The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-25
LOOKING INTO 4 BROKEN BANK.
Ex-secretary Humphrey Describes some OF
the Secret Workings

William Il. Humphrey. ex-secretary OF the
broken New Rochelle Savings Bank. was before
Referee Freling II. Smith yesterday to testify in
a civil suit instituted by Receiver Tompkins for
the depositors to recover $4,000 from the for
mcr President. George J. Penfield. and T. l..
Dishrow, J. Lambdin. G.. W. Davds. c. Roth G.
Wilson. $, Barton. G.. =. Ackerman J. Cole
brook. and g. Ferguson. trustees. Humphrey
was taken under Il writ OF habeas cornus from
the White Plains Jail. He was convicted before
County Judge Clifford OF embezzling $4,000
while Secretary of the New Roch lie Savings
Bank and hc has appealed TO higher courts.
His face Ia smoothly shaven. pale, and full Of
wrinkles. He wears lght-brown wig. Ex-
President Penneld sat near Humphrey. Hum
phrey said that he was formerly n stationcr in
New Rochelle. and thathe had no experience in
bookkeeping before President Penned asked
him 70 be secretary Of tho bank.
When Mr.. Humphrey was asked to testify In
regard to the general negligence Of the Presi-
dent and the trustees. the 1--WE lawyers around
the table objected. saying that specific breaches
OF official trust must be shown and not general
negligence. But Lawyer Keogh. for Receiver
Inmpkins. argued that proof OF negligence was
Were tacltly induced to put their money INTO the
bank. The referee allowed IN" testimony to
take that drtt; suhIec, to the objections Of the
opposing llNe lawyers on SPECIFIC points. lNl-
is important" Mr. Keogh said, because tho
trustees worked SO smoothly and quietly th1t 1t
is nlrult. II not impossible to pui your iing"r
on the sore spot in tile bank 's finances. the
banks accounts were loosely Kept heruusr
Humphrey could not manage them. and he was
uut in that position OF secretary because he WAS
known hy tho bank ofllcaS 10 b. incompetent
and morally elastic. and could be used for their
own purposes
President Penteld that he wH- not competent.
ana TINT ne dii not want ~" pos!i"n wh'n 1
was offered. But President Icuilnld pieuu0 !
thnt the bank had sufi red - deficit uudcr 90"
former secreury's management. and that tho
drncit hnd TO be covered NJ. D"poStors would
trust Humphrey Peniield p"ad"t. ana ~" bank
would get money and make good it- deficiency
subsequently. To make good tho d iiol"nry tru-
porarily. whenever the Bank Examiner made
his biennial scrutiny OF the bans bopn~ Troa~-
urer Dishrow put money. not the hanks. into
IN" National Trust Company vault~. received
vouchers for il, and put them into tI" bans :
assets until the Bank Examiner wont AWAY. and
then drew out the money again. The Pres -ldeul
had asked the witness after he oill 'ial exam
inations II the don lrncy had been made W In
the examining OH 'ials' presrnc"
Another way OF making up false nssets the
eN-secrctary said WAS 90 put IN the list o
assets mortgages that were owned by the hanb
hut had b""n paid. No legitimate earnings of
tina bank were used TO pay NJ the def IT. bul
some bonuses were applied 20 lquidnte ~
| The old deficit. Mr.. Humphrey said, wa-
s22ls27. The trustees IN 1870. mot. ani ench
Thaddeus Davids ami Z. K. Underhil paid thrii
assessments. The trustees then went out nuo
others were elected. lnere was suhsrQu"ul
deficiency OF more than 81 900.
What il this new deficiency p Mr.. keogi
asked; No one OF us has heard Of that before
The eN,secretary replied that it was not in
N" complaint.
Mr. K"oeh moved TO amend tho conrla' MT b,
adding loo to the deficiency Of t2jOlO al
| known 20 the President aui tn" Trustees
Mr Humphrey. continuing. rtt' THAT Just bee
! lore he qut tho bank AS r" rotary, the Pro~N
| dent said To him that the depOsitor- had grown
distrustful. and that ~ the hiIe mess was MOI
| growing So that the deficit coulG t' made pth'
! bank had better Dee closed The witness a. a il1
| desire 10 have the bank closed TINT the pTr-I
| dent soon niterwari showed MIN resolution
| u close the institution 90 bee rrHd AZ meeting
Of the trustees. My children N" Prr'sid.n'
! SAN 10 the secretary. nave considerable
| money in the bank and III Ike % g'i % out h'
| for" the meeting ttkrs place. You an iukr tl'
! interest on u mortgage and dltH the rH'rlp'-
| back The secretary refused. ne said p" 'ttu~'
| IL would be his ruin. He also remembered thu
| and mortgage taken on some real "sfat"
subsequently he made ont decd Of thut rna
estate IrOm tOlehrOok to the President. Mr
| keogh explained tnat the Pros, lent hud Owned
| before the transaction thrre-iourths OF thI
| land and Colrhrook nr-fourih As q hlur
| official the President was not allowed by iuw ID
! borrow money from the bank on his own urop
ery. his part was sold 10 CochroOk. Wi,
! borrowed the money and lhnn sold hu'k th'
! property 10 the President That moLey" MIR
heogh added, It is alleged was handed TO th'
| President by Mr.. Colehrook.
! Then the eN-secrrtary added that when th'
| Bank Examining Committee looked over th'
bank books the vouchers were not mluutely rN
| amined; the bond and mortgage u-sets wrr
not xamined carefully. and his own balance
pared beforehand. were signed by the Commit
| tee and sent to Albany