The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-01-22
Up TOWN BANKS-BdNK MANAGEMENT.

III VIC remember correctly, tho first BANK
established in this city above Twenty third
street was the Bulls Head Bank. which started
on tho west side OF Third avenue between
Twenty and Twenty streets in
1854. Intended to minister more especially TO
the cattle interest. 1t soon attracted n very
considerable portion OF tho business Of
the building. manufacturing. and trad
ing interests on tho east aide above
Fourteenth street. The remarkable success OF
this institution which grew with the giowth Of
the city, and which for many years previous to
the dcfalcHtion and temporary stoppage in
1879. regularly paid dividends of 16 per cent
per annum, very naturally induced the cstab-
lishmcnt Of other banks. desirious of capturing
a portion Of the constantly increasing eust side
uptown business
or late years. banking facilities on the great
east-side thorough fare. the Third avcnae. have
been largely in excess Of the wants Of trade in
that locality Some five or six years ago. saw
ings banks and banks Of discount were strung
along the Third avenue from Cooper institute to
Fifty seventh street. while both Yorkvle and
Harlem bonsted Of institutions ost-nsibly estab-
lished for the safe keeping Of the floating cash
and savings OF residents OF those localities. In
too many instances. ns conAding depositors
have found to their sorrow witness the Third
Avenue and other savings banksl. those having
control OF these institutions used the money OF
depostors for illogitlmate purposes.
To prevent misunderstanding, 1t Ia always
we'll to call things hy their right names. In nine
cases out OF ten the officers Of these broken saw
ings banks deliberately swindled the depositors
and directly or indirectly put the money into
their own pockets. There are to- day double the
number OF east side uptown banks necessary
for the transaction of Legitimate business in
that district. While II may suit Presidents.
cashiers clerks. and employees to draw r.eu-
lar salaries. or while II may suit the owners Of
certain real estate to organize financial institu-
TONS. with the view Of renting their buildings
for banking purposes. stockholders should
understand that those OF the small uptown
east side banks. VIII ich. after paying rent sala-
rics. taxes. &C.. and conscentiously charging
all bad debts to profit and loss account, are en-
abled TO pay the dividends they declare out Of
actual bona fde net profits. are the exceptions
rather than the rule.
The Bulls Head Bank never recovered from
the deiacation OF 1873. 1t should most un-
doubleday have been wound w then. Now that
1t has gone into voluntary liquidation. because
of the falling of in its business. it will. as We
understand. be able ultimately 10 pay the stock
holders about sixty cents ON the dollar. The
depos.t tors receive their money as fast as
they call for it. The bank commenced iquidat-
ing with about $4,000 OF deposits. having
Tadually boen putting itself in shape Tor clos
ing up an Improbable business. over slJ5 900
have already been paid. leaving on hand about
$4,000. mostly in small balances. which are not
called for as promptly as s desiredby the bank
We believe there are not a few bank ing and
other institutions in this city. now struggling
against declining business. impaired capital
and heavy salaries which could. with advan.
tlge 10 the stockholders and'protlt to the public
follow the praiscworthy example set by the di
rectors and President Of the old Bulls Head
Bank. Banking more especially w town
banking. has been. liaO everything else great
y ovcrdonc.
The management of our smaller banks has
too often been associated with speculstiv. ope-
rations, antagonstc to the interests OF stock e
holders. A few men combine to secure the cou-
troll of u bank. and divide among themselves
and their friends the various Offices from
President to porter. before the institution has
opened It's doors. or is fairly on its legs ia IA
word. the bnnk is run by these few men, and
the other directors assist at stated meetings
of the board. without IN the slightest degree
directing inquiring into or understanding the
complicated interests which the stockholders
have intrusicd To- their care.
II the Case. Lambert and Wotmore trials
mean anything at ALL the meaning is tlat there
il an end now Of the misclicvous notion that
Presidents. dire tors. and trustees Of banks.
savings banks. life insurance aud trust cumpu-
mics ara mere ornamental dummies whose
| functions arc confined to Il simple ceuinntion
that the figures which some clerk or employee,
has prepared in his own way are correct. though
the fact may be- that they know no moro about
the correctness Of the thing certified to than
does the man IN the moon. Those fainili ~ with