The sun., 1879-02-22
VOL. XlyI.--N0. rs.
RESCUING THE MANHATTAN.
MEISrRES TdKEN DHEKEBY THE BANK
NAY VERY SPEEDILY RESUME

MAY IEhl NEEEDfI1 hESUME-
Dolinr for Dollar to he Paid the D.po.,t.
ors and the Banks Husiaess to be Contiu-
ned ~ OF Oid-The nigh Rank that H~r,..
tered Bonds will Take In the Future.
The trustees OF the Manhattan Bank con-
summnlcd an arrangement yesterday which
they believe will open their doors to the de-
pos.tors on Tuesday next. Previous to tho
meeting 1t was shown that liquidation might be
aycrted aud the business kept II the trustees
wrrc willing 70 20 to their personal property
AMI pledge ti00 900 TO the United Stntes Treas
ury Secured by this amount. John Sherman
would. It WIS snid. turn over to the bank t4O0-
OJo Of the duplicate bonds authorized BY the
recent net Of Congress. and with this sum tho
bank would be able to pay dollar for dollar.
Before the meeting was over the trustees. or
some Of them. incurred the obligation. and 1t
WIS announced Yesterday afternoon by the
officers of the bank that now all had been done
BY the trustees that lay in their power
The hank WIS robbed on Sunday. Oct. 27. Of
t27477O0. The amount Of the robbery. and the
boldness with which the robbery was perpe-
trutcd made II a crime without parallel in this
country. Before this robbery that Of the North
ampton Bank was tho boldest and most sue
ccssiul in police annals. The Manhattan Bank
robbers. niter opening the door OF the vault.
made short work with the safes. With chisels.
jmmies. ratches. aud coppered sledRe ham,
mers. they forced the burglar proof safes. and
took away t2,700.000 in bonds. t2,5O0OO0 OF
which were registered. The banks surplus at
the last annual report was upward OF $780,
more than sufficient to cover the net loss. Tho
trustees voted Mt meeting the day after the
robbery to enforce the sixty-day rule. There
were about II 900 depositors, and s7.0s5. .474.01
was due them. but only l30 gave notice that day
ofther intention to withdraw their deposits at
the expiration Of the sixty days. Subsequently.
as IA further measure OF protection. the officers
were enjoined from making any payments. SO
rgdly has this been enforced that not cent
has been paid by the bank even for necessary
expenses. In such cases rs demanded imme-
diate payment the sum has been advanced.
A list Of the stolen bonds. with affidavits ap-
pended. was sent to the Treasury Department
on the Goth OF October. The amount OF Gov
ernments tnken was sl.64S.000 in 1881 fves.
skies. tcn-fortes. four per cents and ive-twen-
ties. The 1ve-twenties were for $4,000. and
were the only Governments not registered that
the bank held. A caveat was enterad against
each bond and fled and the Register OF the
Treasury said that interest would be paid to the
bank Just the same MS though 1t hold the bonds.
He also announced that the bonds could be
duplicated by the Government on the fling OF
security for double the amount OF the stolen
bonds. This involved security for more than
5000 0O0 The bank found itself in tho posi-
ton OF owning property on which II received
interest but which neither It nor any one else
could control. The bonds could not be nego-
tated by the robbers. The Government would
not pay them. and yet. unless the loss was made
good. and the bonds themselves or something
equally good were in the banks vaults. there
was nothing for the banking department to do
but 20 declare the bank insolvent There were
also stolen something over a million In New
York Stale, county. city. and n few miscellane-
Gus bonds. nearly all OF which were reg stered
The question was what was to be done At
all the meetings Of the trustees and the confer
encrs with Superintendent Lamb. Nice-Presi-
dent Mclean. Trustee Walton. and others in
gArded precisely rs mortgages in respect OF the
possibility Of duplicating them. and by such act
millions in mortgages that the robbers passed
by. They would do them no good. because all
the bank had 10 DO was TO go TO the record aud
get copies. Mr. Mclean thought that in view OF
oil the circumstances an act SO worded rs 10
quart all Interests could be made law. which
would relieve the bank. give the depositors
their money. and do no injustice to the makers
OF the bonds; Such an act would authorize up
on proof ~ the loss OF the originals the issue OF
duplicates TO the owners. aud by so doing can
Mr. Mclean aud counsel OF the bank went TO
WASH ngion, and while there received warning
from the robbers that it would he useless or
that A. any ratio would cost too much 70 attempt
anything Of the sort in Washington. " for there
are more thieves there than in New York"
However. the bill was passed and became law
nv days aiterwnr'l. The bank thereupon soon
after received $500 900 in new bonds but John
sherman refused to give duplicates for the
other $500 900, for reasons that have not been
very clear 20 the trustees. unless the Treasury
wgs secured,
A similnr law was passed 10y the New York
Assembly, and all Of the New York State. county.
or "lty bonds were made good and the rlglunls
were made null and void. They are worth TO
tue lh.evrs Just what they will bring for waste
A. JOHN Sherman insisted upon retaining
tsuu.ooO ~ the duplicate bonds. the bank could
If called upon to do 50. Itneeded about, $500 900
more nl assets Than they had that could hc han
ma to ds VII 9"ys M"s Sen
suggested that the bpnk should BE- allowed 10
pay hiiy. or seventy cents on the dollar The
suu"rirt"ndrnt WIS visited last week by the
epun--i ~ IN" hunk. and he then seemed TO feel
ti" h,r" was only onr course for him 10 take.
an "t ieast with ts Ilahiltl,s.
u.Tg"u II vas determined 10y Mr.. Mclean. Mr..
W. t'n un' oilers to put tn" suh.rct before the
uu~t""s nn' nsk thrm 10 make ~ among them
- lhN silnuOl n"crssary 70 get from tbs
., enNr sal Ir"asnry Tho bond! nl = similar
H,i. "'A'. ""ull SIN i"nva s4oO 0u0 I'm the
rau'e ' g"'n NJ rnan. which may ncw br
F;or" mes "a Hu asset, but not an ayAilnhle one.
- urN s'ep u hn fur IN bnns's offl ers To-
sbl'"r ~''or" Nupt, Lamb. which Will b. dons
a'nn'' AMI request nm to cause the nIun ction
Esirl.ins IA" bank from paying out any
Ainu"} T. br removed.
Ih" rrroVyy BY ths bank OF its asssts In this
ny ny - "n' roy novel, hut Il proves so banking
men sA'l Yesterday. the absolute safety. AZ far
~ ms. IRE. or rob cry Hrr Concerned. of regis
Er bonds Tor Investment of trust moneys.
d",y VIII h"w rank in this respst with bonds
AMI porieagps.
On r'-luing business. probably op Turslay
neat NE, Ky n-"s ~ The bank are 10 be cut
Gown in u" Lowest sustaining point. The sal
ufl's nave already been reduced from n fly 10
seventy i've yer cent.
SUPERISTENDENT SMITHS ALARM