New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-02-10
SAVINGS BANK LEAKS.
RESULTS or NIX. LAMBS NQURY-CAsES OF IN
AUTHORIZED EXrEVDIIURE REPORTED IN oNE-

RESULTS OF NIX. LAMBS G>QURY-CAsES OF UN-
AUTHORIZED EXrESDITUEE REPORTED ~ oNE-
HALF OF THE EXISTING SAVINGS BANKS.
IFRoM SPECIAL CORRESPONDENT OF THE rRfBUNEI
ALBANY. Feb. 9.-Mr. Lamb, the Acting
Bank superintendent. has tabulnted the reports made
in reply To his circular o. september 1879. respecting
the expenditure OF deposits IN savings banks IN viola
ton Of law The circular. it VIII De remembered called
a,on the officers ~ savings banks to report any r-
regular expenditures winch had been made, such
~ paying trusees for services upOn commit
tees subscribing Tor charitable objects, paying
for annual suppers aud the Ike The reports received
from the banks and from examiners present some suS-
gestive resu,ts TIE savings banks now doing bust
moss which report irregular expenditures III the past
are hftynIne m number. Those wulcn do not report
such expenditures are hfty-eght In number This emu
neration does include failed aavnga BANKS, III
which, II Is fair 10 believe. these practices reached their
greatest development
The circular asked for all payments by each bank
since It opened Tor business. Mr. Lamb was persuaded
that such Of power % recent date. and were
not he found in the earlier administration Of savings
banks In the ate. The result Of the inquiry confirms
this opinion / a curious and striking way The total
payments this head, from 1919 10 l562. are re-
ported be $3.50. whio the total payments from leO2
90 1879, - reported, aggregate F23oOJO, exclusive OF
ali that were made b. failed s'vugs banks. Which
numbered twenty-uue. IL other words. OF The tota.
expenditures Of this kim made ~ tie Swings banks ot
this state during tho whole period Of their history less
that per made m the iortllhree yc"rs pre-
ccediug s62 and than % cent m the ecy n
teen yeur- following. kinds of payments clearly
illegal were cont nued IN 1878 ana 1879 10 put an end
t transactions VI this tho Bank superintendent
last week made the following order upon NIL ravI' -
banks which have found violating the prohibtory
provisions OF the SAVINGS bank law:
To he Trustees and O1icers Of he -
Waereds, Iue General savings BANK Act tchhp. 01,
Laws q. 1879 declares thar ~ trustee or officer o.
ANY sayings institution shall any manner usr Inc
funds o. deposits SUCH corporation. except To mae
necessary payments a. are AhthuiiAed
by tne board of Trustees = and .
Whereas, The Attorney -GeucrA upon the Application
OF Tie superintendent, mas ven IN opinion, thtcu
july Is. 1879 wIich thai pay mems inr certain
pur pose, specified are clearly Illegal, 10 wit;
l. 10 pJY trustees compensation Tor ncIFlcfN upon
committees To pay The chairman ui standing com
ulee trustee IN acting ~ Sucu chairman
annual supper OF entertainments Tor llo
trustees T. To pay Tor any testimonial Tor service OUT
s,t OF the bank D. 10 make contrib buttons Tor cnari.-
De benevolent objects T. To make grttutOu- Appro-
prlnttOns TO the widows OF deceased Officers /;
: 10 bcstOW gratIlues upon Officers Tor
I,a.t aeryices who had been pad regular sniar es ;
a In pny lobby "a procure general legislation
m Offices or utnrr person. Tor tnr corporation And
Whereas. Il appears 10 the superintendent, from TIE
reports examiners ind lne settlements or officers OF
many savings hABks, tnht payments nave frequently
been made such unlawful purposes; now
Therefore, /, Henry l. Lamb Acting superintendent
bank Departments. Ia compliance WIN ciAp. a.
Law. OF 1879, 10 ncieDy direct the officers AMI rusteH
o s,ynK- banks CONFORM strictly with the require
mei restricting the use OF the funds or lie
uOsita OF their respective natliutluns