New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-24
CHARGES AGAINST MIR. ELLIS.
THE SENATE COMMITTEES INQUIRY.

The SENAIE COMMITTEES INQl Ky.
MECHANICS AID TRADERS SAVINGS BANK MANAGE
MEST-TEsTIMONY OF THE RECEIVER AND TWO
TRUSTEES.
The Senate Committee on Banks, composed
OF Senator'S Welman. John, and Coleman met ut the
It. Nicholas Hotel yesterday noon to investigate the
charges preferred against Bank superintendent Ellis by
William j. Best receiver of the Mechanics and Traders
Savings Institution. which suspended business In the
Summer OF 1876 Mt Ellis present with his counsel,
OrOw Il. Chapman, ex-Insuranee Superintendent, Mr..
Best was accompanied by his counsel, John McKeon.
The message of Gov. Robinson to the Senate read.
II roced at length the charges preferred by Mr. Best TO
the effect that superintendent Ellis culpably negi-
gent in closing the Mechanics and Traders Dauk
after Its condition had been made known to him by tho
Ex mining Committee Of the Trustees Ira ". Gregory
and William Floyd Their report showed deficiency of
about 100000, mainly GU account OF the worthless
Southern bonds held by the bank.
Mr. Best testified that had made examination Of
the bank, far IA Mr. Ellis was concerned but did
make an examination of the whole management OF the
bank from its organization he had found number OF
reports of examinations Of the bank made by OF the
trusees one OF these dated Aug 10. 1874. was put In
evidence, and supposed 10 show the condition Of the
bank the 30th OF June. 1874; this report, made by
Messrs Floyd and Gregory under resolution OF the drec-
tors, showed the insttu ion be nsovent there being
deficiency OF $lS1 600; but Notwithstanding this deficit
the trustees declared dividend.
Mr. Chapman said the specific charge seemed to be that
Mr. Ellis guilty OF culpab!o negligence from July,
1874 to July, 1876, in regard to the bank.
Ira w. Gregory, trustee OF the bank, ard OF the
committee appointed by the other trustees to examine
into the affairs OF the bank, testified that making such
examination in 1874 the committee did find the bank in
solvent; no attention being paid to their report by the
other trustees he resolved t0 call the attention Of
higher authority TO the matter. The report sent to
Mr. Ellis. who, later, told Mr. Gregory that IT was cor
rect and that he himself should examine further into the
banks condition. he did and said 10 Mr. Gregory that
h. found deficiency OF only $4,000; tins MI GregGy
considered strange; Mr. Ellis had valued North Carolina
could be purchased al IGls niosts - the Brook
Ign real estate had been appraised too III i; Mr. Ellis
$4,000; Mr. Gregory did not Mr.. Eids's standard
OF examinations ho did not think the charter allowed The
hank officers invest III Southern mics iThcreupOu
senior ST. John exclaimed that III tht case the officers
Mr.. Gregory admitted under eros. examination that
there had been difference OF opinion among the trustees
Gs The value Of the bonds other securities. lie
tie value 1f bonds judge from what information
coud he obtained in commercial circles. He had some
times mistaken in his opinions. There might dee
honest difference OF OPINION concerning the real anu mar
lct value oil bOBds.
letter RON Mr Ellis to the bank dated oct 49, 1874
offered at this point Ii stated that Nj. Ellis round
actual deficiency 0I about $4,000 IN the bank ana
tdnty TO lc value OF certain bonds held
lie thought these doubtful securities should
b. rid of as soon rs possible lie recommended that
ole officer his assistants shOld do all the work OF
bJna and hc regretted TO iud dec dcd difference or
up.IO- among the trustees. Tho deficiency OF S25OUo
must be made up. Nj. Gregory could not 10 the
contents, bat knew tnat sIcn letter had been received
lie I'D NOS know that any steps were taken toward
making good the deficiency.
William Floyd coirObOratcd the testimony OF Mr.
Gregory. lie believed thai the real difference the
dirccOls 10y i'll the existence of ring %! which Mr..
Gregory he not members ana that this ring was
.triSi ing to make more money than the law allowed
Under crossscXaminatIDn lac also acknowledged that
might he honest difference OF opinion about tue
real ket value OF the bonds. Nh Floyd also
testified To the proceedings taken III the courts to remove
the president OF the bank and 10 have receiver APP
pointed. Hc could not swear that Mr.. Ellis knew of
IHese proceedings. After having laid matters before Nh
Ellis ami Attorney General he Csitacd 10 take upon
uis ell the application tor receiver lie dreaded tue
Responsibility, since Ar Ellis ami the Attorney General
refused IL. Mr. Floyd had selfish object III view IN
closing the bank. He did not Know representations
others mi GIT have made TO Mr.. Ellis.
the examination Will lie resumed to-day at 10 a. m.