New-York tribune., 1907-11-25
NEW CASE FOR JURY.
BANK PROBE CHANGES.
T7cO Other Brooklyn Institutions
N01C Under SearchHght..

Assistant District Attorney Elder will lay before
the Kings County grand jury to-day the evidence
and information he has gathered regarding the af-
fairs of the Jenkins and Williamsburg trust COM
panies It is believed the grand jury will promptly
hand down indictments and that bench warrants
will be served those indicted either Tuesday or
Wednesday
The grand jury has not finished probing into the
affairs OF the Borough Bank of Brooklyn, and IL
is hardly probable that will complete that work
before it is superseded by the December grand
jury. The reason for its dropping temporarily the
Borough Bank for the two trust companies is eX-
planned follows by Brooklyn lawyer who mas
been keeping in close touch with the situation
From the information that Mr.. Elder VIII lay
before the grand jury in regard TO the affairs OF
the Jenkins and Williamsburg trust companies sur
cient ground for indictments will almost certainly
be found. The District Attorneys office, knowing
this, is desirous that those persons against whoh
indictments may be found be served with bench
warrants as soon as possible and put either in
prison under heavy bail TO await their trial
The office is afraid they may find out what is go
ing on and decide TO leave hurriediy. 1t is unwil-
ling 10 take such chances"
II developed yesterday that William c. Hurley,
vice president and of the directors of the Bor-
ough Bank, secured from Mr.. Cow, against whom
five indictments have been drawn, property to the
value of $4,000 be used in the interests of the
depositors. When the crash came the directors
and counsel of the bank thought they had forced
him and Maxwell and CampbelI to put up every
thing they had to their loans and protect
the interests of the depositors In the property
that Mr.. Cow made over TO the bank there was
no mention of the Hollis Park Gardens. Mr.. Hur-
ley remembered that some time before Mr. Cow
had told him that he had an interest in this prop
erty. At meeting OF the directors he asked him
why he had not turned that over. Mr.. Cow pro-
tested that he could not. because he had made il
his partner. ATtemus Ward. to satisfy his
Indebtedness TO Mr.. Ward. Mr.. Hurley then went
TO Mr. Ward, and the latter agreed TO turn it
over 10 the bank ito be now owned and controlled
by the Borough Bank of Brooklyn absolutely for
the benefit OF its depostors and protection to
them against all loss due 10 the misconduct Of
Coz, Maxwell and Campbell"
Charles N. Stafford, counsel for depositors OF the
International Trust Company and Brooklyn bank.
in formal statement the depositors he repre-
sents said: u found that between 100000 and
100000 had been put in the Borough Bank of
Brooklyn shortly before it closed"
In reply TO this statement the directors OF the
Borough Bank said yesterday: mo Brooklyn bank
deposited cent with the Borough Bank at any
time during the weeks preceding its closing.
There is no truth in any statement to the effect
in It just before II closed"
When Mr. Stafford's attention called to this
he said that he would simply reiterate his state
ment.
Light thrown yesterday on the Maxwell
Campbell-Haf operations so far as they concerned
the Borough Bank
Robert ". Half, Brooklyn real estate operator,
was an extensive borrower from the Borough Bank,
either directly indirectly, for financing real
tate and other operations that he was interested
In. Tracing these transactions back to the begin
ming. the investigation has produced evidence TO
show that Mr.. Haff at the request of Maxwell and
Campbell. furnished the latter with a number OF
blank promssory notes signed by of his 0iaffs 81
clerks which to be used 10 cover up losses
from the non-pay1nent Of certain European drafts
that Campbell and Maxwell had bought for the
bank without the authorization or knowledge OF
the directors
These drafts were bought from "Pinckney Mel
Vile" No one has been able to find out who this
is and some of the directors of the opinion
that Pinckney Melville never existed. The drafts
in all aggregate $1,000 They were sent over Tor
collection. They were returned marked mo good
OF the $1,000 thus taken from the bank 5000 was
returned. Mr. HaR admitted 10 the directors of the
bank that he had given the blank Shutter notes to
be used TO up these losses. This transaction
occurred about two years ago. There are three OF
the notes aggregating 5000 unpaid.
About year ago Mr.. Haff financed the Inter
borough Leasehold Company also with money bor-
rowed from the Borough Bank. He president
of the company and Maxwell was treasurer 1t
organized to acquire the lease of the property
John and William streets, Manhattan. on which
they intended to build a skyscraper. The company
paid 1900 for the lease.
Mr. Maxwell advanced this amount on four notes
for $6.S75 each, executed in the name of the com
pany. One OF the notes was indorsed by Half, one
by Maxwell one by ]. A. L. Eckard and one by
A. B. Latson, president Of the Union League Club
of Brooklyn None OF these notes is due yet.
Mr.. Haf also borrowed aggregating 25.0oo
personal notes. He gave security his equity
in three double apartment houses in Washington
avenue Brooklyn The security is considered ample.
It was also learned that Mr. Haff had acquired
more than two hundred acres at Mineola. financing
this purchase by money secured from the Borough
Bank notes executed by his clerks. These notes