The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-04
TARRYToUN'S MISSING PRESIDENT
Luther Hedneid's Peculiar Transactions In
the First National Hank.

Mr.. Orson Adams. the receiver Of the First
National Bank II Tarrytown. which was closed
on Friday, the 22l inst. took charge on the fol-
lowing Monday. On the afternoon of that day
he closely questioned Luther Rcdncld
the President about its Affairs. That was
the last seen of Mr. Redhold. although
he has been sought for by officers who
desired to serve n summons on him. His fam
lily and friends say that this L. about the season
when Mr.. Rednrd is accustomed 10 visit his
son in Rcd1cld. Iowa. Tho feeling in Tarry-
town is very bitter against him. The his
tory Of Mr.. Redteld's connection with
the bank has been ascerlanod by Mr.
Adams from entries in the books. II appears
that in 1870 he purchased the stock Of Mr. Mer-
rtt. who had been the President. The stock
was at sl25 per share bu, ho paid sl33 the
amount being $4,000. This gave him the con-
troll. and made hiw President He paid Mcr-
rlit 10000 in cash. but MIR. Adams says that
the remainder Of tho $4,000 was appa-
rently paid from money taken from
the deposits in the bank after Rcdned
becnme President In Feb 2S Of the follow ng
year he 20; the note Of his son. Mr.. A. 4. Rod
held. for $4,000. discounted AZ the bark. and on
the same date there il found pnyment 10 Mcr-
rlit ~ $4,000. In oct. II ol the same year he
paid Mr.. Merritt $4,000. and put into the i,nk
s.Nrlhl notes Ipi llW amount, some Oi MliiN u.
Nj. Adams says. are y there aud worthless.
For SIX years previous to the closing oi thu
bank he had been taking out money for his
own USE ana replacing II by nui'H. Su h Of
thes notes ns remain III the bunk are worth
loss. Most II thu notes wcrr retirod from unc
tp time with other notes probably Of little value
Al ssi the notes now held. and which may he
lu'itprrUrrscnt Ali their predecessors are good
l'' notA ~. Not penny can be- re.li led on
of Tie last siN ye1rs Redncld. rs President
,nnd' sworn statements that This capital had
been naininin"d ininct and that there was
surplus of s2J.OOO. Occasionally he would ndi
that there were diyidrd urpliia. The sum oi
g. 5, ,io iH} ho Hrris @ }Ttl IN an4un, ron
hn. now hocn dis oy"i'l that. in TACT tho extent
t. wWhirh MONEY was t,ken rem th. hank and
r.plniod 10y notes wp.d G9t tie en'ir" capital
stock. II the notes retired hy the notes now IN
| Mn6 w'rc Is worthless a. their rrpr'a MIA:
! ocap;id for over yenr.
The assets nre celmated hy Mr.. Adam. TO b,
worth about 100000: the liabilities 10 d"pDs-
ltors and others about tl2l 900. The share
s2l 900. This 10y law must hc assessed upon ali
OF them. Solvent shareholders cannot he mude
70 make up tho Deficiencies % insolvunt onrs.
ltwIll therefore b. impossible 10 collect all OF
the depositors will receive over ninety per cent.
and perhaps th"y vii recoiy, NOR" than that.
A little oyer q year ago Rcdard recei iycd from
Mr. John Anderson te we'll -knoNn tOhaccon 1T
OF this city, loan ut t2j.uOD. on security of 2JO
shares Of the bank stock. which he represented
u be worth a, that time $3.50 per share. IN sup
| port Of his representations. hc showed Mr.. An
| d"rson the sworn statements Of the bank. In
these statements IL appeared that there
WA n SURPLUS capital Of $4,000 The mote
gwen Tor the loan was renewed from
| time 20 time. The last time 1t fell due was on
| March %. TWO days before the bank was closed.
| kediicll then represented tn Anderson that the
| bank LNamincr wouli at Tho worst merely
| recommend a decrease Of the capitil
stock. and in tbs way induced him -
wait II few DAYS. When the bnnk wins
closed, Mr.. Anderson at once sued Red
| field. Rcdilcld was watched for. both ut the
TarrytOwu depot and the New York depot. but
| the persons holding the summons against him
| missed him. Judge Prntt OF tho supreme Court
| ordered the summons to be nailed TO the front
| door Of iedhrld'- house If il could not be served
| vi on him perso onally or upon some member Of
| his household. After his departure 1t was hand
| cd to n servant who opened the front door.
| Among the dcpns tors are the widow Of Gen.
| Halpinc miles OReiIyl and Mr. lIaVcll. Mrs.
Halpinc has 81 400 in the hank. with which shc
| intended to open u boarding house IN this
city for, the support Of herself and chll,
| drrn. Mr.. Huy'll Is tho London artist
who engraved the Illustrations IN Audubon :
able properly with him 10 America nearly nll
| Of which hns been lost by bad invrstmcn'4 H.
| Is very old. and ut present sick. IL wit, who
Is ntHrly 10 years OF ngr. was almost hrpk II
| down with the shock that the report II tn
closing Of the bank gave her.