Year: 1875

INTERESTING DEvELoPNENTs-ovER SIXTY
THOUSAND DOLLARS AnssING-wHr THE
TRUSTEES HAD SPECIAL LAW PASSED
AND WHAT IT CONTAINED.


Mr. : H Hurd, the receiver Of the Third Avenue
Savings Bank, stl busly investigating The affairs oi
this suspended institution He yesterday, in answer
to the inquiries made Of him By HERALD reporter,
stated that in his judgment far be had been abc
arrive at the condition OF In the short
animation he had made the depositors cannot hope
secure dividend on the amount OF their individual
deposits Of than from twentyhv TO thirty cents
on the dollar. The books, he said, show, beyond
question, that there has for years systematic
misrepresentation of the condition Of the bank,
II nothing worse He could not he said,
nnd any clean and true statement OF the true facts
since the year 1864 Since that time its annual
statements appear to have been cooked up other
wise manipulated, show a surplus where there
was an actual deficiency. He had he said, noticed,
making an examination OF the books, that IN Septem.
Der last the OF 500 6l had been charged profit
and loss on the general ledger. What this item
sisted of how the loss had accrued he had pres
ent been unable to discover he intended get
the bottom facts in the Accompanying the en-
try, which was made by Mr. Carman, the latc
| secretary and receiver, a note, say.
/ Ing that from Information he had obtained
from the clerks he had found that there discrep
ancy or error, amounting 70 the sum named of which
no entry had been made any satisfactory
planauon arrived at, but which they had known OF
| for years


Mr.. Hurd has examined the books from 1864 TO the
end OF 1866 and back 1875 to 1871 without dis
covering where the fault is 1t must therefore, be
found between the years 1866 and 1871 The accounts
Tor these years are now being gone through Perhaps
some OF the former trustees could help the receiver
explain this little item, we'll others of ques
tionable character to which reference has already
been made in the HERALD. The bond given
by the trustees for $4,000, which was down
ffQ
OF loss for it has been ascertaned that several
OF the parties who signed this either
failed or are on the verge OF bankruptcy. The es-
mated amount that be collected on this bond which
is several one and not joint and several the
part of the trustees who subscribed TO IT, is $75 00O
Notice in a legal form will at be given the trus-
tees whose names this bond pay up the
amount for which they are bound. The for which
the stocks and bonds held by the bank would sell
the would be probably about SIS, 600 Out OF
this to pay the taxes and assessments
which have accumulated on the property belonging 10
the bank, amounting TO nearly 5000


FACT


One singular fact which has not hitherto been made
public is that the trustees in 1867 secured the passage
special law by which they enabled exercise
almost unlimited control OF the funds deposited with
them without any regard their charter the gem
era savings banks laws previously passed For the in
formation or the deposors ani others concerned the
sections OF this law bearing particularly on this pont


Chapter 7sS Of the Laws Of the State of New York,
passed April rs 1861 entitled An in relation to the
Third Avenue Savings Bank OF the city of New York,
provides as follows-


l. II shall lawful for Third Avenue Saw
ings the funds money received deposit
upon stocks Of the State Of New York
in which IS BY the laws 81 the State applicable to savings
banks savings institutions permitted or directed TO invest
IN Al Of loans the public stocks . or
Of the city and county Of New York under the provisions
margin per upon the cash market value
Of the said stocks or securities at the time 81 q
or permitted 70 remain thereon for larger amount
may upon margin Of twenty-five per upon


es AZ he time Of makns such Loan thereon and no loan
shall be made permitted TO remain thereon Tor larger
Tho trustees Of the said bank at their derc
of deposits the current payments OF
e o o Il S Ss %
trustees may from time TO time direct


curty from the officers Of the bank and them such
compensate for their services deem proper


II will be from perusal of the above sections
that although section conforms TO the general laws OF
1858 and 1855 which expressly deGne that the funds
of savings banks shall be loaned only United States
stocks stocks guaranteed by States OF the Union
bonds or this State (New YORK;
authorized by the Legislature TO issue such stock
margin oil ten per cent yet section Immediately
does away with the restriction and gives free scope for
the Investment by the trustees OF the depositors'
money any kind OF security stocks they please
will be bv the italicized portions OF the section
above given The general Law also only allowed the rus
tees TO keep hand for immediate use twenty cent
of the whole Of the deposits directing that tha
remaining eighty per cent should be invested in secu
rites already delned Section of the law Of 1867 as
above gave the the right hold third OF
the whole amount OF deposits which at this time gave
them the pretty little OF about 81 600 600 which
they could invest as they dt any kind OF
rlty This resulted II Is said, IN the oanina
OF nearly half a million Atlantic Mail stock and
other equally risky securities In tact, the whole hts
tory Of the bank its removal from the old prem
under the Bulls Head Bank tends TO show that the
utmost reckessness prevailed the management and
that the dcpostors money frittered away and lost
in a dsgraceful manner The new bank building
put up without any necessity, ana the officers
paid large salaries Notwithstanding that necessity
existed for these cxtrayagancies while, as previously
stated the statements have for the past years been
cooked up to decisive the public and the depositors.