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


donbed since took hold OF it last April, although
had not had previous experience III banking. Of
course bank that has suspended is not in so good
position as though il had rot suspended; out It's
| business has been so good that am IN hopes tha'
some one will take hold of it and continue
Mr.. DenIson became president Of the bank IN
April of lasr year. From his father the founder
and original president of the bank, he inherited
large interest in the institution. 1t Is asserted that
the elder Mr. Denison left az his death In 1868 over
one third of the stock Of the bank at that time 10 DC
divided among his heirs. They now hoia nearly
one half of the present stock. which was reduced
from $500 600 TO $685.. 900 about four months ago.
The present President is understood TO have ac-
cepted the Office for the purpose of protecting the
large interest held by the family in the bank lhe
failure is a severe blow him. lie was not nj the
bankinp-house Yesterday. Early in the day nc met
the cashier Jose oh Periam, who had returned from
| Albany during the preceding night. lie was thep
driven in carriage directly 10 his residence III
| Park-ave.
TIE COUNSEL OF TUE BANK RET1cENl'
BENJAMIN f. Blair counsel for the bank was
called on last night at his residence in BROOKLYN oS
| a reporter of The TRIBUNE, and asked what lhioi
nation he could give relative TO the reported FOR
geTies.
clam not n director of the bank" replied Mr.
Blair. but was present at the meeting of directors
ON Wednesday afternoon, as counsel ID
case legal opinion should be required
As TO the mode of procedure. IL would he mghly ui
professional my part to reveal the secrets OF my
clients and it is with regret that have to define 10
| give information"
| ADMISSIONS OF TIKI DIRECTORS.
Efforts we're made to see all the directors OF the
hank in relation TO the fOrgeries. Some OF them uo
not live in the city, and Of those who do nearly all
disposed. II. w. Collender was found at his house
No 800 West Twenty tLmd-st., but he de-
clincd to discuss tho affairs of the bank. lie
said that his silence was due 10 the advice oil the
| banks counsel He admitted, however, that thete
were grave doubts as 70 some of the securities LOT
loans and that the officers of the bank. who "ere'
he sand more familiar YIN us ~ t mn matter ate
| Another director said yesterday that rouen
| statement of Mr.. Haighs indebtedness was gNe sa
ont at the bank a. 500 900 and that the warehouse
receipts given by Mr. HaIgh were worthless as ,ne
goods were not there. They amounted to SoooVo' nc
added that he was informed the warehouse receipa'
were so ingenlOusiy drawn that the gV1s W. 49,
! moved without giving up the receipts. ms lnloI
nation be said bad been discussed by the directors
| Nearly SIC. 900 has been loaned by the BANK 70
directors of the institution, but it Is claimed py
them that the loans are legitimate SeVei4i % VI
directors have hypOthecated their stock IN te panN
with the Dank to secure il for loans on tner indi
vidud notes, but 1t Is sea n ene "" IN
| has other collateral from them. Mr.. Depisoh' tne
| president, Is SAID to have taken q loau ioI
| $40 600 hypothecating 200 shares OF hls stOck ~
collateral One of the directors. when inquiry Wa
| made about il. said he did not know whether MT
| DSn,.on Was Indebted To the bank iorthat snm nov"
but be had several times obtained loans IN this way
APPOINTMENT OF THE RECEIVER.
| The receiver. whose appointment is mentioned
above. j. stephen V. White, the wel-known banker
of No Wall-st., whose residence Is NJ
No. 21s Columbia Heights, Brooklyn. He
was appointed by Justice Gilbert in the Su-
prcme Court of Kings County. The petitioners for
his apnointment were Charles Denison. president
| George Henriques and Joseph Peram. cashiers, all
Stockholders Of the bank. They set forth that the
pad-up capital of the bank was S22o.OOO'
divided into $500 shares OF $50 each. HE
petitioners declared that they owned more
than cne-tenth of those shares that the bank had
many creditors and had recently me- with severe
losses; that it owed depositors 500 900, which It
was unable to paw that the assets of consider
! able amount but doubtful value; that one OF the
heaviest debtors was j. Lloyd Halgh. who
and that the capital was largely impaired
| and il was in danger of insolvency. They also
| stated their belief that the resources OF the bank
were not adequate 20 meet engagemenis, ana IN
order that an coutable division OF the assets might
be secured a receiver was needed.
| SCENES At THE BANK YESTERDAY.
Written notices. on the half-closed iron doors of
the building Yesterday informed the creditors that
|
positors and stockholders was in The room making
| inouiies of the cashier and vice-president
J "a TO the condition Of the bank. Little
| nrinted slips containing the last quar-
terly report were given TO each one with
the verbal assurance that excepting the loans TO
Mr.. Haigh. the condition OF the bank was not ma
terially changed detailed statement 10
the close of business submitted at
the final meeting of the directors on "Wednesday
but this statement the officers refused 10 make pun
st-qlK tn OF q al
| ticulars in regard to the amount Of the loans
| 10 Mr. Haigh, OF concerning the colaterai
seeurity held by the bank. Much Indignation
was expressed by the depostors that deposit had
heep taken at the bank until the closing hOur on
Wednesday, when the real condition OF the lnsiitu-
tion was known to its officers. One person had DE-
posited $500 as late a. $3.50 p. NJ and hc was anx-
ious TO know whether the deposit would be retuined
By the bank. . 49,,
lected at the Clearing House yesterday a tact some
of the depOsiors early discovered and demands ioI
the return of these checks were maze itequenI,y
during the morning. few OF the directors were
| present at the bank and aoont noon q formal
meeting OF the board was begun. No,'ce Oh
| the appointment % receiver was serNeu upou
| the officers of the bank before any business was
done and the directors quietly left the building
One of the stock holders. who visited the bank IN
| onticinotion of a dividend, learned then, for the
first time that the bank had been closed lie de-
cared that at the time of the reduction OF the cap-
| tai stock the cashier had informed him that the
doubtful assets of the bank had been extinguished
| and that the bank was then on sure foundation;
He charged the officers with mlbe representation %
! the banks affairs.
STATEMENT OF THE CASHIER.
Joseph Periam, the cashier, asserted yesterday
that the last quarterly statement, which showed
the condition Of tho bank on the morning of Deem
Der 49, had not been materially changed so far ~
| the assets of the bank were concerned, excepting
the loans TO Mr. Haigh. This statement In detail ]:
| rs follows:
| RESOURCES.
Loan, and diseoupts s734os4 b
o oyr Ds ...... TAG
| 49,
Que "'"i P'''''' ' - ~ 1856 81
p,Dhtrs house - ..,........ ............. $1,000 m
| .-''''