The New York herald., 1875-12-07
ANOTHER BANK FAILURE.
Suspension of the German Uptown
Savings Bank.
a RECEIVER TO BE ASKED FOR.
Gross Mis- management of the Ex-
President.

The German Uptown Savings Bank yesterday sus-
pended and that viii turn out failure OF
: bad character there is unfortunately but little
room TO doubt This bank, u will be remem-
bered at the time Of the closing up OF the
Third Avenue Bank sustained slight run,
when the trustees avaed themselves Of the sixty days
law IN order 10 put a stop " the temporary panic
Prom that until the present the condition OF the
bank always been supposed to be first class and the
posting notice the doors yesterday morning,
10 the effect that deposits would be received
Or drafts cashcd until the Bank Superintendent had ex
amined the accounts was a most complete surprise to
every one IL, however, appears that the present
President, Mr.. Claussen, the brewer, who has but
recenty been elected with the trustees are endeavor
ing to secure the general good Of the depositors,
and have taken The honorable course left to them
under the circumstances in the case The whole blame
for this failure yet be ascertained is due
the late President Mr. Christian Schwartz who
questcd to
AND
on the 27th Of October last in favor OF Mr. Henry
Causen Jr The for the enforced retirement OF
Mr. Schwartz who had been President OF tho bank
since Incorporation salary or S. 500 per annum,
was the dissatisfaction or the trustees at the manner
which he had invested the funds OF the institution and
administered its affairs favor Of certain Of MS friends
in the shape OF call loans upon coateras that were ao
cepted by him in distinct
CONFIRMATION OF THE LAW.
II also considered in view OF the fact that Mr.
Schwartz, who is connected with the Empire Laundry
Company in financial difficulties that il would be
better for the interest Of all CONCERNED that he should
withdraw from any active participation IN
The tmo Of hts withdrawal from the
Presidency, and indeed at all time previously
The accounts were arranged to show apparent
OF assets liabilities Oi about $2l OO0 The
OF the securities we're misreprcsented, as will
be seen by the statement made by Mr.. Claursen, in
order 10 make up this false balance sheet
and Il not until late on Saturday night
that the true condition OF the bank was as
certained. 1t was then discovered that, Instead
Of surplus there and is actual and already de-
termned deficiency Of $40 900 The story Of the affair
however better told IN the language Of Mr. Claussen,
with whom the HERALD representative conversed yes
terday in tho presence Of Mr. John D. Crimmins and
another OF the justices who was elected some fourteen
days ago.
Mr.. Classen said:-''When ] was elected President
OF the opinion that the bank not only solvent
but possessed surplus The reason Mr. Schwartz, the
late President asked TO retire was because
he was known To 20 De IN nnanelai ,adoc,,nn mdoaole
should be cast at the bank on that account, and
besides ii thought a change Of officers would
strengthen the institution came into Office on the
9th Of October last the earnest solicitation OF the
trustees and agreed to perform the duties Incl
dental to the position for the sole benefit
airy. / did this because at the time
we're sustaining run, ana thought from the rep
resentations made to me that my SO doing would help
the bank which thought was TOO good and sound TO
be ruined by panic | stopped the fright of the de-
began shortly after this to institute
examination OF all tile securities held
by the bank. To my utter astonshment
it discovered that II not only nsolvent, but
that deficiency existed to nearly $4,000. ] found
where a certain amount had been constantly put down
In the periodical statements rendered the
trustees cash simply represented by
n lot OF Southern securities and call loans which had
been made bank stock and other Illegal securities.
Most of the call loans have compelled the borrowers
10 pay, but there standing OF 81, 0O0 made
by Schwartz 10 a friend OF his named Lewis Staal on
some bank stock which have been unable so far 10
call IN. found, too, that Alabama bonds OF
the par value Of $4,000 had been put down
as worth S32, 300 although they are not
worth more than ten cents on the doIlar--for
they are bonds but railroad bonds guaran-
teed py the State There is also, too ind, $50 900
worth OF South Carolina and $50 900 OF North Carolina
bonds put down at S. 600, worth now SO 400 The bapk
building and lot cost $206 900, put down at $50 000
but only valued at $3.50, 600, although we rent
the other portions for total or 5000 per
year. The lot so ny 100 feet but every knows
real estate has deprecated wonderfully Of late and
might be difficult 10 find purchaser at the lat
ter figure | wanted the trustees to club
together and make up the deficiency in cash,
not in bonds but they have, with two
three exceptions refused 10 do either. Our
liabilities are $3.50 900 and think pay eighty
eighty five cents the dollar. receiver will be
applied for In the Supreme Court tomorrow. The
Bank Superintendent has been applied refused
allow the bank go unless the deficiency should be
adao -