New-York tribune., 1891-04-30
NO RUN ON THE BANK.
THE NINTH NATIONAL Is SOLVENT.
THE DEFAULTIyG PRESIDENT! HOWEVER. HELD
THE INSTITUTIONS REAL ESTATE UNTIL
JUST BEFORE HIS DEATH-wHAT
BECAME OF HIS sTEAHNGsi


National Bank yesterday lie found nothing to maze
him alter his opinion Of the condition OF the BANK
which he expressed in the statement he gave ont ON
Tuesday evening-that, in spite Of the uniortuha'e
defalcation of 100000 by its former president John
T. H, the bank is perfectly solvent, and is entitled
TO and should receive the support Of its depostOS
and OF the pubc.7
This statement and the similar one Of the Clearing
House Committee had reassuring effect on the
public There was no "run7 on the bank Only
few Of the smaller depositors led By timlty 10
withdraw their balances. and tine money paid In more
than covered that pad out business went on IN inc
usual methOdical fashion. There no excitement
either inside or outside the partition which separates
the customer from the officials and employees. Only
one new point OF any Importance reached the reporters
and that was that the eighty acres OF land Which
the bank owns in the Twenty-third ard Twenty
wards and which, Mr.. Hepburn said In his hrst s'a'e
ment had been charged off and had not appeared
in the assets of the bank for many years, but when
is now restored" had stood in some danger OF slipping
ont of the possession OF the bank, with the death of
Mr.. HILL
1T WAS 4 NARROW ESCAPE.
Recauge National banks are not allowed to own
real estate for other than banking purposes, ana when
taken for debt not longer than for five years Mr' mn
held the property as its He decided II over 10
the bank not two months ago, and C. Henry Garden'
who succeeded him in the presidency said yesterday
been in bad fix. The property was originally owIoo
by Thomas A. vyse, who president before Mr'
Hill.
in 1878 the bank was in trouble 1t had met losses
and il was said that Mr. Hill had made inludlclons
loans. one in particular to Vyse d Co.. the senior
member of which firm Thomas a. Nyse Inc
capital was scaled down TO S750000, and the uptown
property came into the possession Of the BANK
actually, but Of Mr.. Hill, apparently. But
Mr. Hepburn said yesterday that this form OF
evasion Of the law was commonly practsed
In New-York, and thought nothing o.
Nevertheless If Mr.. Hill had died insovent with tina;
property in his and the bank having nothing 10
show for its claim it, it would have been awkward
for the bank Mr.. Hill did not make the transfer Of
his own notion but at the solicitation Of Mr. Garden
who was vcepresident, and who became worried about
Mr. Hl's solvency when he found that the president
had only voted COO shares of stock instead Of $50 at
the January election. Mr. Garden asked MN IL TIC
had been selling stock, and he sad that he mad not
But he did not speak the outright truth, because IL
has been learned that he really absolutely owned
only ten shares at the time of his death. having
pledged all the Others There was no fraud in MS
vote Of GOO shares because pledged stock can be voted
But the apprehensions of Mr. Garden revived when he
saw the shadow Of death in the face of the president
who was wasting away with consumption
and though Mr. Hill querulousy as
slred Mr. Garden that he was solvent
the transfer was made for the consideration OF Sl'
HILL WAS PRACTICALLY THE BANK
Mr. Hepburn assented when a Tribune reporter sue
cested that to all intents and purposes Mr. lli had
becn the hank Hill was a with maserful VIII
and Of tyrannlcal ways His word was law. HIS
actions were unquestioned. He inspired MS feIo"
officers and his subordinates with reverence ana awe
Mr.. Garden calls him "a clever man; wonderful
man, lie was the autOcrat OF the Ninth Natohd
Bank; and this happily dispes all doubts ana sus
nu1fo Of
He would not conde in anybody The Car OF Russia
would as soon take moujl into the secrets OF his
administration as President Hill would subord dnate
Mr. Hepburn said Yesterday: "My statement last
night covered everything unless yon went into detail
have positive instructions from the Department ho'
to give out any information about anything except 10
the Controller himself The condition Of the bank
was fairly stated in the papers this morning. Tho
hank s perfectIy solvent. There is not any question
about that 1t has got considerable real estate more
than It wants But probably it will dispose OF its
uptown property pretty soon."
ABOUT pRoNMISs SsoRY NOTES.
apo Won look for promissory notes in connection
with loans" Mr.. Hepburn was asked.
always"
| "And If you don't find them7'
awe criticse."
elias the Ninth National Bank ever been unaer
| crlticism?"
| uvos Mr. HOl recognized the force OF the
criticism and said it would be attended TO. lie said
T. WAS matter OF carelessness on the part Oh oiu
customers II is very bad banking not TO plhe
note"
But Mr. Hepburn did not attach much importance
70 tho absence of notes in connection with Ils leans
for he said phosophically that man who built up
= repntation for probity throughout many years ana
then set about deceiving people, would 90 IL any
how To have provided notes would have beeh
utte more embarrassing for Hill, but he would nave
| overcome the difficulty. Mr. Hill always looked out
| for one thinc-he kindly let the bank nave al 'l'o
interest on the loans. while he swndled IL out Vi uo
s4OO 600 principal. Mr. Hepburn added tnat inc paA
ho 81 COO 600 in cash yesterday morning ana that
nm no tound held $40 shares Of stock In the Dahk
and 8 600 shares Of OutoftOwn electric hsht so,
The s4oo 900 had been already charged of by tie
hank. and with its valuable building ana It's Iiu'
could bring It's surplus up to S52ooOo' INC Hsuio az
which IL stood before the discovery OF the Dig IoS'
A SHARP LOOKOUT IMPOSSIBLE.
NJ Gardner president of the bank, was asked by the
| reporter why the directors dld not Keep S'"iP'
| lockout on Mr.. HIPS transactions ~
UIt ,as iunossible for the directors 70 do anything
| - ,be sort said Mr. Garden. I'VE met every week
Then Mr. Hin would read us of list Oh tIahsieI''
loans and other business No one conid expect tNe
directors to look into every one OF them because '
would have had to stay there all the week 10 uo IT,
A. nm read of the list Of loans and transfers. IL any
| hodv objected TO any name the name would be aus
| crssed But it was seldom that anybody ooecteu I'd
a name If the president said 1t was all rehO. "oS'
90 tbe loans which lost the 100000 were ca loans
to brokers for which Hill received lao notes. Iheh ne
| took ont the bonds and sold them
as it a proper thing to make loans without FeceN-
| ing notes p ,,,,,,-... -uou., =,
on. vou have got to do it. Millions worth OF
loans are made every day without notes some ol
the call loans were left in the bank hve or SIX years
! "Wbat was Mr. HilIs salary y
aNv impression is It $4,000"
av-bot wos the particular reason Of the transfer OF
,,at nronerty by Mr. Hill two months agoi'
Because he was going to dle.'
at was not because the bank directors u'scoVeicu
| that he was peculatnGi'
! Ion. no. supposing he had died without deeding
| .Lat nrnnnrty we shonld have had devll OF IOO,