New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-16
SUPT. KILBURN'S REPORT.
TO BE SUBMITTED TO THE GOVERNOR
TO-DAY.
STATE BANKING OFFICIAL RETURNED TO
ALBANY LAST NIGHT-PAYN'S LET
TER TO WHITNEY.
LEY TELEGRAPH TO THE TRIBUNE

TBY TELEGRAPH TO THE TRIBUNE.l
Albany Jan. 15.-Frederick D. Kilburn, the
Superintendent Of the Banking Department,
rived here tonight from New York. For several
days past as is we'll known, he has been inves-
tigating the financial condition of the State
Trust Company.
Mr.. Kilburn shortly after his arrival here
had talk over the telephone with Governor
Roosevelt, and made arrangements to submit
report to him regarding the trust company to-
morrow morning. Governor Roosevelt stated
this afternoon that he had requested Superin-
tendent Kilburn to make a report to him on two
points:
First-Whether the State Trust Company
solvent
Second-Whether or not its officers had been
guilty of any misconduct.
He knew already from Superintendent Kill
burns letter in the newspapers that the State
Trust Company was solvent, 1t only remaining
for him to learn If its officers had made loans
which they not permitted by law to make.
One OF the loans of the State Trust Company
was to Louis F. Payn, the superintendent of
the Insurance Department, for $4,000. The
statement was made to-day that Mr. Payn had
received this largely through the influence In
the State Trust Company of William c. Whitney,
that Mr.. Payn had written to Mr.. Whitney ask
Ing his aid and that the letter of Mr. Payn
was in the possession of the State Trust Com
pany When Superintendent Kilburn asked
tonight about this letter of Mr.. Payn to Mr..
Whitney he replied that he did not have the let
ter and added: II do not care to say anything
about the letter"
MR.. KILBURN SILENT.
Superintendent Kilburn declined absolutely to
say anything more about this letter of Mr.. Payn
to Mr.. Whitney. 1t is known, however, to be in
existence and in the possession Of the officers Of
the State Trust Company.
Governor Roosevelts friends say 1t would be
very unjust to him to say that he inspired the
investigation of the State Trust Company from
a political motive that his action had the
slightest relation to the fact that Superintendent
Payns term as head of the Insurance Depart
ment was about to expire.
The Governor took great pains to conceal the
fact that an investigation into the affairs Of the
State Trust Company had begun. He wished to
learn from Superintendent Kilburn and Avery
D. Andrews all the facts to the condition Of
the trust company before any news" con-
corning it was made public Political effect was
last in his thoughts about the matter The
complaint against the trust company. 1t
quickly learned, at least had some Justification
IN the fact that of its directors had been
permitted to obtain loans. This is not permit
ted by the State law. The examiner Of the
to discover this loan to the directors
The report of Mr.. Andrews the condition
of the State Trust Company is now in Governor
Roosevelts hands. 1t will be a report indie
pendent of that of Superintendent Kilburn
which will be submitted to the Governor to-
morrow. Thus, two capable men have examined
into the affairs of the State Trust Company and
the nature of its loans. Superintendent Kilburn
is absolutely satisfied of the solvency Of the
State Trust Company, it may be added.
EFFECT ON THE CONTEST.
There a good deal Of talk tonight among
the State Senators and leading Republican poll
ticians about the possible effect of the State
Trust Company news the contest over the
office of Superintendent of the Insurance De-
partment Mr.. Payns friends fear that he has
suffered harm by the agitation regarding the
trust company's loans. Senator John Raines OF
Ontario County, 1t rumored for instance,
had expressed his willingness to abide by the
decision of caucus upon Governor Roosevelts
nomination for Superintendent of the Insurance
Department.
Hitherto it was said Senator Raines had so
believed he would enter a caucus which might
bind him to vote for some one else for Superin-
tendent of the insurance Department Mr.
Payns opponents expressed the belief tonight
that if Governor Roosevelt should nominate ex-
Lieutenant Governor Saxton majority of the
State Senators would vote for him. There were
rumors late tonight that the Governor might
nominate ex-Surrogate James NJ. Varnum, Of
New-York as Mr.. Payn's successor. Most of the
Senators, however, believe that Mr.. Saxton is
the Governors choice.