The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-17
MANHATTAN BANK ROBBERY
WHY CONGRESS WIS URGED TO RE-
STORE TINE STOLEN BONDS.
a lawyer Of Repute Negotiating with tho
Thieves-Ihe Danger OF Deiay-A stock
holders Confcssion-OnIy - FortnIght I.ert

- EfNWNtF " NewOuottnH Wtth tho
Thieves-Jhe Danger OF DeIay-A stock
holders Confcssion-OnIy - FortnIght Iseu.
WASHINGTON, Dec. 16.-Now that the bill
restoring TO tho Manhattan Savings Bank tho
larger part OF the securities stolen from its
vaults seven weeks ago has become law the
members OF the Committee on Finance in the
Senate. whose influence passed. tho bill. are
moro ready to explain the reasons which led 10
thoir prompt action. Tho bill authorizing tho
reissue OF the registered bonds stolen from the
bank was drawn after consultation with the dc
facto Secretary Of tho Treasury. One OF tho
trustees came here and laid the case before
him. which no afterward laid before the Finance
Committee Of the Senate. and tho form OF the
bill leaving the custody Of tho bonds. after re-
Issue. with tho Treasurer. was then suggested.
Once drawn. the bill was taken to Senator Ker-
nan for Introduction. He presented 1t by re-
quest" though he. Senator Morrill,. and other
mombers OF tho Committee on Finance were
fully satisfied by the statement made by the
trustee who appeared before thom that tho bill
ought TO PASS.
The facts presented wero certainly extra
ordinary. Tho representative OF tho bank said
that respectable lawyer in New York had pro-
posed to return tho stolen bonds 10 the bank on
payment Of round ransom. Some lawyers on
the Committee were inclined 10 doubt whether
any respectable lawyer could figure in such
transaction. but the trustee asserted that with
out mentioning names he could only say that
the lawyer had large practice. wns widely
known. and was treated as n respectable law
yer 10y the courts before which he pracised.
This offer 10 soil was accompanied by the
threat that in case II was refused q run
would be begun on tho bank. This
made matters serious. Barely a fortnight
given its deposliors. They numbered 1900.
Tho bank. in anticipation Of a run, had made
arrangements for turning three millions Of its
securities into cash. II could only do this at
sacrifice. Even this might not be enough to
allay alarm. and run once begun might lead
10 the appointment OF "A receiver. with the usual
loss. In TACT, between the stolen bonds being
In tho hands OF one receiver selected by
tho burglars. and the fear that the rest
of the assets would be- placed in the
hands OF another receiver selected 10y some
court. the trustees regarded the situation ns
urgent. and they asked Tor immediate action on
the bill. The the Committee agreed 10 rccom-
mcnl, the 0ihccrs OF the bank going on 20 say
that the rest oi the Ulunder was made up either
Of called bonds. which were practically unsala-
ble, or city bonds. Of whom tho holders were 40
few that snes and the payment Of interest
blackmail on the registered bonds being mado
unnecessary. the bank felt that IL would be ablcto
decline paving a cent for the recovery Of the
the registered bonds should remain in the
Treasury. the trustee snid. with some truth.
presume. after what has happened. that tho
ned 10 know that the bonds arc in the Gus
tody Of the Treasury Department as In ours"
In case tho bill passed., the bank hoped to
strengthen public confidence by Announcing
that II would begin paying dcpositors before tho
expiration Of the sixty days. Both tho Senate
and the House dealt with tho bill promptly;
some quarters the bank authorities wasted
thoir money. The bill passed on lie merits.