The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-25
CLOSING A SAVINGS BANK.
ANOTHER INSTITUTION RUINED By
POOR INyES STMENTS.
Worthless Bonds Among the Asscts-Rever.es
from which the Teutonia Bank Could Not
Recover Ninety Cent. on the Dollar.

Nf"oty venus ou thc
The Tcutonia Savings Bank was enjoined
by Judge Wcstbrook yesterday from receiving
or paying out money. and 1t will 20 into the
hands OF receiver nj an early day Among
depostors the iank had been held in great
confidence. but ili banking circles II had been
known that cer,ain limo Of Investments were
non-productlve and probably worthless The
regular examination was begun by Bank Ex-
aminers Kirkland and st. John about two wooks
ngo. and concluded on Tuesday. Two unfortu-
nate investments. from one OF which nothing Is
likely over TO be rcnlizc1. mako an apparent de-.
hcit OF fl4s,i0i.G3. Tho report made to acting
Superintendent Lamb says that among the In
vostmcnis Of the bank arc bonds Of the town Of
Southileld. Staten Island. amounting to s109,-
300. and $4,000 issued by the town of SPRING
port Cayuga. county. Tho Springport bonds
IL no probability that the Southfeld bonds will
ever he taken up In addition the report
saws that the bank has been losing busi-
ness very hcqvily lately. there having been n
fnllirg of Of deposits since Jan. l. 1878 OF moro
than 100000. Although there IL now an excess
oil income NJ present. the probability Ia that IL
cannot last long. ana in Justice to new deposit
1rs ms we e o 10 pFbsVT9 Pre- uher Iois i s
wound up. On the, statement above. Judge
Wcstbrook granted tho temporary Injunction
and the order was served upon Mr.. Hahn. the
afternoon, Return IL to be madO before Judge
Westbrook. in Hudson. tomorrow 10 show
cause why the injunction should not DC per-
petual. The bank will probably allow a decree
Aside from the doubtful town bonds. the
banks Investments appear to he sound and the
management to have beon careful. There are
bonds and mortgages amounting 70 1896 800
up. and only few ~ the loans exceed flfty per
cent cent. 81 the market value The mortgage loans
The market value Of tho securl,I"s S o,hop than
mortgage loans aggregates t332, $3.50. Tho
bank owns real estate that cost 3s.69i. 81 but
cash on hand is s23 6O7 90. Tho liabilities 10
46Ol dcposhOrs nre tS79 S7G.67. Bonds md
hypothecated TO tho Mutunl Life Insurance
Company for q loan Of $3.50 500. and n loan Of
$4,000 from the cicrmania Bank; for, which!
Kendall are plcdgcd. Thirty. seven thousand
dollars. more of the same bonds are pledged to
thoOOO Brooklyn sewerage bonds are pledged to
ID Moran \ Go. for t4500O loan. The de-
posi;s have fallen off one-hnlf within two years
Both oi the examiners speak VOL ci the present
management of the hlnk. The books balance
and are well kept. and the sirictest economy has
been eTerciscd. and the misfortune ia entirely
traceablo 10 the investment In the town bonds
referred 10. All The, other investments appear
To- the examiners to be sound and profitable
Tho Southtcld and Springport bonds wero
takcn by Tue bank In lS7l. The interest on tho
lidity OF the issuc is in litigation and will prob
AMY he taken to tho United StatQs Supreme
Court The Interest on these bonds has been
ing that thev were 90 be- repaid in caso tho VA
ldity was affirmed but TINT the money so ad-
Nanccd WIS to be u contingent liability N the
bonds were repudiatcd. The Southfeld and
Midiietown drainage bonds have always de-
iaultod their interest, and the validity of the
issue II before the courts
MIR. Hahn. tho Secretary. said last evening
that tho bank had struggled for years against
the unfOrtunHtc investment. but the depression
in business Ind prevented recuperation. The
we're hlow To II. and since that time $500 100 had
been Withdrawn. To meet this steady demand
without callin in their loans. the bank had
boon Obliged TO hypothecate some of tho mort
gngcs to other institutions. Last January
me overdue interest account footed D
f333lNos. md tho amount uf surplus w,is
reported nj fSI .3b' H. including the SOuthfield
ana Springpnu honds at cost. The incrcnse
account as Mr.. Hahn figured it Jan. 1. guyeu
lront OF sll 900 for the year 1879 hut tho hnnk
examiners made this only s3O9275. with the
probability that in another year there would be
loss, Ihe currcn! exp n-es of tho bank havo
been Kept inside Of 5000. and the working
force il very small Salaries have bcen heavily
81 boo formerly 5000 "A hOokkccpcr ;i 900
aud ussist9ut huokkceper 800.
Many Germans hrc affected 10y this failure
The ncws ot 1t dld not spread until evening
and then knots Of dcpositorS went 20 the build
ing and awnlt"d tho opening of tho bank. IA
deposits are received fOrun hour on Wednesday
evenings. The doors were nOt opened and
thcn the depositOrS who had before refused to
believe the report, as the bank hnd been open
~ day, sorrowfully won't AWAY.
MIR. Hahn says that his bank did not open
u single new account after the SiXpunny Bank
failed. and that the officials then realized the
almost hOp"lCsSnDsS OF irving to rGcupcralo.
He If confident that tho bank can pay ninety
cents on the dollar to thc dcpositors. provided
ia resources are handled properly by the re-
CslNer