Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1904-04-19

necessary to know how he saved the
Ulster County Savings institution. In
September, 1901, this important bank,
which had deposits Of $2,5O0,0OO closed
its doors in consequence Of embezzle.
ments by the treasurer and assistant
treasurer of sums which, with the divi.
dends due, amounted to 100000. This
wiped out the supposed surplus and
left the institution with q deficiency.
The usual action was taken by the at.
torney general to wind up the business
and distribute the assets, and q tempo.
rary receiver was appointed.
1t was found that it was impossible
to wind up the affairs Of the bank In
the ordinary way without substantially
destroying the market value Of the real
estate Of the bank. This was so be.
cause the institution had invested about
$1,5OO,0OO in real estate mortgages, one.
half of which were on farms. To
throw so many farms on the market
would have caused q crash In their
values.
Among the trustees Of the bank were
Judge Parker, General Sharpe and
Judge Kenyon. Judge Parker was on
his farm at Accord when he got hint
that there was something wrong. He
left his fields, hurried to Kingston,
made quick Investigation and had
the assistant treasurer lodged in Jail
that night.
To save the depositors from loss
Judge Parker took the leadership. He
tried to get some strong institution
like an insurance company to take an
assignment of the mortgages, with
some local bank as discount agent. No
institution willing to take the assign
ment could be found. 1t looked as II
the mortgages would have to be fore
closed to pay the debt, which meant
q destruction of values and little as
sets for the depositors, who were in a
state Of terror and confusion.
Worked Night and Day.
Judge Parker began to look about
for an honorable and wise way to save
the institution and its depositors. he
got q number of the old trustees to
assist him.
His scheme was new one In New
York state. The idea was to ask the
equity court to substitute In place OF
the temporary receiver twenty-five
prominent citizens to act as trustees.
The judge worked day and night urg-
ing the strongest men In the county
to his aid in saving the bank. he
got presidents and cashiers Of banks
and other business men enlisted. Ev'
erything else was thrown aside until
the twenty-five trustees were secured.
Fortunately for the institution,
Charles NJ. Preston, the state superin-
tendent Of banking, who lived at
Kingston. gave Judge Parker's bold
plan his official support. The legal
battle was before Justice Fursman In
the special term Of the supreme court
at Troy. 1t resulted In decree sub
stituting the twenty-five trustees for
the temporary receiver and scaling
down the amount due to each depositor
to bis pro rata share Of the assets. The
court also enjoined the depositors from
drawing out more than 25 per cent OF
their deposits till further judicial Or
ders were made.
Stopping a Panic.
And now a tremendous excitement
was stirred up in consequence or local
political disturbances. The leading
newspaper of Ulster county, to en-
barrass the bank and thus injure some
of the original trustees, advised the
depositors to draw out their allowable
25 per cent as soon as the banks doors
opened, as it would probably be all
they would ever get.
A frantic crowd of depositors
stormed the bank. The run" meant
ruin. But when the doors opened
there was Judge Parker, with a bag
of money which he had obtained IN
New York. He was determined to
prevent q panic. Leaping on the treas
urer's desk, with flashing eyes he faced
the white faced, excited crowd, and,
fiinging q roll of money down, he cried:
"Come on! We are ready to pay.
Come on! Do you think we would
waste our time on a broken bank"
Instantly the panic ceased. Judge
Parker had saved the day. The depos-
itors departed, and only II per cent OF
them drew out their money. That
saved the Ulster County Savings insti-
tuition, which has since worked out OF
its difficulties.
The general term Of the supreme
court and the court Of appeals both
sustained Judge Parker's novel plan as
sound in law. The judge never rested
till the thieving treasurer and assistant
treasurer were sent to the state prison,
where they both died:
After awhile Judge Parker was ask
ed to become president Of the bank.
He declared that he would only accept
the position on condition that the sal
airy should be abolished. This was
agreed to, and he was elected presi-
dent. He did not retire until the de-
posits of the bank were several hum
dred thousand dollars greater than
they were before its doors were closed.
The rescue of this savings bank and
its depositors Is the achievement OF
which Judge Parker is proudest. 1t is
the most stirring incident of his pri-
vate life.