The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-08-01

The Long Island BANK Brooklyn has declared q semi.
snnual Dividend 81 Ave per cont payable demand the
Home Fire Insurance Company dvidtpd Of twenty per
cent pay able August g. the st. Nicholas Bank semi
nuAi dividend Of four per cent payable the 10th of Au
gust the Commercial Bank OF Albany a semi annual divi
dend OF eve per cent, payable August L.
We announced the deislcaons In the Ontario Tank Of
Utica few days since, but merely gave the fact and
the contemporary gives the following particulars
which may not he upinterestrg;-
An the Affairs OF bank have been investigated
doubt that all is creditors perfectly safe.
briefly state particulars N the difcuy. Inc Pres-
dent A. Johi son Esq 10 one OF the best known bank
officers IN the state having oeen constantly before inc
newspaper Articles his speciality and more recen y In
elaborate i,eause on the business OF banking which
forms . very handsome volume, and IL written with
siderable ability But wr Johnson fell into the very
rors against which he warned others; having
nexon cashier he gradually wishdre~ his active over
s.ehi OF the Affairs OF the bank trusted implicitly
those who have betrayed the trust The Irregularities
appear TO have grown ou OF mpro2cr privilege granted
officers, nearly oil OF whom are suppoeod 70 have been IN
corsion. In carrying this game, the bank neglected
frequently ovcrdrew upon in correspondence and ssned
certificates OF deposits dated ahead Complaint Of thcsc r
rcguarcs wa made lcitora Addressed "a tho President,
but moot Of hese failed 10 reach his eys when bits
cors aroused however, no entered the bank, and
commenced the probing process, and u II now believed
that the degclt will net DO hundred 10 hun
bred and dry thousand dollars This will be only about
oneoub OF the capital that the loss will fall entirely
upon the ssockhoider, many Of whom are wealthy and
well able N meet Il
The actual csuse OF tho defaoa,ons /. NOT clearly enough
given In the above 70 satisfy tho public mind II
nothing more or le,s - We nrss stated but loans male 10
the BLACK River Railroad Company high of interest,"
upou 10 more security than the companys accepanccs
The bank became 90 deeply involved by the private ope
raions OF the cashier In This paper could
lin current esasseuen,s and upon investigation the dis
eovsry VAS made mo cashier was without, doubt attract
cd BY the high rate OF Interest tho railroad company
10 him 10 entirely because we privately DONE without
the knowledge Of the directors and President nothing
new for banks 10 make loans 70 railroad companies
their acoepsances Every bank In Wall street has stacks
OF this paper in their drawers me railroad companies
ray we'll and the banks are ali glad TO get business
Even the ,rus companies OF the city money
paper SAVINGS banks arc nos directly but they are In
directly involved In these Two and three per
in nothing or hese railroad companies 10 pay and long
a. they NEE, their PAPER at maturity u rays the banks
much better than business paper The explosion OF
present system Of railroad fnssccrne e shake 10 the
very foundation many banking Institutions and uusi
companies.
he largest portion OF the travel over railroads during
the summer months u pleasure trsvel-small companies
and heads Of families This year Ia smaller than usual
from the necessity OF exercising economy. Few, very
few start on these excursions without entering close
calculation ali the contingent expenses attending them
commencing nrss with fare 70 the desired point 30 On
the line Of railroads the local travel or decreased