New-York tribune., 1878-03-28

Mics, fresluent OF inc DdlK, HI orucr Va 'nS S"f~
Court restraining II from doing business Mt Miles al
once left the Office and the few deposors who came and
went during the afternoon not made aware OF the
state Of affairs until O'Clock, when the doors opening
on Astor-place and Broadway were closed ana notices
were posted informing the public that the business OF
this bank is suspended until further orders Up to the
last moment the payment Of accounts went on as
usual the rumOr that the bank was in trouble had
begun to spread and the accounts drawn out were largely
in excess OF the money paid in. The largest account
drawn during the afternoon $1,000. At five min
utes after o'clock the last money handed out to
poor apple woman, who, after trying In vain to gain an
entrance from Asorplace, had reached the Broadway
door just in time. The poor woman was pale with ex-
citement size put her entire savings 81 so in ALL
away in her pocket fat German, who also slipped IN
just in tme went away with package of banknotes In
his hand and happy smile on his face.
The paying teller estimated the amount paid out dur
ing the day at $4,000, smaller being deposited
After the doors closed small knots of disappointed
deposrors assembled on the sidewalk in front of the
building, and discussed the situation anxiOusy eagerly
but vainly seeking information from each other con-
cerning the of the disaster They were mostly
Door women and men in working clothes, among whom
the bank had been popular
STATEMENT OF THE SECRETARY.
Alexander Collins the secretary said that the bank
was Incorporated in 1858, and did good business on
capital Of 81 100000 up till a few years ago. Before
1870 paid its depostors less than per cent IN
terest then the business had fallen off and depOs-
its had grown smaller Like other financial institutions,
the bank not making any money The last interest
for six months, declared short time ago, was at the
rates OF and per cent Over $4,000 accounts were
the books OF the bank most Of these in small sums
the savings OF working people laid up against time OF
trouble, though there some larger business ac-
counts. The largest depostor Ceonel NJ. N. Van
Buren, OF the directors. who kept between $4,000
aud $4,000 in the bank.
We must now stop business" Mr.. Collins continued,
but have plenty Of funds to pay our depoiitors.
We have suffered by the shrlnkage values like others,
on our securities They are hrsclass investments in
bonds and mortgages on New York City property. Thir-
s were valued at $4,000 apiece years ago. We
bought them under foreclosure, our interest IN
they are worth that sum to-day, beyond doubt.
that the bank will lose nothing despite the
of the building which does business. That was con-
sdered worth $4,000 at one time. We pay $1,000
the bank pays $1,000 rent where it should make many
thousands. The bank has been economically managed
cuding the presidents salary OF $1,000 There mas
never been and not now any trouble with the cash
accounts. Everything will be found all right
THE PRESIDENT PROCESSES MUCH SURPRISE
William Miles, president OF the bank since 1866 re-
turned the bank shortly before p. the hour of
closing lie is an elderly gentleman, large owner i'll
and president of the Cypress Hill Cemetery Association.
He is also largely interested In Pennsylvania coal lands.
Mr.. Miles seemed greatly disturbed over INC actiOu VI
the bank examiners. They have valued our assets"
be said so as to make a deficiency OF about five per
cent below total liabilities of Sl700GO0. That Is
about the amount, as near as can judge According TO
estimates should have small surplus over and
the order 10 suspend business though for more than
two years the bank has not made money. The deposits
have fallen of at ho1le OF 100000 N the last twelve
mouths Between 100000 and 100000 OF our funds
invested in bonds aud MORTGAGES on real estate;
which IL unmproved about $3.50 900 is in United states
securities and the rest in NewY2rk city and B Bcookn
bonds, all hrst.class.roperty We nave only S3oOoo IN
North Carolina bonds, worth 40 ,sin, GEMS on on
tho dollar. Tue cause OF the reduction .n s,,orni IN
years past The bank has been managed economically
and honestly, and # we had been let alone we could
that the depositors will get all their money now 1t
win depend on the manner of M Tue wIndhs ing ap ar tne
but the depostors may not get over 10 per cent think
viii prove damaging their interests OF course, we
do not expect TO continue business hereafter"
TALK WITH EXAMINER KIRKLAND.
A. b. Kirkland an examiner, said last evening: The
losses were chiefly due TO shrinkage IN real estate
values The officers were compelled 10 foreclose mort
cages that had defauted in interest and the result ia
that they have on hand large amount OF unproductve
real estate These loans made principally on up
town property eight years ago, when vau
atons were at ghest point The location is on Third
ave-, between One-nundred-and-hrst and One-nun-
dredandseventh-sts In addition 10 these mortgages
property on speculation and the mortgages forecl0sed
will amount 10 IA much more, the actual valuation TO-
day being about Onehaf what cost The assets of The
bank outside OF real estate ana CONSIST ~,
good class of securities except S36OOO NOrn CarOuua
issue, worth 80 cents on the dollar,
and sal 800 Mercantile Trust Company stock, worth
about cents the dollar. There has been no dls,
honesty the part of the managers OF the bank bu
nd there have been illegal investments and exces
sye loans. They have not done strictly savings DanE
business and they had no legal right to purchase real
estate except protect loans and they had no rSh 10
make investments in STOCK like that OF the Mercantile
Trust Company. These irregularities nave uestfoyeu
the usefulness OF the bank.
The directors body do not appear TO have taken
much interest in the management Of the bank aud have
eft a 10 the officers and three OF the directors,
who have received the sixpences and snlngs depOseu
In hand. while they impu,ienty Loaned out lnou-
of depostors Is about $4,000, and the amount OF de-
posits about 81 100000 The average OF deposits Is
about S52. which by iar tas sna1e'' Ths esi aset
tSns %Gom as have deposits Of s. to E each and who
afford the loss which tney VIII be compelled 70 supt
To- Nearly 100 Of the dep0sitors are newsb0ys. Inc
building formerly occupied by the Siuyvesant BANK
and after It's failure the sihpeny saVngs baSh mno
IT, II the bank Il prudently adnlhistefed tninK
the dcpositors may possibly realize 20 per cent"
OFFICERS AND ANNUAL STATEMENT.
The officers OF the sixpenny Savings BANK are "nlam
Miles, president Wilson Small and James 1. WalKihs'
vicenresents; Alexander Collins, secretary directors
Nj NJ Van Beuren. Wm L. Dean, Charles l. Cromwell,
Jacob Cromwell Thos. l.. Small. stephen Hyatt Wm H.
Adams Bernard smyth, Wilson Small Within few
weeks the followi gentlemen have been elected di
rectors but not Yet accepted f. NJ Harris, James
The following are the figures of tho report Of the bank
for January /, 1878:
Resources. ooo, o.,
B91aJ S1o.t ana Jnrs,tnsnts Cost Market Value
United states .si77;tg9 90 sl!!s65o o oo
SoT.i Carolina . io,soo 90 $4,000 90