The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-31
NINTH NATIONAL BANK.

REDUCTION OF Irs CAPITAL FROM 81, 800, 900
TO $3.50, GOO NEW BUILDING.
There was an important meeting OF tho stock.
holders OF the Ninth National Bank yesterday. They
met vote the proposed reduction OF capital The
result OF the meeting TO reduce the capital from
800 600 to S750000 The votes Tor his purpose by
shares numbered altogether r. SEQ. OF these T. 80
voted for the reduction anu $50 against IT, The bank
Will at once begin its operations tho new ar
rangcmont
Some time ago. when the stock Of the bank Tell con-
siderably and losses In a large amount admitted
to have been sustained on loans and discounts and by
the erection OF the building on Broadway not
all OF the stockholders accepted satisfactory tho cx
PLANTATION gwen that the losses were natural conse-
qucnce OF tho tad They felt discouraged at the
condition OF affairs and naturally enough inquired If
the loans on which tho losses have been sulere
were matc iosuy. II was SAID that one person alone
owed tho bank over 100000. II this true tue
directors would DO found to have violated the law.
The National Currency act, June g. 1864, section 49,
reads
That the total Liabilities any association of any per
rowed including Ia tho liabilities OF company r tho
exceed part Of the capital stock
such association actially paid IN
Violations OF this act entail certain penalties.
oil which are meDtloled'beiow.
Section So be 1t further enacted That If the
orgcors of aii' association shall knowingly Violate
tie association to violate any OF the provisions Of this
all the rights privileges ana franchises OF
IL Is further made the duty of tho Comptroller Of the
Currency to take proceedings uch Violations
to the same shall be held liable In his own person Tor ali
damages which the association, It's Shareholders
person shall have sustained in OF
violation vi the act.
THE NEW BUILDING.
The story OF the opposition 10 the original intcn-
ton OF the bank 10 construct the building where
Offices revived and certainly the clrcu
lar prepared III 1869 by those adverse to That measure,
well US 10 the intended increase OF the banks cap
tai iron 81 600, contained arguments that prove
to have been somewhat prophetic 1t claimed,
with what justice Is shown by the results
.nce obtatncd, that the directors had no right
contract at expengo OF over 5000, 900 for bud
Ing IN which to conduct It's business while entire
capital was only Sl.O00,Oo0 The advcrsares OF the
measure then said
"Bcing convinced that the rev building rs an un-
whrInntabc and Improbable enterprise; that II is
needless Investment OF very large sum IN
land and Duildng at period OF extrav-
sisted In, viii be unprohtabic; that the
prosperity OF the bank Will DO promoted ~ immc-
dilteIy selling the premises before prices of real
TALL that the line OF discounts allowed by law
TO directors IS sufficiently large at present. and that
what the bank needs to restore It's prosperity Is not
an Increase OF capital, out thorough good manage
meDL"
IT was found necessary at Yesterdays meeting 10
S3JOUOO ana To Cast wholly the losses sustained
loans President HUI said that mortgages he'd by the
bank against Mr. Vyse alone cover losses amounting
to over S4OO 900, but he said such had been
advanced directly TO him. The bank had loaned him
ony $1,000 Tho rest was indirectly due 10 his
ia lure.
IT the bank had loaned more than tho amount
satedby Mr. Hill II ts understood that II would nave
oatcd the Currency act ana tho directors would be Ia.
bic personally for the loss the stockholders yesterday
consented 10 take on their own shoulders