New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-08-10
THE NEWARK BANK TROUBLES.
STOCKHOLDERS DISCUSSING TIE SITUATION OF A

STOCKHOLDERS DISCUSSING TIE SITUATION OF Az
FAIRS AND PLANNING LEGAL REDRESS
meeting of the stockholders of the First Ma
tiona Bank of Newark was held yestsrua a al,sd
Several women were present. IL was SHOWN 'nat
the stockholders had little or no knowledge OF the
affairs of the bank except from articles published
in the newspapers NJ different times Inc purpose
of the meeting was to seek some way Dy when the
assessment of 100 per cent npon ave rs
16 could he DELAYED until the value OF assets couIu
be closely determined, and also what further steps
are practicable for the relief OF the stockholders;
Dr. butcher was called to the char. and he invited
discussion. Perry Baldwin called attention to the
report made Ivy Mr.. LangwOrthy, the bank examiner,
who examined the bank previous to the last dlvl-
dcnd The report. he said, made the affairs OF the
bank to be all right. The Stockholders, had rened
upon this and previous examiners reports as entlrey
trustworthy How could the stockholders Know
whether a proper reserve held except from
the reports of the examiners! The bank was
reported TO lie all right: but il failed and then the
Stockholders first discovered that there was nothing
left for them. stakeholder said that he haa no
doubt that If contest was made the receiver
would make test case, which would be better IMAM
to 20 TO the expense Of separate suits The receiver
was equally anxious to economic. lie suggested
the adoption of a resolution To that effect a reso-
luton was adopted declaring that the bank exam
iner Mr.. Langwurihy who made the examination
OF the FIRST National Bank previous 10 Tue ueclar-
inr of The last dividend, and who rendered state
ment that the bank was IN good condition, ana
thereby caused great distress Ia hose VINO hoih
stock, he called upon to explain why Such sla,e-
meutS maze Nv lllI0, ana lDdi " topN VI
resolution should be forwarded to the Controller oil
the Currency at Washington. .
A resolution was also adopted to the effect that 1t
was the sense of the meeting that stockholders
should resist the assessment, and that committee
should be appointed 10 confer VITA the receiver ana
Controller before taking any action to resist the
assessment. IL was asked upon what grounds
contest could be made, and il WAS said IN reply that
the bank held assets whose value had not been as
ccrtainrd 1t was proper that this yalne should he
fonnd before the stockholders were called upon TO
pay. Ii was remarked that the receiver was absent
on vacation, and wonld not return until August 10
A resolution was therefore adopted insluctlng the
committee to ask the receiver for more time III max
ing the assessment The secretary read he section
of law relating to the responsibility of directors,
and Stockholders said that II was important TO lnd
how the losses of the bank conid be recovered from
the directors, in view of the taclS that these
directors had violated the law. Perry baldwin
referred TO the DOyell embeIZement OF SlOJ,OOo,
and said that if the endorsement was covered up
on the books it fraud. Only three dlrect0IS
knew of it., he SAID, and they went TO Mr. taylor,
the counsel of the bank, to confer privately on
the matter. If this was true they should be held
responsible
The chairman remarked that ali this had been
published a fact, bat John w. Taylor, thc coun-
sci, had said that the transaction was outlaWed,
and 10 prosecution could be o'ougnt
against these directors lie deemed u very
extraordinary legal advice, he sald that such
an emb,zzcment should be covered up.
II the matter had been revealed at the time toe
bank would have been in different CONDITION TO-
day, and this the stockholders know to Their sor-
Perry Baldwin said that if IT was true that John
w FAVOR gave such advice to the three directors
and then said the matter was outlawed. he did not
deserve any consideration. He suggested that u
committee he appointed TO examine the books
stakeholder said that the books we're III possession
of the receiver, who would not allow an eNamina-
lion of them. and added that even II the directors
were not criminay liable for their action III the
DoVeil matter civil suits could be brought against
them to recover Tho committee appointed was III
structed TO examine the books. and the meeting ad-
jcurned subject to Il future call