The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-31
THE SUPREME Court RUN
How tho Trust Money Draws ~ Per
Cent. in "Odeii's Bank" In Newburxh

VI.
From the 0oshsn Independent Rcprbhr,,
In the elaborate and far-reaching sys,em
under which public business IL made an l..",
OF the Republican machine In thi. S,.rt. ,,J
md'istrlously worked for the personal rr,a,
OF It's members. nothing Is too great to he nv
tempted, nothing so small as To bc ovor,
looked. Below 10 told the story Of the man
ner In which this organization rcache. nm,
and under the protection OF Law takes fran,
the pltifully small estates Of widows and ,r
fants Its percentage OF profit While Or,rn,
county only Is referred to In this article. SIM
lar conditions are believed 10 rNis, in eynrv
county In the state. II may 10 Questioned
II anything meaner or more utterly rontemt,'
ible was ever undertaken by IA great political
party.
Under the law, County Treasurers through.
out the State are made custodans Of what
10 known as the Supreme Court Fund ThI.
fund Is composed OF moneys held IN trust IA,
order OF the various courts for minor children
and widows. Formerly there were several
custodians of these moneys, the Surroyai.
and the County Clerks. as well at the County
Treasurer, being empowered TO receive and
invest them. The enactment of a law nun.
Der OF years ago placing all such funds in the
custody OF til County Treasurer was deemed
wise. but under its provision there was y,
possibility OF profit to astute and thrifty
politicians that was not fully realized until
the present Republican machine assumed
control of the State government Acting
clearly within the provisions of The law the
rrpreme Court Fund is now 40 controlled tina,
1t has become source OF considerable revenue
to the Republican machine leaders, not only
in Orange county. but throughout the state
The Highland National Bank al Newburgh
Is commonly known as Ben Odell's bank
1t is highly prosperous institution. having
at the date of It's last quarterly report de.
posts agregating sS98. 1852, Il surplus Of
SIP. ii, and the amount of its loans and dis.
counts was s504.7i5 In its directorate and
among its stockholders are many men PROM.
nently identified with the Republican ma.
chine. The Independent Republican is I'm.
able to give a list Of the stockholders, hut
among the directors elected az tho last an.
nual meeting are "Hipe" Odell, Postmaster
Of the city Of Newburgh and brother OF the
Governor Chairman; Louis +. Goodsell the
Senator Supervisor and acting regen, Of
Benjamin b. Odcll, Jr., in Orange county:
william George Taggart, for eighteen wears
County Clerk of Orange county and now
holding a position OF some sort nj Reruh-
lican headquarters in New York city: "Corncy"
Warning. NewburRh's Corporation Counsel
and others of lesser prominence who are
identified with the local Republican machine
The Comptroller OF the State Of New York
is empowered to designate in each county
bank which shall be the depository Of the
Supreme Court Fund. Being n close personal
and political friend Of the Governor Chair.
man. there is no occa sion for wonder that the
Comptroller in designating the depository
for Orange county should have ma med the
Governor Cha irman's bank. Its standing
was above reproaoh and il enjoyed the CON
idence Of the State government to large
lpprnp n other q 81
the deposits from the State Prison at sing
Sing.
Naturally a bank even a bank controlled
by the Governor-Chairman and his friends,
would be expected to pay something in the
way of interest on such part Of the Supreme
Court Fund as was intrusted to its care
But the law specifies no rate of interest
and the matter is one for mutual agreement
between the Comptroller and the officers II
the various banks where the Supreme Court
Fund is deposited Small wonder, then. thai a
satisfactory rate should have been agreed
upon between the Governor Cha rma n e
friend the Comptroller. upon the one ha nd.
and the Governor hairmans friends in the
Highla nd National Bank upon the other.
The rate OF interest agreed upon and which
the Highland National Bank is paying to the
infants and widows whose funds it holds Is
~ per cent. per annum. The gross made
almost any savings bank in the country
would pay per cent. or ~ per cent, and
national banks and trust companies arc using
the newspaper columns to advertise the fact
that they are anxious 20 pay interest AT the
rate OF per cent. per annum on certificates
OF deposit of $500 or over left three months
or longer, and per cent. per annum il left
six months or longer.
The Supreme Court Fund amounts in round
numbers to sI5O,OO0. The County Treasurer :
report TO the Comptroller shows that on the first
day OF January, 1901 there was in his hands
$751; 800 belonR 'ng to the Supreme Court Fund
or this amount more than one-half 1910
was deposited with the Highland National
Bank. This Is substantially the condition
OF the fund to-day. This money the bank
uses, the same as other deposits in the trans
action OF its daily business, and it forms it,
proper ton of the loans and discounts made
by that institution. The borrower who ap-
plies 10 the Highland National Bank for loan
pays 0 per cent. The bank pays interest on
the Supreme Court Fund at the rate Of -
per cent The margin Of profit is 81 per cent.
II the bank loans at per cent. the entire
amount OF the Supreme Court Fund in ia
hands, which averages about SIS. 900. and for
which IL pays ~ per cent, its profits in ono
year would be g., 1926. which might be regarded
as pretty good return, even for Governor
Chairmans bank. when it is remembered
that not one dollar OF the banks capital is
invested.
During isna the County Treasurer received
81, $50 as interest on investments and sl.s'l
as interest on that half OF the fund deposited
in the Highland National Bank. In the
same year there was added to the principal
of the fund si7. 5e6. and there was paid out OF
the principal Of the fund to benefciarIes
S2340l