The New York herald., 1877-12-11
THE GERMAN SAVINGS BANK.
REPORT OF RECEIVER BEST TO THE DEPos-
IroIs ASSETS, LIABILITIES AND DEYICIEN-

REPORT OF RECEIVER BEST TO THE DEPOs-
IroIs-AssETs, LIABILITIES AND pEyICIEN-
cIEs.
The duped depostors OF the German Savings Bank
OF Morrisania, IN obedience 60 call issued by Re-
ceiver Best trcoped into the upper hall OF the diapi-
dated Institution l5ssh street and Third avenue,
haf-past seven p. NJ. last night There was large
number OF people which crowded the hall that
deemei necessary the arrival OF Mr.. Best at eight
O'Clock. to adjourn 10 Homan's Grove Hill Hall, whero
the meeting was convened, Mr. Rich being ap-
pointed chairman and Mr. Lew secretary. The chair
man explained that Mr.. Best present the pur-
puso OF laying before tho depositors tho present
condition OF the finances Of the bank.
tho advlsability OF naming date when
a dividend would be declared Mr Best. while sub
mitting the following report took OCCASION to say
that the loss OF the funds not altogether atrput
able to ignorance or msmanagcment; in at least
one important and noticeable instance there
was sufficient proof that large amount
of tho funds had been embezzled. Tho
cashier, William Hocland, could give no satisfactory
account OF his stewardship and, consequence. Lo
was at the present time indicted for embezzemeut
and forgery.
Tho following is the report OF the recelver:-
MoRRisASIA, Dec 10, 1877
In July last took posses OF tho bank. Its cash
then amounted only 1851 % and II owed s5l 900 10
sundry secured creditors including two its own
trustees. The sum named had been borrowed at
different times by the officers TO meet invest
meats It's payment being guaranteed by tho pledge
oil town bonds and bonds and mortgages. Previous
my taking possession the trustees referred had col
lected from the bonis and mortgages whch they hold
as collateral lev hundred dollars In OF their
own loans and interest thereon. This surplus they
handed TO together with the balance OF the
rites IN their hands. From these sources have
allied sufficient cancel SO. 900 more OF this iudeb-
edness, thus releasing $40 700 Of bonds. Oi the
s54. 900 there remain unpaid oniy $4,000 which eau
he settled AT am time by the sale OF equivalent
amount o. bonds; but as they carry the same rate
oi intereat Us the loan nothing would be gained
by their sale Hence l deem ~ wlse TO let
the matter rest uutil the amount be
collected from bonds anu mortgages. Wncn the bank
failed II owed iia deposltors about $3.50 900, which,
with inc SOL QUO already mentioned, made Tue total
liabilities say. S2s4 00u The securities pledged lor
the S54, 900 worth more than that and could
DC released only by its payment in full. rhis done
Bonds oil the towns OF Eastchester $l2 500; Pelham
$4,000: Morrsania, ~, 900; ManaronecK, $1,000; New
Rochelle $500 Morrsania DO at pany 81 200:
bonds anu rtgages ace value $75 0OO estimated at
$6OOOO; the banking rouse alleged cost $40 495 H.
estimated at So, 900; three small dwelling houses,
purchased ut foreclosure sales cost S., 800 81, ap-
praised at So 500 cash anu Interest accrued, about
$4,000; total estimated value OF assets, Sill, ,750 In
the town Of southhed, Staten Island These bonds
were purchased in ls'2-73, ana havo little or no
sent upward OF So, 000 l also hold railroad bonds
amounting to Sl47, ,5o0 the present market value OF
which IL about ~ oUO. Upon tese securities the OH
GERS ot tho bank 1873 loaned SOC, 500, which win
past due interest now amounts upward OF Sll5,0 ,000
Add 10 this the probable loss on the South1ed Town
bonds, and you got $167 900. This l shull endeavor
TO from those OF The trustees who voted in
iavor OF the purchase OF these bonds aud of making
the loan the railroad securities, both being
direct violation OF tue charter OF the bank OF tho
laws 10 relation TO savings banks. The trustees will
no oil course make Rood any portion of this loss until
they are compelled by law Therefore early day
| purpose TO apply 10 tho Supreme Court Tor
authorizng me to sell those securities and to the
| trustees, the majority OF whom are am informed,
able to respond any judgment that may be obtained
against them Tor uencieLCy II the Court should
tain my cain | expect To recover amount which,
with tho present assets would enable me 10 pay you
from eighty to ninety Cents ON each dollar oi your
deposits. BY careful management tho assets Will
realize enough TO pay you fifty cents the dollar.
Most OF you are PROBABLY aware that, IN December,
| 1885, the trustees agreed 10 ADVANCE upward OF
$4,000 TO make good deficiency which they then
admitted. Some 0i them now claim that this was a
loan and not gift Upon this theory those who gave
mortgages have refused 10 pay them ana now do
lending the lore closure suits begun thereon Their
defence briefly s'no consideration" which, l re.
gret 10 say, seems have originated with tho late
counsel OF the bank and tho very person who had
charge oil these mortgages In 1875. Should tho Cour,
decae their favor the available nssots would be
reduced more than $50 co., leaving to the depositors
less than thirty per cent OF their claims, but thin
contingency Is 100 remote to cause you any anxiety