The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-02
THE ROTTEN BANKS.

coscfuzroS or THE BANK sUPERISrESDExr
ixvxsrroArrox-Mn BILLS on THE STAND
~ ms ows nrnALy-IHE sEEsAw or Ar-
rEEcnrics AID DEPRECIATION.
the senate Committee yesterday concluded their
ssamlnston % tho charges made against Bank super
ntsnasns Ellis reference 10 his supervision Of the
Mecbsalcs ADD Traders Savings Bank The CON-
muee. bong merely appointed by the Senate 10 ex-
anime the charges. IN express opinion In their
rrport 10 The gain innocence of Mr. Eilis they
~i simply eoia's The testimony aad present. 10 20 the
senate The action Of that body. Tor the
son no srzameat 90 summing up d counsel vas
sllessa ether aide yesterday afternoon Tho CON-
msises nss nsEss seat 70 Albany. where they viii
bsgls shs nvsstixstoa Of tho charges against Mr.
Ells IN regard the other b2nka Part OF the svi-
deses ~lll 10 cosanss,ary and part oral Those VT
nesses living In Nee York wLo will be examined per-
sonally oil b heard IN shs city. Tue committee.
however. have ses ycs decided vhes shsy M, rssarn
here.
rsr sxkxlxArlox
Mr. Kills arss called yesterday 10 testify In bis
bshsiL lie testified tnst tAs balance sssss pss-
porting DO IN the 81 Mr. PrssI tho beokksspcs
ofths Mechanics and Traders Bank. va made out BY
MI best, Mr. frasl's name vas ssed 10 AID shs ~
eever me nst <ssmest " acssrs Floyd and Gregory
showed assisney Of tlsi oyo Mr.. kls aid he iouId
that thsy bad lett out Slx go from tns Assets BE de-
ina, ssrs o. ,asir sassas sssas hal they had ire
quenty communicates sith him vas Absolutely taiso.
a. siso Vac si.iemsnt that be had admitted me
"a Affairs, ths Governor had been deceived BY
Ne false eh.fses. shsrs was n.isri@i diasrencs
bsiwecs the reports made ~ the Bank Depart fneut
ana thst made ~ nessrs fioyd aud sregory: wtnsss
came de~n 90 Nee rufk aud - once Instituted an ex-
coants: NJ. Ellis found THAI Floyd aud Gregory had
not cfsaissa us e-hk s,h .nl cash Al an whefeAs
lasted week Ten days; ~ NE dnsrent complaints
oil Floyd ana Gregory there -four different alleged
sios 90 q ne reesser made oas sss,hss Of
over ovo these figures gave him The impression
that iho-e Sho made oat the reports had no. been
very accurate. witness believed his estimates
10 be- tar aud conservative. rather over than under
the value Of the seearuss tns soatnefn securities
into onies. aud he DID CONSIDER his duty 20
certain how tbe bank obtainei tncm, about hall "
the accisncy found IA October had been wiped by
appreciation OF ,hs securities before the Ia Of jan
uary; Nil the munlclpsi bonds had rsen taxing the
on october is;s. and me rsarss Al winch these ss
cartes were selling giving them The benefit OF appre.
cston aud Depreciation 10 found that Tho dchc,eney
actually made up. aud thai there a Surplus VI
between $1,000 and $500, | iound that could
not maintain an acton against the bank on
gwen In October were correct, woald have haa no
standing ia the court aud would have been powsriess
to close IN bank u had attempted 10 do 90 since
October, 1878, the deposmors had been drawing out
their money fast that The uank had buea Obliged 10
realize their securities and caused q
great loss them The best poncy IN regard 10 the
bank To encourage and ave 10 Reasonable oppor-
tuny TO recover not 20 close 10 tho bank unless alb
soiutey necessary, as ~ putting tse 1snk into the
hands OF n receiver all tLe pronis wore eaten up. a
savings bank founded the connasnce ~ the
rHK CONGRATULATIONS
A. haf-past one short reccss was taken, a. the
CONCLUSION Of which the cross-examlnstion OF Mr.
Ellis by Mr. Mcheon began The arst charges
against tho bank wero made TO Governor Robinson,
MI upV etlp In had
seen such statements made In the newspapers, Mr.
Ellis called Governor Robsnson; The Governor
ing be heard regard tho charges against nim
witness wrote n letter 10 tue Governor asking Tor
thirty minutes time 10 talk 20 him. saying that no
could satisfy him the charges we're grounaless; The
Governor gave him IN hours time and tho result was
the Governor wrote y communication 10 tho senate
cxoncrating Mr. EMS from criminal intent bus chsrg.
lug him with ncgigence witness did hot 80 INTO amy
discussion OF The ngusss NJ all hessrs Floyd aud
Gregory made three different estimates la regard 20
tho deficiency In the bank, and tina. created ths
suspicion that tncy had not been very ac-
curutc IN their figures; ,ho impression on
his mind was that tncse men we're quarretilng
with their associates the reports oil the Banking DO
partmcnt showed that there had been deficiency OF
income; they tho Official returns OF the officers
and accepted such IN tho bank this exnminulio
was made March 81, 1874 Mr. bcIlamy wen! 70 Albany
the affairs OF tho bank Mr. Ellis found securities III
other states, but made no inquiry ~ 70 when They
bought thom; he knew. however. IRON the records
that these securities had tcen bought before he boz
came superintendent; unless he had Other knowledge
correct; there was no complaint made 10
tho illegality Of these Investments; he supposed
that questions OF fact had been passed
upon by his predecessor IN Office; when Mr.. Ellis
made Tho examination neither Dir. Floyd nor Mr.
Gregory was present. although they had been invited;
he could not say whether tho Aiabamss, North or
South CarClinas had Appreciated the Tennessecs had
consulted with the Manhattan Bank 10 get tho values
oil the securities aud referred TO some
name no dla not recolect did hot look ut The Official
report OF tho New York Stock Exchange sales; Mr.
Els put down the value OF the banking house al
$4,000 It cost $40 600 before the consulted
other banking houses on the Bowery In regard to the
value OF the property went 70 real estate agents.
witness had never seen tho Brooklyn property. but
got his estimates from tho foreclosure sale;
did not differ materially with tho CON.
mittee's report that points IN regard
to the suspense OF $40 900 against the Josyn
estate, witness had heard that there litigation
no could not tell where no got his estimate OF ly pcr
cent from the condition Of the bank ta
satisfy witness OF ut least $25 900 deficiency then no
directed trustees to give bond make up tho do
hciency; before January . committee came TO hun
and took his figures, and showed that the
ties had appreciated Ia valco so AZ to mako up that
deficiency and leave surplus OF between 81. 600 and
$S 0OO Mr.. Ellis ADVISED them to sell somo OF their
Southern securities; the surplus Ia March, 1s7s was
about $4,000; IN October the deficiency was about
$4,000; in his letter to the bank
had said that some might place this deficiency gh
$50, 600: he could explain tho change by smiIar
change; OF the largest banks In this city. said
he, showed change last year on United states gov
bonds alone OF between 500 900 and $500
decrease their assets by depreciation VI
bonds; II that bank had only $500 900 assets over
liabilities 1t would have boon insovent; that crcum-
stance did not IN tho least weaken his confidence In
the condition OF that bank.
Senator st. John then put u few questions 10 Mr..
Best with regard 10 the value OF the southern
ties lie morely confirmed the testimony dy gwen
The Chairman, Senator Coleman, then declared The Ia.
vestgntion closed.
BUSINESS TROUBLES.
A meeting OF the creditors OF Siymund Jacobv Cus