Evening star., 1903-07-15
SCHEMER THWARTED.
Buyer Of Banks Runs Against Law in
New JerSey

NEW JcISey.
The following dispatch was received from
Trenton N. j.. last night: Attorney Cen
eral Robert H. McCarter, acting for State
Banking and Insurance Commissioner
David o. Watkins. applied to the chancellor
today for the appointment Of receiver
for the Interstate Trust Company of Jersey
City.
The chancellor signed an order restrain
ing the company from transacting business
pending the consideration Of rule made
returnable before the chancellor two weeks
from today. The banking department
took charge of the company's affairs. with
the ultimate object Of having 1t put out Of
business entirely.
For several months the banking commits
sioner has had the company under sur
veillance, and result Of Investigations
in this and other states he charges In
the bill Of complaint that the interstate
company is one link in chain of trust
companies and banks scattered throughout
the country which are using the forms OF
the law to secure specious and false
credit for all of the institutions. All OF
these companies the commissioner alleges,
have been promoted and are controlled by
Leonard Imboden of New York and his as
sCciates. Among the institutions which the
department says 1t has discovered in this
chain the Fidelity Title and Trust
Company Of Stamford, Conn; the Central
Trust Company Of South McAlester, /. L. /;
the Cherokee National Bank Of Enid,
Okla; the Farmers National Bank Of
Kingfisher, Okla; the National Bank of
Commerce of Fort Worth, Tex. and the
New Castle Trust Company Of New Castle.
Del.
This dispatch was printed in New York
papers of September 27. 1899:
KANSAS CITY, Mo-. September %
Leonard B. Imboden, president of the
Planters Bank, wildcat" concern sup
pressed by the state officials several
the criminal court of forging a draft for
$4,000, with which he hoped to get
false credit for his bank, and was SEN
fenced to ten years in the penitentiary.
he was pardoned by Gov. Hogg after
serving two years for forgery. For years
he lived apparently without resources, at
tempting to promote banking, cattle and
real estate deals in Kansas, Texas and
New Mexico of such magnitude that they
made the ordinary man gasp with wonder.
In every prospectus he claimed to have
prominent Chicago. st. Louis and New
York trust companies behind him.
In the organization Of the Planters Bank
here last winter, to make show Of capital,
Imboden took in with him young man
named s. F. Hancock. Hancock gave him
his note for $4,000 for the capital stock.
and ImbOden in turn gave Hancock a
WOrthleSS QrdIC on a NoDTASka DdnR IOr
S15,112 Pretended credits with the Amer
lean Exchange Bank OF St. Louis and
Blair & Co. Of New York were found to be
myth, and even the checks he sent to
the secretary Of state to pay for corpora
ton papers went to protest.
Notice on the Door.
NEW YORK. July 81. R. vreden-
burgh. state bank examiner Of New Jersey,
visited the room Of the Interstate Trust
Company, in Jersey City. today, and posted
the following typewriter notice on the
door:
1.-THE commissioners of banking and in
surance Of New Jersey have taken possess
sion of the property and business Of the In
terstate Trust Company at Jersey City.
1.-THE said company maintains another
Office. which is at No. 25 Pine street, New
York city.
(Signed) IL. r. VREDENBURGH,
"State Bank Examiner"