The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-10-15
rHE DRoKhN SAVINGS BiNK.



matte Fraud mud Perjury.
About two thousand dcpositors Of the
T!hrd Avenue Savings Bank gathered inside and
outside OF the Gernania Assembly Rooms last
evening. to hear and take action upon the re-
port Of their committee Mr.. II. A. Macdonald,
an accountant who had examined the state
mcnts filed by the bank at Albany, REED AN In
tercstinG ANALYSIS showing, a. he asserted, that
fraud aud perjury of the most hagrant kind had
been porpctrated by officers OF the bank. Hts
analysis showed that the bank was insolyent
when II had nearly six millions Of dollars of de-
posiis and when the fraud in It's managemt mt
was exposed b, 1nE SUN. The facts obtained
were sufficient, he said. to Justify tho
Irosc 'ution Of certain officers for per-
iurv. and the Institution Of civil suits against
oh the trustees The statement Of 1872, previ-
Gus 10 tAo run, was signed 10y John IL. Lyon,
Pre- sidcni and Daniel Bates, Secretary pro tenn
and showed total assets to the amount OF 90
H0Gll including S1p,Oln In hand, The surplus
claimed was sll2si q. The stock investments
were / it at $l,Gij,6O t11.0O above their face
vllu'. Trough SiJ,On of those stocks were
notoh t ~y worth not over nifty cents ON tue
duha. Under the term All assets not mem
toned a1ove was Included accrued Interest on
southern securities that had not been paid IN
years. aud the eventual payment Of which was
at least Vers doubtful.
Without saving a word about the rea estate,
the bank was then in,olVcnt to the amount of
about Sl2S.tOO. But about iineiN acres Of Tar
rytown real estate was placed at Sl.'OO an acre.
though tue bank attorney, Harrison. had been
Informed ~ gentleman Ia lhrrytOwn. we'll
acquainted with real estate there that II was
not worth tJn an acre.
The Il, At statement was after three millions
and moro had been drawn from the bank. In
| that the bOrds and mortgages were figured at
s276.ON and stock Investments at ShQl 6ll .si.
! The Tarry town real estate was put AZ Slt2tn.
| Among the liabilities was call loan on stocks
amounting to s2lO,0g. II had become. hard to
| pretend sOlvency. That report was signed by
Danel Bates, acting President, and DAVID Nor
| gan, secretary. ana IN the report Louisiana
bonds were nut at about par. as well rs other
! stock over nifty cents below par.
In the next report appeacd bond Of the
trustees as An asset and It showed a non nid
! ing fraudUleutiy pretended excess oi value Of
stocks and real estate. There was Insolvency on
the face 81 that statement.
July. isi3 found the surrlus down to 5000,
and among the assets $SS.i4l.1s of pretended ex-
eess M saST ws. ." ssTed bS peckef
dent, ana David Moyan. Secretary. a-,.
10 J snuary, lsit' the surplus Was sd.MS.oI. In
july II wa. put at tl5un 10y the same old system
Janu ry. is,5. found John 5. I,on. President,
and Wm. :. Carman, Secret ~, who sWure to
the lat statement ever sent to the Rank super
intendont That statement made the surplus
S6,lsD a.. the assets not named being figured at
Within three months after a thorough exami-
nation was begun. aud without any uiminutiOn
o the face value OF the real estate on the hoOks,
there was found to be adeucienCN of S'salO1, the
market value OF the stocks being taS leo in,
stead o. $4,000, rs sworn to before. The real
estate had boen carried ON the books at 6O per
cent. over actual value.
MIR. Macdonald said that he had been told by
ar experienced lawyer that tho officers of the
bank who had sworn to I ilse II dement's within
the period of the statute of limitations would be
indicted. No statement WIS made IN July. the
Insolvency Of the bank being known.
MIR. Ellis, the superintendent, had explained
to MIR. Macdonald that he was dtssuaded from
closing the bank 10y Leading financial men, who
suggested that nothing wouli toe lost more th .
had been lost, and thRt " given time, the bank
might sell it, real estate to advantage ana re-
cuperate. iin1ing no change Tor the bet
ter. he notified the trustees that the
| Albany, aud engaged ex-Goy. Hoffman as coun-
! sci. and William :. Carman was appointed re-
| ceiVer. The Court intended to demand from
him bond of $4,000. but as he could not fur
nish II, the smOunt was reduced to fl4OO,
| which was furnished. Since MIR. CarmHn's APP
| pOintment all the bonds and other assets haJ
| been removed to the United States Trust Com
pany for safe keeping, about $1,000 In cash
| Mrs. Josephine Nichols said that Mrs. WIN.
| Mcdonald. living at lal Java street, GreenpOint,
| had been walned 10y friend among the bank
| directors to take out her money, as the ban X
| was gong to fail
| A letter was read from H. W. Bosworth, ca
| Third ayenne a depositor, denouncing MIR. Car
man as an improuer person for receiver.
| After number OF speeches, motions. and
resolutions, MIR. Ashbel l.. fItch, a lawyer and .
! depositor, was instructed to begin proceedings
! at once for Dir. Carman's removal.
| Henry Grier, member Of the committee, and
a lawyer named r. ;. Cottman read resolutions
| providing for the appointment OF counsel who
| was to have 2H per cent. OF all money recovered
| They we're shouted down, and Mr. fitch, who
| asked nothing, was sustained.
Edward MallOn, VINO has over 5000 In the
| bank, j. Cahill. Charles Cadmus, Eugene Ward
| Jonn Carney and Martin Cobb were added TO
| the committee.
Mr. Cottman said thar Peter Cooper and wm
Cullen Bryant had eacn declined TO act as re-
| Ceiver