The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-18

| e,~
tne portage Lake bonds forced on the market be
cause .ne ocean National Bank was Interested IN
heepinR up the price OF the bonds; another reason
was Mr.. Calender had very close relations with
ane 9ank as BANK examiner, and was quite inter.
eseed IA ine portage Lake bonds and in securing
negotiation Tor the benefit OF the Portage Lake
bonds; this resulted as benefit for tue Ocean
BANK by indirectly keeping up the value or the
bonds; there was nothing said about his action M
bank examiner; Mr.. Calender told me that there
Of Million iA '' and " half " OF those lSc bo sae
by house in Nassau street; l do not
know at what price: FIRST became connected with
the Ocean Nation al Bank 1865, as cashier and IN
1870 as IFS president; think the bank became
possessed OF the securities have spoken OF In
Calender first discharged the duty OF bank ex.
aminer Tor the Ocean National Bank in 1867; Mr..
hedges ana Mr.. Morgan, constituting the execu'
tive or exchange committee of the bank, partic
Pated with me ia making these loans to MT; Cal
lender; the effect of the Chicago fire on the bank
was TO cause deposits 10 be drawn out very
Cnlcag0 banks having been locked up; about
ssoo,eo0 were drawn out Of the bank in the course
OF d Jew days; that. OF course, crippled the bank
considerably; have no opinion upon the question
whether the bonds would have brought as much
aiter the chicago fire as before.
loans2
Q. Would not this bank have sustained itself but
for Pa the Chicago ans dreS
Q. In your Judgment was not the failure OF the
bank consequence Of the Chicago fire2
The Court ruled the question out. Other questions
were put by counsel to show that the bank mad lost
CONSIDERABLY NJ time preceding the Chicago fire,
but the Court excluded them on the ground that
the defendant couia not be found guilty because
the bank had lost property. The Witness in reply
TO other questions, went on TO state that in 1859
the bank met with great difficulty; II was robbed
IN that year by burglars to the extent or $4,000
and Oh large amount of bonds belonging to its
customers. That crippled the business the bank
and II ran down very considerably. After the rob-
berry the business decreased by the dep 1sits being
decreased. subsequently the bank got into estma-
ton, and from that time TIL the Chicago fire the
deposits Increased and the progress Of the bank
was gratifying.
A. Was the progress OF the bank up to the 80 OF
OCTOBER 1871, gratifying to those who had charge
gratifying; having larger amount OF deposits It's
business business was more profitable; II was In more
i nonrishlng condition on the Sd Of October,
1871 than for years before, SO far as Its business
was concerned.
q In your judgment would not entire harmony
and earnest work on the part OF all concerned
have made the institution grand success A. 1
cannot tell what IL might have produced; in my
Judgment IL there had been no Chicago fire and IL
there had been entire harmony and earnest work
on the part OF all concerned In the bank, believe
the prophecy in Mr.. Callender's report would nave
Redirect-My impression is that l would not
have loaned Mr.. Calender any money II he had
not been bank examiner; that is one OF the reasons
why loaned him the money one OF the reasons
was to keep the Portage Lake bonds of the mar
ket; DO not remember how many OF those bonds
the bank had; the bank, In Its own right, owned
100000 OF those bonds; the checks OF Calender
were carried as legal tenders; there were other
checks carried in toe same way, but cannot say
whose checks; the result OF the loans show
that they were an injury to the bank
unless the receiver r can collect them think tnat
bonds sold for fifty cents on the dollar; had been
selling them before the fire, at private sale, for
those bonds other than those deposited by Mr..
Calender; OF the latter bonds never sold any;
cashier was $1,000 900; cannot say positively that
Mr. Calender examined the bank In 1907 he ex-
amined 1t In June, 1869, after the robbery, and do
not remember that he examined it again until
he made the examination Of October, 1871; the
capital stock OF the bank consisted OF real estate,
bills receivable, &C. Mr.. Calender came into the
bank very frequently, looked at whatever he
wished TO, and was familiar with its affairs
9 From the time You came INTO the bank was 1t
an overdrait of $25O0o A. No, sir; that was in
1855; think that was paid back before Mr. Callen-
receiver will allow me; cannot tel what was the
Indebtedness of Mr.. Calender to the bank at the
time or the examination Of October, 1871 when
loaned him this $4,000; do not remember when
MIR. Calender got his first loan from the bank l
cannot positively say that his Indebtedness had
preston is that it had been increasing; after the
Sd OF October 1871, did not want to loan him any
more money, because the bank had no more money
to loan In reply question to whether the bank
was in sound and solvent condition at the time Mr.
Calender made the examination, the witness re-
could pay its depositors and stockholders 100 cents
on the dollar, he would say mo-" he thought it
holders, and these would have got so cents on the
dollar he had left out OF this estimate the liability
OF the bank for stolen bonds; thinks one suit had
@. If Mr.. Calender as bank examiner, had made
true and exact statement OF the condition OF the
bank to the Comptroller OF the Currency would it
not in your Judgment, have resulted In putting
the bank into liqutdationP
Mr.. Fullerton objected to the question. The law
determined wnen o receiver should be appointed.
The Court ruled out the question.
To Mr.. Fullerton-I said that Mr.. Calender often
himself satisfied with the Improvement Of the
bank.
TESTIMONY OF JOHN s. LAN0woRTHY.
John 5. LangwOrthy, an Offctal employed In the
office OF the Comptroller OF the Currency produced
from the files OF that office certlfied copies of ali
the reports made BY Mr.. Calender, as bank
the Ocean National Bank; he had looked
S S Calender e as to Gf pons two a Ss
dated August 20, 1857, and the other July l. 1869
If he had made any other reports they would have
been found on the files OF the ONCE; witness also
produced paper, which he described as the ordi-
nary form or the commission OF o bank examiner;
the country was divided into districts, and for each
district there was bank examiner whose duty 1t
was to examine and report upon the condition OF
the banks IN his district at least once year, and
oltener If he deemed 1t necessary; the Comptroller
OF the Currency receives his information as to the
condition OF the banks from the reports OF the ex-
aminers and from the quarterly reports Of the
banks.
To Mr. Fulerton-In special cases the examina-
ton is conducted under the order Of the Comp
quests q special report; II there was anything in
the reports from the banks that required it he
would cause special examination to be made;
think the examiner, IN some cases, reports by
special letter, without making up formal report.
TESTIMONY OF BENTHAWT. BRUNpIaE.
B. 7. Brundige depOsed:-On the 18th day of Octo-
Der, 1871, was cashier of the Union square Ma
tional Bank; have examined the books OF that
bank lately.
Q. Can you say that the check of Charles Callen-
der that bank for $40, 600 on the I'd of October
1871, was goOdp A. would say it was not good.
z. Did he ever receive any money from the Union
Square National Bankf
objected to by Mr. Fullerton.
On this objection long legal argument ensued,
Mr.. Purdy claiming that under the law he could 60
into other transactions to prove motives and con-
duct OF the defendant.
The Court reserved Its decision and adjourned
until this morning at eleven o'clock.
BUSINESS IN THE OTHER COURTS.
SUPREME C0UaT-CAAMBsRS.
Decisions.
Tai