New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-08
UNKNOWN TO DIRECTORS.
IRREGULAR TRANSACTIONS IN THE ASBURY
PARK BANK.
LARGE AMOUNTS DRAWN IT is SAID, BY TH4
PREsIDENT-THE DIFFICULTY NET IN TINE
TO LEAVE THE BANK SOLvENT-RELA.
TIONS OF THE BANK TO PELL.
WALLACK g. CO.
rDr TELEGRAPH TO THE TRIBUSEJ

Asbury Park, March For two weeks all sorts
of rumors have been flying around town concern
ing the soundness of the Asbury Park National
Bank. Little if any attention was paid TO these
rumOrs at the time. But when il became known
chat Bank Examiner Robert 4. James was in
town investigating the affairs of the institution,
people began to suspect that all was not az n
should be, and anXiously looked for the report
of the examiner. 1t leaked out that the president
of the. bank, George W. Byram, had borrowed
from the bank, without the knowledge or authoriQ
of the directors large sums of money, far In excea
of the sum allowed to any one individual
In November. 1889, Ncw-York speculatou
began operations with the Asbury Park
National Bank, through the account Of Arthur
l.. Meyer who is stakeholder in the bank and
who keeps a large running account in this instltu-
ton These operations were for large sums OF
money. and reached high as $4,000 daily.
These checks were in many cases sent by New
York banks to other banks in Asbury Park for
collection. To meet these checks. the necessary
amount was invariably sent to the bank by ex'
press from New-York The banks of Asbury Park
make their exchanges each day in cash. In this
way il happened that the checks from Simmons
and others were often presented at the Asbury
Park National Bank before the money was re-
ceyed from New-York, owing to the delay OF
the express company. This caused a large daily
Indebtedness of the bank TO the other banks.
and occurred frequently that the bank de-
clined to transact any more of this kind Of
business. The transactions, however, the bank
officers say, were entirely legitimate.
IF it were intended to make use Of the bank
in any 'kiting' business said f. H. Murphy.
counsel for the bank, the scheme was not car
ricd out because of the banks refusal to allow
further transactions of that nature
The report that Philip l.. Meyer had dealings
with the bank is untrue. Arthur l.. Meyer has
had dealings with it through Long Branch and
other neighborng property owned by his father.
Scgmund T. Meyer.
George W. Byram, the president Of the bank.
who was away from home today arrived here
late tonight. lie had not learned OF the sensa-
rional statements of the affairs of the bank until
after his return. lie has been away since Monday
of last week on business in no way connected with
the bank He was emphatic in his statement OF
this fact. because it has been hinted that there
had been curiosity and even suspicion as 10 his
movements
From the statements Of Mr. Byram and Mr..
Murphy it appears that the law restricting the
loan OF money by bank 10 o per cent Of its
capital stock has been evaded by Mr. Byram by
50 arraneing the loans that they were made in
the names of other persons. through accommoda-
tion paper for use in Mr. Byrams business
transactions 1t is further claimed that arrange
ment, had been made for the taking up OF
large portion Of the notes given, but that there
was a delay of twenty four hours in the arrival
of funds. just at that time Bank Examincr
James. who was sent down 10 investigate the
connection of the bank with the transactions OF
Pell and Simmons arrived and discovered the
condition OF the books. The notes were at once
secured, partly by cash payments and partly by
first MORTGAGES on real estate
Mr. James expressed himself as perfectly SAT-
isticd but said that Mr. Byram should never
have taken the loans. The amount of thesa
loans has been reported TO be at about S56,OOO
This. Mr. Byram says, is an eAaggeration. but he
did not disclose the amount. Mr.. Murphy said
that he thought Mr. Byram could be credited
with the amount of $4,000. The loans were
unauthorized by the board of directors. Through
the strenuous efforts of Mr. Byram, however. In
raising the amount of money, the business at tho
bank has been going on usual. and the con-
cern is solvent On Wednesday next a meeting
of the stockholders will be held and a reorganiza-
ton effected.
The bank was organized about two years ago
with n captal stock of 100000. Mr.. Byram Is
lis president stephen T. Willets. of New York.
>i,c-prcsioc Dent and John Rockefeller, Harold II.
Willard and William T. Byram, of this place, tie
directors