The evening world., 1894-07-31
DIRECTORS BLAMED.
Harlem River Bank Officials
Scored by Their E1-President.
Director Weiss Replies SplrItsdIy
to Mr.. Howell.
Lively Scenes at the Holland House
This Afternoon.

There was a lively meeting OF the
stockholders OF the Sherman Bank at
the Holland House to-day to determine
what steps should be taken towards
winding up the affairs OF the bank.
Ex-Presdent e. n. Howell created the
first excitement by reading a statement
in which he bitterly arraigned the d.
rectors and blamed them for the failure
OF the bank.
When he became President Of the bank
in July. 1893. Mr.. Howell said. he found
about sl2O,0O0 OF protested paper In the
100000 and something ike $2W 900 Of cash
in the United States National Bank The
accounts numbered about three hundred.
and II was currently reported that the
directors had borrowed nearly all the
capital Of the bank, and one personal
authority stated tnat the bank was start
ed for that purpose.
One director" continued Mr.. Howell,
whom ] asked TO reduce his loans,
finally said he. could not pay at that
time, and asked for 500 more TO enable
have what we considered strong in
dorSer replaced by u weaker one
Before taking the position of Pest
dent Of the Bank. was told by down
that director all the money he wants.
he will try to get you out of the bank.
This proved to be true
Mr.. Howell then read a letter he had
sent the directors In February. The
letter follows:
NEW YORK. Feb ss 1884.
Dear Sir Il has become painfully evident to me
that the only salvation OF the bank Is to reduce
expenses Tor this year and to erest this have
dismissed several clerks ind reduced salaries Of
1thsr. making saving OF the 0.n% s. oOc and
hope To hive the rent reduced 81 or IS. GOT
for the coming year. The President. the cashier
and the clerk should not be called upon ~ DC
more than their STARE. nor To make all The sacri-
Noes ana ! mus therefore ASK the direc'
! TORS TO pay or recute their loans or
have All aggregate balance in the bank to-day oil
SJl6, and their lOrus indirect amount to S5t 900
Other directors have loans but they also have
large balances. The balance in our Clearing
| House bank II in Jeopardy 10 such an extent thai
| II may be requested to seek some other bant Il
elea. througn {og shall not t"r1e upon me thu
| done, BEnf have never called the attention o
the director. SO alphabetically az this before, he
| cause we had no money Ia loan these loans beinI
made before my administration began. and IN,
future prosperity OF the banl, was not interfere
with sh''' the bank stop or So on , Your ;rSiy
~ wish 10 cali TIE attention OF III.
stocknoiders." vent GA Mr., Howelis
zation of the bank which tine bank ex
aminer told me smicked of Madison
Square Bank methods. This is an ir
tormer paying teller of the bank. o
fifty shares of Sherman Bank stock. a
the time OF the organization of the be nj
the total subscriptions Of the stock Wal
orig nslly by the United States Nationa
Bank ana the interest PAID by the Sher
man Bank.
Il objected to this loan very strenu
ously wnen went into the bank and in
| sisted that the directors should take nj
the loan. A. meeting of the Board
most of til" directors favored selling tn
stock at option AZ whatever II nigh
bring ana charging tn" differenc
to profit and loss account The los
would probably have been from
never should be done while was Presi
dent of the bank, that II the,
had no more patriotism than that no
the Interest Of the bank AT heart II re
manned president Of tho bank ! woul,
arrange myGelf for the entire loan an
that the bank would not lose one dolia
in principal or Unrest
ut ~ well known that the Director
can he made tu pay this luu1 81 tina
no loss would fsll upon m" stockholders
bat this Will not be done unless u
sisted upon they may have been fright
en"d Into paying II since"
After III" reading of this statement
Attorney George q. Hastings, represent
ing Stockholders, moved that \ commit
tee. of which Mr.. HoweIls should l.
chairman. should ne 2ppc,ntel to leg
| holders.
Lawyer $. W. Weiss. a stockholde
himself. defended the directors ana wig
oroasly objected TO Committee {
stockholders being appointed, especial
ii Mr.. Howells was TO he at the hea(
lie said Nh. Howells was prejudicei,
, | Mr. Hastings declared that the preSen
officials were trying 10 keep Things hi
den from The stJckholders.
II didn't think there was anythir
wrong before | came here" he ~
claimed, but | am beginning to thin
Mr.. Hastings's motion was finally IL
fratcl and then resolution asking thG
tho directors call meeting OF stockhol,
ers and give "A detailed statement wa
adopted. Some OF the stockholders wei
In bad hunor when the meeting broS
up, and there were lntimations that q
courts may Yet be asked TO take a han
in winding up the banks affairs,
Appropriation NH Approved.
tBy Associated PreSsb
/ w AQuINGT0Nl .Iuly 1.-The Pres