New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-27
THE HOBOKEN SAVINGS BANK.
STATEMENT OF THE MANAGERs-THE DEFICIENCY
REDUCED TO $4,000.


REDUCED 10 $1,000
The detailed statement Of the affairs Of the
uoboken Savings Bank will be made public by the
Board OF Managers this week. The report has been
carefully prepared and i hoped That the anxiety OF
the depositOrs will to extent be relieved by H. The
statement which Is in the hands OF the printer
enbodies the following facts; The Board of Managers
IN making the usual monthly examination OF the
accounts for March discovered deficiency
Of 5000. and Frederick Klenan the cashier
disappeared the next day. The accounts Of the bank
were nj once examined. and II found that the all
sconding cashier had embezzed about $1,000 Of which
$4,000 was in T. s. bonds. These he had evidently
taken TO assist him in his flight.
The Board Of Managers Immediately communicated
with Superintendent Keso OF tho NewYork Police DE.
partment by whom they advised not to offer any
reward the OF tKlenan as the ends OF justice
would not be enhanced thereby. Mr. Kelso explained
that the announcement OF such reward would prob
ably aid number or private detectives to eXto hush
money from the deaulter, but that It would not
dite his capture or assist in the recovery
Of the bonds Despite this advice, the
Board at meeting held April &C. resolved to fer re-
ward OF 5000 Kenan's arrest and further reward
OF Is per cent the recovery Of all or part Of the
stolen bonds. This action the result OF demand
made by the stockholders and depositors, Some
OF whom had openly alleged that Klenan's
whereabouts were known the officers OF the
ants were employed examine into the affairs Of the
bank soon after the discovery OF klenan's
defalcation. They found that his populations
extended over period Of several months, ana
that he had manipulated for his own adj
vantage large number Of accounts which were closed
ON OF depostors but which he kept open
on the bank lcdgers for his own purposes.
The number OF accounts opened with the institution
since IL began business 3lS6 OF which S,ii2 were
closed prior June 3, 1879 The work OF examination
progressed slowly, as It found very difficult TO pro
cure the passbooks Of deposors whose accounts were
closed many OF them being mislad or lost
On the 10Th Of Sept the expert made report To the
Board in which showed that 1904 depositors accounts
we're open when the bank suspended OF these he had
examined GO passbooks, which there credits
10 depositors OF $I3576 60 On the LOIS accounts re-
naming 10 be examined. the bank ledgers showed
credit Of s1s95OO 20 depositors making total Of
,277Os6 10 The assets, which were mainly com
posed OF mortgages on Hudson County property,
were found 10 be sl,2l5329 So showing an
apparent deficiency OF sGli67 IA. The Board
Of Managers realizing that the foreclosure OF mortgages
would entail great suffering and Inconvenience TO tho
property owners resolved TO make effort to raise the
amount Of deficiency by subscription, which was
partiay successfu circular issued setting forth
the exact condition OF affairs and calling on the Dor
rogers from the bank 10 contribute TO prevent the ne
cessity of calling in the loa9s The appeal met with
favor and more than one-haf the amount was SUP
scrilod in short tme and the bank would have been
enabled 10 resume but Tor new misfortune caused
partially by the recent panic.
Through the circulation OF reports which were suDse,
oneptly published in some OF the newspapers, run
npon the created and 10 was found necessary
10 sell the United States bonds held by the institution
The Treasurer authorized 10 effect this sale and
plaeed $4,000 with Fisk hatch for this purpose. The
proceeds were drawn upon as required n9til the bal
depOsit with the expectation OF Withdrawing IT at an
early day. 80, -. -, ,
the money due the bank was unayOitably locked up
A committee appointed to wait on the hrm returned
hey ly ia
the firm, and had every confidence in their ability to
nay, This would, however require time, hut they nad
found that Fisk Hatch had determined 10 pay first the
cteditOrs not secured by coateras ana from
this led believe that the bank would be pad In
the course OF few months the full amount OF the de-
post and interest and thus enable them to resume
Tie Secretary OF the Board submits the following re-
port of assets and liabilities Of the bank on Oct 10