New-York tribune., 1903-05-06
ACCUSES BANK OFFICERS.
Judge Asks Indictment of Nom
mouth Company Men.
CHARGES BIG CONSPIRACY.


Freehold n J., May (speciaD.-The Mon
mouth County grand jury convened here to-day
for the May court term, and a sensation was
caused by the charge which Justice Fort de-
livered the duty to indict certain officials Of
the wrecked Monmouth Trust and Safe Deposit
Company, of Asbury Park, which is now in the
hands Of John z. Lanning as receiver
Justice Fort opened his charge by alluding TO
the State law governing trust companies. Un-
der the law trust company could make any
loan to it's officers or employees until the PROPOSE
ton had been submitted in writing and ac-
cepted by the directors Yet the facts before
the court he said, showed that this and other
provisions had been violated The facts indi-
Gated clearly that false entries had been made
in the books and that false reports to the
condition of the trust company had been made
to the Banking Department. 1t would also ap-
pear that negotiable paper had been carried in
the assets of the company after its payment, and
exhibited 10 the bank examiners as the property
OF the bank. Checks Of officers and directors
had been drawn on the trust company and paid
out of the funds of the company when there
was net to the credit of the officer or director
funds on deposit therein.
Judge Fort also charged:
On January 10 1903 the treasurer of the trust
company drew and signed check of the trust
company upon the North American Trust Com
pany in New-York for $35,O46 "a. The North
American Trust Company was one OF the CORE
spondent banks of the Monmouth trust COM
pany in New-York City, and a depository IN
which the funds of the Monmouth Trust Com
pauv were placed. On the 10Th day of January,
1903 there was a credit of the Monmouth Trust
Company in the North American Trust Com
pany In excess of the amount OF the cheek
drawn; the checks thus drawn by the treasurer
OF the company was delivered to the president
of the trust company. and by him carried to
~ dali a-eHt n
Trust Company in payment OF an lndeDteohess
Their due by him TO the North American Trust
Company. The whole amount or MS Indebtedness
to that company was 1000. The loan in the
American Trust Company made to the president
of the Monmouth Trust Company was upon the
collateral security of 754 shares Of the capital
stock of the First National Bank or Asbury
Park; this collateral was not taken by the presi-
dent of the Monmouth Trust Company ana
placad in the vaults of the Monmouth Trust
Company as security for this loan, but was used
by linn to borrow S20,ooO OF the commercial
Trust Company in Jersey City, with which to
pay the balance of his loan of Sol,OoO to the
North American Trust Company. No entry was
made of the making Of this $4,000 check upon
the books of the Monmouth Trust Company. nor
was II charged against the account of the presi-
dent of that company or against the account OF
any other person on tie day upon whlch II was
drawn. In considering the various 1natters
which will be brought to your attention II might
be well to indict all the persons participating
in the Illegal transactions for conspiracy TO de-
fraud the trust company. 1t is possible tnat
such an indictment would more certainly reacn
Another matter by which those inside the
trust company and at least one person OUTSIDE II
should be indicted is that relative to the trans
actions of the treasurer OF the trust company
and the treasurer of the Elberon Hotel and Cot
tage Company, the Lederer Amusement ana tne
Pan-American Amusement comp anles Ihe
treasurer of the trust company appears to nave
been the president of the Pan-American Amuse-
roent cor1Dany II is impossible TO escape the
conclusion that the funds of the Monmouth
Trust Company drawn TO meet the obllga-
tions of the Pan-Amarican Amusement Com,
pany pursuant to a conspiracy entered into and
fully consummated by Cornell and Jordan, the
two officers in question. The loss to the Mon
mouth Trust Company will be fully $1,000
In ending justice Fort said, in part: NO
higher duty can devolve upon a grand jury tnah
the bringing to justice all officials guilty OF the
perpetration Of crimes Of this character There
appears to have been Juggling of the accounts
Of the trust company executor Of at least one
estate, if not the absolute misrepresentation OF
the funds of that estate, and a general con
spiracy between the officers Of the trust com
pany and others to possess themselves uhla"-
fully OF the funds Of the trust company upon
a,-sr,r occac{op of their needs.