The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1876-01-20
EXPENSIVE SA WINGS BANKS.

The industrious poor of this city are
beginning to learn that fine bank build
ings, finely furnished, are no evidences of
the solvency of those institutions which
erect and occupy them--they have found
to their sorrow that they themselves are
in many cases ultimately called upon to
pay these cost of these splendid banking
houses out of their own hard-earned
savings. A more fragrant case of this
kind than that of the Central Park Saw
ings Bank has not yet come under our
notice At meeting Of the depositors
of this institution held last week at Bre-
WORT Hall, Fifty-fOurth street, it was
stated by The Chairman, Mr.. John Bur-
lingson, that the President of the bank,
Thomas Gearty, bought the lot on the
norner of Forty-eighth street and Third
avenue some three years ago. The lot
declined in value, Mr.. Gearty was
many-sided man, besides being versedin
finance. He exercised with considerable
proft to himself, as will appear further
on, the profession of builder and con-
tractor. AS President of the bank, Mr..
Gearty thought he saw pressing neces-
sity for the erection of new bank
building, and he could think Of no better
locality than the lot on the northwest
corner of Forty-eighth street and Third
avenue which, by happy hazard, he
had purchased some three years before.
Mr.. Gearty was not the man to do things
by halves-the interests of the Central
Park Savings Pank were at stake. He
felt that he, and he alone, could do JUS
tice to that institution. The present
bank building was erected, and paid for
out of the funds of the bank. The Presi-
dent was the builder, while the Vice
President, John q. Carey, did the paint
ing and decorating.
A committee of five was appointed to
examine into the affairs OF the bank 1t
was, as usual, reported that vigorous ac-
tion would be taken. There is mort
gage of $4,000 on the bank building,
held, as it was averred, by the Presi-
dent; but if he is the thoughtful man we
take him for, he has long ago assigned
this mortgage to other parties, if he ever
held it in his own name at all. The
committee seemed to think that from the
present aspect of affairs the depositors
could scarcely expect to receive fifteen
per cent. ofthe moneythey had deposited,
Further comment on this particular
case is useless. The disgraCeful manage
ment which has been revealed by an ex-
animation into the affairs of most of our
broken savings banks will have at least
one good effect, if it make people in fu-
ture more careful as to where they de.
post their savings More especially re-
member that only old and well-estab-
lished savings banks. with clearly de-
fined surplus, are at all justified in the
erection of bank buildings, and that even
in these cases the total cost of the land
and buildings should be we'll inside of
the accumulated surplus. A savings
bank, or, for that matter, any other bank,
which borrows on mortgage for the pur-
pose of erecting banking building,
should be looked upon with suspicion.
1t is the province of bank to lend, not
to borrow. In these cases we are always
told that the bank is to be great gamer
by the operation that it can sub-let
more than enough to pay the interest on
the cost of the building and have its
banking-rooms free of rent besides. 1t
is not legitimate banking. We are of
opinion that no savings bank should by
law be permitted to acquire real estate
(except to secure previous debit, unuer
any pretense or for any purpose, to a
greater extent than 75 per cent. of its
clear and net surplus
The Third Avenue Savings Bank was
the pioneer of these institutions in that
quarter Of the town. When itcommenced
operations in the basement of the build
ing on the northwest corner of Twenty
fifth street and Third avenue many years
ago (it had previously existed under an