The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-21
SAVINGS BANKS RECEIVERS.
Legislative Inquiry About Their
Fees and Emolumsnts.
HOW DEPOSlTORS' MONEY GOES.
Sketch Of Twenty Broken Banks and
Their Prospects.


Banks TO inquire INTO the truth Of current aiiega
lions respecting the OF closing out the
Affairs OF savings banks by receivers The resolution
promptly adopted next day, and the mmittee i'm
mediaey circulars printed and despatched TO the
receivers various broken banks, requiring from
each the amount OF tho nominal value Of the assets
which he received; how much has realized from
such assets how much ne has paid to the depositors
shat other debts or obligations OF the bank he has
paid: what assets still hts estimate OF the
value OF them; the amount Of cash on hand; what
be has paid expenses classifying such expenses,
show the sums respectively paid, as iolows:-
For legal expenditures, Tor clerical or accountant
services Tor rent OF Offices, for printing for
miscellaneous purposes, and also the amount
received by said officer as compensation for
bis own service such receiver. This
Information, 1t requested, should be forwarded to
the chairman OF the Banking Committee, Senator
Wcnover within ave days from the date OF receipt OF
the circular the committee itself to report 10 tho SEN
ate within days :hc adoption OF the resou.
IL plated by the Legislature to amend
the evils attending the conduct OF insoivent banks
by receivers, OF whom In some instances there
are even greater complaints than OF the orsinal OH.
GERS and trustees bill introduced the other day in
the Assembly by Mr. McDonough is aimed in this d.
rection and compes bang receivers hereafter to ns
with the Secretary OF State every three months
complete and exact OF the condition OF the
institutions in their charge, The property on hand
the disbursements made.
RESPONSIBILITY OF RECEIVERS.
Receivers at present said 10 have II all pretty
much their own way. They responsible only 10
the by which they appointed. and as In most
cascs thcy friends Of tho judges by whose favor
they for these lucrative places The super
vision OF is supposed TO be lcnisnt II Is
not an uncommon occurrence for an examiner scnt
from the Banking Depart ment to be appointed re-
ceiver OF the bank he examines and may conclude to
report adversely. THIS holds out strong tempta-
aion ssion OF fraud, Tor II the examiner
be corruptly disposed he can easily contrive
the way of wrecking otherwise solvent bank
The receivership of bank, insurance company or
such like financial concern has always been looked
upon as a desirable appointment and whenever
happens be gong there is great scramble TO
get hold it The public complaint Is that receiver
never knows when relinquish his charge SO long
any assets left, AS long AZ squeeze can
be had out OF the lemon. In the matter OF savings
banks which ought to be held as sacred as the
shrine within church, because they hold the hard
earned savings OF tho poor. II is believed that
a committee OF three wealthy respectable gentle
men might at any time be found 70 admin
lister their insolvent affairs without the cost OF cent
to the depositors But the moment receiver 10 an
nounced the assets TO be deprecated, and
receivers sale, which Is seldom advertised In the
public press, the signal for the gathering OF small,
select bargain hunters who expect 70 get the
s'op' PROPOSED CHANGES IN ruR Law
The substance Of the amendments proposed to tho
Savings Bank that examiners should not bo
receivers, they are too directly intercst-d that
exam should pass under examination before APP
pointment II they qua flied 10 perform their
duties; that they ought to be residents OF the
State they should only receive salary and rav-
cling expenses report to the department. under
oath only that when bank must be closed II should
DO ooDe by committee chosen by the Court. VINO
allowed only Tor clerk nrc and rcnt, while all tho
proceedings should be reported TO the department
be open the inspection OF depositors and limited
term be gwen Tor closing INSTITUTION No trustee
Of bank should be paid. and u he wants to be.
come an officer OF IL he should be compelled
10 resign bis uusteesh'p, oi course there
many banks the trustees OF which receive
no compensation and several OF whose presidents are
without salary IL ascertaned TACT that no bank
In thirty years has failed that mad President VINO
served without pay 1t Is the conviction OF the most
experienced people IN the savings bank business mat
worth $40, 900 over and above his debts. AS tho
Legislature hopes 10 be put In possession Of the
The broken banks as they are to-day what d,vdends
they paid up 10 this and VINO arc In charge Of
thenL-
Between November, 1871, and The present time
twenty savings banks passed into insolvency IN ,his
city Seven OF these exploded IL the year 1875 but
though The disasters that overlook them were, IN
large degree, TIE resui. either o. dls,
that the great shrinkage IN real estate
had much to DO In Fastening the end Of most
Of them Not single one OF all those banks has yet
been up, aud some or the receivers have been
living clover but others Of them have been STRIVING
honestly and earnestly TO realize all they can Tor the
wndled depositors IL Is said about two receivers
bank that tnoy addressed thcmseiv's to steal
ing the funds their charge, and another receiver
that himself up preferred creditor laid hands
all the available assets and snapped his Ringers at
the deposiiors the press aud the public Tnis Is the
way a receiver comes into existence when
examiner oI tne Bank Department detects
something radically wrong IN the accounts OF a
IL
OF which reports 10 the Attorney General, ana he In
turn makes application 10 a ludge OF the Supreme
Court. who appoints rs receiver whonsoovcr he
thinks a.
Prior to 1876 any creditor oil a bank might 20 be-
fore q Judge Of tho Supreme Court and ask for a
receiver on sworn statement Facts disc ng tho
banks insolvency. In that year a Law was passed
10 conform the proceedings Of savings banks
Attorney General 70 make the necessary application
10 the courts Tor recever Stll however az IN ne
instance Of the Clairmont Savings Bank IL appears
thc privilege OF applying Tor TO the courts
~ not wholly denied the creditors bu, has Ceased
"a 5e the usage. II Is easy to perceive that y
saceiver not honestly disposed no eau keep
the ueposfors long time waiting for their
money while he Is drawing or per cent upon
In fact unless u we'll understood that the
cciversEip OF bank was fair bonanza there would
b. no such hearoreax PANS exhibited 20 get poe
session oI u by lawyers, pontcians and bankers
themselves.
BROKEN RANKS.
The following n list Of the broken banks and all
about them Ia Driei.--
Abingdon square sank closed August 10, 1876. hav-
o0t uepOSltOfs Creoiteu Win t51,tB1. MT FRANK
Thompson appointed receiver Ia the same month
by Judge Landon, Of schenectady, VINO appears 20
have appointed receivers 10 ali The
dcposnors paid fifteen cents the
aoiisr, and 10 ~ doubtful u they will
be paid unless the suits pending against the
trustees successful IL was the FIRST failure OF
that year, but fortunately the amount involved
very large Inc management OF tue concern, " Is
charged, ia It's beginning was extravaganl and wnen
ths came u unable even ny the disposal Of
most vi It's property TO stand the pressure.
Bowling Green Bank was one OF thu sal and memoir
able failures OF November, 1871. IL hau 1,5OO
pos,tors claiming $45U. 00u Judge Brady appointed
Sheppard y. Knapp receiver November 20, 1871.
The ucpos,Urs received tnrtynve cents the dollar,
aud the last dividend declared April, 1873, while
n future, " any, dividend IN expected OF ten or
Twelve per cent me funds Of this tank, OF which
.Hsnk" smith was president, wens tossed into Wall
street by It's officers, II ~ claimed, and there lost
nile tue oeposor who were largely OF the poorest
class to the sorest distress The failure
caused udgnation At The time, despite The ex
aL-.L u--.- .~El.lc lLanll M