The evening world., 1891-04-29
OF the institutio.

THE LATE PRESIDENT JOHN 7. HILL
The result, while showing that the hanks
surplus Of $3.50, 400, which appears In it's last
weekly statement, has been completed, wiped
out ara its capital impaired to the extent OF
SSJ, 600, il that the bank has been declared,
RON ~ the Examiner and the Clearing House
Committee, to ne in a per !ec,ly solvent coudi-
non. and that It can continue its business
without any interruption.
TGis remarkable sequel to a loss which might
have seriously crippled the strong est financial
institution In the city and possibly have closed
It's doors, ia dne to the fact that the
Nnh National Bank has Tor the last
fifteen years held a large amount OF real estate
in the Annexed District, which was turned
over 10 it hy President HIPS predecessor.
Thomas L. vSse, and which has never ap-
feared in the banks statements as an asset.
The tract OF land includes elgnty-nve acres
III 'he Twenty-third and Twenty y-fourtn wards,
and 1t tue time It came into the possession OF
the bank was valued at $500, COO. II Is now
worth nearly 81. .OOO, 600, and when 1t has been
d,snoSed Of by the directors 1t will not only
rake up the deficiency caused by the embez-
clement OF the late President. but will act ually
give the bank largely Increased surplus,
lrGhahIy from $500, 600 to $500, 900.
orFN AS USUAL FOR BUSINESS TODAY.
Ial, IL the situation this morning, and when
the bank opened Tor business this morning at
IT. usual hour there wa1 no indication OF any
dis9"s lt,on to create IA run on the bank.
I'VE are prepared to pay any one who
comes. id President G. Henry Gordon to an
LvESiNG WORLD reporter, 'for We have
81, GOO, 900 iu cash in our vault; besides, the
cd III pf TO
~ do not anticipate any run upon the bank,
aud, as matter Of fact, have seen several Of
our largest deposi'ors this morning. VINO
assured me that they are going to increase
in,ir accounts instead Of Withdrawing them." "
The investigation of the banks affairs has
shown some remarkable facts in connection
VITA the management of the late PRESIDENT
Nm.
DIRECTIONS WHO DID NOT DIRECT.
In the rrst pace, it appears that Mr. Hin
was virtually the bank, and the directors had
very little to say with regard to its manage
meat.
He PROBABLY had more complete control OF
afa'rs tnan is vested in any other nank pre- 81
dcnt in the city, ard its directors, placing the
most Imrrcit and childish confidence in him,
tooK his word for everything and apparently
case not the slightest attention TO what was
gong on.
HILLS METHOD OF EMBEzzLISG.
ii $ mtlncd OF apIrppriating tie hanks funds
10 Gi' own use was TO create nrfitious i,an',
for Which he wouli deposit collateral Securiii p
ths, he hClI In trust for various estates and for
riends wGo deposited their bonds aud stocks
with HIM Tor safe keeping.
II known that he held sucn securities az
greg ting IN value nearly $500, OOo, ana when-
ever an cffirial examination OF tie bank was
made he would iuggle with THESE securities IN
such wIy US to make 1t appear that all these
frtcious loans were fully secured
ranE Examiner Hepburn. who made his last
examination Of the hank about ten months ago.
hald this morning that he carefully went over
al The securities in The vaults at that time ana
found everything perfectly regular. so far as
appearances went, and Every loan amrly Sc
cured by the best kind of collateral.
Ii was in this manner that the late President
managed 20 keep his detalcation concealed
AMI the directors and other oricers of the
lanE, who haI more angle means to
discover The irregularities, seem never 10 have
taken the trouble 10 investigate the bank on
lheir own account.
HILL BULLDoZED TIE BANK OFFICERS.
President Garden, who was Director In the
bank before he was elected to oil Hilrs place.
said This morning that Mr.. Hill made great
many rules re, trciinR the powers or the Board
and that he frequently forbade the Directors
10 needle with accounts.
He had mysterious tin box in the hanh
vaults which was supposed TO I've chocI ruIl o.
'ne most valuable securities, including no: only
those held IN trust lor estates OF which nc wa
executor, but big block OF his own wealth.