The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-05-09
BANK sUPERINTENDENT ELLIS.
The SENATE Committee InquIrinw Into the Gov
errors Charges.


ALBANY May s-The Banking Committee
of the Senate met this morning to begin exami-
nation into the new series Of charges preferred
by the Governor against Bank Superintendent
Ellis. All the members were present. with Mr..
Ellis who was attended by his counsel. the Hon.
o. W. Chapman.
Senator Coleman read the message Of the
Governor which includes the charges. To the
first one Of these charges. which referred to the
Bond Street Savings Bank, Mr. Ellis made the
usual formal denial. and its Investigation pro-
cecded.
John Mack. who presented the charges to the
Governor. was called upon to suhsiantiato
them. 1t appeared that he had none of his wit
nesscs with him. although he had been notified
a week ago to have them ready. In their alb
sence he asked TO put in proof documentary
evidence which proved TO consist only Of the
report Of Bank Examiner George w. Reid made
on March 20. 1875 Of the Bond Street Savings
Bank. which says that there was deficiency in
the income Of the bank that year Of ego. 100 duo
TO the small amount of rent received for its new
and old banking houses and the suspension of
interest ON certain town bonds then in litiga-
ton. The charge Of allowing the bank to make
investments not authorized 10y law WAS pro-
posed to be- shown by "A statement in the report
-
York and O-wego Midland Railroad on sos. 900
of New Jersey town bonds. which IL is shown bv
the report lai been bid IA at 80. AMI have since
appreciated To - and 90. the arrangement for
the payment " interest on them b.ing nearly
completed. The sane examination also shows
ne surplus IN the bank at that time 10 have been
flij73iOj.
The report was admitted by the committee.
and counsel Tor Mr. Ellis ACKNOWLEDGED that u
receiver had been appointed in 1876. A gene
raj discussion cn-ued upon the eNpcdiency II
putting IN evidence all the previous reports and
examinations of the bank. but the committee
declined 10 10 beyond the limits OF the charges
~ ST forth hy the Governor.
Mr.. Ellis testified that the bank had been
originally chartered under the name OF the
Atlantic savings Bank. chapter $50 OF the Laws
oi 1860 and changed some years ago 10 liz pres
ent name The securities held hy ID were ali
such ~ the law authorized. The 100000 trans
action in Midland Railroad stock WIS not AN
investment tut "a loan. The general law rcu-
was work Ing under It's own special charter.
The law II 1850 granting charter To- this bank
contains provision making II the duty of the
trustees to invest all sum- received by them
h"y0nd certain amount but this latter
amount m my no Kept IN derost or
der this clause they were entitled to
mako the loan. A. II turns out, il il one 81 the
worst provisions that could have been inserted
all kinds have interpreted it 70 permit them To
MAKE loans ms they chose. Tn" law Of 1875
prohibits such loans hereafter. but allows banks
10 hold such securities ns they then had. The
examlner's report Of 1913 shows "A surplus Of
Owl fltJ,ub' anu ut il-lllSl 'Ouil mol nave put
the bank into the hands Of Il receiver while il
was showing such surplus. II was "a large
surplus for bank OF the size. and the Attorney
General could have had no standing in court
upon an application for IA receiver.
NJ he afternoon session the charge relative
10 the Peoples Bank WIS taken up. 10 the effect
that Mr.. Ellis had been informed in November.
1919. 10y Examiner Reid that the Peoples Bank
had "A larg. deficiency Of assets and $4,000 de-
hriency IN actual income. No receiver WAS APP
pointed until 1876.
Mr. Ellis testified that he had received the re-
port Of the examiner the day after il was made
and reported the matter To- the Attorney Cen
rral. with Recommendation to close up the
bank on the same day. Thirteen days after
ward the order To clos" up the bank had been
issued. and nineteen days ait"rward |. '.
From n WIS appointed receiver. II the reports
a. received are not believed to represent fair
Nhuai ions. the Superintendent either sends
them h't'k Tor correction or sends an examiner
70 inquire into the actual condition Of the bank
The Peoples Bank. he believes. has paid IS
cents on the dollar since il WIS closed up.
In" charge relative to the Trades Savings
Bank was next taken up. The reports Of the
bank for January. 1916. and Of the examiner on
Jan. ID. 1876. were admitted rs evidence.
Henry J. Lamb, Deputy Superintendent of
IN" Banking Department testified that there
was no exam nation made after the date Of the
one IN evidence until Aug. .. Mr.. Ellis WAS alb
sent n August when Reed forwarded another
report OF the banks condition, upon VIII IN he
ailuiged II was lnsolvcnt and three days after
ward he reported II 10 the Attorney General.
Adjourned until 10 A. VI. tomorrow.