New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-20
Washington Heights Institute
LiquidateS and Pays in Full.
QUEER DEAL CAUSE OF IT
u. S. District Attorney Had
Started an Investigation and
Directors Took Fright.

The Audubon National Bank at Broad
wav and 14sd street. went into voluntary
liauidation yesterday. while IT was pay
ing institution. had more than enough cash
on hand to pay Off all depositors and had
lost not dollar through the TRANSACTIONS
that led to the liquidation. William Rei-
mers. the cashier of the bank VINO vas
Yesterday elected president. was vitality In
terested in the panic Of 1901 az paying teier
of the Washington Heights branch of the
Hamilton Bank which failed In the panic
He has not forgotten his experiences at
that time They REQUIRED to him cons'an'-
" Yesterday and have been before his eyes
increasingly since June %. when no nrst
foresaw the possibility Of trouble Tor IN"
Audubon National Bank. II was chienY
due to his arguments that the board OF d.
rectors decided yesterday OF the hquida-
tion Of the bank.
we saw that certain dissensions IN inc
bank might become public property ana
cause run on tho bank said MT. h'i-
mers. we decided To be first I'm the heIu
and liquidate before the run. The pahK
may be reorganized later with different
set of officers
Charles D. Hanna. the national bank eX-
aminer for this district. made the follow
ing statement showing the causes for the
liquidation.
In making an examination into the Audu-
hon National Bank on June - the natlohai
bank examiner found that on June "
David s. Mills. who AT that u,le e va P'Th
ident of the bank, had used $3.50 OF me
banks funds to buy 3ii shares OF the
banks own stock. $500
The directors were notified and steps
taken TO collect enough money from me
hanks loans to enable il to liqudatc us
deposits This having been accomphShed'
the directors recommended that the stock
holders vote to go into voluntary hqulda-
ton. Accordingly meeting 0i une % S'o'"
Tho payment of depoSitors began TO-DAY.
and II is expected that All WIZ pc pdln vi,
this week. The total deposits OF tne s p raaS
were ONLY 1900 600, and the bank has caSh
enough on hand to pay out as fast as us
checks are presented.
Bought Out Entire Board.
David S. Mills. who is mentioned in Mr..
Hanna's statement as having used $3.50 or
the banks funds TO buy A4 shares OF us
own stock, organized the bank IN NoNe"-
her. 1909. with William Reimers. VINO was
then in the 1l6th street branch OF me
Mutual Alliance company. The bank was
capitalized at $4,000. divided into TWO
thousand shares of stock. Mills held 10
shares az the stock at the time OF the or
ganization and Reimers ten shares The
Mills holdings are said by Reimers To
amount now to approximately 200 shares.
all except the original 40 shares having
heen acquired since February last The
remaining stock is divided among li5 STOCK
holders eleven OF whom are directors. own
ing among them 34i shares Of the stock or
the bank.
on June 10 according 10 Reimers. there
was a meeting of the directors. at when
Mills resigned as president and a pur-
chaser appeared for the S44 shares OF the
stock owned by the various directors
Reimers says that the directors hdd beeh
approached separately before this and OPP
lions taken on their stock at prices vary
ing from s125 10 $50 share. though the
stock was then quoted at 10. At the meet
ing on June 10 the purchaser took over the
stock OF the directors. paying them IN cash.
and announced himself as the new owner OF
the bank. Reimers says that Mills did not
sell any OF his stock, but that the entire
hoard Of directors, including himself, sold
out
Since February last, fttlHltl sag - HN 1880
noticed on the books at various times loans
which did not seem satisfactory TO hlil'
After the sale of the stock on June 10 ne
consented to remain as cashier of the oahK
until July Is, and busied himself WIN
looking into the banks loans. ON June %
he satisfied himself that there was a large
amount in improper loans on the books OF
the bank and acquainted several OF the d.
rectors with his suspicious.
On June 20 he consulted with Mr.. Hanna
the national bank examiner. and after Mr.
Hanna had made a personal investigation
of the hank the directors went to the
purchaser Of their stock. gave him back
his money and demanded their stock. the
stock was returned and payment OF the OBJ
iectionable loans was then demanded ana
made. -, , l.,
United States Attorney Wise has SSeen IN
vestigating the facts in the case tor
week 10 learn II any OF the Oincefs nave
violated the national banking law.