The sun., 1908-01-31
EXAMINING SULLIVAN BANKS.
He Proposes to Retlre-HIS Remarkable
Rise rs a Banker.


-'- Whether or not the Mechanics and
Traders Bank will be put into the hands
Of receiver or will be permitted TO resume
business. as President David A. Sullivan
and some OF its officers hope it will. will
depend on the result Of the examination
which was begun yesterday by the State
banking examiners.
Clark Williams, State Bank Superintend-
ent, came down from Albany to take charge
Of the examination. which he slid will take
At least three days, owing to the number
Of branches the bank has. Ten Of thess
are in Brooklyn, the most important there
being the Union Bank. II the con Iition
Of the bank and it's branches Is satis'ac-
tory it will be left to the officers to decide
whether or not they want to resume busi-
ness or wind up its affairs. Otherwise the
matter will be referred to the Attorney
General. who will apply for a temporary
receiver.
Rumors that a number OF large loans to
directors and friends OF directors are out
have been current for some time. Officers
Q! the bank admitted yesterday that there
was one loan of $4,000 to E. r. Thomas,
made before he was eliminatei from the
bank last October. There is another loan
VI eoOOtoAo W Il n AAGAAA1C AVsJ AOAElb
were made with the me. ins tuition on
Broadway. What loans haye Deen made
through the Brooklyn branches is yet to
be brought out.
President David A. Sullivan. who re-
maineI yesterday at the Union Bank in
Brooklyn, where he has been in the habit
of making his headquarters. gave out a
statement in the afternoon. declaring that
-, - ~ k,
retire from the management. This was
his statement:
Mr.NSulHvan stated 20 the press to-day
that the bank Is absolutely solvent and de-
poeitors will be paid in full that he will de-
vote all his time and attention 20 the work
Of rehabilitAting the bank and bringing about
q resum ptiOn OF business. and that alter this
has been accomplished he will retire from
the management Of the bank. as he feels
that. not having pilOted the institution through
the present storm. success may be better
assured under a new management anl
that he urges all depositors and friends OF
the bank to cooperate with the movement
60 reopen the bank.
The closing Of the Mechanics and Traders
and Mr.. Sullivan's announcement that he
would retire called attention to the re-
markable rise he has had as a banker. Six
years ago Mr.. Sullivan was a lawyer with
a small Office at 800 Broadway. He be-
came a director in the Stuyvesant Bank a
BROOKLYN. started that year and then be-
came president OF It. and gave up his law
business. Then he started the Atlantic
Bank and got control OF the Pioneer Bank
making them branches OF the SnIyvesant
Bank. Following this he and his friends
bought control OF the Home Bank then
the Union Bank and then the Peoples
Bank. all OF which were at length merged
under the name Of the Union Bank Of Brook
lyn. Mr.. Sullivan's friends IN these enter
prises included ex-SheriH William J. But
Ting. WilIian 9. pamrOn and James N.
Brown.
Mr.. Sullivan was ambitious to become
the head ofa Clearing House bank and bring
all Of his Brooklyn institutions 10. IL was
said yesterday that at the time he and his
associates secured the control OF the Me-
chanics and Traders they paid Is per cent.
more for the stock than the price which
small blocks had brought in the market.
This was in December. 1908. The Thomases
and HeinZ0 remained in the bank as
directors.
Il was brought out in the report OF the
temporary receiver Of the Hamilton Bank
that Mr.. Hetnze had borrowed from the
Mechanics and Traders sSeS.s1 on Oc-
tober II. This was at the time OF the United
Copper furry. The fact OF this loan came
out then because Mr.. Heinze also owed
the hamilton. and the Hamilton as part
Of the security. II appeared. was 70 have
whatever excess there was in the collateral
deposited with the Mechanics and Traders
On the demand Of the Hamilton's receiver