The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-12-24
A BANK PRESIDENT HEARD.
THE CASE OF THE GERMAN UF-
TOWN SAYINGS BiNK.
An Investiantion Made by seven 1rrustees-
MIR. Claussep's Effort to Snvs the Ba.k-
A TlmeIv SnRaealion for the Deposlt orr.

MIR. Claussep's Effort to Snvs the Bs.k--
A Timely Suggestion for the Depositers-
Mr.. Henry Claussen, late President q
the German Uptown Savings Bank, addressed
meeting OF deposltors, last night, In Tsrrsos
Garden. He said that the avermcnt in several
ne wspaper, to the effect that be had accused
Mr.. John l.. Crimmins, formerly a trustee, q
taking $4,000 OF the banks money, was utterly
unfounded. Mr.. Crmmlns was bonorabis
and conscientious man, who had done all in his
power for the depositors. When the Third Ave-
nue. Dank failed, early In october, there was Q
run upon the German Uptown.
Mr.. Schwartz, then President, suggested THAI
the bank avail Itself Of tho sixty day-rulo. and 10
was done. Nevertheless notices under tho sixty
day rule poured In, and the directors began 70
Inquire among themselves why the do ositors
were 80 anxious to obtain their money. They
concluded that ono OF the reasons was the
hnancial embarrassment OF the President, and 70
was decided that change Of officers was
desirable. Mr.. Claussen moved that n COM
mttee OF seven trustees be appointed
60 INVESTIGATE the condition OF the bank
MIR. Clausscn was on the committee. This
committee was divided into sub commit
tees, and on Messrs. Claussen and Ctimmins was
held by the bank. They nrst took the bonds OF
the city aud county Of New York, the bonds Of
Mestchester, aud the adjoining towns, and
dockod one per cent. from thoif previous valua-
ton. The next thing was to set value on sot--
90 Of Alabama bonds. Mr. schwartz told the
| had taken the bonds at Ie, aud that one persoa
| In New York city was ready 10 take them fof
real estate M A. cents. In the FfnIncier, stoch
perio heal, they were quoted at 35, and the sus-
| committee set them down at -.
1he next thine was to ascertain the value of
| sprinrport town bonds, the Interest on which
| d not been paid. Tue bonds had been issued
| town In aid OF railroad. They were sold and
taken w by savings institutions In New York -
esH. Soon after the issue the citizens Of sprias-
port quarielled with the railroad, voted to repu-
diate the bonds, and procured an Injunction en-
Joining the Institutions that held the bonds
| from transferring them. Litigation was begun,
and there was every prospect that the town
would be compelled to paw Tho bonds and
| mortgages Of tho bank were examined and vsr-
ned by subcommittee as correct. Two Of the
mortgages we're not to be found, and they were
said to be In the hands of counsel for foreclosure.
Mr. Claussen accepted the Presidency, and
| went TO work TO Increase the surplus by dmin-
| giant. Some OF the call loans were on securities
| Of a KIND which, though good, did not seem the
right kind for savings bank. Mr. Claussen Or
| also that mortgages he cal ed in enough 20 meet
the steady drafts on the bank. lie discovered
! that $1,000 OF South Carolina and $4,000 Of
| North Carolina bonds had been counted In the
| cash ts s. 800. Mr.. schwartz explained this by
| ssyiag that, not desiring TO sell the bonds at the
! low lue OF seven cents, anu wishing 10 eee
] them out of tue statement lie put them into the
cash account az s56oo. Mr.. Claus.en also touod
| .muns tne nnrtE"ges tw aiislacinry srcond
III rtgages. lie sent lie bonds to Wall street.
Z. the North Carolina 3 to 81, and the AlAbamas
| 10 Gems asked and sbid.
Mr.. Gu s.n at once lied a meeting ~ dirsc-
| tor. and ,Uld them that the previous statemen
| w not correct, that the bonds had been over
| valued. and that the d, hciency must be made
np nsi1te tue bank could 20 on, lie offered 70
| herd the lisi VIA SlOi Oo. and Mr. Cummin. fol-
| lowed with 400 .. MI Clau.s told the trustees
th't ne wCnld bot 60 before the Is nix Depart
| meDt 10 January and swear to a falsehood. A
| Cominlttee was ppointed To deternine wnat 70
do. Mr., Clau,sen handed to Adolf Lcvncer at
| torney for tho bank, assignments and othss
| papers to the amount OF $28,UC0 on MORTGAGES
| that the parties were re Idy to take up. Levin
ger failed to account for them. After q fsW
| u have converted this money TO my own use.
i am defauiter. am ut your mercy. You can
rum me u von wish to. But give mo i've or six
Mr.. Claussen consulted with other trustees,
and they decided to grant Levinger the time
asked for. Five or s'I days passed. and the
- December. On the Monday following about
tHOiO0 Of sirty-day notices would begin to fan
due. On Monday Nr. Claussen called meeting
| CT the trustees, aud they resolved to close the
| bank. Gen. Uni consented to act a, receiver.
| Nr. Claussen read his own estimate OF the liza
bilittes rnd assets ofthe nix latter Al low
tsI market rdte', ana excluding all doubtful
Liabilities $e55, 1911 assets Ss,S.557 Is; den-
| ciencY. Slil,7N.GB. lie would allow Sl7OOD more
fnr possible discoveries ~ further ,oss which he
| dld not oxpcct, and thht would make The led
| cheney about ~ per cent.
The receiver was willing TO allow nny COM
| miiteO OF d"positors to examine tine BOOKS Of
| the bank, and WAS also willing to step down and
| out Whenever tns dep0t itOis would agree upon
| a plan Tor REORGANIZATION. From Wednesday
| next Mr uhl would keep open the bank, and
| pay every deposition presenting book - per
| cent. Depositprs who had not sent in them
| books should do 50 ut once. and deposltors whs
| had, should call for their books. Mr.. Claussen
| added tnat tue bank was needed In the ward.
| and he advised reorganization by each depos.
| itor placing ~ or - per cent. TO "A delciency
fund to DO made up from future surplus.