New-York tribune., 1899-07-31
IT'S SECURITIES DOUBTFUL.
REPORT OF RECEIVER FOR WRECKED
BANK MAY REFLECT ON DIRECTORS.

Perth Amboy n. j.. July 80 (SpeciaD.-James
Mcguire. temporary receiver. is expected to make
report to Vice Chancellor Pitney tomorrow which
may put the officers and directors Of the Middesex
County Bank in unenviable light IT Is now
known that the receiver considers nearly $4,000 or
securities held by the bank Of doubtful value.
Already there is a demand on the part Of the de-
positors for information on this point and in more
than one instance directors Of the bank have re-
fused 1t. President Watson was approached on the
subject lie refused 10 answer questions but said
that he could and would fully explain his course as
president of the bank when the proper time
rived When that would be Mr.. Watson did not
say. The committee Of depositors is working upon
this phase of the trouble.
South r. Harrington, who presided the de-
positors' meeting now represented by a com
mittee OF seven, said when he took the chair that
he believed the bank was weak enough to fall
even without taking into consideration the steal
ings Of Valentine, the cashier. Mr.. Harrington
planned his meaning by saying that while 1t was
generally understood that the bank was cOnserYa-
lively managed, It was known that large amount
OF money lent practically without security.
When this was repeated TO President Watson he
merely laughed.
Mr. Watson said yesterday that the probability
OF recovering the $4,000 lent to Henry y. Yard
a note sechred by Sea Girt Improvement Company
stock is far better than is generally supposed. He
fortified this by saying that the bank holds large
been mentioned in any OF the statements heretofore
published.
The largest con Sibuor to the banks losses from
investment. after Yard and Valentine. II is feared
will be Hugh Ramsay Valentine owes the bank
nearly $4,000 on unsecured notes Ramsay borrowed
$40 500. and pledged real estate security The
amount he borrowed Is within Sc eco of the price
ne paid for II. The natural increase In the value
OF real estate would warrant the loan. II not
for shadow Ramsays title The city OF Perth
Amboy claims ownership OF A large section OF his
land and although an attempt TO eject him failed
in the Supreme Court two years ago. II is recog
nized that act OF the Legislature Is necessary to
perfect his title With this imperfecton lately
and forcbly made known through the courts, II
is feared that great loss would result from
tempt realize the mortgages held by the
bank The bank valued the property at $4,000.
and real estate experts agree on that reasona-
bic figure were II not for the difficulty about the
title. 80.
Since II has become known that the bank de-
clared It's usual per cent sem. annual dividend on
July / less than weeks before II failed for
more than a quarter Of a million dollars. there is a
great deal Of curiosity 10 know how the directors
Computed the business OF the bank. The deposit
ors committee has issued call for voluntary con
tribuions with which carry on It's investigation
OF the banks affairs. Mayor Compton Is chairman mar
OF the committee and the Deputy Collector or Gus
toms c. X Seaman. is its secretary