New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-01
QUEER LOANS TO DIRECTORS
EXpREsIDENr HOWELLS DlSCloSuhhS
ABOUT THE SHERMAN BANK
HE SAYS THAT LARGE SUNS WERE GIVEN TO
OFFICERS IN THE BOARD ON FLIMsf sECUH-
IrY. AND HE CHARGES GROSS

ACKNOWLEDGMENT
., ., conn. of the shareholders Of the Shcr-
man park NOW IN process Of liquidaiion was held
Yesterday in tho Holland House. The meeting was
for the purpose Of appointing committee 10 'o1''
with the directors and get more dehhl'e h"o".''A
OF the assets and liabilities OF the bank Inc cha'
man OF the meeting was T.. y lio"''I i"'"''i'
president Of the sherman Bank The cashier, IL -
Northrpp. was present. was also :. Wiess former
" counsel for the bank Apon' uo~' ''''''
holders present
The rroccodlngs were opened By the chaittn'h
reading long pe-1rl,ten statement. In when inc
officers and directors Of the bank were charged VII"
the erossest INCOMPETENCE. II was in part as 'oi-
lows
lsa IL wac currents reported ;hat the directors ha
borrowed near.y all n" capital OF ne bank all vi
fo- that purposc My immediate predecessor. VINO
the bank president for tMo or three noun -
had a stormy time with the directors IN tIyIhs "
reduce their loans and unable 10 effect tneIr r.
auction the limit required For weeks altSr my
election rs president II was almost Impossible
secure a quorum Of the board. and was comp''ed
10 make decisions which should have oeen gao 20
ge,hcr Some o. the directors sc"ned perfectly
satisfied provided dd 20; disturb their ioSns.
that trns and asked for 500 more TO enable MIN 70
take trio West and tried to have what We con
sldercd strong lndorscr replaced by weaker one
was tod by a downtown bank officer "unlcs:s you
director all the mency he WANT he %iil try
| incorporate In this statement lettor which
wrote 20 the directors on February Is last and which
| was asked to suppress.
MIR Howelis letter read In part.
slN directors have an aggregate balance IN thr
bank to-day Of us. and their loans Indirect a.nouat
20 SjlUJD Other directors have loans. but thcN also
have large balances. The balance In our tlea'ihs
NAV be- reguested a. AK som, other bank 10 clear
through You shall not force upon m" Inc eh-
lcrencc you had with M ihtea st,lrS >r0.o'' Ia
H.,tx | hay. upNgf Al . h.
rectora "mphntIcaly rs this before. because We
had money TO loan uhcsc oans being made before
my administration began. and the future prosperity
OF the bank vas no; int'rier'i WITH snail inc Dunn
stop 20 on
The c1-pres!dent proceeds In his statement
About this time the bank examiner called upon
M AZ the Holland House and insisted that the IL
wish to call the attention Of the stockholders to
transaction mad" In the 0rganizatoi OF the
81 Madison Sgnat, han% m'tho!s NJ - -, -,
regular loan 81 -" To- " FoSter t|tusr pay
,ank .i"'A ~ nr I'm ~. ~ g. s,"r Vas nfiy
United states National Bank and IA" interest vas
paid by the sherman Hank ! onj.cirI 10 tns ' es
A. y meeting OF The board most OF the directors
favored selling the stock az option AT Whatever y
nigh, bring and charging The difference 20 prout
r9 aen qi rom a's2" TO u '' 'sG hem al.
should De- done whh" was president oi ~. n'lN;
the lnteresi Of the hank no more AZ heart would
arrange myself ior the entire loan 3D..
eros.e,, lncomr.,cncy 20 ;ho par, - IT, officer an
directors They had NO. defined policy. nuJ allow.
thernse.,c- TO dr.ft having no know edge OF tnr
Simplest details Of the managemen- ot hnan''A'
Institution
Mr. Hn.,rrs. who raN no represented some -
tho shareholiers SAID ,nn- 30 or''r o. preserve ih"
Interest," Of me stockholders committee should b"
appointed from tn shareho.lsrs 90 confer with the
oiic~-, AMI directors Of tho bank In r'Sar! 20 tn"
liquidation A.. ,,...., D.. chair.