The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-06

Land aud stock specuiatious- What n saw
tnRs bank Loaned Money On.

tuks buuh hOhhtN O"s
Gen. Orville Il. Babcock stands indebted
to the Citizens Savings Bank Of New YORK
In the sum OF s9,16is2, that being the
amount for which Judgment was entered
AGAINST him in the Supreme Court, Dec. -,
1875, the same being deficiency Judgment
after the foreclosure OF mortgage given
to the bank to secure loin ~ 5000. The loan
was originally made by the bank on March 10,
1869, to Col. Asa Bird Gardner, who WIS ap
pointed ov Grant Judge Advoc tie NJ the Court
Of Inquiry, recently instituted to inquire into
Babcock's connection with the Whiskey Ring
but which was dissolved In consequence OF that
officers indictment by the Grand Jury. 1t was
made on property consisting Of four lots on the
north side of lSjth street, Kingsbridge road.
Eleven days after Col. q rlner put mortgage
on the property, he sold It to Gen Orville Il.
lBabcock, subject to the mortgage. There was
big bull movement In real estate at the northern
end OF the island, and prices were inflated so to
additionally secure the loan and prevent its be-
ing cal ed in, Dabcock mortgared soms land on
the south side OF the road and opposite that on
which the original mortgage was given. This
second mortgage was given Nav -, 1859.
The property was held by Gen. Babcock for
some time butthe Ring here had not yet learned,
or at all events had not been able to put In prac-
tice. the methods so successfully employed by
Gen. DaDoock to advance real estate in Washing
ton, aud all efforts to dispose OF 1t at pront
proved futile. Property In that locality began to
fall rs rapidy IA II had risen, and n resort was
had to the banking firm OF jay Cooke
Co. to recoup the fallen value OF the real
estate hv its use rs a collateral In the purchase
Of securities recommended by the hrm. The
prOperly finally reverted to Harris &. Fahne-
stock, partner OF JAY Cooke & co. A failure
To pay the interest on the mortgage opened the
eyes Of the cOn1iing s'vings bank. which had
lent about rs much money on the lots IA the
4 LAM ~.
| the mortgage was instituted against Ed. NJ
lewis as trustee Of the estate Of Jay Cooke a
Co. III BANKRUPTCY, with Gardner. BabcOck, and
man named Pnilip W. Holmes TO whom II was
| conveyed by B,hcocK two weeks before ITS
| passage into Jay Cooke q Co.'S hands, for CO.
defendants. Oct. Is, lSIj, Judge lawrence ap.
pointed Elliot Sanford referee to ascertain the
amount amour que, and tss next day the referee re,
| then sold and jay Cooke, Holmes, Babcock, and
Gardner all Ealing a. gs to p the balance due,
that extent was entered against them all.
zen. Horace Porter. also a Secretary ol Grams,
| Com pany, and holder of other offices, singul r
To state. aDpe irs to have hal precisely the saue
experience. both in the real estate and stock
markets, rs the distinguished measurer. and
with precisely the same PERSONS and at ex-
/ Asa Bird Gardner sold 10 Gen. Horace Porter
| four lots on the south side Of lSjtn street. This
proncrty had been mortraged for 5000 March
l a. I'D lodniEg he woncy. As in tue case OF the
sic Of the property on thu north side To- gen.
/ ing- bank until the Interest ceased to be regu-
/ Larry paid Porter, Ike BtDco X, JAILED to rea-
! lie any irIlt ON ms real estate Transaction.
aud, like Is tbcOrk, resorted To the firm % jay
/ Cooke Co. % make M flr the sh nkage. The
transfer OF the properly to he same mysterious
indtvidu u, dimes. july rs. iSs0, and IT. rever-
| SION 10 Fannestock. Of Jaw Choke Co., Aug. >,
/ lo.u, snow that the hauktng lrn were us unfOr-
tuuate in their investments for Gen. Porter IA
they were for the great medsurer Fen. II. -.
after jaw Cookies tiilure + hne.tnck conveyed
the property to Lewis trustee. ~ Babcock 8
case. Ihe savings bink, IL default OF payment
| If mt rest, fore losed, and the same referee
decided the amount due to be S6,3l5.37. The
property WAS srld Nov. Is, and deficiency JIdg-
! ment was entered Tor Si0jl.l7 against Garuner.
Porter, Holncs, and Fdhne.tock.
At the Ctizens'f SAVINGS Bank the Secretary.
! Mr.. Bunce, stated that the Transaction was AN
ordin1ry business one Hs regards the bank lend
INK Col Gardner the money on botn pieces OF
property. BIth were considered good loans at
the time. but the property has shrunk r good
deal In uue since. Until the interest ceased ia
be Dad after jay Cooke Co.'S failure nothing
was known about the transfer Of the property
Btrcuck, Porter and Gardner have all failed To
! settle the dr1 ency ~ vet. An Attcmnt Will be
| made TO collect the money from Jay Cooke's
/ estate IN bankruptcy nr-t ~ IN utter Of ( lrm
| and then tn other bonds nen will be tired IN
! succession. rn- bank bidg fair to lose the
| S5.'vieJ. tue judgment IN both suits.