New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-28
A BANK UNDERMINED.
HE ATLANTIC NATIONAL RUINED BY IT'S
CASHIER.


CASHIER IN JAIL
Wall-st was thoroughly astounded on Sat-
,,day BY the announcement first whispered but finally
seearcd without reservation that the Atlantic National
rank had been ruined and that the cashier was de-
,ulter In 100000 Measures instantly taken 10
,eerain what truth there in the statement ana IL
vas soon learned that the reality exceeded even the
oldest rumors which were in circulation regarding the
hank and it's operations The circumstances OF the os
sesure are as follows:
Ibout . n m. on Saturday, F. l.. Tantor, cashier OF
nc Atlantic National Bank, Of No II Nassaust entered
II, private Office OF Frederick D. Tsppen President OF
ae Gallan National Bank in wall-st, and saluting hlm
Informed him that he cashier Of the Atlantic Ma
nonal Bank aud defauer 10 the extent OF siOO'Oo'
Mr. Tappen spTang from his chair and confronting the
nan who had so cooy made remarkable coniessioD
,ked him Why he had come TO him with such state
cent Tntor, thoroughly selfpossessed said that u
vas because Mr.. Tappen was Chairman OF the
clearinghouse Committee and ne wished 10 relin
,sish his trust into the hands Of that officer
arcey able TO believe what he had heard. Mr. Tappen
,,p asked why he had come 10 him 10 make such ter
able and Taintor replied that the bank officials
,ere about TO make an examination into the affairs OF
ne bank and cOncealment was no longer possible ne
,hed 70 avert a scene by anticipating their action. al
aoaqh be knew at what cost 1t would be TO himself.
Mr. Tappeu instructed him TO return to the bank and
eere await his own coming with the other members OF
a. Clearing house Committee. TaintOr returned to the
Atlantic National Bank, and Mr.. Tdppen Immediately
tlesraphed 70 the other members OF the Committee,
res,rs Cadup Hayes, Hunter, Leyerch, and Perkins,
meet him in order that they might proceed TO nvest-
ME the condition OF the bank.
Between 2 and 3 D. m. they entered the Atlantic
National Bank, where matters were going usual,
inor doing his work and giving instructions to his
Hbordnates Arriving at the Office OF Mr.. sOuthworth,
Ne President they we're met by him at the door. sus
pecug that something had gone wrong. he falterngy
Eked the cause OF their visit When IT was briefly ex
taiued to him he very much overcome, and said
nat be would never have suspected Taintor Of such
nine The Committee suggested that under the cir
eumsances would he wise to close the bank at once.
n this Mr. southworth objected declaring that until
De statement was proved he would not consent to
closing the bank as stood well with the business COM
uuuity. As he declined TO issue orders 10 suspend
psymeuts, the tellers continued TO receive and pay
Beney as usual While the other members Of the Com
ntee examining the banks securities, Mr. Happen
esrned from Mr. southworth that the day previous
said to Mr. Taintor that the banks loans had not
teen examined for time, and suggested that, per
kap they would better look them together and
Nat everything right Much to his surprise Talntor
lemued and finally refused TO comply with his demand
,r permit him 10 the loans SOuthwOrth then called
meeting OF the Board Of Directors 20 compel Taintor to
submit aud it to escape this that TaiDtor sought
NJ Tappan.
PACIFIC MAIL VICTIM.
While TIE examination was stll IN progress Mr. Tap
per called Tutor into the private Office and questioned
aim as to the details OF the fraud. Taintor informed
that the money had been lost In stock speculatiOns
and in other manner. He stated that he proud
u being chosen as the cashier OF bank and when be
into the Atlantic Bank, finding that it was weak,
he undertook to make 1t strong and reputable by
Sessiul the Stock Exchange. Unfortunately
III ~ ha haA
from bad to for period of about five years, until
Ia February he had Lost immense by the decline
liz Pacific Nail and other stocks, making probable total
Of $4,000 or 100000 more than the capital Of the bank.
He assumed the whole responsibility Of his operations
said that he had accomplces and that President
eouhWOh and the rest Of ms associates ignorant
his crimes.
The Committee, finding that the bank so hope
esdy insOyent, did not make as thorough examna-
bon Is they would have done If there had been any
doubt They discovered, however that the default was
boiveen 100000 and sl25OOO follows 100000 worth
N property deposited IN the bank for safe keeping s75,
on gold, represented by tickets for $4,000 and $4,000
the cashiers drawer and securities deposited with
bank ss collateral loans. Just before the close Of
sns banking hours, rumOrs Of the trouble reached de
pO1ors, and some Of them rushed to the bank, and,
demanding their money received It, the defaultng
rashiei being unusually courteous. At D. M,
however the paying teers window was closed and no
1Oe money was paid, although the news having gained
currency, there was large crowd Of depostOrs
tn0 eamored for their money and denounced the bank
HSmsas iot not paying IT,. Those who had deposited
Oney just before tue bank closed were particularly
Hlg9alL The prOtestatiOns Of depOsitOrs, however,
sea them ltte and tue bank was cleared Of all ex-
Nv lao'e engaged by II or In the investigation of its
sAs II having been clearly established that the bank
eld not possibly continue, Mr.. Tappen communicated
na me Controller OF the Currency, and received the
'N'HAns eIegra phc reply:
MD TPEy President a., lave notes protested under Section
Ne z al Don fled.
h.. JOHS jar KvoI Controller Of the Currency.
accordance with these instructions Mr. Tappen had
~ iOf protested pro J0rmd, for the purpose Of
SSseg the bank into bankruptcy The United states
All Examiner then took charge and began examine
80 he characterized the management Of the bank
~ s strongest terms, and said there must have been
!Osses neglect and oarelessness, for otherwise
SxSt Of years undiscovered.
ASSURANCE OF TIE DEFAULT
throughout the whole afternoon Tlintor preserved the
nos nlpertulbable demeanor. never betraying the
lsaitst emotion, but relaxing occasionally into face
UoS mood, when be would address some commonplace
s'esu to the unfortunate deposltors who, ignorant
I'VE share 10 their msfOrtunes did not resent his words
Dun! Soald have done IL they had known the truth.
1 as tae examination he was frequently called upon
tsei Questions and explain some details Of the en-
ssana be always responded with impassye alacntY.
ralt issued By CosmissioSef Osborn ON the cop
SaGi District Attorney Bliss, made on evidence fur
kNdtsV tbe Committee. took Taintor into custody,
slserred him 20 Ludlow-st. Jail. Taintor is about
tS9tdree years Of age below the medium hight neat
Ilhes 'Vuthlu ana fdIner prepOssoeslng IN appear
t(S, ne comes from excellent family in Windham.
i o. ara nis father is capitalist and owner OF stock
orSSe 1alatln National Bank. Young IaintoI after
" THIS city, began as clerk IN the Union Bank,
EesS.ii RON that position 70 be teller in the American
Eeng BANK, where he was employed several years.
highly 10 Mr. sOuthw0rth, he went 10 the
sven years ago as general accountant. His
Etsb having been proved he was made hrst assistant
ElA e ahd hye year, cashier. lie Is married, ana
fln. Ssshly at New Rochelle. So far is known be
fAsssieI Deen dlssOlute eXtravaRant, living within
EHost and according 10 his story passion for
pa sEeeSIs,Is s,one has LED him INTO MS dicnltes
fEast,s, atOhs began almost with his Installation as
fsag ou heretofore he has always been able 10 have
accounts on Inspection days, nc least 10 make
W1es ygpPear 50 u ms cOnhding superiOrs.
Ae gsnor brokers are lie matter Of conjecture ae
1tciSs men OF the Committee having the knowledge
not ons .slsh The names Oh the ground that II did
Of heir fnvae and