New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-10-01
THE SAYINGS BANK FAILURE.
CAUSES AND EXTENT OF THE ENiBARRAsS-
MENTS.

THE BANK-TUIY OR SIXTY PER cFNT FOR DE-
POsITORs XPECED--CoNFmENCE IL OTHER
BANKS not DPMRED-yiEws OF BANK oFII-
GALS
The assets and property of the Third Avenue
Savings Bank placed in charge Of William :. Car
man, Receiver yesterday morning, under All order
granted by Justice A. NJ Osborn OF the supreme Court
at Albany. The doors not opened and the Receiver
was busy ali day preparing statement Of assets and
liabilities for the Information Of depo,ors. notice in
the words following posted ON the front doors :
Ban closed pursuant TO order OF the supreme Court
granted on an application OF the Attorney 40
the request Of the superintendent Of the Banking De-
partmcnt" Twelve fifteen persons stood around the
doors, attracted apparently by curiosity. Very few de-
posors were among them. and there excitement
or disturbance.
A reporter Of THE TRIBUNE was informed by the Re
ccyer that his statement Of tie BANKS affairs would he
ready Cor the public early week lie declined TO fur
ush any details It present hut stated that the officers
Of the bank obliged wind Up the business in ordrr
that all the dcposirors might b5 treated fairly The
bank said ncunbcred with real estate taken for
d.bt which il had been found impossible dispose of
without great sacrifice would have compelled
the trustees to sell tAcr available securities to pay the
dpuDsors demanding their money, and the result would
have been that the few w0ulu have been benehed az
the expense OF the many. The bank had made q good
fight in ST. and the trustees had given thcir individual
bonds 20 of 900 protect the Geposiiors
against the loss Occasoncd by The forced sale OF securities
during the run that year The bank bad not earned
much money this year, and could not have paid sajs
factory dividend the LIST of January Detirous OF
dealing fairly wiki al the depositors in the distribution
Of ,hc assets thc trustees had decided to 90 into hquda
,un and had given notice tie superintendent or the
Banking Department 0f their determination for his con-
siderltion ana approval After neutrality-suspicious. The
condition of the bank, the Superintendent mad
requested the ACKNOWLEDGEMENT 10 institute pro-
c,cdiurs for the appointment Of receiver.
Tho Court had granted the application, ana
the property OF the bank would be disposed OF for tie
benefit OF the dep0ors fast it could b" done with
safety to all The amount 10 be- realized would dc"nd
very much on circumstances and even an approximate
csr mate could not be- given.
The annual rcport the superintendent Of the Bank
ns Department for the yenr -7i made 70 .-e Lrss.
rul" March l. l@7i shows that the books an alti ~
the bank were examined April II. 1873, by George
w. Rcd. william T Adrcb and Isaac H. woo
man. Their report showed deficiency OF
assets % meet liabilities OF Sj735 OF. Among
the assets were mentioned Kansas Stale bonds
$4,000: Louisiana STATE bonds NevcD. 100000;
Georgia state bonds. $4,000; Alabama state bonds,
So. .G3 Virginia STATE bonds and coupons, $1,000; Dry
Dock. Last Broadway, and Battery Railroad bonds
a2J0J0 The mlike; value Of these however was con-
s.f.gaby lower than the par value Tie real estate
winch has been carried by the bank is stated IN thai
report to consist OF o. OF land at TaIyown valued
~ Sl5SGOo five houses on asst Forty
lofts No Fiuhave.. Eightyiith, and Ei-hty-sStL-sts
$50 600; house, East F0uysevcntl-st, T'ioo'' ana
house no. 81 Eas T1rty-Ein L-st. $4,000 tn Audubon
20 these the banBinclou-c and adjoining property huit
yi. the bank was prosicrog, and bad deposits exceed
ing -6. COOS 900. were valued 81 100000.
Il was stated yesterday bJ gentleman familiar WiIh
this property that the interest or The depoa'o'
10 delay The sale long possible J. forced ulon Tie
market AZ an early day 10 j. believed tcat is amount
realized viii not exceed onoAah tae Original cost 'i the
bank.
The OIL l statement show, that the bank incor-
porated in SOL and began business az roadway and
IIty-,ycouJst. Il has had ~ exceptional history It.
trouble 10 Is Wen known. originated u nsappolr.'-
ton Of funds years and continued chickering's ma
Engagement, among tie trustees. growing ont OF strife
for control 1t believed by those acquainted with tie
value of the securities OF the bank turned over to the
receiver that the present depression OF business and
decline IN values the depostor may expect 10 receive
from 30 to go cents the dollar for their claims
COMMENTS OF SAVINGS BANK OFFICERS G-Nf RALLY.
keporters Of THE TRIBUNE called yesterday upon the
officers Of the security Peoples German, and hanhai-
tan Savings Banks the Institution for the savings OF
Merchants Clerks, the Bank for Savings Beeckers,
and other institutions. and couyerscd with them a. to
this failure They unanimous in the opinion that
no W effects would follow beyond the local trouble and
distress OF tine dcpOsors the broken bank Tie con-
don Of the bank. Ii stated, had been known Tor
long time among bank officials, and measures have
been taken by other banks to avert any trouble
from the failure There excitement III the neigh
bOrho0d, and sound banking institutions sun LaH me
confidence Of the people 4hc tcUuE OF tAr trustees Oh
tie suspended bank IN saclihciHE setuiItte1 ' N,
that IL would have 10 have closed the doors al
resources in Che face OF such persistent opposition.
AT TIE East River savings Bank, at No CLaInDcrs5i
tine opinion expressed that tie suspension OF tho
Third Avenue Bank would have htue effect either
on other banks OF on pubic conhlect as It's Nelk oOn
dton had been well known for some time. lis olhccI5
were not prudent in selling securities az loss OF
100000 account Of the upon H. Dut they had IN
last River Bank and other establishments the pro
portion mortgages held by the banks 10 the amount OF
the deposits greater than Onetrd, and as these
va lS iI iId -, fIre"ioSa T,I-,iii, ,s vear and
this year. Of deposits has not scnsihy dnn-
dawn ont increased to any extent ana the bank has re
cciyed more ID deposits than has Dceu paid out
AZ the titZeus' savings Banks. at No. % BOwery, u
was believed that the suspension would not a1cc the
public or other banks The suspended bank was carry
Ing large amount OF real estate which produced htie
or nothing s thought tnat any other bank has
too mucu real hand. II is not probable that
any other banks viii la suspend, sine IN the case or
any being weak, tic trustees wA probably make up the
slight deficiency. II the Third Avenue Bank had been
gwen . year or two longer 1t would probably nave
Wcahercd the The effect OF the hard times has
been 10 greatly diminish The amounts drawn ont ~ TIE
Citizens, Bank That, although cos money mas Detu De
posted, tae bank has NOT fallen behind
AT the Bowery Savings Bank 90 No. 100 BOWery SINH
lar opinion expressed ID regard 10 me ssht effect u
the Suspension. The weakness ~ tue IhId Avenue
Bank well known Tor the officers had been com
PEELED al tine tune OF the long run 20 Sc her good secG-
rites and stocks had been too high since Ter them 70 pur
chase ones. Al the BOwcry Bank the rule Is 20 have
only % per cent Of the deposits n mortgages. The hard
umes have not O,cn iet lor hlde money '> h'r uIiHh
ont md hc amount Of the deposits mas been above the
average at the bank las refused 20 receive some
large amounts offered. 80
1o officers OF the Bond street Savings Bank nj No $50
Bowrry said that the effect OF the suspension had been
fulv discounted in advance for the Tud Avenue Bank
was lowu to Dee weak The trouble there was Toe and
wound be iclJ By other banks although some POSI-
t1is might become alarmed ana Ora" oH' Ie" 'i'l5-
aUfs lu suite OF tc IaTd times there has been large
increase u the deposits tAe Bond Street Bank above
the amounts withdrawn, the latter having greatly de-
creased. ,,.
Tle sixpeuny Savings Bank in Clinton Hall has felt no
m effects from the SUSPENSION ana iAe Odtcif uo not an
...-,- =. .-- =. :. ..-.... ~