The New York herald., 1876-10-12
SAVINGS BANKS.

THE GUARDIAN SAVINGS BANK-ExPLANAToRY
STATEMENT OF MR.. JOSEPH J. o'DoNoHUE.
To THE EDITOR OF THE HERALp:-
The publication OF a report made by Judge Bosworth
referee in proceeding relating to the affairs or tho
Guardian Swings Institution, and the comments
thereon by the HERALD seem TO call for an explanation
from me, Notwithstanding tho fact that the
yet finally decided nor tho ultimate judgment OF the
Court reached. l win give a plain statement OF my
connection with tho affairs Of the bank from first to
last
In 1870 far was held by the New ork Founding
Asylum, which yielded $4,000 ana over. Sub.
scrpons increased this sum to 500 900, and the
amount TO be used to build asylum was
tho treasurer OF the Fair Committee and held the
money. Tho committee decided to deposit 1t with tho
Guardian Savings Institution against my earnest pro-
test and resigned tho ofncc Of treasurer
qucncc. Tho money deposited with the Institu-
tion and remained there until the failure, although l
attempted in the spring OF lS71 as manager, 10 havc
II removed to tho Emigrant Industrial Savings Bank
The Guardian Savings Bank was under the Presi-
dcncy OF william N. Tweed and Walter Roche was It's
Vice President When tho bank failed in November,
1871, IL had deposit S562 GS6 10, and Of this sum
$94, 522 81, more than one-sxth belonged to tho
Founding Asylum. did not know that the
bank was insovcnt did havc anything
Mr.. J. Quinlan as its receiver The nrJt
in;imaton had Of these facts November II,
1871. when Mr.. Quin.an came to me and asked me to
become his surety, and then he informed me OF his
appointment. ! was alarmed concerning tho late of
the Founding Asylum Fund, and believing II to be
my duty 10 save it II possible. consented TO become
surety anu went with him to sign the bond. had
motive whatever in doing. except that Of securing
from loss the Founding Asylum. 1t occurred
then that II somo person in whom had confidence
was placed charge OF the ofHcc under the receiver
l could have thorough Knowledge Of Its affairs
and save the Founding Asylum better than otherwise
and therefore suggested to Mr. Quinian the employ
ment Mr. Riley ny brUthern law, in such
capacity. In this connection Mr. Qunan said that,
under circumstances, he would think II right
divide his lees receiver with mc. told him
! would not take cent nor have anything whatever
the salary OF Riley, did | know a long time
what that salary was. believe Mr.. Riley was a faith
labor OF tbe reccrversnp Mr.. Qainlan giving his
pcr onal attention. but he (keyl did control the
money. The rcsu t OF Mr. Rey's care AMI attention
10 has bcsn the creditors OF the bank
have received ninety live per cent Of their CLAIMS and
all creditors Of less than $500 have been paid
IN full. Of the amount due the Founding Asylum
ony s., ,364 O9 remain unpaid The entire amount of
Indebtedness oil the bank now unpaid <3s 1903 90 only
and there assets uncolleced sufficient TO pay TINS
sum Mr.. Quinlau seems to have recognized The TACT
that Riley perform the labor. for when he drew
his fess us receiver he gave half them amount
ing 10 81. 500, to Riley Quinlan was witness the
CASE and he testified that his counsel, Thomas q. r.
Buckley advised him he had right to draw such fees
and with the question whether hc had or not,
tainly mad nothing to do Mr. Riley handed to me
ST. OF this money TO keep for him. and he
drawn only portion OF the interest on the hc
told AT tho time that Quinan had given II TO him,
and supposed he was entitled 10 It, Another referee
IN another branch OF tho case, has decided, in
passing Quinlan's accounts that no tQuinlan)
titled 10 his lees and allows him $l3 0o0. Surely the
decision oil one referee Is OF equal authority 10 that OF
another At any rate, and whatever may be The law
upon that becr, never profIed by transaction
10 the extent OF dollar, nor was there ever any agree
me mt or understanding that should. As the matter
stands now, shall Lo.d the money subject 10 the
nual decision the Court To Qunan's right TO tho
fees Judge Bosworth says:-'It is diifcul, to per-
cove ON what principle Mr.. Riley can claim ihls
money, unlcss receiver be large dciautcr,
ana al tho same time be entitled in equity
and good conscience to full commissions -
Judge Bosworth had before MIN at the
he wrote thus the report OF Mr. A. Abbott,
a referee. to whom Quinlan's accounts had been
ierred Tor examination winch showed the balance
against Quinan 10 De si3 236 81 only alter charging
him with everything possible law TO charge him
WITH including interest He had also before him my
evidence tnat bad Quiniau's surety, offered pay
this sum TO the present receiver an! that the only
reason why It was not received by him that he
was restrained from so DONG by an injunction issued
IN June 1875. Whatever may be the law, 10 ordi-
nary mind 1t would seem clear that II Quinan. my
sell his surely, makes good TO the bank every dollar
OF It's assets The lees or commissions OF the receiver
are earned Permit to say in this connection that
am entirely able respond any call OF tho cred
10 tho extent OF my bond. aud that there
the slightest danger OF loss To them As TO the second
part o Judge Bosworth's report l have this 10
say
In the spring of 1879 the receiver made dividend
and required pay mcnt all the money he could
realize Among the assets were three mortgages upon
city properly, oi which was third and others
second mortgages. They were not duo AMI the
ce,ver trioi 10 sell them. The bcst price offered was
htcsn per cent discount He came to with
and asked to buy them al ten per cent and told
lac needed the money. He made an application TO the
Court Tor authority TO sell them at discount and
such authoriiy was granted took tho mortgages TO
my counsel, John 7. AcGowan. who had been the
counsel Tor the bank and asked him TO examine tho
titles He said he knew The titles 10 he good and he
tho assignments and transacted the busi-
ness Mr. McGowan Is now the person prosecuting
this against me- and is tho who procured the
publication Of the report OF Judge Boswortn, in the
HERALD, In fui the report Of proceeding in court
He did not toll me ought not to buy the mortgages,
nor did suppose WAS dong wrong Indecd, be-
lcved, and 40 now believe, saved tho fund hvo per
cent OF the morigages That my sole object at the
time
As TO the third part of Judge Bosworths report if
the referee had stated all the In evidence before
MIN no explanation would be needed. In 1859 Nr.
Qunlan purchased q store IN Willism street, ana !
loaned hln toward his purchase SIS, 600, iE three
sums was 10 have mortgage on the property. but
instead agreed that the tIt should be taken IN my
name as my sccury. In 1873 Quinlnp paid me my
money and conveyed TO him the property. Tho rel.
does not 'icel al liberty TO tobcuae' that had
any suspicion .'that III morcy was taken from tue
bank and yet he throws a doubt the good faith OF
the transaction. not only did not know where Tho
the bank. do know, though, that my security
Tor the debt was surrendered, which would
have been very unlikely had supposed the money
paid pufIoincd. IL seems 10 mo
lar fetch. to cast = shadow upon mo In this matter
when u was well kno~n and was IN violence That
Iar1