Evening journal., 1903-07-15
BANKS
GET FALSE CREDIT
New Castle Trust Company
Named AS Link in End
less Chain
LEONARD IMBODEN THE PROMOTER
Injunction Secured Against Inter
state Trust Company Of New Jer-
sey and State Banking Department
Takes Charge of Business.

Takes Charge of Business.
II is alleged by the New Jersey au-
thorties that the New Castle Trust
Company at New Castle. this state. is
a link ina chain OF trust companies
and hanks throughout the United
States which are using the form OF
the law to secure a specious and
false credit for the institutions.
At Trenton yesterday Attorney Cen
eral Robert II. McCarter, acting for
state Banking and Insurance Commis-
sioner David O. Watkins, secured an
injunction from Chancellor Magil
against the Interstate Trust Company
OF New Jersey. another one of the
links in the alleged chain. with head
quarters in Jersey city, by which the
state Banking Department Of that
State took possession OF the company'r
business. This action is said to have
been the result Of thorough investi-
cation by the Banking Commissioner.
All the companies are said 20 have
been promoted by Leonard Imboden.
of No. 25 Pine street, New York, and
his associates. Among the institutions
which have been discovered in this
chain are the New Castle Trust Com
pany OF New Castle; the Interstate
Trust Company of Jersey City; the
Fidelity Title and Trust Company, Of
Stamford. Conn; the Central Trust
Company. of South McAlester Indian
| Territory; the Cherokee National
Bank, Of Enid, Okla; the Farmers
National Bank, Of Kingfsher. Okla;
National Bank Of Commerce. OF Fort
Worth Texas.
1t is claimed that most of these in
stitutions have done little actual busi-
ness TO date except to establish a line
Of assets by an exchange of stocks
and bonds ad by alleged deposits with
one another.
It is shown that the Interstate Com
pany, with virtually no business. pro-
poses TO float 100000. 600 of collateral
mortgage bonds. and TO increase its
capital stock from 100000 to $4,000,
600, and this. the Commissioner says
is sufficient to raise a suspicion as TO
the motive prompting such a transac-
tion.
The trial of complaint sets forth
that the Fidelity Company's report of
June shows that it had on deposit
$4,000 made by the Cherokee Nation
al Bank Farmers National Bank, Ma
tional Bank of Commerce and New
Castle Trust Company, the bill, contin-
uing, stating:
No business reasons appear or can
be ascertained why institutions located
so far distant from Stamford should
deposit such sums of money there. and
the same cannot be and are not ordi-
nary DEPOSITS made in the regular
course in the Fidelity Company"
Attorney General Ward stated this
morning that he had heard nothing OF
the case before to-day. He said il is
evidently a civil case in chancery and
that the Attorney General OF New Jer-
lsey was probably acting as counsel for
the Banking and Insurance Commits
sioner and not for the State. When
asked If an action would be taken in
regard to the New Castle Trust Com
pany. Mr. Ward said he did not know
as he thought il was more of matter
for the Insurance Commissioner thar
the Attorney General.
A wen-known business man who is
lconnected with the New Castle Trust
Company, stated this morning that
he had no knowledge of the Interstate
Trust Company of New Jersey. Nc
lactuaI business, he said, has so fan
been done by the New Castle Com
pany. He said that Mr.. Imboden rep
resented several New York capitalists
in organizing the company, and the
building at New Castle was purchased
on the authority of those subscribing
the stock. 1t was paid for by remit
tances made from New York.
Mr.. Imboden is now in Texas anc
has been in for several weeks.
The New Castle Trust Company wa'
organized only a short time ago The
officers are: John e. Taylor, president
John Carswell, vice-presideni, anC
Chauncey p. Holcomb, treasurer.