The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-09
THE THIRD AVENUE SAVINGS BANK.
Sound as Nuts Ability to Meet Every
0hligaton-Fright Among Depositors Yes
terday- Surplus $50, 900

A somewhat sensational article appeared In one
Of the sunday papers yesterday designed 60 affect
the credit OF the Third Avenue savings Bank and
its seventeen thousand depositors HERALD
reporter set out TO obtain confirmation or refula-
ton OF the alleged facts and frauds For this pur
pose ne visited the residences or Mcssrs. Hennesy
Hall, Dooey. Tuttle aud Daring The nrst three
gentlemen were not at home. Mr.. futile resides
next door TO the bank IN Twenty-slxth street The
HERALD reporter called there ana rang the bell.
and, having waited several minutes for response,
departed without obtaining any. A demonstrating
little man, with closely cropped grayish black beard.
was coming out OF the side door OF the bank. OF
whom the reporter inquired whether any OF the
bank officials were inside
"None that you can see.r he replied
RErORTER-"Do you know where any OF them can
be found now2"
mo, don't" he replied. and hurried or up Third
avenue as fast rs he could
subsequently the HERALD man found Messrs
WIN. A. Darling, futile. Harrison phc counsel OF
the bank). Lynes, the President. ana Burns Direc-
tors, and the substance OF their statements con-
densed Is a. follows
STATEMENT or THE BANK OFFICIALS.
The difficulty Is an old one. Three years ago the
bank made . loan on Atlantic Mail stock. which de-
prcciated in value before the loan coui be called IN
ana the institution lost for the time being near.
ny III. N,
through whom the loan was chiefly made, was
director IN the mail company and also In the bank.
me Is now president OF the former lie nad mag
sisting OF l26 acres, together with house which he
had been enlarenr, ana II was IN an unfinished
liquidation OF Mr. Dimmicks debt. It was then
valued NJ 100000 and they have sold Tour
rather, exchanged them for three houses IN Fiith
avenue valued then at tins sum. bn, now estimated
70 DC worth S7O,OOO eacl. There are twelve acres
q ,tI
think they can obtain 100000 any day. But ~ mo
Boston and Hartford Railroad branch h TO run
quite near the property its value Will Increase the
longer they can hold IL. ana the balance Of the
property they consider lworh another $780, 900.
loan was made, during which time the bank has
LAID us deposltors nearly one and quarter millions
Oi dollars IN Interest, ana IL Is now
READY TO PAY EVERY DOLLAR
demanded Of Ii. Some OF its securities are however
Oh such nature that they canno! be converted INTO
mediately without great sacrifice to thu bank and
its dcposItors. For instance. it holds 100000
which in the present condition OF the city
treasury could not be turned INTO cash wthou.
similar condition In THIS particular. The six ex
trustees named IN the sensational article as having
resigned because OF the alleged rottcnness or the
bank were directors nc the time the Atanuc Mail
loan was made ana approved OF 1t. ana they ned
their POSITIONS since tnat time until within very
recent period.
THE REAL CAUSE OF THEIR REsIGSArIoN
was quite another thing. There are twenty two
are 80 engrossed IN business rarely to be able 10
attend the meetings OF the bank officials. Mr.. y X.
Green has been Tor several years lc elected Press.
dent, but just previous to the last election IN Janu
airy II was found that an opposition ticket was TO be
ior President, ia and Mcssrs HIATT, pooiey, HalaeI
ana Hennessy were To be made Vice Presidents Sec
rotary Auditor ana Actuary, II was really war OF
year is attached 10 the Presidents ONCE and So 500
10 the Acluary's; and me secretary, Auditor and
Ui toe position there was therefore an additional III
centive to aspire TO the Offices. When the election
came of Mr.. Green was again reelected, hut Tor the
sake Of harmony he refused to accep the Office, AMI
insisted on his resignation being accepted. IL was
with regret, and Mr. Lynes a well known coal mer-
chant OF the city, was elected IN his stead. THIS
change was made nine months ago, aud not re-
Gently. The gent emen who failed 10 yet positions
resigned their lrusteeshps soon after, AMI some or
them, IL Is declared. have tried To get
rum on THE BANK
ever since. Last week II ~ reported that one OF
them minated to or asked u Catholic priest 10
nOunce IRON the altar the unsOunlness or the bank
and 10 advise his congregation to withdraw their
deposits. Neither the President. Secretary or At-
dior have received any salary this year, and some
Of them not any last year either r. Ine bank has
over the loss incurred by It's Atlantis Mail loan.
The $40 900 deficiency alleged by tue iadepcndont
to exist IN the banH snort time ago were, the above
named trustees say by counting The securities held
by the bank-many United States bonds--at par IN
stead OF at their marker value. The discrepancy OF
$40 900 alleged 10 have been found by Mr.. HIATT IN
the actuarys accounts was explained TO him.
t. n"' IL did not affect the banks accounts cunts
one dollar, but was designed 10 affect the report or
tire loss on the Atlantic Mali loan 10 appear IN one
report There was no pecunary fraud In the figures,
nor intended by them, There Was
among the trustees, and the institution was man
aged between 1868 ami 1871 chiefly by the very gen
tlemcn who have resigned. Mr. Harrison, the
counsel 10 the bank positively denies that he
received So 500 rom MRS. Lee, or anybody else, In
has been connected with the bank since 1874, anu
has given his legal services without compensation.
About three and tall or FOUR years ago, however,
the bank, having large surplus on hand,
voted him 200 for his services Tor the ten
Or Sess % ans s a. esae n
he accepted the responsibility on the mott IA Of
MI Haiti and BY the unanimous vote OF the Board.
idle or be gwen IN charge OF "a hired man, ana a.
the Board wanted TO realize ON the property as
speedily as pOssibei It was deemed the more prudent
way to nave gentleman IN occupancy who could
keep up the form OF an establishment ana az the
same time be able 10 sell IL 10 advantage. And as
evidence OF his temporary stay there Mr.. Harrison
cites the fact That his family were residing In an
other parl OF the county while he lived there save
for a few months III the winter and spring. And az
soon as the house was sold ne returned with his
family to the city. The mater OF saving IN rent
was mere bagatelle, ana was more than balanced
by his loss OF time IN going hther and tither night
and morning.
the bank was made through Mr.. Warlng 10 avoid
the merging Of the fees IN the mortgages ana be.
cause OF his confidential relations to the bank and
for other reason, ana the Board Of Directors or.
dered II to be so done.
There Is not dollar loaned on
JERSEY SWAMP LAND"
The bank has made loans on some property In the
best part OF Elizabeth, which Is now worth al least
times the amount loaned on IL and ~ value Is
continually increasing. All It's other loans In New
jersey do not exceed 10000.
small amounts the trustees acknowledge, are de-
posted In the Murray Hill and Security Banks, but
according to law. As fast the abstracts OF titles
can he engrosseu they are filed In the archives or
the bank, where many OF them are now safely
hou sed, and any statement 10 the contrary they
brand as false and malicious
late last evening as many OF the directors rs
coud be readily gathered together met at the resi-
dence OF one OF the directors aud prepared the io
lowing abstract OF the assets ard llabilities and
general condition OF the bank on the LIST or Octoper
ana from II the rea lers OF the HERALD and the de-
positors VIII perceive That the bank Is financially
sound enough ana able TO meet I'LL It's liabilities.
But furthermore, the officers have received offers OF
assistance from other bank Officers who had read
tile sensational article and promptly came 10 the
rescue The Third Avenue savings Bank VIII be
omen to-day as usual and ready 10 meet every just
demand unOn It's treasury. ana the del Ors VINO