The New York herald., 1875-12-15
How the Officers Of the German Uptown Saw
ingS Bank Invested Its Funds.
ARREST OF THE COUNSEL.
The Third Avenue Savings
Bank.
Meeting Of the Mutual Benefit Savings
Bank Depositors

As the receiver of the German Uptown Savings
Bank proceeds with his nation OF the books aud
securities of that institution new developments show
ing the utter reckessness not to harsher phrase
with which the former President, Mr.. Christian
Schwartz and the other officers of the bank admins
its affairs constantly being brought to light
The latest OF these show that the existing condition OF
affairs far than has hitherto been anticipated
In fact the chances OF the depositors receiving
than sixty cents the dollar at the day by
day essening The deficiency supposed to exist at the
time of the Suspension of the bank $40 00o This
has since been found TO be greatly less than the
actual deficiency
The former President of tho bank, Mr. Schwartz, in
addition to
MAKING LOANS PERSONAL FRIENDS
questionable securities has also made loans to the
Empire Laundry Company, which has long been in
financial difficulties The manner, too in which these
mortgages made also bears somewhat OF a suspi-
cious appearance. In the first place first mort
cages were made by the Empire Laundry Company for
$40 000 Afterward this company desired to obtain q
further loan by way Of second mortgage, but
able to effect the loan from any outside parties. Mr..
Schwartz then let them have $4,000 in
addition to the $4,000, taking two sec
ond mortgages security. That the bank
will realize these amounts the mortgages should be
forecoscd is considered very doubtful 1t is also SAID
that q check for $5, 600 found in the drawer,
charged cash, which is utterly worthless. This
check purported TO be the result sale OF North and
South Carolina bonds. There also among the
rites $25, 900 of bonds of the town Of Sprngport.
Cayuga county. These charged in the balance
sheets worth par There now ii is ascertain ed,
no quotations for these bonds, and what they would
fetch appears to know, for there is no market
for them
THE ARREST THE COUNSEL
TO the bank, Adolph Levinger, charge OF making
collections of mortgages and other satsfactions was
somewhat OF surprise yesterday for hitherto Mr..
Levinger had been looked upon Of probity
IL appears from the facts brought out that Mr.
Levnger intrustcd by the bank with the fore
closure of certain mortgages to the amount OF $3S 1885,
From time 10 time he was applied to for settlement
but always responded that the still in tga.
ton. by some other pretence excused himself from
handing over the sums due the bank The President,
Mr.. Claussen, and Vice President Cummins at
last began 10 get weared of the repeated ex-
cuses made by Levinger and to inquire among
the mortgages as to whether they had satisfied their
obligations or not 1t was found they had Applica-
ton again made to Levnger for settlement, when
he admitted to the receiver and to Messrs Caussen
and Cummins that he had received moneys amounting
the already stated and had been obliged to
raise S25, 600 and hand that to the
cever; but day after day passed and Levnger failed to
pay up No other course being left open order for
his obtained from Judge Donohue, on
Monday night in action brought by the receiver,
Mr. Uhl based upon his affidavit and that of Mr. Claus
The bail was fixed at $45, 900. Yesterday
ing Levinger arrested by Major Quincy, of the
Order of Arrest Department of the Sherins Office and
taken to his Office where he later gave bail IN the
required.
LEvrNGER REFUSED
to make any statement or explanation to the HERALD
reporter AFTER his arrest, saying that he wanted
await developments before doing he had already
been threatened with criminal proceedings Mr. Adolph
Levnger is member of the firm of Levinger 4 Co.,
Guggenheimer, lawyers, of No 2el Broadway and No
906 Third avenue.