New-York tribune., 1877-05-16
CASE or FALSE PRETENSES.

There is one important point IN connection
with the closing of the Third Avenue Savings
Bank which has not been brought out in
the Investigation, and which seems so little
likely to be brought out, that we feel justi-
fed in referring to it. 1t must be remem-
bered,
|. That on March %. 1875, the Bank Ex-
amincr. Mr.. Reid, filed a report showing that
there was a deficiency in the Third Avenue
Bank of $4,000, besides a previous de-
ficinncy of $4,000 secured by bond of
the trustees, and that there was deficiency
of income of $500 a year. The Examiner
stated, in his testimony on Monday, that his
opinion that the bank was inSolvent was eX-
pressed in his report to the Superintendent.
II. That up to Sept 2S, 1875. or for six
months, no action was taken by the Superin-
tendent On that day the trustees met, re-
solved TO close the bank, and appointed a
committee to inform the Bank superintendent
and al wise with him in regard to the matter
| That committee, accompanied by eX-Gov.
Hoffman as counsel, waited upon the Superin-
tenGcnt Sept. %, and the Superintendent the
same day addressed a letter to the Attorney
General, saying that it appeared from the ex-
aminatiOn made by Geo. W. Reid and VIM f.
AIdrch, rank Examiners, that the bank was
ius0lYent, and recommending that it be closed
What account of this transaction did Mr.
Ellis give i'll his next annual report to the
Legislature Simply this:
me examination ot me bank mGde bY he department
il, $50 sho,red coH,S,rsy hat he interest Of the depos
itoys req,ycd te b1" 10 discontinue business, aud my
recommendation the Attomcy-G General commenced an
action and placed the institution in the hands OF "a
corser whether would have been better had receiver
beon appointed IN 1871 instead OF 1873 is question
! mostly speculative
Now will the Committee ascertain from Mr.
Ellis why. if the examination made in March
"showed c0ncuSively that the interest of the
"dcpositors required the bank to discontinue
"busness," he allowed it to continue business
for SIX months, and then was only pushed into
action by the trusteeSP During this period
7l9 new accounts were opened and 7l9 addi-
tiOna persons were swindled out of 50 per cent
of their deposits and 1t is alleged also that the
trustees employed this interval in protecting
| themselves and friends against loss. Was " the
Interest of the depOsitorS properly guarded in
this matter7 Mr.. Els's line of defense in
this case has not yet appeared, but the
indications foreshadOw an attempt to show
closing of the bank, and that for public rca-
sons it was allowed to continue business. 1t
is even said that some bank presidents will
testify that they asked him not to close the
bank. Perhaps it will shed some light on tins
| point to say that, few weeks after the
Third Avenue Bank was closed, Mr.. Ellis
closed the Peoples Savings Bank the very
next day after report was made declaring it
insolycnt Was his course in the two cases
! consistent With respect to the Third
Avenue Bank, in 1876 MIR. Ellis was anxious
to make 1t appear that there was no post
ponement of action; in 1877 Mr.. Ellis is
anxious to get credit for postponement. He
says himself that "the examination showed
conclusively that the interest of the depos-
"itors required the bank to discontinue busi-
"ness," and yet he never made a voluntary
attempt to protect them. He says that the
Attorney General acted son my recommenda-