The New York herald., 1878-03-09
THE UNION DIME.
Special Examiner Best's Official Report
Of the Recent Run.
A STRANGE EXHIBIT.
Officers Of the Institution Charged with
Plotting Its Ruin.
THE LESSONS OF THE PAST.

Mr. william J. Best who was appointed special ex-
amincr of tho Union Dime Savings Bank, last Sop
tember reports OF the unsoundness OF that IN
stitution were IN general circulation, and It was
being subjected TO an injurious in consequence,
Just completed his report to Acting Superintend-
ent Lamb OF the Banking Department The report,
which 132 closely written pages OF foolscap,
sets forth tho conclusions arrived at by Mr. Best,
analysis OF 900 foios, tho testimony OF somo
forty-four witnesses examined by him In the course
of his investigation
The report states that the examination ordered
by Mr.. Lamb reports had reached him OF inn
prudent cement on the part Of its OIL GERS de
wished TO prevent the disaster threatening II. From
June to the tmo Of Mr. Bests appointment one
fourth of tho deposits had beon Withdrawn. After
reciting the thai led 10 his appointment Mr..
Best sketches brief outline the history OF banks
origin and progress
"a MEN"
He says:-"Its progress was rapid beyond expecta-
tion and promised to place among the foremost Of
the for savings In this city Its great prosperity
however, excited tho cupidity Of a few designing men
IN the Board oil Trustees who spared no Effort 70
secure control the institution. Chief among these
place Mr.. Joseph w. Orvis and Mr. John Mack, who
succeeded In driving from the Board number Of its
most valuable members. To the misrcp presentations
of Messrs Orvis and Mack must also be ascribed tho
tho past years Their policy to havc been one
OF rule rum and that the Institution Is not in
the hands OF receiver Is due to the prosperity which
II enjoyed previous TO 1872 Mr. Orvis OF
tho incorporators, Mr.. Mack being elected trustee
soon after the institution began business Mr.. Orvis
served Tor several years chairman OF the Finance
Committee, but in 1859 he dropped from his place
that mrni;tee. Thencelorward he seems TO have
airccted crusade against the president, John
Mclean, who finally ousted in 1872 MIR.
Napoleon J. Haines taking his place. Whatever
credit censure attaches 10 this change and
the circumstances under which it was brought about
belongs TO Messrs Orvis and Mack. l should DO the
latter suggest that his intentions appear
10 have been good He was. however, evidently con-
trolied by Mr.. Orvis who knowing his weakness for
notoriey as "a reorrner appealed his vanity by pro-
Tossing act as second. But clear that the
purposes Of Mr. Orvs always occupied the ioresroun
proof of inns sna have occasion often to rejer TO
The testimony OF these parties"
Further on tho report says:-
eader" OF the Union Dime Savings Institution and "a
very active man. could not reconcile sns statement s
Finance Committee or syen eetfship M & at year
se5 OF the & bank hoy DO you explain Se "g,Sn i% 9d e
his position chairman Of the Finance Committee ~ To
which Mr. Mack replied MI Ghapn bat.onh@ed & tie
members and represented things different IRON what they
OPEN HOSTILITY CHARGED.
Tho report attributes MT Orvls' opposition 10 Mr.
Mclean 10 his failure to procure Office Of pronL
Mr. Best charges that eight years ago Messrs. orvs
and sack occupied position OF open hostility TO tho
rest Of the trustees, the former from purely selfish
considerations ana disappointed nopes and The latter
as the ult OF mistaken idea OF reform and from
desire Tor notorioty.
In OF your (Mr. Lamb's) letters in relation to
this investigation you stated that 'Mr Orvis Is the
only connected with The bank who has made COM
plaint of its conduct 70 this department" You have
also Informed mo that he and MIR. Mack In August
last pressed upon your attention tho Importance of
n prompt and thorough examination OF its anairs.
Soon aiterward fearing they could not control the
selection of an eyamiDer Mr. Mack was prompted 10
send you the letter OF september 8, 10 when refer
made IN his testimony.
The following upon this point is interesting and I'M
portant:-
O. DO you recoliect letter written to Mr. Lamb IN the
don't reeoilee: the ealing orth this letter
q Was of WHICH speaking
your voluntary by else
a. cannot rec9ect that; think Mr. orvis and myself
wrote th letter ogetner he was ut my honse every night
aud presume showed 1t to him and talked 1t with
q You speak of Mr. orvis, a ,rusteos A. Yes sir.
a. Were not assisted In the preparation OF that let
mitted that him that word oicialiyn does
Uv,s il e cns the whole letter he can 40 so because
his mind better prepared Tor such things than mine
III the same connection quote from the testimony
oil Mr. Orvis, Us foilows:-
q Do you know of - letter bearing date September s.
1871 sent .y Mr joan Mack TO Mr. Lenb asking him to
herein stated A. think do
eterr rho subject oftsat letter talked
q the writing OF this letter sugsostod by you
A think II was matter OF mutual consultation having
appointed that would honestly Gu
aeavor g. 81 meters right aud It was thought proper to
q rhe writing o. the letter then. may fsirly be do
Is my imprssson.
REJECT OF MR.. BEsr's APPOINTMENT
My appointment to examine this instilution was
known To Mr. Urvis evening OF SEP pteniber 25
only few hours alter had received my mission,
ANA The news wrs not pleasant TO him A oommittee'
flaI no Or Mac.
lcucr vi SEPTEMBER D. had been appointed by tie
Bourd OF Trustees at thor meeting tho 10Th Of tho
month TO investigate The condition OF the
tu,on. THIS committee not only originated with Mr..
0rvs. but 1t would seem. that he largely controlled
Its action Hc iaied, however, IN his Efforts TO
init IT'S members TO the sending Of asub-ccmmttee TO
Albany TO induce you either to stop or delay Tho cx
animation you had ordered. | introincc IA lew cx-
tracts from the testimony upon this point snail
begin with Mr.. Orvs:-
q On the evening Of september IS the committee
On that occasion dd you read Telegram purporting
10 como from the Banking Department In reference
appointments TO make examination OF thss institution
didn't read telegram purporting to come from the
9 Dia you Geaa telegram stating tha. had been
Understood 50.
q Bu. you are sure that you didn't read telegram 70
he committee on tbs occasion referred TO comuni-
Gated conhdentay 80 the comnee that had KNOWLEDGE
e the TACT tst you had been appointed steeiH examiner
pia you show eiesran on that occasion TO that
h,pt.d IN. teeg,,tn 10 any person to read
q Did you yourself any serving that CON.
mi,teef A. NY recollection is tna stated tho Tact that
nnderstood Mr. Best had been appointed special exam
liner OF the bank
THAT TELEGRAM EXPLAINED.
Mr.. Best says, "ocverHl witnesses CONTRADICT Mr..
Orvs every important de!a of the foregoing testi-
mony," and cites tho evidence oil NJ Daring
tam this charge. In confirmation OF TINS Mr. Best
also quotes from the testimony OF Mr. Ross:--
O. Din't the committee session ~ the banking
house the evening of ,, a. ies. sir.
DiJn't Mr. vryIs On that occason Inform commit.
OF appontm mt by tue Bank Department make
an examination OF the insniion A. lie did. Ito
produced a telegram aud named the examiner.
o. Did he read the telegram the commItteeG A. lie
did.
q Did he read the signature to the telegram A. No,
a. Did he inform the you personally 40 to
the Of the party whom that teo gram was
ceivcdf a. cAunot recoect that uc did. he
IL from Bank Department else Inferred
IL.
Further on this witness Is quoted as snyIug, "Mr.
OfvIs got ~ and paced the loor ION bearing OF
Bes.'s appointment "and saId TINS terrible,
such an examination Is really TO be ieared' "; also
that he (Orvs) intlmated thai the examination could
IlL4... .-l.a-.