New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-07
ANOTHER BANK ROBBED.
IT'S FORMER PRESIDENT INDICTED AND
ARRESTED.
CHARLES II. PINKHAM. JRS, FRAUDOLbNi
METHODS AS HEAD OF THE BANK OF
HARLEM-LOSs ABOUT $1,000

Yesterday in the Indictment ana arrest VI
Charles II. Pinkham, ir" at one u"c
the executive head of the Bank OF larIc"
There also were brought 10 light practices
by another man formerly connected WIN '''e nali,
agement which would be the basis OF criminal
action II he were not out OF the country Inc
bank, while suffering an impairment OF capi'al.
has been placed in a solvent condition, ana VIII
be consolidated with the Hamilton Bank De-
positors in the Bank of Harlem may rest assured
T. WAS declared Yesterday on competent authority.
that not the slightest danger OF loss exists, ana
the new consolidated bank, with board Of dlrec-
tors representing several millions OF dollars IN
wealth. will begin business next Tuesday
The discovery OF Pinkham's alleged frauds grew
ont Of the NEGOTIATIONS for the consolidation. Inc
two banks are State institutions, which occupy
officers in West One-hundred-and-tw y-hfth-st'.
rho Rank of Harlem at No. 2l5 and the Hamllton
Bank at No 27s. BY the loyal work or the dlfec-
tors of the Bank of Harlem and the vigor ana dis-
cretion of William p. st. John president OF the
Mercantile National Bank, the Bank OF harieih
was saved from collapse and several huhoreo
6epositors secured from possible loss. Inc neeo-
tiations for the consolidation of the TWO herieih
banks have been going on for more than moh,n
The Hamilton Bank appointed as committee OIL
EXPERTS to examine the affairs of the rank oil far
lem Charles B. Fosdiek president OF the Hice ana
leather National Bank. and Mr.. ST. John pres
ldent of the Mercantile National. Mr.. ST. John
ssid Yesterday that when the trouble was dis
covered he informed the State Banking Depart
ment. Before proceeding further he eXacted the
following written guarantee from every ui'e0''''
Jointly and severally:
I'VE and each of us hereby jointly and sever
ally guarantee TO make good any possible den
cheney in case Of insolvency or in any threat OF
insolvency. 50 that the dcpositOrs and all other
creditors Of the said Bank Of Harlem shall De
AT no risk of loss whatever, or expense OF col
lection of their claims.
HOW THE BANK WAS STARTED.
The Bank of Harlem was started on january
-. 1888 It's first president was Charies H.
Pinkham. jr, who initiated the organization anu
set the institution on its feet. Mr.. Pinkham hau
come from Salem Mass, and was supposed 10 ha,c
had business experience In f"s'oh' ~
is now said that he was in partnership WIN
Edwin II. Corey, of the men whoSe
notes he subsequently used TO secure
loans to himself and that the firm suffered
bad failure When Pinkham interested himself
in the work Of starting the Harlem BANK now,
ever. he brought letters of recommendation. and
was able to secure good backing rom hai,'"'
merchants The need of the hank was IcN
were not nsen versed in the business OF pahK-
ing Although in high standing and representing
considerable wealth, they did not giNe The cioses'
attention to the banks affairs, ana the president
wns allowed large freedom in running IT, IL Is
instanced as an indication OF his rescrVatioh u
control that he did not permit charies l..
Trotter the cashier, to attend the meetings oI
the directors when discounts were passed upon
and loans made. This was departure from
usual banking custom. but failed TO arouse 'nc
suspicion of the directors. inexperienced IN oa'iN
ing methods II is charged that when flhKna'
subscribed 1000 as his share In raising the
capital Of the bank the STOCK was aie'"'
virtually hypotheca'ed
The presidency of the bank was held by flnk-
ham until June 20, 1890. II is alleged by the
nresent officers that he made improper loans 10
himself foisted inferior security upon the IN
sti,ution and in rarious ways caused loss 10
tho hank of from 100000 TO $50. sample
of his methods is aiven in the statement suDmit'el
by the Bank of Harlem to the Grand jury, on
which an Indictment against Pinkhain was found
Yesterday.
SAMPLES OF HIS METHODS.
Here is the statement:
Ii appears that on August 3, 1880, Pinkham i'sued
his check on the Bank Of Harlem, payabie 70 we @
bank for $4,000 (voucher mIssngl IN exchange ior
two notes Of 4. II. Wood, indorsed BY Louis brsier
csaid TO be Woods fatherin-law, and said TO be re
sponslbe when Pinkham substituted his own notes.
E9t 9oags sna Oh rSe S abstract Of account
debit August g. 1883 $I4,5Oo. This check ovGr-
same date credits himself with loan OF 81 300 ana
prctends to secure payment on sane 5y Lodging En- ms
which check was held without presentation until can
celled october 3, 1850. At the close Of business
August 3. 1880, the overraft In rnhham's account,
reduced as above. remained S2,625 IS. on october
8, Pinkham loaned himself on note OF Ed%in H. ~,
Corey dated New York, October B. lso9, payable on
demand TO Pnkham's order at the Bank Of Harlem
for $1,000, with interest. PnHham paid $500 on az,
si4 300 10 himself on October 3 diamonds secured
by note Of George f. Bi;ndes dated Ansnst D. D.:
1859, for al4,5OO PAYABLE demand The said corey
note of 5000 Is displayed herewith The abstract
Snd al aso shows ds Of % for hi" check with
which he cancelled his check the Commercial Ma
tiona Bank The abstract Of account shows that at
was overdrawn ,567 25. The abstract of account
shsnsss 3 shows s ~ % NysT 81 m the anS GS
ovcIdraft was not made completely good until tie
These loans TO Pinkham were forced by him by
Ss Of his q, M aGe % % % ede1 slcGs and Or without M %a s
them At the board meetings. the cashier The natural
and usual secretary Of the same was excluded By order
read by the president the directors during Hnham's
incumbency, were ignorant of the accommodations
some time prior TO the organization Of the Bank Of
Harlem Pinkham and Edwin ii. Corey were partners in
Of assets. These debts have since remained unpaid
Mr. PINKHAM's ARREST
On warrant issued by Recorder Smyth Pink
ham was arrested at 80 p. III. yesterday, in the
Equitable Building where he is employed as agent
He was brought TO the District-Attorney's Office
where he remained until evening Bail had been
fixed at $500, but the prisoner was unable to
secure it, He sent messengers for several friends
without success. Finally he was arraigned in
Part | of General Sessions before Judge Fitz-
gerald, who committed him to the Tombs on u
charge of grand larceny i'll the first degree
David F. Porter, real estate merchant, of No.
21l West One-hundred-and-twcnty- -fth-st. who
is now president of the Bank of Harlem was seen
downtown yesterday afternoon. lie said that
the story Of Pinkhams maladministration was too
long and complicated to go into extensively. He
gave some instances Of Pinkhams operations.
Among the security which the latter had pledged