The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-12
At every period OF SIX mouths during the banks
existence tbe amount OF deficit over earnings IS as
foIoWa.-

Notwithstanding these periodical deficits IL seems
that regularly as tue hall years rolled round the trus.
IN the secretary's minutes "ihe usual dividend"
There was tnus pal1 as DIVIDENDS during the banks
existence the OF 5000 As. The trustees during
said period appear 10 have contributed to
sustain bank tue Of $3.50 in
Genet and carried on the books as an asset OF The
value of $1,000 President Genet resigned suddenly
IN 1873 leaving behind him to his credit on tho books
substantial balance ana an interest IN N ortsase
held by the back, making together about ST., 900.
Tue bank records around about the time OF his depar
ture not as satisfactory MS might be desired They
absence OF leaves from the dayb book deposit
books ledger &C., and accounts that had previously
been on such missing rewritten in different
handwriting on other pages aud evident interlinea-
tions and erasures Similar lnterneatons and eras-
appear also in the sccretary's minutes OF the
meeting of the Board OF Trustees, held December o,
1S73 II Is clear that these irregular operations
directed solely at Mr. Genets accounts but 1t IL
impossible for me 10 determine what effect they have
had upon them. Mr.. Genet has not nt TO hand
tn his uank BOOK that II may be compared with the
books IN my possession
IL does, however. appear that Mr. Genet's APP
parent credit interest OF about SIT 900 was sppropr
ated by the trustees TO tho banks deficit and
losses. Although Mr. Sibey, the accountant, Is con-
strained by the records 10 count Mr. Genet as pres.
ent creditor hope to procure satisfactory evidence
that the appropriation was warranted in fact. and
that, consequently, Mr. Genet snould be omitted from
the list OF creditors 10 the great advantage OF The
other creuilors.
CHARACTER OF PRESENT ASSETS.
In order 10 explain what represents $4,000 OF assets
Ia my hands must state that on september 80, 1870
the bank purchased ten 900 bonds OF The Alabama
$o691 &C. Wnen three halt yearly nstament rs OF IN
terest had been received by the bank, the railroad
company made default IN payment, and thereafter the
bonds had little or market value. They were, how
ever carried by the bank assets oil the value of
$4,000 until January 1876, wnen your depar ment
suggested that other securities should lie subsl-
tuted therefor. Three OF the trustees promptly acted
upon this suggestion. President Lawrence B. Kerr
put IN s4OOU IN cash Vnis being IN addition 10
$1,000 wnlcn he generously contributed at the
same nme), and Wee Presidents Francis J.
Twomey ana joan McQuade, their bond ana
made ana the worthless railroad bonds Withdrawn,
the books the bank show that the unfortunate
investment brought after all profit OF 81 500 tho
bank, aud that us dehct reduced by that
This profit was based Of course upon the natural as
Sumption that the bonds anu mortgages good
Tor Their face. The properly mortsaged by Vice
President Jonn McQuudc Is situated 10 the twenty
fourth ward oil tins CITY, and IS unmproved. | am
satisfied that the lots worm more than be-
tween 1000 ana &, 500. As Mr.. McQaade mad a bal
nnce to ms credit IN the bank lie mas been regu-
larry charged with the accrued interest
In January, 1877, Vice President Twomey sue
Ceedcd in getting trustees cancel record the
mortgage ne haa 50 gwen ana TO accept III It's place
another mortgage for the same amount, but other
properly BY TINS arrangement the vice president
managed to pass of on the bank a mortgage upon
properly which he mad valid title. No exanlna
tions the titles made either instance
Vice President iwomcy, let mo ADD, is not only in
debtcd Tor all accrued nercs, on this mortgage, but
also on account OF an oveidrait made by hm. When
he sent IN his Resignation as wee president and rus
Tee, IN the carly part OF this year, he demanded the
return OF the bond and mortgage, not because OF
Rny value there them, but because
he claims, they merely loaued 10 th.
bank temporarily, aud were to be returned wheneve
he desired. refer thus particularly to these w o
mortgages because, however snadowy they may be-
They constitute with certain claims against parties Tor
.vardrafts and Win the SAFE furniture and nxIures
The substance OF the assets ol the institution.
MEssRs. JONES AND M'QUADE
On the Gay the bank Was closed trustee Charles
J mes was indebted account OF overaral in tho
I'm ~ IL, O5l 63, and Dir. Thomas +. NcQuade
Ike account in the sum OF s54lo %, making together
$d,4sO 2S. Alter the INJUNCTION oruer was served
attempt was made by tnose debtors ana ny Wee
President John McQuade Aud the arm Jones Il
hcQuade, who had credit balances IN lhe bank, 10
''pooi" the Tour accounts ana cfset The
counts OF the Two who creditors by tho
accounts Of the two who were debtors, and then BY
putting IN Que small check to clear all parties
ns The bank was concerned, and 10 settle with
pthcr at their leisure 1t operates nJurously 10 tho
Cther creditors anu - Clearly an attempt TO create
preference. As The transacton took place after the
service OF the injunction order entry thereof sp-
pears on the books, u being shown merely BY the
.proot sheet" prepared alterward and checks
OF the creditor parties winch nave come INTO my
hands BY rcpudating the transaction the bang Ia
blties VIII OF be- increased Ivy amounts due
Voc President McQuadc aud Mcssra Jones n Nc
QIade, put us asses WIN DC augmented by claims
against Trustee Jones aud Mr. Thomas T. McQuade TOR
tho Iul amount o their ovefdraita
In addition 10 tie liabilities men doncd the
nexcd schedules A and there are others moro or
less contingent 10 which must refer. | have
ceivee notice vi clam on ben All OF Peter Virgins
receiver oil J. Mob. DAVIDSON n Co.. for 81, 800
count oil zone No ~ ourg!ar-proof safe, aud hnd
That suit is now pending against the bank Tor that
amount and interest inc banks late officers treat
bhs claim Will Indifference, and cops'dcr the suit
vcxatous and without merits; Tor II 10 recorded IN
the secretarys minutes that after tho sale had
hysteriously deposited III tue banks Office Mr.
Genet called the attention Of The Board to the sale
the bank which he remarked would not cost thu !,
bank anything, he would donate II as present t.
The bank. The present accepted and the EXPIRE
sion oil thanks tendered for aud valu
bio present"
soNE RAISED CHECKS.
Then another claim has been presented by tho p
duce Bank oil this city sl5,6o7 3D. with into, est
from May anu June, 1876, and i've arc now ye
Ing mere on account thereof. The claims originate
folio~sln the spring OF 1916 Que Horace +. Tai den
opened account IN the YorkvIlle savings Ba nK.
AFTER dealing With the bank snort time he prei,eI ted
TO Mr. Gilean, the secretary DRAFT drawn Dya c,JuD-
try bank one OF city bap s. Mr. Gillea u, act
log as collector Tor den, relieved tho amount OF the
draft from the Produce ~ AK 10 which the Ysrkvic
csvihRs BANK hsa an v.ccount and then de posted
Inc same 10 Iiider.'s orouit In our institu-
lion. ibis operr.tion repeated nno
lines within period OF about month.
AFTER Tden had drawn out the amounts so deposited
o MS credit ID vLe Yorgve savings Bank ~ was DIS
covered tnat o. OF tue drafts had boon altored or
'raised'' troy. Insignificant sums TO goody proper
iona henr the claims Both cases are 0 u the cal