New-York tribune., 1877-05-02
THE ELLIS CHARGES.
VERSION OF THE ACCUSED.
HIS ExPIANATION or HIS ACTION CONCERNING TIL
MECHANICS AND TRADERS BANK.

MECHANICS AND TRADERS BANK.
The Senate Committees investigation OF the
charges against Bank superintendent Ellis was continued
Yesterday at the 50. Nicholas Hotel Mr. Ellis was the
ONLY witness He testified that since February, 1873 he
had been superintendent Of Banks; preNlos 10 tnat
date nc was a considerable time Deputy state Treas
urer He thought that Mr.. Best, the receiver OF the
Mechanics and Traders Savings Bank in reality maze
ont the balance sheet sent the Governor showing
deficiency of $2O1 600 The accounts sent to the Cover
nor very inaccurate, as was the statement prepared
by Messrs Floyd and Gregory, which figured out de-
nciency of S1sl 600, when the real deficiency was
900 They had not counted the cash IN the bank,
SIOc OOO had not allowed for fixtures ana furniture
had overlooked credit account Of % 600 and had made
other errors Any statement that he had been repeat
cdIv called upou by either Mr.. Floyd or Mr. Gregory To
investigate the affairs Of the bank was false Mr. Bel
lamy's assertion that he had often asked MT Llls 10
to take measures protect the creditors OF the banR
was false He had received only one letter from MI
Bclamy. In October, 1874. Mr.. Bellamy called upon
him in Albany aud then for the first time his attention
was called to the affairs Of the bank He at once came
to Nev-YOrK and began investigation, which lasted
ten days.
In reply to Mr. Chapman's questions, Mr. Ellis stated
the valuations which ne put upon the Southern seour
Ties held by the bank in October 1s74 He declared IN
tne most positive that his estimates were sach
AS the most thorough and conscientious examination led
him to regard as accurate There nothing said To
him by any about the question whether the purchase
of any OF the Southern bonds by the bank wa illegal
lie then showed that the municipal bonds held by the
bank appreciated largely subsequent TO his examination
- -, .t,o ,,ol,o NJ tno banking bniIdiug and fix
lic 's'iih"'o" '''' '"'', " -
lures, with the lOt TO be SlOJOuO il th' autumn VI
lS-4 Mr. Chapman, having gone over all the assets OF
the bank. asked, In general was your valuation TOO
large or too small ?" The witness replied, Ny lnten-
tion was to make a conservative valuation ana be-
heved thai had dohe So ulu "'' 'u''. II y,
llcNpedicut allow the bank To 20 on MT l-!ll' su
M ;i5 ot s,,rposa and could not know that
~. - ,1,,,,. a., h, si,,oo . ZION riaco
he any sucA ShllhN'ee III ''iu'N '' ''" ' On - =,
After bis examination he wrote 10 the fIrs'nI oi lno
h,r. ,l,.iu, him IN dispO.c of the Southern securities
"'h"' "u''sl"S nun w ''t =. -, J..
no matter what th'if NalVe' sti'IlN tn". G, ~
,ccSSry for the trustees - u3K toU To to @ ,ar
th" dencehcS' ana IScoIiii, l'.u- .'' ~ rt f ti,
i,Cis IN eNl,t..,ss f Tan 1e-5 sio.,cG tgt
trustees committee as Oh III. L. L. % p IL I'D t,e
u" hE 10 me lm,n rI Ia Tho e:u iT,,,cut
H,i; nGy oi ; T incI on and So crcat had
i'" 1r' ,t,n, f some ,,,nnifal boIs held oV
ut'n Iie I 80, u " % .,rns ~ tnore tl,ii,
5000 Not only Therefore nag 10 ne II" rG3n ioT @ C,Ss s
the hlnK but any attciipl 10 81" :. ""i. ~, ai Wv
fcatcd in the courts From thS tnc Gniii Tie IUi' t
animation in 1876 which rCsUItcd III cusluE IAc hih,
MF' flle Itc',E,u ,i m Ti,d .,',,,nnr SiI EraJ was
tI'iC W. an! E.uL ,ccos oi,ay
llstlHtt'h u" i'ui' ,rI,;.i, ,,t,git
dnu 10 t,ft, iGfWtt ~ 1ii" 'i, sfatcma1t Inadr by
the bank in 1876 shovel reduced Surplus.
MIR Reeds next examination WIS i,5,i'i 5 y ,,.,,t "a
March $50 Ie'A "'s "'s "a, ' 81 a.,
rec ~ l,I ,i,t ,,,a an. rpiriurIi which s
Iic AIt"il, 90, Il D., ,s ,,GIf,,pt,u Il mad
stl iiiil ~, I,l..,, I,,,ortuerf fo allow
,ccII wy Io,,. -, -. -, ,,,cr m, rinsc a sny.ut
% ,r,.,,s isc mail io.ir more faan ca. il up Fu
n, ,, tl'r cos,.., nf "A b. caused a general shock
and general dlsrusf This concluIod the direct exam
iutuu of Ellis and short recess was taken aitc