The sun., 1906-01-31
TOSM0THER BANKING INQUIRY
rryJ!IID KILBU RVS RESIGNA-
TJON y Ot In RELTEJE SITUATION
A,,cmbl, Passes Investigation ResOlu-
,,on, but II Is Feared That Further
steps Would start n Panic hargcs
crew Out OF the BuHalO Failures.

crew Out OF the Buralo Failures.
AtR,Xy, Jan. 3O.-'The situation regard
,rc an investigation of the State Banking
ne,artpsnt il acute The Assembly reso-
luton proyicling for such an investigation
nas.el the Assembly without protest, and
!, Wiz sent on its way to the legislative
norg,,c the Senate There, when the
,e.nrutton vas announced, it was referred
IN the finance committee without COM
moni
The present plan is that this committee
will smother the resolution. This dis
rosi.on of the resolution Is not actuated
a, an hv any desire to protect Superin-
,cndcnl of Banks Fredericl, d. Kilburn,
lut simply to prevent a panic which the
Reruhiran leaders fear would ensue should
a general vestgation of the financial in
stitlnon- of the State be inaugurated.
The criticisms which have given rise to the
Introduction of the kilburn investigation
resolution have not been aimed so much
against the State banking and trust COM
names system as it has been against what
has been termed Supt. kilburn's inefficient
administration.
GOV fllggnss friends feel that Mr.. Kill
burns pronounced friendship for the Gov
crnor should cause him to relieve the pres
ent situation by rendering his resignation.
They argue that the kilburn blot is the
onv one upon the Republican party's
horizon which is likely to be felt after the
LEGISLATURE adjourns and become serious
factor in next falls campaign. While the
Republican leaders in the Legislature and
GOV. Higgins's friends say that the sit
nation does not warrant any action by the
LEGISLATURE which would incte distrust
among the hundreds of thousands of in
vestors in the financial institutions of the
State, with a resulting panic, they also re-
slze that the attention of the public Is
focused upon Supt. kilhurn's admnis
tration and that something must be done
10 satisfy this public opinion.
They feel that far as the Republican
State administration is concerned the sit
uation would be fully met in the eyes Of
the public should Supt. kilburn retire.
MIR. kilburn ended his tenth year as
State Superintendent of Banks on Jan
uary last. His present term does not ex-
pire until two years from next May. The
salary Of the Superintendent of Banks was
5000 when he assumed office. In 1893
he had the salary increased and now gets
$500 a year.
ne senate FINANCE NOHlfnlttee 1let
thi. afternoon, hut paid no attention to the
hilburn resolution.
William l.. Reid, John S. Voz and Alfred
B. FarthinG. a committee of the mutual
Cepositors of the German Bank of Buffalo,
are here to urge the passage of the resolu-
.tion. They are urging upon the attention
Cof members of the Legislature the specific
B. Gharges against Superintendent kilburn
,rb Io,,,opJor biS
from Office in their petitions to Gov.
Higgins. They assert that Mr.. kilburn
never made any specific answer to their
charges and that when they made a second
complaint to the Governor, giving more
in detail the transactions in which they as
sert that Mr.. kilburn was negligent of his
duty. the Governor never even acknowl
edged it.
in brief their charges grow out OF the
looing of the German Bank and the Ger
man-Anerican Bank of Buffalo by Arthur
+. AnpIeyard. who borrowed s86i 900 from
the German Bank and caused its failure.
They ,av that the condition of affairs was
- serious on Sunday, Dec. 5, 1904, that Mr..
hllturn went To Buffalo to see what could
be done Representatives. of the other
banks Of the clty met him on that day.
and after an examination of the affairs of
tho two banks decided that the German
Fan. va n-ovent The committee says
that ono person at the meeting suggested
to NIr Eihurn that he permit the doors
of the bank to be opened on Monday and
that a meeting of the directors be called at
10 O'Clock to see whether they would lend
the bank their individual credit. Mr.. Kill
burn ~avs that the meeting advised him to
take TIN, etap non this point there Is a
question Of veraclty.
II Is rointed out hv the committee that
the meeting of directors might have been
called for 0 O'Clock 1t was. however,
called at 10 O'Clock after the bank had
opened and the bank directors refused
to come Ia is assistance.
The bank remained open for an hour
and twenty minutes. during which time
s355@0 in cash was Withdrawn by favorite
depoNtors upon 2lO checks. The com
mittae asserts that the cashier Of the bank
arrived at the institution at o'clock in the
mornug and that clients of the attorney
for the bank we're among those who with
drew their deposits, the money for which
had been made up for them in packages
In advance. Among those who got out
OF the bank in time is said to he promi-
hent politician who was taken down into
the Basement or cellar of the bank and
there turned over s33, ,0oo, being his balance
In the bank"
MI kiburn then ordered the bank TO be
closed and the other depositors we're COM
PEELED to take what they could get.
II l. further charged by the committee
That the examinations made by Mr.. Kilburn
were misleading to the depositors.