New-York tribune., 1907-11-29
BANKS PAPERS MISSING
MCARREN CHECK GONE.
Directors Of the Borough Give ont
Officials Confessions.

TIE dirsotors Of ths Borough Bank Of Brooklyn
gave out yesterday extracts from the confessions
of Howard Maxwell its deposea president; A y.
Campbell its former cashier Mr.. Doolittle Mr..
COWS private secretary. These extracts shed
much light on the many transactions on which the
Kings County Grand Jury based its ten indict-
,nents following the closing OF the bank on Oc-
fobe- &c.
II was also learned that certain OF the banks
documents cannot be found. The note for $1,000
made by Patrick II. McCarren and g number of
checks presented Just before the bank closed are
supposed 10 he among the papers missing
The index 10 the banks loan book IS also rs-
ported missing. together with several pages torn
bodily from the book itself
Mr.. Maxwelrs confession explains the $780, 600
note. signed The Borough Bank per Maxwell in
dorsed 10 Mr.. Cow and redscounted by ". r.
Jones the deposed president OF the Oriental Bank
from the confessions it appears that a separate
loan book was kept, away from the bank, SO tnaf
~ no schance it might fall into the hands OF any
the directors 10 blind the directors and conceal
flom them knowledge Of what was actually
going
Tho confessions reveal network OF fictitious
notes, spurious accounts, overdrafts and similar
transactions. It is also shown that Mr.. Cow, Mr..
Campbell and Nfr. Maxwell speculated heavily in
fhc stock market and il was TO carry this spec
ulation and make good losses arising from II that
o; the alleged illegal transactions were made
in giving cut extracts from the confessions the
directors Eaid 1T took nearly tlreS weeks oI uay
sud night work to get complete and accurate
knowledge Of all the Irregularities and misdoingA
of these men. listing the notes they were Directly
indirectly responsible for and in preparing and
having executed the divers deeds, assignments
fiIls OF sale, etc. By which the bank got owner
ship and possession Of the properties which, at a
conservative estimate are worth upward or s'H-
ts0 and which fully secured the bank against any
Joss through the misdeeds OF these men, All OF the
testimony and the lists Of properties were laid be
md Superintendent Charles Williams OF the bank
Ing department.
A L Campbell * as the first Of the banks officers
20 confess and since then he has been more willing
20 tell everything he knew, not only as concerned
IFS own Transactions but also details OF those OF
others. His confession shows that about TWO years
azo there z loss os slo,7o on three European
drafts bought by Maxwell and Campbell from
Tfnckney Melville. which were returned, marked
No good" To cover up this loss he obtained q
number Of notes signed by f f Shutter in blank,
which he subsequently filled in. The loss was IN s
measure made up so that there remain now three
of the Shutter notes aggregating 1889 10 Shutter
was an ernploye of Robert ". Half, close friend
o. Campbell and Maxwell.
Two Ralph MAYNARD notes aEsregating $500 was
q loan made IN the name Of depositor. To cover
Tp this transaction he procured two notes from
William Wills. q friend OF his and MaXWels,
10th of which were signed by Maynard, one OF his
clerks There were also three notes of A. X ROD
ertson Co for about s5c co. which were discounted
81 the Borough Bank To cover up this loss-for
Robertson had sbsconded-Campbel again got his
friend Wills to to the rescue and supply
him with blank notes signed by Maynard and in
dorsed By himself. These aggregated the S5,V".
When the Borough Bank closed il was found that
one Of the depositors the Same Wills, with an
apparent balance of Sl,50o but on investigation II
was found that though he originally had regular
account the actual money deposited by Wills had
been withdrawn long before In crder seemingly
20 Justify the discounts to Wills one of the notes
given by him was used TO provide funds to make
hts account an apparently live one, and ACCORDING
10 the books he still has deposit there.
Mr. Campbell then told how the property that
william Cow purchased at Court and Joralemon
streets Brooklyn was psid for. Three initai pay
Tnents ef $4,000 each we're made. then d nhal pay
10eDf of Sf5eD Cow made his first payment py q
check on the Borough Bank, although cashing this
Lcheck oVsrdrew his account for the amount OF the
Sa-heck itself The neXt three payments were llade
'he same way, but Cow covered the oVerdfafts py
notes signed by clerk named Pfeiffer, OF the Office
of Ward & Cow After the last payment had been
made Mr.. Doelittle gave the bank Cows personal
note for the entire amount $4,000, and mortgage
on the property. Mr.. Campbell sVore that the dl-
Yectors knew nothing Of this transaction
The directors summary of Mr.. CampbelTs testi-
riony goes on;
The names Of friends were freely used in & Long
Island TsaI eslsif 1gali II c O of The four was to
put up soc. To raise the 81 100 for Maxwell and
bs@es hl of Borogsh Bank stock as coateTa and
9T II borrowed ] his hote ToF the re t9uffgG fgiad % M
Of a note cashed by check. The note was
renewed as il became due and the original note
destroyed. Galr was innocent party TO the
transaction FOR he was never aware for what pug
pose his note was being used. Another sactioa
in which CiaiT used a $500 cashiers check.
which Gair returned two checks ageregating the
same. This money placed 10 the credit OF
T3cklen and Seib and then with tns money Camp.
bell purchased draft on Garden City Estates.
Mr. Campbell broke down entirely when he ac-
ilnoRledged that he had forged both the makers
md indorser's name to Cassidy note which was
Endorsed stewart and was for *2,149 This amount
needed 10 up losses on speculations sug-
ges;ed by Jenkins and which Cow promised to
stand for. Fictitious notes. Mr.. Campbell ad-
'ltted, were also put in In the Of o. J.
Philips. for 500; John HaTrigan for $3.50 and
p. a. Lyons. for 1880
Ihe notes were made out Fl excess OF the amount
required. and the difference was USED to ray the
interest They were entered in the books OF th,
hank as bought notes" Sometimes Campbell
would take cashiers check for the proceeds and
eonetiraes would take notes cashcd" check and
"s=- Il with thC paying teller.
Mr CampbelTs confession then touches on the
siook trar-a actions which, resulting in losses re