New-York tribune., 1876-08-10
4 BANK GROSSLY MTSMANAGED.

TR,7E CONDITION OF THE LOANERS BANK.
-,r STATEMENTS OF IFS PRESIDENT SHOWN TO BE
r1yTRUE-RrsULr OF THE INVESTIGATIONS OF
THE RECEIvER-LosSES OF STOCKHOLDERS AND
DBPOsIToRs.
l. F. Hubbard, jr., receiver of the Loaners'
p.r at No 20 Nass-St, has finished his Investigations
o the aairs OF the bank and prepared statement Tor
.nnmssion to the stockholders and deposltors. When
enc bonk failed on May ., Dorr RUSSELL tie President,
pe,tedly and emphatIoaly stated that the bank was
h,e ~ nay every dollar due its dcposors, and that the
olv motive for closing II to prevent number o
cupujOus directors from miSappropratins the funds
receiver Hubbard in his report states that the bank has
heen grossly if criminally, mismanaSec, and that 1t
IN rnt nav more than 25 cents the dollar, nor even
h, sn unless favorable sale Of the assets is effected
The money has been loaned IN the most reckless manner
mon worthless security For the purpose of showing
where the money the bank has gone. Mr. Hubbard mas
snared statement TO the effect that there are now III
tho bapk loans due ard unpaid follows: 1871. S2l,-
,15. 1872 S790l4 IS; 1873 S69,40S 46; 1874, S3l'-
eao 50; 1875 81. .64i 62i 1876, S7G,255 S2-nakiug
~ agererate of S34g.3j9 54. OF the loans OF 1876
GO 600 are properly chaTgeable to sprevcus years
Among the persons who obtained these loaus arc the FOL
loving;
kellogg H. Loois, JAN 3, 1871, 81 900 the security
a. Sn,ent: Aston McNar & CO.. Feb 49, ISL, SlooOo,
seeHrity warehouse receipts in Judgments A. W lhMet
MAJ ISL IL .OOO, security note partly laid haance
on Sui: Harlon Evans May IL, 500, collateral pro
tested notes. W. T. Jay Co., Jn'y y Ep,bt ag% N, ins
IS 500 collateral, securities OF the MlMaGhte anu
Minnesota Railroad OF no value Bnsht q Dpnni1onii Dpnnii
SIo0O collateial, Milwaukee and Minnesota RalFOal
sccJritieS; A. s. Bright 500, securities, 100 snIfs
Rocky Bar Gold and silver Mining ComlSny an4 i ioo
shares az the New York and Ohia Gold and silver nnS
COMPANY; G. c. Patterson had the largest loan haSns
obtained $50 1l6 10 in September 1872, on stock OF ES
Yentsrs 30" propeptY ana some coal Lands Of no
value; J. T. Richards. iron Nov 3 10 39, ~ - -
UIfi
Csoric Engine Company c. ii. Williamson, president
and the Globe Printing Company 9hiar a ioan ., -" 70
z 1873 obtained - OG9 90 on ms note ard oiiey o c
insurance which mas snce lapsed; Nj r B,mS % Mn6 was va
obtained II ,614 his note ior $500 sock OF lhe bd
falo, CORY aud Pittsburgh H4ii!9ad r CGars&5 ~ - m
81 600 bonds of the Memphis ard ~ ftSn ltarot %oo
oI M v9iue: : H. Kneeand obtained Sl3,3Os - hut re-
paid S2.Gl7; Thomas j. trcdmcr, Juy T. go, re re
Conftenay ob.aigei Sl3.OOO ON l5OO0O Of the worth
less bonds Of the NevNOrk, West STORE ana OA.c'St
Rsilroad railroad wrich eXiss only on ra!~r; IL
s. S4s the New-York and HcmDs'edd Railioau Ooh
pany $500, all in worthless securities.
The capital stock of the bank was S5OooOO OF WHICH
100000 or 40 per cent was paid in. II is now worse
than worthless The president, Dorr Russell only owned
20 shares worth about $500. Other and larger stock
holders and their losses are as follows;
George T. Dorian, 1,l5S shares, loss $t6,3eo; william
35i Sh9Tes loss $1,000; John butler. go shares los
SO 600: George C. JEFFREY, eco shares loss s. coo
FSnrIs Cream"r 900 shares loss $4,000; f. f Brown
$50 shares. loss $140Oo H. Bedrock q Co., lOo shares
loss $4,000
The receiver on Tuesday called meeting Of 'hc de-
pos,tors of the lnk to make statement OF its condition
and ascertain their wishes lie said that when he came
into the bank receiver he had obtained the Impression
from its president, DoT Russell, and also from Its
cashier that in the institution sufficient assets
10 pay not only the depOstOrs, but the stOekhodes O
the contrary when examine the books OF The
bank he found that the value Of the assets had been
greatly oyeresmated and it had suspended from
sheer exhaustion and not from disagreement in its
Board OF Directors stated az the time The books
showed that all the money received by the bank rom S
customers ioI htsrGs' % eI1 dn6 6i 5rind he sagc
period II paid out $ll, 600 interest on ueporlt-,
and its expenses amounted about $4,000
more In order to show how much tie bank needed
money. Mr. Hubbard stated that Russci TIC Pfsi
ON the l7th Of last AUri froin the bank diamonds
on which 500 had beel advanced, and procured from
gentleman MederlaDe loan Of $1,000 Or tne ae'
OF the bank. leaving The jewels a. security Iosns
lad been made by Mr. Russell for from two TO twenty
days in most instances, and IN the majority OF CASTS not
one cent OF interest or PRINCIPAL a Dee1 p@ M tI % IN M ~
were 1854 26 and fourdi,hs OF the items III the ~ o.
nominal assets were YorJiess IheFe was iiao iIs o.
"Oyerdres" due from banks and hakers, amounting III
the aggregate 10 S37G4 Al moi penny Of "hicn ss
good Another item, that Of real estate ItlSs'EIea .
claim Of 1881 ~ against premises in Ihirej-s' ana
If they $1,000 OF tins they wOaid be dong
we'll There was also a suspendcd account Of $1,000 10,
and a former teller in tho bank Is ciaimei 10 nave
been "A OefaulteT to that amount. lHc loans maze
by the bank in almost every case on worthless Sc
cuties, and in some cases several loans we're advanced
the securities. There * one loan Oi S33l 10.
which the books appears 10 have been gwen Ia G. g.
Patterson Derby Coal Company stock, winch claim, ~
the opinion OF the receiver, s not worth 30 cents. Mr.
Hubbard said that he ha desire TO shield DR. Russell
from ans responsibility but be understood that that gen
teman had accepted the Presidency cf the Derby Coal
Company hoping thereby 10 the loan advanced by
the bank large number Of ae securities Or the loans
made Dy the bank notes WHICH hd since gone -
protest Loans also made on life insurance y u
ces in the name tire wife tie life OF I9c husband
che making tire ASST Mmcnt which Of course was illegal
The bank had also loaned large of money, taxing q
own stock collateral. His whole Investigation OF The
books the bank showed that re institution was rotten
and that its affairs had been managed N crlinnallt
Negligent The whole amount OF loans collected
the beginning OF his rccciyershp only abOu
5000 The total amount Of the banke assets, real ad
nominal shown y the receivers report, II 1860 II
and its liabilities, S2i : .639 49,
j. G.. AudctsJu bank examiner said that be had IN
vestigated the affairs Of the bank. and in place found
thar 100000 Of Interest had been credited up and
charged TO bills receivable. lie asked Mr.. Russell II Et
had collected the interest and he replied IN The negative
wLercupon Anderson informed hin that the entry was
not a proper He said hc had never seen bank IN
such bad condition, ana ssld tnat the AFFAIRS or THO
institution wound up by receiver Lc doubted u
the dcpustofs wOuld receive - cents on TIE dollar
He EId received proposition from some pcfscns WL'
offered In for tie charter Of Tire bank 10 take
and pay the Geposit0s 80 cents on The dollar
committee composed Of the following gentlemen. JOIN
TenpletOn, Herbert Kattcli Vi. BOdgttt, John H. Gl
bert, ana Benjamin Estes appointed 10 make luf
thcr Inquiries IN the matter -Four OF them were ~ IN
bank yesterday occupied IN examining tie s-cuitcs
and they will undoubtedly recommend 10 tbe GepOstOrs
at their meeting to-day, 10 accept thc offer.
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