New-York tribune., 1907-12-11
JACKSON TO GO DEEP.
OUTLINES HIS PLANS.
VIII Carry Banking Inquiry to the
End. attorney General Says.

Attorney General Jackson discussed develop
rnents in the Manhattan banking situation yes
teriay afternoon. Mr.. Jackson emphasized the
| necessity of having a thorough "houseclean-
| ing: he insisted that the proper authorizes
| should investigate the affairs Of the closed in
| stitutions, with the idea Of bringing TO justice
any directors and officials whose acts might
have made them liable to legal action, and
pledged the best efforts of his office to assist
| in such Investigations.
Herman Aaron. of the firm of Parker & Aaron
| Of No % Broadway said yesterday that any
| talk Of us,Irv in connection with the Hamilton
| Bank because of its Certified check loans or
because of its charging discounts on other loans
| was ridiculous" Parker & Aaron had Sbeen
paid regular charges in connection with the
loan business of the bank according to the re-
ceiver's report Mr.. Aaron said he thought the
report was unfair to the bank. and he added
that il was customary to charge discounts on
loans to contractors.
District Attorney Jerome said yesterday that
he would not discuss the Hamilton Bank d.
rectly or indirectly, because 1t might be inves-
tigated."
Frank White the receiver for the Hamilton
Bank refused to make any reply to the state
rnent made by w. r. Montgomery, president OF
the bank, denying that he had overdrawn his
account. as stated in the receivers report
The Attorney General himself will begin an
investigation of the Hamilton Bank and the
International Trust Company of Manhattan He
will examine the receivers report of the former
institution eff L find there are grounds for
action YOU may rest assured that this office
will not be slow to do all IN it's power to prose-
cute" he said "and to bring to the attention
of the grand jury all transactions that II as
proper to lay before that body
Mr Jackson may decide to appoint a special
deputy Attorney General to assist in the In
vestigation of banking institutions IN Manhat-
tan. lust as he appointed a special deputy to
assist Assistant District Attorney Elder. or
Kings County, in the work of investigating the
affairs of closed Brooklyn banking Institutions
In talking of the situation Mr.. Jackson said:
"Ons result of the recent crash and panic IN
this city is the revelation Of a startling and
alarming condition of affairs in our banks ana
trust companies. The condition thus revealed
,s a grave one. It has shown radical defect
either in our banking laws themselves or IN the
execution of them.
'Now I do not care at present to discuss the
question Of new banking legislation or even to
say whether I think there is need for new leg
islation though I may have my own ideas on
that subject. The main fact to be considered
is this-a bad situation. a bad condition OF
affairs has been discovered.
''It is my earnest belief that one OF the most
rigorous and most thorough investigations ever
on record should be made now OF those fnsu-
tutions that have closed their doors And L
am here to lend all the aid that I personally
can and that my office can TO the conduct or
such an inquiry. This is not the time for half
way measures. This is the time for strong, con-
servative action. When I say conservative
mean conservative. but 1 do not mean any
finching from carrying on and ont the investi-
cation to the bitter end. no matter where that
may lead or whom II may strike.
1.-THE trouble is that a good many people IN
this city, persons not themselves connected with
any of the closed institutions too, are afraid of
the consequences OF such an investigation. But
that Is wrong. There must be one, and thor
ough one. If there is, and I will do what
can to see that there is, there will be some men
who doing banking business in this city
who Will do it no longer.
1.-The latter part of this week I expect to take
up the investigation of the Hamilton Bank and
the International Trust Company of Manhat-
tan along such lines I consider il proper
for this Office TO work under. l have not yet
had time to go into the report OF the receiver.
Frank White. the Hamilton Bank but I Will
take that up and go into 1t thoroughly"