New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-31
w. N. DYKMAN, RECEIVER.
POOR SHOWING BY THE COMMERCIAL BANK
OF BROOKLYN.
A DEFICIENCY OF OVER NEUTRALITY-SUSPICIOUS. TO
HOLD A MEETISG-MoNEY SUNK IN WORTH

A DEFICIENCY OF OVER NEUTRALITY-SUSPICIOUS. TO
HOLD A MEETISG-MoNEY SUNK IN WORTH
LESS NOTES AND MINING Properties.
r,s anno,ntment OF a receiver for the suspended
Commercial Bank OF Brooklyn, as indica'eu u,
Yesterdays Tribune was maze Dy Juuse 90
AZ pougbkeepsie yesterday William n DyKhan,
a. IN. law firm Of Bergen & Dykman, was nained
unon the application of Deputy-Attorney uehe'a,
Hogan He was placed under SOoW" DohuS' az
the Long Island Loan and trust Coiip",'' %
the Hamilton Trust Company were maue pa"
deposit David A. Barnett, counsel LOT @e'n
Keeney. the president of the bank mace d - ,ho
ment In regard 10 the relations OF the idt'ei " ~
bank He said that Mr.. keeney succeeueu ,.,
dent Hudson in 1888. and found the pa" W.
sos 900 capital and sl6s,eA surplus AT the pre-
ent time the capital is the same, and the surplus
according to the books, S96,5OI In the H'e 80.
tbere had been written off to profit ana loss 49,
RS a5 of bad debts which had accrued uhuei ~.
former management. The losses from pau 49,,
under the present management amouh'eu ,n
than $4,000 Under Mr. Hudson. the CASHIER 'o',' ,
A. Vail ran the business of the bank. lie ',d
Mr. Keenev in regard to the accounts, that their
condition was fully known to Mr.. Huuso'i anu
that they all right
In 1889 Mr.. Keeney found that the accounts u
Mr. Grenng and Mr. Hassell, and the n'iin"s
company which the latter was ava
In. had been heavily overdrawn' anu
their notes had been discounted 10 an
unwarranted degree. This had been done oeiore
Mr. Keeney made president lie sent i0
Mr. Grening, who gave bonds and mor's"se
which fully secured his overdrafts, ana II was
probable that the full amount wouid De i'"u.
good from them The bank took conVeyahceS %
the mining properties of Mr.. Hassell IN Coioiauo'
and his other property. Three OF the Damn "'ioO
tors Messrs Keeney. Gill and SnedeKer' au'a"0N
100000 to make the mining properties pa''
and this money was spent before they came TO the
,tAriCn wa
money was their own, and they MADE no cam,
AGAINST the bank for it. When Mr.. Keeney found
out about the overdrafts he thought the oapi'a' Vi
the bank too much impaired to go on Win o"S
ness and called meeting OF the directors anu
told them that unless the capital was made good
tho hank must close The eight directors eacn
gave his note for $4,000, and the bank still hoos
them This action was approved by the STATE
Superintendent of Banking.
Tn 70 a wear ago the bank did well. and the
course adopted was justified but after September
1902 there were heavy Withdrawals and fully one
third of the deposits were taken out the result
uas that IN the recent financial strngency the
strain was too great. Several days before the
doors were closed the Bank of newborn caiieu
for additional security, and Cashier Van pieoseu
twenty-five ., 900 bonds belonging to MI. keeney
which were in the vaults for safekeeping when
Mr. Keeney learned that the Bank OF New-AorK
would no longer act for his bank, he made an
effort to borrow upon his securities. put laheu
His connection with the bank cost him about
$50 600 including $50 600 advanced to work Hassells
mines $4,000 given to make good the capital s2oW
of his bonds sold by the Bank Of New-York ana
applied to the debt of the Commercial Bank ana
$4,000 in deposits. The State superintendent Oh
Banking would not let the bank resume unless the
stockholders paid in $4,000 in cash. and this could
not be secured.
Cashier Vail admitted yesterday that ne had
aaken $4,000 in bonds belonging to Mr. keeney ana
M with he o
he said Mr. Keeney would get his money all right
As IL was a legitimate claim against the bank In
Segard to his relations to the bank Mr.. Vail said
that he had assumed many responsibilities in his
nnany wears with the bank, but he thought he did
ali for the best.
Receiver Dykman said that 1t was great pity
Ahat the bank had close its doors, but 1t could
not be helped in the existing condition Of the money
market 1t was impossible to secure the sum re-
,uircd 10 warrant the reopening of the bank IL
syould be some time before the depositors could De
tpaid anything, account of the dihculty or COL
hectng from those whose paper the bank held SO
that it might be months before percentage couid
be paid.
/ 1t is understood that the directors mean 10 see
that all depositors are paid in full. Some of the de-
ositors have already sold their accounts for ready
cash at large discount. A.meeting Of depositors
will be held on Monday evening at No. Ss9 Classon-
ave TO see what steps shall be taken to hold the
sirectors responsible for the funds In their hahus
when they knew the bank was insolvent
The worthless paper held by the bank amounted
70 s2lsOo The Capital and surplus and $4,000 be-
sides have been wiped out. The heaviest losers are
the directors. ,,
yesterday this statement of the assets and habil-
ties of the bank: