New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-27
BAD BANK MANAGEMENT.
THE SURPLUS OF THE MOUNT MORRIS
GREATLY REDUCED.
STOCKHOLDERS HAD TO BE ASSESSED TO MAKE
Up LOSSES INCURRED BY THE DEPRECIA-
TON OF REAL ESTATE AND SECURE
TIEs-A NEW PRESIDENT ELECT
ED-THE INSTITUTION SAID
TO BE IN GOOD
SHAPE NOW.

II came out Yesterday that the Mount Morris
Bank a State institution, at NO 80 East one-hu,i-
dred- 1-twenty-ffth-st. has lost consioeraoie
money through bad speculations The last quarterly
statement shows that the banks surplus is now
slOn ON whereas il was formerly $SUOV invesu-
cation brings out the facts that the surplus OF s
900 was at one time last summer entirely wlpeu ou'
and the capital OF $4,000 impaired ABOUT s-ooV'
Anassessmen levied the stockholders aiter an
examination by State Superintendent Preston. In
The mean time he allowed the bank officers 10 WIN
hold their report for thirty days. so that the oahK
appeared to have surplus OF $3ooVV, with al UNI
impaired capital Of s250,ooo Governor-elect Morton
is small stakeholder In the bank but his coiS-
pany 1t was said yesterday at the ONCE IS not
hack of it, as was reported yesterday The money
was lost men interested say. through the poor jung
nent of Joseph Nj. De Veau. the former pTesiden''
and Thomas w. Robinson. the cashier. VINO uleu III
the latter part OF July. When the condition OF the
hanks affairs became known TO the directors 'he!
at once demanded the resignation OF MI DE Neau'
and William H. Payne elected in his place
II is said that large amounts were loaned OH redi
estate in Harlem near the bank and thai part OF the
loss was caused by the depreciation of the property
1T is also said that poor paper of some loan asso-
Citations in Harlem was bought. and that the Damn
had loaned money on securities or the E'dhsN"e
and Terre Haute Railroad. which have recently de-
creased in value.
Itisnot known how Mr.. Presto discovered that the
bank had lost its surplus. At any rate. he ordered
an Investigation with the result mentioned. ana an
assessment of 80 per cent was made on the STOCK
holders G. B. Grnnell OF Morton. Bliss & Co. VINO
is a stakeholder and President Payne went 10
Dumont Clarke president of the American Exchange
National Bank which acts the Clearing House
agent for the Mount Morris Bank and. after telling
him what had been done. asked him how much ms
bank would advance il they had to cal on MIL
He said 81, 100000 if 1t became necessary IhHre was
no run on the bank, although all the Sio.Kfoiuers
knew the facts Of course and the assessments were
deposited with Morton. Bliss & Co. ami were theh
turned to the bank
Tho true condition of the bank not puolshed
for thirty days as 1t would in all probability nave
caused a run on the bank President Clarke, OF the
American Exchange National Bank says that the
discovery was made Immediately after the death OF
The cashier The stockholders among the rchest
and strongest men in the city The August report
he says was held back. with the consent OF S'atr
Superintendent Preston. until after the assessments
were paid He says the bank is not only soiVenl out
is in better condition than II has been In years -
Mr.. Payne talked freely of the case YESTERDAY ne
said the losses were Incurred CHEEKY on accouh, VI
the general depreciation of securities during me las,
eighteen months. The stockholders contributed
sS%o. .s., .r. now IN tur stronger
position than ever before with large cash surplus
on hand in addition a large amount OF securities
1ntrinsically valuable but not at present aNalape
which we have therefore not counted as assets put
which in the near future will add materially TO our
surplus sros,s Yesterday were larger he declared
than the withdrawals. When asked to take charge
of the bank he threw questionable securities sup
posed to be worth s6sOoo and demanded an assess
ment The paper was OF miscellaneous character.
They had lost no money loan associations. The
bank did charge the former president and cash or
with anything more than bad judgment There wa
falsify the report; the former had merely allowed
them months time.