New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-16

CHARGES AGAINST THE SUPERINTEND-
ENT OF BANKS SENT TO ALBANY
THE DEPosIToRs' ORGANIZATION OF THE COM
MERCrAL BANK OF BROOKLYN REVIEWS THE
ALLEGATIONS WHICH WERE UNHEEDED
BY GOVERNOR FI.OwER-A STATE
MENT BY c. AUGUSTUS
IIANILAND.


HAvILAND.
C. Augustus Havand, the president OF the
Dcposltor5' Organization of the CommercIai
Bank Of Brooklyn, which closed its doors on
August H. 1893. on Thursday sent to Governor
Morton. by registered letter. a damaging pre-
sentiment Of allegations against Charles NJ Pres-
ton. State Superintendent Of Banks. whose term
expires on May Q, 1896 This criticism OF Mr.
Prestcns methods has attached to it, Mr.. Havl-
land says. testimony which proves that Mr..
Preston has been derect negligent and false TO
his trust in dealing with the affairs Of the Com
mercial Bank. State institution whose failure
was followed by litigation that has been direct
ed principally against three of its directors
Ebert sncdekcr Robinson Gill and Seth l..
Keeney.
Mr.. Haviland says that the papers fled with
Governor Morton show that the Commercial
Rank was insovent for years with the fuii
knowledge of Mr.. Preston and that this charge,
made BY the Depositors Organization. since the
banks doors were closed, Is now backed py
weighty evidence of grave fault on the part OF
the bank superintendent
The story of the banks troubles. and the
charges made against Messrs. Keeney. Gill ana
Snedeker, on account of disastrous loans TO IT,
l.. Hassel Del Orme. Knowlton, and the ST.
Kevin Mining Company have been published IN
the newspapers from time to time. This last ac-
ton Of the Depositors Organization, however,
presents for the Governors consideration sworn
testimony, on which, the organization asserts,
the Governor will be justified in suspending
Mr.. Preston from office pending investigation of
his methods. which is asked for. The papers
were filed with Governor Morton yesterday and
were signed by Mr.. Haviland, as president of
the Deposltors' Organization.
In speaking OF this latest action Of the
ganization last night NJ. Haviland said: The
Depostors Organization formed in August,
1893, and represents about hundred of the
largest depositors among six Or seven hundred
of the bank. 1t is determined that the three d-
rectors it has all along held to have profted by
the ST. Kevin Mining Company transactions shall
be compelled to make good the present and re-
naming deficiency of $4,000 The bank failed
on August 70. 1893 o. at least. closed its doors
OH that day We have had expert accountants
untanglng the affairs of the bank since then. and
showed by Bank Examiner l.. F. Cabil that
he reported to Preston. bank examiner that
the bank was insolvent in 1890 and 1891 In 1898
We made general charges against Preston, and
our commit "a appeared before Governor Flower.
who promised Investigation, and finally, for
reasons known t. himself 'whtewashed' Mr..
Preston.
"On october 80 1895, MI Cahill. who was Dep
uty superintendent Of Banks. but afterward EX
aminer in the New-Yor1 district. testified before
the referee. RI. T. Ketcham. that he had sert an
Official report to Bank Superintendent Preston
that the bank was nsolvent in 1889; that he also
examined the bank In 1891. and again reported 1t
nsolvent and that he called the attention of
Seth l.. Keeney, the banks president. to the fact
that the bank was insolvent. and that Mr.. Kee-
ney then put his hands to his ears when he heard
il and went out of the bank.
"D c. Van Bookseller. expert accountant,
examined the affairs Of the bank for the District
Attorney Of Kings County and reported inefti-
cient management Of the bank for ten years;
that accounts had been overdrawn, that debts
that past due for ten years were put down
as good ones in a sworn report that the banks
capital and surplus were wiped out before 1880,
and that its condition never improved. The re-
port continued as follows" said Mr. Haviland:
" The sworn statement of June 1. 1898 Is false
In twenty-five items. out of thirty-fOur.'
"A certified copy Of these facts, said Mr..
Haviland. was fled with Governor Morton to-
day, and his action Is awaited with interest
The DcpOsitors Organization charges the bank
superintendent with incompetency. and that his
department has fOI years been conducted In the
interest Of spectators. The Madison Square and
Harlem River banks failed owing to :his line Of
action Of Mr.. Preston. AMI their depostors will
probably join in endeavor to have Mr. Pres
ton punished All Of this important testimony is
annexed to the reports. sent TO the Governor OF
Mr.. Cahill and Mr. Van Bokkeen."
Albany. Nov 15-Charges against Charles
Preston. Superintendent of State Banks. for neg
lgence and failure to discharge his duty In refer
ence to the affairs of tie Commercial Bank Of
Brooklyn came in the mail by special delivery
to the Executive Chamber late this afternoon.
The Depositors Organization of the Commercial
Bank makes the charges.
The allegation is. in effect that the bank had
and hot rfc
made by bank examiners 10 Mr. PrestOns de-
partment have shown that the bank in
solvent. and yet notwithstanding all this Super
intendent Preston has failed TO take proper
action regarding the bank
The Governor is out of town. and so is Super
intendent Preston but Colonel Ashley w. colo.
the Governors private secretary, will commun-
cate with them Immediately
Similar charges were filed with Governor
Flower. and he found thai they
tained
POJTITE THAT HE is RUSSELL.