New-York tribune., 1907-11-18
BANKS TO GRAND JURY.
KINGS COUNTY ACTION.
Cases of Borough Bank and Jenkins
Trust Up To-day.

by Robert H. Elder. Assistant District Attorney
! OF Kings County, that the cases of the Borough
! Bank and the Jenkins Trust Company would be
placed before the grand jury this morning for a
! comprehensive investigation into the affairs Of
| these two suspended financial institutions,
/ against which charges of Irregularities have
| been filed by Attorney General Jackson and the
| State Banking Department. Clark Williams,
! the State Superintendent of Banks whose de-
| partment and that of the Attorney General have
! placed in the hands of the District Attorney
! evidence which to proceed, will be the first
| witness before the grand jury
This investigation will extend also 10 the
| Williamsburg Trust Company and the Brooklyn
Bank, and possibly to the First National Bank
of Brooklyn. The first four institutions men
| toned, which ali state banks, are those for
which receivers were appointed on Saturday by
Justice Belts at Kingston, when temporary re-
ceivers were also named for the International
Trust Company and the Hamilton Bank, of Man
haitian. w. H. Schofield a federal bank
aminer has been in charge of the First National
as temporary receiver ever since it closed its
doors last month
The examination Of the evidence. which is
understood to be voluminous. by the grand
jury will probably take up at least the s'tater
part of this week. Mr.. Elder explained last
night that the investigation into the First Ma
tional Bank. it was a federal institution.
would probably be limited to the connection that
1t might have had with the other banks and
trust companies under investigation. Mr.. Elder
said:
Il VIII be ready to present to the grand jury
tomorrow morning the evidence that my Office
has received from the Attorney General and the
State Superintendent of Banks. I am not pre-
pared to say which case I shall take up first
but the investigation will include the Williams
/ IA nj
as we'll the Borough Bank and the Jenkins
Trust Company. 7 have asked Mr. Williams to
be the first witness. 1t is difficult to say just
how long it will take 10 collect all the evidence
but the District Attorneys office which began
an investigation on its own account week ago.
has mass Of evidence accumulated"
COMPLAINTS BY DEPOsITORs.
1t was learned that the investigation con-
Quoted by the District Attorney was the result
of complaints made to him by officials and de-
positors of some of the institutions This prob
ably explains the statement OF Mr.. Elder that II
may not be necessary to subpoena any witnesses
before the grand jury. There are likely to be
numerous voluntary witnesses. The charges that
will be taken up are that the Jenkins Trust
Company overloaned TO John G.. Jenkins, IT, its
president, about S550000, while in the case OF
the Borough Bank the directors admit that large
overloans were made TO William Cow one Of the
deposed directors. who it IS said dominated the
affairs Of the bank Mr.. Cow is of the firm of
Ward Cow. advertising agents. and organized
the international Trust Company with Howard
Maxwell, who became the president and who
later was forced from the presidency of the Bor-
ough Bank.
The forgeries charged by the Attorney Cen
eral are understood to mean the jugglery of ac-
counts, and ii was said that the bookkeeping
departments Of the suspected institutions would
be carefully scrutinzed.
Further inquiry yesterday revealed that Will
lam Cow was even more deeply involved I'm the
affairs Of the Borough Bank than was FIRST re-
ported Also there were made public the names
OF the men who were only referred to in a
statement issued Saturday night by the d.
rectors of the Borough Bank as Others" The
statement admitted the irregularities charged
by the Attorney General and told Of restitution
made by William Cow and Others The lat
ter. it said, Howard Maxwell and
Arthur D. Campbell the deposed president and
cashier Of the bank; John S. Jenkins and Frank
w. Doolittle, secretary Of William Cow.
RESTITUTION EXPLAINED.
Samuel S. Whitehouse. who Is associated with
Paul Grout as counsel for the Borough Bank
explained last night the circumstances of this
restitution. Some Of the men mentioned. ac-
cording to Mr.. Whltehouse I'm borrowing money
Mr.. Cow, who used some Of these funds in the
formation of the International Trust Company
and also a fire insurance company. The
amount lent to Mr.. Cow, either directly or in
directly, exceeded the 40 per cent Of the banks
capital and surplus. the limit placed by the
banking laws This percentage was secured
although there was more than 10 per cent lent
where there was no collateral to support the
loan.
When the general depreciation Of securities
came the directors called Mr.. Cow and the |
others for additional securities. The loans had
been advanced from the middle of July to just
before the bank closed The value of the secur-
tiles turned over to the bank by the five men is
said 10 be $7S0,000. doubly securing the amount
OF the loans advanced to them. After the
directors had investigated they called upon |
Cow, Maxwell and Campbell to tender their res |
ignatons which they did at once
Many Of the securities recovered by the Boz
Ough Bank In the form Of deeds and mort |
cages real estate in Kings. Queens and
Nassau counties. An interesting transaction
between the bank and Cow was a loan 70 the |
latter Of 100000. This was secured by a sec /
ond mortgage building in Court street
owned by Cow, on which there was a first rlogt- |
gage of 100000 The building in a normal |
market it was said. would not sell for more |
than 100000
The bank held deeds to other properties owned /
by Cow. All deficiencies, Mr. Whitehouse SAID,
had been made up
The directors of the bank agreed on Satur.
day night not to discuss The affairs of the bank
for publication. William S. Hurley member of |
the late Rapid Transit Commission, is direc-
tor of the Borough Bank, and it largely