The New York herald., 1877-10-02
SAVINGS" BANKS.


MORE LIGHT ON THE TRANSACTIONS or THE
cLAIRMoNr-rHE BRoApwELL sEGorIArIoss-
RECORDER HAcKErr's CHARGE TO TIE GRAND
JURY
II was supposed that the worst OF the trckcry had
been brought light In regard to the defanct Clair
mont Savings Bank. but days developments seem
TO show condition OF rottcnnsss almost unparalleled
The transaction at the bank yesterday seemed to
illustrate that the muddy bottom Of ts Affairs had not
been thoroughly dredged 1t asserted that another
OF tho trustees had been found be debtor to the
institution and that his unpaid check had been found
among tho so-called "assets." A HERALD reporter
called on one of the ocias OF the Clairmont and
ccived the following iniormation:-
at 10 true said the gentleman quoted ''that such
check 10 IN existence; 10 for $500. and dated
June IT, 1915. Il ~ found that Mr.. G d. Dsosway.
named has only sll % to his credit IN the
bank.n
..is u not clearly illegal for trustee to oea oor-
.Undoubtediy Here is tho clause governing thesa
verbatim from tho charter OF the Clair
mont Bank No president, vice president. trustee,
ofirer or servant o the bank shsli directly indi.
rccy borrow the funds OF sad corporation or It's DO
thereof sxccps 10 pay necessary current expenses
der the drcctlou oil said board OF trustees Mr Disos
way has boon a trustee, believe, since February,
1874, and has oi the most outspokcn since It's
failure in condem nation OF the rascaltes OF tho ON
GERS"
MR. pIsoswAY's STORY.
| The truatee whose had thus boen madc public
waited on at tho store OF Mr. George c. Grundy .
hardware merchant, Of No. 1866 Greenwich street,
whore II understood Mr. Disosway was employed.
The latter gentleman showed tue reporter very raIky
tie correspondence which had passed between
Receiver Smaiey and himself IN regard to the
check but explained tho matter In such way az to
throw even more discredit upon the management Of
the Clarmont Bank, although he relieved himself
individually Of any Intentional wrongdoing. Is ap-
pears that, according 10 . receipt OF D. T. Swan, the
Secretary OF tho bank which was exhibited, Mr..
D'sosway had paid his proportion for the iurnitars
n hy -nnk vlltrh utnv
1875, and cxprc'1t@X abe object ABOVE mon
toned. DAer xet~ .oat tho check In the bank
is mark~< -c~back, ana that ex-presidcnt
Brepaf ~ him to givo II asa memoraudum
Co. .Aal he (BroadwclD would take care o! its
|w w. stating tnat whom the report came be
the Banking Department tho officers could
ac. nus ',u morsassS vs 70 ONE or more y
trustees. IL will thus be soon what precious
art this Ciairmont BanK had whom tho trustees had
10 give their checks 10 pay for tho furniture in the
building Mr. Disosway says that II the receiver will
give him back hs check no VIII surrender the receipt
way) IN honor bound to pay u he Will DO SO. Mr..
Dsosway was .qui'e ouspoken In regard to the re-
ring ring now in there ,nan ever before why was Hr.
Grundy nominatcd for receiserf A blind! Why was
blind! General Smaey was wanted aud he Is there -
THR RRoADwELL NEGOTIATIONS
yesterday Visited by Mr. Dooit.e coanss, for ss
President Broadwel and proposition made 10 deliver
ever the w1'e or M o. 70. seasa oy
signed. IL was CLAIMED, to the daughter OF broadwc
and BY her was actually paid ior there was too num-
ber oil valuable letters that were demanded on tho
ground that OF lno banks property was involved.
General Smallcy instructed Mr. vandcrveer that with
order OF the Court he should not give up any.
thing seized IN tho safe deposit vault. Some sort OF
compromise was then attempted ny Mr. DooIittie on
behalf Of Mr.. Broadwell, In which the bank should
take portion OF oil properly and some ''odds aud
ends and release ABOUT SO, 900 OF marketable and
meeting arranged for another day between tho
sell Ia order that Broadwells lawyer should have
opportunity to consult his client.
RECORDER ON CORRUPT RANK OFFICIALS.
Al tho opennR OF tue october term, yesterday, OF
the Court OF General Sessions. Part Recorder Hack
his charge 10 the Grand Jury, directed special
attention to what he considered vitally important
subject and ono that bad proved prolific themc OF
scandal II wrong that had subjected to misory
u large and deserving portion OF our hard working
fellow citizens. Who on account OF their dependence
upon daily labor and their general position in
lie, had right special sympathy and protcc-
tion. The wrong TO- which he desired TO direct
and complete maladm nistration Of certain corpo-
rasons styled by their officers Savings banks"
wnon % o 0Irh hc sass na OF
Some oi these corporations through the alleged
grossly culpable character OF their management had
recently failed and closed their doors. IN some
stances giving back not even most meagre return "a
those who had been unfortunate as to believe their
professions Of honesty aud mad deposited thcm thc
hard earnings This class oil Institutions had It's origin
tho kiudy solicude OF eminent phlan ,hropists Tor
their fellow citizens and thor avowed object was TO
afford place OF untold security Tor the sale deposit VI
working class for It's surplus earnings, to
stand Dy their ready UlonO IN the uour Of neeu.
The Inducements wore 80 attractive that the poor
laborng class they suggested ha0its OF prudence IN
their daily expenditure OF money which otherwise
would have been spent ut once for things not needed
Lent to improvident friends proving NO benefit to
tho person who earned It.
1t would seem that from late developments the bus-
ness some OF these "savings banks" instead OF
having been honestly conducted Tor the benet OF tho
depositors, had Dcen manipulated In an illegal way in
the private OF some tho officers trustees
Aud In these distressing tim.s, when thousands of
needy dcposil0rs hoped TO meet with ready return Of
their deposited savings TO keep the wolf from the door,
they found their hard earnings gonc unusty used OF
was in the business amt speculation OF The officers
The Recorder urged that such acts should be looked
into and they within the provisions OF the law
AID no doubt entertained regarding them upon the
strength OF the testimony, an indictment should be
fnun0