption Of bank notes."
At the time bank was xamined 1t had oirculs.
ton of $lssSsO and about $4,000 Of its in
bank The securities in the hands OF the Comptroller
at that time follows:
Bonds and s mostssgss'' .'''...... $50 800 90
Arkansas state stocK.' 10000 10
ILLINOIS state etoc@; 1000 90
sl63 600 90
bill was fled In the Court Of Chancery and en- in
junction granted against bank officers And
on the l4th Ct October slj committee Of the drsc'
at the agency Albany, and also at the
OF the bank Under this arrangement the circulating
returned to the banking department and burned and
mortgages to the amount Of $1,000. and New York
transferred by the Comptroller to the agent The cir
sa5 500
In the case Of the Lewis County B suk, Thomas NJ.
Burt, Esq appointed special agent aud commenced
the examination Of the bank tn 26th of May, 1916
After tull examination, application m sde the
Chsneellor and injunction granted aganst the
| bank aud its officers
| When application made to the Comptroller for
investg alton Of the al Of this bank rep
resented that q large amount OF it's notes had been
culation, and that this operation prsciptsted thu
| barrassment Of tbs Lewis County Bsnk; and a com
mission given to Mr. Burt against the Bank OF Wa
tertown in order that the affairs OF both banks might
be investigated in connection with the Transaction
frrsd to- 1t ascsra,nei that about SIS 900 Of the
circulating notes of the Lewis County Bank had been
placed In the hands of the cashier OF the Bank Of Wa
tertown. 1t did not become necessary to the
| mission issued in of the Bank Of Watsrtown.
There also overdraft Of scan sS, which
proved to be loan Of not.s Of the bank to responsible
J6uor6O0
returned when called for in the original pack
| ages as they went from the bank.
An arrangement was made to have 90 cent paid
the stock Of the bank and the obstacles its resump.
ton OF business were removed
The Canal Fund had a claim against tho bank Of
$4,000, for loan made in Dec, 1882 and for which
the State held . certificate Of d-posits signed by L.
Martin cashier and also held costerai security
for the payment Of the loan the individual bond and
mortgage of John W. Martin and two of his brothers.
The special agent found no acknowledgement OF this
debt on the books Of the bank The whole sum- how.
has subsequently been realized to the Canal Fnnd
from the forecloure of the mortgages against the Mar
and to this extent improves Its condition The Comp
did not consider that the character Of
sets Of the bank authorized issue Of tbs full
OF notes prescribed by law for bank Of capital Of
500 600 The bank has slas,27s in registered notes
and s24ss outstanding Of its I'D emission, making
made for about $4,000 more, making $Isoooo. the
amount allowed by Law to a bank with capital Of
trol-r determined have the bank again examined by
Mr. Burt In order to ascertain whether the had
ascertain whether the condition Of the bank afforded
satisfactory evidence that the capital Of $50
had been paid In and kept In the bu,ine's Of the bank
Mr. Burt and on the 18th he commenced the investiga
ton After due examination Of its affairs tn. special
agent reported the estimated value of the assets
| the liabilities exhibited by the cashier, and as sp-
peared by the books OF the bank to be ss 800 To- which
would enttle the bank to circulation of Si27 34t the
amount already in its possession being Slso7l Under
this state Of facts determined by the Comptroller
that further delivery Of registered notes be
made especially the special agent also reported that
there was suit pending against the bank foe the
covery Of demand Of about 5000 which did not ap-
pear the books as a liability and which was not
taken into consideration in his estimate OF the value Of
the stock.
The report further states that loan appears to have
been made by the bank to enable any stockhoder to
pay in the so per bis stock; but did ap-
pear that loans to . considerable amount made
elsewhere to enable stockholder who had purchased
than half the stock of bank to make the
pay out tns precise amount OF such loans could
The report shows that loans and discounts to
directors OF the bank At the time the animation was
made, exceeded the limit prescribed by law to the
amount Of S67ol IS 1t proposed by the cashier to
of chs dir ctors aud Judging fros the suartsr
ly report Of the bank Of the lat Il November this
course appearSto havs been adopted.
In the case Of the Bank Of Watertown Thomas NJ
s. ami Of the bank on the s9,h Of My is
lo42 san the statement OF discounted bills Of the
bank This error had been repeated and sworn to In
GIL the quarterly reports for the two previous
The oncers could not, or did not explain the Of
this error Tn" report states that lin making up
vde there at the time making the last dividend
unpaid interest to the amount OF $l2ss6 the Arksn
and Illinois stocks included with the resources the
stocks being also estimated at their par value Tns
error or deficiency Of q e4a 81 has also gone to swell
the resources above ths trus amount
"on the aIst day of July 1896, draft for 81 os7 90
wa. drawn on = person 10 Kingston, Canada by the
cashier Of the bank snd credited to the such
person This draft counted specie the next day.
August lst and included with the specie actually
bank IN its quarterly report to the Comptroller made
on that day And 1t remained in thu bank, and was
counted and specie the quarterly re-
ports of the bank of the first days Of November and
February last On about the 2ith day OF April last
the draft was charged to the person whom It was
drawn not having been cut Of the bank forwarded
for payment
ION the 30h day Of April last checks for 81 900 each,
drawn by the cashiers Of the Bank Of WATERFOWL and
Black River Bank, their respective banks ex-
changed, ut the request OF officer Of the 6st named
bank and counted and reported specie by the Bank
of Watertown the LIST day of May in its quarterly
report to the Comptroller No record of this
ton made the books Of either bank and the
checks destroyed immediately after the report was
made All the specie Ia the b sck River Bank the
of May included in report Of that bank "
On the 99th OF November last the circulation Of the
bank reduced $40 l40 aud there In the
of the Comptroller the following securities viz: bonds