New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-09-29
THE EQUITABLE MORTGAGE ON ITS FEET
REORGANrZED WITH CHARLES 81 PRESTON AS
PRESIDENT-fIIs LAX METHODS IN THE
BANKING DEPARTMENT.

The Equitable Mortgage Company which suspended
August 81 1885, has for time been in process
OF reorganization About So per cent OF the SfTpOO
Of dbenture and bond holders and about 80 per cent
Of the s200O0 OF stockholders have assented TO the
pan OF reorganization, which was undertaken by
Charles s Farchid A. b. Hepburn and George
Coppell as a reorganization committee. The new
company which received a special charter from the
las; Legislature yesterday organized. and elected
a its president Charles NJ. Preston, superintendent
OF the Banking Department Of the State OF New
York. The company proposes TO utilize as iar
possible the experience and ability In the force
employed by the old company. and the remaining
officers will be chosen soon as Mr. Preston can
be conferred with. He vii! presently assume direc-
ton OF affairs and IN the future Will retire from
his present office Bank superintendent.
Mr. Preston has been Superintendent OF the State
Banking Department; for about five years. being
first appointed by Governor HILL He was last APP
pointed by Governor Flower and has about two
years of unexpirei term before him. He has under
his supervision savings banks trust companies state
banks, building and loan associations. ana ali mort
gage companies doing business within the State OF
Nfw-Ycrk. The aggregate resources OF these insti-
tutlons far exceed NoOOOocoo. His office is one OF
the most important and involves great power and
responsibility.
In the time that Mr.. Preston has been Superin-
tendent Of the State Banking Department some of
the most outrageous banking methods In State banks
have 10 lght and the state banking Depart
ment has no, been responsible for the discoveries
In fact the exposures proved that the state BANK
Ing Department had been lax in Its work and
greatly rcmiss In seeming out the rotten methods
which led the destruction OF such institutions az
the St Nicholas and Madison Square banks. When
these banks closed their doors II was found that
state OF things existed that must long before have
been known by Mr.. Preston had proper examina-
lions been made by the department, and in the case
OF the ST Nicholas Bank the Banking Department
was forced admit that the stealings OF the paying
teller. Louis j. Hl, had been going on Tor TWO years
and that In that time the department had failed to
discover anything wrong. After the officers and
directors Of the Madison Square and St. Nicholas
banks had borrowed the funds Of the bank on col.
lateral hardly worth the amount a ragman would
give for Old paper; after stockholders ana de-
Iosiors had been robbed and after there was little
left but Office furniture and rumors OF bankruptcy,
the State Banking Department stepped In ana de-
clared that the concern should no longer do bust
ness The developments following the closing or the
doors OF these and other institutions plainly showed
that had the State Banking Department. under Mr..
Prcston's supervision performed Its duty. different
state OF affairs would exist, and criminal bank
officers and directors would not have Jugged with
stockholders and depostors' money and lost IT,