The New York herald., 1877-09-18

SS,O-
Open accounts July l. l,O43.
Report January-Due depostors, Sis 222 9s; sur.
plus, 81, 424 ~ open accounts, l,OJl.
TIE BANK DECLARED TO BE ROTTEN
Bank Examiner Orvs says:-"rhe bank Is ut.
terly rotten, aud has boon doing business on im-
proper principles; Tor instance, ho SAID to the re.
porter, "wbat do you think Of trust institution that
wnl draw checks on BANK In winch they have no
money, and carry in their drawers cash un-
paid proesled checks and this is exactly what
they havo been doing here Their deposits amount to
about 500. 900; they owe borrowed money about
$50 Ooo lor which thoy have pledged securities OF
their own, and have also put up collateral OF other
peope-a. least SO far as am Informed It looks that
way Thcy possess S4S U0O in bonds ant
mortgages but these arc only secured on country prop
crty you Judge what results would come IRON
foreclosure on such real estate in the present cond-
ton Of the market 1hoy have then, of call loaus
what represents about 3D. 0oO aud these secured
by government bonds. savings bank pass books and
things less good. or cash hand l think
there aUout 5000 They claim to have about
$50, 900 in government bonds, Out am told and be-
lovc they pledged From tins statement OF facts
you eau judge how business has been Carried on II
depositors would be slender, yet | know nothin.
against tho character OF the gentlemen connected with
the bank, and closed 1t because they were doing
checking, or banking business, as well us savings
bank business. and this ~ss clearly illegal, as well aj
Tor the additional reason that alter an examination
considered the concern insovenL"
THE ovERpRAFTs.
Tho overdrafls which first lod to the scandal about
the bank were made on SATURDAY on the Produce
Bank in favor OF tho North River, for 50, 500 and
OF the cluimant tho Produce Bank vi ~ 900,
winch the latter refused TO pay 1t IS SAID the salaries
or tue last SIX mouths 10 only S625 while
penses did not exceed $500 or 5000 An ndis-
nant dep0sitor on the sidewalk remarked That
''no wonder the officers told their friends they were
running the bank almost for nothing, whom they were
discounting bills anl ouniny money TO then frionda
on wild lands IN JERSEY"
| Mr. sherman i. Broalwel, the president, could not
he lound during tho day II was said he Iet leclng
| very poorly when II was discovered in the morning
that the institution was in the hands oil the Bank Ex-
SOM l''a Of Mcssrs r. W. Robinson Son, dealers IN
drugs and chemicals IN Greenwich street. nearly OPP
postc the broken bank was visited by the reporter
and urged his solution o. the insolvency OF tho
bank Mr.. Robinson said his father was a director III
| tho institution. but had not given muca personal
attention TO it, lie was lifelong friend OF Mr. Broad
we'll, the president, aud did not believe the latter
would do anything wrong. He was considered by his
friends be OF tie strctest business integrity.
UI the affairs OF tho bank he (Mr. Robnson) knew
nothing personally ho had heard howsver that tho
checking which was against the law.
| DEPOsIrOR SPEAKS.
Mr.. Ravens SAID nc was depositor IN tne broken
| bank. Ho nvcd In New Jersey aud knew Mr. Broad
| well aud some OF the directors al have money
there y Mr.. Havcns excitediy continued, 'and would
nut more in to keep the bank running and OF tho
hands Of u receiver know too well what rcceivcr-
ships mean what the bank officers don't steal the
ceIvers gob6Ic up Broadwcli IL a good man; he put
the Iron Bank at Rockaway on It's icct aud it is IN
| sound condition."
Mr. Henry Parsons, lawyer, is law adviser of tho
bank aud Que OF The directors. He not 10 be
| VI his Office. Mr.. Robert g. Cornell OF No. Wash
ngton Market, IS also DIRECTOR but at his place OF
business he could not be found There also man
other prominent and wealthy gentiemen connected
| with the bank.
STRANGE, INDEED
That which may throw some light possibly on the
AFFAIRS OF tue broken bank The fact that MT. j. l..
Ball has brokerage Office Ia the same bank basc-
mcnt and connected with the busiacss of money
cnangnR. Yesterday Mr. Ball had access TO the bank
WHOM every yOody else was donied, and II was hined
that somo Partnership existed between the savings
bank and Mr.. Ball, especially us the latter establish
mcnt has prominently displayed ON tha wall seduc-
two advertisement which informs people In general
that nity.ilve cents saved every day ior u year
amounted u 5000 IN ten years to $4,000 and IN hlty
years to Sos. .UO0
The examination Of the bank will DO continued to.
day.