The sun., 1907-12-01
RECEIVERS WANT TO HANG ON
MANY MILLIONS TO HANDLE IN
SUSPENDED BANKS.
n They Arc Not Used Co Large Affairs
Themselves They Can Always HIRE
Lawyers when the FASpllng II so Coed
--IArEe Hearst Flavor PreValent.

Lawyers Wmen tme Fhs9hn8 ~ so aSoou
Large Hearst Flavor Prevalent.
The arguments before Justice Belts in
Albany yesterday make IL apparent that
j every effort Is TO be put forth by the Attor-
ney-Generals office to make permanent the
receiverships Of the suspended institutions
in Manhattan and Brooklyn.
These institutions. according to the re-
! port Of the State Banking Department iast
summer, had deposits amounting to about
10000, 600 That amount was undoubtedly
] considerably reduced before the institu-
A tions closed their doors, but there are still
millions enough owing to the depOsitors to
demand the highest ability in the manage
ment Of the institutions under the courts
orders.
The depositors themselves. as il has
been impressed upon them day by day
that their chances of escaping liquidation
at the hands of the receivers are becom-
ing more remote. have turned their at
| tention more closely to the men who have
been selected by the Attorney General to
save the remnants OF their accounts The
disclosures of a criminal nature in two or
three OF the companies in Brooklyn make
IL all the more necessary in the minds Of
the depositors that the receivers should
be men qualified to- act from experience
on Ill phases of banking affairs.
OF the receivers appointed by Justice
Belts on the recommendation of the Attor-
ney-General only one has had actual ex-
perience as an officer of a bank. This one
Is Isaac N. Cox of Ellenville Ulster county.
who is one of the joint receivers of the
Borough Bank. Mr.. Cox's experience, how
ever, has apparently been limited to the
performance of his duties as president of
the Home National Bank of EllenviIle.
Ellenville is a banking post village on Sand
burg Creek surrounded by beautiful scenery
and facing the Shawangunk Mountains.
Population in 1900. 2,S79. Mr.. Cox is also "A
trustee of the Ellenville Savings Bank
and a director of the Orange County Trust
Company. He has been a member of Con-
gress, however. and in 1890 he was appointed
by President Cleveland as a commissioner
to examine and report as to the condition
OF the Northern Pacific Railroad.
II there is anything about Metropolitan
banking, though, that sticks Mr.. Cox he
can call on his fellow receiver. Henry A
Powell. Mr.. Powell used to be a Congrega-
tiOnal clergyman in Brook lyn, but gave up
the pulpit because of throat trouble and
took to the practice of law He ran for the
Supreme Court in Brooklyn on the Repub-
hcan ticket several years ago, but was de-
feated. Now he is chairman of the Kings
county committee of the Independence
League. The Directory of Directors fails Co
mention him as connected with the board
OF any trust company. bank or other
financial institution.
With notes and checks representing
more than el.OOO,OOO missing from the
Borough Bank and with the books honey
pnmhRN NIfh IFrOu1IlaF frnnGnpffpng MIR
Cox of Ellenville and former pastor Powell
are going to have plenty of banking prob
lenS to figure out. They will be assisted,
however, by Clarence J. Shearn, Who has
been appointed counsel 20 the receivers
and is Mr.. Hearsts personal attorney
OF the other receivers Frank l.. Bapst Of
Buffalo is apparently the only one that has
seen actual service on bank directorate.
lie is a director of the German American
Bank in Buffalo and a director of the Column
bia National of the same city. BY educa-
ton Mr.. Bapst il an engineer. He is general
manager of the German Rock Asphalt Com
pany, which in the old days Of the suprem-
aCy of the Barber asphalt trust paved miles
Of streets in Buffalo. He is president of the
Buffalo Dredging Company, which has had
many Government, State and CITY con-
tracts for work in and around Buffalo. tiC
was one OF the organizers of company that
has the contract for removing The Iga:haEe
OF the city of Buffalo. lie has lab.,le'i ~
Erie county politics, having once served as
chairman Of the Democratic county COM
mittee
He has been known as a good "giver up"
to Democratic campaign funds when the
ticket was to his liking. He was aEains,
Hearst last year hnr lately, il is sail. be has
lined up with William j jackson. Herman
NJ. Auerbach, one of Bapst's close friends
in Erie county. was the organizer OF the
Hearst League there and has been known
as enc of the Attorney Generals kitchen
cabinet. Nh. Hnps, ia receiver for the
! Williamsburg 1rUsg Company. The Ill
rectors of Iha. Institution wrote to the
Attorney -tieuera. before the receiver WIS
appoinJai submitting me Gafles of CeitaIn
i Of tho deposiLOfs anj stockholders who
woUli serve as receivers without com
pens3iion.
john Mu!hall, receiver Of the Jenkins
Trust Company is another If the Attorney
Generals Ok fellow citizens. Mr.. MulhaNs
business activities for some time before
hu was appointed receiver were directed
along real estate lines in this city. His
barking experience il ignored by the refer
eice books. He il. however, a part owner
Of the TOnawanda racetraCk. He has
declared since he became q receiver that
he never INTENDED TO operate the track.
He has declared also that lac never manu-
Gactured soap. What he did do along this
line was to buy out a half interest in soap
company in Tonawar Ia which had a heap
of soap on hand and which wasn't going
to manufacture any more. The VAIN
wright National Guard Commission when
i it was taking testimony in Buffalo a few
weeks ago brC ught out the Iact that tins
4 soap company had a supervisor as a sales
| agent who ordered soap by the gross de-
| live 1 at county institutions without order
requisition. Soap was delivered at the
! penitentiary and the Seventy-fourth Regi-
ment ArmOry thus. and, it is alleged was
| paid for. The County Auditor and two
! supervisors who allowed the soap claims
| TO be paid are now under sentence for graft
| ing. although not. of course, in connection
| with these transactions. Mulhall denies
| that his company ever received pay for
| this soap.
Since Mulhall was appointed receiver the
| record OF suit tried ten years ago in Buffalo
has been turned up. Mulhall was asked in
that suit IL he had been interested at one
time in a faro bank. He declined to answer!
Muihall spent the early part Of his life
in TOnawanda, and it was there also that
the Attorney General got his start. It has
been said that MulhalI was one of the per-
, sons responsible for Jaclxson's first appoint
ment as Assistant District Attorney OF Erie
| county. Mulhall was State committeeman
in Erie county in 1897 and 1898. He has
always been personally strong with Jackson.