New-York tribune., 1907-12-06
BROOKLYN BANK In MIX.
AFFAIRS MUCH INPOLp Ell
DeDositors to Control Borough Bank
If 1t Resumes.

ret been investigated by the Kings County grand
Jury seem TO be in an even more uncertain state
than those of the Borough Bank In the absence
of anv confessions from William Cow or Howard
Maxwell in regard 10 how the Brooklyn Bank was
drained of its resources through the International
Trust Company. those who are trying to untansie
the mystery of how old banking institution OF
unuuestioned strength for years was brought 10
bankruptcy are having all sorts OF difficulties
The depositors' committee of the bank met last
night to go over a special report made by Bruyn
Ifasbrouck the temporary receiver, at the request
of C. Nj. Stafford. counsel OF the committee Al
though Mr. Stafford refused 10 give details or
the report ft is understood IL most discourag-
ing II went into details of the alleged assets Of
the bank and many of them apparently worth
less.
According to the receiver Of the international
Trust Company. Its balance in the Borough Bank
on the day of suspension some SJ14Op- IL hao
been surmised before that a good part OF thls
money from the Brooklyn Bank Last night
Mr. Stafford declared that the Borough BANK hao
got more than ss0i,0 ,0O0 belonging 70 the BROOKLYN
Bank How they got it we 90 not KNOW ne
added with much vehemence. There is most
extraordinary condition of affairs. There are lot
of things to be explained and traced
1t seems that on October II, the day the merger
of the Brooklyn Bank with the international trust
Company was declared operative, Henry T. Hutch-
inson who had been president of the BroohISh
Bank was told bring over certain securities
from his institution to the lnternatloiai ii"
According
Of the Attorney General. Mr.. Hutchinson prousht
over stocks and bonds the value OF s-iS'' 'SS D.
and 6s6 shares of the Canarsie Realty company
valued at s1o2iI.
HYPoTHECATED SECURITIES.
Certain officers OF the International Trust Com
panv said to be Howard Maxwell and William
Cow hypothecated these securities with the FHsC
National Bank, in Manhattan, Getting loan VI
,es COO and advances Of $4,000. Mr. Dolson. couh-
,r,o
a formal demand yesterday on the First Natioh'''
for the return OF this security. on the ground 'hat
the Brooklyn international merger was illegal au
that Maxwell and Cow had no right 70 dispose Vi
the securities. The courts have always held' NOV"
ever that in a like this, where loans are hlaue
in good faith on negotiable collateral tho iender
cannot be forced to give up the collateral unless
the loan is paid.
Tho grand fury will possibly, however. investigate
the right Of those responsible for taking the sec'r
ties from the Brooklyn Bank to put through such Il
Transaction The money raised the securities Is
said to have gone TO the Borough Bank. indeed
the large amount of money owed by the 6oIousH
Bank to the international Trust Company is one OF
the stumbling blocks in the way of those trying 10
nut tho Borough Bank on it's feet OF course the
trust company cannot sign deferred payment
agreement.
The depostors' committee Of the Brooklyn Bank
has engaged an expert to over every aI4esed
asset named In the report of the receiver. with an
idea of discovering it's actual value. Mr. StanoFd
intinated that some of the revelations 10 oe made
regarding the flights of high finance" with the
assets Of the Brooklyn Bank would equal those told
in connection with the Borough Bank.
Under the head of resources, in a statement OF
the condition OF the Brooklyn Bank on the DAY II
suspended appear come items that will have 20 be
elaborated. Among them are: International trust
Company. .31s.Sa5; temporary loans. so5S.lo- %
There was due from the Oriental Bank s-oo" anu
from the Guardian Trust Company s2o.59S The
liabilities showed deposits of s. 2.9s: S2s2l2 due
the Columbia Bank. Manhattan; S5.iil due the
First National Bank. Manhattan, and s27S6f due
the Borough Bank. of Brooklyn
STOCK GIVEN TO Cow.
The capital stock OF the Brooklyn Bank. 2.sas
shares which TO have been turned over TO
the International Trust Company in pursuance
Of the merger the legality Of which is now being
attacked was. il is now understood. handed over
IN William Cow as trustee. How the stockholders
will get Il back Is "a problem
All of these details will of course. be referred
TO District Attorney Jerome in this county when
,ha time arrives In the time the Kings
County Grand Jury will probe into them to-day
The Investigations of the jenkins Trust COM
panv and the Williamsburg Trust Company We're
finished by the grand jury yesterday Among the
Witnesses were Frank Harvey Field. former
director; " Addison Field. jr.. assistant secre-
tarv: Charles Jerome Edwards. director anu
willard T. Reid. director. all OF the "hhalnS
b,rc Trust Company 1t is understood now that
Clarke no more indictments In the banking cases
will be handed down before next week
There was no basis for report puolished oy d
BROOKLYN paper yesterday that presehtrlehl III
rho case of the First National Bank OF Brooklyn
had been handed down by the federal grand jury
Tho grand Jury has not even been considering the
case The receiver. is understood, is not ready
10 take any action OF this kind 1t is understood
however that the revelations to come here Will be
fully as interesting those brought out in other
institutions.
J. Hunter Lack of the Borough Bank depositors
committee said yesterday that the stockholders
had signed an agreement by which the deposltors
woud control the institution If 1t should reopen.
The stockholders have signed voting trust
agreement which will permit the depositors TO
elect eight OF the fifteen directors. he said. The
present directors will select the eight who 10
retire from board. We shall make strong
point OF this in our efforts TO get backing for
resumption We insisted this condition before
we would make effort to get the depositors to
sign a deferred payment agreement
with the exception of five large
counts the deposits of the bank represented
bv large number of small depostors. with de-
poss of about 81 100000. OF that number depostors
representing 100000 have signed the deferred
uent agreement. We have cash on hand amount
ing 10 $3.50 900 and hold paper for $4,000. that Will
be paid at once If we open. Outside OF this we
will need only about 100000. We are negotiating
with a prominent banker in New York who will
finance us to the extent of 100000 II we get In
shape &c reopen by getting deferred payment agree
ments'
Mr. Lack said he did not want TO be placed in
the position of crticisng the receivers. But. he
added ..the interests of the receivers and the de-
positors are so conflicting and each side is so
anxious to maintain its own position that IL Is
hard for either side TO make accurate statements
We are not trying. however to deude ourselves
with optimism for il would be worse than useless
TO open IL we could not remain OPEN