New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-03

cEAL THE TRUTH.
A gentleman in position to know thor
oughly the condition of affairs at the GrOcers'
Bank, said positively yesterday that large part
OF the paper on which loans had been made
to j, Lloyd Haigh consisted of acceptances
which had been forged. 1t is not known by
whom the forgeries were committed. Mr..
Haigh said that the reports of such frauds
were not true. The officers and directors OF
the bank have tried to prevent the facts from
becoming public. Judge Gilbert yesterday
appointed s. V. White receiver of the bank.
DETAILS OF THE DISCOVERY.
STATEMENT OF A MAN OFFICIALLY CONNECTED WITH
TuE AFFAIRS OF THE BANK-KEEPING BACK THE
TRUTH FROM MOST OF THg DrBEcroRs-INcI-
DENTS At THE BANK YESTERDAY.
Some startling disclosures were made yesterday
as to the Of the closing of the GrocerS Bank
IN the official announcement of the decision to
place the bank IN liquidation, the directors
attributed the action to the recent embarrassment
of J. Iloyd HaIgh. They did not init
mate IN any way that they had grave
snspicions of the character of the securities on
which Mr. Haigh obtained the loans from the bank.
and they expressed no opinion in regard to the
probable amount that might be realized from MS
debt to the institution Among the depoSitors ana
Stockholders who yesterday gathered az the
bank there was much angry comment upon
the action of the officers. One angry stock
holder dcclared that the directors had lost
their heads If the statements OF the ofhcers
were correct. The loss that might I've suffered
IN consequence of Mr.. Haigh's embarrassment was
not, the stakeholder insisted. sufficient cause for
putting the bank into the hands Of receiver The
impairment Of capital that might result from
nal lOss eCr,ld hay made
Stockholders The only officers of the bank who
were present yesterday morning sought to calm the
threats and fears OF the creditors by reiterating
their statement that the affairs of the bank were
substantially ia the same condition as ut the date
Of the last quarterly report, excepting the loans 10
Mr. Haigh. The officers refused yesterday to give
any particulars in regard to those loans and the
yiee-presdent George NJ. Leventritt, frequently
nlaced the amount at figures ranging between
500 900 and 100000. The numerous credi-
tors If the bank who were present dld
not hesitate 10 express great indignation at the
action of the banks officers, and several made
threats of legal proceedings against CHARLES Denl-
son. the president. whom they accused of completely
in the wreck of the bank.
A person prominently connected with the bank
said to TRIBUNE reporter that the greater part OF
Mr.. Haigh's paper held by the bank had been found
TO be forged. The loans had been made upon what
purported to be the dcceptances of prominent
houses in the steel and On trade in various parts
of the country OF the full amount of these
loans about 500 900, the acceptances were manly
foreeries The first intmatOD. this gentleman said,
that the bank officers had that the drafts were not
regular and authorized, was received on Friday OF
last week. the day after Christmas. The secret OF
the discovery was confded then by the president TO
one or two of the most active members OF the board
They told it to no one and the discovery unknown
TO most of the directors until the final meeting on
Wednesday of this week. Those who were acquainted
with the disclosure were not aware Of the extent of
the forgery and at once began investigations in re-
gard to other similar acceptances held by the bank
Even at the regular meeting of the board ON Tues
day. one of the regular discount days, they did not
make known to the board the fact of the forgeres On
the following day, however, the extent Of these
forgeries became more clearly defined. and special
meeting of the directors held at o'clock.
Then for the first time the majority OF the directors
learned of the discovery. They decided after
cons derable discussion that it inexpeaient
for the bank to continue business Joseph Periani,
the cashier accompanied by Benjamin +. Blair, the
counsel of the bank went to Albany with an appil-
cation that the bank should be placed in the hands
of receiver. They returned Thursday night and
Stephen V. White was appointed receiver yester-
W
giving bonds in the sum of 100000.
The officers and counsel of the bank maintained
silence Yesterday in regard to the forgery OF the ac-
eeptanees They declined generally 80 confirm
or DENY the statement, but the source OF the
information was such that there can be no doubt
that the closing of the bank has disclosed series
ofstartlng forgeries. by whom they were COM
mitted is not yet knOwD
DENIAL b Mr.. HAIGH.
Mr.. Haigh said yesterday afternoon that the
! reports of forgeries are not true. He owed the
| bank $50 900, of which $4,000 was secured by
| warehouse receipts and Endorsements which we're
not worthless; he had found on going into the IN
ventory of his property that his affairs in much
better shape than at first reported and could realize
n large part of his Indebtedness in from thirty to
sixty DAYS The creditors would not only receive
100 cents on the dollar and interest," but there
would be a surplus of $4,000
This denial by MIR. Haigh was made before the
positive statement in gard TO forgcries. which Is
| given above was obtained. Several attempts were
made later to see Mr.. Haigh IN order to
| give him an opportunity to reply to this
| statement but they unsuccessful. His
residence is in One-hundroda d-forty -sixth-st.
near Mott-ave lie left hls place OF business early
in the afternoon, but. to repeated inquiries made at
his residence late last night. the answer was given
| that he had not returned from the city.
TALK WITH PRESIDENT DsSIsoN.
/ Charles Denison, the president of the bank. was
found last evening at his residence, No. Park-ave
| lie said up to this time have RETAINED from
saying anything about this matter to the newspaper
| peoplc. because it was important that nothing
| should DO done TO the prejudice of the arrange
| m,nts that were in progress for the
benefit of the depositOrs and creditors
| Of the bank. But now we have succeeded in getting
Judge Gilbert to appoint a receiver and am will
| ing 10 SEQ the gentlemen Of the press. and give
| them any proper information they desire"
| Tho information they most desire now Is con-
corning the statement that is made on good author
"a, al "a, o,o, Of the paper of Mr. Hagh held by the