The sun., 1907-11-29
BANKS LOAN BOOK MUTILATCD
AND BNDEX MISSTNG-MCARREN'S
NOTE PROPERLY RECORDED,
Nut tine NSte itself Can't Ne FOund In the
Borough Bank-That Obligation. How.
ever. Has Net Been Disputed-LAst
Moment Checks AlsO Have Disappeared.

Senator Patrick H. McCarren's note for
$4,000 which was in the Borough Bank.
Brooklyn. cannot now be found. although
the obligation. it Is understood is not dis
puted. None Of the witnesses before the
Grand Jury could throw any light on the
missing paper. for which the State Bank
Examiner and the District Attorneys men
have made long search Senator McCar-
rem has been represented as saying that
tho note was amply secured.
Amore serious matter IL that the "tickler"
20 the banks loan book il missing and that
several pages have been torn bodily from
the loan book. n in mutilating the book
It was the intention to destroy evidence Of
loans made by the bank the job would not
be complete unless the Atickler" or index
also was put out OF the way. A fruitless
search was made ON behalf Of the Grand
Jury for this index. The McCarren note
| stands properly entered in the book. it 10
said
Other missing papers, it il said. are a
number Of the checks that were presented
for payment just before tho bank closed
ty men who had an inside tin Of what was
! coming.
The investigation into the affairs OF the
Borough Bank is far from concluded. The
present Grand Jury will be dismissed to-
day. but the new one will take up the in
quiry. 1t was learned yesterday that all
the directors of the Borough Bank who are
suspected Of having had any knowledge of
the irregular transactions put through in
that institution are being shadowed by
detectives.
At least one witness before the Grand
Jury testified that some OF the very men
who are most active now in promoting plans
for the rehabilitation of the hank were
the first to withdraw their money when the
bank became embarrassed.
Ex-Congressman John J. Fitzgerald,
who is a director, is said to have
had an overdraft OF 81 200 standing against
him when the institution closed its doors.
Three indictments were handed down
against William Cow FOR overdrafts, but
in his case evidence was adCluced that the
overdraKts were made knowingly and
wiRfully, which is in no way charged in
the FitEgemld case.
The new Grand Jury, when it takes up
It's investigation on Monday. will look also
into the affairs Of the Williamsburg Trust
Company and the First National Bank.
Frank Jenkins, who vas Indicted for forgery
in the Jenkins Trust Company case, Waa
president Of the Williamsburg Trust Com
pAny. The Jenkins interests had loans
from that company in excess OF $500 COO,
and Il has been said that at one time the
loans footed up to nearly 81 200 900. John
q. Jenkins, the father Of the three indicted
Jenlkinses, is president Of the Frirt National
Bank. which also closed its doors with the
other jenkins institutions. The District
Attorneys Office, 1t is said, has concurrent
jurisdiction over the affairs OF a national
bank with the Federal prosecuting officers.
THv Sun obtained yesterday a summary
Of the confessions made by Howard Max
we'll, the depOsed president Of the Borough
Bank, who has committed suicide. and
A. d. Campbell. the former cashier. The
confessions, made before the board OF
directors OF the institution. were taken
down In writing sworn to before a notary
and signed They disclose some trans
actions that haven't as yet appeared in
print.
Campbell. for instance. admitted that
two years ago a loss OF SO, 700 had been
sustained on three European drafts bought
by Maxwell and Campbell from Pinckney
Melville To cover up this loss Campbell
obtained number OF notes signed in blank
by W. +. Shutter an employee Of X. w.
Han, one Of Tampbells friends. The
notes we're subsequently filed in and the
loss In course Og time Uas partly nade up
although there are still standing in the
-.
"a. $50 a.
According 70 the confession. Campbell
two days before the bank closed put in
notes in his own name and in tho names
OF J. J. Cunningham and Russell Randolph
aggregating S5S.sOe.
There we're several notes bearing the
names OF fictitious persons. The interest
was paid on these notes in this way. They
were drawn in excess Of the amount that
was needed in Maxwell and Campbell
stock speculations and the difference was
used 20 pay the interest on the renewals.
Campbell said that these irregular notes
were recorded in a private book which
was never left in the bank
Campbell said that the loans on fictitious
names we're made from time to time IA the
money was needed for stock transactions.
According to Campbell. William Cow had
kno wledge Of these transactions. John s.
Jenkins. Cows attorney. he said. went to
the bank regularly to supply Maxwell and
himself with information as to market
conditions Campbell made this state
m0nt:
mo director or officer Of this bank other
than Mr. Maxwell and Cow ever knew OF
any Of these transactions of either Of us
in stocks or real estate. nor did any Of the
directors ever know OF any Of the notes
or Mr. Cow or Mr.. Maxwell used in the
bank In any OF these transactions. I and
Maxwell and Cow carefully concealed from
said directors all information concerning
these transactions"
Maxwell admitted In his confession that
ne had an account In the name Of Campbell
at the brokerage Office OF Marshall, Spader
q Co. and that after Campbell found il out
he paid Campbell over Sc 900 as his share
OF profits.
Somebody called William s. Hurley, the
vice-president Of the Borough Bank. on
the telephone shortly after O'Clock
yesterday morning and told him q
building in the rear OF the Borough Bank
Al