New-York tribune., 1876-05-04
LOCAL MISCELLANY.
TIE LoANERS BANK CLOSED.

The LOANEhS DAMN OLOCr]b.
pIssENsIoNs IN THE BOARD OF DIREcroRs-1ohN
II. HUBBARD, JH., APPOINTED RECEl'Lh-DS-
pOsITORs TO BE PAID IN FULL.
Much comment was caused down town yes
terda by the formal announcement that the LoaneiS
Rank of No 90 Nassat had closed it's doors and gone
into the hands Of receiver This institution was one OF
the relies OF the old Tweed Ring, having been ncOrpo
rated while that combination In power Extraofu-
nary privileges conferred upon 1t, ana l's spec
charter enabled to charge cent or more MONTH
AMI TO lend its money on personal properly OF
ALI sorts II was practically an incorporated
pawnbrokerage concern with all the usurious
power Of a pawnbrOker. II was organized WIN
capital OF $50OOO0 Of which 100000 was pald IN III
took such deposits offered, but as IL was not
of the Clearing house. and was not Instructed 10
transact purely banking business the deposits were III
significant and came principally from friends Some
time ago there change in the Board vi
Directors ard set of men obtained control Inc
President Dor Russell. was in the minority ana
dsscnsons IN the management. The new directors
wished to make loans 10 themselves, ana 10 COMMIT 'o
bank TO their interests IN other but Mr. Rssel oD
,eeted and finally with the aid of friendly creditor,
succeeded in having the bank placed in the hands OF
receiver.
The statement of the President ia as follows: The
Ioaners Bank has been established five years. ana has
done good business. II has liberal charter, when
allows IT TO make advances collateral security OF
them Robert COlwel, AHstOn Gerry, and William T. III
ton who formed the iron firm OF Gerry G1lton Colwe
at No. 6 Rector-st Mr.. ColweI ana Mr. Gerry "eIe
elected directors Winter while Mr. Titon became
member OF the Board only short time ago III was DC
lcyed they would be able add 81 100000 TO the re-
sources of the bank, which they took large amount
of stock although majority. When they failed In
this they endcavOred TO force Mr. Russell to make loans
for their benefit and they did secure some small loans
from the bank poor security Their demands increased
but the climax was reached when II was pIopOseu l"
make tine bank responsible for the personal liabilities OF
one Of the new directors The following s an extract
from the minutes of the Board meetings:
At meeting held April %. lS76-present Gerry S1-
We Gardner, Titon-Presdent IN the Ohar' MI
where's Certain certificates Of stock in the Eallston sra
SeId by in trust for Robert cowe hereby re
oys that in case & any o sO1 os f foT & @ said
gaslght stock tins bans T u s pecGns SSea onn aS n'
This resolution was carried, Mir Russell voting IN 'he
negative.
Mr. Russell said that this resolution passed because
Gerry Tton COlwell had become banhrups, and that
Mr. Colwen feared arrest the hands of Mr. Souten-
burgh whose gasight stock he retained. In order to
further their operations the mepDefS Oh aH & naa
equal to those Of the President The result was lt e
Affairs OF the Board became so dsorgSl@Uu @ @ t1c ~ % po
tracted discussion the C0lwe party agreed 20 retire ON
Tuesday afternoon but when they were called upon to
fulfill their promise they declined to 60 without
moneyei compensation. Henry Prentiss d 90. 9i
ssSSdyn issSea by who the hOS bank FER $1,000 acting
in accordance with the wiso- Of the President made
application for the appOin. tcit u receiver Judse
Gilbert of the Supreme Court aFp0Ni-l Johh T. huV-
bard r the firm OF Prentiss Co.. ItceYer ana ne
maified Immediately and took possession Mr. SeWCl
Of Sewel Pierce repres ntiug tie bank cOncfrCu I'D
the proceedings. Mr.. Russell SAT- that the pdnK haq
comparatively few deposits, all ~ which could be pau
OF Immediately IL probable that they would oc
TO-DAY Tomorrow. The bank woulu DC IcoTGdh-
fzed and resume business almost Immediately
Mr. Hubbard the receiver, was formerly STATE senator
from ChcuangO County, and IL now engaged III manu-
facturpe business In Brooklyn He said yesterday that
there had been great lack of harmony III tue Board OF
Directors since the members admDl last De
cember These members had been taken in under the
impression that they would n lble through friends 10
been prosperous since the pac of 1873 Their plans 20
accomplish this having failed, ttey created such dieor
gani7a ION in the Beard that the appointment 81 re-
ceyer became the only means OF ending ulc dlicuIly
Mr. Hubbard said tnat he had not yet examined the
books of the bank he had received assurbocs
which he trusted that would be able TO pay ali deos-
itors in full and leave dividend ON tie stock -
Efforts were made to MessIs. Gerry, Tnton COl-
we'll but their place Of business deserted and the
furniture had been removed. -
The gas stock which has been the sutc OF remark is
claimed by j. A. stOutenburgh OF the DreXel BmldinS
Wallst lie states that the stock - en- to Robert
Colwe to guarantee for 5000 zen these notes
were paid COlwe would not or could not give up the
stock as he had pledged II. Mr. SOu uienburgh then
Threatened arrest avoid Imprisonment that
the resolution noticed above was passed.
The closing II the doors OF the BANK hid no ehect III
Wals limited sphere OF Its operations dcpriNlnS
of any influence in legitimate business channels There
was crowd at the door, and comparatively few people
knew that 1t had suspended.