The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-25
ABINGDON SQUARE SAVINGS BANK.
oRs-ExTRAoRDINARY REAL ESTATE TRANS
ACTIoNsA VICE PRESIDENTS STRANGE

RELUCTANT TRUSTEES AND HUNGRY DEPOSIT
EXTRAORDINARY REAL ESTATE TRANS
Acr1oNs-A VICE PRESIDENTS STRANGE
STORY.
A meeting OF the Trustees and Depositors' Com.
mttec Of this bank held last ewing in tho bank
building In Abingdon square. Mr. George W. winant,
tho chairman OF the Depositors Com nttee presided
Ho stated that tho purpose OF the meet.
ing was to ascertain whether the trustees
willing to mako up the amount called for
by the deposits and found In the assets yet He
had understood that they tho trustces) had proposed
to do 30. MI. Winant's remarks brought n smilo to
the faces OF tho deposors present that found
lection on those OF the trustees Mr.. Schoonmakcr.
OF tho trustees, stated in reply that there had
been several meetings of the Board but that subject
had not been discussed.
SECOND MORTGAGES
The Chairman thcreupon wanted 10 know why thcrc
were several second mortgages among tho assets when
II was we'll understood thing that the bank dealt only
In first mortgages. For instance, there were twenty
two lots on Broadway upon which there second
mortgages Tho receiver mere corrob0raed tho chair
man. and sad that they were in the books OF the bank
second mortgages Everybody glared At every body
else Tor n moment, ana the speaker of the evening
cxVce President Is. +. Burnham. rose and commenced
speaking
QUEER EXPLANATION
He proceeded 10 explain the second mortgage qucs-
ton. The bank, sad be could not, as bank, hold
real estate IN It's name. Some property IN Brook
yn process OF foreclosure ,nd struck of 10
the plaintiff and bought In by the BANKS attorney
The property was bought IN the nsme OF Mr. Schoon
mager OF the trustees in trust for the bank. or
course under the circumstances there was nothing
the books of tho bank show that land In qucs-
ton the property OF the bank, and so
Mr.. Schoonmaker gave mortgages for tho property.
Tue mortgages were of course recorded nmong tho
n.se,s although they for property that al
ready held IN trust Tor the bank hcy we're amount
equal TO the original cost OF the property. Another
piece oil property under similar circumstances stood
u the name OF Mr. Burnhams son, clerk tho bank
similar mortgages being deposited with the bank. Tho
clerk OF course, had nothing TO do with the property
the revenues from II. The chairman here askcd.-
''Was there any rcvenucfn
every little, # any, replied the speaker mo second
mortgages were taken by the bank while u
member Of the Board OF Trustees" continued Mr..
Burnham
Mr. burnham then asked Receiver Thompson
whether lawyer he thought tho Board could us
Board directly hold real estate. and Mr.. Thompson
cyadcd the direct question: but replied with cutting
effect that he did not wish 10 say as lawyer that Tho
trustees had any right To make such Transactions Mr.
Burnham sat down Tor few nom hts, aud somebody
started the question OF assets. Mr. Thompson stated
that the assets realized the amounts credited tho
books here would be from fifty to sixty per cent Tor
the dcposiiors. The assets already sold were about
onc.quartcr OF the total amount and those remaining
aggregated Sb2,231 The question was again raised
10 whether tue trustees would como forward with
money No seemed inclined To do SO aud Mr..
BurDham stated that hc didn't think they would
PECULIAR MANAGEMENT
Tho ex.Vicc President the proceeded to give de-
tailed account Of tie bank management Tor tho past
1--WE years The bank when he went In was short
s22 QUO The trustees deposited that with the
there surplus. After The Secretary had dc
cIared dividend Il was Withdrawal ".av ne ne
question OF tho Charmans TO the
deficiency Of $4,000 Mr.. Barnham replied
that he was not OF any such deficiency. The
Chairman stated that time before two officers OF
the bank, the attorney aud secretary. both named
Brown, nnd waited Upon HIM and stated that II he
wuuli stand by the Board they would his personal
account through All right" Mr.. BIrnhan stated that
II they did that il entirely Unauthorized and tho
Beard knew nothing OF H.
BANK CLOSING.
Mr. Burnham then gave detailed account OF how
the bank was closed. He said that Mr.. Reed OF the
Bank Department made an examination OF the bank
on the 7tb, sth and 9th OF August. On tho 10th he
stated TO Mr. Burnham IN his office, aud IN presence
at witnesses, that he had found 81 .6U0 surplus.
Mr. Reed coInplimcnled the officers OF tho bank
the fact, and assured them OF an Official nun.
Tho next day the papers restraining the officers
from receiving paying out funds werc received and
wr dated August Thus the farce oil examining
lans ner the papers had been signed closing u
pcrormcd at the banks expense Alter further dis
and statement by the receiver that div dcnd
OF fifteen per cent would be paid In lew days tho
meeting adjourned.