New-York tribune., 1873-05-10
ROTTEN TO THE CORE.


THE ATLANTIC RANK AasRrs or DOUBTFUL VALUE
DIREcToRs' AND OFFICERS NOTES DISCOUNTED
WITHOUT GOOD SECURITY = LARGE CLAIMS
AGAINST THE BANK PRESENTED I'M ny
CoNrrprNcE OF THE DEPosIToRs- COMMITTEE
WITH MR.. BURROUGHS. ..
II ,ras announced exclusively in THE TRIBUNE
or Mav1 that examination OF the accounts or the At
lapc Bank showed that OF the directors had over
drawn his account 10000 and that broker and his clerk
had obtained large loans missing securities Further
exanaon shows that at least three other officers are
involved in the same manner, and TO large amounts
There n no evidence OF anything else than careessness
in tbee transactions but the revelations have greatly
encouraged and disgusted the depOsitors
II seems that the 10 the hands Of the
ceiver note for soOOO drawn by the President of the
bank Mr. J. Z. southwOrth, which was discounted some
weeks ago. Inquiry made TO learn whether com
nttee Of the bank had authorized this loan to the Pres
dent or whether Mr. sOuthworth himself had accepted
his own securities but nothing definite could be ascer
tanned Some mining stock deposited as security,
but II is now described absolutely worthless Mr..
southworths responsibility was discussed at the bank,
Yesterday nothing relative TO his present financial
condition was asoertained by the Committee OF De-
pOsitOrs.
similar note drawn by another director and indorsed
by the President s said TO be discovered among the
assets but as the exact not named and the
standing of the director known by the informant,
he declined 70 give the for publication. II was
known however that the collateral deposited to secure
this note was yalueless Indeed the defaung cashier
Taintor made away within three dave previous to the
discovery OF his crime, with all the securities negotiable
ON the market.
Among the marked doubtful" is another note
for 5000 drawn by Mr.. A. B. Chapwe the notary OF
the bank and 1t is said this has been running under
frequent renewals, for two years.
II was learned at the bank that fresh liabilities TO a
large amount have been presented to the receiver
within few days and that suit to recover these claims
has been threatened. Their nature is not stated In
view Of the serious nature OF these unexpected hab-
ties which the receiver has reported at Washington the
Controller OF the Currency Yesterday telegTphed MT
Strong the receiver forbiddng him TO make any dyl'
tany ascertaned This order led 70 the impression that
the receiver anticipated the presentment Of other claims
Yesterday afternoon the Committee OF the Denosors
consisting OF Messrs. Wm II LIBBY f. D. g. COOK X a.
Rochester, W c. Martin, and W j. A Fuller, had con.
ference with Mr.. Roswell > Burroughs, director ana
hank The meeting took place al the office Of Messrs
Libby Clarke, Nos. 1856 and 9S Maiden-ane, and was
secret and exciting. 10 was found mat the stocE mas
been scattered ali directions, and IN small parcels,
from Maine Pennsylvania. There are over 100 stock
holders instead Of as heretofore understood 10 be
the case With the exception OF Mr.. Burroughs, the
largest stockholders admitted or reported 70 be IN
solvent One OF the Committed had Information that Mr
Burroughs had time disposed OF large part OF
his stock and an attempt made by Mr.. W. j. A.
FTuer - induce Mr. burroughs 10 state ex-
actlv how much he owned. He was
asked IL he did not 1888 shares, but
declined 10 further than that he held not more
than that amount This reply variOusly construed
Mr. Burroughs was subsequently asked by TRIBUNE
reporter If the Committee had asked him the question
whether or not he sOckhOder 10 any amount, and
he declined 10 answer. He thought Il hardly
proper question. There suggestions made at the
meeting OF beginning SUITS and Mr. Burroughs sad IN
reference this that he did nOt know who they could
sue or prosecute As for himself his conscience was
clear and his skirts clean. He lived COO miles away and
couldn't he expected watch the officers OF the bank
He was large lender 10 the bank and had never been
bOrrO
The Committee viii report Monday 70 the depOstOrs,
who are hold executive session on that day. the
report viii probably be IN favor OF compromise on the
best terms Obainable the business men OF the Com
mittee prefer this 70 litigation