The New York herald., 1876-10-26
LIABILITY OF STATE OFFICERS.
RECEIVER prsr's nr,onDrn 70 MR.. ELLIS,

republican superintendent OF the Bank Department,
ana answering all these questions the following cor
respondcucc has been received from the irst named
gentleman, who is hqaidating the affairs OF the Me-
chanics and Traders Savings Institution
My report to Governor rdcn upon the condition OF
this institution 1874 has been yariousy received.
portion OF the daily press profess To regard II as in
some way connected with the present campaign
rms, 10 say the least, IS grave mistake. Equally
erroneous is the idea that am in any sense inimi-
cal 10 the superintendent oil the Banking Department
On The contrary, my course has occn rather friendly
than otherwise For nearly two years past ne has
been assailed ny the press Tor alleged Encouragement
of the Import department. OF which he Is The head.
The irregularities which prostrated the bank Of
which am receiver have Lcen citcd again and again
as proofs OF his delinquency, but always IN such a
vague way as TO Afford no reasonable basis upon winch
he could meet aud If possible. refute the charges OF
his assaianis THIS opportunity have gwen him. and
Lo one regrets more sincercy than self that he has
not closed iarly with the issue 1t involves questions
OF too grea, moment 10 be disposed OF IN newspaper
article. Ii Is however, due TO the community that
should at once reply TO the official statement Of the
Supcrinte endcbt published to-day. For years past
banking has been SPECIAL study with me, and when
accepted the reccivershp OF this bank determined
thoroughly examine the details oi Its from
its beginning TO lis ignobe close rnis much owed
alike 10 the deposiors anI the pnplc, and that the
iient facts should be made known Hence my report
TO Governor fiden VINO, II Is now we'll understood,
has no power 10 remove or even suspend the supern
tendcnt without the consent OF the Senate Tins beng
50, Mr. Ellis owes II TO himself TO bring tho matter
before That body rs soon as convenes Uut should no
fal 10 do so shall Tho record which he has made in
his oiciu relations 10 TINS bank alone demands iu
investigation by authorities competent to decide the
questions at ISSUE between Inn myself 0f my
report 10 Governor Idcn shalt say but lew words.
The books OF the In luton iuy sustain the first
ond and third spccncatons-namely that II WAS hope
lessly lnsoycnt in the summer o 1874; that the
was reported 10 the Boara OF Trustees Jy n special
committee OF their own members, and that the trus-
tees failed to make good the deficiency or otherwise
protect The interests of the dcposorsn
The fourth nth and sixth specifications arc based
upon the altdavlts OF Mcssrs Floyd, Gregory and
Beamy, fact which seems 10 have escaped The notice
OF superintendent Ellis What do these gentlemen
affirm SIMPLY that the Mechanics and Traders saw
ings Institution was nsovcnt IN 1874 that they
formed Mr Ellis in september OF that year; that, at
their request, he came to New York and made per
sonal OF the AFFAIRS OF the institution that
he aiierward admitted them that he bank suU
stantialy' in the condition they reported and prom
sed that he would sake such action IN the premises
would protect the interests OF tue depositors.'
What did no uoY He wrote TO the President, Conkln
October l9 that ~ appears that the bank, Instead
OF having asurplus, as heretofore reportcd IS de-
ncient 10 the amount OF $24.9Sl 90' Referring. IN
the same letter to The character OF the assets
that the deficiency "Sould undoubtedly in the judg
ment Of some exceed tho amount named, " and himscf
likes ''thc dchceDc! at $50 O0o instead OF tho sum
ported TO me- Mr. Ellis hat In December fol
iowiog President Conkhn and vlce.P. csdcnt Ross
him at Albany and exAibitcd to him satisfactory
proofs that inc deficiency fund IN October had
been male good, and that there then surplus OF
over 81, 000" What the satisfactory proofs' con-
sisted OF tho Superintendent does not state. Tho
'proois may have appeared 10 him quite satisfactory
hui the deposlors and the public Will NOT probably
ndorse his opinion. One thing Is ccrtain-tnat not
dollar Of The deficiency was made good 0y the trustees
then or SINCE
Tho seventh and last specification in my letter TO
Governor den asserts that tho closing OF the instu
ton in lo5A would have prevented a large portion of
tae deficiency discovered by me. When the proper
timo comos shall make good my opinion in this re-
gard.
dent Conkiin dated October 49, 1874 was written,
not accurately stated by superintendent Eliis As
sell exam led the institution about October = This
is not denied by Mr.. Ellis Nor can hc
successfully show that no was rot goaded into
writing tho letter referred TO by the ihreats
OF hr Bcllamy This gentleman, answer
to inquiries, in1orms that October II he wrote
TO Mr. Ellis caing his attention TO the insolvency Of
the Institution, the proof Of which, by Floyd
and Gregory, ne lBrInmy) had laid before the Super
ntendent several weeks previously In this letter Mr.
Bellamy asked Mr.. Ellis to take immediate action,
closing NJ 10 lows :"They ;Floyd and Gregory wish
acd further, thai. should no other way OF immc
the real deficit be presented they would
not feel Justified in longer delaying as trustees
bring the true state OF The institution before the
and the public. ~
Mr.. Ellis replied promptly az follows
ALBANY. Oct 10, 1874.
DEAR sIR-iaur i7th inst is received and duly
considered have this day addressed official letter
Board Trustees Irespectly direct yolr
those you represent the same Tor vews in the
d. q. ELLIS. superintendent.
Read in the light oi this correspondence Mr. Ellis
will find few believers In his official denial OF my ae-
gallons las TO the knowledge possessed by the Super
iutendcut OF the conullion Of tho bank" IN 1874
,br svDer,n, sua.ut Of The Bank Depar,ment cb,sns
Information respecting saynss bank In only Two
waysone by The report OF ITS officers and the by
the report Of tho examiner Does tho superintendent
wish be Understood that he implicitly relies upon
Che reports tho officers and knOwl-
STAG, Tho examiner is appointed by and is respon.
sibIo the Superintendent. suppose ho should
sprc with The officers Of an insovent bank TO bolster
up, should not tho superintendent hc held responsible
for the acts OF his agent Mr. Ellis appears 10 think
otherwise, tor hc appeals 10 the report made TO him
by Examiner Reid March 81 1874 10 Justy his course
In not closing this bank in the fall tho same year
This report showed surplus Of $S2 33l 1s April I.
il could easily have been made several timos the
Schedule A. hereto annexed all Of the assets OF
the bank at tho date named In parallel columns
given the par vaue Cost maAc. value ana inc value
report OF Mr. Reid. The prices which form tho basis
my estimate were furnished me by two Of the prn-
cipal operators IN such sccuritieA comparison Of
the assets and liabilities given by Mr. Ellis and my.
self shows deficiency OF $136,623 80 In reaching
this result have taken the general LEDGER estimate
OF the amount dcpositors The real condition
OF the bank on March 81 1874 is shown by this short
table,
Schedule 81, 429, $50 Is
LIABILITIES.
Duo depostors (princpal). 81, ,525, ,430 A.
Due dcpositors untcresp
about. Jo,UUO w
Expenses from January
TO date, as hhown on
ledger. :......:.::.... 4,ss2 1885 ,3la Il
Deficiency March 81, 1874. ............ 1876, 623 SO
Add amount due dcpostors as shown by
.'dcacrs' ledgcrs'' In excess oi general
ledger, about. 20 600 90
Total deficiency. y..................... $2o6, ,623 SO
Examiner Reds next report is dated October b.
1874 When this examination made does not ap-
pear. but IL must have been previous TO october 2 on
that day Mr. Ellis began his famous personal in
vcstgation, which. according TO minute IN the diary
Trustee Gregory ended on tue afternoon OF the 5th
Mr. REID IN his October report admits "a deficiency
OF assets o $40 OIL 80" IL will be remembered that
hc reported surplus April OF $s2.33l 1s Adding
this sum TO tho alleged deficit October L. we get
Sll 402 0s loss o $ll2 402 0S in the short period
OF SIX months. Mcssrs Ellis and Reid arc welcome 10
any comfort they extract from such exhibit NJ
this The October report OF Mr. Reid calls atten-
tion to annual deficiency oil income, estimated by
him at sl4 19l 81 that is to say, the income OF the
bank Tell short Of s and ihc interest due TO
dcposors than $l4000; aud yet this Institution
allow ed 90 daily sinking the earnings tho
poor.
The new Savings Bank law into or pcratou in