New-York tribune., 1894-03-29
AMAZINGLY LOOSE METHODS.
LIGHT ON ST. NICHOLAS BANK BUSl-
NESS ABUSES.
HOW THOSE NEAR TO THE PREsIDENn "ND
MANAGERS COT LARGE LOANS on ALMOST
WORTHLESS sECURITY-THE AMOUNT
REALIZED AT THE SALE or
TIE COLLATERAL.

WORTHLESS sECURITY-THE AMOUNT
REALIZED AT THE SALE or
TIE COLLATERAL
The methods employed by the - Nichoias h'.n"
In doing business were shown YESTERDAY ""eh NV
names OF some Of the people To whom the oa"
made loans were given out. According 70 'he
prices obtaired for the securities and coha'era'S
sold on Tuesday, the bank lent money on poor
paper, and the loans in most cases were give"
on securities worth less than one-quarer the ioas
Joseph F. Blaut. who was president OF 'he Maui
son Square Bank borrowed $4,000 from the -
Nicholas Bank on securities which soH ior ~VV'
William f. Midl,,ey made big loans from me o@N
on security which sold for nominal price T.. ~
Graves a nephew OF the president Of the -. Memo
las Bank was allowed to borrow money from '"e
bank on Lake Shore Driver Land Company. "h'ch
sold at s5 q share. F. F. Hotchfiss borrower
money on the Standard Coal and Timber Com
panv's bonds which brought 500 at the auction
sale their par value representing SOW +. d.
Mather the attorney for the bank. was allowed 10
take money poor security. which brought ih're
nothing at the sale. /. B. Newcomb maze Dig
loan from the bank on a lot OF poor coHa'eldi'
which sold at one-third Of the amount lent 10 MN
T. Soullard and George Thompson also mlde
big loans on security which brought low prices
The securities and collaerlls sold on Tuesday were
those put up for loans. principally by 'hese men
William F. Mdsley borrowed money giving as
some Of his security ten shares OF Deeche ocne"oN
& Co, which sold for s25
The loans made by the ST. Nicholas Bank were
IN many instances securities and conaterals that
were hardly better than waste paper The securi-
ties sold by the bank represented a face value OF
s935,0Oo but they brought only sl6SOoO. 1t was
big surprise 20 the receiver that the sale brought
as much as It did considering the fimsy nature OF
the paper. The question arises why the bank
made such loans From the list Of the names OF
those who borrowed money from the bank. 1t seems
that many Of them closely connected with the
institution or else friends Of the managers
Perhaps II matter Of personal filendShlp or, on
the part Of the president that led MN 10 allow MS
friends to have money on any KIND OF paper; me
bank lost n large amour; OF money on these loans
and the depositors may demand further eNpiaha-
tIon from Mr. Graves. Mr.. Blaut secured. as mas
been said $4,000 paper that sold for $500 mat mat
was a peculiar loan. II is not the custom OF Dahks
10 lend $4,000 on security that VIII sell Tor ohlE
5000 and bankers amazed at the audaclous prdC-
tjces of the managers of the st. Nicholas BANK
There are vet securities he'd by me pank
against loans which have not been sold me re-
reiver Of the bank thinks they are 700 good 10 sac
rifce and he is in hopes that the creditors, VIII
cover them. II is said that they are git-edged
This is an Interesting fact If Il is So for up to the
present time nothing has appeared in the AFFAIRS or
The bank that would lead any one to suppose that
there had been any loans made on good security