New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-04-25
CONDITION or TIE BANK.
ACTION OF JUDGE wE>TBRooK on THE APPLICA-
TON or THE ATTORSEY-G TSERAL-REPORr OF
THE EXAMISERs-A DEFICIENCY OF $14S, 900.
lnY Teller Apm To TILE ThIRINFI

TIoN or THE ACKNOWLEDGEMENTS OF
THE EXiMISERs-A DEFICIENCY OF $1IS,OOO.
lBY TELEGRAPH TO TIE TMBUSE
ALBANY, April 24.-An order restrain
in the trustees OF the TcutOnia Savings Bank In tue
City Of NawYork from exercising any Of their corporate
rights, was issued by Judge WestbrCok yesterday, ON
application Of the Attorney General. The
10 show why receiver should not be appointed,
and the injunction be made permanent GA April 20,
at Hudson. The application made by the
Atorncy-Gcneral at the request Of Mr.. Lamb,
Acting superintendent of the Banking Depart
mcut, who was led TO this course by report
concerning the bank from Messrs. A. b. K!ttand
and !. NJ. 81 John, bank examiners. The examination
begun April 3, aud the report filed April
10. tn" examiners report IS II long one. They say
that the bank bonds and mortgages amounting TO
$500 500 The interest the bonds had been collected
and IN only n few cases did the amount loaned on
them exceed 80 per cent Of their market value.
The loans mortgages exceed the en-.
tire amount OF deposits 80 per cent The
securities and Investments worth
332Se7 30 The bank is also the pOssessOr OF bonds Of
the village OF sprngpo- issued in aid of the Cayuga
Lake Railroad Intero,; Las 5eea dcfaulcd til, So
bonds sc2tenhc", 1872, GgI the legality of their
issue j. being contested IN the courts. The lower
courts have sustained the bOnlhodrs and the case is
before the Court of Appeals. The examiners OF
the opinion that ultimately the will be taken to the
ably advanced the Interest these bonds with the
derstandng that the bonds declared valid they
10 repaid bu declared void. this advance may be
considered a Contingent Liability. The bank owns
bonds Of the towns Of Southlcld AID Middle
town, Staten Island 10 the amount 81 100000 These
have declined to pay the interest on the bonds and
they are now coutcstng the legality OF the Com
nsoners action in ISSUING them the ground Of their
failure TO take title for laul used and that the bonds
were sold for less than par The Cont Of Appeals re-
Gently okcd the decision cf lower court which was
favorable 10 The LOEGlGllc;s. The examiners were
unable to nud any ma hct value fOr these bonds, ana
tier, fore placed them m the schedule as contingent
as--t, Of little value With accrued interest and the
co-t o; litigation they represent upwards u! $50,
OoO lost Tnc bank real estate which cost II sos
G9i o. which real estate has just been appraised rs
worth $4,000. The cash on hand and on deposit
amount. to 500 GU7 90 The liabilities 10 1901 deposi-
tors amount to $e79,s-G -.
The bank owes the Mutual Life Insurance Company
SiO9 sol for which II has pledged bonds and mortgages
to the OF $4,000. u owes the Germania Bank
s3JOOOO for which S37 900 In bonds Of the towns OF
HamIiu and Kcnd, pledged. Il has also $4,000
u the same bonds pledged to thu Oriental Bank for
loan OF 80 900 II has also pledged $4,000 OF Brook
lyn sewerage holds to ID. Moran Company for a loan
Of $4,000 January last the deposits OF the bank
have decreased 100000 AMI IN Two years nearly one
half.
the ability Of the bank redeem relieve its pledged
securities by an increase Of deposits far from natter
Ing. They say the present. management Of the
bank IL good; the books are kept In plain
and intelligent manner. aud now balance; the
officers are exercising the stricest economy
IN ali their expenses. and the salaries OF officers and
clerks have been largely reduced, and they have no
more help than necessary. Every precauon seems TO
have been taken q guarl the bank against losses 10
making drafts for money repaired three signatures
The examiners say that their balance sheet shows de-
Gccncy OF assets amounting T1ls iOi o. The failure
81 the bank due seems to unfortunate purchases of
town bonds; the other investments were good. on
January ISIS The bank officers reported interest past
due for SIX months or more stock Investments to
amount t. S33,3I3 o.. III, date they reported
surplus Of ssi3J9. The Town bonds referred TO were
given al cost IN this report.