The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-08-07
LITTLE DOWNTOWN BANK SHUT
BiNk DEPtRTHENT TNTH iRGE
90 THE 81 ROPE IN-luERIG
lnsii--rvtisn 90 . Former management ~
Watkins Leans t.Nrn - the sausr ef
IT. BmbaTrassrrnt The Nlre-I'rrsl-
dent Thinks That o. WuI nrorzaRIIr.


IL Imbarras~mrnt The NIre-I'resl-
dent Thinks mat o. utn urorzaRIIr.
The European American Rank. which
has had a varied career ~ Day md Green
wiCh streets EinC" IT, &c gan ilatIun, IN
1877 WINS closed Yesterday morning hv
the stat" RankinR Department. u -
not large institution and ia" weight
81 a TumheT of loans which were not
paid on time was too great IN the opinion
Of Supt n cheney o. warrant a Cuntin'
uanc" Of the business. az least Tor the pres
ent The officials ~ the bank ham" 81
former management for unwts" loans
IL IL not suggested that anything but
indi-cretion In N n respect was T"si'"n~l-
bile Tor the difficulties
Frank Zotti the Croatian banker who
got into trouble two years ago. when y
WINS said thar he had appropriated funds
that his Cpuntrymsu brought to hun,
was one ~ those Interested m forming
the European american Rank II was
20 ge' his foreign sNChanG" business
that he was put upon IN" directorate.
The bank had capital Of sioo on A.
tn" time - It's last published statement,
juno % last. the books showed a surplus
OF only SO 81 lite deposits were saOi coo.
Al the Banking DEPARTMENT thus statement
was issued yesterday
Tho SUperin' sndru' 81 Ranks this morn
ing took possession Of the European
American Rank. q small institution situated
At the noi'N"l~. 'orner OF hey and Green
uicE s's"oi- IA 'hl- CITY Th.- bank was
organIud IN ~. aud had "a ,apital oi
500 90 and book surplu, az "a. time Of
ts last published stat cm"nr. June 49, 1910,
n 10
but 1901 .Oso losses injured through im
provident loans. which when payment was
pressed proved un,oli'- .iiblr. placed tho
bank In an unSnund and unsaf" condition
10 transact the business f"r which u was
organized
A. the efor', OF Tho management 30 So
sure additional ash capital or funds did
not prove successful. the department
de- ermined - protey' the publ, hy taking
charge of the banks affair. and rnrotin.
a. prompt liquidation a. possible
The superintendent appointed Slaz \
Sanford, one OF IN" examiners IN IN" Rank /
INK Department. a spe, ial Deputy Superln- /
tendent % Banks - agent 20 assist IA the /
liquidation
Woe President 4. &. Mann 81 the bank /
had this to say about the difficulties into /
which the institution had l--en put.
The loans upon which s-@S have been |
incurred We're the result 81 TIE former /
mana xsment 'he present mana cement I
having been IN charge for oI,ly about .
three months. Al IN" tim" IN" present .
mana cement took charge there were re-
discounts 81 nearly sSp.OOo aud with the
existing conditions IA the money market
u was found IVpractIcable 20 car" for
the redisCounts a. they cam" due Ia
my udgn.nt the TANK " an reorR antZe on
n much moro solid hasl
The affair, II this institution attracted
the attention 81 a." Banking Department
about 'No weeks ago Weekly reports
un all the bauN- under Us supervision
are sent To ~" Department and one 81
these seemed - Indicate that "A more care
full examination would not ~ supeTfuous
IA thIs CaEe. TN FRIDAY a special inquiry
wac made. with the result that the officials
were ordered not 20 open their doors for
business Yesterday The SIecial deDuty
took charge 81 the mail yesterday and ~
looking after thls 10 ss.' that such deposits
~ were sent ~ were properly aiken care
Of he was unable To make a thorough 'N-
animation
In spite - its name ~" European
American Rank dp"- little foreign business
80 far aS could - learned Yesterday II
has issued letters IT credit. however.
The bulA 20 10 work has teen purely
commercial and has h''en limited for the
most part To- the acCe ptauCp Of deposits
from the markets ~ the ueIgh burhood
4 good many II these loans which could
not - Calltast o. Yesterday are lU the same
locality and although tn" amount - IN .
diVlduAl accounts Wa sad yesterday 10
he small the ntImt..r Of them was con
siderable
The chief ,orre-pondents pf the hank I
have bs>en th. Mercantile National Bank
and the Empire Trust Company Of New
York The hank - without "a president
There have been - cral presidents though .
sinca the organization when Iotti's bust
ne-s Of sending back money 20 the other .
sri" WAS one of the reasons for bringing
the bank into eNi-ten"" j Sherwood
Dunn wa the first president. IN September.
1876. and b" was replaced III" following
spring bv Charles = Bovd former state
Superintendent IT Pubic Works Next
Cane George , No, amp. president ~ th.
caldwell National Bank ut caldwell y j
and n" ~ Turn was Succeeded hy Erwin Y
Graves. president ~ tho F'r~t National
Bank ~ Rall"Nillc y n - understood
that under thes.. two presidents ther" wdS
some money directed toward tho ieNsiup-
mont ~ real estate m their towns and that
u wss not III" Kind ~ = loan business that
~ profitable
Last Nav wa announced that tho
name OF tho hank would - changed on
july 10 the security Bank and that m"
capital would o." increased from SI0n pH
tN S20rp and tho surplus from SJr,sG
10 tIIH UU ~ that tim. Mr. Mann took
control. and the oH.-' It T. res lsu' was
left oIan whIi. the directors looked
around for \ suitable man They haVcn''
found him vet Among tho new directors
who wen, IN with Nr Mann were " IN.
rant Cheavsr. G"org" Murray Brooks
Herman T. Ol~n't and u Converts
The directors who held over from tho
former management were James y MACK
James II Spencer. John " Surhrig
Louis A rarkor and George = Diet amp
J Arthur Hilton was the las' president
y " fcEl"y. counsel tor the hank
said Yesterday that q reorganization would
bc mad NJ once and that the institution
was perfectly solvent