New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-17
LIVELY MEETING
AT NASSAU BANK
The Tnsurgent Stockholders
Name Their Liquidating
Committee.
RECENT MERGER
EXPLAINED TO THEM
President Earl Tells How Irving
National Came to Absorb
Its Neighbor.

us lSCIknUOl'
IL was a determined body OF stockhold-
ers which met Yesterday in the old quar-
ters OF the National Nassau Bank, at
Beekman and Nassau SITS. 10 inquire into
the developments leading up to the merger
Of that institution with the Irving Ma
tional Bank. located in the Woolworth
Building. The meeting was called for the
purpose OF ratfying the merger agree
mcnt entered into on May between the
directors OF the two institutions and TO
appoint a committee TO liquidate the
! SO. 10000 assets OF the Nassau remaining
over and above the s14,900,0o0 assets trans
! fcrred to the Irving National in considera-
ton OF its assuming the deposit liabilities
Of the absorbed bank, amounting TO
100000.
J. F. Hitchcock, a paper merchant, of
$50 Broadway, and large stakeholder Of
the National Nassau, had previously sent
letter to the shareholders asking them
to be present for the purpose of electing
liquidating committee in opposition to the
committee of directors, which had been
recommended by the management OF the
bank. In its recommendation il was suG-
gcsted that each member OF this COM
mittee should receive as compensation for
his services 5000 year Jntil the work
OF liquidation had been completed.
The suggestion, which was put in the
form of resolution, was vigorously OPP
posed by the insurgent stockholders, who
offered another resolution that cepimit-
tee Of seven he chosen from their num-
Der. il being agreed that no charge would
be made for services. 4 vote on the two
resolutions showed that the insurgents had
won by large majority. The members
~ the liquidatinG committee chosen were
u. s. Ramsay, president OF the East River
Savings institution, chairman; Charles
Schwenler, Of the SchWenler Press:
William j. Klauberg, cutlery merchant;
Laurence II. Hendricks, vice-president
and director Of the National Nassau
Bank; Arthur c. Harris. also director;
J. +. Hitchcock, paper merchant, and
Theodore s. IIaght. president of the
American Hide and Leather Company.
The personnel Of this committee gave
the insurgents a clear majority Of five,
only two Of the committee recommended
by the bank having been elected These
were Mr.. Harris and Mr. Hendricks. The
other nominees were II. c. Miller, New
ton d. Alling and John Munro, all
directors.
In reviewing the developments leading
up 10 the merger with the Irving National
Bank Mr. Early told how Charles Starek,
National Bank Examiner for lower Man
haitian, had advised the National Nassau
bot In ~ III
not consent TO the payment OF the May
dividend. Mr.. Starek also wanted the
bank to charge off for bonds 81, 4e5, for
United States premiums $S,9ls, for de-
probation on bonds $1,000, for real estate
depreciations $4,000 for bad loans which
were outstanding 1881, making a total
of Sl3c,7S5. Mr.. Starek also claimed that
the Nassau bank had doubtful paper of
169,si4, leaving its capital impaired to
the extent OF about 500 900, according to
the Bank Examiners figures.
II told Mr.. Starek / could raise this
money if he would give us a little time"
said Mr.. Earl. Il asked him IL he would,
and he said yes / asked him for ten
days He said we must secure $4,000 by
a guarantee Of the directors satisfactory
to him, or raise it in cash. But he also
suggested the idea OF a merger with an
other bank.
! ~ majority Of the board of directors
was OF the opinion that the interests of
the stockholders Of this bank would be
best subserved by a consolidation CT its
. business with that Of the Irving National
bank, and by the immediate assumption by
the Irving Bank of the deposit liabilities
OF this bank, TO the end that the inter-
ests of the depositors and stockholders
might both be protected.
Il saw several of our large stockholders
and told them the exact situation, and
asked them il they would form a conf
mittec to raise money and reorganize the
bank. They said they would let me know
on Monday morning, May 8, 1914 In the
meantime many false statements about
/ the bank had been circulated. 1t was
stated that we had large amount OF
| paper which was not good, and some Of
/ the gentlemen changed their minds
about helping us. Then II was necessary
to act, and act Immediately, In order. TO
. preserve the goodwill OF the bank.
"The board Of directors doubted the
advisabilty of raising money and OF
/ continuing the bank under such con-
/ ditions. approaching as they did the fact
that il the semi-annual dividend, due
May ], was passed the effect would be
/ injurious TO the further business OF the
bank, and also because MIR Starek had
stated that he would be obliged to make
/ another examination in three months
Git Gao aQA A EaREE