The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-09
MIR EILIS,9 DEFENCE.
Explaining his OncIai Action with Respect
to Several Banks.

SARATOGA, Aug. Sat the opening Of the
Senate to-day Mr.. Ellis said that in his judg-
mcnt the closing Of the Third Avenue Savings
Bank at the time he consulted Mr. Cisco. John
A. Dix. and others. after the failure Of Duncan,
sherman Co., would have been very disastrous
TO the city of New York. On the cross.cxamna-
ton he said
The mischief would have bccn the other bank
that he consulted the hnuncicrs There was more or lie
run in the tall OF 1879 closing six bank. which there
were henccncies' ani nutung them into the hands Of
bes'eT' TIE denG,o,, c, e., st their money
some banks IL hurts a bank to stop pay paync g
when they e.nme and cannot pay once depo.ors
realized only twenty per cent on its The banking
srrward sold for more privately oresaw this result
n ,n Tas ioTcsd 70 pn IN ne hand. Of r,ee,er Al
posors Of the Bond street Bank had not lost confidence
G h would % not have " , .o m Sr' In the
case Of the German and Security Banks. 1t would
cei,ers had not been, appointed / lel! bound to
might nnd bank with deficiency OF assets and not
hand i oyer 10 The Attorne General Agan might
the advice Of nnancers aud formed opinions o my own
cral about The THIRD Avenue Bank when the committee
called TO see me The Recommendation to the Aorn'
when in is75 The report Of the rhiri RydR"Gc BSmk
SpSy LAMB a nSf St san w w
close number o sinaerb9nks favored the law of 1873
ana oihcrs dtd not visited the Trade savings
BANK several tunes In regard to its report Of November
1873, and called the attention OF the Secretary the
mortgages and the drfcicncies and told him the de-
ncicncy must he made The Secretary said the
tees proposed paving IN the Reid that the
money had not been paid and the hook were in such
condition that he could not find out about The bank
went To the Peoples savings Bank with REID in the fall
OF 1874 aud Reid examined ". but did know that he
made written report until II was produced the trial
From conversation with the officers formed idea that
Tue reports made 10y the bank were correct was
IN 1874 that The charter NJ the Loanor$ Bank required
them To report - the department The President claimed
that his bank hah made statement every never
shw any reports. never sent them blanks " MI up
Mhyn went ihio office tried To inform myself about an
the laws relating 10 banks also examined reports and
consulted clerks found one hundred and sixty five
savings hanks. with deposits nf sAioVoup The eN-
pen~'s allowed by the Legislature Tor my departmcn mt
were about $1,000
In the direct examination, Mr.. Ellis said that
after N" report about the bogus checks in the
Abingdon Square Bank. July 10. 1876, he left
the papers on the table with Deputy Lamb. and
went out Of town on vacation. He couldn't
remember giving Lamb any directions regard
ing il.
To senator Gerardr refused receive personal .cu.
THY from the trustees OF the German savings Bank
personal securities Of the Third Bank were re-
ceiNed hy my predecessor The law OF 1873 made a
change regarding such securities did analyze
reports 81 banks to see VIII, er items accrued interest
were OF interest running for the current yeur dead in.
rrcst overdue had not wound up any banks before
September. 1873. had no experience.
To Mr. hcGure-Abstracts II the banks show.
ing their assets made out Tor the Legislature every
year When any question: OF doubt as 10 the construction
of The law arises II always Aorne neral
for advice think II the law reducing the interest n he
phii by banks from u ~ par cent had been passed
tarher some OF these banks could have sOn, on.