New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-09
MR.. BEST'S REPORT.

rSr,y nIuE-WHAT TWO TRUSTEES ARE AL
LEGGED TO HAVE DONE TO INJURE IT'S REPUTA-
TON.
The report of William j. Best, special ex-
amner of the affairs OF the Union Dime Savings DAMN
to Henry L. Lamb. Superintendent OF the state Da'AnS
Department, was furnished for publication Ses'eiuJ'
Mr. Best sad he could find fault with the present
oacers ~ the hank Who in his Judgment were WORKING
on correct business principles He spoke IN suohs
language OF the action OF the former trustees Oh INC
bank Joseph u. Oryis and Johh M"ch' P'o
yious to and during the examination he shi'
they were the only officers who tried 10 eAer' any
influence over him at the outset Of the examination MI
Lamb said be had esitated TO make the report puDhc'
having sincere desire to serve the iesl1ima'e ie
of tbe hank But since Mr.. OryIs and Mr. Mack M"
been so yirulent in their attacks on Dr. Best anu nun
sef and Mr. Mack had laid onesded statements peioio
persons in Albany he had concluded that IL "ouo NC
wse to pace the official report before the public hlr
Bests report contains 1872 fooscap pages the prncpa
ponts of which are given below the bulk Of the report
beipg Testimony corroborang his general statements
The Union Dime Savings Institution was chartered ~
April 1859 "Its progress" Mr.. Best says. was rapid
beyond expectation and promised to place IL aohs '
Of the banks for savings in this city It's great
prosperitS however excited the cupidty OF IL" Ut
signing men in the Board OF Trustees, VINO spareu ho
effort 10 secure control OF the institution ChcI aons
these place Joseph u Orvs aud John Mack, VINO sue
cocded in driving from the board number OF us most
valuable members To the misrepresentation OIL
Oryis and Mack must ALSO he ascriDeu the loss VI
and deposits by the institution during the past TWO
Their policy have been one OF rule OF ru' anu
that the institution not now IN the hands OF areceI'ef
i die 10 the prosperity which 1t enjoyed previous TO
1872 Mr. Orvis was One OF the lncoporators, MI MACK
beng elected trustee after the institution began
brsncss Mr. Orvls served for several years az chair
man of the Finance Committee, but III 1859 ne was
dropped from his place that committee Thencefor-
ward no seems to have directed crusade against the
president. John Mclean, who WAS hnaliy ousted IN
1872 Napoleon ]. IIanes taking his place
Mr. Mack testified that his relations with some or the
tr,stees Of the bank ceased be pleasant" in 1862
In that year Mr. Orvis having left the presidency o. the
Ninth National Bank sought II 800 night cerkship
I'm the Union Dime, which was denied him. III Is
clear" SAYS Mr. Best, "that eight years ago Messrs
Oryis and Mack occupied position OF open hosu'ty 10
the rest of the rustecsthe former from purely selfish
considerations and disappointed hopes and the latter a
the result of mistaken Idea Vi reform anu io "S
sire for notoricty"
I'm August Mr. Mack, with the advice OF Mr.. OTyis,
messed upon Mr. Lamb the Importance OF prompt and
thorough examination OF the banks affairs Soon after
ward the report says fearing they could not control the
selection OF an examiner major Charles T. Orvis expect
inc IN make the examnationl. they asked MT Lamb to
defer an official examination, because" as Mr. Mack
tcs,ifc1 we thought In disorder. The Board
OF Trustees perfectly ignorant or the workings Oh
,h hank and WAS xious have everything proper
order when the Bank Department should visit u.s."
Early in 1869 Mr. Orys made demand upon the insti-
tto for compensation for services as chairman OF the
Finance Committee. The named by him was $1,000.
This matter gnve rise discussion and much illeepg
among the trustees who finally compromised by paying
5000 This led 10 the arrangement between MI orVs
and Treasurer Chaplin THIS payment also resulted IN
the resignation OF Thomas Mast
In September 1877 Mr. Orvis sent 10 the trustees o.
the bans long letter in HIS OWL and his daughters
Handwriting. containing charges against the manasr,
and .guu lion. a.
The officers The alleged facts he also laid bef0rc super
ntendcnt Lamb at the Westminster Hotel IN tsleiter
he charged President Uaues with investing IN doubtful
securities; declared thar the sanford or clark mort
CAGES were very embarrassing" To the bank; charged
that large number of accounts were closed by forged
drafts that the amounts were used 10y persons Ia he
banL and made several other minor charges OF rregu
larlfy Sir Best gives much testimony to show the
MIR Best refers to Mr.. Otvis's " startling memOran-
dunn my sterlous transactions with one Laura Balmore
notorious courtesan, ana visits 10 1ier mouse under
various preeXts." He says was Aimed NJ the eAsec
r.tary the treasurer. and tho alters son. y
man whom Mr.. Macs describod As one e.. or the
husband. Of Laura Barmore" WAS engaged as
detective Upon the Unsupported statement OF this
person" says Sir Best. Mr. Mack has shown himself
capable OF lie attempt 10 biast te reputation o! men III
every way equals. with one of whom he had been III
timateiy associated loi yu ~ ~ ~
Mr. Mack bias against those officers"
Regarding the sale o the old ban KING hOisc IN canal
~, -, PnIIn IIrrmlu," says Mr. Best, Messrs OrYls
and Mack have by various methods sriyon 70 create
the impression that the transaction was fraudulent The
utter i.sy OF this s clearly estiOisned Dy r 0ryiss
own testimony. Tie conclusion therefore, - irresistible
he .1r
credit upon President iaines Oh WHOSE enioVa no wa
most intent Tue negotiations for the purchase OF the size
on the corner of Broadway Thirty second-'t and sixth
nyr and the price paid therefor have been caty dis
rortcd II has been yacy limited that from $4,000 10
SlOOOOO paid 10 parties connected WIN tho instl
luton for influence IN ofecting the purchase OF
that property 1t was the ldes ruo anu falsg IN every
partlrur In regard TO the statements oT Nessrs. Or
Wis and Mae. relative the costs aud losses resulting
from the removal from Cauast MI Best says they are
false a. a whole and false III every part
The last thld of the report deals largely with what
Mr. Oryis aud Mr. Mack called usuroGs mort cages.
ocr. stoned more sOcltude aud misrepresentation thln
any other transactions OF the bank These were mainly
th0,e executed by Birdsal Ely and Clark. Testimony
Is given To that Mr. Orsis ANA Mr. Mack had midas
trousy circulated the rumor tnat me institution for
sntur lime previous the cNaulindtOn, II closed,
could not have paid its deOts. " Mr. MacKs Object,
says MIR. BeSt. in seekihs MI. AImoies lenoyaI
MS TO make au OpcuugtUr has brOthcrn-law, MrM White,
whose elevation To the position OF secretary ne had long
sought To effect" lie is also cbargcd with deiamng
Treasurer Chapin, President HAmcs and eN-Secretary
Armorc In the matter of The MORTGAGES executed 10y
aud yet opinion, II Is tue only one which HIy de-
scfl6es the transaction OF Nil Dcmng He had no claim
against tnis institution nor tue property VI question,
winch had already suffered om his neglect, Tor which as
RECEIVER he snuuid have been held Table, AZ the date
OF Mr. Bests examination, the seventeen houses EN-
Iraced m the BdsAI property, had cost The institution
th sum OF $3.50 Isl !. Their present market value is
I'm cone isou MI Best says: Every class of corpo-
rate Institutions ~ more OF tess prey of Shatpels, who
profess great influence "iih ie uhlly press Ihts by
appeals the Iedrs, vanity or cupIy OF Those whom
thcy would yictimizc these parasites very ofon hoI
officers and trustees ia suJectio anu dte dDo 10 ulaN
from them liberal o. money, without returning
equivalent Tie BOOKS contain tLc elltehce OF sucll
pay mcut 10 the pIopriet"IS oI "eSAy paper c"i'eu
me Sd,ep,dT0 heretofore published III tas city by
Emerson ". Reyes and Bradford Rhodes. Mr.. Rhodes
[, stuffed at similar pay nents were made 10 his firm,
or to its ndt, dua, by nearly all the savings
banks this city and BiOuhyn, tho sums varying from
30 to 500 each.
Previous 10 s72 the funds Invested IN bonds and
mort CAGES 10y the managers Uf the Union Dime appear
To hay c been Iudlcousy placed Inc Investments were
lrce from faint implied OF real speculation. aud
wcrc could ascertain, Ia al respects III con-
iormliy with the statutes regulating such loans.
IL is noticeable. also, that the officers avoided
Investments requiring the placing of Idrse, sums
with any party, but rtner sought 10
secure br interests o depOsos by close adherence To
conservative methods But, with ehansS OF uuinls-
trotnn new measures were naugurated. The eXpendi-
tures were greatly increased meet which