The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-21

a. 80 I. WI
Mortgages and pledges
on real estate
Good and available. $685.
s3A ~ .-..+.-.--...t. 2ss.169 81
Fair. ai1Tb1s 10. IL. ....... 1916. 4Bo ~
Doubtful. 1901 500 Of. .....-1se.7al 10
Bad, S5S 300 "a ..........
Judgments, e25, 800. ......
Heal estate. .....++-.+.. .1B3,To0 90
Cash on hand.......+...... $4,000 90 s17 ,0A "a
Deficiency. Observation-Disclosures. 1914. 1865 10
The practical result Of orr labors can be ex-
pressed most clearly. we think. BY saying the
bank holds sufficient assets to pay 81 per cent OF
re s sns 5u we eonsdor and
efficient management OF these assets, and In
some cases the most tender nursing. Ia abso-
lutely necessary to secure yield of the above
> Your committee has carefully inquired into
Z the causes which have eliminated In the recent
suspension and we are perfectly satisfied that
this large deficiency of over s6oo.OOo is due al
moat entirely 10 the universal shrinkege In the
The d chatter 81 the institution has been very
carefully and ably drawn " was the evident
Intention Of its trainers TO include every possi.
a bank entirely without capital Of ita own.
The sixth section OF the charter limits loans
on real estate to 90 per cent Of the ap
4 a sspe sa that Stses have
been violating this beautiful PROVISION from q
, commercial existence. These losses on real
estate In excess of 80 per cent may have as-
paared safe enough Mt the Time but the trus-
tees had no right TO deviate from the charter,
and the present disastrous result elbows that
their Judgment was incorrect, and that the
charter Wses % e @ md Ss bsa
would have been nil along In an independent
position, and could have saved itself from lose
you that. great IA the shrinkase has been real
estate has never declined 90 per cent In any one
or tvs, years since the war.
On the contrary, we find that. In view or con-
tinued depreciation. the trustees have been
wanting In prudence 10 falling to obtain add
nom asstors hst inasmush ~ The Minority u
of the mortgages are OF long standing and re.
Movable from year to year. at the discretion of
ample opportunities afforded to enforce by
We believe that the institution was insolveut
when the charge OF 1t was ssumed In 1875 by
the present Incumbent: but we Tall to discover
Any evidence OF actual loss from investments
made during his administration.
At the same time we emphatically condemn
the policy which appears to have been pur-
sued, of retaining fictitious values Ia the
item OF real estate, by which an actual shrink
age" OF no less than Ss2s,292 ST Is made to
The action Of certain depositors In the State
courts and a bill in chancery filed In the
United States Circuit Court by foreigners, de,
feats a plan your committee had considered and
We're to g. you 6nses %nda
the auspices Of fifteen trustees to be, chosen BY
you. or eight new trustees. to be added to tho
administration of your affairs.
In view of the probability Of the early ap-
nointment OF receivers by the Judge Of me
United States court we respectfully suggest
that the depositors Join Ia a petition TO the
aforesaid tribunal. naming two responsible par
lion might be received with favor by the court
and II successful. would insure a reliable man
agement Of the little all that is left OF the New
ofieahs S"'inSS rs 4. l. sERRILL, Chairman.
HORACE I. HARDY.
The report was received and adopted ex-
cepting that part of it which referred TO the
appointment OF receiver
The following resolutions were offered:
That the business Of the New Orleans Savings
Institution be continued by making II a stock
hank with q capital stock OF $500 900 or more,
denositors to subscribe the stock out of the
fieposits now in the bank.
That ali sums over aud above the amount of
suhscription should be settled. nj the rate Of
valuation named by experts. by time certificates
Of u. Is and "a months.
MIR. Jas. Mcconnell said that the charter of
the bank showed a difference between a
trustee and director and the penalty OF
malfeasance on either part.
Col. T. O. Sully said that the trustees had
not performed their duty.
Mr.. Mcconnell said be did not wish to ex-
cuse the trustees, but he thought they were
able to conduct the affairs OF the bank.
There was considerable excitement among
the depositors at the thought that receiver
should be appointed.
Judge Kennard moved that 1t was of no
use to appoint receiver: that the present
trustees be retained Carried.
The resolution to make the Savings Bank a
stock bank was lost.
DR.. Knapp said: Il would like to know the
names OF those who were happy enough to
draw their money before the bank sus-
pended"
Acting upon the suggestion Of DIR. Knapp,
1t was resolved that the experts should fur
nish a list OF such persons as drew their de-
posits between the twenty-first and twenty
eighth OF February. The following is the list
ACCOUNTS DRAWN FROM FEBRUARY 81 TO FEBRU-
AIRY Is. 1879. OF AMOUNTS or $500 AND OVER
FebFrnsg Al