New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-08-11
SUPERINTENDENT ELLIS.

or THE .rg-EvIpEgcE or WITNESSES As
To- rrr srPFRINrTNDENr's NEGrEcT-ADDI-
Trox.L TESTIMONY BEFORE THF saNATE-MR.
EILIs's RESPONSIBILITY FOE DEPOsnOAs' LOSS
- ~ THE THIRD AVENUE BANK.
The proceedings against Dewitt [. Ems
superintendent oi che BaHsng Department Of New
York. are tileir general character an impeachment
grin D.io.e tno state senate. They are IN tNo partsi
Uj Testimony before thc senate C0mmi'tce on Banks;
Cd Testimony ,eorc Senate iisak Tho latter laf
OF Ae proceedings ytt n pro-esf, though the iesti-
ma.y IS ucaf.y Euot gui.e complete. TIC WAoe e'i-
~ reported sedilziy yOigmin0, that which
taken before the Committee flng about 300 printed
pages I'D that wnch the senate has taken being GER
tam To- exceed that bulk Notwithstanding the general
iu ogc-t u The tl The patience al ordinary Newspaper
readers been oyerta-seI ia following even Tie cou-
dens.d apme reports from Albany. 10 d therefore
proposed io give Lere summary oi tle leading features
of e ease, from s beginning down TO the present. ume
80 attempt 10 details VIA bee made, these you'd IL
yoire much documentary evidence and thc comparison
OF accounts and fzIrcs to 70 cearisomc eEtent
Toe basis ~ the n this obtained ia two
messages 20 The senate from GOV. Robinson. The points
they present considered In their successive order ~
the Bank Committee ,e matter Of the fret MESSAGE be-
ng taken up and finished before the second one was
brout Nd In the procedure before the senate there
Was .le attempt t0 follow ibis order The nrsl messiee
wa. dated April IS77 60 recites charges AGAINST 7t
Els rs being furnished hy william J. Best Receiver of
mag Doe summarized follows: that thc Bank was nsoi-
vert In July I-7f tie deficiency then bcin4 s2oO0o0
that these facts known 10 Mr.. Ellis pa TIE ioi
owiu. september: that theroupon he examined Re Bank
aud admitted its insolvency that be was frequently re-
qGoaed % take proceedings - protect he crrdor Das
neglected DO tll about two yean altc-warI-J1ne
1876. The proofs offered were "a follows: a balance
sheet showing deficiency OF more than 100000
n July 1874; this made hy The person
who bookeepor OF the bank 40 that date bat was
sworn TO in October. 1876. The testimony is gwen Of
Two o the trustees 81 the bank Who 10 July, 1874, were
appointed by h committee % ascertain ts condition.
They reported deficiency OF rl-l.JoO. Evidence SHOWS
that these trustees brought this report Nr El,s
lice in September I@74 aud 70 alleged tat several
tes ne was urged to TAKE action. The annual report -
the Bank Department meanwhile stated thiugs widely
different Ia March, ls75. 70 ascrihed 20 the bank SIR
plus or 9GT 900. IN 1876, $500. The Receiver found
the deficiency raary S35OO00. AL the foregoing points
and q Jew othcrs are lad down the Governors NEE
sage The two trustees were among the witnesses slin-
uoncd by the Bank Committee II appeared upon SIT
ing the evidence that the statement Of Che two trustees
showing dehceucy of sl-lJOO contained serious er-
rrs such The Of the cash ou nals slO20OO
ana was otherwise 20 be regarded viiA some suspicion,
there having been contest ia tne Board Of Trustees
The alleged frequency OF representations 20 Mr. Ellis ~
the weakness Of the bank was dsprovcd by the evil
dence " those who Sad o. Aay. made them Alter
examining the bank in October 1874 Mr. Hills found
lts deficiency T-Jupl, anu urged ttc Fur.t'7 10 AthS
ti. good some bonds OF the cites Of Brooklyn AMI
Rochester held by the Bank. shortly afor'ards
value and by tie January follow appeared that the
bank could actually Stow sU1lus The testimony IN
dcaed that there even a. Thar time for con-
.idtra difference ~ opinion 10 the value of some OF
the ,curitic. Of she Bank, the market for certain
Southern stocks tuctuatrdi ald a e"uf vas ltUnh
over the accuracy OF tie method ~ vauig BANK secu
lies ia the State Department Doubtless however tns
greater portion OF ihr decline ia -"'A' ao .e.i ,t.e
VAS o later date than 1874 On the Whole, Ar Ea.sS
defence against the spec hc charges relating 10 zoe
Sechaacs' aud Traders SAVINGS Institution, was iary
successful before tie Committee. ,.a
The second message ~ tne Governor |as datea ALt
30 ~. - ~ ne Isai slrr.t, the Peopes' the
Trlder.. the Abingdon square, The German oi Nor
IT, , az ai+ir snrrrf the New-York state Loan ana
Trust Company the Lnlners Bank. OF the,e inst-
buttons the Tlird Avenue say ngr Bank vas hy Tar Tie
moe. ptortnf ana II s named Last in ,he Governors
letter About ot,r banks the specified charges are
chiefly OF delay the ua.t % tie superintendent IA
putting them into Receivers hais after their nsolv
ency was known. A. 70 the Security Blsk, neglect 10
make examination IS also ALLEGED Ihr SPEC l.'.'lo..s
concerning the Third Avenue Bank arc me moss 'odni-
amt and the neglect charged 2sllus. NJ i is OF me
In ,r 70 the Bond street Savings Bank. charge
wa. tlat Mr. Ellis bad been informed h4t the BANK hd
nouv showing at me matter had been considered bv
the Department ad 'OriinE - legal advice te hank
was permitted 20 hold the doubtful securities ihefe be-
ing "a 0ophole IN To the charge that The
bank ought have been put into receivers hanis be
he nz sfiIl hqd "a ar.e SURPLUS and gave * the
VIII. ~ ipur business ana even l. pay dividends
ont of IT, surplus 10 afterwards closed ana -!Vrn
~ - , rccdiver bccau,a the trustees sodesired As 10
the Peoples savings Bank Mr. E- showed that the an-
pIcation for q receiver not delayed az al 10 was
made ON the da that rhe report allowing deficiency was
presented similar promptnrss proved IN respect 70
the Trades Savings Bans. Ia regard % TIE Abingdon
square Bank Department obtained evidence Of s.ae
Illegal transactions and tlereuIon to0h St I 10 nave u
pearrd over banks Of discount ana deposit tho
balartmeut has nos the same power rs over savings
baiKs. Mr.. Ellis. testimony went 10 show that he
promptly used AL the power the Department possessed
it regard fo irregularities in tue bank Of Lgnsin gburgh.
tie Ncw-York state Loan aud Trust COMPANY ana tae
i0anern Bank. The lst named Dauk resisted the eots
m investigation made py the Department s suspension
Dos place during that struggle. A. 10 the security
say 80. 90 a. T.,s -.fr.,i and neglected Ia make an
cXaluatl0n Tine bank Aa1 surplus before II suffered
from iooorry tl.e ,nAa Va, , l. -,un -,vrnIs
1ae GOOD and the tristers aid actually make IL mp AZ
l- 10 Themselves Afterwards concluded 70 have 10
affairs wound ~. Mr. E..., claimed ilst M tAs Nhoi1
u.lceeuug the trustees were the losers ana tue dep0s-
TORS we're greatly benefited.
ID % this point Mr. Ellis had defended himself toler-
ably vel against specific charges perhaps partly
because instances there we're lew Witnesses Tor
Rank Was not 50 easily disposed or The scope OF tue
inquiry was enlarged, aud II was made 20 Apply TO any
fme when Mr. Ellis became superintendent % The dats
nen the bank closed II was shown ihal the bank
ulent in April 1873 and mat there was then proc
pect ot greater deficiency. An examination made
81 zoo deficiency besides $4,000 OF trustees
~ lf.latee bonds held by the department The bank
wiz not reported 10 the Acknowledgement r scptmber
Is-5 The real estate held ~ uis bank had rs value
raised d. the accouuts showing apparently Increased
assets claimed that tls TOOK place before Mr.
Ellis came into Office dc aet - 10 n"so ~ pea tne
increased valuations hg found them. There were
yarOu. fraudulent transactions IN tne othA 'Aa. eoua
lot be brought odt m the tesl IlAS, De,..'' Suu ips
bp shown hat Mr. Ellis knew NJ Chem SUCH Tor instance.
carrying an fem Of $4,000 % cash wneG me ess
tAe Department IN March, 1875 Supt Els says respect
a receiver been appointed M 1871 Instead ~ 1870, Is
question mostly speculative.