The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-29
TEUTONIA SAVINGS BANK.

REPORT OF ACTING sUPERINTENDENT LAND
40 THE ATTORNEY GESERALr-THE CLOSING
UP OF THE AFFAIRS OF THE INSTITUTION
RECOMMENDED.
ALBANY, April %, 1878.
In relation to the closing Of The Touionia savings
BANK Attorney General schoonmaKer says that thcrs
is not tho slightest evidence OF negligence corrupt
management on tho part the officers Of the instiiu
tiou and that tho 10 Of financial misfortune,
not OF Official delinquency. He says no fact has
10 his knowledge TO lead 10 tho belief that there was
any thing table In the action Of the trustees
In buying the town bonds, which have boon tho prin
cipal OCCASION Of tho deficit, although tnors 10
ground Tor suspicion that tho Staten Island
bonds wcro improperly issued and put upon
tho market. Tho great decline In tho amount
OF deposits shows tho cxlont Of tho decrease
Of public confidence Tho officers OF tho bank 10
have endeavorcd 10 economic funds BY reducing cx
penscs, circumstance largely In their iavor Judge
wcsbrook tho Attorney General says, has not yet 10
his knowledge, gwen any indication A. to his choice
OF receiver.
TmE suBJEcr OF RECEIVERS.
On tho general subject OF the winding up OF banks
sod insurance companies tho Attorney General says
there Is necd Of .mmediatc legislation OF nature
limit tho duration Of rcceiversnjps aud tho extent Of
ouslays Tor receivers Ices and counsel ices. Re-
ceIvers, he says Ike executors, should Dc compciod
10 wind up tho affairs their trusts within reason
sblo and stated limo, and IN some way tho amount OF
uuds Ia their hands any ono time should be limited
dispense with the necessity OF large bonds aud
tho Tor large compensation. Nor should large
cxpcnsivc promises be Kept Tor years for the
purpose Of winding up companies Tor which use small
ana inex pensivc Offices would DO sufficient
Following is the iettor addressed TO tho Attorney
General by Super ntcndent lamb
Hon. AUGUSTUS ScmooxxAxkR Jr, Attorney Generals
sinfrom tbs vi examination VI the Teutonis
Savings Bank OF ths city OF Now York appears that
the amount OF 81 S4U4 ~ exists This
deficiency FROM the investments Of funds ia this bonds
Of the bonds OF tue Of sprinRpors Cayuga county
which In detault since September. 1877
1uer- that the bends judcally declared
valid aud tue payment OF them be snfofcc hut tue In
sttution also xlU9yU ~ the bonds Of the towns of
Southhsd aud Middieown, staten island which NO
some pains TO ascertain By inquiry In wcnformed quar-
prospective value these
forced 70 accept tho that they worthless
M asset Tho apparent deficit IL at least SIS u II tbs
The trustees have been struggling with the burden
which this default OF interest In large vt tue
stock Investments has imposed. The decline In
has been rapid The decrease since January A. 1875 has
been xOOU snd the total decline 10 years nearly
half Of the then OF deposits The have
SpnKport Donds 40 present there IL an VI income
the 10 that there
by depostors do not lind that 10 " expedent safe
depoitos 20 permit this savings bank 70
depository OF trust FUNDS Therefore present the facts
YOU compliance Win section ~, chapter 37i Laws of
Is75 the kesbect.
falls HkNkx Ia LAMB. ActinR SupsrintnndaaA