The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-03
Thu CLAIRNONT SAYINGS" BANK.
The Condition of Affairs Shown by the
Receivers Report.
FALSIFIED ACCOUNTS.
The Way the Depositors' Money Was
Loaned and Used.

The failure Of the above institution detailed in
tho HERALD OF September II and subsequens issues,
will be tolerably fresh the OF those readers In
terestsd In such matterR The receiver, Mr. h. A.
Smaey has just the suboined report TO The
Bank superintendent
H. LAM Acting sophisticated OF BANKING. Albany.
q re- s.s %
In ss ss 10 no. % H r..
sSisy whom smpoysd the s..iOn q the
ss %us s0s . q s S.as
through many sux.ry books msmSrAnaS seHoanis
snr al their pr proper And
tina. labor and time beyond erdnssy work o. this
The Clsirmont Savings Bank under special
II Ss
under il: ehar.s. min after Jsna. / 1878 the number
:: ssssss Il .sIss
the bank havs been ,Svsu though shs sworn
s M The snIs 81 a
1872 nor =. any time .I6ssquen From the lss q sa
q their % 1s S-vS' ssS. law ana how little
he clause in their charter requiring that president
ration its deposits In manner use the same or any
pns s.S
Is ss sSa.s h in I'M
shall 20 s Except on the nd na
cages unencumbered real estate worth At least double
parently ignored. or at least persstenty broken
withou. the slightest su.horisy under its charter In
deed conrsvention Savings Bank law the
%oss asr0s
esassT .SsssI q party
in uncurrent money buying AMI selling gold &C., he rem
portion the OF the under the latter
novel line OF business for savin bank In hands
In of els nota Of adj N
bank $40 with forged signatures which taken
through the operations and form part OF the
president q the bank Of It's original ,nsor
through the period its and him larger
tue frauds and which there
appears than upon ohes individual II pro-
ponsibe for desudng the depostors to just accounta
Suits brough. to recover from the trustees the
viii be taken compel tho restitution OF moneys lost
the bank through the fraudulent illegal action Of the
s eonnsciion proper to state tina. the .ssrs.
nas q inc dspesi.oI. were d:Datsd has aDp.rsatly
hs o standing bis or his Wig. and
rendered ALI the assistance he could TO uncover tho
oroOsed services respects have
ssereSs ~ w. : '1''' ''-S N',-1 M I'A'-'
standing deposit books in the name of the late
DS Of Ss his es % Books a
belonging to himself and his family until the
. Ss e
With few executions am Of the belief that the trustee. q
vetent accompces In the Fraudulent illegal or improper
ndesd that most Of them a. ws as bank examiners
times Intentionally deceived BY the officers Of the
dividends illegally PAID should DO refunded By those instru
After this uctory statement shows
tina. the actual and beyond any
writing pass BOOKS are OIL with contingent
The contingent liabilities are such as outstanding
ceptansss esrca.ss Of the ssak and furniture claims
received and are here only treated IS By reason
% and then as having the Be- so
sc.e from the who obtained them IN Ike amount
which the profit and loss shows thar
dividends paid over income received 500
Ssvssn ssmsis loss and shs liabilities Ss
smns the bad or in
different thar assets to the amount Of $Ssa4 a have
zeal M Of hs bans Ssssa on sos or Ssat
cost vslaes s. rs sgans actual Ssliss
amounting $4e535 or contingent and liabilies
that values Of relation,
very :" 'ns real sey v ere
drafts, cash items. socAiled loans, .&c, much Il
a well as much considered good only obtained At
tho end Of lawsuit The Of the long nst Of
investments which savings banks legally make rem
ss
deficit the cash s. Of ns hank s
and other chargeabe but which were sysemati
Ssdscsss from such proDsi
made, thus withholding from the books liability
brought proper this accounting Thus the cash
seeming sisa large
the Bank Examiner The certificate Of deposit &C
just Ieesa and for wha. is taown sitting 0ns hun.
dred thousand dollars Of certificates Of
s aaa
being nearly hundred in number it Is found that but
81 s.asd without value received appearing
tngent liability also certified check for $1,000 for
loans pay regular loans to the Cairmont Bank
mainly government bonds and gold tsEsa IRON loans made
BY the BANK ~ ~ on the sossa era 10
owned
The amount Of assets amount deposit in
banks will not be found available As each bank will
Il: 'ssD other such
Il. sam. ny O. s as sS"s
concerned IS wen as many call loans" aud under this
whether such pasboeks possibly worth iOrsy ty
set, loan At 100 per cent For such reasons
Of S9m the cam wSser good o.
mortgages enumerated the the upon
SAID 10 be fraudulent upon proved
bered property In summing mp that
Of the bank have boen Intentionally and
nuously aised that Of the officers and, perhaps.
OF the trustees OF tho bank have taxed their
ingenuity deceive the other trustees the depoors aud
the BANK Examiner to the actual condition Of the bang
character OF its secues that the charter OF the
Savings ank law have been persstently aud
atcay violated aud that in than instance
Of the condition of the bank furnished
your Office false leaving the parties swearing thereto
liable the charge OF perjury
Every effort Will be Ade TO secure for the deposito the
largest dividends possible the amount OF which will de-
pend upon contingencies which unable to forecast
18th have the honor TO append statement OF the
aud liabilities of the bank the 10Th oil september
1877 ascertaned by the examination just concluded
the ding remarks given atory the
same and Of the situation at present In general