The New York herald., 1876-03-16
THE SUSPENDED BANK.
A NEW PRESIDENT AND BOARD OF DIRECTORS
ELECTED YEsTERDAY-PnEPARATIo FOR A

A NEW PRESIDENT AND BOARD OF DIRECTORS
ELEcrED YEsTERDAY-PnEPARATIoE FoR
VOLUNTARY LIQUIDATION
The excitement caused by tho forced suspension OF
the Bank OF the State OF New York subsded almost
suddenly as originated But the suspension continues
TO be the chief topic in financial circles The banks
doors were open all day yesterday, food OF visit
interested in and In its disposition and
management Of their interest poured through
them until after business hours. The Comptroller of
the Currency has taken any decided action in the
premises; so, for the present. say just how
afairs stand. Al least important event trans
pired yesterday, however This the resignation
ofthc old Board OF Directors and the election Of
Board 10 oil their places. Mr. August Belmont has
been made President in place OF Mr. Duer and his
cates arc all we'll and iavoraby known IN moneyed
circles. The efforts OF the management Will be
bank on giving guarantee TO Comptroller Knox to
properly administer its concerns. This will probably
bo Effected II permission granted by Mr Knox, by
reduction OF the capital The bank officers in
telegraphic communication with the Comptroller OF the
Currency during the day, and understood that he
has agreed to give them another day effect thoir
arrangements ior voluntary liquidation. They have
also, IL is understood tecgraphcd friends Wash
ngton to interest themselves in getting Comptroller
Knox not to appoint a receiver No statement
would be made yesterday respecting the actual
condition OF the banks affairs by any OF its officers
beyond tho general assertion that the reports the
losses in the papers Of this morning were exaggerated
The writer called upon vco President Patrick and
asked whether he desired make any statement by
way OF personal explanation He said hc had state.
ment TO make. 1t was suggested that good deal OF
ccnsurc would be directed against him II the reports
already circulated were not explained He replied that
he did not caro- Mr. Patrick remained the bank all
day but did not to be active participant the
deliberations regarding the future conduct the banks
concerns. The only explanation that he gave at all
during the day that the reports OF his advances
were exaggerated The bank II is understood has on
hand grcenbacks to the amount OF about 81 900 000
Its deposits must be upward OF So 500 900. Persons
representing ST. Ooo 900 of this sum have agreed the
bank officers say, should the bank resume TO allow
their
DEPOSITS TO REMAIN UNTOUCHED
for month or two. Signatures are beng OBTAINED
from other depositors also to agreement to the
same effect Should the bank dcsrc resume the
same capital as heretofore the stockholders would be
CURED 10 up 10 the tune OF at least 5000 900 II
considered wise, however, TO call upon them for any
amount SO that II they do resume IL Will probably be
with reduced capital
Efforts made to SEQ Mr. Smith, OF the firm OF
Smith & Glrvan, but could DO found ut his
once, No 20 Broad street. at time during the day
1t was thought he might explain / manner tho
reported large loans to his firm, but he inn
for any such explanation.
The directors met in the bank at three O'Clock in the
afternoon, but ther deliberations were kept private.
Alter the meeting ex-Prcsidcht Duer gave the
the following list Of officers August Belmont prcs-
denti g. = Talman, X, g. lsalson, d. b. Wthers d.
ID. smith, John r. Marshall Lawrence Turnure, Adrian
lsclin and Henry Morgan, directors yr Talman Is q
lawyer by profession and Tor number Of years has
been interested in the Farmers Loan ami Trust Com
pany. Mr. Ralston is the president Of this company.
MT Marshall Is gentleman OF large means, and has
been engaged in the dry goods business both here and
in New Orleans. Mr. Turnurc Is aud has been
years partner OF Dir. Moses Taylor Mr. Iseln
the banking business In Wall street Mr. withcrs has
not been OF late actively engaged IN bu mess; he
son OF ono of tho former presidents OF the bank.
Mr. Smith is president Of a marine insur-
ancs company. Mr. Morgan Is the senior mem
Der OF the nrm OF Henry Morgan & Sons. II is
generally allowed that under the new management the
banks AFFAIRS with the permission OF Comptroller
knox, will be so administered 10 give deposltors
and stockholders the fullest possible that the
condition OF the banks nnanccs will admit Tho
when 1t supposed definite reply their request TO
be permitted TO go into voluntary liquidation viii be
received On this, OF course, they'will Immediately
act II they are permitted TO proceed with their own
affairs, without the appointment OF receiver, they
will 80 into extended examination of the books Of
the bank, at the end OF which they will the de-
positors just how the affairs OF the bank stand. The
statement OF the banks losses, caused by improper
and injudicOus advances meanwhile remain uncontra-
diced One report which reached representative of
the HERALD the day Of the suspension, and which
printed In yesterdays paper, is corrected, however
This the Mr. Isaac H. Reed, one of the
directors had largely overdrawn his with the
the bank. The following letter is contradiction OF
that statemcnt:--
NATIONAL BAsx or I!s srAar or NEW YonK,
NEW YoRx, March Is, 1876 !
The hs ~ y9d. M espss % TS,nS S sS "s, H.
6. W. DUER. President.
1t was, however, asserted again yesterday that
OF the old directors, whose name has not yet
been mentioned. had largely ovcrdrawn his account
Mr.. Patrick in the opinion OF many Wall street
people Is deserving OF the greatest censuro Tor tho
dfncul,ics into which tho BANK has fallen. The d.
rcc,ors, too are blamed for not knowing more about
the actual condition OF the bank. by their
own statements II appears that they we're
entirely ignorant OF tho banks affairs. Most Of them
believed that he pursuing con-
scrvatvc courc, and having entire confidence the
officers, they do NOT seem 10 nave troubled themselves
TO lind out what was being done On the assumption
that Mr.. Mess had given 10 the Clearing House Com
milee the Information upon which IT'S unnary action
was based good many people found occasion to COM
plain also OF hts action. IL is stated that II bo bad
notified the officers Of the bank OF the dcdcit which he
discovered and had told thcm that they would be al
lowed certain make It good, or 10 reduce their
capital bank could have done as desired and con
tinucd It's routine business
several persons who made deposits on Tuesday,
short time before the suspension announced,
called at tho hank yesterday morning, and we're IN
formed that all deposits received Tuesday morning
had been kept separate from the otncr moneys OF the
bank and are deposit with the Bank OF Com
mercc, held lor the Bank OF The state OF New YORK.
As soon AS the question Of the rcceiversnp is settled
these deposors will receive checks the Bank OF
Commerce Tor those deposits
IL ls announced that drafts OF the Second National
Bank OF Dayton, OHIO the Bank OF tue state Of
New York VIII be paid al the Third National Bank.
A despatch from Tallant 4 Co.. bankers. OF San
Francisco states that the checks and transfers drawn
by them on the National Bank OF the state OF New
York will he paid by Drexel, Morgan 4 Co aud that
the urn will not be affected except by temporary
convcncnccS
While The belief universal that the management Of
the suspended bank has laid Itself open the scverest
censure President Duet ccnsured much less than Mr.
Patrick. II Is urged IN HIS defence that he IN III
health, and was not familiar he otherwise would
have been with Pairicks management But II l. not
forgotten that his and Patrick partners the
warehouse business at No AZ New street and that IS
reported that advances 10 considerable we're
made by the bank on warehouse receipts.
THE BAYONNE WATER SUPPLY,