The New York herald., 1877-09-21
CLAIRMONT BANK.
A Bit of the Hidden Presidents
History.
AN INJUNCTION ISSUED.
The Statements Of Expert Accountants
irresponsible Management.

irresponsible Management.
The terrible state of confusion in which the Clair
mont Savings Bank accounts were plunged did not
seem 10 he much clarified yesterday. AT an early
hour in the morning Mr.. swan the incuipated vice
president. was present IN the ONCE ana was asss'eu
In examining the accounts by youth oi ABOUT se'ep
years Of age who had previously acted as cerk
Ior Mr. Ball Numbers OF depositors continued 70 W.
rive at the closed doors OF tho oanA tne ouk Oh "ho
seemed 10 be from the country, and most oi them
we're stupcned reading the notices OF the aiiure
pasted OH the door,
Mr.. Edgar Garrcttson, said to be an expert account
ant had been engaged by the Committee OF Trustees,
Messrs Marsh Knapp and Cornell, to examine the
books with a view to explain the manner In which
the depostors had swndicd and tho trustees de-
seived Mir. Garrettson said he found everything in
ipextricabe confusion and all he could hope was TO
present of clear account Of liabilities and
assets by next Monday.
MR. MARsH's STATEMENT.
MIR Samuel Marsh, one OF tho trustees OF the bank,
is on the committee OF investigation. He said TO the
reporter that Mr.. Swan present at each meeting Of
the committee and seemed anxious to do all in his
power 10 clear up the mystery oil tho deficiency out
80 far continued Mr. Marsh, he has failed to discover
where the missing moneys have gone confess, as
state oil affairs Not o the trustees suspected any
irregular business and when the proofs were brought
10 our notice by the Bank Examiner we were generally
incrcduous to the accuracy of Mr. Orvs' charges;
but think all admit that Conspiracy has been
on foot among somo OF those interested IN the bank
10 not only divert legitimate business OF the iust
to channels iarthcst from legislative intentions,
but to benefit themselves and their particular friends
at the Of those who have the largest interests
at stake here. Now, IN regard TO this nvcstigation
would say that the men on the committee are earnest
and beyond reproach; but, speaking for myself l
the books and tracing each individual account TO lis
OF the rascaities which ave placed US In this position
before the community"
Mr. Knapp another member OF the committee OF
trustees SAID 1--WE have all been deceived by Broad
well. No suspected he had ever been engaged in
irregular transaction, and now accounts reach US
IRON New Jersey in which his name Is unpleasantly
associated. | think, however," said Mr. Knapp 'that
the Examiner has failed to give US credit Tor the iol-
lowing items:-
Accrued interest. So 59S II
Checks out for collection. 500 80
Check books and stamps. 900 o0
Due on furniture and fixtures not charged up 0I0 w
Rent and interest not charged up......... ,1o1 W
Expense items not charged p.............. 2lO 90
Total. 50, ,3ss 49
.srhere is perhaps too, Mr.. Knapp hopefully ex
planned, some mortgages and miscellaneous assets
upon which a considerable sum more than Mr. Orvis
allowed may be realized; and you must remember
one thing, Mr.. Orvis, IN mis- statement 10 the Bank
Deparlmen will state how much each article
worth, regardless altogether OF what 1t cost US. For
Instance, II he finds $50, 900 bond which he Knows
SIS 0O0 and $40, 0O0 which the article cost
Al the most, can only see Sl7,o 900 not accounted
forh
THE pEposIroRs REPRESENTED
Mr. Vandcrveer, OF No. 25l Broadway, has been
retained counsel by some OF tho deposiors. He
was found at tho bank yesterday morning and said,
III made application to the trustees, on behalf of
my clients, Tor permission TO examine the books,
papers ana vouchers OF the bank. The permission
accorded every facility gwen to pursue all
legitimate inquiries cannot answer at present your
question as 10 what plan we sall pursue; yet believe
he full me aat.a a Of
brought to light"
Mr.. Hoyt whosc curious letters to Vice President
Swan published IN the HERALD yesterday. well
his explanatory card appeared at tho savings bank
in the morning and seemed in great state OF excite
ment From being few days ago the earnest apollo
gIst OF Mr. Swan he HIM Of the rregu.ari
lies which have brought on the trouble 1t seems that
Dir Hoyts confidential letter, IN which he limited TO
Swan that If some things were not ''hcll would
be to pay had upset the calculations oil the apOogst
and when he dashed his fist yesterday on the table at
a meeting of The trustees aud declared that he was q
victim there was smile on the face OF every CON-
mitteeman.
PRESIDENT BRoADwELL's PAST CAREER.
The reporter having accidentally heard that the
chief OF tho broken bank had history not generally
known to the public ana the deposlors OF the Clair
mont savings Bank, but which known Mr. Ogden,
OF the firm OF Kendall Ogden No 40 Pa:k place. and
who is also the representative OF the New England
Glass Company, called upon the latter gentleman at
his place OF business during the afternoon. In the
conversation that ensued Mr. Ogden said IN elect
"Yes, know Sherman Broadweil, the president Of
the socaed Clarmont Savings Bank know him to
my sorrow, and have no DOUBT that hum
oreds OF residents OF Morristown, N. j., will
give you the same account of hIm | can.
lie was the head and front oil the Morris and Essex
Mutual Coal Company which was starred few years
ago (aDout seven. think), and there scarcely
man. woman or child who did not invest few dollars
IN the bogus enterprise. The capital stock Of the
company, think was $3.50 00O with the privilege to
increase to $500, ,000 Nj Broadwel not only himself
but through many others in Morris, own, solicited
scripnons 10 AID the enterprise. The pills were sugar
coated subscribers we're TO receive coal at cost price
from the company's mines, beside dividends their
stock, which must necessarily be enormous when the
mines were In full working operation. Widows,
orphans, servant girls. Old and young men were
Induced TO subscribe 500, 500, 900 any other
sum or sums in order to loster this anti-monopoly
10 the grasping coal companies. subscribed S50-I
was young fellow then; my father Clergyman, put
in 500 to help along the good work; widow lady
Madison invested 500, all tie money she the
world and people everywhere in the neghborhood of
horristown dreamed OF sort OF bonanza wealth grow
ing OF the Morris and Essex Mutual Coal Company
Mr. McCaulcy, Methodist IN MorrIstown, a very
efficient solicitor of subscr ptons for Broadwc and L
was said placed a good deal of stock. Whether ne
ever got his Investments out really say The
whole affair seemed to be gigantic fraud. never
got dollar OF my money, my father never received
dividend, and, as far as can learn, everybody
the same boat. The Indignation was so great that
Sherman Broadwe had to leave Morristown and the
neighborhood, and now this man turns up as the pres
dent OF broken savings bank"
LuNCuSG DURING SUMNER HOURS.
Mr Disosway, one of the trustees who seems so dis
satisfied with the slow examination OF the coViton OF
the bank, said 'the former examining committee was
IN the habit OF counting the cash In the bank and find
in the forenoon say $40 900 Then OF the officials
would suggest that they should go out to lunch
con, and, supposing ali was right, tho committee
would do So leaving the examination OF tho securities
for the afternoon. While the committee would be alb
the officials would take the cash and release
bouds that mad been hypotnecated and when tho
securities were examined tncy would be found In their
place. Having no suspicious OF course the would
not be again exam nod. What trustees, having no
suspicion, would ever thnk OF tricks like This 20
Mr. William J. Osborn, the exVice President, who
was accused Of having deposited tue nrst Of Jerc.
JohBson's vaueless cnecks, indorsed by ID. n.
Beardsley, communicates TO the press Information
that he has nothing to do with them that he had pre-
viousy deposited such checks before that person
Jailed aud had taken them all up He did not, he
lays, Introduce Beardslcy, as stated to the bank,
Tor Beardslcy knew enough to introduce himself The
foil0wiDg card IS jssued:-
Neither Of the undersigned have in
had any dealings with the Clrmont savings Bank
- much surprised the general puglc that
checks notes bearing signatures should have
found among its assets. JERE. OtiNSON, Jr.,
II. ~ BEAkDsLEY
INJUNCTION