The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-05-02
WHAT MIR. ELLIS SAYS.
Gov. Rebinson's Charitable View OF tho Bank
superintendent Csse.

Mr. Dc Witt C. Ellis, Superintendent OF
Banking testified before the Senate Committee
estertay TINT the balance sheet purporting to
have been made out by Mr.. Pratt. the book
keeper Of the Mechanics and Traders Bank.
showing n deficit of 1901 900 was not made out
by Pratt. but by Mr.. Best the receiver. With ro-
gard 10 the deficiency of tlsi 900. sworn TO by
Messre Floyd and Gregory. Mr.. Ellis said that
in making out their report they left out $1,000
OF assets He denied that he had ever admitted
20 other Mr.. Floyd or Mr. Gregory that their
report was correct. He said From the time
mot Messrs Floyd and Gregory in October, 1874.
until | closed the bank in 1876. | never had com
munication with them. when thcya In their
aldavts that they had frcduently, commune
Gated with me. they sworc falsely. ! never re-
,ccivcd word OF complaint from any one rolat-
ing to the bank after the examination made IN
the fall Of 1874. The statement made IN the
charges. that made any ADMISSIONS To- MI brl-
1ainy after my examination ot the bank as Ia ltS
Insolvency. is untrue de not wish TO I've I'M
dcrstood as lmputng any wrong motives To nc
Governor. He has simply been deceived 10y me
ments made by the bank in Southern securities
were made before came into office
Mr.. Ellis presumed the investments wcrc
made in compliance with the provision OF the
law TINT authorizes savings banks To invest IN
.ecuritie- Of any State when their market value
Is ut or above par. The minutes ~ the bank
show that these securities were bought mt Il
price below par. He said further; | went to
which ! understood had been given in cor.
rcspondcncr between the Bank Department and
his Office ON this subject | found thnt all the
correspondence in the Attorney Generals office
from January 1863. to 1872. had been made
away with"
Mr. Inis further avcrred that in estimating
the value oi the securities. he simply made
what he considered a fair and conservative
estimate and that In concluding his cNamnn
tion H. thought that the interests Of the public
would not b, lcppurdi1ed 10y the banks cOnunu-
ing a. do business.
Mr Ellis lawyer read letters showing that
The bank appointed committee To- consider
Southern securities ana the mnkln., good OF tho
drhci, NY Of s2lHsl. Subsequently the Pros
dent and the Wee President went t. Albany and
presented tu MI Ellis evidence to prove that
the appreciation Of the hanks securities had
By the II of January. 1915. created an actual
surplus 81 over 5000. From that time unit
al" bank was closed up. said MIR Fills.
it, condition The policy of the Departing MT
has been not to force BANK INTO bankruptcy
WHORE there j. any reasonable prospect Of lis
recovering
In nv interview with Gov Robinson the
Governor said that he would eNonerate me from
criminal intent. hut he thought WAS guilty Of
culpahlc neglect II he had been IN my i,lac" he
would have closed that hank. never inquire,
when they purchased the simO0O Of Southcn
scout tiles. Nearly every bank IN thu state re-
ports southern bonds d- rart Of it, securities
II has not been my practice To- inquire wh"f
th"sr securities were purchased or what WA
IHid forihcn"
=" IL .thcr words Mr. McKoon commented
i la not been YOUR practice e. find out h'
Official west lgnt on whether The law guvrrninl
the il,r-tm ~, Of banks has been compile,
will cT NiOlHf"d.