Year: 1876

sented by persons claiming to be 'loyal" or
otherwise. 1t is high time to stop the whole
business. But we warn the democrats that
they run the greatest risk Of losing votes by
silence. 1t would be we'll for them if Cover
nor Tilden and all democratic candidates
for Congress should at once, and positively,
make answer to the above questions.


The Governor and the Bank super


intendent.


Some doubt seems to be cast upon the
power of the Governor to rid the State of an
incapable, unfaithful or negligent Superin-
tendent of the Bank Department. Both
the power and the duty of the Governor in
such case are clearly defined in the laws
relating to the subject. The statute govern
ing the Bank Department provides (sec-
ton p that the Superintendent and his
deputy "shall be in all respects subject to
the provisions of the sixth title of chapter
of the first part of the Revised Statutes, SO
far as the same may be applicable and
(section 81 that "the Superintendent of the
Bank Department shall possess all the
powers perform all the duties, and be sub
ject to all the obligations and penalties now
conferred by law upon the Comptroller of
this State, or to which the Comptroller is
subject in relation to banks" &c. Referring
to the Revised Statutes of the State of New
York we find in section SO of title 6, chapter
5, part l, that Secretary Of State, Comp
troller, Treasurer, Attorney General, State
Engineer and Surveyor Canal Commissioner
or State Prison Inspector may be removed by
the Senate, on the recommendation of the
Governor, for misconduct or malversation in
Office, if a majority of all the members
elected to the Senate concur therein" &C.; in
section 70, that ''the Governor may sus-
"during I'M investigation against said officer,
and may appoint suitable person to perform
the duties of the suspended officer dur
ing such suspension and in section 72,
that if such suspension shall occur when
the Senate is not in session then the Governor
.sshall convene the Senate in extra session
within thirty days thereafter for the purpose
of proceeding with the investigation Of such
charges"


The Governor, therefore, has the power to
suspend the Bank Superintendent for ssmis-
conduct or malversation in Office" during an
investigation, and to appoint u suitable per-
son to perform the duties of the suspended
officer during such suspension, but he must
convene the Senate in extra session to try the
charges within thirty days after the suspen-
sion shall have been made.


Governor Tilden may think it "inexpedi-
ent' to call an extra session Of the Senate to
try Mr.. Ellis, or he may think that the pres
ent Senate, with republican majority, might
refuse to remove the Bank Superintendent,
who is republican. But as the Governor
is sworn to see the laws faithfully executed
it is difficult to understand how he can con-
sclentiously conniye at their gross abuse and
at the .smisconduct" or "malversation" of
public officer on the plea of expediency. In
the case of the Third Avenue Bank the
proved facts are that in January, 1876 false
statement of tie banks condition was made
by two of the banks officers under oath. to
the Bank Department, showing the bank to
be solvent, with n clear surplus of seven





March an official Bank Examiner reported to
the department that this. sworn statement
was false and that the bank was insolyent over
two hundred thousand dollars without taking
into consideration the depreciation of its
real estate that Bank Superintendent Ellis.
with this information before him, allowed
the insolvent bank to continue its business
for six months longer and to increase the
number of its swindled victims and that
eventually he connived and assisted at the
appointment of one of the officers who had
sworn to the false January statement MS
receiver, thus enabling the latter to close
the doors and seize upon the securities and
records of the bank before the depositors
knew of its bankruptcy. This is one case
against Mr.. Ellis. If the Governor thinks
that the protection of two or three hundred
thousand poor depositors is not of sufficient
importance to warrant an extra session of
the Senate he may at least suspend the
Bank superintendent thirty days before the
next Legislature conyenes. But there is
another way to reach the Superintendent.
He may be, and ought to be, indicted by
grand jury for misdemeanor in office, and
on conviction of that offence he would for
felt his Office. Perhaps District Attorney
Phelps will attend to this feature of the
case.