The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-25
DENIES RICHARDS'S
RIGHT TO SEIZE BANK
Attorney to Whom Schwenk
Has Assigned Questions Law
Signed in April.
ACCEPTED AS CHALLENGE
Superintendent Directs Judge
Mahoney to Oppose Plea
for Receiver.
AS CHALLENGE

who on Thursday evening took over the
private bank of A. Grochovski & Co.
owned by Ladislaus w. schwenk. was
served yesterday afternoon with a certi-
fed copy OF an assignment made by
Schwenk in this city for the benefit Of
his creditors 10 Robert T. Lewis OF Rosen-
berg. Lewis Ball. lawyers at 100 Broad
way. lie was also notified that an in
voluntary petition in bankruptcy against
Schwenk had been filed In the United
States District Court. Brooklyn. and that
an order. returnable next Monday morn
ing, had been granted directing the sup
erintendent, Schwenk and tho assignee to
show cause why receiver should not
be appointed
Mr. Richards accepted tho proceedings
as n challenge Of tho right Of his depart
ment TO liquidate tho tangled affairs OF
| the banking concern ard directed Judge
jeremiah 4. Mahonev 10 annear for the
department In the courts.
! MIR Lewis said schwents liabilities are
| approximately $500. 900. With nominal as-
sets OF probably $500, 900. depending upon
| the amount that can be realized from
Schwenk's real estate, In which no dealt
/ largely. Mr.. Lewis was OF the oninon
that the Superintendent Of Banks did not
have any legal right to take possession
! OF the bank.
The closing OF the concerns branch
banking houses AZ 29i BEDFORD avenue,
williamsburg at Avenue A ard Seventh
street. this city, and on the Rockaway
! road, jamaica created intense excite
| nent vmong ito dcpo5tors, composed
mainly OF Poles and slavs.
/ All day shifting crowd gathered In
front NJ the bank IN this cltv. The more
h,fl hnft
and gave way 20 lamentation At 10
O'Clock fully 1000 men and women elbowed
one another, vered into the bank win
dows. asked questions, clcnchcd fists ana
used handkerchiefs cant Dennis SweeuN
OF the Ffth street station hid
coodlv force Of mon on hand and the po-
ilcemen prevented any trouble hv assur-
ing the worrying ones that their Interests
Wound be safe I'm tho hands Of tho hank'n;
department. All were advised 10 come
| around again IN a week or ten DAYS ana
many went away satisfied
Mrs Mary DunatI ~ 299 Second street
was among the saddost In the sad throng
She had deposited $500 In the hank. and
not having any money IN tho house went
To- the bank with her three small children
~ cash a small check She buried her
face IN her apron and wepi bitterly when
she assured herself that IN" hink door
was really locked
Late in tho afternoon n pale youns
woman. Just discharged from a hospital
after a long and serious Illness. edged into
tho crowd and fell IN faint on learning
that all her savings were tied up In the
bank.
cant. Sweeny heard many deposition.
say that the Rev. John H. Strz'lrckl
priest Of 81. Stanislaus T.. VI Church AZ
loq Seventh street. a brother Of Jul'ar
Strzelockl an employee ~ the bank, h9'
urged his parishiou.rs To open accounts
In the bank. The captain called upon th'
priest 10 make speech. telling the de-
po-itprs to 90 quietly 10 their homes and
wait until the banking department htc
finished It's investigation. The priest de-
MED he had advised anybody to deposit if
tho bank and declined to appear hDfor'
tho uneasy crowd.
Under the new law signed IN April trans
ferring the control of private banks iron
tho state Comptroller 10 the supcr!nt"nd
ont ~ banks, nluety-oue bankers. of whom
seventy-one are In Greater Sew York
have made application FOR authorization
to do business. or this number. sixty
have or are undergoing examination
Schwenk was among those who Med april
cations FOR n permit. and II was the resul
OF the Official investigation into his method
that caused the superintendent t. dom
him q permit and take over his business
Bank examiners LEFT the East side nanl
late IN the afternoon with a satchel con
tanning $4,000 in cash and s"ouritc
while the crowd looked on with huusr'
eyes
Srhwonk dd not 70 20 his banking
. house In Williamsburg Yesterday and call
. ers at his home in Flushing were toll
that he was not IN. HIS Whercthnut
s was not disclosed by his relatives %
friends