New-York tribune., 1877-08-08
MIR. ELLISS DEFENCE.
HIS TESTIMONY AT SARATOGA YESTERDAY As TO A
NUMBER or THR BANK.

HIS TESTIMONY AT SARATOGA YESTERDAY As TO
NUMBER or THR BANK.
SARATOGA, y. Y, Aug. TN the trial Of
Mr. Ellis. Bank sulcr.utendent to-day, Mr. Ellis testi-
fled:
Thc first he had ever heard the statements about
the Third Avenue Bank as sworn % d. Isaac smith, a
clerk I'M tuc ,lopa tucn was at Saratoga; ne dd NOT
member III. conversation with smith ABOUT that bank;
drith and others in April Is73; be knew Of tie
Sl5OOOO bonds which 90 be gwen b. Tue tr.tecs;
went to NewNOrk ne Gay Duncan sherman Co. i"lei;
he saw Mr.. Cisco and he couuseiicd delay
he saw e.gut or ten other business men, they
said the market eXcit a IL continued 80 al
the summer acted on the opinion Of tese mem ne
autc ited mat thc closing o. tns oank w0ud De- very
the Mecnanic, aud Traders Bank letter from Reid
in 1874 about the trouble with the secretary; he mne-
datcly went TO Ncw-Yoik; the bank deposits
time of the closing Of the Third Avenue Bank;
the CON plant against the management not against
the soIvency OF the bank TOE officers |,r called set
Of robbers examined the Presd Mt and Finance 'om-
mi and found them rinnin- on ia iaeir own way he
gave them the choice To close up OF behave lheh'efes
bank Was financially sound; Wheh kcd examined
TIE bank in December. l97l, showing deheenc' the
Secretary the trustees must make mp the deficiency
or be would close them up; the letter of December
18th know what had been done he received
Telegram saying that tney had Put the DhA h shape.
good the witness relied on is report ~ he had NO
edge to the contrary Attention W4s next called
and look at the ;eac-s mortgage books, that they were
not :, stematicllly Kept; they seemed al risnl,
proceedings To the Peoples Sdyiu - Bank some of
the officers called aId posed 10 make up the denc.en-
r and as the bank had ed lts location. he antic
Ia,d better business tue Trustees had pat IN ono
bond he proposed changing, giving inANldual bonds
wues, went 10 New-NorE and loohed into the matterj
he examined the Trustees bonds and was satisfied tnat
the ,eucy would be made good in u Reid and the
Supcrincndrut called AZ the balkand made an MORN Al
Xln nation of the assets; they ,id not make a formal
report; tue witness only that Re reported when
me report produced on rla the deficiency reported
was more than covered by bonds he'd by the
ATTORNEY
| er.l to close the bank; tn AttOrncy-Geurru pre-
pared the summons. giving the figures IN the letter;
When formal report as b, figures differed, ho
changed them agree with the formal report aer ths
Ntt"ncy-teertl had no further contrl tho Bank
the superintendent went with Il ce er VII ess tho
Meclapics aud Traders Bank found after months
work that the edgers not correct as Reid Lad ac-
Tne witness asked Smith, he had been in the Depart
ment many year. # & ,1e aE nd yr Si & IN de noe Z
! know what hdd become oi NJ ne hdd TNHuIlueu dhi
could md NJ power enforce the Law Reid went aud
tried To examine; lie did not succeed; be vent 10 New
York in April 1876 tie officers tod hn they were talk
ing OF paying up depoSltors, ana nanded hn the 0pn-
ION OF William 1acy their attorney; the bank was turned
over To the Receiver the witness Intended leaving tne
Bank 10 the Attorney General, and not put IracVs
opinion against Attorney Generas; did not influence
hun from making an eAahihatohi could not walk III aAi
! take possession -
! Bank, nor the officers; his only knowledge
of TINS Bank was from reports aud letters; II was
nded to tue Attorney General, July % l,76. on
| the report OF Reid, by Lamb Ellis being away; nr had
no recollection of hearing bogus checks until the let
| OF the Receivers actions.
His attention II st called to the German Bank Nor
| rsania March, 1875 ked's examination mentioned
| n loan by former President ralrD al bonds
the President and counsel OF the bank camo
| To Albany. aud told them they must make
up the denclency; they seemed very energetic and
| ala not want the bank closed; the former
president deposited good coatcs Tor the poor under
The former Bank superintendent the officers seemed
ious do all that the superintendent asked tO mako
| the deficiency good; Gen. sgc aud the trustees
| called alter the bank had been put In the hands
of the Attorney General aud said II there had nos
been such "a and "A lttlc moro time were allowed,
the depOsitOrs would all have been pald large proper
ton the deposors had signed petition promising 10
! hands o a Receiver had information from the Attorney
General that he going To try the experiment OF ct
ting the depOstors rata for Receiver facts
knowledge To destroy his confidence IN the
| bank
In the law OF 1874 the New York Loan aud Trust Com
pauy required To report eXamnedin February 1873
after report he examined the law and
by which could return them 10 the Attorney General
conversed with trustees the manner OF clog
ing
Attention specially called to the Security Savings
Bank in November OF 1879 Considerable excitement
prevailed IN NeWlOrk at the time. Mr. Reid made the
! examinations had a conversation with the President
They had practically closed for few days while the
animation was being made they claimed that they
solvent Mr. Ellis told them the deficiency must De made
| up lie gave them all the time possible, "A
they not doing business The 0auk was
finally closed by the officers In January. Five or SIX
| banks were closed after the Third Avenue.
The senate then adjourned.
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EX-GOV PACKARD'S TWINS