New-York tribune., 1907-12-01
BIG SUMS DRAWN OUT.
BANK RECEIVERS REPORT.
Trust Company accounts Almost al
uinimum Before Suspension.

Minimum Before Suspension.
peno-ts of the temporary receivers of the
william sburg Trust Company and the Interna-
t,onaI Trust Company were made punilc oy
Attorney General Jackson yesterday Ihey
show that large Withdrawals were made from
bo1h institutions just prior 20 their suspension
On October 2s. The array Of accounts that were
drawn down almost TO a minimum IN the inter
national Trust Company is startling Ii Wouio
snnear that William Cow made some Sloo'ooo
by -ne transfer of the lease OF NO. 2eo broadWay'
where the company did business
suecial Deputy Attorney General Rooert J.
e,es1a viii Mace before District Attorney Jerome
..o--o,,, su The facts he has IN connection
,-,b The International Trust Company, and ask
the+ so-,e action be taken on them. At the same
time the Kings County Grand Jury for December
which is 10 be sworn in Tomorrow VIII raKe
m the Williamsburg Trust Company
Attorney General Jackson said last night thah
,be 1oan committee of the Williamsburg Trust
corpany might be responsible for loans amount
ing 10 $4,000, which went TO five clerks IN the
sn,rlov Of the T. G. J. c. Jenkins jr-, brokerage
conoern- The way in which this corporauol' ali
.he stock " which is held by members OF lhe
Jenkins far. IL, borrowed thousands OF ooiaLA
from fhe Jenkins Trust Company has already
heen told 1t Is understood that IL aAso hao
large loans from the First National Bank OF
Brooklyn. which is in the hands OF IsdeiSA4
receiver
More evidence has been found to show nov
sorns Of the accounts in the Borough Bank
vrere drawn down lust before its suspension
Arguments were heard yesterday by Justice
Retts in Albany on an application TO make the
reo4iyers Of suspended Brooklyn institutions
permanent. The application was strenuousiy
opposed by counsel for thu banks. All the ar
guments were adjourned the Borough Bank TO
December 10 the international Trust Company
tie Brooklyn Bank. the Williamsburg Trust
Company and the Jenkins Trust Company to
December L.
ORGANIZED OUT OF WIND
II giving out the report Of Goodwin Brown
receiver for the International Trust Company.
Attorney General jackson said it would seem
as if the concern had been organized largely
out OF Wild IF the report Of the receiver is
correct" ne said, there Justification Of
the books Of the Borough Bank and the Brook
iyn Bank and a manipulation of their securities.
in order. apparently to give the International
Trust Company a surplus and capital Of 81
10000 Il was organized only few weeks
before il went up, and when il closed its doors
had only about ninety depositors. with deposits
Of between $4,000 and $4,000"
The report states THAI z. w. Jones. jr-. the
former president OF the Oriental Bank. had a
demand loan Of SD $50 which was entirely I'M
secured. This indebtedness, has not been ad-
iusted." says Mr. Brown Mr.. Jones is i'll. but
his attorney has promised to confer with me In
reference to the matter"
An interesting transaction, where William
Cow. fhe organizer OF the trust company, ap-
psrenty made $4,000 is related at some
length. II seems that Cow paid TO the trustees
Of the Henderson estate for the lease Of No zoo
Broadway, where the trust company did bust
nesr. $4,000 in cash and gave mortgage for
k25e000 He apparently sold the lease TO the
trust company for S457.545 on October p. or
four days before the suspension receiving S251.-
545 s. above the mortgage He on the same day
e.,osited stocks and bonds with the company
snd drew out s325.s52
CONCERNING COWS DEAL
Concerning this transaction the report has
tais TO say:
In another part Of my report have called at
,eItion 70 Cow Withdrawing from the company t,,s
credii he received from the transfer Of the lease;
cost 20 % the the denSany SanlSas Of Of s5 which hoey
Included mortgage for $4,000 which Cow gave ssd de
&. a. esss ssaeffSon from ftSs5ees tfea at 'e '' 's
a o y , ieg @ in out sposn ae Of the ne lease to the com
nany On the other hand hoF: ever Is 70 De noyeq @
70 the company stocks and bonds Of the value ol
s590D0 that q result OF the entire TRANSACTION
The company had balance left or about sezrz55, u
We are TO concede the full value paid by the com
pane the leasehold. and that, as pointed OUT IL
another part Of MY report, Is extremely douptiuI
In my opinion, Cow originally had no Intention ol
transferring the lease the company Having
paid sI0f coo in cash account OF the purchase
price paid by him to the Henderson trustees. the
rentals exceeded the charges Of operating thf
Guiding by substantial amount
u was good investment for him. bat on October
= ne evidently needed money either for his own
use % rtrtfr the Borough Bank By turning the
lease o company that date at the price
y s157.5z5 SIS and above the existing mortgage
;or $500, ,G00 and also turning over TO the company
stocks and bonds Of the stated value Of 500. ae
was enabled thereby 10 take on the same day from
NE colnpanys cash at the Oriental Bank the sum
~ 1925, ,s52 so
In support Of my opinion that Cow had no inten-
tion originally transferring the lease to the In
ternstionai Trust Company, i call attention TO tns
Iscf that the lease itself is not dated. although il
"as duly c.cknowledged october 81. 1907 The
original lease made by the Church Corporation con-
aimed clause that In the event Of an assignment
9f the lease being made without their consent tho
Shorch Corporation could then re-enter. This con
Continued o second
CONGRESS OPENS DECEMBER 2HD.