The New York herald., 1876-02-10
CENTRAL PARK SAVINGS BANK.


MEETING OF THE DEPos1ToRs TO TAKE ACTION
FOR THE RECOVERY OF THEIR MoNEY-THE
TRUSTEES TO BE SUED FOR ALL MONEY DUE
TO DEPosIToRs
call was recently sent out by the Executive
Committee Of the depostors Of the suspended Central
Park Savings Bank for meeting of the trustees Of that
Institution well OF those who had at any time
been trustees or officers of the bank since It's organza
ton The object of the meeting was to ask
these gentlemen If they were willing among themselves
to make up a subscription TO pay the depositors the
money which they had lost by the collapse Of the bank
in November last The meeting held at the Astor
House. and Mr.. George J. Wood presided. Only three
OF the trustees, however, put in appearance
Messrs Thomas Gearty the President Of the bank, Mr.
John C. Cary, the Vice President, and Mr. Francis
Blessing none Of whom offered TO put down
their names for subscription. Mr. Gearty
through his counsel. stated that he willing TO do
what was fair and would pay his share OF the money
as trustee but did want TO be held responsible
for the whole amount He was also willing TO refund
any PROFITS he had made out Of the bank
officer contractor or otherwise provided he shown
what such profits The Executive COMMITTEES
then secret session TO adopt report 20 bo
presented at the public meeting Of the depositors,
which to be held in the evening at Breevoort Hall
Finy.fourth street, near Third avenue
EVENING MEETING
II.
presided and Mr.. Horatio F. Averll Secretary.
The report which had been adopted at the afternoon
meeting by the Executive Committee, presented
by Mr.. Wood and read by Mr.. Averl The
port which rather lengthy explained the particu
lars OF the organization OF the bank under Mr. Terence
Farrelly, and alter giving some less important de-
tails allude TO the which led 10 its
suspension In regard TO the real estate purchased by
the bank, and which, 1t is claimed, caused all the
trouble, the report substance says
Mr.. Gearty stated that he and Mr. Joseph Rodman
Inhn a. Cary al 4 thar of ~.
OF Trustees taken deed OF property Of Third
aud Forty eighth street. consisting OF three
lots Third avenue and one lot IN the Forty
eighth street. at cost Of $74, 500 the bank paying
SIC, 900 cash, and these gentlemen giving back Mr.
Backer, the grantor purchase money mortgages for
&64 500 The $64 500 mortgages divided up tha
property folowsS3O 500 on the lot corner Of Third
andForty street sl5 900 each the other
lots Third avenue and 81 900 the rear lot Of
Forty eighth street These gentlemen bought the real
estate, as the bank itself could only hold certain
amount Of such properly and desired 10 get the
corner lot or the banking house BY the sale OF one Of
the LOIS and by other means the mortgage ON the cor
ner lot was subsequently reduced TO $24 900 Mr..
Gearty claimed that the bank had met with losses
CURED Liabilities which resulted in loss follows
Cost Of charter 81 200 furniture fixtures and account
So 800 by robbery. $500 oss by raised check
ing President Ross administration So 900; fitting OF
No 724 Third avenue 81 900; loss past six
penses for clerk hire &C. in OF earnings about
81 500 year making So 0Oo the total losses being
S2l OOO Mr. Gearty therefore claimed that only about
$40 600 Of the depositors' money had any manner
gone into the new banking house and that the bank
had been nsovcnt for several years. and he attributed
the collapse OF the bank TO the failure OF the Third Ave
Savings Bank and consequent Unforeseen circum-
stances The mortgages as they now stood were
$24 500 ldrst) 10 Baker and S11 500 10 Gearty The
report then states that there are back interest and
unpaid the property which will make the en-
cumbrrnce upon II foot up in the neighborhood Of
$3s0oo The statement given to the committee by
the receiver, hr French was az Iows:AmouEt due
depostors, $40.SSs %; Backers mortgage. 424 500:
Gesrty's, 81. 500, other liabilities about $500 The
0 .oS s9 @ 6SsS psS
iacturers and Builders Bank, 500; unpaid
doubtful and worthless claims, s3,l7s; total sec ESQ.,
There would thus be deficiency even the basis Of
nominal assets OF $40 T3s 33 The committee further
report that they "are OF opinion that the Central Park
savings Bank has been nsOlvcnt from its
April 30 1867 down the Of its suspcn nson apd
the appointment OF receiver, the Both OF Novem-
Der, 1875 aud that all the trustees and officers who
have known Of and become familiar with Its en-
barrassments that they have from time TO time
invited other gentlemen OF and Of good social
and business standing IN the community accept the
position Of trustees without disclosing TO them tho
true condition OF the Affairs Of the bank and that
general rule when these gentlemen came 70 know or
Informed themselves actual state OF things thew
resigned, and ceased to attend the meetings OF the
Board OF Trustees although their designations In many
instances, Tor reasons which do not appear in tho
minutes, but which may easily be surmised were not
accepted and In several Instances were not even
acted upon. As late the 18th OF October
1915, an ofhcer, representing tho Bank Department
OF the State reported deficiency Of only 81 $40 o6
refusing TO let the bank unless this was made IN
and the trustees desired remove 10 the new bank
ing house this reported deficiency was made up and
snPlus suo"h Inc comnittee go on to state that
the reports made 10 the Bank Department fair
and honorable and that there could be no excuse for
the credtng Of interest every January and july In tho
nature or dividend from the earnings OF the bank a
proceeding which was wiliu deceit and fraud
The report was unanimously adopted. as was also
resolution appointing Mr. Averll an additional counsel
70 cooperate with the receiver and the counsel act
ing with him In sueng the trustees for all the money
now due the depositors A vote OF thanks was given
the Executive Committee, aud, amer some informal
an early day.