The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-21


persons about town; but proceeding to the doors
OF the bank building one mlght have seen posted
up in conspicuous position over the steps OF the
stoop the following notice.
BANK CLOSED.
$AFFAIRS ARE BEING INvESTIGATED-wILL RE-
PORT AS SOON AS POSSIBLE.
In front OF this unsatisfactory announcement q
small crowd had gathered the sidewalk and
steps, In the midst of which there were several
very excited individuals whose minds were troubled
regarding their petty deposits in the bank while
others, who had really large sums in its keeping,
were possessed OF comparative calmness, and
looked upon the sudden event which had over
taken 1t in O rather depreciative light as to the
magnitude OF the disaster. This feeling was, OF
course, encouraged by messages from the interior
Of the counting rOom the entrances to which were
strongly guarded by half a dozen policemen, who
spoke in mysterious whispers, like the watchers
by a deathbed.
poor and trembling man came rushing up with
acrumpled bank check in his hand and riveted
by his frantic actions the gaze Of all those present
He wrung his hands and snapped the joints of his
fingers with a bitter expression OF countenance
Rs II thereby to get rid OF some hideOus halucina
ton which afflicted him. The amount belonging
to him which was in jeopardy was $40, with which,
II he could draw it, he had hoped to meet very
pressing bill. The smallness of the check and the
greatness Of the necessity of getting it cashed
formed ludicrous contrast. But perhaps the
mans anguish was occasioned by some former ex-
perience Of the horrors Of the upper ter' in Lud
low street.
In the midst of his singuarly incoherent rawlings
tears actually started from his eyes and his face
turned purple with emotion. He was at length
quoted somewhat by the comforting mnistrations
Of the persons about him, whose persuasions in
duced him to believe that matters were not so bad
Is they seemed Still he could not get his money
In time to settle his bill, and went away very down.
hearted.
After much difficulty and after several times
being refused any information, HERALD reporter
succeeded in obtaining favorable reply to the fol
lowing note:-
viii you be kind enough to give me what information
bank would Ger alny be much better ior You if the
given reliable and official Intelligence the
lnous rumors that abroad.
After considerable further delay the reporter
was finally admitted into the barricaded building
and ushered into the private onice Of the Presi-
dent, where he found that gentleman, in company
with another and gray-haired officer OF the bank.
Mr.. Erastus F. Mead who is only President pro
tesa., was elected about three weeks ago to that
position, subsequent to the discovery of the
trouble in the affairs Of the institution and upon
the resignation of its old and nonored head. Mr..
Richard williamson. What significance this re-
urement has in connection with the present Diff
Culty-if indeed 1t has any-cannot yet be ascer-
tanned 1t is stated, however, upon what appears
to be good authority, that the Board OF Directors
has OF late been divided by internal feuds about
the discounting Of certain notes, which eliminated
In the adoption OF resolutions calling upon Mr..
williamson to resign his office, to which request
yielded. 1t Is asserted that this was the primary
cause of the crash" One faction Of the Board
IL n nw To
hamper the AFFAIRS OF the bank, and caused many
persons who had large deposits to withdraw them.
ence to induce the Metropolitan Bank to refuse to
act any longer as clearing agent for the BULBS
INTERVIEW WITH THE PRESIDENT.
Mr.. Mead received the reporter with nervous
air and invited him to be seated. In answer to ill.,
ave have discovered that there has been money
extracted from the bank, but in what manner we
cannot tell am unable to give any figures re-
''why are you in this ignorance p"
'The books have been mutilated. We know only
approximately to what extent we have been
robbed but what our estimate OF the amount of
the deialcations is would not like to state We
think, however, that the depositors safe from
any loss"
your latest balance sheet?'
THAT l cannot tell you. The liabilities to de-
positors amount. probably, to twelve or thirteen
hundred thousand.n
''What are the assetsS"
81 cannot TELL the accounts have been de-
SCroyeu anu some VI the DOCKS taken away, and
perhaps ourned."
"what efforts have been made to clear up this
mystery"
''We have been to work upon it for week. The
mutilation OF the books first called our attention
to the fact OF our losses One morning the clerk
came here and found them in the condition in
which they are now and discovered, also, that
some of them were missing. In those which still
remain some Of the leaves nave been taken right
out. one OF the most important OF those winch
have been injured Is the general edger.u
''When was this discovery mades'
al cannot say.
MEETING THE BOARD
was held about three weeks ago, and q committee
was appointed to examine affairs and was CON-
posed OF the following gentlemen :-Messrs W. l..
COgswen, Jacob voorhees, Jr Thomas Rae and my
sell. 1t was only this morning that an expert was
called In to aid us. We nave suspicion as to who
are the deiaulteIs. We have found no trace which
A. present WOULD point TO any one, clerk was
dismissed short time after the discovery, but
mercy ior Tue reason that We wished to reduce
our cercal lorce. The only way We could get al
doing this we had arrived at that point when we
tnought IL proper to discontinue business.
The depositors will lose nothing cannot saw as
to the stockholders. The surplus at the balance
struck on Friday two weeks ago was S76O60
The figures OF the report OF the expert which was
more nearly the balance arrived at by us on last
Monday than any other that has been made Upon
its reception the Board resolved to close the ban k
The Court will now decide, Of course who shall
examine the accounts, as 1t Is q case OF voluntary
bankruptcy. and there Will be no meeting OF stock
holders called until then"
The President persistently refused to give any
more definite statement OF matters, and fire.
quently IN the course OF the conversation checked
certain remarks begun by the gentleman who was