New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-07-21
U1S AIR. MILLS THE ONLY OFFFNDERl

The sequel of the story Of the dedication Of
f. 6. Mills and the ruin of the Brooklyn Trust
Company, which was told exclusively in Sat
urday'5 TRIBUNE, detracts nothing further from
the character of the dead man. Possibly his
reputation may stand under the allegation of
having used $4,000 of other peoples money F.;
it cannot apparently, be relieved OF 1t. But
The charge that lie had committed suicide
a theory of which we early expressed our dis
beliefs now entirely dispelled, and Is not
likely to be again revived. The conditions OF
his life. the circumstances Of his death, the
fact that the day on which he succumbed to
the tide held out to him fair promises OF relief
from his embarras sments, all unite to estab-
lsh as incorrect and unjust the rumOr which
prevailed that he had died by his own act.
But these new developments, which restore
in some degree the standing of the dead man,
are less sparng of the regulations of his liy-
ING associates. We have no wish to arraign
any Of them unnecessarily; but the facts as
told elsewhere are too serious and too sus-
pcious to be disregarded; and the interests Of
hundreds of depositors require that some notice
be taken of the other Directors of the broken
bank. All is not yet told; we trust something
extenuating may yet be recorded. Something
still of the ruin, which we fear
is complete, is bunglingly concealed by
the Directors; but enough is known
to indicate that Mr.. Mills was not the only
criminally careless officer of the institution.
The confusion surrounding the sudden suspen-
sion Of the bank does not serve to conceal the
painful truth that the Brooklyn Trust Com
pany was run on the same tactics which ruined
the Bowling Green Bank of Henry Smith and
the Guardian of William M. Tweed. These
were banks of deposit, which, with fine array
of wealthy directors who held little stock,
lured deposits to their vaults for the benefit
of the officers who handled them. In palmer
terms, the Brooklyn Trust, like the Bowling
Green and Guardian, was " Ring bank"
Let us be little more explicit. Smith and
Tweed, getting control Of the charters of the
banks named, associated with themselves men
of character, standing and wealth, and went
to banking. 1t was found at the closing up Of
the institutions that themselves and associates
were their own best customers and that the
losses which ruined the banks were their own
private losses or stealings. Judge Alexander
McCue had control of the charter of the
Brooklyn Trust Company, and he associated
with himself and partner, VIM. c. Kingsley,
whole family of wealthy men of stand
ing, and put Mr.. Mills, their representa-
tive, and Mr.. Rodman, his own, in
the responsible places Of President and
Secretary. Here it appears they mutually
agreed to lend each other whatever funds of
the bank they needed. The relatives of Mr..
Mills gave character TO the bank, and their
names drew depOsitors, whom Judge McCuo
and William c. Kingsley could never have
induced 10 invest, TO the amount Of from
$2,OOO.OOO to $4,5OO,OO0. Mr. McCue and Mr.
Kingsley could, however, influence the depos-
its Of city and county funds and of these
they had in the Trust Company's vaults, at the
time Of the suspension, over half million dol
lars, or about one-ffth of the total deposits
Of city funds in fourteen local banks. These
public funds they obtained for the bank Mt
per cent, and used them, it seems 60 buy
worthless bonds. Yet all tho time
that they were trading with this amount
Of private and public deposits OF the reputa-
ton of the Lows, Piercponts, James +. Fish,
A. NJ. White, and others, it appears that
McCue and Kingsley wcrc the largest stocll-
holders, and that Mr. Mills himself held only