New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-22

fact, the Superintendent, Immediately called en-
! the members of the Clearing House commit
| tee and asked them for their advice. Mir. Pres
tons request was accompanied b. statement OF
the banks condition. Mr.. Happen. the chair
man Of the committee and William a. Nash
president Of the Corn FIX 'hange Bank. after look
ing over Mr.. Prcston's statement. told MIN that
if they had made an examination 81 any Ma
tonal bank. or any bank a member "f the
Clearing House Association, and found such a
state of affairs, they would recommend that the
bank suspend Nj Happen thought that de-
positors would be paid in full.
NG. rEE>ToN'S EXPLANATION.
It was late in the afternoon when Superinten-
dent Preston of the state Banking Department
received reporters. Mr. Preston said that he ex-
pccted that the Attorney General would arrive
here to-day. when some definite action would
be taken regarding the future Of the St Nicho-
las Bank Il think Will recommend dissclu-
ton" Mr. Preston said. Il don't see any move
ment on the part IF the officers To max" up
! the impairment in capital. and the only recourse
seems To be the appointment oi Il receiver II Is
impossible for me yet To talk figures. because
Of the difficulty of making estimates IA I" the
value Of certain Of the assets. owing 10 the
difference I'm these estimates / can't say how
much the impairment Of capital Will amount To-
My examination began several days ago. ana
the physical work completed yesterday. but
there was much trouble in getting quotations
and asccrtaining the character % some OF the
securities"
Mr.. Preston explained that when banks
capital Is found to bc impaired. II the Superin-
tendcnt Of Banking thinks that II Is not
unsafe for the institution TO continue business
and ne receives assurances that IN" iinpairnrh,
will bc made good. he may give tn officers ana
directors sixty days in which to do So. II ne
considers il unsafe 10 permit the bank 10 60
along under th,. circumstances he has TN" power
T. apply for immediate dissolution. h'r. Preston
not saying SO directly. int!matrd that his action
I'm the case 81 the 81. Nicholas Bank was taken
in the regular course Of procedure the last
regular examination Of the -. nj "hoas Bank
was made in February. when. Mr.. Preston says.
he found its condition sound. Mr. Preston. when
asked how much paper Of the American Casualty
Company the bank held replied that he could
not say. Mr.. Graves, president 81 IN" baik,
who was in the room. here intervencd u fly that
MED that Reccher Schcnk & CO.. who We're
agents for this concern. were debtors 81 IN"
bank
THEY WOULD HAVE MADE rr THE DEFICIT
President Graves of the St Nicholas Bank
takes issue sharply with the criticism II Mr..
Preston upon ihe condition Of the banks AZ
fairs This is an outrage" lie said with strong
emotion. the whole trouble could have been
avoided II the usual course 81 giving ski y-days
time to meet the requirements ~ IN" Hdhklhs
Department had been followed was umu-
founded when ! found my bank closed The
Superintendent IL Banking possesses arbitrary
powers and he has exercised them arbitrarily.
WHY. this morning our directors could hay"
made up any deficiency In capital IN iit"rn
minutes II w. had been allowed IT, opportunity
with the crcdi, Of the bank destroy d 10y the
Supcrnicudcnts action"
Mr. Graves declared that The bank had
e,,r,lrs ~ 500 nlp lie asserted that the i'm
nairmcnt ~ capital figured out hy the state
Banking Department was based on unjust anu
ridiculous estimates OF values Of assets. nc
securities distrusted 10y the Superintendent. Mt
Graves said. were good SOUND srcui 4t'-' .N''i
If they were not regularly dealt Ia AT ia, SUCK
ected at once" Mr.. Graves said. ~ We had not
been closed up. This morning an Offer was made
to pay Of loan ~ $6GOpp on brooklyn ga
stock but II course We could not receive III"
money That loan had been marked N by The
bank examiners aa an unavailable asset. There
are numerous other instances. IN" closing ~
the bank WAS an outrage. believe politics IL
at the bottom Of H. and suppose 1t IL intended
10 help say. tn. Madison square Bank from the
just claim We have against II.
THE EXCHANGES NOT CLEARED.
Tho exchanges az the 50. Nicholas Bank were
not cleared yesterday morning. They amounted
To- about $4,000. bat by order 81 the Clearing
House Committee All the checks 81 presented We're
returned - H. Tho checks on The -. Nicholas
Rank presented bv other banks were returned To-
Tho hanks presenting them. Such checks will bc
sent back To- the customers who deposited ih'n
The amount II these checks could not Dee learned
at the Clearing House. The oihceis al me -,
Nicholas Bank however. said that they expected
the bank 10 tc a creditor at the Clearing House
II was contendod 10y some II the depOsitors that
H,,o, ,esferIav was most unjust 1t was asserted
that If the bank had been closed after n" OPEN
ing hour. its exchanges would nave b''h c'e'''u'
LAST STATEMENT or TIE BANK.
The statement of the 81. Nicholas Bank to tn
Clearing House on Saturday showed that It's
average cash reserve during the week was -'b
,er cent Its average deposits wer" said 10 be
e. NJ, ooo loans. si75o 800: specie. SiSeoo: legal
lenders 81. 900 It's deposits on "Wednesday were
said 20 be- about sl'''"'''. - - ,h, tho
II was rumcrcd YESTERDAY afternoon mat me
horl had loaned $4,000 to President Graves on
inadeountc security. The report could not DE
confirmed. one OF the best kn""h b"nHrIS ~
the city. in speaking 81 me ruim"r, s''S en- oon
from his bank On poor security. but That won
affect the dcpositors IN the least, for MI. Graves
is worth AT least $l.o0D0OO"
The directors besides President Graves
Cashier Gardner and Vice president i. {. La
throp are Joseph II. Parsons. John - Jarrett
George i. Sheldon, Henry r.. Hitch ana VII.
lam H. Aiken Mr.. Graves became president
in 1873 Aftcrwarl hc went t. Europe. but In 1884
ne again assumed the presidency. Mr.. LathroI
the vicc-prcsidcnt Is a member OF the hrin "i
Lathrop Smith q ONphant. cotton brokers. MT
porenue * a wealthy manufacture at toho"s.
X Y IL. IS also interested I'm prominent in
smrancc company Of This city. His fortune IS
the ST Nicholas Bank was chartered in 1852
as a state institution, with a capital Of Hl"o-
COO It became Il National bank In 1862 ana
again a state bank "a 1852. Its capital was re-
ducod 10 $50 O00 and then 10 100000. II was
first at New and wall SITS. and later In the
EnuItabe Huilding. 1t moved into Its present
Office less than two years ago. Several years ago
the bank lost heavily on account Of the failure
Of GroVcsiccn q Pell
The brokers In Wall street congra tulatcd
themselves upon the existence Of their Clearing
House for stock tranactiOns. Under the Ola
system there would have been 900 In checks
on that bank to cover Wednesdays operations
I'm the market which would have been thrown
back on the brokers by the refusal Of the New
York Clearing House Of Banks to clear the GER
ti0cd checks OF the 81. Nicholas Bank yesterday
Morning AS the case was under the Stock EX-
change Clearing House only $4,000 in checks Will
represent the loss to the brokers'
\ DETAILED REPORT
The following Is copy Of the banks sworn
published statement Of It's condition on No
vember IS last: