New-York tribune., 1877-08-09
MR.. ELLIS'S EXPLANATIONS.
MS cRoss-rxAmNAroS AT SARATOGA.

SARATOGA, y. Y, Aug. Sat the opening
Of the session Of the state to-day ,r Ellis said
that In his Judgment the closing Of the Third Avenuc
Savings Bank at the time he consui,d AIr Cisco John
Dix ana others, after the failure of Duncan, Sherman
Coz would lave been very disastrous 10 the city Of New
York lie then croseXamiucd, and testified as io-
lows,
and moueycd institutions. Ii was about Aug. J. 1870,
when he consulted the naucicrs There was Ino,e or
less OF in the Fail Of 1873, closing six banks IN
which there deficiencies. and putting iheni mo the
hands OF receivers; he deposiiofs cannot Eet 'h,lr
money back. He had some taith that the
trustees would help some banks II tt hurts
bank to stop payment; ana aegc.i,oS so ,en %onit
tors certain to suffer The Ihrd Avenue Banks rrai
haTkug house Wa sold Tor thirty per cent on
Il Afterwards sold ior more privately ForesaW ths
ccivCr All the dcpOsitOTs the banks named suffered
II the dcpCstnrs of the Bond street Bak h1u hpt ts'
confidence, aud the bank had KEPT on untllI, Ntc le-
came better, they would not hove lost so much; ~ th
ease Of the German aud security Banks II Wou'd
M ha'e Geen 's',yF Gc annot r 'e i. bound TO tax,
into consideration tc interests ~ al depostor3; ne
might Gud "a bank with deficiency OF assets ahd NOT
hand Il over t0 the AttorneN Grncra again, he might
deem n advisable 10 do 80 at one" he was influenced ny
the advice of hnanclers ma formed olloh ol ms V"l
He was preparing q communication to the Au0rneyen-
eral about the Third Avcnu' Bank when the committee
called to lin he I"conmenda ION To- te Atioly
Genera, based on all the facts III ms possession
When in 1873. Tie report OF the Third Avenue Bank
came to the Department, he had conversation WIN
Dcuuty Lamb: he agreed that closing that bank would
close a number of smaller banks favored the law 0i
1873, which allowed smaller banks 10 c0nsoIatc WIN
larger and stronger Some tnanccrs lac consulted
agreed with him. su others did not
visited the Trades Savings Bank several times ia
regard to report O November, lSlj and called ihe
attention OF The secretary TO the mortgages ana den
cicucrs, and told him tne deficiency must he made up
The Secretary SAID the trustees proposed paying ~ me
money Red wrote that the money had not been lald
aud the books in such condition that hc could rot
ud ont about the bank He saw no reason for closing
the bank until he gave the nnal order II, went 10
the Peoples Savings Bank with Reid, III ne Fan
of 1874, and Reid examined II, but lie dd not
know he made written report until 1t was
produced the trial From conversation with
the officers, formed idea hat the reports made by the
bank correct was aware III lei that the chaicr
of tie La eis Bank required them To report 10 thc
department the President claimed that MS bank hId
made statement every year; never saw any reports
never sent them blanks 10 MI up; when he Went mo
office DE tried 10 inform himself ont all The laws rcla
ting 10 banks; also examined reports and consute
CLERKS found hundred and sXiA-h savng- banks
with deposits Of $500 the expenses allowed 10y
the Legislature for LIS department were about Sl7OOoo
Mr. Eliss direct examination here resumed. lie
testified:
Abot the bocus checks in the Abingdon square Bank
Julv 49, 1--6 he LETT the papers the table with D,
uutv Lamb and went Out Of town on vacation; could
moi remember giving Lamb any directions regarding H.
To senator Griar-lIc refused 10 receive personal
curity the Trustees OF the German Savings Bank
of Norr,ania because he dl not consider II cX-
rfdaf.t. the pcreonal securities OF the Third
Avenue Bank received by his predecessor; ;
the law of So made change regarding such secur
ties did not anayzc reports of banks to whether
items Of accrued interest were oil interest running Tor the
current year dead interest overdue: had not wound
M any banks before september, 1879; had no eX-
pcrCnce.
TO senator McCartly-lIe never made general orGer
10 the clerk. Of the Department 10 report all questionable
items i'm statements OF banks.
To senator 81 Jonnlle found some large banks appa
rcnty wiling o. take tic assets Of smaller banks and
assume thcr responsibilities.
10 Senator Punce-lf large bank had taken ana held
the securities until better times they might have paid
te dcposOls Of tine small banks in iul; the delay rom
March IN acting the Third Avenue Bank was caused
hy waiting foI the passage OF general law II lhe tS
Lad grown better 1874 and $50 many banks coull
have been saved. Many private individuals lost BY real
estate IN those years.
To- Mr. Chapiitn his own counse-From Rcid's letter
calling for report Of the Third Avenue Bank. January
l. 1879 t was resolved TO close up tnat BANK Il was
Oulv und, cidcd as 10 the best time.
10 senator BixbylIe dId regard the Third Avenue
Sayiug- Bank as safe for dcpOsoIs; U did nOt create
much excitement when it closed in July the public had
got used 10 failures.
To Mr. Mcclure When Senator ST. John WAS SupeIin-
teudent of the Bank Department. mortgages OF broken
hanks sometimes sold Or twenty cents tie dollar
To senator Gerard-ie considered Reid an expert and
took ms reports az correct.