The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-04-25
HOW ONE BANK WAS RUINED
THE ROTTEv CONCERN MIR. ELS WIS
RELUCTANT TO WIND JP.
Experts on the stand-A slight Discrepancy
Investing In Insecurities Trustees Helping
The 900 for Kefre shn,ent-.

Themselves SIS, 900 for Kefres hn,ent-.
The Senate Banking Committee yesterday
resumed the investigation Of tho charges
against Superintendent Ellis. The first witness
was James VI. Jackson. who testified that he
had been connected with the Lorllard estate for
twenty-five years. and was familiar with the
value of real estate. In September. 1874. the
value Of the Mechanics and Traders Savings
Bank building. in the Bowcry, was. in his judg-
ment. $4,000.
Judge McKeon asked the witness what the
market value Of the property was at the time Of
the recent sale ut auction Mr.. Chapman OBJ
iectcd TO any testimony IA to the value Of prop
crty now insisting that the evidence should be
confined to the year 1874. The committee sus-
tanned the objection.
Mr.. Jackson said he was in the habit Of an
praising property for the purpose Of making
loans upon it..
you don't appraise it very high, them" said
Mr.. Chapman.
81 make II fair arprai,cmcnt for u safe loan Mt
six per cent"
" Do you loan at six per cent?" asked Mr.. Nc
Kgon.
." Yes, when the security is gilt-edged"
As Mr. Jackson was leaving the room, he
turned. ,waggcd his head az judge Mrkeon, and
said! haye an Application from your bank
for Il loan Of s2j,0np."
/. i. Brllamy testified.
Asaerncy tor Mc'.r. Floyd AMI GREGORY two fthe rus
ue- and Information furnished hs them summon. aud
compliant setting forth the insolvency the bsnk aud
ami, INK 'nr The appointment receiver THIS pre-.
-'ni'a to Nj ihS r.rsoneliy. aew DAYS after called
h, aieuon"si oall. o. the enron, estnatcs of the
S.ntlcrn scutius' lie .ano e. N,w iork with me
TIE lnnN 10 the hand. of receiver. hut that hc would
max ag sN"mnaton and h.n icernin, what wa. he's,
10 ~ nr discovered atf i'hcliinE ALBANY not that
th. N'iorno, General condn but that hc wouldn't act
chiefly l to me sgdhstn ,.c9fues .noHcd him printed
/ the value of tnue securities large The hank :
nexre.s of & scta .'"'' was s-'f''o
Judge McKeon offered in evidence two sec
! tons OF the charter. showing that the invest
ments IN southern securities were not only un-
authorized. but in direct violation of the char
| tor This fl'i should have been patent 10 the
! Superintendent If he intended TO faithfully per-
Mr. Chapman objected to their introduction
a. entirely new matter not contained in the
original charges nor the Governors message.
/ The committee decided 10 admit So much of the
| ,iarter as pertains u the investments OF the
John b. Manning. stock broker. testified:
The July ami January houd. oi South Carolina werc
quoted 'n ~ st,"k ENrhnHe At H. lud the NON uniabg
scu,c. aud di not var, much day To- dav In DC.
,ge, ga at a.. ne '',n' Of 80 ~ - th' Issue ol
roid CONT al, nothing could De- rrahzei ucionr -7i
Nan,i I'm c,nt. on IT, dollar rhr rcnie..ec bond.
were quoted in the market at that time at -
John L. James. real estate broker testified:
al 5000. ~, worihin ocioi,f i-ii. a..ut slsn"
tn. minute book ol the bank was Introduced.
I hui Mr.. Chapman. attorney Tor SIR. Ellis. rug-
E'~t 4 that am ADJOURNMENT Poe bad. So tIat ho
d aunt MI. u 80 might - over the books together.
D IT." commute HTeurlluely adjourned until
/ Monday of next week.
Iul- muui. hlnS L. sad g. show that good
] d".l ~ money won't in salaries 70 trustees. Ii
T. dllrg ei that. from 1853 to 1876. Charles PIX
/ urrw sl2iln; stephen Cutter drew sjulj:
/ Alir"t /. tunklln game IN tor the hig -llc. of
/ s4iuji Henry e. / sl.r ct. all told. sj1 SIC. :
Jnu.. L.. nn. t7u'G: Charles Roberts
! $lu+jl. Alexander II. Shlrlt. tiuG3: William
/ '. H. Count. s~.7J6. Ina ". Gregory. s2.G1j:
/ DAVID .Ialpen. - i'3; Jnln"- Rn--. i2.2bj:
knn.rt VI Murray. : 400; - .ph"n Han. : .UuO. .
/ anil VIM. Floyd. $500. OF Mr.. Fcun'- share. about
/ $1,000 IT, ~ down for hs services as " wat h
man. Special COMMISSIONS" a-rvic,s rs
| hap- the most r'markahle entry in this remark
| ahi" minut" book Is an Hggr, gate charge Of
| ON, r $1,000 for " refreshments.
Mr. William J. Best. the receiver Of the bank
In 1867 the hank held 81 400 600 in United
| Stat bonds. ", ~ NJ the other securities were
also rrhlily convertible lutDrash. At that tune,
- Jnhu. .ry Ia-f. .fii iur several years prrNt-
uu~ 5. u iNi un Iu.t'l States securities A.
~" bnN"rum"nt~ % -tpp'Frrd their place WIS
ik 20 ~ untNuI liable securities. -l 'll rs bonds
Of ! gan. --''. Nulfr aud /. utI Carolina. ait
| Alabama. som" sl3u.uuD ~ IN $50 bonds w.r'.
l.u-ht through O. W. J.Slvn Co.,. friends Of
Afr"i !. t"nhltn. President so th" bank. The
purchases ot and through this nrm. aud the
7 loan nude - the Atlantic Mad Steamship
CON lluN were sufficient To- break the inst tn
tom. ~" Amount lost hy these transact tons eX-
ccel~ sJpuuuu.