The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-16
FINANCIAL CROOK EDNESS.
THE MISWtNtGLH ENrOF THE BANK
or rHE SjITE or NEW Y0Rh.

/ The Dividends Wcgniar. hut Profits lrrcgu-
tar SijO,NGO Loaned on stock Of the
United states Attrition MIN COMPANY.
The directors Of the Bank of the state Of
! New York were In conference many hours ys,-
! terday, aud Bunk Ia uniner Meigs was In fre-
/ qIent telerra phia communication with Comp
trollcr II the Currency Knox rs 70 the DIM nj.
( tic of the embarrassed institution. II was
tumored IN W II street That the directors CON
/ templated making an assessment upon stock
/ holders sufficient to cover tho shortcomings
caused nv the bad Management
! The doors of the bank were opened at 10
o'clock, aud many anxious depositors crowded
In under the false impression that business had
been resumed. They were soon disibused Of
| this Idea, but we're at the same tiuo sOlaced by
| the Information that there was every probabu-
| itv that the bank would soon resume, and that
their deposits were safe, although not available
for a few days. Persons who made deposits on
the dav OF suspension were Informed that their
| money had been kept separate from the other
| funds, and had been deposited with tho Rank VI
Comneice Ia trust for the Bank Of the state Of
! Mr. Patrick. the Vice President. TO whom the
troubles OF the bank are attributed. sat ut his
| desk. smoked pl!cidlv, snd said he had no ex-
llanatiuns to make for the present. President
Duer said that tho deposits At the time Of tie
SUSPENSION were about - $4,000; Depostors to
/ the amount VI over sl.0DinO have signed
| agreement To allow their deposits to remain with
the bank temporarily, in order That the work u
| rtsumption may not be tnpeded. THIS wilt en-
ablc the bank to pay OF all debts aud resume
business by the reduction OF ITS clpitol (S2OOO,-
| O0l about one half. II Is not known what the
total shortages are, but " Is hcieyed that they
ATE less than $iCO0ON. should this prove to he
the fact. thu depusitur. and note holders viii he
paid in full. and the stockholders will receive
from 20 Ia IDper cent. ON their holdings. The
stock was held at 0j yesterday. but the highest
bid was 10. On MONDAY 1t sold at 100.
ENrLANATIoS NEEDED.
A fat cited Ia Wall street. MS proof thai there
has been deceit aud mismanagcmen IN the
years past the very years in which these trs-
mendous losses nave been mude-the instlutlon
has never failed to pay n sent ,nnua dividend II
four per cent. Friends Of the directors sny that
they supposed the securities IN the bank were
genuine, and that eight or ten per cent was
bcins made upon them and thus they agreed to
the declaration Of dividends. Bat on the other
hand II Is held that being practical ~ en- OF bust
ness. they should have looked into the character
OF the securities pledged. and satisfied Them
selves that they Wee good: That Thy ~ d. dld not
loaned on s000ou q the stock of tue United
States Attriuion Mill COMPANY. n corporation
incorporates themselves. ] he history OF this
company. IS well as that Of the New YORK
two years old. IA epshrouded IN mystery. Roth
have been managed with skill financially 10y
dealers. % Broad street They are young men.
and started on very Hight capital a few years
assured. anu It Is no wonder tnat thev wers
enabled eariyi their career to possess them
StINfN OF tit NNtf-Dn Aitftlni process LOT grind
ing flour, and start COMPANY
THE cOMpANY's FINANCIERISG.
Their hrst venture was Hight. the capital o. the
New YORK A,trti n Mn Company being only
Sltu.0n; Dut early In this year the tnited states
Atuition \ ill Coup nv Omitted was =. rted
with capital Of s2cdo.COO. one half OF The stock.
according to its secretary. was taken aud p.id
for Its operations were extensive, and more
money was needed. Ore PARTNER Il the firm Of
York Citv Attrition Nil Company. and
the other was President OF the United
S wat rea Ari,.on M SnSmp' cA, 10
need not he compounded. It WAS necessary
thAt the collateral should be pledged by third
party. Thus ShhO.Gn OF a stock WI ich was ufI.
known except To the few who had invested In
u, or had received shares for services rem
dered. were pledged for sV1co IN grcenbacks
with the bank OF tive state of New York. MIR.
Patrick, Nlce-President OF the bank. owned l0o
shares OF the stock OF this company. Where
this money went nobody outside uf the CONF
pany knows. There may have been works to
build. or machinery to manufacture, but us far
As can be learned there was nothing To be done
requiring So large II sum- Stiil. within few
money. and obtained ZOO on security when
was. IL ANYTHING, less valid !hsn the stock Of the
| United states Attrition Mil Company.
or Smith Giivan little can he learned.
Neither u the partners could be found at The
sscertsined that they had started business on a
very light capital; being young men and TIA,
from prominent bank official.
OTHER PEcULIARIrIEs or THE BANK.
Mr.. Patrick's check for S20,0)O. which was
rated ~ cash, instead Of hetng charged to his
own account, II only slight item ~ the many
things yet To be explained. The bills Of ladinC,
many Of them two ears old, on winch advances
were made, will command the attention Of tho
examiner. as will the $4,000 Of protested paper
which Is placed among the assets. or this S7O,-
OQ was signed b. Duncan. sherman Co.
Lite yesterday afternoon the directors nd
Journed and then IL was announced that the
Odd OH ,ers and directors had resigned, aud tnat
Il new board had been elected. Inc old officers
and directors were; George W. Duer, Poet
dent Richard Patrick. ice-President; Charles
| is. Van MNCk. Cashier. Directors. George w.
Dier, Richard Pstrick' Isaac h.. Reed. Lloyd
and A. Prouedt. with the exception OF the
Vice President, VINO managed the affairs Of the
nank, and VINO was implicitly trusted by his
fellow directors II Is claimed that none knew OF
toe irregularities. Tue new board elected was
as follows: August Belmont, President; Geo.
!. Islman. IL. q. Rolston, ID ID. Witners, ID. ID.
smith John X. Marshall, Lawrence Iurnure,
ADRIAN Iselln. and Henry Morgan. Mr.. Bel
long the Man ger Of the Farmers Loan
aud Trust C.'mpany. and I. LAWYER Of abil;
Loan aud Trust Company. and IS highly esteem-
60 ss a man q prSblty: MI; withefS e tue son
engaged in active business, out is very wealthy.
Joan X. marshall was in the dry gOods trade in
Gs .',y snd New ,Tiesnsi ana Is extensiy I
change plase mixer, and MIR Morgan is u tie
nrm Of Matthew Morgans Sons, one Of the
strongest banking houses Ia the city. Alto
eother the new board Is looked upon DIS a very
strong one, ana the prospects of resumption 10y
the bank are strengthened by us election. Under
the new 70 ime Mr.. Duer, the exPresident 10
| 70 he made cashier. Mr.. Pstrick retires
THE FUTURE or THE DASK.
II was said In Wall street Yesterday that the
deficiency in the accounts vas to be made up ~
assessing stock holders but this Mir. Duer said.
was not true. The cap,tsi will be reduced.
"ltis not good time 10 assess Stockholders"
said Mr. Duer.
Comptroller Of the Currency Knox has not as
yet taken sny action = ~ the appointment Of q
receiver, and II IL thought that the election OF
Yesterday, together with the guarantees which
are Forthcoming call, will induce MIN TO
allow the bank 10 resume business. Whether
there will be any Investigation into the career OF
| Vice President Patrick remains an open ques-
tiun. lie was once largely interested in the
| hard ware trade here and la California, and
shipped brand OF mails whirh were known
throughout the West rs Patrick's nails" lie
failed disastrouslv in this business, and went
into Wall street. For time he in hard luck,
but at length he olossomed out into fuli-blOw n
nnancer. Then he went into banking. He 10
probably nifty years OF age.
Fox Hunting in New Jersey.
The red fox started ny Joe Donahue's party
Tuesday Hack sly enough specdily