New-York tribune., 1895-12-12
CHARGES AGAINST PRESTON DISMISSED
GOVERNOR MORTON SAYS THE CIRCUMSTANCES
DO NOT JUSTIFY ANOTHER INVESTIGATION
OLE THE RANK SUPERINTENDENT.

| GOVERNOR MORTON SAYS THE CIRCUMSTANCES
! DO NOT JUSTIFY ANOTHER INVESTIGATION
OF THE BANK SUPERINTENDENT
! Albany. Dec. n.-Governor Morton to-day issued
orde- dismissing the charges brought against
Charles NJ Preston, State Superintendent OF Banks
preferred by the depositors organization OF the
/ Commercial Bank, of Brooklyn. superintendent
Preston's term expires in May next but It is ex-
pected that he will resign his office to take effect
! on January l. Mr. Preston is president or The
| Equitable Securities Company. OF New-York City,
and this company Will come within the supervision
OF the State Banking Department on January l. AS
the law prohibits any empoye Of the Banking De-
partment from being connected with any financial
institution under the supervision Of the Depart nent
1t is expected that Superintendent Preston Will re-
sign as superintendent OF Banks at the end Of the
present month.
| In uphoding Mr. Preston's official action. and in
dismissing the charges Governor Morton refers to
the inquiry by Governor Flower into similar charges
and Governor Flowers action in dism!ssing them
and says that in his judgment the charges do ot
justify another investigation Governor Morton says
! In conclusion:
since December, 1899, The first examination Of the
BANK so after he became % h
the bank had surplus OF SASH II over and above
was "a spscis cxamnatien % Decem6er i lso sus
gested by the genera. financial depression OF that
bank aSa was a the tna amount ons Of o q
The day the Superint erdent. acting under the
authority conferred by the Banking .aw. directed
this deficiency to be made good at once and within
three days there was paid TO the bank In cash
81. l.2+ 80. and within sixty days total of N2045 H.
al OF which was realized from past due paper
which had been disa.lowed in the examination as
worthless.
The next regular examination under the law was
made IN September 1921. and 1t appeared that there
was an impairment OF capital Of the bank OF
S7.ll5 5s. upcn the receipt OF this report OF the
examiner. the superintendent at once personally
visited the bank as ne says. FOR the purpose OF
requiring that this sum be made good taking
/ ln ~
necessary" He personally made examination
OF the paper OF the bank and readjusted the valua-
: satisfactory evidence OF It's actual value Within
/ three days from this examination there was paid
in cash sl5,7l3 S, on paper which had been d.s-
allowed by the examiner as doubtful and worth
that there was an actual surplus OF about sl39c0.
There was another regular examination October T.,
1892 II was then found that the bank had
p.us OF siGS9 ~. after rejecting doubtful. and
worthless prom.ssory notes amounting TO $751;
25I 10. There has been no examination made sin e
by, the Banking Department
1892 and In March ard June. 1898. all OF which
showed q TO be In solvent condition. and, accord
Ing TO IT. own estimates, TO possess reasona bic
surplus II IS claimed that these reports were
concerning the alleged falsty was made TO the
Super.ntende or that there any circum-
hank which required any. special examlnaton dur
ing this period. The bank does not 10 have
been a;rong. hns during all this per.od Il TO
have been actually solvent although the surplus
unable TO resist the effect OF the financial de-
preston OF 1893. and closed It's doors the 18th OF
August.
The loans particularly criticised are those made
: TO the ST. kev.n Mining Company and to Paul c.
| Gren.ng, the first OF which was secured to the
amount OF @o,oco which 10 the extent to which the