The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-26
RICHTER RESTS REPLY.


Receiver Best has written reply b.
Rank Superintendent Els in relation to the
Mechanics and Traders Savings Bunk in which.
after some preamble, he first sets forth that the
books fully sustain him In the assertions made
In his report to Gov. Tilden that the bank was
hopclessly insolvont in the summer Of 1874,
which fact was made known 10y committee Of
their own number 10 the trustees who failed to
make good the deficiency or otherwise pro-
tect the interests OF the depositors."
He next notes that Mr. Ellis. In letter
dated oct. ~. 1874, to the President OF the
bank. after he had made "personal examina-
ton - Of tie affairs Of the Institution, declares
the blnk to be substantially deficient to the
amount Of $4,000 and then quotes MIR. Eilis's
public 81 tcment that IN the following Deem
Der the President and Vic president met him
at Albany and "exhibited to him sitisf ctory
proofs that the deficiency found In October had
been made good and that there was then a sur
plus Of over 5000" TO this Mr. Rest tejoins
that whatever those" satisfactory proofs we're.
not a dollar Of the deficiency was m de goOI
by tne trustc then or since
NNXt follows copy OF "A lrtt,r from Ellis TO
/ I. u. II llamy Of BROOKLYN in which Els
! fathers nis announcement to the bank Pres-
dent - to personal aCuuHint anceship win tue
ahairs OF the bank, winch he now ohcially
d MES.
! Referring to E.liss statement that the report
OF the Examiner H. one ~ the two w.,vs the Su.
pcrintendrnt ~ the Banking u partment has
for obtaining tniormatto IA about a savinc- b nix.
Mr.. Best declares that he rcrort OF TX miner
Reid. dated March 81, lslL giving a surplus Of
SS.Sl Is was purely ncuuou..' which he
shows 10y the following figures tHNen from the
banks books: Assets, S2.4.aGsg.i5 liabilities.
due depo.i'ofs. principal, S2.5.j $50 o.; interest.
about sG,Nn; eXpeu-cs from i N. | to date,
as shown - general ledger. st,sS,ss. making a
to- - S2.Jj6,jl2 IL. The dcucieucy IA March
g. lsi4, whcn Mr. Reid fepor ed sutulus Of
ts2-l. Is. Is therefore SljhU.i 5j, To which must
D. al ed tue amount due dcpositurs as Sh iWn
by dealers ledgsrs In excess OF general ledger.
S.n an. the tot 4 deuctrncV acror .tuglv bstuc
s25,6.iJi In the iacs Il this MIR. h 1t asks
whether Mr.. Ellis wishes It to be under~to0 d
that ~ III cascs the Superintendent " implicitly
relies ON the report " the Tx miner.
Mr. Rods report u o {. 3. isi4 Is next quoted
"a admitting dencienc, OF ass IS Of $3lOig
Mr. hest here SAYS " II will be r memh.rcd "a {
he reported surplus on April Of <S'33l L..
Adding this sum To the alleged deficit October
l, We get Sil2p2Ns or loss OF Sll2.id2 IN Al thv
short neTioi If six niuntns. AcsSf-. EMS and
Reid are welcome To- any comfort they can K
tract from such ~ xhihit ~ TINS.
Speaking Of Reid ia al. October report calling
attention To AN " nnu deficiency OF inuOme"
estimated by HIM at Sli.lqlS2. Mr. b. II
tiuucs That Is TO saw tn Income Of the bank
to depoators more than tii.p0', ani ~ Ills
Institution was allowed 20 =, ON daily sinkius
the earnings Of the pour.'
The new SAVINGS bank law Is next quoted from
10 show thnt the Bank Superintendent iva
clothed with amllc power u close his iuetitu-
ton in NAV of last wear. IL not earlier" ana MIR
Best accuses Mf. Eli, 'of ling to exercise lis
authority. although "he knew that the banks
invsstments were largely contrary II its cnari or
and ~, that It's southern securities were daily
ueprecidtius IN value. that ITS expenses. iuclui-
M interest - dcpo.i ors. exceeded its income
Mr.. Els OF NOT only failing 10 do his dutv IN
regard to closing the bank. hut Of personally
preventing the placing Of the institution In the
hands of receiver wien an atteMpt was made
To do so ia the sprin. Of ls.i. The paper con-
cludes with the assertion OF Mr. Be.t's In, en- ion
to bring the matter before tue l.. sisI.tuTe ~ rs