New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-19
A BANKS AFFAIRS IN COURT.
STRIFE AMONG MOUNT VERNON STOCK.
HOLDERS

SOME OF THEM MAKE CHARGES AGAINST THEM
PRESIDENT-A RECEIVER APPLIED FOR.
Some Of the holders OF stock of the Bank Of
Mount Vernon. Mount Vernon. N. Y, are dis
satisfied with the way the officers have been con.
Quoting the banks affairs and the courts have
been asked to appoint a receiver. James L.
Reynolds, who owns a meat and produce market
in Fourth-ave Mount Vernon, swears to the COM
plant, and in it he alleges that the bank officers
are using the concerns surplus for private pur-
poses He also the directors of using
their power to injure him by preventing him from
transferring his stocks. II the affairs of the bank
are conducted IN the way they have been for
some time, he declares, the bank will he
insolvent. For these reasons and many others, Mr.
Reynolds says that he deems it to the best interests
Of all the stockholders to have the banks affairs
taken out of the hands of its present officers.
The order to show why this should not be
done granted by Justice Dyl<man at White
Plains few days ago. and yesterday morning
was served upon Gouyerneur Rogers, the president
of the bank at Mount Vernon. The court pro-
ccedinss will come up before Judge Dykman next
Saturday
James L. Reynolds, who declares that he owns
one-ffth Of the stock is the only stockholder who
appears in the legal proceedings but it is said
that there others who assisting him in
pushing his case against the hank officers. Mr..
Reynolds was found at his Mount Vernon store
yesterday, and he told a reporter for The Tribune
that he was confident that he could prove to the
satisfaction Of any judge that the banks affairs
were not being properly handled, and that the
| concern ought to be placed in the hands of .
receiver
/ own one-ffth of the stock of the bank" said
Mr. de I do
the value of that stock. But the officers, to
crafty personal spite are endeavorng to freeze
me out as they have of the other stock
holders. John Berry, the drygoods man, was ono
of the holders Of stock who was frozen out He
did not own enough stock to protest against the
| management, or TO make it of sufficient interest
to HIM to protest in the courts, so he sold out
at a loss. Others have been forced to do the
same thing. But come from climate where
people don't freeze easily, and propose to
have my rights. and also to have the affairs of
the Bank Of Mount Vernon conducted as they
should be. / used TO be director of the bank
but did not like the way the directors treated
the stockholders, l did not 60 to the directors
meetings for months / know l have a good
case. or l should not take the trouble to appeal
| to the courts"
The getting out Of the papers asking for the
| appointment of receiver not the first legal
proceeding which was begun by Mr. Reynolds.
| Some time ago he got out mandamus at White
Plains for the purpose of looking over the books
of the bank lie examined the records closely, Sc.
| cured all the names of the stockholders and it
| Is said found sufficient evidence TO warrant a
| further investigation. He did not at once take
steps to have receiver appointed, however, and
the papers were not Immediately served in the
case for the reason the bank people say, that
| there eO aho,,< H.
Mount Vernon election that it was thought ad-
visable not to press the until after election.
The story of the officers of the bank differs
| entirely from the told by Mr. Reynolds
GOuverneur Rogers, the president, and Jesse Lantz
the cashier, declare that the legal proceedings are
nothing more than prosecutions on the part Of
q dissatisfied stockholder and an ex-director who.
when he was member of the board, refused to
attend the meetings and do his share Of the
work.
We have nothing to conceal" said Mr. Rogers,
| and the bank is more insolvent than il ever
was. In fact, It is in better condition than ever
| before We deny that the bank officials have
| done anything illegal or anything that was not
] for the best interest of the stockholders Mr..
Reynolds objects TO the manner in which Ger.
tifcatcs of stock issued. They are issued in
proper form, and are for the benefit of many, and
not few. lie also claims that the
bank had no right TO use the sur
plus. The surplus was used to put
up the bank building and certainly no better in
vestment could have been made. 1t relieved US
of paying rent, and for the best interests
OF all concerned We sought legal advice at AL
bany before using the money to put up the build
| ing. and Willis :. Paine, when he was bank ex.
aminer of the State. advised us to do what We
did. II was with the full consent Of the directory
| that the money used. Mr.. Reynolds q
director of the bank UP to several years ago. but
| because he refused to attend the meetings of the
| board his successor elected. He has demon
strated antagonistic feeling ever since. and is
| trying to do us much harm as possible. There
are others besides Mr.. Reynolds. too. who are en-.
deavoring to work us injury. and who not
interested in the bank. but the affairs of the bank
are all right. and know the result Of this
fight will prove satisfactory to us"
| j. s. Creed, a Deputy State Bank Examiner.
was at Mount Vernon last Monday. and on Tues
day he thoroughly examined the hanks accounts.
Mr. Lasntz the cashier. says that Mr.. Creed. after
his investigation found that the following state
ment correct:
Before the commencement Of business Monday morning.
May 10. 1897. ..
" l,35O 70
Ns.icnal PARK Bank. y. Y............. q So $40 20 20
Cash hand --'.--..-- pS4 SX
S s; %S;'s,ss s ,5pSs GGnt sSs.t sss:S 81
Espensg EaLSS,c and nxtaies 1900 Of
a%h ,snssN q Bsss g9ss sesS
sssi.ai54 40
c.n,,,I ............ SIS 900 %
pnat and los,..................... s27,463 5l
Rents tas is 90 ~