The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-13
MIR. O,D0NoHUE,s REPLY.
Ms Bxpisnaticn Of the Management Of the
Guardian savings Inetitution.

Mr.. Joseph J. O'Donohue requests the
publication OF a reply to the report of ex j udae
Bosworth on the management Of the assets oil
the Guardian Swings Institution, and on the
advisabillty Of removing Mr.. Peter J. O'Dono-
hue from the receivership. He says:
The New York Founding ASYLUM was a de-
postor In the bank at the time OF its failure, OF
tyiy5s'. more than one-sixth OF all the deposits.
Mr.. ODonohue was concerned for the welfare
OF the asylum. and was anxious to have a re-
ce'Ver appointed who would do the best that
was possible for the depositors, and also TO have
some Trustworthy person put In charge of the
assets under the receiver, aud that that w q the
reason whv he became surety for Jeremi, an
Quinlan, OF whose appointment he had no ex-
peotatiOn aou no knO wIedge un n IL had been
made. md why he had bis brother. in-Iaw. MIR
Rtiley, aopo,nted clerk and bookgeeper under
Va'n ~, Su,n'sni az tne time, said he was will
commissions, but Mr.. O'Donohue saws ne de-
elined the offer peremptorlv. lie denies that
ne made any stir ulations aoout Rilsy's salary
but SAYS that Riley dIscharged his duties EN-,
GENTLY. and that It was largely due To him Tn AZ
the depostors aud creditors have received "a
per cent. Of their claims. that creditors OF Iess
than S2OJ have been paid In full, and that OF tue
amount due to the Funding Asylum loss tn IA
t1.5O0 Ia unpaid white there are s1iiicient assets
still UNSOLICITED to pay all the rest Of the banks
As to the $3.50 paid b. QuinIan to Riley out
Of tue assets OF the bank, Mir. D Donohue says
this money was half Of Q1inl MS fees, which
Mr. +. g. I. Buckley, and that he gave half OF
these fees to Riley, a. recognition OF his EN-.
Client services. ley took 5000 Of this amount
To Mr.. O'DOnohue. out IT was received by tho
lat er. not for himself, but on deposit for RI
ley. INA he holds II to his credit yet, subject to
As TO Quinlan's right TO any fees at all, now
that he has been proved defaulter. Mr.. ODon-
ohue says tn iL the defalcations amount to only
fl3.2sH, and that he mas offered and 10 ready to
pay TINS sum, and he suDpo,os that III all de-
nclencies are thus IN de good. Qunlan will be
cd N IA 1 iaQa fha aIna lhntl yh lA
had not been deiauter, aud Riley will be- en-
Titled to retain the other half Of those fees,
which Is the $6.5OO he received.
As to the three mortgages sold by Quinlan at
discount OF ten per cent, MIR. ODonohue says
the money to pay a dividend, and could not raise
II otherwise, anu could not dispose Of the mort
cages elsewhere except at discount OF 10 per
thus saving for the bank i've per cent. on those
.ecurties. Mr.. John T. MCGOWAN, who Is acting
for the creditors against Mr.. o Donohue, aud
throws discredit upon MIN on sccount OF this
Transaction, was the lawyer who made the
transfer Of the mortgages ~ Mr.. o'Donohue,
then did not say that O'Donohue ought not
either 70 buy the mortesses, or say anything
ABOUT there being itnpropriety In dong so.
As TO the intimation that Quinlan may have
paid his Indebtedness Of s1s,uOo to Mr.. O'Dono-
hue SAYS he did not know where the money
came from. aud does not believe IL came from
the bank that he h d mortgage security for the
deUt. which he relinquisned uDon receiving the
money, n thing he would not have been very
nkelv TO DO III he n ID supposed the money to
have been purloined. Quinlan was then doing
a rye business, and was believed to be worth
fBOOVO, and IL was therefore reasonable to SUI -
poee that he paid the debt with his own money.
Finally, Mr. ODOnobue iys that the cred tors
OF the bank are In no danger OF loss. and nave
no occasion to complain. The wnoie trouble
arises from Mr.. John II. McCiowan, who was
formerly bis counsel. This gentleman Is the
assignee Of Walter Roone's claim to any sur
plus that NAV remain Of the banks assets. Roche
conveyed certain private property OF his own to
the bank for the benefit OF the creditors OF the
bank afer.its failure he having been Vice Presi-
dent OF the Institution. This property NAV not
be entirely CONSUMED, and the Surplus may re-
vert to him. His claim 70 this surplus he has
assigned to Mr.. McGOwal, who now comes In
and wants all he can get for himself, and wishes
hie own receiver appointed IN place OF Peter j..
ODonohue.