New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-04-12
RESERVATIONS CAUSE 4 RUN ON A BAyK
TROUBLE IN LONG ISLAND CITY SAVINGS I,
| srITUTION-IT is SOLVENT

srTCTION-IT is SOLVENT
When IL became known yesterday that John AnnIe
ton the first vice president, and John H. Livingston
trustee had resigned their places in the Long Island
City savings Bank, Of Long Island City, there wa,
something Of the bank, and before its Doors
were closed at the usual time, p m, about $4,000
had been drawn out. This is A considerable sum in
an institution in which frequently not more than a
few hundred dollars taken ont in day. The
resignstions handed in at the meeting Of the
trustees Tuesday but that fact did not become pub
lcly known until yesterday. The cause of the action
Of the two the failure Of the Board OF
Trustees to pass resolution to have the affairs Of
the bank examined by the officers and a special com.
mttec. The two men named and sylvester Gray
the president. and H. VI. Thomas. the second vice.
president, favored the resolution, but the cashier,
j. Harvey smedley, and three Others wished the
regular Examining Committee to make the investga-
ton. SO there was a deadlock
Mr.. Appetons desire for an examination Of tho
books. he said due to the fact that Mr.. smedey
had charged up as profits about 5000 which Mr.
smedley said the difference between the present
market value Of the securities Of the bank and their
cost This, Mr.. Appleton said, was illegal. lie was
also aggrieved because the Examining Committee had
taken Mr.. smedley's word for the amount Of cash on
hand, instead of counting it,
Mr. Smedey said yesterday to a Tribune reporter
that he had not rcckoned the increase in the value
of the securities part of the profits but had merely
placed on his report the market, well the
par value Of the stocks and bonds in accordance with
the rules Of the state Banking Department lie said
that IL the Examining Committee had not actually
counted his cash. il not his fault because they
could have done so had they wished. Mr.. smcdley
thought that the real cause of Mr.. Appleton's dis
satisfaction was a personal one. The Board recently
granted increase Of salary 10 II 500 year, BY
a unanimous vote said Mr.. >medley, but i'm
mediatey aftcrward Mr.. Appleton expressed his regret
at this. II he did not wish me to place the valuation
upon the securities, and had said So would gladly
have turned the Job 10 him or 10 the Examining
Committee That committee went over my ydlua-
tons and reduced them from Sl5e.l.5 TO S15023t,
but this after my quarterly report, TO the correct
ness Of which they made affidavit, lad been sent 10
Albany
The bank was organized in 1876 and the deposits
last night amounted to about 1887 900, and the surplus
was over $4,000 The officials are prepared for
run to-day, and rather expect one. Mr.. Appleton
saws that the bank j. amply able to meet its obga-
tons but his withdrawal from il IS viewed by some
depositors a. an indication that everything not right.
The trustees met last night and made formal state
nlent Of the fact, In connection with Mr.. Appeton's
resignation which said that the securities and funds
OF the bank intact and every depositors money
absolutely safe Another first vice president VIII b
elected probably at the next monthly meeting