The Providence news. (Providence [R.I.]) 1891-1906, 1906-02-19
BORGES LOAN MAY
CAUSE DOWNFALL.
Contlnned from naRe ono.

Mr.. Gale, the president OF the Beacon
Trust company, spoke freely of the mat
ter in conversation with reporter.
He said the whole matter was a very
simple business transaction. The Provi-
dence Trust company wished to S2rmally
organize. and Mr. Borges being director
and heavy depositor i'm the Beacon Trust
company, asked for the loan as tenn
porary accommodation 10 perfect organ
! izatiOn.
MERE MATTER OF FORM
Mr. Gale argued that It was mere
matter of form, and he therefore prompt
! ly agreed 1t was a very simple affair,
such as any trust company would agree
TO. and did not take more than Is or 70
| minutes. The loan placed the Providence
! Trust company in possession OF the neces-
! sary money for the time being, and Mr.
| Gale admitted that a pass book OF the
Beacon Trust company was issued. show
ing a credit of $4,000 TO the Providence
institution.
The loan was repaid the same day. He
did not regard il as significant or impor-
tant that the pass book was issued show
ing the credit. He had no interest I'm the
formation Of the Providence Trust COM
pany, he said, knew nothing about the
promotion OF the institution. and had not
advised as to,its formation or conduct
cussed It's affairs with employees of Borges
and with one gentleman who was reported
as having agreed to go on the directorate.
CAME TO PROVIDENCE.
He further admitted that he came TO
Providence and had a conference with
a number of business men here with
reference to starting the concern after
the Borges directors had dropped out
Also that an employe OF Borges was per
mitted to make his headquarters In the
Beacon Trust company for two weeks In
order TO famlliarize himself with trust
company methods before going TO Provi-
dence to take charge OF Borges' bank.
II was fact that the assistant tras-
urer OF the Beacon Trust company re-
signed to go with Borges as treasurer
of the Providence Trust company, but Mr.
Gale tried TO dissuade him from this
course.
II Borges and his lieutenants used
his (Gale's) name for the purpose Of pro-
curing members OF his board or directors
ne had no knowledge Of 1T.
He did not know that a list Of directors
with his name a the head was circulated
by Borges for some time while business
men and capitalists were being sought
TO join the board.
Neither did he know, he said, that
Borges had used the pass book showing
trust company had that amount of casn
to its credit
DIRECTORS DISSATISFIED.
After President Gale had made the
sworn statements which he later discover
ed we're erroneous a meeting Of the Bea-
son Trust company directors was held.
Mr.. Gale made explanations concerning
the unfortunate answers to the interro-
gatories. which were not altogether pleas
ing to the directors. They were not en-
Enthusiastically received.
1t is a result OF this chain OF circum-
stances that the directors Of the Beacon
Trust company are now trying TO figure
ont how Mr.. Gale can best he relieved Of
responsibility as head OF the institution.
The publicity that has been given the
facts I'm the matter and the peculiar sta
tus OF the court records is also supposed
20 be responsible for. the latest effort TO
have some change made IN President
Gales answers to the interroga tories IN
the Wright Borges suit.
Meanwhile. the bank commissioners arc
supposed TO be watching the progress OF
events with some interest.
Gov Guild does not agree with Savings
Bank Commissioner Locke that the board
OF directors Of the Beacon Trust company
Is the only body that can take cognizance
OF the loan nv President Gale of $3}O.000 OF
Borges 10 boost" the Providence Trust
company swndle.
Tho governor is not at all satisfied with
the failure OF tho bank commissioners to
take action IN regard TO President Gales
remarkable loan. and II Is whispered that
Commissioners Locke and Otis have been
informed by the governor that he expects
10 hear Of something doing" in the mat
ter.
when tho Providence Securities and
Banking company collapsed the present
savings bank commissioners handed in
their designations. which were accepted
TO take effect upon the appointment ~
their successors
Gov Guild -ieferred the appointments,
IL Is said. pending the passage OF the bill
now I'm process of being drafted and in
troduced in tho legislature abolshing the
present board and authorizing the ap-
pointment OF a single commissioner
should the present board continue 10
sleep upon the present matter. II is said.
the governor will announce their success
ors without waiting TO learn the fate OF
the pending bill.
81 understand che meant TO apply again
for a divorce"
yes. she did but her husband. was
too poor to afford the expense. "-Cieve-
4 ,,J ngalgr