New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-24
NEW SERIES OF CHARGES.

MESSAGE SENT BY THE GOVERNOR 10 THE SENATE
LAST EvENING-NEGLECr OF DUTY CHARGED IN
RELATION TO EIGHT BANKS.
ALBASY, April 23.-A message was received
by the senate this evening from the Governor in relation
40 Mr. Eds Superintendent OF the Department Of Banks
The Governor says
Since nv message to the Senate of the date OF April s.
1877 recommending the removal from Office 0f Dewitt
C. Ills, Superintendent ~ the Banking ID raFtmeEt,
inon rlrrs and proofs then presented nave received
ADDITIONAL charges agans the same officer winch Eere-
with subuit TOR your consideration
Following are the principal points in the charges,
which ale preferred considerable length and with no
lack Of detail, against the Superintendent III the case OF
eight banks which have failed during the time in which
he has been at the mead Of the department:
Edward Mallon OF NcwYork makes the charge against
Da Witt G. Ellis that it appears 10y the report Of George
" Reid bank examiner Mlrca -, 1873, that he had
amucd the Third Avenue Savings Bank March % and
20 and round The bank 10 BE- iusONcnt The deficiency
was 42l92G 81 ami the trustees 10 secure previous
deficiency had given their personal bonds for Sll3OOO
There a!sJ Il deficiency, ARISING nom ovtresu,
mate OF the value of their bank DncinE, OF
$1,000 making "A total deficiency VI Sl3l226 ~.
The trustee individual bonds are being defended Oh the
ground of want Of consideration Inc same r port
showed real estate for the purchase of which tao de
% sits mad ben imp evidently and Illegally invested at
"a cost Of s193OOO Ihis real estate mas been sod Dy
the receiver and brought only $4,000 loss OF S10O0CO
Nearly al of the other assets were OF doubtful char
after ami OF little value II was also charged tlat our
ius aud after March, $50, ne examiner, MI. Ked,
reported 10 superintendent Ellis That The annual
dcaclrncy 81 Income OF this Ddnh was over ftoVuo,
ard that there surplus uni out Of which these
annual expenses could le paid The superintendent hy-
Ing been thus officially informed OF thc cOhd,lOh 81 tne
bank Grained that 1t theieupon became his duy u
require the trustees to discontinue business ana 10 re-
commend the Attorney General to place us andrS
in the hands of receiver; but it Is charged
cause the bank to discontinue business, but
permitted 1t, thus insOlyent, to continue business
very detrimental to interest of the deposiiorS 1t
enabled the trustees to pay on the deposit;
class OF dcposiiors. About 90, new accounts
opened by dcpoSltors, ana many OF tne orgaI ae
postors induced 10 make further deposits therein
ted to believe tina; the bank was solvent and On April
10 per paid by the receiver has 81 CO been 0st 10
him. Ii Is also charged that Mr. Ellis, by h;s me-
GERS OF the bank in Illegally and iraudulently using
the moneys and property OF the bank TO be-
had expired and made it impossible to punish them.
That MIR Ellis i'll his official report March 80 1870 con,
cealcd the facts prcycntc IL from appearing that
he failed to perform his duty By tns NEGLECT ac Sors
will receive only 10 per c SnS OF ,nor deposits making
number Of other eharses are preferred aGa it1
ave Newly ork ami are follows Some lime III 1879
superintendent Ills informed officially by George
" kfid william r. AlIrich and others that the capital
stock OF the NcwYork state Loan aud trust Company
been impaired . Eiige extent tra' u thereupoh
became the duty 0f superintendent EllIs To cause tue
I'M aired a;itll be made good or 10 require The com
pany discontinue business, and To recommend the Az
onoy encIHl Deu proceedings 10 place SAID c0mpany
in tie hands "a receiver; tat nothing was done by sr
Ellis. The company lett in the hands OF he same
rarte, un Jan. 20, $50 when toe ilnmiIme1t OF cnp
ita ncIasl To about 80 per cent ana tue trustees
voluntarily Tcn pushed the Remaining Ten cthts on tue
dollar to a receiver tits loss beng mainly Que 10 tIe
failure Of Mr.. Ellis 10 properly perform his duy 10 oi
lerulcndcni; that ueSicct or duty on tie part
of MI Lis not to make at once eare'u eAa'''ono
this Institution. - ,--
IL is char, that on about Nov. l, 1879, snpeitn-
teudcat asked ~ rcspOnsipe person inter
Csc, LpancB' Bank report OF ITS condition.
bt the bsra never having b,cn examined the saletiu-
Icndenj could give no report ADJht th' same ilhe ni
attorney NcW-lOrk wrote To Tic superintendent ash
ing hat authority OF Law ihs bank was Coi- blsl-
ncsr AMI HsO asked 10 nave IL cAtiHti' tha' ih' ouP
nt.id al violation 81 lilo uiiy. never uadt any exam
nation ~ tnc bank which had Ong been nSolyeit ana
II all, Ia 1876. DepOsitOs lost aDOn F1OvoJO ~ II,
riucu of which might lave been saved N
tns Superintendent had examined the Institution
Mr. Mae. charges that superintendent Ems was o.
dciaily nliihCI by George ". Ecil on Nov ~,
1870, tL the Peoples SAVINGS BaDk OF New lDfh 'iy
Iui"Ncnt; that Tie assets were uhly ~ pt otA.
due the dapUsitoE, ana the tota Ihc"uc
was insufficient 10 pay The expenses; l.a inert "da u
ueiriun u nearly 900 lin 1870 anj the trustees Ehu'
IN violation o law declared and paid dlNldeni or wv
t,ud, out OF the deposits; that MI. Eis wholly iacu
cause bank discontinue busn, So "heeD! tue 1e-
posters sustained Srcal LOSSES. -. =, -, ,,t, =. T.
Ia rotation the security Bank OF NcW-l"rk wy, u ~
CHARGED tIat SUPERINTENDENT E.iIs Vas pfaohAy IL,
formed by John Mack that tLs DdnA was TcchlessD .i
uuwsely ed tn JcopaidZe Us capital ava ne
had good reason to know tbgt nom sboOOO 10 ssoooo
of the capital o bank hId been lost and uscu upon
tine slpei utcndcn the Importance OF NJ once cAHinhS
affairs assets tlat ~ reason O ho diiiIc 1i '
Ellis to make an examination hrccfOurihs OF The uc
posts were Loot. go ,c-, -.
IL Is charged in relation 10 the Trades Savings Bank Of
NevYOrk City that was brought 10 tne hhVwed.c1 81
SUPERINTENDENT Ellis on Nov IL 1870, ny George W.
Reid bank examiner, that IL was msOtc ana It, Affairs
were very badly managed, anu that Dtt"ceu tDat uatn
and Jan -, 1876, the uanasogso Vi tno Dank made