The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-03
SUPERINTENDENT ELLIS TRIAL
EVIDENCE ELECTED BEFORE TIE STATE SEN
THERMOMETERS TOWN BONDS AS BANK
ASSETS

EVIDENCE ELECTED BEFORE TIE STATE SEN
ATE-woBTHLEss TOWN BONDS AS BANK
ASSETS
ALBANY. N. Y, August 9, 1877
The Senate this morning examined Marcus T. Hunt.
Deputy Attorney General. who said he put The word
''settled" register OF tho against
tho Peoples Bank. testified days since; did SO
the general understanding that trustees would
put up securities did being instructed by
Ellis.
Lemucl Clark pookkeepcr OF the Loaners' Bank and
OF the receiver was called
Mr.. Chapman objected TO his testimony Tho qucs-
tiou was whether Ellis could enforce tho law
to make this bank report than whether he neg
ligent He finally Withdrew his objection and the ex
animation won't Witness said the bank had large
transactions with the Continental Insurance Company
p'cdeng $2oi 900 worth OF railroad bonds and stocks
for $4,000 On his cross.examnation he sad he saw
q man called examiner In the bank several times;
remember seeing him tho bank or hearing
that nc had been there for the purpose OF testing his
power over tho bank
To Senator Northumberland tho bank failod be.
OF trouble among the trustees they proposed to
sell the charter.
To Senator Prucc--They expected to receive
$3.50 900 for the charter OF tho extraordi.
nary privileges II contained; It was a largo pawn
brokine establishment
H. and read from Mr.. Tracy did consider
l.oaners Bank subject TO chapter 2a OF the Laws OF
Mr. Warner. general clerk in the Bank Department,
testified that commission was issued 10 Reid as Bank
Examiner March 81 1876; IL was returned May II,
with a note that the bank refused TO be examined.
lThe commission, which was missed from tho lilies OF
the department. has since been produced beiorc tho
senate Commitcc
To Mr.. Mct,uiro-Tho commission is printed form
and can be duplicated
rns GERMAN SAVINGS BANK
Deputy superintendent Lamb produced tho SENT
ANA, dated January l, 1878, showing excess OF
assets amounting 10 S27352 81; on April a. 1878 Mr.
Reid made special examination AMI found deficiency
oil $77,3l4 68; difference the estimated value OF
town bonds and railroad stocks caused this Dcccm
Der %, 1875, Ellis notified the trustees that the
!. 1870, tho bank reported ar oxcoss Of
$Il,s77 and on January 1877, excess of sl2 o9l
part Of February, 1877, and hcld an interview with
Ellis; don't know what he ss,d; letter from Hail.
put IN bonds ami mortgages aud made the deficiency
| good no othcr letters wore on nls excepting one
from Ellis 20 inc attorney Genera, renrnary - is1a
| that had on hand large amount Of town bonds
which hnd been repudatcd and in default OF interest
for several years. tho bank was put in the hands OF
receiver in July, 1871; the depositors pctitioncd
| against putting II into tho hands OF a receiver.
In reply to Senator Gerard witness said there was
evidence dcpar OF exam nation except by
| Reid; Ellis made no statement vi his visit
In reply TO Senator ST. John, he said thcro was no
proof OF tho deficiency bong made good except from
! reports OF tho bank
| Isaac Smith, clerk of the department. testified to
the examination o. the report Of January l, 1877; he
valued tho bonds less than tho trustees did, and thus
| made the deficiency.
| WHAT THE RECEIVER FOUND
William j. Best receiver of tho German Savings
Bank Morrsania testified that tho amount of assets
he found was Sill 022 II he did not estimate SAL 900
IN town bonds; the trustees had put ia bondD and
mortgages $33 800 and cash Sls,S50 to mako up tho
deficiency; tho bank made loan to the Montclair
Railroad New Jersey In September 1877, taking first
mortgage bonds as security and made further loans
the snme road In February and September 1873; only
$4,000 wero paid these bonds; ho read from tho
trustees book Of minutes from December 90 1875
noting the visit Of Reid and showing the anxiety OF
tho trustees 70 mako up the deficiency; IN their
efforts TO savc tho assets several OF the trus-
tees contributed to that end; on February 20
1871 counsel and ono trustee sent to Albany to
consult Ellis; They reported that Ellis said ded-
cheney must be made up; said no would pay tho depos
itors fifty per cent tho securities OF the trustees
good aud II tho town bonds paid he could
! pay sixty or seventy per cent.
On cross examination he said that he found all the
reported January l, 1877; the deficiency was
due to the diFcronce In the imitation Of bonds; no
found there were S230000 due to dopostors; during
tho last two months $4,000 wcro drawn out by the
trustees and Others
Al the request OF Senator harris the receiver read
from the minutes the cost Of lunch, $75 and wines
STA, when the bunk building finished, which wal
ADDED TO the building account Adjourned.