The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-26
BROKEN BANKS.

HOW THE WORK OF WINDING UP ROTTEN BANK
ING CORPORATIONS PRoGREsSEs--FREE BANK
ING, FREE ACKNOWLEDGEMENTS AND
DIVIDENDS.
II the enemies of 'rce banking had desired it they
could not have contrivcd better plan oil showing by
practical results soundness OF their theories Than
by pointing the losses which over-conlding pub
lie has sustained by the rotten banking concerns which
have within the last few years suspended operations
Some OF these corporations such us the Abingdon
Square and the Central Park banks, opened
their books upon capital OF nil,
Quoted business and kept up large stan
OF comfortably salariod officers at the expense OF
fortunate dcpostors, and when they could longer
shut up their establishments, leaving nil ior
their and returning into their original obscurty
with the coppers which hard worked laborIns men
and struggling tradcspcoplo were to again.
In the majority OF the investments made by the
officers OF these dead speculations were OF the most
reckless kind. The money received was tied up
some horsctown property" and In bonds of "cities''
In New Jersey. Long Island and clsewhcre-outofthe-
way holes and corners, to find which It would
require a township map OF the county wherein
they are located Some Of these FLOURISH
ing towns' issued bonds at reckless rate to guaran-
toe certain railroads. Tho bank directors appear
nave purchased this OF paper with avidity.
and thcn when pay day round the concern could
not liabilities. The towns In instances
repudaed their contracts, suspension OF the banks
involved soon followed, ana depositors' interests
went the wall. II frequently happened, too. that
second, third, and, in instances fourth mort
cages the securities upon which the peoples
money was allowed to go abroad. Another hardship
for creditors to put up with the considerable
pense incurred by winding up the broken banks
OF all moneys passing through their hands One
light suppose that this high pcrcenag. would Justify
them IN attending personally TO their duties, but
they generally do not. The usual practice Is Tor
the receiver to name some person to act
his clerk. Ard MS tho clerk cannot DO anything OF
importance IN tho receivers absence people who
unfortunate enough to have dealings with tho
pended corporation look for HIM all
the city or 90 without being anything tho wiser about
their business.
THE BANK NEW AMSTERDAM.
Such the conclusions arrived ut after several
days search among the RUNS OF bankn establish
which once heid place IN the confidence OF thousands
One OF the first establishments visited was tho
former bank OF New Amsterdam, No. 2i5 bowcry. Mr..
Richard NJ. Bent as receiver Of this bank took charge
of the assets on the l4th OF December, 1876 ana
February 1877, he declared dIvdend oil nifty per
cent IN favor o the creditors. Up 10 the 23d inst.
fraction $685. COO all cash, had been paid
TO deposItors and others hodlpg claims against
the concern The receiver believes that another
dividend of twenty per cent may be declared D
September of the present year, and final say
ten per cent about Christmas, making altogether
eighty per cent This probably the highest percent
age that any OF the suspended Daaks pay. Among
the tie banking house and lot set down at
valuation Sl2S 933 49, receiver beilcves II
will bring more than 500, 900, u much. There
are also SOS 600 IN Lewiston bonds which appear 10
have present etabe Value Inc es foot
up $5ll, 1872 10 and tho are SIl7S57 So heing
just $93934 SO snort OF what, II the could 10
turned INTO Gus at par, would balance the books
THE TRADERS BANK.
Mr.. Samuel b. White. VINO Is receiver OF this bank.
was visited By tho writer and requested to give
public, through the columns OF tue HERALD. some
sight into The condition OF his trust. He had the
TASTE however, to be very crusty on The OCCASION ana
gruiiy replied that he had information give
statement ~ make
THE THIRD AVENUE BANK.
II appears from the statement OF Mr.. $. II. Hurd,
the receiver OF this nsttution, that IN May, 1876.
diviuend OF fifteen per cent declared. Tue latest
statement that could DO obtained at the recevers Office
docs appear be later than October. 1876 BY II
The public Informed that from sources Mr..
Hurd had s3O3 dig III. This amount with Tie
exception OF S53997 81 used pay the itcen per
dividend and also special aeposils Tue remain ng
assets OF the bank amounted to:--frustees, bonds,
claims against tho city oil Elizabeth, $5 O0O making
total remainder OF SOC, $40 20. But the iabt
not stated although tins may be asceraued by caicu
lating from the amount oil the dividend paid u
basis. All the trustees with the exception OF one,
fused to the amount Of Their respective bonds and
arc now being sued on them. Two Of the mortgages
second) In litigation amount TO s5i. oOO and are OF
doubtful value" judgment for $751; GIL % was oh.
tanned against Elizabeth city u opcrty, but II was
found that deUt OF Sks0 900. account of
monts and grudng, was on record against 1t.
THE UPTOWN GERMAN BANK.
Mr.. Uh became receiver OF this concern in Deem
Der, 1875, and the same month ne pad dividend OF
twenty-five per cent; u second, the same rate Of
percentage, was declared in April, 1876 aud II ex-
pccted that third division OF assets--Lhis time
amounting To about ten per ccnt-wil be forthcoming
in september next, making altogether total dividend
OF sixty per cent IN favor OF creditors. The
has paid out than $500 600 Lake the cor.
porations tho Uptown German Bank is engaged In
law SUITS upon the result OF which must depend the
future declaration oil dividends.
THE BoSD STREET BANK.
Mr.. William s. Payne, the OF this bank col
ectcd up TO the rs vi last mouth S7yJ 52S r. bcsdes
Inn rf nm ilafx
the beginning OF February and the middle OF pres
cnt month %.S 900 was received. There has already
been declared dvIdend OF hity-1ve per cent, when
Is now being paid out upon call, aud tho chances
that the amount IN favor OF dcposilors will reach
scycnty-hve per cent. There over 500, 600 IN
in bonds which have paid interest Tor
the last tive years. and " Is questionable what they
would bring II forced Oh the market The assets
stated at Sl,4l22S7 So. aud tho liabilities at
2S6,6SS OF, figure which certainly ought TO pay
creditors 100 cents the dollar everything is right
THE MUrrAL BENEFIT HANK.
The liquidation OF the affairs OF this bank Is In the
hands OF Mr. W. \. Aldrich. He took charge
December 1876 Two dividends each twenty ii yo err
May, 1876, respectively. II Is expected that another
dividend OF ten per cent Will be ready next May and
"a final distribution ID to take place thereafter These
payments would bring up the total dividend to
Aidrich $4,000 the greater part stocks, but
little cash and oncquartcr IN bonds ana mort.
The nominal amount OF assets now hand Is 500, 600
In real estate anG $4,000 IN cash.
THE PEOPLES SAVINGS BANK.
Mr. l. v. FrcuclI was named receiver OF the Peoples
Bank in November, 1875, aud IN the ioowing April no
paid dividend OF thirtythroc anu onc-third per
The total amount OF nominal assets was $lG2 ia "a.
and the liabilities footed up TO 1892 G0J H. Out Of
the assets the OF 500, si7 IS was realized, and |
utstnr In