The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-21
THE BROOKLYN TRUST COMPANY.
Further Developments in the Mills
Defalcation Case.
Statement Of Prominent 0nicisl Of the csmpa-
ny-Ths Directors Responsible for tho Ad-
vances on tho Worthless sscurities-A
Real Estate Agent Explains the
Cause Of the Trouble with
the Late President.

Tue defalcation OF the late Mr. Mills and the con-
sequent suspension OF the Brooklyn Trust Com
psny has cast deep gloom over the well-to-do
circles OF Brooklyn society. II was the topic OF
conversation by the crowds on their way from
church yesterday morning. IL will be seen by the
Interviews given below that further investigation
In this catastrophe II likely to lead to develop
ments that will show that the late President was
not quite 80 much to blame IS the nrst reports
would indicate, and that his troubles are but the
representative troubles OF In similar position
In life on both SIDES
STATEMENT OF ONE OF rHE BANK OFFICIALS
Yesterday reporter OF the HERALD had q con-
versation with one OF the bank oflicisls who was
In position to speak with authority and intelli-
gence - to the AFFAIRS OF the company He said
that great deal which had been written in refer.
ence to Mr.. Mills was untrue; that he had over
drawn his account was correct; but that be had
negotiated the loan for the Georgia State bonds.
known as the Bullock bonds, was not true. This
was done by the Executive Committee and IL
would so be shown. The amount OF the loan was
100000 on $ls30OO. The loans on the New Haven,
Midjlet0wn and Wllllmanuc Road was made
loan had been examined by them from time to
time. The directors mad never examined the &C
counts Of the company since 1t started in 1858.
Tho directors took It Tor granted that Mr.. Mills was
honest and the accounts were all correct.
They had monthly surplus OF $3.50, and there
was no necessity Tor suspension OF the bank.
they will continue the investigation to-day II they
have quorum Of the directors, but most OF the
gentlemen are now out OF town.
In reference to Mr.. kodman, the Secretary, he
SAID that gentleman had taken loan OF $34 600 on
$4,000 and had gwen good collateral security IN
$4,000 worth OF these bonds and they were
worth o5 cents on 81. Shortly before Mr.. Mills
death he had completed and signed a contract by
which the company was TO be relieved OF the bonds
and stock OF the Georgia Railroad at fifty cents on
sns %Sa ro.s cSss Par on the first mort
The company could nave gone on paying the de-
post0rs had it not been for the action Of the Mas
company, and even alter making the ciesrings
they HAD lett on hand $64, 900.
The gentleman stated that shortly before Mr. Mills
was drowned he made cOdicil to his WILL but
what It contained ne could not tell.
AN INTERVIEW WITH PROMINENT BROOKLYN REAL
ESTATE AGENT
reporter OF the HERALD met yesterday q
prominent Brooklyn real estate agent and owner
n sni @ might Know some
thing Of the late Mr.. Mills affairs, and therefore
entered into conversation with him. The gentle
man did not desire MS name to be published, and
his desire has been respected. 1t was manifest
throughout the conversation hat he possessed full
very feelngy IN the whole matter, and, as viii be
seen. for very good reasons.
no SAID the repore land IS made more sad
BY the last news which seems 70 point very clearly
II never had any doubt on my mind replied
the gentleman 'rr0m the time first heard it, that
he had committed suicide. ! knew Mr. Mills init
ture that drove him to It. He could not bear up
against these troubles, and he went down with
them. l am not surprised at 1t, either"
"You are q real estate man and know q good
you think Mr.: Mills displayed sad lack Of judg
My dear sir, it is very easy to be wise after the
event. The Prospect Park property and the Clin-
ton street property spoken Of look ks that TO-
cation OF that property. He did not build either
OF those properties or any Of the property he
men In Brooklyn to-day. He got into the
hands OF gang OF builders; the Prospect Park
houses were built BY Brooklyn building firm, well
tain point in the building OF houses, and then they
stop, pretend they cannot 60 on without more
vanced to finish them, more is obliged to be given
them, and so 1t goes on and the lender Is COM
PEELED to submit to IT. for what can you do with an
.Was the Clinton street property in the same
condition as THAR" asked the reporter.
quentiy had talks with Mr.. Mills about it. speak
feelingiy because have been in the same position;
only where spent cents he spent dollars, There
capitalists in this way. Mr.. Mills is not the first
'But surely, inquired the reporter, 'his friends
Or the directors Of the company would have pro-
teCto0 MIN 70 the extcnL OF $l0O,
'They say they would now; bat know they
would not. don't care winch horn OF the dilemma
they take. II they knew Of the position Of Mr..
Mills they would have assisted him II they did not
know it they ought to have known It. No man can
persuade me that they did not know OF his over
drawn account Of 4140,0o0 No; my own impression
10 that they lett him to himself 70 do the best he
could and 1t was the knowledge Of that that drove
him to destruction"
"But Mr.. Nils had wealthy relatives" suggested
the reporter, 10 whom $4,000 was not . very
ayes, Mr.. A. A. Low was his brother-in-law. Mr..
Mills was drowned ON Tuesday and Mr.. Low sailed
for Europe on Wednesday Mr. Low said that he
had purchased his ticket and therefore he must
sail. I don't know whether It ever occurred to
him that his ticket was good BY any steamer OF the
same line for twelve months. But suppOsing 1t did
not occur to him, the sacrifice OF ticket under the
circumstances would not be so great loss. The fact
H. Sir, there Ii very little cure for financial difi
rule, are more willing to keep him down than help
'Mr. Mills was man to make friends rather than
otherwise, and his reputation stood very high
among his fellow citizens, did 1t nots" asked the
reporter.
soul a. any man you ever met. He had NO more
intention OF robbing the Trust Company than had.
He got into tight place and needed help, and the
help was refused. That is my opinion Of the whole
matter. and I think have very good reason for
what say, too"
AFTER general conversation on similar cases in
past years IN Brooklyn the reporter wished the
real estate agent "good day."
WAS 1T A MURDER7