New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-08-01
THE BINELNG DEPARTMENT.

TRIAL OF SUPERINTENDENT ELLIS.
FURTHER TESTIMONY BIFoEE THE SENATE ~ FF-
GARD To THE MECHANICS And TRADERS say
INGs BNNR-rIE ABiNGDpS ,QUttE B,NN.
SARATOGA, y. Y. July 31.-ln the Ellis trial
to-day at tie opening OF the session Of the Senate Nj
Best Re- eiver Of the Ne hinic- and Traders Banb cor
rcctcd points of his testimony regarding the time
required to ascertain the condition OF the Bank ON Bis
coss-cxamiuaou by Mr.. Mcclure the witness said the
depreciation stocks caused the Insolvency of the Bank;
the Bank held Southern acs' stock that had not rad
the interest; he said that sometimes clerk would take
fifteen hours TO investigate "a sug.c dividend.
Isaac smith, a clerk the Department, produced the
report of tie Mechanics aud Traders Bank for January
1s7G 1t wds he said, found to be Incorrect aud Wa, Ic
turned to have the schedule flied out The President Of
the Bank brought the answer up To Albany, and saw
Mr Ellis. 1t not unusual to return reports for cor
recton
An additional report came February 90; il sent
by the Commission 10 Examiner Reid March; in May
Le reported, in june Ellis had the AtomcyG
proceed to close the Bank; the item Of 81 800 in the
por' as paid to Examiners meant the sum paid two
II. +. Lamb. Deputy Superintendent was called. and
produced The Commission pointing Reid 10 examine The
A letter Of March q shows a deficiency. Ine
port states that there is deficiency n the-asscts ol
S91 SOS 80 ana with income Of S3O5i-1s Several let
tcI~ written during The examination were read He told
Mr. Ellis that ne did not think Bank officers were
honest AMI al letter to the AttOrneyGencral dated
june j. SIG to close tne Bank
Mr. Reid Bank Examiner called, ana testified that
be had several conversations Wit Mr.. Ellis n gard To-
the condition of the Bank. Frederick I. HcamY te.fi
fed that he behalf Of Two Trustees entered p lint
against The Bank to the Attorney General Senator Ne
CaIthcy asked MI Lamb if il possible for the super
utcndcnt or Deputy of The Bank Department to nave
actual knowledge OF the solveucy or insolvency OF all
the savings Banks iu the Stdtcl ir. Lamb replied that
their only knowledge is received through the Bank Re
ports
and testified that complaint against the Mechanics
and Traders Savings Bank been filed in his Office
At Its afternoon session the senate took up the Abug
don SQUARE Savings Bank.
H. j. Limb, Deputy superintendent, produced and
identified reports 10 30 on record. The report Of
Special Examiners made Dec l, 1873, shows de
hccncy the assets OF Sl,567 %, ana deficiency in
income Of Sl,e02 ~. IN ScmannuaI relo T. 10 de Jan
l. 1874, showed n excess of assets OF S3O36 %. The
report Of the officers on July l,ls7i. showed
o assets o. @31Ol 81, and the amount due dep0storS
Sl6g.G-s 80. In the regular report ~ Jan l. 1879 the
amount due doposOrs was Si76,066 81 the Of
assets S3Gs7 %. Nh Rcid made special examination,
and reported the dthc,eIcy G lhcone as S1CI 90 Tie
sem-anrul report Of Jan J. ls7G showed the amount
due deposters At Sla3,.VZ % excess OF as
y. Ellis, dated July 6, 1876, Mr. Red says
he finds deficiency OF S6I $50 Lamp sept tbs TO
Ellis Out Of town Ia letter 10 Ellis July 49, Reid says
lie found bogus checks PIT i'll 10 swell the assets Taking
Ellis, but don't remember any inmg thaI was SAD Ems
soon went Summer vacation OF four five weeks. 4
letter OF Reds July 20 said some OF the Trustees OF
the Bank told him ought To- Lave been closed some
time ago, and that thy intended having meeting to
put il III the hands of receiver witness informed the
Attorney General ana had tne Hdhh closet wa called
on boy lawyer, who asked him O stop proceedings 80
a. allow the trustees Ia make up the dehcieuc!
waited week. sending 10 Reid 10 see II the Trustees did
they promised Reid wrote August bth that he mad
er,at confidence the Banks real estate the Trustees
not doing expected the Bank was closed August ION
Senator Veddcr asked if weak banks. allowed 10 20
on under watch had recovered themselves and become
solvent The replied in he affirmative, ana said
lie thought the Abingdon square Bank did not have the
right kind of Trustees 10 save II.
In reply Senator Mccarthy, Mr. Lamb said that cir
cumstances might favor allowing weak bank - 20 on
To recupoaOn. Mr. Mccarthy said he thought 1t wrong
to allow il.
In reply to Senator Prince MI Lamb said he tried to
gave weak banks.
In reply to Mr. Chapman witness said II was the policy
Of the Department go put bank IN the hands Of Re
ceivcT when a deficiency was not made good. Witness
said banks had available fund winch they used for In
yestment In certain stocks otherwise prohibited Ii banks
used much that way they checked. The Senate
then adjourned.