The New York herald., 1877-09-19
Deficiency ci assets e4,ol4 70

Deficiency ri assets. sets................. S6i,0 OLA 70
6sMARkABLE TRANSACTIONS.
In addition to this dismal showing the examiner
stated that he had discovered sl3 900 ertca es
of deposit issued by the bank which John Quincy
Hoyt one of the trustees, had borrowed money and
instead OF the proceeds being paid to the bank they
we're pas sed to his individual credit Mr.. Hoyt, being
present. endeavored TO explain the transaction and
in fact, good many others in when was engaged
but did not succeed to the satisfaction o his
brother trustees. The Bank Examiner then passed TO
the 'items called cash, which OF doubtful vauen
aggrcgatng s24, s52 H. They consist, first, of three
bills Of exchange drawn by A. ii. Dewing Robert
Mackensic OF Dundee, Scotland, due August 2g 1871
each Tor 81, ,00O ana one tor 81 800 due August 81,
returned not good, and still not protested About
the 5ih day of February there unpaid drat on
Boston mado by one McKnny, late partner OF
The above mentioned trustee Jonn @ Hoyt.
McKinDy, 1t was said, was about going into bank
ruptcy, and the bank pressing ior an arrangement
lie gave them bills on Mackcnsle. of Dundee, for
$500 These bills when due were not PAID, and the
Produce Bank, which discounted them, looked to the
Clairmont Bank tor payment IL did So and then
placed them liz their money drawer so mucn
icashl" This sort OF thing was continued also III re-
gard TO three bills OF exchange drawn by TIE same
these were probably renewals Then came n note Of
John b. Atwater due August 20 1871 and ndorscd by
John q. Hoyt Urustee and David E swan secretary
discounted by the Produce Bank Tor the benefit ot
Hoyt-a check OF the latter dated August %, 1874 Tor
~ 500 drawn on the bank, and a ticket for 81 500
:narges Hoyt or his Charles III. ior that amount
bald ior account OF Jotn O Hoyt Then there we're
such res checks Tor $1,000. $780, and other checks
held as 'cash" Uy the bank.
cnolCE BANK coLLATERALs.
As security Tor some o these remarkable leans these
Diccrs guarding sacred public trust and custodans
o the money OF poor people, accepted sucn precious
security the following 300 shares ol the larry
iown Heights Land Company, f4s1 90 certificate OF
new stock in the New YORK ana Boston Railroad Com
pany, sixteen shares Of Mahopac Land Company
stock, ten shares Republic Lilo Insurance Company;
Charles j. Pussy's note, overdue and unprotested tor
IN.
pther due next January, Tor So 500 with receipt OF
W. Il. Cornell Tor ten bonds OF the town oi Phelps On
lario county, ~ " as collateral which rcpudiated
an illegal issue. Protested checks, bills Tor work.
or printing and stationery instead OF being charged
TO the proper accounts, were counted cash swell
Inc amount OF the assets by this precious system OF
bookkeeping.
THE TRUSTEES SURPRISED.
This, then, he story to which careless, criminal
dcrelct trustees had 10 listen yesterday. Mr. Knapp
told the reporter alter tue adjournment OF The meeting
that the condition o aiMrs Was painful surprise 10
him. He had supposed the business OF the bank was
conducted IN "A conservative and sale Ho had
previously every confidence IN Mr. sherman Broad-
well those who taking active part 10 the
daily management OF the bank but hts confidence had
been rudely shaken by the events that had taken
place. dc wanted Mr. BrOadwe held TO strict
accountability in regard TO the disposition OF the funds
belonging to the institution, aud as for hmsei he
would shrk 10 responsibility that properly attached
to him. Mr. Marsh said:-"Mr. Knapp and M ysolf have
been appointed q committee TO investigate those
cloudy AFFAIRS and we snail do so speedily and
tccntiousy rendering our report TO the trustees tor
their guidance"
REPURrER-ls there any chance OF the trustees and
others interested advancing enough cash make good
The deficiency In assets IN order TO secure the depos
torsf
Trustee MARsn-Under the circumstances no. We
have determined let the state wind up the bank:
ana whc at nrs, IN ignorance OF tho real iacts,
rho ught the act of tho Examiner premature and
harsh we are now convinced II was good thing to
close tho bank.
KsroRrEn-why did not the trustees look into tho
Affairs more clOselyY
TursrEE-Wc had our regular meetings and received
ycunrts from the vIcc president ana Secretary swan
and had every conlldcEce In their ability ana Integ-
rty. ..-., -,
RrroRrER-How do you explain the absence Of Mr.