The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-03


THE HISTORY OF BANK.
Iu 1854 the original Bulls cad bank was organized
under the General Bankng law, with paid up capital
Of 500, OOO II was then authorized 10 extend Its
capital 10 $500. 000 which II did For many years the
bank did prosperous business, as 1t was located
the centre OF tho horse market, aud consequently
convcn ent to he drovers AT stock went
up to over 200, and dividends OF sixteen per cent
morning OF March 70, 1873, when, to tho utter
surprise OF its patrons aud well wisners notice up.
peured setting forth that 'the bans was closed and
It's affairs being Investigated" "A lew days previous
to this wholly unexpected announcement Richard
williamson sr, had resigned HIS position OF Drcsi.
dent, and the place offered to Erastus 4. Meade
who was then carrying on private banking business
in the basement Of tho bank building An examine
OF fully $5OoO0o. The cashier, G. W.. willetts,
sent word TO the Metropolitan Bank, which
cleared for the BULBS Head Bank, and in
this way loss incurred by the
former institution. close of the books
showed that they had been Kept in very loose and
reprehensibe manner, many OF them beng mutt.
lated, and dclalcation correctly traceabe TO no
person, amounting 10 more than the whole capital
stock, was discovered. THIS state OF facts was
Bailey was appointed receiver by Judge Fancher,
but United states Marshal Crowley succeeded
in outrunDing him by few moments. hav-
ing temporary Injunction granted by Judge
Blatchiord, OF the United States District Court The
receivership was desired by several large stock.
holders while the injunction was granted TO CON.
mittec Ut depostors, who asked that the bank be de-
carcd an involuntary bankrupt and wound up by
division OF the assets among the creditors Finally
IL resolved by the Stockholders to transfer their
stock In trust TO reorganization committee of nvc,
and that preferred capital Of $500 900 DO raised
iorthwith TO DO entitled TO ten per cont dividend
when earned.
The depositors given the right OF taking
$4,000 OF this stock aud the remainder was offered
TO the stockholders Tho amount allotted TO the
posters Was taken up promptly by them aud several
OF their number were elected into the Board OF Drec
tors Meanwhile tho investigation by the Bank Elk.
amncr, Henry A. Mclgs, afforded proof which
William h. Merritt, assistant cashier; James J. Peck,
clerk, and Michael Murphy janitor, were arrested.
Tho first named subsequently gave bail IN tho sum
oil 100000 10 answer charge Of forgery found
against him. Bank Examiner Mcigs said at tho
time that the case one OF tho mosb
remarkable he had met In the examination OF owes
one hundred broken banks There was no possible
excuse Tor tho failure The Irregularities, winch
were almost bcomprehensibie, extended over period
OF from Tour TO years. aud he could not 500 now
they could have conc long without the act DO.
coming 10 every officer OF the bank. AT length
the 2Sd April, 1878, the bank rcopcned with The
followin officers adam b. Cameron. prosidenti
Thomas Rae, William L. Cogswell. jacob VoorhiS
anu Samuel WiiIetts as directors. George y.
Vail was appointed cashier, ana the opening of tho
bank took place under apparently auspicous circu-
stances. Since then, however, the influence and bus
OF the bank have been gradually but steadily do
Ginning. The headquarters OF the cattle drovers was
changed IRON the ~ tho west slide oil tho city,
taking away large amount OF patronage, and this,
with othcf causes, including the depressed financial
condition generally prevailing, hastencd she ultimate
| downfall Of tho Institution