The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-07-21
COOPERATIVE BANK SHORT
DEFICIT rs S"0O.JSJ.7 az. THE BANKING
DEPARTMENT SAYS.

Shareholders whistle and Hoot Mt the News
and Mt the Disclosure Of an Investment
of S215,OO) In Lands Recently Sold for
conc Committee Is to Investigate.
Three hundred shareholders in the "Mcr-
camille Cooperative Bank" an institution OPP
Grated on the building and loan association
plan. held an excited meeting in the hall Of the
Young Mems Christian Association at Twenty
third street and Fourth avenue yesterday after
noon The shareholders had been summoned
to tho meeting by the officials of the bank. who
had sent out a notice that Its assets have
been seriously impaired
The meeting resolved itself into a three
sided fight. On ono side were tho sharrhold-
ers and State Bank Examiner +. ID kilburn.
On another side was John Frar kenheimer
who represented John W. Newhery. President
Of the bank up to April last. but at present IN
Europe. Charles Edward Potter. present Pres
ident 0! the bank. was on the third side
The bank was founded in 1890 by s. w.
Fullerton. In 1882 Mr.. Newbery was elected
President. The depositors in the bank were
known shareholders and paid regular
monthly dues. The money accumulated in
this way was lent TO shareholders at high rates
OF interest. and the profits were to lie divided
among the whole body OF shareholders at
stated periods. The rule Of the bank was that
money was to be lent on improved real estate
only and that no real estate should he bought.
The bank was practically a building and loan
association. although it did business in mort
cages. securities and insurance on the side.
Branches We're established in fremont. Yonk-
ers. New Haven. Bridgeport, Elmira. Staten
Island and other places. The main office Is
at 1872 East Twenty-third street.
The shareholders were regularly informed.
so they say. that the bank was making money.
Then Caleb Leach. shareholder. made some
Investigations and concluded to get ont the
$4,000 he had invested. lie went to law over
it. and finally got out with his money. Other
shareholders began to withdraw. All demands
were met Immediately up to April last when
Mr.. Newbery resigned the Presidency on
account OF bad health and went TO
Europe Mr.. Potter. who is member
or the firm Of Potter 4 NoGl Of %
Cortlaudt street. was elected President
Claims weren't paid after that and Mr.. Potter
threw BON ishell into the camp Of tho share
holders by revealing that the bank had III
vested S2I5.uOn in real estate at Pelham Park.
Westminster county. som" Of the shareholders
made an investigation and reported that the
property was unimrroved and largely marsh
lana: that On Doc IL. 1873 It had been sold at
auction Tor $4,000 To William /inGer. and
that he had sold II in January Of the present
year to Mrs. Teresa Lynch, the diamond dealer
Of MON square. for $4,000, The bank bought
| II OF Mrs. Lynch. 1890
In the meantime Bank Examiner kilburn
had been stirring ny tn" bank officials. The
hooks were far from satisfactory to Mr. Kill
burn. and he threatened 10 turn the matter
over to- the Attorney Iicn"ral unless Potter
could show that the bank was solvent. The
result was thu call for Yesterday = nIr"tiIg.
The arrhuld"rS came early and sat around
the hail. saying things about the bank officials.
There wer" dozen CONNECTICUT people among
them, and thcy drought i. i, Gupdheart,
lawyer Of New Haven. to represent them.
| When President Potter arrived he got cold
inn mt NI,Gn in II npnl ma
would prcsid" he was speedily informed that
he was mistaken. The shUrch pdrrs put l.. ii.
Vail OF Ioughk"tuse in til" chair.
Mr. Potter rot the floor. aud SAID that when
| he was elected President he was Informed that
| the tank was tn" most prosperous institution
OF ITS kind In the country. He was told he said.
that tn" assets were 81 UIl.t go. and that there
was surplus OF S!WuOu. and. believing the ill.,
stltution to be in n i"url hing condition. he
thought it would he n good plan to form an in
dcp"ndent company to build homes on 100
acres Of land in Westchrster county. which
land tn. bank should purchase. His plan was
for the bank to take mortgages from
those who took houses from the independent
company He had gone a. far AS To purchase
the land h" said. when he discovered that
there was something wrong with the bank and
that large Withdrawals had been mace. lilo
finally came To the point. and stated that the