The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-05-17
srrERfNT rLIrs's DEFENCE.
The Third Avenue Savings Hank Kept Open
In Order to Avoid ~ Panic.

Tho examination into the charges made by
Mr.. Edward Malion against Supefnic mo- nj FL
liz wa- resumed y -tcrday by the Senate Bank
in, Committee I'm the st. Ncholas Hotel. Col.
4. sellers. bookkccpcr for MIR. Hurd, RI lcivcr VI
the Third Avenue Bunk brought with him the
10 Igor md othcr hooks, from crrics In which
he showed the cost " the banking house to have
been 5000 5000 la lS73. Another entry showed
that that amount lad Leon made UP to increase
thea-s. o. 10y adding si0O.oop to it, real cost.
Edward c. Dunn II former trustee of thr hank,
said that hc and Mr.. Tlrnncs-ey made n written
rcrort to the Bank Supcrut endcnt. wherein
they showed that the Third Avenue Bank was
in-olycnt in the carly part Of 1873. there being
deficiency then Of about siO0.0oO. There was
an objection to this testimony. and it was sus-
tainod.
Mr.. u. 4. Mcdonald testified that ne. as an ex-
pert. examined the books " the Third Avenue
Savings Bank In the fall Of 1875. shortly after
the appointment of Mr.. Carman as receiver hs
obtained from Mr. Ellis. in Albany. tahulatcd
statements Of the condition Of the bank. H.
said that Mr.. Ellis also furnished him n copy of
u private examination mndo 10y his experts in
March previous. showing deficit Of over 5000,
600 Mr. Ellis told him that he had not closed
tho bank i'm March because through the advice
~ . numhcr Of bank officers, h' was fearful Of
adding to the panic MIR. McDonald then said:
pert and found That i9r period 81 two years
aud hHlf prior to the fan of 1874. every diyi-
dena declared WIS hased On fraudulent entries
among tnr n~.nts. on ~ those fraudulent en-
! tries was trustees bonds for $4,000 that were
not n--cts. ThU-e bonds were only collntrrn's
| given un % contingency. which does mot appear
Ou the books. If ID $40 Appeared 10 would Joe
uu ID . the liabilities and ms tthe ass is. tn"
iot1l amount of iut r'st rr"iNri durin5 ~
/ psid amounted g. over s~u.Oun. All ilc fraulu-
/ Hn' .utries Wrr' uIuar'nt and 'uui' laN'hN"n
i'lu "ui Pm iin'i 9n ."iu examination 10y any
m" examination oi this witness closed the
Mr. \. l. S,.w RI. President Of the United
/ Siifr- Trust tlml.uy wis the fret witness
( lal,el flr the defence. Hcte-tined that shortly
after tlu ilMr. of lunran. sherman 60. Mr.
/ l.... H-b"i ms advice az 90 th' i'-i coui-" e.
pursue witt r-ir~'nee TO- the rhrl Avenue
-a, n-- Bank. IT, said ih1t the bank WIS a,
Nnuu .ul feeding ln the community, hr MIS-
a'ra.l ihHi morr harm than 80. 3 would result
,rur rlp. .nl. 70. The with SIS advised NJ" i'li.
tHhr o.. summary uoii q. int e. wait ultil tine
cN.it meut oyer thc failure Of penean. SHEER
+ ,.>lm.nat.n Nj stewart said that il lr had
4 hni ''nff.I oi 81" nuns when NE "'l' lUn Of
/ s2liulu WIS dis .oN rcd Dec would have al once
I Fl ri"l O. iN, nE d"i o.. and w"u have i"lt
T 10 MS uUi % NnAH lr -"ui al ihN ihNi- 90 ilc
rr.r rsui unl =; From N, ~ Ini report
' i,is 0oHd '"n 81 inr tan' ~ l,ii lN. WIN '-S
/ .lri that Doe Thought it was thu duty Of Il, Su-
I prrnfcnd.nt have then ch sod o. The re-
h0ns hod grown worse. rhc-c al ial re-
j. r,-. ID" -.lid, -h0 uli have been sufficient 20
/ laNr ru- the superintendent o. c.o-c the
-. " VI rr.s.a rr'~deut % the ll4nhauan
lHu, t..'l iihM Nt the .lur. of nui nu.
..tN hifi VS. fI FERENCE tNti.. .I'f ~ ' '-. ne
i"t' .n, dutip- -, "S- h.r "i 9 o
in''an' tno rgn wlen n' actual .e-- would
VI, W. u. Na' rr -i1n 4, am % .
~lNfi-- EH'. '.-fii.i f"li W. IIl- ..n.Itlf'tl