The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-19
MORRlsANIH BROKEN BANK.

HOW THE GERMAN SAVINGS BANK WAS MIS-
MANAoED-TRUsrEH SECURING THEMSELVES
DEFoRE THE COLLAPSE -rAcrs AND FIGURES
FURNISHED DY THE RECEIVER.
Tho Official investigation OF tho books accounts
Of the collapsed German Savings Bank OF Aorrisania
by the receiver Mr. William j. Best ana his assistants
has thus far revealed nothing that afford
consolation TO Its vicmized depostors. On the
contrary It has shown that the affairs OF the institu
ton during its atful aud precarous existence were
conducted IN decidedly loose and reprehensble
nor Among other things, It Is asserted that up TO tho
aiternoop OF February 2G, of this year uhe day on
which the bank, SUCH closed It's doors for ever)
deposits were received without hesitation whic, as
Offset TO this, Is pretty we'll established that
some OF those Immediately connected with the bank
including moro Of the trustees, not only took
timc by tho iorelock by drawing overy dollar OF
their deposits Just before the crash came but also
saw 10 1t that their friends did likewise.
-feF PUBLIC INDIGNATION.
AS suspicion OF this state OF affairs has beon grad
ually growing in tho minds Of the Germans at Nor
rsiana the feeling OF indignation against nearly all Of
the bunk officers has Intensified such a degree that
may hear them openly denounced OH all sides by
The exasperated depositcrA Tho delusive prospects
held cut TO the poor struggling class OF Germans who
- y. - a, -. 80 " -
suneTinS iIom mort" oo" 'hhic'co through tcih-
porary on resources during the autumn o 1875
h,y. ,roa,coa Il, ,,.,v ,ns,.,c.s .,s,r.,s,n.
SUITS Inc mention OF one Oh these VIII
suffice. A poor, old woman employed as jan.-
tress had deposited In the bank her little all
the savings OF life OF Toll, amounting to over 81 600
As no ole had whispered 10 her IN regard 10 the I'M
pending crash sue not only shared tue same ate as lie
rest Of tho deuded dspostors but also lost several
months wages which tho bank was in arrears to her
when suspended IL Is now intiuated that this moor
woman Is unable to pay the taxes alling due op her
humble abode. Is a'tts 1851
THE BANKS CONDITION.
When the bank closed tue au cunt appearing due OH
representing 81, 900 interest had been paid since
january 1S1G. On mortgages $50 $50 no
interest had been paid since July /, IS1d. These
sums, will DO seen, aggregated $5S $50, very
nearly OF the entire nvcstmons OF the bank
IN this line. From this cause thorc IS likely To arise
great loss. as VI the pirtics owning che
property had consdDcd u worth the amount vi tho
mortgage and interest they would not have run the
risk OF possible foreclosure. or those mortuages
$50 600 ana upward were made or assigned TO the bank
ny trustees TO mako good dsnciency which existed
Lcarly Two years ago and wcre not put on record
until February Of this year One oil the trustees
who bud shortly before the SUSPENSION assigned u
$25OJ mortgage AS hts share Of the deficiency
last year nolied tho officers Of the bank tn at he mad
SOLD that mortgage aud rspssigusd to another
US trustee Tor the losses that occurred previous
his coming into the bank. The town bends held by Tho
bank, and which tho receiver considers good are OF
The par vauo OF $2t,2oO aud tho market value Will
PROBABLY amo.nt 10 500 moro they nave be-
side IL 900 OF the bonds oil the town Of SoulhIield,
Richmond county, N. y, winch Eavo no present
market value they have been To litigation for long
limo past Tue Town suuorues having rciusod 70 paJ