The New York herald., 1878-03-09

ton of Mr. Deming He had no claim against the In
siitution Eor !he property In question, which had
already suffered from his neglect, Tor which re-
ceiver he should have been held liable. little reso-
lut on the part OF Mr.. Arnold would have accom-
pshed ths and would also have averted the large
payment heretofore spoken Of Having permitted
this to mislead or intimidatc him, am OF the
opnen that Mr. Arnold is responsible the institu-
lion for the money thus wrongiuily paid, well as
tho amount gwen TO lnness under similar crcum-
stances-in ali S2s, 800
An amendment to tho charter OF the Institution,
passed April 8, 1866. provided that ''no president
president or trustee, Officer servant o said
corporation shall directly or indirectly borrow tho
funds of SAID corporation or its deposits" Mr. Arnold
has violated this PLAIN statute by borrowing the
funds of the institution the of his broner-n-
law, Mr.. James II. Greensward heretofore spoken OF
in connection with the Brdsal or Lexington avenue
The r1mors which were circulated upon tho street
and through the newspapers during the latter part
october eliminated In the run on the institution ana
occasioned me much extra work and annoyance. l
also plied with anonymous and other communica-
tions whose purport was that the ollcers wero IN
SALARIES DISCUSSED.
word the salaries winch had been paid the OIL
before the reorganization effected Vt the opening
ol The present year. II Is customary to descant
narshy against large saariss, but where work is TO
uone and skill aud activity are the desideraa IN
Its accomplishment tho compensation should be
In harmony. THIS is plain business princl-
pie which, unfortunately for corporate management.
Is TOO often disregarded. AS rule, officers
OF marked aptitude ana untring energy, who
are always the alert to protect and advance The
interests committed to their Keeping, are ire-
quenty underpaid. This, however, WAS not tue case
IN the Union Dime Savings Institution, whose trus-
the payment OF salaries to It's officers
and several oil tue higher employees, out Of
all proportion TO the services rendered II
IS the bane OF corporate institutions, moro
especially banks Ter savings, that among
the often found lew restless and ad-
venturous spirs, who are capable OF nothing other
which ministers to their personal vanity or
pecuniary ntorcst My examination would not have
fulfilled tho requirements OF your letter oil insruc-
mad neglected analysis OF every Official act
oi the officers which had produced adverse results
The unfortunate transactions whose pistory have
given, you will recognize, do not warrant the mis-
chievous stories OF when they have been mado the
occasion. trust they ARE now set AT rest forever
IL has been demonstrated that the hrst hints de-
rogatory tho institution originated with Mcssrs.
Orvis ana Mack whose completely in the transactions
which they sought 10 aganst tho late officers is
directed your attention thereto aud the use they pub
cly made thereof Is, 10 say tho lensI despcabc IL
Will hardly be donied that the reorgan OF the
Board oil Trustees was indspcnaOc To the welfare OF
tho institution aud that the interests o the depositors
consulted dropping Messrs Orvis and Mack. A
grave responsibility rests the present officers an
trustees. The errors OF tho past must be corrected.
To accomplish this anu restore puUlic c0n1de Ia
the Institution will require the exercise great
judgment the practice Of the most conservative
management trust that the gentlemen now In
charge may prove them selves equal the occasion
not only for the good Of the Union Dime but the sav
ings bank system generally, winch has suffered SO
much in the past from tho operations OF trustees who
have abused their trusts
have the honor to romain respectfully your obe
dent servant,
WILLIAM j. BEST, Special Examiner
To HgNBy L. LAMB. Esq, Acting superintendent,
Banking Department, Albany, N. Y.