New-York tribune., 1895-02-03
THE EAST SIDE BANK CLOSED.
BROUGHT ABOUT BY THE WITHDRAWAL
OF ITS CLEARING HOUSE AGENT.
ITS OFFICERS SAY THAT THE TROUBLE IS DUE
TO THE CIRCULATION OF FALSE RUMoRs
AFFECTING THE CREDIT OF THE IN

AFFECTING THE CREDIT OF THE IN
sTITUTIoN ITS CONDITION.
The State Banking Department yesterday closed
the East Side Bank at No. l35 Grand-st and AT
half past o'clock Mr.. Judson. State Bank TX
amner took charge. and posted on the door OF
the institution the simple announcement that the
bank was closed pending examination The
officers of the bank not there when MI Juo-
son took possession. but when they arrived they
were highly indignant and said there was no oc-
casion for such an action. Meyer Thalmessinger'
the vice-president had this TO say ABOUT the
action OF the Banking Departments
Why we are closed up don't know, We are
all right and the action taken this morning was a
complete surprise 10 me. The action rs piah'! sl.o
the bank by a section OF the press that is unscrupu-
lcus and foul These attacks have resulted IN so,r
days although It was slight compared win wna. %u,
II would have been II confidence IN us nau peei @
less great. During the two days about $1,000 WAS
drawn out but our deposits amounted 10 about
$4,000 SO that O about half mill, m,Ion Wss s 900 Jew While lie
additional profits amount to about NS". we
have liabilities beyond our deposits
Mr.. Judson. in reply to questions, made the
following statement:
You are aware that for some time there have
eeom ~ IgmorS S hecs hasea @ f otbsrs seny pau
sble to call fer an examination ] began the et :
animation TWO days ago. ana. WhIe am
to make public now any results, my reports 10 70
Mr. Preston caused him to direct me to close ana
ony in the midst Of the Investigation nothing
definite can be announced. II will be some four OF
piced So far as am aware no charges aIeeilns
the integrity Of any Of the officers OF he bank have
sy Mr. r. Ma s h M ,ho GaTe Tf.
S' SH s"Ge Of Se bank nd myse S hs,
he best to overhaul thoroughly the condltion OF
the bank and set at rest the rumors. II false or
circumstances
quired H.
THE PRESIDENTS EXPLANATION.
Thomas r. Manners. the president OF the in
stitution said:
An explanation Is due 10 our deposi,ors and
friends 6f ths circumstances connected with The
persons formerly connected with this institution
rumors had no foundation. and prompted
by malicious motives Lsboring under this disad-
vantage the officers and directors eNerted every
possible means TO avert the final disaster Dat
the mischief had been accomplished, and our De- de-
last two days has paid out '22s 80. eagaI TO an
%HengS AN mpossSl,y on s6or, noice further to realize
upon its asses without great sacrifice We desired
nave no hestaiion In saying hat the result Of
examination viii show that this Institution has
been conducted IN an honest. upright and business,
IKE manner and that every deposition will be paid
In full
The immediate closing ot the bank was due 20
the action II the National Shoe and Leather
Bank which refused on Friday 70 act longer as
its Clearing House agent. Tho shoe and Leather
Bank rent out n0ticcs 90 this eject yesterday IN
time 20 prevent the other banks accepting any
drafts OF the East Side Bank for Mondays clear
ances.
John VI. Crane. president of tn" National shoe
and Leather Bank said that the action Of Super
in,endent Preston WAS undoubtedly due 10 tn.
notices sent out by the shoe and Leather Bank 10
the associated banks announcing It's withdrawal
as the closed banks redemption agent Mr..
Crane was Of the opinion that there vas nothing
wrong with the East Side Bank. Its suspension
was duo really to lack Of business. There had
been no impairment Of capital. 30 far as Mr.
Crane knew and President Manners said that
there was an actual surplus OF 10000
THE EXAMINATION OF THE BANK
II has been known for several days that the
state Banking Department has been making an
examination Of the afrairs of the East Side Bank
but the officers OF the institution. az well az the
bank examiner. said that II was regular exam
nation and the bank perfectly solvent A.
cordng to the last statement Of the bank, on De
cember 49, It's condition Was as follows: