New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-05
BANK EXAMINERS AT WORK.
NO REPORT READY YET ON THE EAST
RIVER BANK.
PRESIDENT MANNERS HOPEFUL OF A CoNTlNU-
ANcE-MEETING OF STOCKHOLDERS TO BE
HELD TO-DAY-MR JUDSON TRIES To
EXPLAIN THE SURPRISING
INEFFIcIENCY OF THE
STATE BANKING
DEPARTMENT.

DEPARTMENT..
The doors OF the East side Bank, No. 1856 Grand
st. were locked yesterday and no one was allowed
10 pass within unless he had business with Bank
Examiner Albert c. Judson, who was In charge
Charles NJ Preston the Superintendent of the state
Banking Department, was not at the bank ou' Si'
Judson, with his two assistants, was nara AT "orh
and making rapid strides toward competing the
investigation He said tina; he could say no'hihs
mere than he had already given to the public NO
details as to the banks condition would be maze
public until he had completed his report 10 Inc oe
partment at Albany he declared, ana ne pe"e'e'
that that would be done some time this week.
Thomas K. Manners. the president OF tpe BANK,
thinks the banks capital will be found uniinidiren
and its condition sound. To show tnat the ous-nes'
public has confidence in the banks ability 10 DO
business IL II is allowed 10 resume the omcefs VI
the bank say that they have received 'aise oie''
Of subscription for the new stock, ana thal Tue TIC"
business would be carried on with largely III
creased stock
One depositor has written 10 rresiue"' ""''"e'''
he says. follows:
81 have made a proposition to many OF the oe-
positors In East Side Bank that II the depostors
should agree not TO draw any of the money now IN
the bank for the next three six months. and con-
tinue to deposit before. by 80 doing the panK
NAV resume business and it seems that they were
all in favor of the proposition. therefore write this
letter 10 you TO inform you that II you think mat
you can so ahead under these conditions VIII call
a massmeetng OF the depositors ana see IL II can
be carried through.
Late yesterday afternoon President Manners sent
out the following letter:
You are respectfully requested to attend meet
ing Of the stockholders and friends OF the East SIDE
Bank. to be held at Room "a, Aslor House. New
York City. on the 9th day OF February. 1885, at
.. m. sharp. Your presence is urgently requested
superintendent Preston will arrive In this city TO-
morrow morning. and it is believed that a state
ment to the banks financial condition VIII De
submitted at the meeting. In the case OF there De-
ing small deficit the present stockholders VIII De
called upon to make it good. and II they do so Mr..
Manners thinks 1t will result in subscription OF
an additional capital OF $4,000 Of which $4,000
will be surplus. With this he believes that the bank
would have no difficulty in securing Clearing
House agent.
Mr. Judson was seen last night at the Park Ave-
nue. Hotel. and said that the discovery Of the I'M
soundness Of banks during the incumoency OF the
present State Banking Department officers has been
due to the rigid examinations which have been In
stituted and the general vigilance OF the examina-
tlons
The shortage In the Ulster County Savings
Bank he said. (which amounted to about $iOoooo'
existed In part at least, for nearly nineteen years
when department brought 1t to light. and the
defalcations in the National Savings Bank OF Buf-
falo. which footed up to something like $4,000
might have been discovered fifteen years sooner
than II was IL the same methods had prevailed"
Mr.. Judson points with pride to the work done by
the department In the case Of the Madison Square
Bank and the st. Nicholas Bank. and thinks that II
the methods now IN vogue persisted In. unsound
He attributes the collapse of the East SIDE Bank
and the general shrinkage In banking business 70
the hard times which have Frustrated all branches
OF commerce.
us il not the Bank Departments duty to prevent!
rather than discover this Insoundness In banks?'
"Yes; it is" said Mr.. Judson: and II the same
methods had been pursued by our predecessors as
now exist. some financial disasters would have been
prevented. The mode Of examination VAS doubtless
slack" he continued. "and did not reach bottom
can easily demonstrate that by the fact that VIII
Madison Square Bank the year before found Il in
bad shape. thought SO well of It that he placed
deposit there and had about $500 on deposit when
the banks doors were closed"
Mr. Judson was asked about the solvency OF the
Hamilton Bank Of Brooklyn and said II had clear
surplus Of $4,000 and the refusal OF the American
Exchange National Bank to clear for 1t would not
WIN clear for the Hamilton Bank, and its business
will be we'll taken care Of as ever .
Mr. Judson asked why the Federal Bank, NO:
b Third,aye was aiiowed TO continue business r al
its deposits exceeded 100000. He answered ".Our
department had no right to close the bank so long
as q surplus existed. knew that the business OF
the bank was shrinking, and when ! examined me
to arrange for liquidation before he was forced TO
do so by the department.
1.-THE president told me then that his bank had In
view consolidation with another bank and If the
scheme failed he would iiquidatc the banks af
fairs before the surplus was exhausted
Mr. Judson also asked whether the stock
holders of the Harlem River Bank are liable for
twice the amount OF stock. . 1870
''The law to that effect" he said. has not yet
been tested. but It may be in the case Of the Mad-
son Square Bank.