New-York tribune., 1907-11-19
BANK EVIDENCE STRONG
NAY MEAN INDICTMENTS.
Many Indications of Improper Pro-
Cedure IN Brooklyn.

Evidence that may lead to the indictment Of
several officials Of Brooklyn banking institutions
is in the possession of the District Attorney Of
Kings County. Information obtained by the
examiners of the state Banking Department
shows some startling transactions in violation
of both the civil and criminal codes. Among the
charges that are being made in connection with
the Borough Bank scandal are several cases of
alleged forgery and Juggling with estate
account.
Acting District Attorney Elder was IN his
Office until a late hour last night going over the
evidence that will be presented to the grand
jury to-day. With him William ]. Hayes.
of Buffalo. special examiner Of the State
Banking Department. and Robert L. Steele. who
has been appointed special Deputy Attorney
General to aid the District Attorney in his IN
vestigatons of alleged criminal transactions
This conference was held after Mr.. Elder had
spent the afternoon In consultation with Bank
Superintendent williams and Attorney Cen
eral Jackson in Manhattan
In the morning Mr. Elder had paved the way
for the evidence he will present to-day by lay
ing before the grand jury a mass of document
ary evidence. No witnesses were heard. There
will be several to-day, it is understood but the
list of witnesses does not include William Cow
who owned a controlling interest in the Borough
Bank and the leading spirit in the organi-
zation of the International Trust Company;
Howard Maxwell. former president of the Bor-
ough Bank. Arthur d Campbell the former
cashier
Bank Superintendent Williams has evidence
of improper banking in the case Of the Jenkins
Trust Company and the Williamsburg Trust
Company but so far has not discussed It with
Acting District Attorney Elder. It is declared
that the Jenkins interests directly or indirectly
borrowed over $1,OOOOoO from these two insti-
tutions.
Arthur D Campbell. the deposed cashier of
the Borough Bank declined last night to dis
cuss the stories of real estate operations
Quoted by him IN which forged paper was used
He also refused TO talk about stories that ne
had been heavy speculator in the stock mar
ket for n long time, and that one stock broker
age firm had insisted winding up his account
when it learned he a bank official but that
another firm had been conducting his stock
operations up to the time of the suspension Of
the Borough Bank. 1t also said that he had
been conducting stock operations for William
Cow the controlling director Of the bank.
COWS INTEGRITY ASSERTED.
James NJ Clifford William Cows counsel.
said for him: "NIr. Cow will make reply to
the assertions of public officials regarding his
transactions with the Borough Bank Neither
Will he make a public reply to assertions that
certain transactions in which he was involved
will go before the grand jury. I am sure he
can prove that he is not culpable in the acts at
tributed to him. Until the time comes for him
to answer some definite charges he will be
silent"
One of the interests connected with the Bor-
ough Bank said last night it was almost en-
trely due to William S Hurley and ex-Shern
Buttling who had no knowledge of what had
been going on in the Borough Bank, that Howard
Maxwell Mr. Cow and Mr. Campbell had been
forced to turn to the bank real estate.
bonds. stocks and other property, which in
good market are worth about SIOOOOO. It seems
that those protracted meetings of the directors
of the Borough Bank for several days after it's
suspension were heart breaking affairs, Most
Of the directors were astounded at what they
lea rned and it is said that some strenuous means
were used to get the true facts from some of
those who we're implicated in the transactions.
One of the transactions. according to a story
current Yesterday, involved the alleged forging
of a check on an estate account in the bank.
The check, It said, was certified and turned
over to the depository of the International
Trust Company in Manhattan to make up the
required amount of cash required by the State
Bank Department before the new trust company
was allowed to open. This check was returned
10 the Borough Bank in the course of business.
and it was never necessary to touch any of the
funds on which it was drawn. Another version
of the story that unsecured loan of S145-
0OO made to one of the directors to make up the
capital Of the International Trust Company was
charged to the Mcclure estate and that of
cashiers memorandum was the only record of
the transaction.
Senator P. Fl. McCarren said yesterday that
the Borough Bank held his unsecured note for
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