The New York herald., 1870-08-27
THE PERIL OF WEALTH.
Ehs Brooklyn Central Bank Failure-Meeting Of
the Depositors-A Committee OF Inves-
= tgation Appointed-A Suit
Against tho Bank

eS,ank which collapsed short time since, met in
Uolo 4 Murphy's auction room. There were large
humber present. Mr.. Cole ON being called to the
rnair made few remarks, stating that at the last
injecting he was satisfied that there was some hopes
of the depostors getting their money back, but now
Ahe case did not look so WELL and he thought new
receiver should be appointed.
Mr. voorhees, moved that committee OF three be
appointed to confer with Mr. Spader and report.
r MI. Cole said that would take time, and too much
slime had been lost already. The meeting had been
put on TWO days later than It should have oeen.
I Mr.. Havens moved that committee OF three be
appointed to investigate, with power to employ
'counsel II necessary. He said there was misun-
derstandng somewhere about whether an amount
pf 100000 which appeared on the books OF the
bank was to be considered as deposit or whether
At was loan. Mr.. Spader had made different state
ments about It, and n could be shown satisiacto.
billy that II was q loan It would be 40 much better
for tho depostors. Mr. Spader had told hall dozen
INHERENT stories about the matter. and he thought
hhe meeting ought to have II cleared up.
l Mr.. Place objected to legal proceedings. IL would
be time enough to take legal steps when absolutely
necessary. IL would be dinicult for any committee
10 get Information from Mr. Spader or any one. De-
poeitors were running to MIR. Spader day after day,
Heeking an explanation, and 1t was not wonderful
that he should be out OF sorts sometimes. He thought
Hhe best way to send the committee to ascertain
Hrom MIR. Spader or any one In the bank and from
IAN examination or the books, what Was tue true
position OF affairs.
< Mr.. Kane had no confidence IN MIR. Spader. nor In
UOhn X. Pruyn. The money that the depOstorS had
entrusted to their care had been applied by them to
their personal use. He wanted o new receiver, and
counsel OF the bank would worS for the Interest Of the
bank and the stockholders; bu5 he wanted some one
20 look after the interests OF he depostos. lie had
about 81 500 In the bank ana he wanted his interests
protected
e Mr.. Place moved as an amendment to investigate
land ascertain the condition OF the Affairs Ot the
tbank and 10 report at an adjourned meeting,
Mr.. Havens wanted TO know how large q sum the
injecting represented. He thought, too. that the
CommiJtee ought to have The right to employ coun.
gel 1t was not to investigate, but to prevent any
aoss OF time. They wanted to take the bun by the
MornR and have tue tung satisfactorily settled. II
fhere was TO be no employ OF counsel there had
ibetrer be no committee at all.
MIR. Place would not submit to the action Of any
counsel employ ed by any olher man. Being a law
yer himself he proposed to set for himself in the
matter. IL was claimed thai the bank had right
to place securities In tile hands Of the County Trea
eurer Tor the security OF deposit. They would lind
SSe secates Mr. G puyn w o 10 os the he
bank over two hundred thons md dollars worth OF
property much more than the value of his stock.
General CrO0ke, who was present, was invited to
address the meeting, and said thai he had been
shareholder IN the bank iruu Its 10 o;naton. but he
kept no account there anu ia neI II been dlrec
tor. He had conducted two o. s!lr SUITS for the
bank, but had never been fo.DaJ appointed its
counsel, ana knew nothing ab5at tie affairs OF the
bank. His posilion was as So >ao.dcr but three
four depostors had reauostcl lin 70 act as their
representative. As an instance tue way In which
ne acted FOR the bank ue said t..at ol the lst OF
August he was sent Tor Dy hlr. Prem, who was In
great tribulatton, and assisted hiin in making
OF the creditors of tho bank. rnis pro:
gery was worth over two hundred thousand
eral creditors and not for the security OF Mr Gardi
ner the County Treasurer He had the right as the
ns IN 0 I'm to
assignment was to be Thought crime, ne was Will
ing to bear the burden: This was the nrst thing he
tercsts and for the interests OF his friends In the
bank, which interests happened to be identical. 1t
was only necessary TO show, in addition. that the
stockholders are liable to the full amount OF the
stock. and whatever a stocknolder can do to sub.
serve his own interests is also for the interests Of
the depositors. The stockholders will lose their
stock and will he liable to be called on for equal
not imagine how he could have acted In any different
way for himself that Was not for the benefit OF the
SSepcsitors; &c ., There was one way IN which the
ital, who believed the real estate was worth more
bank, assess tile stockholders hundred per cent,
get S2Oo.OoO live capital In their hands and Mr..
ten per cent on It's represented value. With this
there would have been enough to pay on the small
and out OF the real estate enough could nave been
made 20 secure the stock. But ne had abandoned
this idea when he saw the article In the Ko0ts yes
terd0y. He thought the depOsltOrs looked upon It
too much as matter OF vengeance. For his own
part he looked at 1t as matter OF dollars and cents.
Ho wanted to secure his stock, and would like to
avoid being assessed. All that lie had TO do with
the matter had been since the st OF August. 1t was
his belief that out for the obstacles thrown in the
way by depositors. the parries Interested In the
plan he proposed would have carried it out by the
1st OF September, and the small depostors would
have been paid. lie had every reason 10 suppose
that the bank would have been resuscitated with
cash capital paid In.
: After some further discussion q committee was
appointed to look into the affairs OF the Dauk and
report at the next meeting to be held on the I'd Of
September.
The meeting then adjourned.
p, ACTION AGAINST TIE RECEIVER.
In the Supreme Court yesterday an application
was made by William l.. Eastburn. Que OF the de-
positOrs for an order rcqu ring the receiver to
turn forthwith TO him $780, the amount OF his
deposit In the bank Counsel for the receiver con-
the assets should be disposed OF by the receiver,
while counsel for the applicant argued that the
statute gave the Court the whole control OF the mat
ter. Judge Pratt reserved his decision.