New-York tribune., 1877-09-19
THE LONG ISLAND SAVINGS BANK.

A gentleman who il cOny crsant with the facts
in relation suspension Of the Long Island Savings
Bank gives tie following history Of the events which
led 10 the appointment Of a receiver:
In July last the Banking Department began to call the
nfls of lie bank 10 account fOr raising the price Of
Ecir bankue house from s207590 to 100000. fefus-
ing 90 allow II as the cost AUGUST 20, Mr. Lamb, two
dis az er lie became Acting Su eiintenddnt, directed
the Examiner examine the bank ana ascer,ain Oy
exhaustive nvesaiin tbe market value OF tbr real
estate lie reported at 100000 The bank had put II In
lie reports S230OOO since Jan l. 1879. Toe trustees
were releatedy advised by Ai. L1ub to meet and see
What could be done lie could e. 10 meeting, however,
until 4. On Friday, the lltn, ex-senator Perry,
trustee and counsel OF the BANK went 4" albany a.
committee OF one, ana WAS assured py Mr. La tnai ne
chance for the bank. MI Perry sad that the
trustees would meet again on tuesday, the I'm Iuey
did So AVA passed resolution l'iIhs te upev-
ntendent to wait another week Tor them On Nednes-
fle hands Of the Attorne & neral; and. Oh tho 14h,
alter king delay OF a werk from the Bank DEPART
mont the Trustees secured tne appointment OF
receiver IN the local courts, an anotmcht whch the
Bank Department charges made by cOlusiou win
the otlOsoi ""o aipl'eu ioi ~ ~ VI t1' 'iis
account the bank Mr. Reid the Examiner reported TO
the department August 25 1877 that the bank had really
been nsolvent snce 1869 Ins tact has bren covered
np by audulcny raising the price OF the real estate.
During the progress of the building this done In
1865 $4,000 was charged to the building and credited
pront and loss The oniY expanallon Of this Is that
sOme one is said to have offered $4,000 bank
II: so the bank officers declared the lot worth
s9oU2q SSS93 aad au credited Sd'T profit Of $1,000 In s73
07 charged again in the same In 1870 the
was $3.50 900. In tins manner SCI 1877 OF fictitious
has been put into the building account TO make
plus.
An Injunction granted by Judge Learned. Of
schrnectady on the motion of the Attorney G. neral
served yesterday upon Mortimer C. Ogden the recently
APPOINTED Receiver the Long Island Savings Bank
straning him from taking any further steps the
ceivrrship Allegations Of cOllusiOn with the bank Off
cas we're the ground for the order TO show why
the appointment OF Mr. ogden by judge Pratt should not
be set aside II is alleged that the bank officials
aware the Attorney General aDout TO take steps
10 close the bank, and with their connvance suit
brought by a dcposor and a Receiver appointed. This
appointment tue AttorueyGeneral claims, lie alone has
the rignt To make.
Ex-senator John Perry, trustee well counsel OF
the bank. present out Of town. IL Ia said that
through lis intimacy with superintendent Ellis, ne
able event action being taken against the bak. In
the Of the counsel NJ. Ogden declined 10 make
any statement regarding the matter. His appointment
receiver l. sald to b. very satisfactory TO
the majority the dcuOstOrs, who fear tngt the tgi-
prospect VIII interfere materially with the speedy
settlement OF the affairs Of the bank.
Mr.. HOyt sends the following letter TO THE TRIBUNE:
'It is with great regret that check Of mine in
the Cairmon Savings Bank, held as cas, f0r provided
the bank with the money pay the sad check IA the
time il vas given. The other items held cash, with
also had the money provided 10 the Ia fact
am indebted to the bank Tor any moneys whatever.
wish ther. tLat have nom the Zine the bank
commenced business up TO the present time, had
plict confidence the integrity of tie secretary. and
having question Whatever III my owl mind as tO the
ROundness tie bank, That there really deficiency,
or any of such magnitude reported. Is to almost
Incredible 20 believe"