The evening world., 1910-12-31
HyDE'S SURET|ES
WON'T PAY LOSSES
NORTHERN BANK
Bonding Companies Say They
Are Not Responsible For
the Deposits.
DEPUTY SHIFTS BLAME.
Walsh Declares PrendergaSt
Didn't Tell Him Any
thing was Wrong.
DEPUTY SHIFTS BLAME.

II wac learned to-day that should the
Northern Bank he uua':c 80 make good
20 the city OF he sGO."o deposit In ex-
cess N It's bond OF $1,000, the surety
companies OF city Chamberlain tiyie's
bond for $1,000 will oppose any attempt
TO recover from them.
These are the Peoples. National and
Title Guaranty C~ompanlcs. and each Is
on Mr.. IIyde's bond for 500. 90.
Assistant Treasurer Teegan OF the
Peoples Surety Company voiced the
sentiments of the other companies when
he declared that his company could not
be held responsible. He said that the
bond covered. among other contin-
g%cncies. faithful performance"
There was no charge that the City
Chamberlain had not faithfully per-
formed his duties in the matter of de-
posting city moneys. There is no
charge of a defalcation In the office OF
tho city Chamberlain.
Not Personally Liable.
Mr.. Tcegan said NJ. Hyde could not
be held personally liable.
The person to whom the city may look
for recovery, Nj. Tccgan said, Is tie
water REGISTER Of the BrolN, who made
the deposit Ia excess %. the bond. The
water Register knew by virtue of his
Office that the hond given 10y the bank
was for only sl5o,O0o. and should have
known whether a deposit 10y him ex-
ceeded the bond amount
The New York manager Of the Title
Guaranty Surety Company. whose ho:ne
| ,ffira ia NJ Garantnn pa sails
I'VE are u solvent and responsible
concern and prepared at any time TO
meet any proper and legal demand. Un-
der the conditions of the bond we do
| not regard that we are liable IN the
ease OF the Northern Bank. We should
certainly oppose any attempt to re-
| cover from us. But the Northern
Bank deposit is not lost. We under
stand tina the bank VIII he able to pay
| 100 cents on the dollar when its affairs
are Strengthened out"
Statement by Hyde's Deputy.
Deputy Chamberlain Walsh issued the
following statement:
"The deposits were made in the
regular course of business by the
Bureau for the Collection Of Taxes
and the Water Registers Bureau.
bank was a regular depository
and these bureaus had been sending
their collections daily to 1t.
Last Thursday. when Comptroller
PrenderRast advised me to withdraw
$40, 900 OF the city's funds from the
Northern Bank OF New York. I asked
him IL there was anything wrong
Nt'ith Nha anE HI told ~ that
there was not. II Mr.. Prendergast
knew. at that time. that the bank
was not on a substantial basis he
should have informed me of the fact,
and then the proper steps could have
been taken not to have made the
s6o,0vO deposit. Certainly the two
bureaus which took In the money,
and also myself, not knowing that
there was anything wrong with the
bank, could not have been expected
to avoid the making of deposits.
A Rule Of the Office.
Even II the Comptroller had not
advised me to withdraw the $40, 900
on Thursday last ! would have done
so. anyhow. because It Is the prac-
tice IN the Chamberlain's office to
withdraw deposits of tho night be-
fore, because there Is daily need OF
the money. \ case In point Is the
Peoples Trust Company In Brook
Ign. from which ! withdrew one day
this week siO0. 900 at one time be-
cause We needed the money. This Is
n settled p %actise, and applied not
only TO the Northern Bank OF New
York, but to other city repositories
. 1T was not Mr.. Prendergast who
] told me that the Northern Bank OF
: New York had been closed. out l