The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-01
SUPERINTENDENT ELLIS TRIAL.
CONTINUATION OF THE TESTIMONY IN THE CASE
BEFORE THE SENATE.

CONTINUATION OF THE TESTIMONY IN THE CASE
BEFORE THE SENATE.
SARATOGA, n. y, July 81, 1877.
In Ellis trial to-day the opening OF the session
Of the Senate Mr. Best receiver OF the Mechanics and
Traders Bank corrected points Of his testimony
regarding The time required ascertain the condition
OF the bank. On his discrimination by Mr.. Nc
CURE the said the depreciation of stocks caused
the Insolvency Of the bank. The bank held Southern
States stocks that had paid the interest He said
sometimes clerk would take fifteen hours to In
vcstgaic a single dividend
Isaac Smith, clerk in the department, produced
the report OF the Mechanics and Traders Bank for
January, 1875 II was he said found TO be incorrect
have the schedule filed out; the pres
ident of tho bank brought the answer up to Albany
saw Ellis II was unusual reports for
correction; additional report came February 70; II
was sent by the commission to Examiner Reid In
March, IN May he reported and IN June Ellis had the
Attorney General proceed to close the bank the item
OF 900 IN the paid TO examiners meant Inc
sum paid two trustees.
Il. l.. Lamb, Deputy superintendent was called ana
."o An rsSary ss
letter OF March shows a dehciency. The report
states that there is deficiency IN the assets OF
SOL sos 80 and In the income Of S3O.5lS lS Several
letters written during the examination were read He
told Mr. Ellis that he did not think the bank officers
were honest aud read letter TO the Attorney General
dated June l, 1875, 10 close the bank
Mr.. Rod, Bank Examiner, was called and testified
that ne had several conversations with Mr. Ellis in
gard TO tho condition Of the bank
Frederick =. Bellamy was sworn, and testified that
he In behalf of the trustees, entered complaint against
the bank TO Tho Attorney General
senator McCarthy asked Mr. Lamb IL it were possible
for the superintendent or Deputy OF the Bank Depart
men TO have an actual knowledge OF the solvency or
insolvency OF oil the savings banks 10 the state.
Mr.. Lamb replied THAI their only knowledge is re-
ceved through the bank reports
Halo Kingsley Clerk OF Albany county. WIS sworn,
ana testified that no complaint against Inc Mechanics
and Traders Savings Sank had been filed in Office
Mr.. Tracy then read the commlss on Of tho Supreme
Court 10 William j. Best OF the Mechanics
The Senate then took u recess until Jour o'cock.
THE ABINGDON SQUARE BANK
At its afternoon session the Senate took up tho
Abingdon Square Savings Bank
II. l.. Lamb, deputy superintendent, produced
and identified reports to go on record Tho
Der I. 1873, shows deficiency in the assets OF
| 81 567 %, and deficiency of
$lSo2 10; the semi-annual report, made January /,
1874 showed excess OF asscts OF So, 056 OS; the
report OF the officers on July l, 1874 showed AN
cess OF assets Of So ol "a, and the amount due de
postors $169,6SS so; in tho regular report of Janu-
AIRY 1875 amount due dep9stors SIG 066 II;
the excess Of assets, $s,6S7 %; Mr.. Reid made
ST. SOP TO- Tho annual report OF January
1876 showed the amOuntdue depositors $l43 1902
excess OF v assets 2o7 5s; in sae letter 70 supon.
he finds deficiency OF 1873 81 /; Lamb sent this TO
Ellis out OF town. in letter 10 Elis July 10, Reid
he found bogus checks put in TO swell the assets
taking them LETT deficiency OF 81 900 more;
showed this TO Ellis, but don't remember anything
that said; Ellis soon went a summer vacation
OF four i've weeks; letcr OF Reds, July g. said
some OF the trustees Of the bank told him It ought 10
have been closed time ago. they intended
having meeting TO put IN The hands Of receiver;
| witness notified the Attorney General aud had the
bank closed was called on By lawyer asked b i'm
to stop proceedings as to allow the trustees make
to Reid to sec i ihs trustees did as they promised;
Reid wrote, August g. that he had great confidence
the banks real estate; the trustees doing as ex
| pected, the bank was closed August 10
On cross examination Lamb said he only had Rcd's
letters up July O. 1876 that tho bank right
| o; 1t was sent out OF town; did not remember tho
conversation about the bank; cannot say # Ellis re-
ceived the letter of July 26 until he from hts
cation not; far witness knew II had been
tomary with the department before Ellis time to al
low weak banks to 80 ON aud make the Deficiencies
Senator Gerard asked II any special examination
made between 1873 and 1875, and ii showing surplus
OF assets and deficiency OF income in 1875 did not
show the bank weak The witness said II showed
| large expenses; he said Mr. Reid had general direc-
tlons to watch weak banks.
Senator vedder asked If any weak banks allowed TO
come solvent The witness replied In the Affirmative,
| and SAID he thought the Abingdon Square Bank did
| not have the right kind of trustees to II.
In reply to Senator Mccarthy Mr.. Lamb said that
circumstances night favor allowing a weak bank TO go
on 10 recuperation Mr. Mccarthy SAID he thought it
| wrong to allow it,
In reply to senator Prince Mr. Lamb said he tried to
weak bankg
| In reply 10 Mr. Chapman witness SAID II was the
policy Of the department to put bank In the hands Of
receiver when deficiency was not made good " it.
said banks had available fund which they used
II banks used too that way they werc checked.
The Senate then adjourned.