New-York tribune., 1901-07-03
DEPOSITORS TO SUE.
WANT GOULD AND THOMAS DECLARED
UNSECURED CREDITORS
NETT ASSIGNS AN ASSISTANT TO AID
EXAMINER RAYNOR.

NETT ASSIGNS AN ASSISTANT TO AID
EXAMINER RAYNOR.
Forrest Raynor. the National Bank Examiner
who, under instructions from the Controller of the
Currency is making investigation of the ac-
of the Seventh National Bank, called yes
terday afternoon United States District Attorney
Burnett accompanied by his special counsel. Will
lam S Opdyke. of Opdyke. Wilcox & Bristow. No.
20 Nassau-st. Mr. Raynor and Mr.. Opdyke spent
more than half an hour in conversation with Cen
eral Burnett. At the close of the conference the
District Attorney talked freely with number of
reporters. He said that Mr.. RaynOr reported to
him that satisfactory progress was being made in
the investigation of the affairs Of the failed bank,
but that it would aid him greatly If the District
Attorneys office could provide representative to
assist in the work.
The reason for this request stated by General
Burnett, was that matters up which made IL
necessary to nterrogate bank officials to entries
the books
II appointed to do this work" continued General
Burnett, 'one of my assistants Captain w. S.
Ball. who is an expert on accounts and Is thor
oughly familiar with the criminal law, he has
had the drawing up of most of the indictments
drawn in this office since l have had control.
instructed him to afford every assistance to Mr.
Raynor in his examination. and where any item
entry discovered that he deemed worthy of
investigation he to call upon the officer
clerk who made such entry and interroKate him
to the time of the entry and everything in con
fcials clerks that in the making of any such
statement they making affidavit before a
government officer. and they will be required to
swear TO the statement statements made by
them"
The District Attorney was asked whether or not
the government had power to compel these officials
TO testify. We have no such power" he said.
but refusal furnish such information would
he strong presumptive evidence Of guilt or wrong
doing. Captain Pail has full power 10 call before
and and FFi-t,l
bank II he should discover evidences OF violation
Of the law from his examination Of the hooks
from any questioning of these officials he is under
instructions to report TO me at once and arrest
would follow a.lcky : l could get man after
the offender SNall go 10 Goshen tonight which
Is not more than hour and half from this
city, but shall keep in close touch with Captain
Ball and Examiner Raynor. and shaG he prepared
20 return TO this city at any moment that my
vices may be needed"
When asked to the matter Of check "kitng"
General Burnett said
Il have had statement OF the modus operandi
of the bank from Examiner Raynor. but there is
not vet sufficient evidence TO warrant the gov
ernment in taking action
Il have been averse," added General Burnett.
since have been IN control Of this Office 10 the
trial Of any case brought before me In the news
papers. But such is the importance of this case
and its prominence that feel It my duty to the
public to let it be known what action the govern
ment is taking in the matter
j. b. Brooks. of the Warranty Realty Company.
of No ll5 Broadway, of the depostors Of the
Seventh National Bank, yesterday announced his
intention to institute proceedings, in company with
several other depositors 10 have President Edward
R. Thomas and Edwin Gould declared unsecured
creditors.
In my opinion said Mr Brooks Mr.. Thomas
and Mr.. Gould secured the best collateral for the
100000 which l believe they loaned to the bank
the day before suspension. Several OF the deposi-
have decided those who deceived rs bX
making us believe that the bank solvent are
not secured any more than If
prove this fact. every depositor should get back
from S5 to 90 per his deposits"
Edwin L. Kalsh, member of the firm of Lind
say, Kremer. Kalish & Palmer whom Mr. Brooks
has retained said yesterday afternoon: 1T will
can be begun Just what this action win he s'' !
cannot yet tell. That Mr.. Thomas should have his
that no court will recognize sale the transac-
ton which took place If SO Mr. Thomas Will Will
have 20 be returned to the receiver for the benefit
will have to be satisfied with pro rata share
We intend also to investigate the check given
$4,000 II, as alleged the Seventh National put
collection then those securities will also have TO be
returned. Under the circumstances think there
will make the former president tell on the stand
what he knows about the conduct of the bank be
Mr.. Kaiish said that besides, Mr.. Brooks some
action against the directors.
William Nelson Cromwell, special counsel for the
Seventh National Bank, who on Saturday made
statement in which he said that the money fur
nished the bank by f. r. Thomas and Edwin
Gould not loan but represented the payment
for assets of the bank sold to them. seemed in
clined attach little importance to the proposed
action. II feel confident that If Mr.. Kalish knew
all the facts in the case, said Mr. Cromwell, he
would for a moment entertain the idea of be
ginning action You say for that the courts
positively Will uphold any action Mr. Thomas has
taken In the matter"
MIR. Cromwell refused to say what the facts in
the case
President DeIafeld OF the National Park Bank re-
fused comment on the statement of Mr.. Kalish
Washington, July 2.-Controller Dawes to-day sent
the following telegram Forest Raynor receiver
of the Seventh National Bank, New-York:
Confirming my telephone to you to-day, II. after
a careful and complete examination of the books of
the Seventh National Bank, you find evidence Of
criminal violations of the National Banking act,
YOU will ask the United States District Attorney
TO make a thorough investigation his own ac-
count affording him access to the books OF that
hank that purpose.