The New York herald., 1877-03-01
ANOTHER BANK BROKEN.
Suspension of the German Savings
Bank, of Morisania.
HOW THE DEPOsITORs FEEL.
Application Made for q
Receiver.

After four months struggle with adverse circum-
stances the German Savings Bank OF Morrsania has
at length succumDed TO tate, and Tuesday
closed It's doors At meeting OF the trustees, held
The same day, It decided to make
application at Albany for the appointment Of
receiver to wind up tho affairs OF the institution.
This application has already made and the Off.
cia Indicated is expected to to-day In October
last some rumors affecting tho credit Of the bank
spread throughout tho twenty fourth ward, whicn
resulted in the bank by the dcposltors This,
although OF only two three days DURATION was of
such decided character to induce the
directors to avail themselves OF the clause
in their bylaws, requiring thirty and sixty days
notice respectively according to the amounts
asked for at the Confidence restored
however. many of those who had drawn their entire
deposits coming back to tho bank the day and
redeposiling them. Notwithstanding the efforts that
we're made at that time to tho pubic, and
especially the industrial class Of Germans Morris.
The Bank, 1t never recovered from
The staggering blow dealt It by the
temporary panic of October. Since then the confidence
o deposors In its sovency has the wane, and,
as natural result, there has been constant drain
its resources. Among tho causes assigned for the
suspension is the erection within tho past two
years OF o costly bank building by the dircc-
tors. In the last annual report issued by
the State superintendent of Savings Banks the struc
ture Indicated. together with tho ground which
stands, valued the assets Of tho bank
$46 495 H. while IL Is SAID by parties familiar with the
value OF property the locality that II It placed
under an auctioncer's hammer to-day it would not
bring $50, 900.
The annual report savings banks, issued January,
1876, shows deficiency OF assets amounting TO
$77214 g. In annotating this latter the bank exam
liner says the same page:"Nearly three years ago
the former president made loan Of $lO5 900 to the
Montcalr Railroad Company OF New Jersey IN various
collaterals. AZ the last examination your examiner
called attention TO this loan as not authorized by Tho
AR nm ha cal lied IN A
part OF the loan was then paid, reducing 10 $40 500
when the company failed II has been discovered that
the President allowed the company 10 change the bonds
which the bank originally held for others OF much
less value ono trustees claim without their
and new set Of officers elected,
who appear determined to cxtrcac the bank from the
eoateras now held could probably be sold Tor about
E25, 600, leaving a deficiency OF $52, 0O0 An.
osner ..%s mote Immediately ate & io'0wns % ahe above
In the same volume the German Savings Bank, OF Nor
risana, shows surplus OF s1ls77 62 on January l,
1876. Mr.. William Hoeand, cashier OF the suspended
bank, on being interrogated by HERALD representa-
tive yesterday afternoon, made the following state
mont
IL do not know whether the suspension will prove
temporary or permanent II all depends on whatever
action the depositors may take. They have been
drawing heavily since the third week In January when
o number OF them commenced taking out their total
deposits This state Of things continued until the END
Of January, and then the Board OF Trustees, taking
action in the matter availed themselves Of the
clause requiring thirty and sixty days In October
clause also put in operation; but after short
lme and whom We saw that the apprchensions OF the
depositors were allayed we recommended paying out
on demand until about February AT that iime the
thirty and sixty days. ruo was again re-
eumcd, but the cancellation OF moneys be-
came so heavy that the bank was finally
compelled to close its doors Since hcn tho trustees
have met, and, through tner counsel, applied iCr
receiver Tho trouble Is all owing TO the prccptate
action Of the dcpositors themselves Had they used
discretion In not drawing thor money tho bank would
have gene all right -
Although the Indignation is great among tho Ger.
mans who formed large majority OF the depositors
there has boon as YET nothing like disordcry demon,
stratiOn attempted, the disappointed ones giving
further outward evidence OF their chagrn than that OF
mourniully at the imposing bank building and
its securely fastened entrance. There has been
talk OF meeting the part OF the deLositors tor tho
purpose OF deciding what s their most udicous course
under the present circumstances but up to last
Ing there mad been no such meeting held. II Is
understood that most OF the assets of the
bank in the form OF bonds and mortgages prop
crty III the Twenty third ward and should the cmer
gcncy result IN a foreclosure OF these II would prove
disastrous to many Of the small property holders
despatch from Albany, received at Norrsania
yesterday AFTERNOON, sets forth that the German Saw.
ngs Bank had been closed by order Of the Supreme
Court, at Schenectady, obtained application of
quest OF the Superintendent Of the Bank
Department The complaint was based upon the
belief of the upsScrnten ndent that the bank was
verging rapidly toward loss Of business that 1t
could not retrieve its fortunes" 1t appears that
during the Inst year there were only 23l new accounts
opened the bank 642 closed, and ss36 Gil 50
posted to S1,O3S,do2 10 withdrawn. The fol.
lowing arc the Of the officers of
the bank: Jacob Held, President; Nicholas
sesoad s v,oo PRESIDENT Charles 'fHss Frsiz Treas
urcr; trustees. General Franz sigcl, f. d.
Malignon, NJ Kuntz, J. b. Dcnicke, J. G. Fried
mann, A. G. Hupel, Philip Ebling, Frederick Foz and
c. Hake. According to tho report for January 1885,
the Of the bank $523 ll6 97 and It's liaDi
tiles, SOL, ,229 IS.