New-York tribune., 1907-11-24
SEEK TROUBLES SOURCE
BANK PROBE GOES DEEP.
Brooklyn officials Plan Further
Indictments.

-Four more indictments may result from the
investigation of the Borough Bank of Brook
iyn which is being made by Assistant District
Attorney Elder. The possibility that Man
haitian banker may be indicted before the No
vember grand jury in Kings County gets through
its work was one Of yesterdays startling devei-
opments. No session Of the grand jury was held.
but Mr.. Elder and his assistants We're busy
gathering and examining information which will
be presented when the jury meets tomorrow.
The further the probe is put into the affairs
of the Borough Bank the more complicated do
fits transactions become. One man who has kept
himself in the background may be indicted unless
he has covered his operations too skfully. This
IS yet 10 be determined. The work yet to'be done
on the Borough Bank will probably carry the
case over 10 the December grand Jury. For this
reason VI is thought best TO place before the
present jury information regarding operations
by officials OF the Jenkins and the Williams
burg trust companies This information will. II
IS thought. lead to indictments. No indictments
viii be handed down tomorrow, but there will
he several on Tuesday.
Among those who have transferred property
10 the Borough Bank since its suspension is
Robert w. Haf an extensive real estate specu-
later, Of No. 1S9 Montague street He has re-
fused TO discuss his relations with the Borough
Bank. II is known. however. that he has been a
close friend of Arthur D. Campbell, the indicted
cashier OF the Borough Bank. and has been in
terested with him in many real estate ventures
He has not been called before the grand jury to
explain these transactions. however. It is said
that among the property transferred by him TO
the Borough Bank are three apartment houses
in Washington avenue, Sterling Place. I'm
I'll recently these houses held in the name
of Mr.. Campbell.
One of the real estate transactions that have
come to the attention of the stockholders COM
Fnittee Of the Borough Bank is one in which
$4,000 was needed. real estate expert is said
10 have told Mr.. Campbell and Howard Max
well the president of the Borough Bank, that
'big money" was TO be made in this deal.
Mr. Half. who for some time had been de-
positor in the Borough Bank. put up note for
$1,000 Campbell and Maxwell got their money,
so It was id.yesterday, by making a note for
$4,000. 10 which the name of a we'll known de-
positor OF the bank was signed, This depositor
IS said to have told the directors of the bank
since the examination began that he was asked
whether his note could not be used for thirty
days. He consented, but it seems, according 10
his statement, that the formality of having him
sign the note personally was overlooked. When
this note became due in thirty days it
placed, the story goes, with note for the
amount, to which the name Of another depostor
was signed. This depositor said he never heard
Of the note.
LOANS BY REALTY MAN
One of the phases of the Borough Bank in
quiry to be probed by the grand jury is the al
legged lending TO Campbell and Maxwell by
Brooklyn real estate man of notes of his clerks,
TO which signed the names of depositors of
the hank as indorsers These notes, it is said.
used to take up notes of Campbell and
Maxwell that had become due.
John S. Jenkins, director of the Interna-
tioEal Trust Company and close to the men in
the Borough Bank VINO organized that trust
company has made a statement to the directors
Of the Borough Bank regarding certain trans
action he had with that institution. AS it
repeated yesterday. Jenkins owned triangular
piece of property in 9th street South Brooklyn
Some time ago he borrowed from the Borough
Bank. on an unindorsed note $1,000 AS secur-
ity he gave an assignment OF a mortgage on
property lin 57th street, South Brooklyn" The
assignment not accompanied by the mort
gage. which would have contained description
of the property.
II is said that MFR. jenkins has now admitted
that the mortgage alleged 10 have been made to