New-York tribune., 1885-03-20
MARINE BANK DIRECTORS.
WHAT THEY KNEW ABOUT THE LOANS.
suREE OF THEM ExAMINED-GRANT AND WARNS
TWO ACCOUNTS.

suREE OF THEM EXAMINED-GRANr AND "niH'
TWO ACCOUNTS.
The variety caused by more frequent cnange ot %
witnesses led to larger attendance AT tne Tns ot
lanes ID Fish Yesterday in the United states Crcut
Conrt than on the few days proceeding DenJanli. !.
Fish the paying teller of the bank and pIo.neh ~
the defendant was on the witness S sa .S
tion, begun on the previous day. ~ hon3 H. hao
a abookkeeper Of the bank, testihed aoouG o"oh n,
ca,lou .no ,marv of the leans and of the balances
az the accounts. 1t was used by the uiecCoLa lo s
reference but did not cIh'a accoTnt SO that the
witness sand, director consulting tne poch WI M
not know of the .arge everdraft which existed 10
fhe " apeclalr account for maDy successive uay
Carsen Sicrck, who told Judge Benedlct tnat
he was q sugarman" bat who was s,ouU %
aud fond, testified that he was a director of
of the Marine Bank. He was Chairman naa Oh o.,
committee of directors who maze an
examination of the condition OF the PAM on M ApIa
"a and 25, 1884. They examined the loan enVe,
iones INIT did not find any without securities IN
them The directors met on IneSdays a1u f. iiS &c S
of each week. The president OF the seeIeIy @ VI
hoard would report as to loans that had Deen Hane
since the last meeting. The witness dd not Know
of loans made without security lie never 5A9om Jew
tin the bank failed that Grant * Ward had Two
srconnis src general" and Especial" The over
drafts IN the accounts OF Grant d. ward were not
reported to the directors. lie dld not KNOW W. tnai
MIR Fish belonged TO the firm OF Graut N NMu
when lie was indorsing their notes. On crOSs-eX-
animation the witness said that he thought u
proper for bank to 10 lean money on nRIS Edcr With
SSbicb be was connected, secured loans in thai way
aud a loan of S25, 600 had at one time been maue
Ia the firm by the Marine Bank on notes.
Henry F. Dabol, bookkeeper teslineu tnaI ma 5E ne
had made up a report that was signed on Aprll 20
1884 by Mr. Fish and other directors lie naoe e
mn the statement of loans and coliaterals from wha
Wos known as the loan-book, which had been Kept
for only year or two in the bank. Messrs Clarke
and Smith made vigorous attempts 10 Keep out ol
evidence the report and loan book but these were
admitted, and Distrct-Atorney Root read eAtIaSes
from the report. The amount OF loans ana dls-
counts was placed at $202,235 rs.
lanes w. rIwell a director, was also Ignorant
up 10 the time of the failure that Grant " ward
had two accounts with tho bank that ioans Mere
made without collateral security. or that theIo
were contract loans to Grant & Ward lie
never heard until this trial that there was any
arrangement by which tho borrowers could keep
I'm trust the collateral which they should have de-
posted to secure the payment OF loans. MessIs
Sierck, Barrow, Elwell, Ward, Scovil ana spencer
were a committee to examine the bank on April
"a They went out 10 lunch and some dld not re-
turn, thinking that the examination was ao-
journed to the next day, but Mr. ward ana TWO ' or
three others returned in the afternoon and com
pleted the examination of the loans. ODJectlon
was at one time made to loan to General Grant
on Belmont Coal Company stock. which the VIII
mesa knew was not worth the amount of the loan,
but the witness did not know that loans Were
afterward made on General Grants unsecured
notes The witness did not know that spencer
Mallory andArmstrong, III whose names large loans
were made were III the employ OF Grant & WaIu
Henry Barrow, another director was equally
withouf knowledge of the contract" ioaus, OF
loans without security, aud OF Grant az Wards ;
double account He examined the bank on April
2f without finding the empty loan envelopes. Ar.
Root asked:
was Mr. Ward active in the examinatoni
The witness-Very active. He was quicker than the
rest of us in handling the securities.
Mr. Root-Dd you know that Mcssrs Spencer; Mallory
and Armstrong were employed by Grant & Ward ana
that loans them charged TO the hrns accouhtf
The witness-N0. sir.
Mr. RoOt-SO that II Mr. Ward, sitting at the other END
of the table, had called out loan TO George b. Spencer
or Mallory or Armstrong and reported the securities to
be all right You would not have known he was examln
ing his own lOansi
The witness-NO, sir.
Mr. Barrow shook his head vigorously and said
"Neyer" emphatically when asked by Judge bene-
dict whether Mr. Fish had reported series OF over
drafts In Grant & Wards account.
The prosecution will continue to offer evidence
to-day.