The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-15
THIRD AVENUE SAVINGS BANK.

INVESTIGATION BY THE SENATE COMMITTEE
INTO THE CHANGES AGAINST BANK .sUPERiN-
TENDENT ELLIS.
The Senate COMMITTEES resumed their Investigation
Of the charges against Bank superintendent Ellis yes-
tcrcay morning at the ST. Nicholas Hotel The charges
were presented to the by Mr.. Edward Mailcn
OF the depostors in tho bank. and loser by its
failure OF over $4,000, and are as follows:-
That Do Witt c. Ellis, Superintendent OF the Bank
ing Department. was informed by written report oil
George w. Reid. tho Bank Examiner, on or about
March 2s, 1875; that he had examined the Third
Avenue Savings Bank, enc 22d and I'D oil March,
1876, and found the bank was insolvent
That its deficiency $2lS, 226 81
Aud that its trustees with tue view OF cover
ing up previous deficiency had given
their personal bonds the amount OTIS. u.s. 900 %
There was also previous deficiency which
wus attempted to be covered AZ and con-
cealed from the public by adding TO the
cost OF their bank building the sum off,. 100 900 90
Making total deficiency S434 226 81
The report showed real estate reported by tho
bank as worth s5ss 900. 1t was sold for $4,000
showing loss OF nearly $500 600 Mr.. Maon charges
that Ellis allowed the bank to run on under the do
lcency until the September, and thus gave the
directors time notify their friends withdraw their
deposits and save their money IRON tho loss that soon
overlook the less favored dcpostors.
THE EXAMINATION.
Al the examination were present tho members of
the Senate committee, Senator Coleman presiding
Bank superintendent Ells his counsel, Mr. Chapman
Mr. Nation and his counsel. Mr. Dwight H. Oimstead.
Bernard Gormln deposed that on March -, 1915. he
deposited 500 IN the bank. and on September 10 am
other 500 This 10 show that the Bank Superin-
tendcnt allowed the bank 10 continue dong business
alter II was pronounced insovent
jacob Ritter on July Il, 1875, deposited 50, $50, Of
which he had OILY received back fifteen per cent.
Edward Maou, complainant in the case, August
49, 1875, deposited So, 200.
an or nat
he had first examined the condition OF tho third Ave-
nue Savings Bank on April IA, 1878; he made the ex-
animation under instructions from MIR. Ellis, Bank
superintendent, and was assisted by Messrs W. II.
Aldricn and Isaac II. Broome at this time Mr.. David
Morgan. the secretary, was examined under oath and
the Official report embraces his answer; at that tmc
according to tho report, The bank had $264, 100
10 oonas anu ane ASSET, s Were
creased valuation OF $50 OBJ on the real estate. In
March, 1875, witness found deficiency of S2l9 O0O
also found bond OF the trustees Tor 600 mold ny
the Banking Depart ment which he counted as
the bond male TO cover aiormer deficiency prior
to Mr. Ells' appointment 10 Office. Mr.. Omstcad
asked how witness ascertaned the value OF tho real
estate. Mr. Chapman objected Mr.. Omstead SAID no
proposed TO snow that the real estate had oeen put at
nearly half million more than it was WORTH making
the deficiency over $3.50, 600 Mr.. Chapman admitted
the deficiency OF S29l 900, ard that Mr.. Ellis had not
would be gwen when the timescamc The question re-
garding the value Of the real estate was finally de-
clared admissible. Mr.. Reid said that he asceranod
It's value by taking the statements Of the officers OF the
bank; he had also made some incidental inquiries !;
he did think the market value OF the property OF
the bank It's true value TO the bank. Mr.. Ohm
stead asked the witness -sDid you consider that
time that the bank was solvent or insolvcnt?' Mr.
Rod answered that the time oil the examination the
bank was insovcnt MIR Olmstcad asked II he knew
any reason why the bank should not he closed up.
Mr.. Chapman objected, and the question ruled
out. On crossexamination witness said that he had
been appointed bank examiner under MI Rowland,
and during his service he had not estimated any in
crease The roal OF the bank except tho
houses in Forty-sxh street. Witness had lie I'D that
tho books or the bank $l0o 900 had been added
the OF the bank building, make the assets
appear larger by SO much ana TO cover uD deficiency
this had been done years ago, before Mr.. Elis was
appointed superintendent
RECEIVER HURD EXAMINED.
Mr. Samuel II. Hurd, receiver Of the bank, testified
that he took possession OF tho banks affairs De-
cenber 1885, the minutes OF the Board or Trustees
OF the bank produced by witness. Mr.. Olmst cad
offered in evidence resolution OF the Board TO close
tho bank September 20, 1875 passed tho pre-
vious day. Witness said that 7l9 new accounts had
been opened between the examination in March and
the time the bank WIS closed.
Mr. A. Sellers, Of the bank testified that
between March 20. 1875, and September % S3l6079 81
deposited III the bank
Bank department, testified to having examined tho
real estate they took the estimate OF former
nation; the deficiency was large that they made no
inquiry about the real estate did not know at tho
that the trustees had added 500 900 TO the of tho
bank property considered he bank at the time OF
examination entirely insolvcnt
The examination was then adjourned to this morn
ing ut ten O'Clock.