The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-02
BROKEN BANK REVELATIONS
PLfTED UfRE rs hSSETS or A S.fy-
JNGS INSTITUTION.
Testimony In the Trial Of Bank supc rintcrd-
cnt Ili,s John y. Cisco on the stand Mis-
cetinncous Securities for Poor Uepositor-.

SARATOGA, Aug. In the Ellis trial, Mt
the opening II the Senate to-day MIR Rcid.
Bank Examiner testified that he never allowed
second mortgages as assota
On ross-cXamnation Mr.. Reid said I did
not inquire as to the character Of those mort
gauges; the lawyer made certificate Of title TO
property was critical in examining now banks
but aftrrward not SO particular. Talked with
the officers several times in July. 1876. trying to
get them to put the bank on safe footing. and
only wrote the department the l"itcrs read VS.
rlay alter seeing that they wer" not nrtinS as
he deemed neccssar, Tor saving the bank.
III reply To- a = nator. Nh. Rod said that he
discovered % fraudulent clirNk by LOOK NJ over
the bank books; that large deposit ol inc last
Of June was drawn out soon alter. ana That
July he inquired and discovered the check Tor
John J. Cisco testified regarding the Third
Avenue Bank: Was called on by Mr. Ellis ait"r
the failure Of Duncan. sherman Co, in Juv
1875 who said that the Third Avenue SAVINGS
Bans was IN trt-hc and asked advice; did not
spnuk Of the extent or nature of the trouble.
Witness advised proceeding cautiously. or il
might produce u run on other banks; MIR. Ellis
snid he had talked with other Wall street men.
Mr. Cisco was asked what he would have done
regarding the bank In Mr. EN~'- placr. when
Senator Gerard oip"ctcd ~ interfering with the
rrrpEWiye oi Va" senate to Judge oil the pro-
Frank Thompson. receiver ~ the Abingdon
Square Bank, testified tu the condition ia wiicn
he found the bank when n" took possession 81
a in August 1876. lie said he found second
MORTGAGES from tnH President. on" 81 fl3NNl
aud another of 81 900. gwen IN 1910. He found
the general condition ot the bank the first three
Wr'k- alter taking uo~-rS-iun. but not All tur
details. II is the custom IN New Ork for the
abstracts of It'll" and Tn" scnr"hrr 10 40 To the
bank taking mortgages. No abstracts were
found ~ this bank regarding lhc mortgages
ht.i hy II.
THIS closed the caso " tho Abingdon Square
Bank for the prosecution.
Tn" afternoon - 'S~isn was opened hv tal ing
up the ca-c oi the iaIlur" of the Iuunris BANK.
H. l.. Lamb. Deputy superintendent, read srN-
rfn letters rrgHr ling the condition ui the bank.
! The huna refused to allow l,aid To- ,NHmln" It's
affairs. Ellis suid hr would 20 and look mo
the matter himself 4 i,.it"r WIS ~tnt to the At
| toruev-tenrrM April 4. 1876 Hskln- II tll" tnuk
| could h" compelled 10 report. The Attorney
| General said II could
| In reply Ia u question hy Mr.. MCGUIRE for
| Els Mr Lamb SAID the sup riutnud"nt had no
power tp enforce tlIe law on the refusal To- report
| or bee examined.
| A lottrrof VIM. Tracy. attorney for the hank.
| il nl'd IN III" department against III" power 70
| examine. The bank iailnd shortly niurwafd.
| A receiver WIS appointed ia May, 1876. ana Was
| relieved IN November.
Jeremiah W.utringham rcc"iyer ~ the Loan-
| crs Bank. testified a. follow; the assets oi the
| bank were 81 900. Jewels pledged To- IN" hdnh
| had been pawn.d again. Tuc loHucr- BtuN
had deal ng- with tn" Abingdon = uhrr NaNin- p
! Bank. The assets were a ul.Sccilan" Ms culr'-
ton 30 life insurance policies, l'M"IrN. -to.N-'
! pmtcdwHrr, nnd read cstH,r ia Indiana New DER
| s,y. and Missouri. Transferred lu~urah t
| policies tn companies fer loss imam Inc loans "u
| them. Hnd also actr pied less than the sums al
| Nant"d ON JvWvlry.