The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-25
SAVINGS BANK INSOLVENCY.
CONTINUATION or THE INVESTIGATION By THE

SENATE COMMITTEE OF THE CHARGES
AGAINST BANK SUPERINTENDENT ELLIS.
The Senate Committee Banks met yesterday
morning at the ST. Nicholas Hotel senator Coleman in
the chair resume their investigation of the charges
OF cupable negligence preferred against Bank Super
intendent Ellis in reference TO the affairs OF the Me-
chanics and Traders Savings Bank Tho examination
was long and tedious, very startling Developments
having drawn from the Witnesses testimony. The
most important testimony eiciIsd was that OF Mr..
Bethany counsel for Messrs. Floyd l. Gregory, who in
1874. on their request presented complaint 10 the
Bank Superintendent and demanded that the bank be
closed in the interest OF the depositors The cxamina
ton viii be continued to-day Tho taking Of testimony
did not begin Till about haltpast eleven.
rHR EXAMINATION
The Arst witness called was Mr.. j. N. Jacks OF
Brooklyn, q real estate expert connected with the
Lorillard estate He had in 1874 appraised the bank
building at $50, 1000; three weeks ago he valued the
building at $50 Oo0 there very little real estate
sold in its neighborheod; witness didn't know very
much about the value OF property in the neghborhood
not being the property near there; real
estate values began decline in 1874 they had gone
down very materially, from forty to hty per cent;
there were but few sales OF real estate except those
made under foreclosure mortgage
Mr. Frederick p. Bcllany, counsellor-at-law, Of
Brooklyn was next called In September, 1874, he
was retained by William Floyd and Ira Gregory
tees OF the bank TO look into Its affairs and TO take
stops the protection Of the trustees and deposors
they brought him statement purporting TO show that
the bank was largely insoivcnt; witness prepared
summons and complaint against Mr.. Ellis This paper
was offered in evidence The most important item It
contains reads as iollows-
The following table correctly states tho oms incor
rcctly stated in schedule G =
EPcess Of af
Cost over Mar. Aarket Value
ket Taiue Ooer Cost.
Stocks OF other States. SPAS, 4a9 rs
Stocks OF counties,
c.es and towns. Sll.sos SO
Real estate .......... Y,0Y2 rs
Total ao,994 rs
Total depreciation $22s. 444 so
Witness saw Mr Ellis In his office In Albany: told
tho latter that he had at the request Of Of
his clients reference to the affairs Of the Mechanics
and Traders Savings Institution; showed him the
paper showing the bank be insolvent from $500
5000 900; said that his clients thought the bank
should be closed up; the complaint was compared
with the report Of tho bank examiner; called Tho
superintendent's attention specially TO the Southern
securities; Mr. Ellis said he did not approve OF the
bank beng put into the hands of receiver, but he
would come 10 New York to examine tho matter: no
went down with witness to New York the same day
the latter had the interview with him.
ON cross Examination Mr. Bcllany said chat he had
presented tho papers to Mr. Farchld at the Attorney
GENERALS office; Mr. Fairohild said he had evory
udence in Mr.. Ellis and any action in regard
the bank should come through Mr. Ellis arst the next
day saw Mr. Elis The summons and COM
plant in the action were drawn up, with view 10
having the Attorney General proceed the matter,
but the latter would not act on those papers. The
main points OF difference between the complaint and
the directors report the values put the South
ern securities In the reports OF the banx they
! placed much higher figure
Mr. McKcon next offered in evidence part OF section
6 OF tho OF incorporation OF the Mechanics and
Traders Savings institution II stated that moneys
might be received deposit or the purpose OF being
invested IN government securities or any public STOCK
created under aud by virtue OF any law OF the United
States or OF this state, or in any stocks or bonds
tho Legislature OF this State" Mr. McKeon
claimed that this section restricted the bank
from going OUTSIDE OF New York State Tor Its
ties except IN tho OF government bonds He
offered evidence the act OF April Is, 1858, which had
been repealed May II, 1875. This act permitted tho
buying Of tho bonds Of state provided that at the
time of such ssments tho stock or securities
ut above par value. long discussion ensued be-
sibllity OF these documents as evidence. Mr. Mckeon
urged that they were public acts After some delibcr
the committee decided to such parts oil
the acts related to the case
VALUES SOUTHERN STOCKS
Ar John Il. Manning, banker aud broker, was
called expert TO give the value OF the bonds
held ny the bank on october 1874. Of South Caro-
linas ,he January and July and the non fundabie
bonds. On October q, 1874, the old bonas were
/
non lundable at0 on October these prices were "a,
Tx and ga respectively. or North Caronas tnere
we're thirteen kinds, Ave OF which KINDS were
ante-war bonds we're quoted ut 204, the North Caro-
lima Railroad bonds at AZ, the lS54s al AZ the '6s's at
IA and the now bonds at l2n. or the kind OF Ala
bama bonds held by the bank witness had never
but one recorded sale, that was at 90 shortly after
them; witness did not eieve they would bring ton
cents on the dollar The Tennessee bonds held by the
bank quoted at 81 Witness took his quotations
| ffO tuck ist
Stock Exchange, which was before HIM and copies OF
which he had preserved IN his Office
ESTATE VALUES.
Sir. John +. James, real estate agent, OF Brooklyn,
called expert 10 determine the value OF the
banks real estate situated at Nos 80 and 81 President
street, Brooklyn No. ~, corner piece worth
about $14, 600, aud tho Other, at No ~, worth
morc the bank building must have cost at least
/ $780, witness differed ftom MIR. Jackson's csti-
mate hc thought that the depreciation IN real estate
had begun as lar back as 1872 the depreciation had
been July 80 Ter cent Mr.. Chapman on cross-exam-
NATION put some questions trying TO show that the
estimates OF the value Of the building were merely
matters of opinion.
Mr. William J. Best was again called to the witness
chair. The question nrst asked by Mr.. Mckeon was,
Can you state what was tue condition OF the bfuk
when you became receivcrY' and the Iext "What
the deficiency at the time you were made re-
ceivcrYn Mr. Chapman Ut once objected
aud u long argument was entered into between
counsel. Dir. hckeon urged that ne had right to
show the disastrous Consequences OF Mr. Etis neglect
while Mr. Chapman SAID that the inquiry should be
srictcd merely to the question whether there any
examination aud the time when he handed the matter
over to the Attorney General The committee decided
that the question was lDadmlssibe The examination
was then continued. Mr. Best said that there
were about BOO depos.ors In the institution, he had
paid sxtyvc per cent OF the deposits and had
left IN his hands still These consisted OF bonds
aud mortgages IN process vi foreclosure about
100000 OF real estate (bank building, No 22I East
Forty lth street, No. 30 President street, Brooklyn
and No 81 President street, BrcoKynliour pieces, nil
they had IN 1874 OF bonus, Aabamis, $685. 600 North
Carolina, Sll3D00; all the Ten ncsscc bonds nad been
sold; the rest OF the assets Office fixtures and
about ~, 900 IN cash.
AIR. Daniel a. horan the witness. lilo
testified as foiows:--Am broker by trade; the list
OF stocks presented In evidence all xcd their
market values; this was generally the bidding price ;
The difference between the buying and selling price
ranges from ono TO i've per cent
Mr William J. Best again called. Hc was d.
"a