New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-13

Call loans estimated losses oooo
WE. M , loan. ...--''''-''''.'' o. Yo3 "a
B DencIa loan ..''.'..''''''. 800 1859 90
sllSoS2 %
D pcciaon OF stock. aud 2l,4Oo01
6 6 Tf2ii caIg S to suspense 70 IS
Referees udg uent in favor VI the state'' OoOUo w
s2i52j5 -
Total losses sooo'ooo 10
The real estate consists only OF the bank building and
lot. eligbly situated at No A wa,st We reduced
its valuation $4,000. Upon the $4,000 Cincinnati.
bonds Interest il default These represent part Of
loss made in 1866. We have reduced thelr vaatlh 10
80 per cent, at which rate they can DE sOu to-day
The call loans amounted SY5iG!s "a "a
Leaving considered good. ss2l352 IL
The loans to directors and their firms Including Sia,
500 discOunt) amounted 70 +13o1co. an undue proper
tion We invite your attention TO this point.
OF Ties. loans Sl33 700 not secured by such col.
% nartes At the same tine we were satisfied by in
curry they secure Two call loans to directors
noperher $40 OOO made each upon a single COM
mercia note We call your attention 10 this point upon
general principles. because We are OF opinion that ui
secured uomssory not proper colaerals for
call loans" They properly subjects FOR discount
in which they must pass the ,cruiny OF the board
while call loans are usually subject ohy 10 tue super
vision OF the president ana cashier. -. ,oo
The bank OWNS none Of Its own stock, but about 100
shares were found among the collaterals Tor loans
The discounts considered good amounted TO $685.
O55 ~ They seem TO be generally welselected Dusi-
The great losses OF the bank during the past twelve
wears has been occasoned by the following causes:
dealers who in moment of crisis or panic have used
This favor To themselves az the expense OF fbe IN
sttution In this way occurs ed the Meyer loss OF SOB
O0O In 1866, and the Wllals oNefurt VI Tfoiooo III
the panic OF 1873.
By advancing upon unmarketable securities not OF
a solid or generally known intrinsic value.
g. ISy inefficient supervision within its own walls, tho
management had become lax. Had tne cashier main
tanned the ordinary checks by one clerk upon another
in The book entries the custody of the cash items.
al tpllcrs been accustomed 10 eN-
amnations by him OF their accounts me gtane ueIalea-
ton could not have gone on without discovery ihcreas-
ing for more than eight years. A..
The payingteler made up his cash and added up his
entries day after day without supervision AS MS eu-
bezzemant increased he concealed t-now ny reporting
larger amount OF legateuders than actually on hand
now by altering the addition of his daily balance-oOK
When EXAMINATIONS were made by the directors lie APP
peals to have had difficulty in hiding II, until IL
reached the OF S65OoO III 1874 he thei ASKER anu
received the assistance OF the secondteer IN Tue co
cealment The latter lent his cooperation nor ohly the
first time but again ard again thereafter whlie ne saw
meanwhile $4,000 more added To tue sum previously
distracted. ON December ID last, sloooo was taken.
making then 100000 figure easily carried upon tne
hnoIs The defcation appears to have been caused Dy
losses In gold and mining stock speculation
Finally, in regard TO me present CONDITION Q, ,ns
believe have been thorouglwe ma III dne possession
Of remaining capital OF Il6ss4 Al rms Is an am
nroted by and the management OF the futue Is whtch
mi and reformed II Is matte OF justice 10 say tnsO
the chef losses OF the bank occurred uu s ,nni,
ageluents proceeding that OF Mt DOwu WHO too ;a
office on January |, 1874; but II must also NC su
That no such sudden paiiics AS occasloheu tnSl.
have taken place since that time. II must he saa ite
thar the r,spon sihiy for the past aud for The ture
rests upon the trustees well upon the ocers IL IS
nor extggerating that II single one OF ther mum
Der had earnestly and inteligenty done MS uuly IN
the examinations the meetings. and in general super
vision, the laXity OF management mght nav oeen cor
improper loans, the dangerous ccrthCa
tons and the unfortunate tellcrs ehipe@~.en' o"'
all have been checked In time