New-York tribune., 1907-09-12
CHECK GOES TO PROTEST.

ab-er
e. per cent bonds offered by the city on Tuesday
,as thrown out yesterday afternoon by Controller
Metz because the check for ssooeo deposited by
White with the bid went 20 protest when the
Guardian Trust Company tried 20 collect on il.
The elimination Of this bid means that the S''-
no Oh that White would have got had his check
been honored will go lower bidders. largely in
rreasins the number of alotments and reducing
the average premium
among the bidders who Will receive bonds
Margaret Olivia Sage, s2oooona from 1o2 125 10
IN s25; Kelley. Miller & Co. s65ooo at 1c20l: Esta-
brook G. Co. 100000 at 1o2 20; Mutual Life In
surance Company. $4,000 o157: Mutual Alliance
Trust Company. $4,000 at from 1o5 10 1oI.
The J. P. Morgan syndicate landed big block
Of the ten year assessment bonds. The syndicate
ues composed Of ). P. Morgan Co. the Ma
tionaI City Bank. the First National Bank and
Harvey Fisk & Sons. the allotment being S.5os2o
al 100e07.
Controller Metz after consultation with Edward
N Shepard. deposited the check Of the Abraham
White Bond Company. Of No = Broadway. with
the Guardian Trust Company for collection. II the
check had been drawn regular savings insttu-
ton and properly certified probably the Controller
would have waited FIVE days before depositing II.
But, as stated in Tire Tribune yesterday. the Con
troler had his suspicious about the draft. mace
payable 10 his order Controller. and drawn on
the Greater New York Security Company
Francis X Butter. Of the firm OF knahe Il Butter.
is counsel for Abraham White. Mr.. Buffers once
is on the fifth floor Of the Stewart Bullong' lour
floors above thu Controllers office
TIE Controller. after consultation with the Ia"
department. sent for a copy Of the incorporation
papers of the security company. wishing 10 learn
whether or not the company was q banking insti-
tuition. The papers set forth that the company
was authorized buy and sell city. state and ma
tional bonds
M Metz told tfr Butler that mis- information
from the State Banking Department at Albany
was that the Greater New York Security Company.
upon which Mr.. Whites certified check for ssoo"oo
was drawn, was not e registered banking corpora
ton IN this state. Under th. law governing the
bond eale. payment must be guaranteed By sol
vent banking corporation
II don't think your company is regular bank
ing company said the Controller Mr.. Butler,
but If you will come up with the money before
the close of business to-day you can have the
bonds get the most money for the
bonds and your bid is a good one. All you have
got do is to make good with the money
Then the Controller told Mr.. Butler that he was
going TO deposit the check for collection. Later
Mr.. White visited the finance department and
told that the check going 70 be deposited for
collection Mr.. White went away, and that was
the last seen heard OF him yesterday
CHECK DEPOSITED AND PROTESTED.
Controller Metz ct O'Clock turned the check
Vice-President Robinson of the Guardian
Trust Company with instructions to collect II.
Nr. Robinson took the check the office OF the
Abraham White Bond Company. at No ~ Broad
way, and told by r. H. Robbins. treasurer
would make good" during the afternoon. Mr..
Robinson said he would wait until o'clock for
the money but that after that hour the check
would go TO protest He went back at the ap-
pointed hour in company with a witness. and
AZ the Office 10 DO business with him He
thereupon made out regulation protest notice
and the following affidavit which he turned over
10 the Controller:
/ Charles L Robinson. vice-president Of the
ce24f fat secoq8pPned by Wam A Barber
Of Hotchkiss Barber, attorneys I presented at
treasurer m Of sT 3be Greater New York Y security COM
re check for ssoo6o dated September 10 made ny
the Abraham white Bond Company an and sofePfed
q the City Of New york and deposited for coliec-
n said Guardian t aFSst c9mPany 2 maae Of he ae
amount of sale check wheh s3 gas refpsee Pp1R1xsox
witness: ALFRED NJ. BARRETT.
Controller Metz's Office we'll filled with news
raper men and bond buyers yesterday afternoon
awaiting the disposition Of the White bid At 5.5o
O'Clock Mr. Robinson called up the Controller and
told him the trust company had protested 'he
check rs II could not collect IT
That settles it. said the Controller. to the re-
rortere Il gave Nr. White a fair chance 10 come
N with the money to meet his oer'if'eo chech-
hs,,. ordered his bid thrown out. II would not ne
fair 10 give him any further time, as there Is
&. .sn oeo in certified checks earning nothing pehh
ny the award Of the bids The next lowest "i1-
5a-s will get the bonds that would nave gone I"
ito
Controller Metz then called UP Assistant 'oi
-o-..;on Counsel Sterling and asked him WIN
-atsrerce n the cr1inalify Of check certincatiol
when there vas apparently no money 10 Hee' -
NJ Sterling replied that the White dra1t hau o |
-,a-eIv ACCEPTED by the Greater New forh oe' u
a.. C+,ar, and that rs the White bid had been
.--o,rr ont there was nothing further 10 oe "o'7
ra controller said that If It developed iater uh0'
y,-L,.a r-aa R7Iiitv of a criminal act ne "ou'u yum
+ba matter over TO the District AttorheE- ~
working
- g. +.h,,lation the force Of clerks Of the STOCK
Oh ~ - s,,sto, % the Finance Department nm
-. ,., ,ahrIation Of the awards j. a. W.
eavz-,., q Co and William A Read q % soo @
% -5o .,o Of the bonds at prices ranging i -
5o,, -o rol sZ5 Schafer Brothers GOT .s eIo''o a.
.,r, 80 = 10 I11 50: Baruch Brothers. 49,,
60. 800 "a m 1or II: Kuhn. Loeb e. Co.. *' *'"oVp At
LI.ii ~ - $40. & Bache & Co, only s2eo at
-. nav & Co. 81 o57.o4o at from we 10
n, =. the EQUITABLE Life s25coOoo al NJ - m -oa
t4o.rr,.rn g. Co s151s.Seo at from wv !" -v.
-, q CO $50 ooo at from 1o2lf 10 Ipi"4' "p p
Trask & Co. S55.eoe at 1919 70 ~ e 20 non "A.
- Cor,nany $4,000 at from loz' 10 III 49,, oa,
the Metropolitan Lite
AZ from l12 l25 TO l0l SIS. III. .,o ..le .,
.T ,-s-, 20 eay in connection WIN o -
81 to,5.- said the Controller 'lio' %
=. ,be sale IS due largely TO the iAo' 'r,,-s
Morgan and his associates eVlhceu ~ Morgan
- +sLs the whole Issue. I think II 'i., 80
- On - /. disposition take the ooiioS
others would have held PACK , for NJ
White nut in a dreary afternoon
r.xPro-rFD $4,000 IN A sATcHEL"
-t<novlng Mr. Whites resources saio Nj -. -
le- II erpeci hha TO walk In mere any :,
with $4,000 il cash ia satchei. Ni'" -,
, 700. dezI ~ money 20 raise in short time. pu'
~ x.-+t,. ts . man Of great ability and resources
IN 1ees he didn't have much money ou' N" -,
Sage advanced him the necessary iun"s