New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-11
ATTACK ON KlLBURN.
ORDER OVER WIRE TAPPED
Fight against Appointment Of Re
ceiOer for Loan Company.


Davies was made yesterday by Colonel David
c Robinson, of counsel for the New-Hork Build
ing-Loan Banking Company, in opposing At
torney General Cunneens application TO have
the company placed in the hands of a receiver.
The argument was before Justice Dugro, in
the Supreme Court, in this city. he case having
been brought here on change of Venue from
Albany.
Attorney General Cunneen. in opening his
argument for the appointment OF a receiver,
said an application was made in 1902 by the
Attorney General 10 inquire into the practices
and condition of the company. Later another
application was made by stockholders. under
the Banking law, for an examination of the
company as 10 its practices. and both were
referred to Mr.. Farren, the referee, who re-
ported that the company was insolvent to the
extent of S317, 467 81. The report finds that a
large part of the investments of the company
are excessive, and that its management mas
not been either conservative or prudent but mas
been extravagant and reckless Upon the ming
of the report OF the referee. Mr.. Cunneen said
he had obtained an injunction restraining the
company Justice Herrick, at Albany. he said
has approved the report. finding that the condi-
ton OF the company was even worse than
shown by the report. Upon the showing OF the
report of the referee and on the court record
M Cunneen said that he would rest
Colonel Robinson, for the company, declared
that the case presented a melancholy story or
two proceedings strangely discreditable to the
men who have brought them" He declared
that the New-York Building-Loan Banking
Company was the largest loan and savings in
stitution IN the State of New-York. organized
thirteen years ago with a capital of Sl0ooo'
and had grown until its capital was now more
than Sc. 100000.
SCANDAL IN RECEIvERSHIPs-
Colonel Robinson declared that the appoint
nent Of receivers has become public scan
dal. and that the action in this case had been
from the beginning deliberate effort to wreck
thu company for the fat fees a receiver would
make out Of st.
In the fall Of 1902 the Attorney General, who
was running for the place Of justice Of the
Supreme Court" he said. had one deputy in
Brooklyn busily engaged in the recelVershlp
business. On November o he suddenly discoV-
cred that this business needed a receiver. Elk
arainers were detailed and the entire force was
turned out some days later TO work. They took
rossession of the books, and not satisfied with
that they brought letters signed by the Bank
Superintendent warning the examiner in charge
that he would find a depreciation in the real
estate of the company. All Of the property OF
the company is in Manhattan. Does your honor
remember any depreciation in the value OF prop
crty IN Manhattan in 1902? Had the Tender
loin so far deprecated that an examiner must
he instructed to find the company's property
greatly depreciated?'
ORDERS BY TELEPHONE OVERHEARD
Colonel Robinson said that when the exam
frers were in charge Of the conpanys oflce6
the telephone wire was tapped and stenog-
raphers made records Of conversation IN
which Bank Superintendent Kilburn instructed
the examiners to get out their report even
though their accounts did not balance, and not
70 delay the matter
7 am not here to defend my predecessor or
the Superintendent Of Banking" said Mr.. Gun
neer. but I wish 10 insist that the argument
be confined 10 the issue"
Whether The Banking Superintendent was
derelict is not before me- observed Justice
Dugro.
I think 1t VIII be before you before we get
through" declared Colonel Robinson.
Ii regard TO the referees report. Colonel Rob
inson said the referee had found its assets to
he SS345241 70 and its liabilities to be $S,662,
zoe 16 thus fixing the companys deficit at
$4,000. The referees report, he declared,
showed that an error the part of the Bank
ing Department the result of overestinat-
ing the company's liabilities and grossly I'M
derestimating the value of the companyS as
sets.
WENT BELOW ASSESSED VALUATIONS.
The assessed valuations made for purposes
Of taxation he said, are made by men in
formed regarding the value Of property. Here
vas a man from a remote county, unfamiliar
with property values III Manhattan, who has
reduced the valuations for the purpose of OBJ
tanning receivership. This referee has in item
after item assessed the property OF this com
pauy 20 per cent less than the amount at which
the people Of the State have assessed it for pur-
poses Of taxation Two hundred and eight
thousand dollars was cut off from our book
valuation on some twenty-five pieces of prop
erty alone. and the changes were made by the
referee by writing in the exact figures OF this
incompetent witness. -Four weeks after he tes-
titled one piece had sold for nearly $4,000
more than his valuation, and this was the one
piece regarding which the referee departed
from the opinion Of his witness friend. This
property is at Lenox-ave. and One-hundred
snd-fourteenth-st Il sold for $4,000. and
that one piece ne placed at the higher valua-
ton"
When asked who had purchased the prop
erty in Lenox-ave.. Mr.. Robinson replied: The
president of the company.
The president OF this company" repeated
Justice Dugro.
Yes; but he bought it with the stipulation
that if any one questioned the sale he would
return il 10 the company"
The hearing was then adjourned until this
morning.
KILLS SELF BEFORE WIFE AND CHILD.