The New York herald., 1876-03-09
THIRD AVENUE BANK.
Private History Of the COncern-The Case
Sent to the District Attorney.
DARLING AND GREEN HELD FOR TRIAL.

made by Mr.. Fitch for the prosecution and Messrs.
Sewell, Dittenhoefer wakeman for the defence.
Counsel for the defence held that evidence having
been given to the Court that the defendants had taken
an cath the charge OF perjury could not be upheld
The poins was also mado by Mr. wakeman that Mr..
Darling being osly secretary pro tenn. on March IA,
1871 and not secre;ry ad interim, as alleged in the
complaints. he could nor be regarded as one OF the
principal officers Of tho baek and could not'
therefore, be held guilty Of uerury' Ar'
Fitch argued that the failure OF the dS.caoants 10
meet the facts and figures presented by the
instead OF hiding behind the refuge that there was nc
law punish them should initiate against them in the
opinion of the Court They saw at to abuse Mr. Nc
Donald the able expert to whom was due the prosecu
ton of the accused and the other officers but they did
not dare to put on the stand their expert accountants
Although they were In COURT to disprove the figures
presented by Mr. Mcdonald.
THE DECISION
The Court then delivered the decision, which was
rollows:-
The complaint Of Henry Ahrens dePOorn the Third
Avenue Syngs Bank charges Green sx Tes
bank with having made on the l4th day Of March, 1871
Which lis SS s Rs ON %
h bSS morning Se o Ss r SaS
Of s6o6s s45 81 and tho liabilities the sum Of
alleges adeacisnsy q oyer $4,000
Sad suduient aud made for the purpose Of deceiyng the
Bank Superintendent, the deposjtors and thepublic.
This complaint has given she Court than ordinary
as the eputatons and perhaps the liberties of
aa hare Srs h in % r. %o the Of
the people s are to Dc n @ IN f'ss 70 &C
the people and who in most cases have no guarantee for the
ossg a Of their deposits save the honor and fo0y Of the
The for the defence went to show that the item
No of sI13127 56, shown by the evidence not
accidental coincidence the reason that In the report of
the item then standing the books the debit Of
account appeared ON the sworn statement as
crusd interest.
Seeoa-Tle difference due dpositor was have
teen prior to- anuary l, ISL aud well known TO all the
e nnuaT 1877 Ss a5y sG hR
should been added to the amount due depoors and
FowThe item Of real shown by the books OF
so This va. .a not .S.s ,cgt, show d..n.
They claim, further that both NJ Darling and Mr. Green
1871 accepted shown by the secretays minutes
committee, well auditor of the bank, perfectly
In the Of Mr. Mcdonald the report OF
February ISL was Introduced which contained the false
Of the bank when it was learned that the bank examin
ysSdraws aud the Substitution Of the report Of March IA
l IN which the iase set ten ne Of leash cash wSs W emitted &
savings Bank falsely and frauduenty kept
by bad nS RSo Mail sSsp
10 e fom the t nsovent IT.. een op AMI tha
Seencer X. Green and William Darling, the accused IN
tes I this Co cause se 70 qs e s
vas false and ireSdulent one and intend deeiys the
large, and they are, therefore, held to answer
THE CASE SENT DISTRICT ATTORNEY.
The defendants being already under $4,000 bail to
pers the will be to-day District At
torney, accompanied by the following letter from Judge
FouRrH DrsrRrcr PoLIcr couRr,
Fysevensa Se yasR ResT M.rsb TsiTs aEsage ,s7s
Hon B. X. PnELrs, District Attorney =,
tho Of The People against speree Green expresi
lie Third Avenue savings Bank charging them With hav.
Ss slSy fully sworn to false s3sspent es as 20 the condition
tendent at Albany on the l4th Of March, 1871.
10 those bank oca Who have with the de-
90 aona Ss & d n i In s SeroSy
ing their offence, respectfully call your attention to the
STOCK.
In 1868 and 1869 the Board OF Trustees of the bank
appointed committee, consisting of A. G. Dunn Daniel
Batss and William b. Bb1ins, 10 inquire regarding
loans by the bank on Atlantic Mail Steamship Com
S SsocH o os TeT repor TO 10 @ he
Court at the examination on Monday last IL appears
that $4,000 Of the foregoing amount was loaned to
c. Puiier y Co on stock OF the Atlantic MAIL Com
pany, $150000 TO A. W. Dimmock and $3.50 coo
to A. W. Josyn Co. During the time Of the invest
men. the stock fell from So to 2s, causing serious
loss to the bank. The lolns TO Dmmock and Joslyn
&c, in amount about equal to seventy per cent of
the par value Of the stock pledged therefor. No
authorization for the loans could be found the books
OF the bank The board the time QS6sl consisted of
sixteen members. Mr. Green president The
Board OF Trustees each examined by the
mittee on oath and II appeared that Mr Green and
ex.JudgeR chard Kelly were the only members who
were directly indirectly interested In the stock OF
Atlantic Mall Nine hundred shares OF the stock were
found standing TO MI Green's name and held By the
Atlantic '' Mail Company in 1861; tha, after
attended one meeting OF the board OF directors of that
company; that he proiessed to know on what the
S. 600 900 stock OF the company was based, but that IL
appeared he did not examine the books OF tho COM
pany while director TO assure himself that the rep
roseutations in reference thereto true. The
failure OF the Atlantic Company paid 81, co., and IN
addition thoreto $50 COO given loan to the
same company all Of which, 81 $50 oOo, was ost About
81 900 shares OF Pacific Mail stock were owned by the
Atlantic Mail Company, given as purchase considera-
ton for Atlantic Mail ,companys steamers
wall. Every dollar OF the money realized
by the Atlantic Mail Company from the
sale of Pacific Mail stock held by the bank security
for loans was paid the bank but all the trustees in
cuding Green and Kelly, denied to the committee hav-
ing received any OF this money The last loans by
the bank Atlantic Mail stock for ninety days,
aud we're strenuousy opposed by certain members OF
the board of trustees. The lean of Sl50,0O0 to A. W.
Dimmock effected such change in regard to other
loans OF the kind TO reduce the value at which said
stock as security was rated from so to 73-that is s73
were loaned for every slOO Oar vaac Of said
stock held by the bank. Tho attending COM
mittee reported favorably on makins loans on
on the assurance of Mr. Green to that effect In 1867
effort made by the bank to get back 81 600 600
full The joans upon Atlantic Mail stock made for
the purpose or e0ectng "a corner" in said stock The
stock was entirely held, the committee believed, by
the Atlantic Mall Ring'i of the bank
The conclusion of the Court that Mr. Green and
Judge Kelly were mainly TO blame for any of these
loans having been made. Mr. Green having kncwn
that the assets OF the Atlantic Mail Company
only $500 600, or about twenty per cent Of the
81 COO 600 issued stock, he should have substituted
approved securities for all loans Of the bank
10 THE EDITOR OF THE HsRALD:-
In your OF February &c the communication OF
"Depositor" submits series Of questions which now
propose 10 answer.
Firsi-Was not the receiver appointed by the Court
without any reference regard to the wishes Of the