New-York tribune., 1907-10-29
BOROUGH BANK INQUIRY.
Examiners Still Busy Finding Cause
of Troubles.

Bank examiners have 20 far been unable 10 reach
the bottom Of the tangled affairs OF the Borough
Bank. IN Brooklyn. which suspended on Friday
coincdently with the suspension Of the Interna-
tonal Trust Company. or Manhattan, and tn"
Brooklyn Bank, a branch Of the International
Trust Comparv. Paul Grout. OF counsel for the
institution. d after protract@d meeting or tho
directors yesterday afternoon: THE bank exam
lners are stnl busy books. UntI they have
made a report shall make no statement This
declaration was repeated IN reply 10 several ques-
tons regarding a number Of stories about the
: financial methods Of the suspended institution.
Howard G. Pyle. Brooklyn estate man.
who started petition yesterday among the de-
positors expressing their confidence IN the banks
management and agreeing TO leave their money on
deposit for six months, said that this action was
taken TO forestan the possibility OF the appoint
ment OF a receiver. 1t ia felt that receivership
would be distinctly against the best interests OF
the depositoTs.
OF the 4,2O depositors more than a had
signed the petition yesterday. but meeting OF the
depositors has been called for Il o'clock tomorrow
morning. 1t Will be held I'm The Assembly in
Pierrepont street. ana at that time some action Will
be taken to conserve the best interests OF the de-
positors who represent $2.JOOOO0 OF deposits.
1T was stated on the day the bank suspended that
some $2.OD00DO had been drawn out within a week.
The Oriental Bank, OF Manhattan. suddenly
ceased TO clear for the Borough Bank about five
days before the suspension the latter There
was story yesterday that about $5OOOOO OF col
lateral which the Borough Bank supposed to
nave on deposit with the Oriental had beer,
not up tho standard and that this had some
thing to do with the suspension At the Oriental
Bank It said in connection with these stories:
The International Trust Company does not owe
anything TO the Oriental Bank and the Borough
Bank has only small loan. amply secured by
satisfactory collateral The Oriental etopped the
clearing privilege OF the Borough Bank because the
balances OF the Borough up the re-
quremcnts OF the Oriental Bank"
Regarding two loans. said to be Of $4,000 each
to tyCo
ternational Trust Company from the Borough Bank
or the Oriental Bank, representatives OF the latter
institution said they knew nothing Of such loans
William Cow who organized the international
Trlst Company and a controlling interest In
the Borough Bank, was quoted yesterday as say
ing that the International owed money to the Bor-
oush. lie refused TO go into details.
Discussing the possibility of the Borough Bank
being able TO pay its depositors in full one OF the
directors said with emphasis: Tho directors will
have to that the depositors are paid / shall IN
sist upon it," He declared that he personally had
not borrowed dollar from the institution
An Alderman who IS running for reelection I'm
of the South Brooklyn districts has $4,000 tied
up in the Borough Bank This crippled him so
seriously that he had to go TO savings bank yes
terday to get some of his nest egg. He allowed
10 take $3.50 and will now be able TO carry on his
campaign.
OF the money tied up IN the Borough Bank $50 900
is deposited by the city in the form OF certified
checks given to the city by contractors as bonds
for the fulhiment of contracts. The city will be
responsible for this money.
Confidence restored in financial circles in
Brooklyn yesterday. The uneasiness which
plainly evident on Saturday had been replaced by
assurance that the Brooklyn banking institutions
We're perfectly sound and that IT was the part OF
folly 10 withdraw money deposit in them. 1t
said TO be almost certain that the First Ma
tional Bank of Brooklyn. the Williamsburg Trust
Company and the Jenkins Trust Company would
reopen within few days. soon as the bank
| examiners had made their report In n jority
| of the institutions the receipts in the day
We're far ahead of those taken out by depostors.
There only one institution which had a line at
| the paying teer's window worthy OF notice at the
| opening OF banking hours. This the Home
Trust Company. But by the officials OF the
/ trust company had established connections with
Manhattan institutions. which gave IT