New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-07
CLOSES A STATE BANK
MIR. Cheney Finds Poor Loans at
European-American..
DEPosIToRS TO GET ALL
State Banking Department to
Hurry the Liquidation e.
100000 Institution.

49, Rank 6 small state institution co4i-s
,,.s-ess at No. IS Greenwich street BAD
-.rs inherited. according 70 the of11cers'
<-o-~ z former management were resI'of'-
.,f,e for the closing Of the bank. whioh mas
been il more or less difficulty since Il was
organized in September, 1901
r. state Banking Department has been
watching the institution for The last TWO
r.aeks and OF Friday Superintendent Cfle-
-,ev had : special examination made which
showed that the bank had lot o. uncof-
ractirle Aoans He decided that in the IN
-s-ae- ~ The denosirors the safest thing TO
DO was 70 clese It
The bzng has capital Of 100000 and
Ss-,os,-s Of 500 GG0 L had a book surplus,
according 70 its last published statement
-,-,e "a 1919. OF only $40 500 When = was
Organized It's su-Tlus was given as Soe'ooo-
y : statement given out after the BANK
80 Ie7a-tr7e-7t had taken chaTge' super
5nte-denr Cheney said:
..Tosses incurred through improvement
loans. which. when payment was pressed
--ovea unoonectfble, placed the bank II
a. ursound and unsafe condition TO trans
er- the business for which Il was organ
I'D as he efforts Of the management 10
secure additional cash capital or FUNDS DID
,o+ --ove successful. the department oe-
-.---i-a5 70 protect the public by taking
-La-re Of the banks affairs and erecring
IS prompt Z liquidation as possible"
pepositors TO Get All.
silas A. Stafford. one Of the examiners IN
~ Ranking Department. was appointed Z
s-,ecsal deputy superintendent Of banks by
1ra-i1-endenr Cheney. 10 take charge OF
ne institution and assist in the liquidation
e1-7e-inter6ent Cheney would not add
e~z--rirg 70 his written statement, but Il
vas learned that so far nothing has turned
N 70 show thar there Was anything ITTes-
---a- in TIE loans OF the bank Ernest r
Fckiev. q Nc 3 Exchange Place, counsel
for the bank said that the Institution vas
entirely solvent and that all the dePositers
would Dc paid II full and the bank reor-
carried. The present interests, ne SAID
ACQUIRED control Of the hank in May from
nc Sherman Security Germany. Of No. 165
Proa5va,. with the Intention O. reorsan!z-
ing I ana changing It's 1aT2e 10 the Sc
c,.r5ry Bank I vas also proposed %. in
crease The capital 70 100000 and the sur
plus Z 500, 600. he declared
-t%c-.5tv in collecting loans amounting
= about S-00. 600. which the preceding man
zaerner1 had negotiated, he added, had de-
Ia-e6 matters tur with q few days delay
c- ne part q the Banking Department he
thought the bank would have pulled
through al right. as about 5000 Of these
loans had already been called in He rad
10 faux u find with the action OF Super
t~-e-5er- Cheney in taking charge Of the
institution. however which he believed
would rather help the proposed reorganiza-
ZION than otherwise
Charles <. Mann, vice-presidenI and act
ing head Of the bank. also blamed the for
-ne- management for the banks troubles.
He said
TIE loans upon which losses have been
incurred were the result Of the former
management the present management hav-
ing been in charge for only about three
months. Al the tine the present manage
r1ent took charge there were rediscounts Of
nearly S-93.c1a. and with the existing con-
6lrions OF Tire money market II has been
found irnpracticable 70 care for the re-
discounts as they came due. In my iudg-
.rent. the bank will reorganize on much
more solid basis
Presidents Change Often.
The European-American Bank when il
was organized took over the foreign bust
ness Of Frank Zotu & Co. bankers. Of No
11s Greenwich street, and announced that
Il would conhne its attention TO this de-
3
Sherwood Dunn. who was said in the Of
fc.al announcement 70 be an experienced
banker vas elected president. Frank
Zo-ti and Charles : Boyd, formerly state
Superintendent Of Public Works, were
elected vice presidents, and S. 4. Knolhoff
formerly connected with the Irving Ma
-ional Bank. wa selected as cashier. IN
he directorate, IN addition 70 the presi-
dent and vice-presideRts, were Edwin 2.
Graves president OF the First National
Bank OF BeIleville. y !: Chester Glass.
vIce-president Of the Mercantile National
Bank % New York. T. y Jarvis. vice
president Of the Lehigh Valley Railroad
Company, William Hanhart, president Of
-ne Bankers Life Insurance Company; H
:. Snyder. vicc-president OF the Bethlehem
Steel Company. George " Loft and others.
That al was not harmony IN the man
ase1nent OF the bank was shown by the
numerous changes II the officers and d.
rect0rs which took place. there having been
as many as four presidents I'D 10 last May
when the new interests took charge. The
last vas :. Arthur Hilton. The directorate
a this tine was composed Of Mr.. Hilton.
Lewis !, Parker. who was vice-presIdent
and cashier. George E. De Camp. Joseph
s Mack. R. L Pees James H. Spencer.
----4DAi r NClIell- Lewis Nixon ana j W
SUTbrug
When the new interests assumed control
rhey elected the following directors: George
u Brooks Allen D. Converse. Herman ?.
Clcorr 4 Durand Cheever and c c Mann.
OF the old directors Messrs. Spencer, Parker
and De Camp remained On the board M
Parker resigned Z few weeks ago Z Is
satc that he was forced out as z result
q At a11davtt he made il the suit recently
Instituted against the New York Stock Ex-
charge and its members By The New York
Bank Note Company
Pending the election OF a permanent
president il was made known that M
Mann, who had been elected vice-presi-
cent would De in charge OF the bank.
William Graf was elected cashier and
George z Han was appointed assistant
cashier oy TIC new controlling interests
afc t1ese nlel Here in charge Of the bank
1-IsE Superintendent Cheney closed rha
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