The New York herald., 1879-09-21
What the Managers Think of Acting
Superintendent Lambs Circular.
TENDING TO IMPAIR PUBLIC CONFIDENCE
Suspicion that Irregularities Have Been Dis.
covered by the Bank Department.
A MEASURE OF PRECAUTION.

which letter published in full in tho HERALD
yesterday. has created no little surprise in the
minds of the savings bank officials. and many Of
them spoke freely the subject to representatives
of tho HERALD who called them yesterday learn
their views. What these views is told below How
the public may regard the whole thing is perhaps an
entirely different matter but no one who remembers
tho suffering and loss entaed upon the poorer and
thrfter classes OF the people by the panic OF four
years ago, in which the weaker savings banks all
persisted. fail to deprecate anything which may
tend to shake public confidence in the sound sur
viving banks. Neither any fault be found with
any effort properly made by legal officials to rectify
any abuses that may exist in the management of any
repository Of the savings OF the people. Whether
the effect OF the circular letter will be to remedy any
abuses remains to be seen; but certainly there il
nothing, far be learned judged. to occa-
sion any uneasiness the part Of depositors or to
indicate that any considerable sums have been
squandercd. Mr. Lamb himself expressed only
lately his great satisfaction at the condition of the
savings banks and his confidence in their solvency
and reason for any change OF opinion his part
Is known.
His letter. it will be remembered, called the
banks for explicit to the question whether
eat any time since the bank opened for business"
any money had been paid for "each or any Of the
objects named below"
!. To trustees for compensation for services upon
committees.
q To chairmen of standing committees for sor-
vices as charmen OF such committees
>. For entertainments or suppers tor the Board of
Trustees.
l. TO pay for gifts or testimonials to officers or
past officers or to other persons outside of the bank
5. To make contributions for benevolent or char
table or sanitary objects.
fcers.
Z. To pay donations or gratuities to officers or en-
poyes for past services who had been paid reg ular
salaries for their services.
8. For Christmas or wedding gifts to employees of
the bank.
8. TO pay costs and expenses to get bills through
the Legislature to pay claims for interest on illegal
loans or to pay other claims.
TO- To pay for the alleged services of agents lob
bymen to procure legislation for savings banks
IL To pay for portraits busts OF past or pres
ent officers for the savings bank.
THE QUESTIONS OBJECTED TO.
The principal dissatisfaction felt by the bank off,
cials-and there undoubtedly is feeling of dissatis
fnction--is not so much at the fact that Mr.. Lamb
should inquire into the subjects mentioned az that
he should put his questions in such form. They
think that with the facilities examn alton which
he has he could have obtained all the information
he wanted without publishing circular letter. and
his policy in doing this Is regarded questionable.
I'M the Bowery Savings Bank. Mr. Coggeshall. the
secretary. was found busy over his accounts and
SEEMED litto reluctant to talk the subject ALL
He Bald that in the absence of the president and
vice presidents he would rather not discuss Mr..
Lambs letter. He could not form any judgment as
to whether Mr.. Lamb had acted Of his own motion
in sending the letter the banks whether he had
been forced to take action by the opinion
OF the Attorney General quoted in the letter.
PROBABLY SOME PICTURES BOUGHT SOMEBODY
Mr. William G. White. the comptroller of the
Blocker Street Bank. said that he really knew very
hon tba IN, ha alax
as there had been meeting of the trustees since
it was received. and the principal officers of the
bank were absent. He said he had asked one or two
of the whether there yes to be replied
to any OF Mr.. Lambs questions and they had all said
no. Mr.. White very certain that there
had been any Irregularities in the management Of
his bank. but naturally unwilling to say
whether he thought there had been any irregulari-
ties on the part Of any other banks. Probably"
said he. "Mr. Lamb found somewhere that there had
been money expended which should not have been
Perhaps some bank may have bought some pictures
something OF that kind. and then after asking the
opinion OF the Attorney General ho went ahead
or course, IL he started he had nothing else to do
but to make u clean sweep"
"Was the general panic OF few years ago caused
in part by Irregularities of the kind specified in
Mr.. Lambs letter?' asked the reporter
"No, don't think A panic is started easily
among savings bank people. They are peculiar and
very cautious, and IL one becomes frightened his
neighbors know about it at It's ike lot of
low"
Mr. c. f. Alvord. the secretary of the Manhattan
Savings Bank. talked freely about Mr.. Lambs letter.
although he did not criticse it as keeniy as some
Others did but after expressing his views freely
the reporter he said that he would not be willing
have them published in an interview.
MT. Webster, the secretary of the Dry Dock Saw
ings Bank. seemed rather amused than other wi SO
Affected by the letter. lit doesn't amount to row
of pins he said. smiling. "All that we know about
it," he continued. ''is that We have received tho
questions as they were published in the HERALD,
and that we have got to search over our record of
expenditures and classify them ALL and see il any Of
them come under any of the different heads he
specifies. don't know anything about the origin
of the step which Mr.. Lamb has taken, and don't
see how ii can affect the standing OF any savings
bank. The whole thing don't amount to q row Of
pins"
Mr.. q. n. Conklin. secretary of the Metropolitan
Savings Bank was equally impressed with the belief
that there was nothing III the letter. His main
point ot objection was that he feared lest the public
should imagine that something OF importance lay
behind 1t. 81 have always thought well OF Mr..
Lambs ADMINISTRATION OF his Office" said he. 'and
presume that he has some for doing what
he has done; but do not know what 1t can be. I
know nothing about the origin OF the inquiry, and
We are not ut all disturbed by IL here.
.'Mr. Lambs examiners 40 over the accounts of
the different banks. he continued, "rcguarly and
they do thoir work thoroughly for ho is thorough
man. Indeed. the general good condition of the
savings banks is due large measure to his
thoroughncss and efficiency. and. he himself says
publicly that the savings banks are in good con-
dition. do not the of going back twcnty or
thirty or forty or nifty years into tho affairs OF u
solvent bank.
InRRGULARITY?
AS far as we are concerned we have not bought
suppers for our trustees; we have neither boug ht
busts nor gone on 'busts' here; there is only one
point on which must answer yes. IL has been
habit to aivo clerks $50 800 at Christmas
time"
''was this charged to salary aecountY asked tho
reporter.
''It was charged to profit and loss account but
looked upon as salary. II has never gone above
800, aud consider that the clerks earned the
money. IL this is an improper expenditure. we
have made 1t; but did consider 1t 1t is u
custom among banks. both savings and business
banks"
Bank inclined to look on the letter -
rous thing than 1t was considered by Mr.. Webster or
Mr.. Conkin. ut is mystery to me- he said frankly.
''and | don't understand what 1T means what
started any such inquiry. MIR. Lamb has boon in his
present position three or four years. and he ought
to know If there have been any paym made ile-
gally. anu sure thought his examiners had looked
thoroughly enough into everything had in the
bank. did not think there was anything left that
they did not know. Tho question is, now that the