The New York herald., 1877-09-15
LONG ISLAND BANK.
It's Doors Closed at the Suit
Of a Depoeitor.
APPOINTMENT OF A RECEIVER.
The Result of the Last EXamination-Dell.
cheney Over $4,000.

The information received from Albany, In Brooklyn
yesterday afternoon announcing the fact that action
had been taken by the Attorney General OF the STATE
10 close the Long Island Savings Bank, created con-
siderable excitement among the depostors ID that
institution, though the event has not been unlocked
for since the HERALD's publication OF the Bank In
spectors report in August last Suit was begun IN
the Supreme Court. before Justice Pratt, by William
Stewart, depostor in the bank named, VINO had
balance OF $93 81 10 his account yesterday afternoon
70 wind up tho business OF that institution and 70
have a receiver appointed, and also 10 enJoin the
BANK officials from paying out Of the funds The
complainant alleges that the defendant is nsoiven
has been practically since August 6, 1871 Ger
tain depositors have gwen notice. under the sixty
days rule, 10 withdraw their moneys, and the COM
plant sets forth that, the bank is not restrained
these persons will get their deposits in full while
others will be left out In the report the bank build
ing is down being worth $4,000 whereas It's
actual only $780, 600 and its present value is
$3.50 that It is set FORTH there Is de-
Gctency Of about $75, 600 or $4,000 Hence the CON-
painant asks for the appointment OF receiver and an
Injunction enJoin the bank officials from paying out
any funds The application for receiver was made
by General b. +. Tracy, counsel for Mr. Stewart
THE FAILURE PREDICTED
Gencral Philip s. Crooke counsel and vice president
Of the Long Island Savings Bank said that the instu
tion in question decreed bankrupt ON August 10
by the newspapers. Notwithstanding that fact II had
funds sufficient pay all it owed. but If it was rele
gated to legal adjustment it mus be relieved from all
responsibility. Tho building was the only thing In
dispute, and owing 10 the present depressed state OF
the real estate market could be turned into cash
In sixty days.
Counsel for the complainant said that there was NO
allegation Of msmanagment misapproprlaton Of
funds by any person connected with the bank Every
thing had been honestly managed and all the securities
we're there The only thing the investment in the
building aud IN these times OF financial excitement it
was undoubtedly that they could not get enough
for 1t to preserve their soivency. General Crooxe re-
marked that the bank building, which was erected IN
1859 with tho approval Oi the Bank Superin endent,
snould he tuken At cost and that the Institution was
solvent
Justice Pratt, after hearing the argument, ap-
pointed Mr. Mortimer A. Ogden AZ receiver Of the
Long Island Savings Bank, in a bond OF 500 600.
The Court also enjoued the bank officials from paying
out any funds Of the institution.
THE RECEIVER.
Mr. Ogden, whose appointment Is agreeable to the
bank officials. is retired merchant and Is possessed
under the management Of suca q man he believes
that the bank can pay twenty-five per cent cash by
as the mortgages are cashed. The building 10 pro-
ductive, by renting tho part now occupied BY the
pank OF $40 900 year II the building 10 kept until
Il can he sold to advantage It's value
will pay the other twenty-five psr cont This hopeful
view Of the solvencv OF the institution Will tend con-
siderapy 10 aordge the disappointment Of the depos
tors.
EXAMINATION BY GRoRGE W. REID.
Tho condition OF that institution been pretty
generally explained 10 the readers OF the HERALD. but
the exposures made by the more recent examinations
M the LcuartmenL are, II possible, more astounding
tnan the original As early as July 80, 1877, Nr
limb then only deputy, called The attention OF the
bank 10 the discrepancies between its reports and
those of the bank examiners, and, whom he came in
charge OF tho department. ordered the examination
upon which the bank ia now closed Tho following IS
tie latest examtnatiou:-